Dominion Continues Its Wide-Moat Transformation

 Dominion Resources’ (D) wide economic moat is as strong as ever, and the company will soon be the only wide-moat utility we cover, once Fortis completes its acquisition of wide-moat ITC Holdings later this year. Dominion’s wide-moat growth projects--notably the Atlantic Coast Pipeline and Cove Point LNG facility--are on track and on budget. Virginia regulation remains as constructive as ever, with demand growth and investment opportunities topping its peers. We expect wide-moat businesses to generate 50% of Dominion’s operating earnings by 2020 and to continue growing as a share of consolidated earnings well beyond 2020.