After careful review of last week’s actions by FERC concerning transportation pipelines, Dominion Energy is reconfirming its operating earnings guidance of 95 cents to $1.15 per share for the first quarter of 2018 and $3.80 to $4.25 per share for the fiscal year 2018, as well as its 2017 to 2020 compound earnings growth rate of 6% to 8%.
The company believes that FERC’s change in policy will take years to implement and, even then, will only impact revenues on a prospective basis from the conclusion of any ratemaking process.
Regarding Dominion Energy Midstream Partners, the company does not anticipate any revenue reductions in the 2018 to 2020 time period due to FERC’s actions and is still evaluating any long term impacts and their timing.
In addition, Dominion Energy is confirming its commitment to maintain and improve its investment grade credit ratings. The company has a diverse mix of assets that provide multiple options to achieve its credit objectives while still achieving its earnings targets. These include a drop of its equity interest in Cove Point into Dominion Energy Midstream Partners (financed in public or private markets), the sale of existing assets and, if necessary, issuing incremental equity from Dominion Energy.