Company Reports

We are maintaining our $46 Dominion Energy fair value estimate after management provided numerous financial updates as part of its investor day meeting. Dominion Energy initiated 2025 earnings guidance of $3.30 per share, slightly above our $3.20 estimate. Dominion also initiated long-term earnings growth guidance of 5% to 7%, also in line with our expectations, leaving our fair value unchanged.

We are maintaining our $46 per share fair value estimate after Dominion Energy reported full-year 2023 operating earnings of $1.99 per share, down from $3.06 in 2022. Our narrow moat and Medium Uncertainty ratings are unchanged.

With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.

Dominion Energy is a predominantly regulated utility. Dominion has accelerated its capital expenditure growth program.

We are lowering our Dominion Energy fair value estimate to $46 per share from $56 after the company reported third-quarter operating earnings of $0.77 per share, down from $0.99 in same year-ago period. Our narrow moat and medium uncertainty rating are unchanged.

We are reaffirming our fair value estimates and economic moat ratings for all U.S. utilities after the sector fell nearly 5% on Monday. We think the sector's 11% drop since last week offers a rare opportunity for investors to buy high-quality utilities at very attractive prices.

Dominion Energy is a predominantly regulated utility. Dominion has accelerated its capital expenditure growth program.

We keep our $56 per share fair value estimate for Dominion Energy after it agreed to sell three natural gas distribution utilities to Enbridge. Dominion will sell East Ohio Gas Company, Public Service Company of North Carolina, and Questar Gas natural gas distribution utilities for $14 billion, including $4.6 billion in debt. Aftertax proceeds of $8.7 billion will be used to repay parent debt.

Dominion Energy is a predominantly regulated utility. Dominion has accelerated its capital expenditure growth program.

We are maintaining our $59 per share fair value estimate for Dominion Energy after the company reported second-quarter operating earnings of $0.53 per share, down from $0.77 in the same year-ago period. Our narrow moat and Medium Uncertainty Rating are unchanged.

We are maintaining our $59 fair value estimate for Dominion Energy after the company announced that it has agreed to sell its 50% interest in the Cove Point liquefied natural gas facility to Berkshire Hathaway Energy, which currently runs and owns the other half of the facility. Our narrow moat and medium uncertainty ratings are unchanged.

Dominion Energy trades at one of the biggest discounts to our fair value estimate among all U.S. utilities we cover, but we see few near-term catalysts that will close that discount. Dominion trades at a 15% discount to our fair value estimate and a 26% discount to the utilities sector average 17.1 price/earnings as of May 31. We currently view the utilities sector as 5% undervalued.

We are maintaining our $59 per share fair value estimate for Dominion Energy after the company reported first-quarter operating earnings of $0.99 per share, down from $1.18 from same year-ago period. Our narrow moat and medium uncertainty rating remains unchanged.

Dominion Energy is a predominantly regulated utility. Dominion has accelerated its capital expenditure growth program. Over the next five years, we expect the utility to spend $36 billion in regulated investments, with most focused on decarbonization.

We are lowering our Dominion Energy fair value estimate to $59 per share from $70 after changing our economic moat rating to narrow from wide. Dominion's stock trades in line with our new fair value estimate.

Dominion Energy is a predominantly regulated utility. Dominion has accelerated its capital expenditure growth program. Over the next five years, management plans to invest $37 billion of growth capital, with nearly 90% focused on decarbonization. We exclude some of that growth capital from our forecast as key stakeholders have raised concerns about customer affordability.

We are lowering our Dominion Energy fair value estimate to $70 per share from $72 after management reported full-year 2022 operating earnings of $4.11 per share, up from $3.86 in 2021. Our fair value reduction is the result of the $1.5 billion impairment charge on Dominion's unregulated solar generation portfolio.

Dominion Energy is now a predominantly regulated utility, which we think is in the best interest of investors.

We are lowering our Dominion Energy fair value estimate to $72 per share from $78 after analyzing several proposed legislative bills in Virginia, mainly the Virginia Electric Utility Regulation Act, which is supported by Dominion.

Dominion Energy is now a predominantly regulated utility, which we think is in the best interest of investors.