Posted: October 20th, 2022

FinancialStatementAnalysis

Description
Part1:
Chooseyourcompanyandlocateits2016annualreport(or2015if2016notavailable).
Pleaseavoidfinancialservicescompanies,i.e.banks,insurancecompanies,andreal
estatecompanies(SICcodes6000).
Part2:
1.WhatproductdoesyourcompanysellWhichindustryisthatWhoarethe
competitorsofthecompany
2.Comparethecompanysdailystockreturnswithoneofitscompetitorsandthose
ofDowJonesIndustrialAverageinthepastfiveyears(Jan2011Dec2016)and
explainthetrendsyouobserve.Youarerequiredtouseagraphtosupportyour
comments.
3.Obtainonerecentanalystreportandsummarizeit.Youshouldaddressthe
analystscurrentassessmentofyourcompany,andyoushouldsummarizethe
analystsprognosisforyourcompany.
Part3:
Findthreearticlesinthefinancialpressdescribingeventsthathaveoccurredinthe
companyandpotentiallyaffecteditsstockperformance.Eacharticleshouldbeatleast
500words,andtheyshouldbepublishedwithinthelastthreeyears.Atleastonearticle
mustcomefromTheWallStreetJournalandonearticlemustcomefromTheFinancial
Times.Printoutthearticlesandprovideasummaryofmorethan100wordsforeachof
them.
Part4:
1.WhoisthecompanysauditorWhatistheresponsibilityoftheauditorWhatis
theauditorsopinion
2.Whoisresponsibleforthepreparationofthecompanysfinancialstatements
3.Findoutandstatetheresponsibilityoftheauditcommittee.
Part5:
2
1.WhoisthecompanysCEOWhoisthecompanysCFOHowlonghavethey
beeninthecompanyWhatdotheyhavetodoregardingfinancialreportingafter
theSarbanesOxleyactof2002
2.HowmuchdidtheCEOofthecompanymakeintotalcompensationHowwas
he/shepaid:salary,bonus,stock,stockoptionsRepeatthetwoquestionsforthe
CFO.
3.Whatisthemanagementsviewonthefinancialperformanceofthecompany
(Summarizethreekeyitemsinthemanagementdiscussionandanalysissection.)
Part6:
1.Preparea5yeartrendanalysis,using2011(or2010)asthebaseyearof(1)net
sales,(2)netincome,(3)totalassets,(4)totalliabilities,(5)totalstockholders
equity,and(6)operatingcashflows.Commentonthesignificanceoftheresults.
2.Prepareaverticalanalysisfor2016(or2015)ofnetsalesbasedontheincome
statementdata:costofgoodssold,operatingexpenses,interestexpenses,income
taxexpense,otherincome/expenses,andnetincome.Commentonthe
significanceoftheresults.
3.Prepareaverticalanalysisfor2016(or2015)oftotalassetsbasedonthebalance
sheetdata:currentassets,plantassets(net),intangibleassets,otherassets,current
liabilities,longtermliabilities,otherliabilities,preferredstock,commonstock,
additionalpaidincapital,retainedearnings,treasurystock,andotherequity.
Commentonthesignificanceoftheresults.
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4.Identifyacompetitorofyourcompanyandcalculatethefollowingratiosforyour
companyanditscompetitorfor2016(or2015),andcommentonsignificant
differencesofthetwocompaniesintermsoftheratios:
a.Liquidityratios:currentratio,quickratio,receivablesturnover,and
inventoryturnover.
b.Profitabilityratios:assetturnover,profitmargin,returnonassets,and
returnoncommonstockholdersequity,earningspershare,priceearnings
ratio,andpayoutratio.
c.Solvencyratios:debttototalassetsandtimesinterestearned
5.Didthecompanyreportanydiscontinuedoperationsontheincomestatement
6.Didthecompanyreportanyextraordinaryitemsontheincomestatement
7.DidthecompanyreportanycomprehensiveincomeWhere
8.Calculatethecompanysfreecashflowfor2016(or2015).
Part7:
Evaluatethecompanysshortterm(1year)andlongterm(5year)financialperformance.
Doyourecommendthecompanytopotentialinvestors
Part8:
PresentyourAssessmentinPart8basedoninformationyouhavegatheredinParts6and7
only

CFA Research Challenge
October 21, 2016
Thomas E. Hamlin, CFA
VP Financial Planning and IR
Important Note to Investors
2
This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Dominion and
Dominion Midstream. The statements relate to, among other things, expectations, estimates and projections concerning the business and operations of Dominion and
Dominion Midstream. We have used the words “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, outlook, “predict”, “project”,
should, strategy, target, “will, potential and similar terms and phrases to identify forward-looking statements in this presentation. As outlined in our SEC
filings, factors that could cause actual results to differ include, but are not limited to: unusual weather conditions and their effect on energy sales to customers and
energy commodity prices; extreme weather events and other natural disasters; federal, state and local legislative and regulatory developments; changes to federal,
state and local environmental laws and regulations, including proposed carbon regulations; cost of environmental compliance; changes in enforcement practices of
regulators relating to environmental standards and litigation exposure for remedial activities; capital market conditions, including the availability of credit and the
ability to obtain financing on reasonable terms; fluctuations in interest rates; changes in rating agency requirements or credit ratings and their effect on availability and
cost of capital; impacts of acquisitions, divestitures, transfers of assets by Dominion to joint ventures or to Dominion Midstream, and retirements of assets based on
asset portfolio reviews; the expected timing and likelihood of completion of the proposed acquisition of Questar, including the timing, receipt and terms and conditions
of required regulatory approvals; receipt of approvals for, and timing of, closing dates for other acquisitions; the execution of Dominion Midstreams growth strategy;
changes in demand for Dominions services; additional competition in Dominions industries; changes to regulated rates collected by Dominion; changes in operating,
maintenance and construction costs; timing and receipt of regulatory approvals necessary for planned construction or expansion projects and compliance with
conditions associated with such regulatory approvals; the inability to complete planned construction projects within time frames initially anticipated; and the ability of
Dominion Midstream to negotiate, obtain necessary approvals and consummate acquisitions from Dominion and third-parties, and the impacts of such acquisitions.
Other risk factors are detailed from time to time in Dominions and Dominion Midstreams quarterly reports on Form 10-Q or most recent annual report on Form 10-K
filed with the Securities and Exchange Commission.
The information in this presentation was prepared as of September 21, 2016. Dominion and Dominion Midstream undertake no obligation to update any forwardlooking
information statement to reflect developments after the statement is made. Projections or forecasts shown in this document are based on the assumptions
listed in this document and are subject to change at any time. Dominion undertakes no obligation to update such planned expenditures to reflect plan or projectspecific
developments, including regulatory developments, or other updates until the following annual update for the plans. Actual capital expenditures may be subject
to regulatory and/or Board of Directors approval and may vary from these estimates.
This presentation shall not constitute an offer to sell or the solicitation of an offer to buy securities. Any offers, solicitations or offers to buy, or any sales of securities
will be made in accordance with the requirements of the Securities Act of 1933, as amended. This presentation has been prepared primarily for security analysts and
investors in the hope that it will serve as a convenient and useful reference document. The format of this document may change in the future as we continue to try to
meet the needs of security analysts and investors. This document is not intended for use in connection with any sale, offer to sell, or solicitation of any offer to buy
securities.
This presentation includes various estimates of EBITDA which is a non-GAAP financial measure. Please see the second quarter 2016 Dominion Midstream Press Release
for a reconciliation to GAAP. Please continue to regularly check Dominions website at www.dom.com/investors and Dominion Midstreams website at
www.dommidstream.com/investors.
NYSSA and CFA Research Challenge
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Todays Agenda
NYSSA and CFA Research Challenge 3
1) Dominions Profile and Strategic Differentiation
Depth and breadth in both electric and gas
2) Utility Regulatory Primer
3) Capital Plan and Major Project Updates
Delivering on demand-driven growth
4) Questar Merger
Enhancing and diversifying our regulated infrastructure profile
5) Dominion Midstream Partners
Executing the strategy and adding significant value to Dominion
Dominion Profile and Strategic Advantages
NYSSA and CFA Research Challenge 4
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
5
Dominion Profile
Overview
Dominion (NYSE:D), headquartered in Richmond, VA,
is one of the nations largest producers and
transporters of energy, with a portfolio of
approximately:
25,700 megawatts of electricity generation
14,400 miles of natural gas transmission,
gathering and storage pipeline
6,500 miles of electric transmission lines.
Dominion operates one of the nations largest natural
gas storage systems with 1 trillion cubic feet of
storage capacity and serves more than 6 million
utility and retail energy customers in 17 states.
NYSSA and CFA Research Challenge
$43 billion
Market Cap
$61 billion
Assets
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
0
5
10
15
20
25
30
35
40
45
50
55
60
DUK NEE D SO AEP EXC PCG PEG EIX ED XEL ES DTE FE ETR AEE AWK CNP AES EE
$Billions
Market Capitalization Electric Utilities
Source: Bloomberg as of 10/13/16
Dominion ranks third in market capitalization
relative to others in the Philadelphia Utility Index
D
Dominion Profile
NYSSA and CFA Research Challenge 6
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Electric Transmission
6,500 miles of transmission lines
Favorable regulatory environment
Electric Distribution
57,300 miles of distribution lines
2.5 million franchise retail customer
accounts in VA and NC
Utility Generation
21,500 MW of capacity
Balanced, diverse fuel mix
Favorable regulatory environment
Merchant Generation
4,200 MW of capacity, including
nuclear, gas and renewable power
Active hedging program for energy
revenue/margins
Gas Transmission
Together with Gas Distribution, operates
one of the largest natural gas storage
system in the U.S.
14,400 miles of pipeline in eleven states
Cove Point LNG import facility
Well positioned in Marcellus and Utica
Shale regions
Gas Distribution
50,000 miles of distribution pipeline and
2.3 million natural gas customer accounts
in five states
Dominion Retail
Dominion Virginia Power Dominion Energy Dominion Generation
Dominion Profile
NYSSA and CFA Research Challenge 7
Primary Operating Segments
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Dominion Profile
Power and Natural Gas Infrastructure
8
25,700 MW of electric generation
(includes 300 MW of solar generation)
6,500 miles of electric transmission
2.5 million electric customers in VA and NC
Atlantic Coast Pipeline (subject to regulatory approval)
14,400 miles of natural gas transmission, gathering and storage pipeline
1 trillion cubic feet of natural gas storage operated
Cove Point LNG Facility
2.3 million natural gas customers in 5 states
1.3 million non-regulated retail customers in 14 states (not shown)
One of the
nations largest
producers and
transporters of
energy.
NYSSA and CFA Research Challenge
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Dominion Profile
9
Operating Segment EBITDA Contribution
Dominion is committed to highly visible regulated growth
42%
58%
90%
10%
2006 EBITDA Mix Current EBITDA Mix
Regulated
Regulated
Unregulated Unregulated
Note: EBITDA mix does not include Corporate Segment or Pro Forma for Questar
NYSSA and CFA Research Challenge
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
NYSSA and CFA Research Challenge 10
Dominions Strategic Advantages
Investment Consideration 2016-2020
Industry
Leading 8%
Dividend
Growth*
Large Project
Execution
~90%
Regulated
Operations
Large Step
Change Growth
Projects
Diverse Capital
Growth Gas /
Electric
MLP
Cash Flow
Flexibility *Annual dividend rates subject
to Board approval
Utility Regulatory Primer
NYSSA and CFA Research Challenge 11
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Energy Value Chain
NYSSA and CFA Research Challenge 12
Dominions Assets Span the Energy Value Chain
Exploration
& Production
Gathering &
Processing
Transmission
& Storage
Import/
Export Distribution
Generation Transmission Distribution
Electricity Natural Gas
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Utility Regulated Returns
NYSSA and CFA Research Challenge 13
Key Drivers for Regulated Utilities
Regulatory Environment
Determines utilities ability to make new investments and earn a fair return
Returns
Revenue Requirement
Authorized Earnings
+ Cost of service (taxes, interest expense, depreciation, operations)
+ Fuel expense
Revenue Requirement
$10 B
Rate
Base
50%
Equity
Ratio
10%
ROE
$500 MM
Authorized
Earnings
x x =
Regulatory Agencies
Regulate Dominions Utility Revenues
NYSSA and CFA Research Challenge 14
Please refer to page 3 for risks and uncertainties related to projections and forward looking statements.
State & Federal regulated electric
State regulated gas
FERC regulated gas
Other
~90% Regulated
57%
13%
20%
10% State Agencies
Electric Distribution and Generation
VA State Corporation Commission
NC Public Utility Commission
Natural Gas Distribution
State Public Utility Commissions in
Ohio, WV, Utah, WY
Federal Agencies
Electric and Natural Gas Transmission
Federal Energy Regulatory Commission (FERC)
State & Federal
Electric
State
Gas
Federal
Gas
Operations Not Subject to Rate Regulation
Unregulated Businesses
NYSSA and CFA Research Challenge 15
Please refer to page 3 for risks and uncertainties related to projections and forward looking statements.
State & Federal regulated electric
State regulated gas
FERC regulated gas
Other
57%
13%
20%
10%
Merchant Electric Generation
Natural Gas Retail
Natural Gas Gathering & Processing
Energy Services
State & Federal
Electric
State
Gas
Federal
Gas
Unreg
~90% Regulated
Capital Plan and Major Project Updates
NYSSA and CFA Research Challenge 16
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
$41
$59 – $61
$5.4
$3.8
$3.1
$2.0
$2.1
2015 2016 2017 2018 2019 2020
Net
Plant
1 Excludes 2016-2020 DD&A and Maintenance Capex
Total Dominion Capex
2016 2020 Growth Plan ($billions)
17
Net
Plant1
~$18 – $20 billion
Growth Capex
NYSSA and CFA Research Challenge
Average annual spend of ~$3.6 – $4.0 billion
Additional 2019 & 2020 growth opportunities include:
Additional VA solar
Pipeline expansions
Surry / North Anna license extensions
~$1.0 $2.0
~$1.0 $2.0
Additional Growth
Opportunities
Clean power plan compliance
Questar pipeline and storage
~8% CAGR
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Dominion Virginia Power
NYSSA and CFA Research Challenge 18
Growth Project Progress
Strategic
Undergrounding
Electric
Transmission
Customer Growth
2016 Guidance
Sales growth guidance of ~1%
~33k new connects
~9% growth in data centers
Record $1B assets placed in-service in
2015
~$800M growth capital planned in 2016
Continue plan to underground ~4,000
miles of vulnerable distribution tap lines
SCC approved $122.5 million investment on
Aug. 22
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Total Capex Spend of ~$500 million per year
Additional Transmission Substation Reliability and Physical Security Upgrades replace aging
equipment to improve system reliability
Electric Transmission
Major Projects for 2016 – 2020
1
2
Mt Storm to Valley
1
5
3 Warrenton 230kV
4 Lexington to Dooms
5 Elmont to Cunningham 6
4
500 kV loop rebuild and other large traditional projects
provide substantial backlog of growth opportunities
3
Dooms to Valley
2
7
8
9
Skiffes Creek
6 Cunningham to Dooms
Brambleton to Mosby
Richmond SOC Office
7
8
9
NYSSA and CFA Research Challenge 19
Total Capex Spend of ~$700 million per year
+
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Dominion Generation
NYSSA and CFA Research Challenge 20
Growth Project Progress
Greensville
County
Solar
Brunswick
County
Construction complete Ahead of Time & Under Budget
1,358 MW CCGT $1.2 billion investment
Began commercial operations in April
Received all regulatory approvals and began construction
on June 17th
1,588 MW CCGT $1.3 billion investment
Expected in service late 2018
Customer benefit about $2 billion
Contracted solar expected this year 345 MWs*
Several additional projects in Virginia in various stages
Received SCC approval for three solar facilities (56 MW) expected in-service
late 2016
Two CPCNs filed with SCC for projects expected online in 2017
20 MW solar facility at Remington (VA and Microsoft customers)
18 MW solar facility at Oceana Naval Air Base
*Represents Dominions interests
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Major Milestones
Final air permit issued in June
Full Notice to Proceed with
construction given to Fluor
Expected in-service late 2018
21
Dominion Generation
Growth Project Update Greensville
1,588 MW plant in Greensville County, VA
3-on-1 gas fired combined cycle
Duct burners, inlet air chillers, gas only
Estimated Costs of $1.3 billion
Charlottesville
Greensville
Richmond
The Greensville 3×1 CC is
expected to be the largest and
most efficient in the U.S.
NYSSA and CFA Research Challenge
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
1761
500+
2016 2017 2018 2019 2020
22
Dominion Generation
Planned Solar in Support of VA and NC Customers*
Renewable Generation Growth 500+ MW of Solar in VA & NC
Expected Cumulative MW In-Service
*Subject to regulatory approval. 1
Includes Eastern Shore, US-2 rider and 40MW purchased power.
324+ MW 2017-2020
NYSSA and CFA Research Challenge
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Dominion Energy
NYSSA and CFA Research Challenge 23
Growth Project Progress
Reliability driven
regulated growth
Transformational
Projects
Demand driven
regulated growth
Focus on moving gas to end-use customers
Seven market access projects underway to add
more than 1 Bcf/day
~$750 million investment
Programs to replace aging infrastructure in
Ohio and West Virginia
Rates in effect to recover investment
$160 million growing to $200 million/year in Ohio
$20 million/year expected spend in WV
Cove Point Liquefaction Project on-line in 2017
Atlantic Coast Pipeline on-line in 2019
Dominion Midstream Financial Flexibility
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Dominion Energy
Engineering is
~99% complete
Procurement of
engineered
equipment is
~99% complete
1,800 construction
workers on-site
24
Growth Project Update Cove Point Liquefaction
Construction is On-time & On-budget
Project is ~71% Heat exchanger
complete
NYSSA and CFA Research Challenge
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Dominion Energy
Atlantic Coast Pipeline and DTI Supply Header
ACP
DTI Pipeline
Storage
Cove Point
Marcellus
Shale
Utica
Shale
* Dominion will construct, operate and manage the pipeline
25
Supply Header
receipt points
PRO FORMA
ACP OWNERSHIP STRUCTURE:
Dominion Resources* 48%
Duke Energy 47%
Southern Company 5%
SUPPLY HEADER OWNERSHIP:
Dominion Resources* 100%
Received FERC Notice of
Schedule Aug. 12, 2016
Signed construction
contract with Spring Ridge
Constructors

Anticipate construction to start in
3Q or 4Q 2017
Expect completion no later than 4Q
2019
NYSSA and CFA Research Challenge
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
DTI Pipeline
Storage
Cove Point
Utica
Shale
26
Dominion Energy
Farmout Opportunities
Announced and completed multiple
farmout agreements covering over
150,000 acres*
~$320 million expected pre-tax
earnings contribution 2015-2020
Farmout opportunities provide incremental earnings
streams from mineral rights leasing, royalty revenues and
takeaway & processing agreements
~$450 – $500
million of potential
total pre-tax
earnings 2015-2020
Additional farmout potential of
~160,000 acres of Utica mineral rights
~$130 – $180 million of
incremental pre-tax earnings
contribution 2016-2020 Marcellus
Shale
* As of 6/30/2016
NYSSA and CFA Research Challenge
Questar Merger
NYSSA and CFA Research Challenge 27
28
Questar Transaction Update
Announced February 1, 2016
NYSSA and CFA Research Challenge
Closed on September 16, 2016
Consistent with strategic focus on core energy infrastructure
Combination of integrated natural gas asset profiles with extensive
supply, transportation, storage and distribution experience
Enhances the regulated and predictable nature of Dominion
natural gas infrastructure operations and cash flows
Additive to Dominions significant inventory of top-quality,
low-risk, MLP-eligible assets
Pro Forma Geographic and Asset Profile
Bridging the Hub of the Mid-Atlantic With the Hub of the Rockies
29
The combination ideally positions
Dominion Resources to serve both
Eastern U.S. and Western U.S. natural gas markets
NYSSA and CFA Research Challenge
Questar gas pipeline
Dominion gas utility
Dominion gas pipeline
Questar gas utility Cove Point
Ruby
Gas Distribution Territory
Questar is Ideally Positioned to Serve Growing Regional Gas Demand
NYSSA and CFA Research Challenge 30
Clean Power Plan is source for carbon reduction targets at (www.epa.gov) CO2
rate (lbs/Net MWh) 2012 historic v. Final 2030+ goal
Represents coal generation as a percentage of total 2014 generation per the U.S.
Energy Information Administration (www.eia.gov)
Source for renewable portfolio standards/goals National Conference of State
Legislatures (www.ncsl.org)
State
Clean Power Plan
target emissions
reduction (2030)
Percent of
generation
from coal
Renewable
energy
target
Montana 47% 51% 15% by 2015
Wyoming 44% 87% None
Colorado 40% 60% 30% by 2020
Utah 37% 76% 20% by 2025
New Mexico 36% 63% 20% by 2020
Arizona 34% 38% 15% by 2025
Nevada 22% 18% 25% by 2025
Idaho 10% 1% None
Increased regional reliance on
low-emission, gas-fired
generation will be required to
meet Clean Power Plan and
renewable energy programs in
the Western U.S.
Retiring or converting coal-fired
generation facilities (~8 GW)
Questar Corporation Overview
Regulated Rockies-Based Integrated Natural Gas Company
Includes a Growing Regulated Gas Utility and Additional MLP-Eligible Assets
Questar Gas (Regulated Gas Utility) Questar Pipeline (Regulated Gas Pipeline)
Stateregulated

LDC
95%
State
regulated
86%
Not MLP-eligible
State regulated (UT, WY, ID)
$1.1 billion rate base
9.50%9.85% authorized ROE
52% equity capitalization
2.5% average annual customer growth
Infrastructure rider, decoupling,
weather normalization, gas cost pass
through, bad-debt tracker
No cast iron or bare steel pipe
MLP-eligible
FERC regulated
$0.9 billion rate base
11.42%13.00% authorized ROE
54% equity capitalization
2,700 miles of pipeline and 56 Bcf of
working storage
Long-lived, fixed fee contract profile with
creditworthy counterparties
MLP-eligible
State regulated (UT, WY)
$0.6 billion investment base
~16 – 17% average realized ROE
100% equity capitalization
Gas production sold to Questar
gas utility under regulated, costof-service
model (cost + return on
investment since 1981)
Regulated Gas Supply
2015 EBITDA
Gas pipeline
28%
Gas utility
30%
Regulated
gas supply
42%
31
Questars integrated service
territory has been
recognized as best state for
business and careers and
best state for economic
growth (two years running)
by Forbes magazine and the
U.S. Chamber of Commerce
QGC
Major Cities Served
QPC
Questar Service
Territories
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Note: Data as of year-end 2015.
NYSSA and CFA Research Challenge
Dominion Midstream Partners
NYSSA and CFA Research Challenge 32
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Rationale for Formation of a MLP
October 2014 IPO
NYSSA and CFA Research Challenge 33
Access Lower Cost
of Capital
GP Economics
Platform for
Growth
Dominion intends to use DM as the primary growth vehicle
for its midstream business
Asset drop downs could generate tax-deferred proceeds to
Dominion for reinvestment in additional growth projects
Look Through
Valuation Benefit
Vehicle to issue equity at higher EBITDA multiples
Provides attractive acquisition and financing currency for
future growth
Dominion will retain a significant interest in DM through
ownership of the LP units, GP interest, and associated IDRs
Higher valuation of publicly-traded GPs with multiples
typically >20x distributable cash flow
Highlights value of midstream segment within Dominion by
providing a clear public valuation of the assets
Ability to drop down midstream assets at attractive EBITDA
multiples
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
MLP Basics
Publicly Traded Limited Partnership
Tax benefits of partnership (single taxation) with the liquidity of
a publicly traded security
Limited to companies that generate income from qualifying
sources
Production, procession and transportation of oil, natural gas and coal
34
Difference in Focus
D DM
Primary Metric Earnings (EPS) Cash (DCF)
Financial Focus Annual EPS Quarterly DCF
Growth 5 6% Annually 22% Annualized
Operational Levers Revenue, O&M Revenue, O&M,
Maintenance Capital
NYSSA and CFA Research Challenge
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
~$2.5 billion of EBITDA in dropdown
backlog
Dominion Midstream Partners
Executing the Strategy
NYSSA and CFA Research Challenge 35
Robust
inventory
Distribution
growth
Asset profile
Stable and predictable cash flows
Long-term contracted assets
No commodity risk
Dropdown strategy supports 22%
growth rate
Second quarter distribution 5% increase over 1Q
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Dominion Midstream Partners
Distribution yield vs. peers
NYSSA and CFA Research Challenge 36
3.3% 3.5%
3.8% 3.8%
4.1% 4.3%
4.9%
5.2%
6.5%
SHLX VLP AM DM EQM PSXP CPPL CNNX MPLX
DM has maintained strong distribution yield relative to peers
*As of 10/7/2016
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Dominion Midstream Partners
EBITDA Contribution Evolution*
NYSSA and CFA Research Challenge
1. IPO EBITDA Contribution 2. Post-DCG Acquisition
Cove Point
Preferred
100%
Dominion
Carolina Gas
Transmission
49%
Cove Point
Preferred
51%
4. Pro Forma Questar Pipeline Drop
3. Post-Iroquois Acquisition
Dominion
Carolina Gas
Transmission
40%
Cove Point
Preferred
43%
Iroquois
17%
Questar
Pipeline
59%
Cove Point
Preferred 17%
Dominion
Carolina Gas
Transmission
17%
Iroquois 7%
Post Questar Pipeline drop, DM
EBITDA will have increased
~400% since IPO
*Represents 2017 asset Adjusted EBITDA contribution. Questar Pipeline dropdown subject to
DRI and DM Board approval.
37
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Dominion Midstream Partners
EBITDA Contribution Evolution*
NYSSA and CFA Research Challenge
Pro Forma Cove Point Acquisition
Questar
Pipeline
Cove Point ~75%
Dominion Carolina Gas Transmission
Iroquois
*Represents post-liquefaction asset adjusted EBITDA contribution based on guidance midpoint.
Questar Pipeline and Cove Point dropdowns subject to DRI and DM Board approval.
Post Cove Point drop, DM
EBITDA will have increased
~1,800% since IPO with
significant asset inventory
remaining
38
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
IPO 2015 2016 2017 2018 2019 2020
Dominion Midstream Partners
Updated Dropdown Strategy to Drive 22% Distribution Growth
NYSSA and CFA Research Challenge
IPO 2015 2016 2017 2018 2019 2020
Updated Dropdown Strategy*
DCG
Cove Preferred
Cove Equity
Questar Pipeline
* Green shading denotes MLP-eligible M&A execution.
Iroquois
No Drop
Needed
Cove Preferred + CGT
Blue Racer (BRM)
Cove Equity / ACP
Feb. 9, 2015 Analyst Day Dropdown Strategy
ACP / BRM
39
Questar Pipeline Company
Contemplated Dropdown to Dominion Midstream*
NYSSA and CFA Research Challenge
Key Highlights
FERC regulated Hub of the Rockies
provides critical regional
interconnectivity among end-use
customers, gas supply, and major
pipelines
56 Bcf premium storage system serving
predominantly LDC load
Long-term organic growth potential:
coal-to-gas switching, LNG exports, and
industrial growth
~$170 million of MLP-eligible EBITDA
Potential Drop Financing Paths
1. Common equity
2. Preferred equity
3. Debt
4. Equity to Dominion
*Questar Pipeline dropdown pending completion of
Questar merger and subject to DRI and DM Board
approval.
Kern River
Ruby
Northwest
REX
Colorado
Interstate
Questar
Pipeline
White River
Hub
Overthrust
Jordan Cove
LNG
= Key interconnect
GREEN RIVER
BASIN
UINTA
BASIN
PICEANCE
BASIN
Port of Kalama
40
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Dominion Midstream Partners
2017 2018 2019 2020
Drop Down Proceeds LP Distributions GP Distributions
Total Projected Cash Flow to Dominion ($ billions)
*Pre-tax
NYSSA and CFA Research Challenge
Total cash to Dominion of ~$7 – $8 billion 2017-2020*
41
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Dominion Midstream Partners
Adding Value to Dominion Shareholders
NYSSA and CFA Research Challenge
Grow the
Dividend
Reduce Equity
Needs
Strengthen
Balance Sheet
Delever DRI as a percent of overall leverage
to ~30% – 40% by 2020
Support high triple-B target rating at DRI
Grow dividends at more than 8% annually
beginning in 2018*
Optimize cash flows to fund growth projects
and / or buyback Dominion common shares
Uses of DM Cash Contributions 2018 & Beyond
*Annual dividend rates subject to Board approval
42
Dominions Guidance
NYSSA and CFA Research Challenge 43
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Financial Management
Target Credit Ratings:
Dominion Resources: High Triple-B
Dominion Gas Holdings: Single-A
VEPCO: Single-A
Committed to A-2/P-2/F2 ratings for the Commercial Paper Program at DRI
Balance Sheet Objectives
NYSSA and CFA Research Challenge 44
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
2016 Guidance
45
2016 Operating Earnings Guidance Summary
(millions, except per share amounts)
2015 Range of 2016
Description Actual Low High
Dominion Virginia Power EBITDA $1,525 $1,595 $1,650
Depreciation, Depletion and Amortization 498 540 545
Dominion Virginia Power EBIT 1,027 1,055 1,105
Dominion Energy EBITDA $1,416 $1,390 $1,480
Depreciation, Depletion and Amortization 262 270 270
Dominion Energy EBIT 1,154 1,120 1,210
Dominion Generation EBITDA $2,438 $2,525 $2,690
Depreciation, Depletion and Amortization 591 665 670
Dominion Generation EBIT 1,847 1,860 2,020
Corporate and Other & Eliminations Adjusted EBIT (82) (40) (30)
Total Adjusted EBIT 3,946 3,995 4,305
Consolidated Interest 898 950 930
Consolidated Income Taxes 984 795 810
Noncontrolling Interests 24 100 90
Operating Earnings $2,040 $2,150 $2,475
Average Diluted Shares Outstanding 593.7 610 608
Operating EPS Range $3.44 $3.53 $4.07
$3.60 $4.00
Note: Figures may not add due to rounding
2016 Operating EPS Guidance Range
Operating EPS Guidance Range $3.60 – $4.00
Notes: Amounts are shown
in millions, except per
share amounts
Figures may not add due to
rounding
NYSSA and CFA Research Challenge
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Analyst Consensus
NYSSA and CFA Research Challenge 46
Significant Growth in 2018
Dominions Performance
NYSSA and CFA Research Challenge 47
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
NYSSA and CFA Research Challenge 48
Forward P/E Ratios
Then and Now
0
5
10
15
20
2007 2008 2009
Oct 2006
2010 2011 2012
Mar 2010
Dominion Peer Average
+2%
Avg. Premium to Peers
P/E Multiple
-12%
Avg. Discount to Peers
2016 2017 2018
Sept 15, 2016
+16%
Avg. Premium to Peers
NYSSA and CFA Research Challenge 49
Market Update
2017 P/E Multiple UTY Index (10/7/2016)
10.4
12.2 12.6
14.2 14.3
16.1 16.3 16.3 16.6 16.7 16.9 17.1 17.3 17.4 17.5 17.5
18.0 18.3 18.7
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
AES EXC FE PEG ETR PCG AEP DUK SO ES EIX XEL AEE EE DTE ED NEE CNP D
Dominion has maintained the highest P/E multiple for several years
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
Financial Community Feedback
Investors must wait for growth to materialize in 4Q16 and wait for 2017 guidance
with little visibility on the drivers prior to year-end. We continue to encourage
investors to look through Ds near-term challenges to 2018 when we expect the
earnings and cash flow outlook to improve dramatically
Dan Ford (Barclays)
Dominions core assets, including the utility, pipelines, and key growth assets like
Cove Point and Atlantic Coast Pipeline, are some of the best positioned in the utility
and midstream space. However this has been clouded by the pressure of Millstone,
and the impact of solar ITCs over the coming years and financing overhang for
Questar.
Steve Fleishman (Wolfe Research)
We remain on the sidelines ahead of the more the detailed update expected in 1H17;
although we see uncertainty in 2017E, management remains committed to the highend
of its 7-9% EPS growth rate YoY in 2018E. As we highlighted following our July
meetings, we think investors should be focused on 2018E rather than 2017E as both
earnings and importantly FCF steps-up more materially.
Julien Dumoulin-Smith (UBS)
Sell Side Analyst Research Reports
NYSSA and CFA Research Challenge 50
Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.
NYSSA and CFA Research Challenge 51
Dominions Strategic Advantages
Investment Consideration 2016-2020
Industry
Leading 8%
Dividend
Growth*
Large Project
Execution
~90%
Regulated
Operations
Large Step
Change Growth
Projects
Diverse Capital
Growth Gas /
Electric
MLP
Cash Flow
Flexibility *Annual dividend rates subject
to Board approval

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