1Q07
Earnings
Release Kit
May 2, 2007
Dominion Resources, Inc.
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Table of Contents
IMPORTANT NOTES TO INVESTORS .................................................................................. 3
EARNINGS RELEASE AND ACCOMPANYING SCHEDULES.......................................... 4
EARNINGS RELEASE ..................................................................................................................... 4
SCHEDULE 1 - SEGMENT OPERATING EARNINGS .......................................................................... 7
SCHEDULE 2 - RECONCILIATION OF 2007 OPERATING EARNINGS TO GAAP................................ 8
SCHEDULE 3 - RECONCILIATION OF 2006 OPERATING EARNINGS TO GAAP................................ 9
SCHEDULE 4 - COMPARISON OF SELECTED 1Q07 EARNINGS DRIVERS TO 1Q06 ........................ 10
SCHEDULE 5 - RECONCILIATION OF 2007 EARNINGS TO 2006.................................................... 11
FINANCIALS1 ............................................................................................................................ 12
CONSOLIDATED FINANCIAL STATEMENTS (GAAP) ................................................................... 12
SEGMENT OPERATING RESULTS AND STATISTICS ...................................................................... 16
SCHEDULE OF LONG-TERM DEBT ............................................................................................... 25
SCHEDULE OF DEBT MATURITY ................................................................................................. 26
SCHEDULE OF CHANGE IN CAPITALIZATION .............................................................................. 27
HEDGING ................................................................................................................................... 28
NATURAL GAS AND OIL HEDGE POSITION ................................................................................. 28
ELECTRIC GENERATION AND COAL HEDGE POSITION ................................................................ 29
REGIONAL CAPACITY HEDGE AND PRICE POSITION ................................................................... 30
GAAP RECONCILIATION2 ..................................................................................................... 31
RATIO OF DEBT TO TOTAL CAPITALIZATION.............................................................................. 31
FUNDS FROM OPERATIONS (FFO) INTEREST COVERAGE ........................................................... 32
FUNDS FROM OPERATIONS (FFO) DEBT COVERAGE ................................................................. 33
1) The notes contained in the most recent Forms 10-Q and 10-K are an integral part of the Consolidated Financial
Statements.
2) Reconciliation of Operating Earnings to GAAP can be found in Schedules 2 & 3 of this Earnings Kit.
May 2, 2007
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Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
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Important Notes to Investors
This kit contains certain forward-looking statements that are subject to various risks and
uncertainties. Factors that could cause actual results to differ materially from management's
projections, forecasts, estimates and expectations may include factors that are beyond the
company's ability to control or estimate precisely, such as fluctuations in energy-related
commodity prices, including changes in the cost of fuel for our regulated electric business, the
timing of the closing dates of acquisitions or divestitures (including our divestiture of The
Peoples Natural Gas Company and Hope Gas, Inc. and any divestiture of our natural gas and oil
assets), the amount of net proceeds received from any divestitures, additional risk exposure
associated with the termination of business interruption and offshore property damage related to
our exploration and production operations and our inability to replace such insurance on
commercially reasonable terms, estimates of future market conditions, estimates of proved and
unproved reserves, the company’s ability to meet its natural gas and oil production forecasts, the
behavior of other market participants, and the effects of hurricanes on our operations, gas and oil
production and realized prices. Other factors include, but are not limited to, weather conditions,
governmental regulations, economic conditions in the company's service area, risks of operating
businesses in regulated industries that are subject to changing regulatory structures, changes to
regulated gas and electric rates collected by Dominion, risks associated with the realignment of
our operating assets (including the potential dilutive effect on earnings in the near term, costs
associated with any sale of our exploration and production business and the redeployment of
proceeds from any sales), changes to rating agency requirements and ratings, changing financial
accounting standards, trading counter-party credit risks, risks related to energy trading and
marketing, and other uncertainties. Other risk factors are detailed from time to time in
Dominion’s most recent quarterly report on Form 10-Q or annual report on Form 10-K filed with
the Securities & Exchange Commission.
The consolidated financial data and statistics in this 1Q07 Earnings Release Kit and its individual
components reflect the financial position and operating results of Dominion and its primary
operating segments through March 31, 2007. Independent auditors have not audited all of the
financial and operating statements. 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 any forward-looking information statement to reflect
developments after the statement is made.
This 1Q07 Earnings Release Kit 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
release kit may change in the future as we continue to try to meet the needs of security analysts
and investors. This release kit is not intended for use in connection with any sale, offer to sell, or
solicitation of any offer to buy securities.
May 2, 2007
3
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
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Earnings Release and Accompanying Schedules
Earnings Release
FOR IMMEDIATE RELEASE
May 2, 2007
Company:
Dominion
Contacts:
Media: Mark Lazenby (804) 819-2042, [email protected]
Analysts: Greg Snyder (804) 819-2383, [email protected]
Fiona McCarthy (804) 819-2447, [email protected]
DOMINION ANNOUNCES FIRST QUARTER 2007 EARNINGS
•
Conference call scheduled for 10 a.m. EDT today
RICHMOND, Va. – Dominion (NYSE: D) announced today unaudited net income
determined in accordance with Generally Accepted Accounting Principles (GAAP) for
the three months ended March 31, 2007 of $453 million ($1.29 per share) compared to
net income of $534 million ($1.53 per share) for the same period last year.
Operating earnings for the three months ended March 31, 2007 amounted to $525
million ($1.50 per share) compared to operating earnings of $573 million ($1.64 per
share) for the three months ended March 31, 2006. Operating earnings are defined as
GAAP earnings adjusted for certain items.
Dominion uses operating earnings as the primary performance measurement of its
earnings outlook and results for public communications with analysts and investors.
Dominion also uses operating earnings internally for budgeting, reporting to the board of
directors and for the company’s annual incentive plan. Dominion management believes
operating earnings provide a more meaningful representation of the company’s
fundamental earnings power.
Business segment results and detailed descriptions of items included in 2007 and 2006
GAAP earnings but excluded from operating earnings can be found on Schedules 1, 2
and 3 of this release.
Thomas F. Farrell II, chairman, president and chief executive officer, said:
“Our first-quarter results again reflect the strength of the core businesses that will
remain after we successfully reposition the company. Adjusting for the impact of
weather and unrecovered Virginia fuel expenses, first-quarter 2007 total operating
May 2, 2007
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Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
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earnings per share for our delivery, energy and generation segments were 9 percent
higher than in the first quarter of 2006.
“As indicated by our announcement that we have reached an agreement to sell our
offshore gas and oil operations, we remain on target to carry out our strategic initiatives.
Robust economic growth in Virginia, combined with planned expansions in merchant
generation, natural gas pipelines and storage, will position us to grow long-term
operating earnings per share 4 to 6 percent on an average annual basis.”
First-quarter 2007 operating earnings compared to 2006
First-quarter 2007 operating earnings of $1.50 per share compare to operating earnings
of $1.64 per share in the first quarter of 2006. The decrease is primarily attributable to
the absence of a mark-to-market benefit from hedges de-designated following
Hurricanes Katrina and Rita, higher unrecovered Virginia fuel expenses, lower
contributions from the company’s producer services business, and higher DD&A
expenses in the company’s E&P business. These negatives were partially offset by a
return to comparatively normal weather in the electric and gas utility service areas and
higher contributions from the company’s retail energy marketing, gas transmission and
merchant generation businesses.
Complete details of first-quarter 2007 operating earnings compared to 2006 can be
found on Schedules 4 and 5 of this release.
Conference call today
Dominion will host its first-quarter earnings conference call at 10 a.m. EDT on
Wednesday, May 2, at which time Dominion management will discuss 2007 financial
results and provide an update on the company’s strategic initiatives as well as other
matters of interest to the financial community.
Domestic callers should dial (866) 710-0179. The passcode for the conference call is
“Dominion.” International callers should dial (334) 323-9871. Participants should dial in
10 to 15 minutes prior to the scheduled start time. Members of the media also are
invited to listen.
A live Web cast of the conference call will be available on the company’s investor
information page at http://www.dom.com/investors/ir.jsp.
A replay of the conference call will be available beginning about 1 p.m. EDT May 2 and
lasting until 11 p.m. EDT May 9. Domestic callers may access the recording by dialing
(877) 919-4059. International callers should dial (334) 323-7226. The PIN for the
replay is 63604226. Additionally, a replay of the Web cast will be available on the
company’s investor information page by the end of the day May 2.
May 2, 2007
5
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
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Dominion is one of the nation's largest producers of energy, with a portfolio of about
26,300 megawatts of generation, about 6.5 trillion cubic feet equivalent of proved
natural gas reserves and 7,800 miles of natural gas transmission pipeline. Dominion
also owns and operates the nation's largest underground natural gas storage system
with about 960 billion cubic feet of storage capacity and serves retail energy customers
in eleven states. For more information about Dominion, visit the company's Web site at
http://www.dom.com/.
This release contains certain forward-looking statements, including our projected future
long-term operating earnings growth rate, that are subject to various risks and
uncertainties. Factors that could cause actual results to differ materially from
management's projections, forecasts, estimates and expectations may include factors
that are beyond the company's ability to control or estimate precisely, such as
fluctuations in energy-related commodity prices, including changes in the cost of fuel for
our regulated electric business, the timing of the closing dates of acquisitions or
divestitures (including our divestiture of The Peoples Natural Gas Company and Hope
Gas, Inc. and any divestiture of our natural gas and oil assets), the amount of net
proceeds received from any divestitures, additional risk exposure associated with the
termination of business interruption and offshore property damage related to our
exploration and production operations and our inability to replace such insurance on
commercially reasonable terms, estimates of future market conditions, estimates of
proved and unproved reserves, the company’s ability to meet its natural gas and oil
production forecasts, the behavior of other market participants, and the effects of
hurricanes on our operations, gas and oil production and realized prices. Other factors
include, but are not limited to, weather conditions, governmental regulations, economic
conditions in the company's service area, risks of operating businesses in regulated
industries that are subject to changing regulatory structures, changes to regulated gas
and electric rates collected by Dominion, risks associated with the realignment of our
operating assets (including the potential dilutive effect on earnings in the near term,
costs associated with any sale of our exploration and production business and the
redeployment of proceeds from any sales), changes to rating agency requirements and
ratings, changing financial accounting standards, trading counter-party credit risks, risks
related to energy trading and marketing, and other uncertainties. Other risk factors are
detailed from time to time in Dominion’s most recent quarterly report on Form 10-Q or
annual report on Form 10-K filed with the Securities & Exchange Commission.
###
May 2, 2007
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Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
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Schedule 1 - Segment Operating Earnings
Unaudited
(millions, except earnings per share)
Three months ended March 31,
2006
2007
Operating Revenue (GAAP Based)
$
4,712
$
4,951
$
$
199
$
156
$
Change
(239)
Earnings:
Dominion Delivery
Dominion Energy
Dominion Generation
(1)
Dominion Exploration & Production
107
139
138
1
138
230
(92)
$
525
$
453
Items excluded from operating earnings (1) (2)
GAAP EARNINGS
$
573
$
534
(72)
5
$
(48)
$
(81)
(39)
350.8
Common Shares Outstanding (average, diluted)
(5)
(58)
(53)
Corporate
OPERATING EARNINGS
43
102
(33)
348.1
Earnings Per Share (EPS):
Dominion Delivery
$
Dominion Energy
Dominion Generation
(1)
Dominion Exploration & Production
Corporate
OPERATING EARNINGS
Items excluded from operating earnings
GAAP EARNINGS
(1)
$
(1) (2)
0.57
$
$
0.12
0.29
0.31
0.40
0.39
0.01
0.39
0.66
(0.27)
(0.15)
(0.17)
0.02
1.50
$
(0.21)
$
0.45
1.29
1.64
(0.02)
$
(0.14)
$
(0.24)
(0.11)
$
1.53
(0.10)
2006 amounts have been recast to exclude from operating earnings the loss from discontinued operations
of three merchant generation facilities (Troy, Pleasants, Armstrong) sold in March 2007.
(2)
Refer to schedules 2 and 3 for details related to items excluded from operating earnings,
or find "GAAP Reconciliation" on Dominion's Web site at www.dom.com/investors/
May 2, 2007
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Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
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Schedule 2 - Reconciliation of 2007 Operating Earnings to GAAP
2007 Earnings (Three months ended March 31, 2007)
The net effects of the following items, all shown on an after-tax basis, are included in 2007 reported
earnings, but are excluded from operating earnings:
•
•
•
•
•
•
$28 million in losses from discontinued operations of three merchant generation facilities (Troy,
Pleasants, Armstrong) reflecting the loss on disposal of these facilities in March 2007 ($25 million)
and a loss from normal operations ($3 million);
$16 million in charges related to litigation reserves;
$9 million in charges related to the potential sale of non-Appalachian E&P assets;
$5 million in charges related to the pending sale of Dominion Peoples and Dominion Hope natural
gas local distribution companies;
$4 million of impairment charges related to securities held in nuclear decommissioning trust funds;
and
$10 million in other charges, including a contract termination settlement.
(millions, except per share amounts)
1Q07
Operating earnings
Items excluded from operating earnings (after-tax):
Discontinued operations - merchant generation facilities
Loss on disposal of assets
Loss from normal operations
Litigation reserves
Charges related to potential sale of non-Appalachian E&P assets
Net charges related to the pending sale of Dominion Peoples
and Dominion Hope natural gas distribution companies
Impairment of securities - nuclear decommissioning trusts
Other charges, including a contract termination settlement
Total items excluded from operating earnings
Reported net income
$525
2Q07
3Q07
4Q07 YTD 2007
$525
(25)
(3)
(16)
(9)
(25)
(3)
(16)
(9)
(5)
(4)
(10)
(72)
$453
(5)
(4)
(10)
(72)
$453
Common shares outstanding (average, diluted)
350.8
350.8
Operating earnings per share
Items excluded from operating earnings (after-tax)
Reported earnings per share
$1.50
(0.21)
$1.29
$1.50
(0.21)
$1.29
May 2, 2007
8
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
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Schedule 3 - Reconciliation of 2006 Operating Earnings to GAAP
2006 Earnings (Twelve months ended December 31, 2006)
The net effects of the following items, all shown on an after-tax basis, are included in 2006 reported
earnings, but are excluded from operating earnings:
•
•
•
•
•
•
•
•
•
$183 million in net charges reflecting the impairment of assets ($164 million) and loss from normal
operations ($19 million) of three merchant generation facilities (Troy, Pleasants, Armstrong) for which
an agreement to sell was executed in December 2006;
$91 million in charges related to the impairment of certain Dominion Capital investments;
$73 million in net charges related to the pending sale of Dominion Peoples and Dominion Hope
natural gas local distribution companies;
$37 million in charges due to the SFAS133 impact related to certain interest rate swaps;
$34 million of impairment charges, including $17 million resulting from the cancellation of a pipeline
project and $15 million resulting from a change in method of assessing other-than-temporary declines
in the fair value of certain securities;
$11 million of incremental charges related to Hurricanes Katrina and Rita;
$6 million in charges related to the write-off of a deferred merchant generation gas transportation
contract;
$6 million gain on the sale of an investment in a natural gas storage development project; and
$5 million in other charges including charges related to the divesture of oil and gas properties.
(millions, except per share amounts)
1Q06
2Q06
3Q06
4Q06 YTD 2006
Operating earnings
Items excluded from operating earnings (after-tax):
Discontinued operations - merchant generation facilities
Impairment of assets
Loss from normal operations
Dominion Capital related charges
Net charges related to the pending sale of Dominion Peoples
and Dominion Hope natural gas distribution companies
SFAS133 impact related to certain interest rate swaps
Impairment of assets
Hurricanes Katrina and Rita
Merchant generation contract write-off
Gain on sale of natural gas storage development project
Other
Total items excluded from operating earnings
Reported net income
$573
$300
$666
$275
$1,814
(5)
(6)
(85)
(4)
(164)
(4)
(6)
(164)
(19)
(91)
(21)
(7)
(37)
(7)
(38)
(3)
(6)
(1)
(28)
(7)
(6)
(39)
$534
(1)
(139)
$161
5
1
(12)
$654
1
(5)
(244)
$31
(73)
(37)
(34)
(11)
(6)
6
(5)
(434)
$1,380
Common shares outstanding (average, diluted)
348.1
350.5
353.9
353.8
351.6
Operating earnings per share
Items excluded from operating earnings (after-tax)
Reported earnings per share
$1.64
(0.11)
$1.53
$0.86
(0.40)
$0.46
$1.88
(0.03)
$1.85
$0.78
(0.69)
$0.09
$5.16
(1.23)
$3.93
*
Figures may not add due to rounding.
Full-year EPS may not equal sum of quarters due to share count differences.
May 2, 2007
9
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
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Schedule 4 - Comparison of Selected 1Q07 Earnings Drivers to 1Q06
1Q07
Actual
1Q06
Actual
$453
$525
350.8
$1.29
$1.50
$534
$573
348.1
$1.53
$1.64
$3
$15
--($125)
($33)
$17
$75
($77)
Natural Gas Production (Bcf)
2
Liquids Production (mmbbls)
2
Equivalent Natural Gas Production (Bcfe)
78.5
5.6
112.1
74.3
6.1
111.2
Avg. NYMEX Spot Price - Nat Gas ($/mmbtu)
Avg. NYMEX Spot Price - Oil ($/bbl)
$7.17
$58.27
$8.98
$62.48
$6.57
$46.69
$6.95
$7.99
$53.35
$8.31
$5.80
$35.47
$5.83
$4.99
$38.82
$5.51
$1.42
$1.92
$1.43
$1.66
9.0
$47
$29
14.6
$79
$49
Average PJM West Price (7x24) ($/MWh)
Average Mass Hub/New Eng. Price (7x24) ($/MWh)
$55.81
$70.99
$54.70
$68.48
Quarterly Common Dividend Rate ($/share)
$0.71
$0.69
Description
GAAP earnings (mm)
Operating earnings (mm)
Average common shares outstanding, diluted (mm)
GAAP earnings per share
Operating earnings per share
Certain Items That Impacted Operating Earnings During Period:
1
Weather compared to normal - After-tax (mm)
FAS 133 - (Hedge Ineffectiveness/Other) - After-tax (mm)
FAS 133 - (Katrina/Rita Dedesignated Hedges) - After-tax (mm)
Virginia Fuel Underrecovery - After-tax (mm)
2
3
Average Realized Price without Hedging Results - Natural Gas ($/mcf)
3
Average Realized Price without Hedging Results - Liquids ($/bbl)
3
Average Realized Price without Hedging Results - Gas Equivalent ($/mcfe)
3
Average Realized Price with Hedging Results - Natural Gas ($/mcf)
3
Average Realized Price with Hedging Results - Liquids ($/bbl)
3
Average Realized Price with Hedging Results - Gas Equivalent ($/mcfe)
3,4
E&P Lifting Costs ($/mcfe)
3
E&P DD&A Rate ($/mcfe)
VPP Volumes Delivered (Bcf)
VPP Net Revenue - Pre-tax ($mm)
VPP Net Revenue - After-tax ($mm)
1)
2)
3)
4)
After-tax impact on utility base revenue.
Includes Dominion Transmission, excludes VPPs.
Dominion E&P Only.
Includes transportation expense and BI insurance policy costs, net of VPP exchange and PHA fees received.
May 2, 2007
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Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
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Schedule 5 - Reconciliation of 2007 Earnings to 2006
Preliminary, unaudited
Three Months Ended
March 31,
2007 vs. 2006
(millions, except EPS)
Increase / (Decrease)
Amount
EPS
Reconciling Items
Dominion Delivery
Regulated electric sales:
Weather
Customer growth
Regulated gas sales - weather
Interest expense
Retail energy marketing operations
Other
Change in contribution to operating earnings
$7
2
12
5
10
7
$43
$0.02
0.01
0.03
0.01
0.03
0.02
$0.12
Dominion Energy
Producer services
Gas Transmission margins
Electric Transmission operations
Other
Change in contribution to operating earnings
($22)
18
4
(5)
($5)
($0.07)
0.05
0.01
(0.01)
($0.02)
Dominion Generation
Regulated electric sales:
Weather
Customer growth
Other
Unrecovered Virginia fuel expenses
Merchant generation margin
Ancillary service revenue
Interest expense
Outage costs
Other
Change in contribution to operating earnings
$15
5
3
(48)
13
9
4
(6)
6
$1
$0.04
0.01
0.01
(0.13)
0.04
0.03
0.01
(0.02)
0.02
$0.01
Dominion E&P
Gas and Oil - production
Gas and Oil - prices
Operations and maintenance:
FAS133 - M2M/Hedge Ineffectiveness
Other O&M
DD&A
Interest Expense
Other
Change in contribution to operating earnings
(16)
20
(0.05)
0.06
(77)
(1)
(20)
(10)
12
($92)
(0.22)
0.00
(0.06)
(0.03)
0.03
($0.27)
Corporate & Other
Change in contribution to operating earnings
$5
$0.02
($48)
($0.14)
($33)
($0.10)
($81)
($0.24)
Change in consolidated operating earnings
Change in items excluded from operating earnings
Change in net income (GAAP earnings)
(1)
(1)
Refer to schedules 2 and 3 for details of items excluded from operating earnings,
or find "GAAP Reconciliation" on Dominion's Web site at www.dom.com/investors.
May 2, 2007
11
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
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Financials1
Consolidated Financial Statements (GAAP)
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
March 31,
2006
2007
(millions, except per share amounts)
Operating Revenue
Operating Expenses
Electric fuel and energy purchases
Purchased electric capacity
Purchased gas
Other energy-related commodity purchases
Other operations and maintenance
Depreciation, depletion and amortization
Other taxes
Total operating expenses
Income from operations
Other income
Interest and related charges:
Interest expense
Interest expense – junior subordinated notes payable(1)
Subsidiary preferred dividends
Total interest and related charges
Income before income tax expense and minority interest
Income tax expense
Minority interest
Income from continuing operations
Loss from discontinued operations(2)
Net Income
Earnings Per Common Share - Basic
Income from continuing operations
Loss from discontinued operations
Net income
Earnings Per Common Share - Diluted
Income from continuing operations
Loss from discontinued operations
Net income
Dividends paid per common share
$4,712
$4,951
918
119
1,148
56
857
422
184
3,704
1,008
50
765
123
1,378
400
767
377
180
3,990
961
42
220
35
4
259
799
313
5
481
(28)
$ 453
226
27
4
257
746
207
-539
(5)
$ 534
$1.38
(0.08)
$1.30
$1.56
(0.02)
$1.54
$1.37
(0.08)
$1.29
$0.71
$1.55
(0.02)
$1.53
$0.69
(1) Includes $22 million and $27 million payable to affiliated trusts for the three months ended March 31, 2007 and 2006,
respectively.
(2) Net of income tax benefit of $3 million for the three months ended March 31, 2007 and 2006.
The notes contained in the most recent Forms 10-Q and 10-K are an integral part of the Consolidated Financial
Statements.
May 2, 2007
12
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31,
2007
(millions)
ASSETS
Current Assets
Cash and cash equivalents
Customer receivables (less allowance for doubtful accounts of $28 and $26)
Other receivables (less allowance for doubtful accounts of $11 and $13)
Inventories
Derivative assets
Assets held for sale
Other
Total current assets
Investments
Nuclear decommissioning trust funds
Other
Total investments
Property, Plant and Equipment
Property, plant and equipment
Accumulated depreciation, depletion and amortization
Total property, plant and equipment, net
Deferred Charges and Other Assets
Goodwill
Pension and other postretirement benefit assets
Other
Total deferred charges and other assets
Total assets
$
103
2,569
296
749
1,221
1,122
1,204
7,264
December 31,
2006(1)
$
138
2,395
358
1,101
1,593
1,391
1,122
8,098
2,817
1,036
3,853
2,791
1,034
3,825
44,404
(14,570)
29,834
43,575
(14,193)
29,382
4,274
1,266
2,084
7,624
$48,575
4,298
1,246
2,420
7,964
$49,269
(1) The Consolidated Balance Sheet at December 31, 2006 has been derived from the audited Consolidated Financial Statements
at that date.
May 2, 2007
13
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31,
2007
(millions)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Securities due within one year
Short-term debt
Accounts payable
Derivative liabilities
Liabilities held for sale
Other
Total current liabilities
Long-Term Debt
Long-term debt
Junior subordinated notes payable:
Affiliates
Other
Total long-term debt
Deferred Credits and Other Liabilities
Deferred income taxes and investment tax credits
Asset retirement obligations
Other
Total deferred credits and other liabilities
Total liabilities
Commitments and Contingencies
Minority Interest
Subsidiary Preferred Stock Not Subject to Mandatory Redemption
Common Shareholders' Equity
Common stock – no par(2)
Other paid-in capital
Retained earnings
Accumulated other comprehensive loss
Total common shareholders’ equity
Total liabilities and shareholders’ equity
December 31,
2006(1)
$ 2,254
2,750
2,003
2,192
462
1,299
10,960
$ 2,478
2,332
2,142
2,276
497
1,504
11,229
12,371
12,842
1,152
798
14,321
1,151
798
14,791
5,944
1,943
2,160
10,047
35,328
5,858
1,930
2,268
10,056
36,076
27
257
23
257
11,344
141
2,107
(629)
12,963
$48,575
11,250
128
1,960
(425)
12,913
$49,269
(1) The Consolidated Balance Sheet at December 31, 2006 has been derived from the audited Consolidated Financial Statements at
that date.
(2) 500 million shares authorized; 350 million shares outstanding at March 31, 2007 and 349 million shares outstanding at
December 31, 2006.
May 2, 2007
14
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31,
(millions)
Operating Activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized and unrealized derivative (gains)/losses
Depreciation, depletion and amortization
Deferred income taxes and investment tax credits, net
Charges related to pending sale of gas distribution subsidiaries
Other adjustments to net income
Changes in:
Accounts receivable
Inventories
Deferred fuel and purchased gas costs, net
Accounts payable, trade
Accrued interest, payroll and taxes
Deferred revenues
Margin deposit assets and liabilities
Other operating assets and liabilities
Net cash provided by operating activities
Investing Activities
Plant construction and other property additions
Additions to gas and oil properties, including acquisitions
Proceeds from sale of merchant generation peaking facilities
Acquisition of businesses, net of cash acquired
Proceeds from sale of securities and loan receivable collections and payoffs
Purchases of securities and loan receivable originations
Other
Net cash used in investing activities
Financing Activities
Issuance (repayment) of short-term debt, net
Issuance of long-term debt
Repayment of long-term debt
Issuance of common stock
Common dividend payments
Other
Net cash used in financing activities
Decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period(1)
Cash and cash equivalents at end of period (2)
Noncash Investing and Financing Activities
Accrued capital expenditures
Exchange of debt securities
Issuance of long-term debt and establishment of trust
2007
2006
$ 453
$ 534
47
458
205
-7
(241)
414
187
172
7
(169)
391
2
(131)
(142)
(47)
(68)
204
1,210
412
262
125
(659)
(22)
(79)
(206)
78
984
(471)
(576)
257
-287
(304)
11
(796)
(439)
(484)
-(91)
273
(281)
36
(986)
418
-(720)
86
(249)
17
(448)
(34)
142
$ 108
(215)
1,000
(609)
3
(240)
(10)
(71)
(73)
146
$ 73
$205
---
$162
330
47
(1) 2007 amount includes $4 million of cash classified as held for sale on the Consolidated Balance Sheet.
(2) 2007 and 2006 amounts include $5 million and $4 million, respectively, of cash classified as held for sale on the Consolidated
Balance Sheets.
May 2, 2007
15
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Segment Operating Results and Statistics
Dominion Consolidated
Unaudited Summary of Operating Results
Three Months Ended
March 31,
2007
2006
(millions, except per share amounts)
Operating Revenue
$
4,712
$
4,951
Operating Expenses
Electric fuel and energy purchases
Purchased electric capacity
Purchased gas
Other energy-related commodity purchases
Other operations and maintenance
Depreciation, depletion and amortization
Other taxes
Total Operating Expenses
918
119
1,148
56
811
422
184
3,658
765
123
1,378
400
571
377
181
3,795
Operating Income
1,054
1,156
57
43
Interest and related charges
259
257
Income before income taxes and minority interest
Income taxes
852
322
942
369
Other income
Minority interest
-
5
Operating earnings
$
525
$
573
Operating earnings per share
$
1.50
$
1.64
(72)
Items excluded from operating earnings (net of taxes)
(39)
Reported net income
$
453
$
534
Reported net income per common share - Diluted
$
1.29
$
1.53
Average shares outstanding, diluted
350.8
348.1
Notes: Figures may not add due to rounding
For additional detail on items excluded from operating earnings, visit Dominion's Investor Relations
Web site at www.dom.com/investors under "GAAP Reconciliation"
May 2, 2007
16
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Dominion Delivery
Unaudited Summary of Operating Results
Three Months Ended
March 31,
2007
2006
(millions, except per share amounts)
Operating Revenue
$
Operating Expenses
Electric fuel and energy purchases
Purchased electric capacity
Purchased gas
Other energy-related commodity purchases
Other operations and maintenance
Depreciation, depletion and amortization
Other taxes
Total Operating Expenses
1,627
$
1,675
58
843
218
80
69
1,268
65
956
205
83
70
1,378
359
297
8
5
47
55
Income before income taxes and minority interest
Income taxes
320
121
247
91
Minority interest
-
-
Operating Income
Other income
Interest and related charges
Operating earnings
$
199
$
156
Operating earnings per share contribution
$
0.57
$
0.45
Average shares outstanding, diluted
350.8
348.1
Note: Figures may not add due to rounding
May 2, 2007
17
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Dominion Energy
Unaudited Summary of Operating Results
Three Months Ended
March 31,
2007
2006
(millions, except per share amounts)
Operating Revenue
$
681
$
873
Operating Expenses
Electric fuel and energy purchases
Purchased electric capacity
Purchased gas
Other energy-related commodity purchases
Other operations and maintenance
Depreciation, depletion and amortization
Other taxes
Total Operating Expenses
360
1
99
33
16
510
553
2
87
31
14
687
Operating Income
171
186
Other income
15
11
Interest and related charges
16
19
170
68
-
178
71
-
1
Income before income taxes and minority interest
Income taxes
Minority interest
Operating earnings
$
102
$
107
Operating earnings per share contribution
$
0.29
$
0.31
Average shares outstanding, diluted
350.8
348.1
Note: Figures may not add due to rounding
May 2, 2007
18
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Dominion Generation
Unaudited Summary of Operating Results
Three Months Ended
March 31,
2007
2006
(millions, except per share amounts)
Operating Revenue
$
Operating Expenses
Electric fuel and energy purchases
Purchased electric capacity
Purchased gas
Other energy-related commodity purchases
Other operations and maintenance
Depreciation, depletion and amortization
Other taxes
Total Operating Expenses
1,807
$
1,696
876
119
3
54
374
81
47
1,554
734
123
3
173
265
67
45
1,410
253
286
Other income
35
23
Interest and related charges
55
67
233
94
-
242
103
1
Operating Income
Income before income taxes and minority interest
Income taxes
Minority interest
Operating earnings
$
139
$
138
Operating earnings per share contribution
$
0.40
$
0.39
Average shares outstanding, diluted
350.8
348.1
Note: Figures may not add due to rounding
May 2, 2007
19
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Dominion Exploration & Production
Unaudited Summary of Operating Results
Three Months Ended
March 31,
2007
2006
(millions, except per share amounts)
Operating Revenue
$
709
$
941
Operating Expenses
Electric fuel and energy purchases
Purchased electric capacity
Purchased gas
Other energy-related commodity purchases
Other operations and maintenance
Depreciation, depletion and amortization
Other taxes
Total Operating Expenses
-
-
36
145
220
42
443
56
224
20
188
43
531
Operating Income
266
410
4
5
54
39
Income before income taxes and minority interest
Income taxes
216
78
376
146
Minority interest
-
-
Other income
Interest and related charges
Operating earnings
$
138
$
230
Operating earnings per share contribution
$
0.39
$
0.66
Average shares outstanding, diluted
350.8
348.1
Note: Figures may not add due to rounding
May 2, 2007
20
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Dominion
Unaudited Operating Revenue Detail (GAAP Based)
Three Months Ended
March 31,
2007
2006
(millions, except per share amounts)
Dominion Consolidated
Operating Revenue
Electric
Regulated
Non-regulated
Gas
Regulated
Non-regulated
Other energy-related commodities
Gas transportation and storage
Gas and oil production
Other revenue
Total operating revenue
$
$
1,411
736
559
879
146
349
559
73
4,712
$
$
1,298
594
800
882
493
286
531
67
4,951
Dominion Delivery
Operating Revenue
Electric
Regulated
Non-regulated
Gas
Regulated
Non-regulated
Other energy-related commodities
Gas transportation and storage
Gas and oil production
Other revenue
Total operating revenue
$
$
297
76
$
559
458
201
36
1,627
$
55
$
276
95
800
328
136
40
1,675
Dominion Energy
Operating Revenue
Electric
Regulated
Non-regulated
Gas
Regulated
Non-regulated
Other energy-related commodities
Gas transportation and storage
Gas and oil production
Other revenue
Total operating revenue
$
$
51
-
-
405
41
171
9
681
603
40
169
11
873
$
Dominion Generation
Operating Revenue
Electric
Regulated
Non-regulated
Gas
Regulated
Non-regulated
Other energy-related commodities
Gas transportation and storage
Gas and oil production
Other revenue
Total operating revenue
$
$
1,058
685
$
971
537
-
-
4
53
7
1,807
1
173
12
1,696
$
Dominion Exploration & Production
Operating Revenue
Electric
Regulated
Non-regulated
Gas
Regulated
Non-regulated
Other energy-related commodities
Gas transportation and storage
Gas and oil production
Other revenue
Total operating revenue
$
$
-
$
-
-
-
36
50
4
610
9
709
50
281
8
596
6
941
$
Note: Figures may not add due to rounding
May 2, 2007
21
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
Dominion
K I T
Three Months Ended
Operating Statistics
March 31,
2007
2006
Dominion Consolidated
Regulated Electric Sales Revenue ($ millions)
Residential
Commercial
Industrial
Governmental
Regulated retail revenue
Wholesale - sales for resale
Other revenue
Total
Degree Days (Electric service area)
Cooling
Actual
Normal
Heating
Actual
Normal
$661
398
113
144
1,316
70
25
$1,411
$601
375
107
144
1,227
60
10
$1,297
12
6
13
6
1,993
2,006
1,796
2,010
2,095,163
226,554
623
31,011
2,353,351
6
2,353,357
2,064,197
222,730
639
30,913
2,318,479
6
2,318,485
8,308
6,609
2,423
2,557
19,897
1,110
21,007
7,543
6,255
2,362
2,388
18,548
935
19,483
8,304
6,609
2,423
2,557
19,893
1,110
21,003
7,538
6,255
2,362
2,388
18,543
935
19,478
Dominion Delivery
Electric Delivery Customers (at period end)
Residential
Commercial
Industrial
Governmental
Total Retail
Wholesale - sales for resale
Total
Electricity Delivered (Gwhr)
Residential
Commercial
Industrial
Governmental
Total Retail
Wholesale - sales for resale
Total
Dominion Generation
Electricity Sold (Gwhr) to VP/NCP customers
Residential
Commercial
Industrial
Governmental
Total Retail
Wholesale - sales for resale
Total
Note: Figures may not add due to rounding.
May 2, 2007
22
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
Dominion
K I T
Three Months Ended
Operating Statistics
March 31,
2007
2006
Dominion Delivery
Regulated Gas Revenue ($mm)
Gas sales revenue
Residential
Commercial
Industrial
Other
Total
Gas Transportation and Storage Revenue ($mm)
Gas transportation revenue
Residential
Commercial
Industrial
Other
Total transportation revenue
Storage revenue
Total
Degree Days (LDC service areas)
Heating
Actual
Normal
LDC Natural Gas Customers (at period end)
Gas sales customers
Residential
Commercial
Industrial
Other
Total
Gas transportation customers
Residential
Commercial
Industrial
Total
Total LDC natural gas customers
Residential
Commercial
Industrial
Other
Total
LDC Natural Gas Delivery (mmcf)
Gas sales volume
Residential
Commercial
Industrial
Other
Total
Gas transportation volume
Residential
Commercial
Industrial
Other
Total
Total LDC natural gas throughput
Residential
Commercial
Industrial
Other
Total
$
417
131
8
3
559
$
125
49
19
2
195
4
200
$
617
168
11
4
800
$
77
36
19
1
133
2
135
3,015
2,922
2,580
2,933
737,046
58,363
421
36
795,866
925,444
69,971
457
36
995,908
836,517
64,456
1,454
902,427
651,596
51,460
1,427
704,483
1,573,563
122,819
1,875
36
1,698,293
1,577,040
121,431
1,884
36
1,700,391
34,278
11,029
682
257
46,246
38,416
10,769
760
333
50,278
44,884
23,862
32,136
6,481
107,363
29,481
19,982
33,203
4,403
87,069
79,162
34,891
32,818
6,738
153,609
67,897
30,751
33,964
4,736
137,348
Note: Figures may not add due to rounding.
May 2, 2007
23
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
Dominion
K I T
Three Months Ended
March 31,
Operating Statistics
2007
2006
639,768
256,631
637,985
1,534,384
429,247
185,256
584,962
1,199,465
51,160
786,337
29,990
1,041,790
278.4
234.1
2.2
56.4
2.5
2.3
63.8
2.7
$9.47
$32.69
$8.66
$41.59
72.3
4.0
76.3
5,553.6
109.6
68.0
4.0
72.0
6,079.7
108.5
$6.57
$46.69
$6.95
$7.99
$53.35
$8.31
$5.80
$35.47
$5.83
$4.99
$38.82
$5.51
74.5
4.0
78.5
5,610.0
112.1
70.3
4.0
74.3
6,143.6
111.2
$6.59
$46.55
$6.96
$8.06
$53.23
$8.34
$5.89
$35.45
$5.89
$5.09
$38.84
$5.57
Dominion Delivery (Dominion Retail)
Unregulated Energy Customer Accounts (at period end)
Natural Gas
Electric
Products and Services
Total
Volumes Sold
Natural Gas (Mcf)
Electricity (Mwhr)
Dominion Energy
Gas Transmission Throughput (Bcf) *
* Includes Cove Point
NATURAL GAS AND OIL PRODUCTION (NGLs reported with liquids)
Dominion Energy (Dominion Transmission)
Volumes Produced
Natural Gas (Bcf)
Liquids (MBbls)
Total equivalent (Bcfe)
Average Realized Prices
Natural Gas (per Mcf)
Liquids (per Bbl)
Dominion Exploration and Production
Volumes Produced
Natural Gas US (Bcf)
Natural Gas Canada (Bcf)
Natural Gas Total (Bcf)
Liquids (MBbls)
Total equivalent (Bcfe)
Average Realized Prices Without Hedging Results
Natural Gas (per Mcf)
Liquids (per Bbl)
Equivalent (per Mcfe)
Average Realized Prices With Hedging Results
Natural Gas (per Mcf)
Liquids (per Bbl)
Equivalent (per Mcfe)
DOMINION CONSOLIDATED
Volumes Produced
Natural Gas US (Bcf)
Natural Gas Canada (Bcf)
Natural Gas Total (Bcf)
Liquids (MBbls)
Total equivalent (Bcfe)
Average Realized Prices Without Hedging Results
Natural Gas (per Mcf)
Liquids (per Bbl)
Equivalent (per Mcfe)
Average Realized Prices With Hedging Results
Natural Gas (per Mcf)
Liquids (per Bbl)
Equivalent (per Mcfe)
Volumetric Production Agreements (Excluded from Reported Production and Average Realized Prices)
(1)
Volumes Delivered (Bcf)
VPP1 - Texas Muncipal Gas Corp
VPP2 - Goldman Sachs
VPP3 - UBS
Total
Average Revenue Recognized ($/Mcf)
VPP1 - Texas Muncipal Gas Corp
VPP2 - Goldman Sachs
VPP3 - UBS
Average
(1)
(2)
0.3
3.8
4.8
9.0
3.9
5.1
5.6
14.6
$3.55
$4.33
$6.04
$5.22
$3.77
$5.00
$6.94
$5.41
(2)
VPP volumes delivered are not included in production volumes reported above
VPP revenue is not included in average realized prices reported above, but is recognized
in Gas and Oil Production in Dominion E&P
Note: Figures may not add due to rounding.
May 2, 2007
24
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Schedule of Long-term Debt
Dominion Resources, Inc.
Schedule of Long-Term Debt - Preliminary & Unaudited
($ in Millions)
At 3/31
2006
At 6/30
2006
At 9/30
2006
At 12/31
2006
At 3/31
2007
Dominion Resources, Inc.
Unsecured Senior & Medium-Term Notes:
3.66% to 8.125%, due 2006 to 2010
$
2,442 $
2,442 $
2,442 $
2,030 $
2,030
5% to 7.195%, due 2012 to 2035
$
3,880 $
3,880 $
3,880 $
4,130 $
4,130
Variable rates, due 2006 to 2008
$
1,100 $
1,000 $
1,000 $
1,400 $
1,400
Unsecured Convertible Senior Notes, 2.125%, due 2023
(1)
Unsecured Junior Subordinated Notes Payable to Affiliated Trusts, 7.83% to 8.4%, due 2027 to 2041
$
220
$
220
$
220
$
220
$
220
$
825
$
825
$
825
$
516
$
516
Enhanced Junior Subordinated Notes, 6.3% to 7.5%, due 2066
$
-
$
300
$
800
$
800
$
800
$
234
$
234
$
234
$
-
$
-
Consolidated Natural Gas Company
Secured Bank Debt, Variable Rate, due 2006
Unsecured Debentures & Senior Notes:
5.375% to 6.875%, due 2006 to 2011
$
2,000 $
2,000 $
2,000 $
1,500 $
1,500
5.0% to 6.875%, due 2013 to 2027
$
1,200 $
1,200 $
1,200 $
1,200 $
1,200
Unsecured Junior Subordinated Notes Payable to Affiliated Trust, 7.8%, due 2041
$
206
$
206
$
206
$
206
$
206
$
215
$
215
$
215
$
215
$
215
$
370
$
370
$
370
$
370
$
370
Virginia Electric and Power Company
Secured First and Refunding Mortgage Bonds:
7.625% due 2007
Secured Bank Debt, Variable Rate, due 2007
Unsecured Senior and Medium-Term Notes:
4.5% to 5.75%, due 2006 to 2010
4.75% to 8.625%, due 2013 to 2036
Unsecured Callable and Puttable Enhanced SecuritiesSM, 4.10%, due 2038
$
1,000 $
1,000 $
1,000 $
1,000
$
350
$
1,760 $
1,755 $
1,754 $
1,748 $
1,747
$
225
$
225
$
225
$
225
$
225
Tax-Exempt Financings:
Variable Rate, due 2008
$
60
$
60
$
60
$
60
$
60
Variable Rates, due 2015 to 2027
(2)
4.95% to 7.65%, due 2007 to 2010
$
137
$
137
$
137
$
137
$
137
$
232
$
232
$
232
$
232
$
220
$
263
$
263
$
263
$
263
$
209
$
412
$
412
$
412
$
412
$
412
Secured Senior Note, 7.33%, due 2020
$
222
$
218
$
218
$
213
$
213
Secured Bank Debt, Variable Rates, due 2006
$
347
$
347
$
347
$
-
$
-
Tax-Exempt Financing, 5%, due 2036
$
47
$
47
$
47
$
6
2.3% to 7.55%, due 2014 to 2031
(2)
Unsecured Junior Subordinated Notes Payable to Affiliated Trust, 7.375%, due 2042
Dominion Energy, Inc.
47
$
47
Dominion Capital, Inc.
Notes, 12.5%, due 2006 to 2008
$
$
4
$
4
$
4
$
4
Senior Note, Variable Rate, due 2017
$
-
$
385
$
385
$
385
$
385
$
107
$
107
$
-
$
-
$
-
$
17,510 $
18,083 $
(81)
(65)
(2,378)
(2,279)
Dominion Resources Services, Inc.
Secured Bank Debt, Variable Rate, due 2006
Fair Value Hedge Valuation
Amounts Due Within One Year
Unamortized Discount & Premium, net
Total Long-Term Debt
$
(1)
The 8.4% Junior Subordinated Notes due in 2041 were redeemed early on October 17, 2006.
(2)
The Pittsylvania 1994-A Series tax exempt bonds were redeemed early on February 23, 2007.
18,475 $
3
(4,070)
17,313 $
(6)
(2,478)
(36)
(36)
(36)
(38)
15,015 $
15,703 $
14,372 $
14,791 $
May 2, 2007
16,596
17
(2,254)
(38)
14,321
25
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Schedule of Debt Maturity
Dominion Resources, Inc. & Subsidiaries
2007 - 2011 Schedule of Debt Maturities as of March 31, 2007
($ in Millions)
Due Date
DRI
2007
12.50% Mortgage
7.625% 1992 Series D First & Refunding Mortgage Bonds
Secured Bank Debt (variable)
Series D Senior Notes (floating rate)
4.95% Series 1987C IDA Chesterfield Pollution Control Rev Bonds
6.875% Louis Dreyfus Senior Notes
7.25% Mecklenburg Senior Bonds
8.625% Panda-Rosemary Senior Notes
7.33% Senior Secured Bonds
7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes
Total 2007
06/15/07
07/01/07
08/22/07
09/28/07
12/01/07
12/01/07
multiple
multiple
multiple
multiple
1,000.0
1,000.0
215.0
370.0
15.0
8.2
3.4
0.1
611.7
200.0
200.0
2.0
9.5
11.5
2.0
215.0
370.0
1,000.0
15.0
200.0
8.2
3.4
9.5
0.1
1,823.2
2008
7.65% Series 1994-B IDA Pittsylvania Multitrade
5.25% Series 1985 IDA Chesapeake Pollution Control Rev Bonds
4.125% 2003 Series B Senior Notes
5.687% Remarketed 2002 Series A Senior Notes
Series B Senior Notes (floating rate)
5.73% Series F#2 Medium Term Notes
6.625% Debentures
IDA Louisa Money Market Municipals (variable)
5.25% Series 1985 IDA Louisa Pollution Control Rev Bonds
12.50% Mortgage
7.25% Mecklenburg Senior Bonds
8.625% Panda-Rosemary Senior Notes
7.33% Senior Secured Bonds
7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes
Total 2008
01/01/08
02/01/08
02/15/08
05/15/08
11/14/08
11/25/08
12/01/08
12/01/08
12/01/08
12/08/08
multiple
multiple
multiple
multiple
400.0
330.0
400.0
1,130.0
0.7
30.0
120.0
60.0
62.0
8.6
4.6
0.2
286.1
150.0
150.0
2.0
10.2
12.2
0.7
30.0
400.0
330.0
400.0
120.0
150.0
60.0
62.0
2.0
8.6
4.6
10.2
0.2
1,578.3
2009
7.65% Series 1994-B IDA Pittsylvania Multitrade
5.500% Series 1985 IDA York Pollution Control Rev Bonds
5.500% Series 1985 IDA Chesterfield Pollution Control Rev Bonds
5.125% 2002 Series D Senior Notes
7.25% Mecklenburg Senior Bonds
8.625% Panda-Rosemary Senior Notes
7.33% Senior Secured Bonds
7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes
Total 2009
01/01/09
07/01/09
10/01/09
12/15/09
multiple
multiple
multiple
multiple
300.0
300.0
0.9
70.0
40.0
8.4
4.9
0.2
124.4
-
10.9
10.9
0.9
70.0
40.0
300.0
8.4
4.9
10.9
0.2
435.3
2010
7.65% Series 1994-B IDA Pittsylvania Multitrade
8.125% 2000 Series A Senior Notes
6% 1998 Series A Debentures
4.75% 2005 Series A Senior Notes
4.5% 2003 Series B Senior Notes
7.25% Mecklenburg Senior Bonds
8.625% Panda-Rosemary Senior Notes
7.33% Senior Secured Bonds
7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes
Total 2010
01/01/10
06/15/10
10/15/10
12/15/10
12/15/10
multiple
multiple
multiple
multiple
700.0
300.0
1,000.0
1.2
230.0
9.2
5.1
0.2
245.7
200.0
200.0
11.7
11.7
1.2
700.0
200.0
300.0
230.0
9.2
5.1
11.7
0.2
1,457.4
2011
6.85% 2001 Series A Senior Notes
6.25% 2001 Series C Senior Notes
7.25% Mecklenburg Senior Bonds
8.625% Panda-Rosemary Senior Notes
7.33% Senior Secured Bonds
7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes
Total 2011
04/15/11
11/01/11
multiple
multiple
multiple
multiple
9.6
5.3
0.2
15.1
500.0
450.0
950.0
12.5
12.5
500.0
450.0
9.6
5.3
12.5
0.2
977.6
Total 5-year Debt Maturities
VEPCO
-
$
3,430.0
$
1,283.0
CNG
$
1,500.0
Other
$
58.8
May 2, 2007
Total
$
6,271.8
26
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Schedule of Change in Capitalization
Dominion Resources, Inc. & Subsidiaries
Summary of Changes in Capitalization From December 31, 2006 to March 31, 2007
($ in Millions)
Change in Debt (Long-Term Debt plus Securities Due Within One Year)
Balance as of December 31, 2006
Issuances:
none
17,269
$
16,575
$
12,913
$
50
12,963
-
Maturities:
VEPCO 2002 Series A 5.375% Senior Notes due 2007
VEPCO IDA of Pittsylvania County 7.550% Series 1994 A due 2019(1)
VEPCO IDA of Pittsylvania County 7.500% Series 1994 A due 2014(1)
VEPCO IDA of Pittsylvania County 7.450% Series 1994 A due 2009(1)
Other
(650)
(31)
(23)
(8)
(5)
(717)
Other:
Change in Fair Value Hedges and Net Discount/Premium
23
23
Balance as of March 31, 2007
(1)
$
Redeemed early on February 23, 2007.
Change in Shareholders' Equity
Balance as of December 31, 2006
Issuance and Repurchase of Stock, Net
Change in Other Paid-in Capital
Changes in AOCI:
Net Other Comprehensive Loss associated with effective portion of
changes in fair value of derivatives designated as cash flow hedges,
net of taxes and amounts reclassified to earnings:
Gas
Oil
Electricity
(2)
Other
Other changes in Net Other Comprehensive Income
Change in Retained Earnings
94
13
(146)
24
(85)
(8)
(215)
11
147
(3)
Balance as of March 31, 2007
(2)
(3)
Debt-related and foreign exchange hedges
Primarily reflects the impact of both unrealized gains and losses on investments held in decommissioning trusts,
foreign currency translation adjustments and changes in the unrecognized portion of pension and other postretirement benefits.
Change in Earnings From AOCI to Realized (After-tax) - Hedge Activities
Gain/(Loss) Expected to be
Reclassified to Earnings
from April 1, 2007 - March 31, 2008
Commodities
Gas
Oil
Electricity
Other, net
$
(242)
(181)
(138)
1
(560)
Note: The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged
transactions (e.g., anticipated sales) in earnings,thereby achieving the realization of prices contemplated by the
underlying risk management strategies and will vary from the expected amounts as presented above as a result of
changes in market prices, interest rates and foreign exchange rates.
May 2, 2007
27
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Hedging
Natural Gas and Oil Hedge Position
Dominion
Appalachian Natural Gas and Oil Hedge Positions
(as of May 2, 2007)
Description
2007
2008
37
$6.20
36
$8.32
33
$0.35
31
$0.34
Liquids:
1, 2
Commodity Hedges (mmbbls)
1, 2
Average Hedge Price ($/bbl)
0.011
$30.80
0.013
$49.09
Natural Gas Equivalent:
1, 2, 3
Commodity Hedges (Bcfe)
1, 2
Average Hedge Price ($/Mcfe)
37
$6.20
37
$8.32
1
1
Natural Gas:
1, 2, 3
Commodity Hedges (Bcf)
1, 2
Average Hedge Price ($/Mcf)
1, 2
Locational Basis Differential Hedges (Bcf)
Average Locational Basis Differential to Henry Hub ($/Mcf)
E&P Company Use (Bcfe)
4
Footnotes:
(1) Excludes VPPs.
(2) Includes Dominion Transmission, Inc.
(3) Assumes a btu to Mcf conversion rate of 1.0.
(4) Fuel used in Appalachia E&P company operations.
May 2, 2007
28
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Electric Generation and Coal Hedge Position
Dominion Generation
Summer Capacity Ratings, Energy, and Fuel Hedge Positions
(as of May 2, 2007)
Net Summer
Capacity
1
Power Hedge Position
Utility Generation
(MW)
2007
2008
17,757
100%
100%
Merchant Generation
Millstone
Dominion New England Coal
Dominion New England Oil
Dominion New England Gas
Fairless Works
Kewaunee
Kincaid
Elwood
State Line
Other
1,951
1,436
878
432
1,076
556
1,158
712
515
42
95%
100%
7%
4%
42%
100%
100%
100%
100%
100%
82%
49%
2%
0%
25%
100%
100%
100%
100%
100%
Total Merchant2
8,756
80%
67%
26,513
94%
90%
Total Generation2
Fuel Hedging & Power Pricing
Dominion New England Coal (Fuel) % Hedged
Millstone Energy Average Hedge Price ($/MWh)
2007
100%
2008
46%
$63.77
(1) Baseload units include the amount of available energy hedged. Non-baseload
units include the amount of available capacity or "spark spread" hedged.
Capacity shown represents only Dominion's interest in facility. Assume
capacity remains constant in all periods shown.
(2) Annual percentage calculations are capacity-weighted.
May 2, 2007
29
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Regional Capacity Hedge and Price Position
Dominion Generation
Regional Capacity Hedge and Price Positions
(as of May 2, 2007)
NEPOOL Capacity Hedging & Pricing
2007
EFOR Adjusted Capacity for Dominion New England & Millstone (MW)
Capacity Percent Hedged
Balance Subject to Transition Period Prices
Average Capacity Hedge Price ($/KW - month)
2008
4,464
4,464
33%
67%
$2.43
15%
85%
$3.04
1
PJM Capacity Hedging & Pricing by Locational Delivery Area (LDA)
Jun. 1, 2007 through
Dec. 31, 2007
EFOR Adjusted Eastern MAAC LDA Capacity Supply Estimate (MW)2
Capacity Percent Hedged
Balance Subject to Eastern MAAC RPM Auction Price3
Average Capacity Hedge Price ($/KW - month)
EFOR Adjusted Rest Of Market LDA Capacity Purchase Estimate (MW)4
Capacity Purchases Percent Hedged
3
Balance Subject to Rest Of Market RPM Auction Price
Average Rest Of Market Capacity Purchase Price ($/KW - month)
(1)
(2)
(3)
(4)
1,036
97%
3%
$3.76
1,705
59%
41%
$0.88
Dominion does not have capacity or load requirements in all PJM Locational Delivery Area's.
EFOR adjusted net long capacity position of Fairless Works.
RPM Auction prices for the planning period June 1, 2007 to May 31, 2008.
EROR adjusted net short capacity position of Dominion Virginia Power.
May 2, 2007
30
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
GAAP Reconciliation2
Ratio of Debt to Total Capitalization
Dominion Resources, Inc.
Reconciliation of measures prepared in accordance with Generally
(1)
Accepted Accounting Principles (GAAP) versus non-GAAP measures
Ratio of Total Debt to Total Capitalization (as of March 31, 2007)
GAAP measure
at 3/31/07
($ in millions)
Securities due within one year
Short-term debt
Long-term debt:
Junior subordinated notes
Junior subordinated notes payable to affiliated trusts
Non-recourse debt (FIN 46 consolidation)
Other long-term debt
Long-term debt - total
Total debt
Preferred stock
Junior subordinated notes
Junior subordinated notes payable to affiliated trusts
Common shareholders' equity:
Common stock
Other paid-in capital
Retained earnings
Accumulated other comprehensive loss:
Accumulated other comprehensive loss - FAS 158
Accumulated other comprehensive loss - other
Accumulated other comprehensive loss - total
Common shareholders' equity - total
Total equity and preferred stock
Total capitalization
Adjusted
at 3/31/07 (2)
2,254
2,750
2,254
2,750
798
1,152
385
11,986
14,321
19,325
257
399
59.4%
11,986
12,385
17,389
257
399
1,152
11,344
141
2,107
11,344
141
2,107
(337)
(292)
(629)
12,963
13,220
$32,545
(337)
(292)
(629)
12,963
14,771
$32,160
40.6%
54.1%
45.9%
(1) Regulation G of the SEC's rules require reconciliations to U.S. GAAP measures for certain publicly disclosed financial
information. This schedule is presented to meet the requirements of Regulation G.
(2) Excluding the impact of 'accumulated other comprehensive loss' ($629), adjusted total debt to total capitalization at
March 31, 2007 would have been 53.0%.
May 2, 2007
31
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Funds From Operations (FFO) Interest Coverage
Dominion Resources, Inc.
(1)
Coverage Ratio Reconciliations Required by SEC Regulation G
Funds from Operations Interest Coverage
(Twelve months ended March 31, 2007)
Cashflow
Interest
Coverage
($ in millions)
FFO
Interest
Coverage
Net cash provided by operating activities per U.S. GAAP
Consolidated Statement of Cash Flows
[a]
$4,231
Adjustments to reconcile cash provided by operating
activities to FFO:
Changes in working capital and other
[b]
-
Funds From Operations (FFO)
[c=a+b]
4,231
3,907
Interest expense per U.S. GAAP financial statements
Capitalized interest, including AFUDC
[d]
[e]
1,016
-
1,016
131
Total Interest Expense
[f=d+e]
1,016
1,147
FFO/ Interest Coverage
[(c+d)/f]
5.2
4.3
$4,231
(324)
(1) Regulation G of the SEC's rules requires reconciliations to U.S. GAAP measures for certain publicly disclosed
financial information. This schedule is presented to meet the requirements of Regulation G.
May 2, 2007
32
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.
D O M I N I O N
–
1 Q 0 7
E A R N I N G S
R E L E A S E
K I T
Funds From Operations (FFO) Debt Coverage
Dominion Resources, Inc.
(1)
Coverage Ratio Reconciliations Required by SEC Regulation G
Funds from Operations to Debt Coverage
(Twelve months ended March 31, 2007)
Cashflow
Debt
Coverage
($ in millions)
Net cash provided by operating activities per U.S. GAAP
Consolidated Statement of Cash Flows
[a]
$
4,231
$
4,231
FFO
Debt
Coverage
$
4,231
$
3,907
Adjusted
FFO
Debt
Coverage
$
4,231
$
3,907
Adjustments to reconcile cash provided by operating
activities to FFO:
Changes in working capital and other
[b]
Funds From Operations (FFO)
[c=a+b]
Securities due within one year
Short-term debt
Long-term debt:
Junior subordinated notes
Junior subordinated notes payable to affiliated trusts
Non-recourse debt (FIN 46 consolidation)
Other long-term debt
[d]
[e]
2,254
2,750
2,254
2,750
2,254
2,750
[f]
[g]
[h]
[i]
798
1,152
385
11,986
798
1,152
385
11,986
399
11,986
[j=f+g+h+i]
14,321
14,321
12,385
Long-term debt - total
Total Debt
[k=d+e+j]
FFO to Debt Coverage
[c/k]
-
$
19,325
(324)
$
19,325
21.9%
20.2%
(324)
$
17,389
22.5%
(1) Regulation G of the SEC's rules requires reconciliations to U.S. GAAP measures for certain publicly disclosed financial
information. This schedule is presented to meet the requirements of Regulation G.
May 2, 2007
33
Please refer to the “Important Note to Investors” on page 3 of the 1Q07 Earnings Release Kit for
risks and uncertainties related to projections and forward looking statements.