道明尼資源 (D) 2017 Q4 法說會逐字稿

Good morning, and welcome to the Dominion Energy and Dominion Energy Midstream Partners fourth quarter earnings conference call. (Operator Instructions)

早安，歡迎參加 Dominion Energy 和 Dominion Energy Midstream Partners 第四季財報電話會議。（操作員指示）

I would now like to turn the call over to Tom Hamlin, Vice President of Investor Relations and Financial Planning, for the safe harbor statement.

現在，我想將電話轉給投資者關係和財務規劃副總裁湯姆哈姆林 (Tom Hamlin)，讓他發表安全港聲明。

Good morning, and welcome to the Fourth Quarter 2017 Earnings Conference Call for Dominion Energy and Dominion Energy Midstream Partners. During this call, we will refer to certain schedules included in this morning's earnings releases and pages from our Earnings Release Kit. Schedules in the Earnings Release Kit are intended to answer the more detailed questions pertaining to operating statistics and accounting. Investor Relations will be available after the call for any clarification of these schedules. If you've not done so, I encourage you to visit the Investor Relations page on our website, register for e-mail alerts and view our fourth quarter and full year earnings documents. Our website addresses are dominionenergy.com and dominionenergymidstream.com. In addition to the Earnings Release Kit, we have included a slide presentation on our website that will follow this morning's discussion.

早安，歡迎參加 Dominion Energy 和 Dominion Energy Midstream Partners 2017 年第四季財報電話會議。在本次電話會議中，我們將參考今天早上的收益發布中包含的某些時間表以及收益發布工具包中的頁面。收益發布工具包中的時間表旨在回答與營運統計和會計有關的更詳細的問題。電話會議結束後，投資者關係部門將負責解答有關這些時間表的任何問題。如果您還沒有這樣做，我鼓勵您訪問我們網站上的投資者關係頁面，註冊電子郵件提醒並查看我們的第四季度和全年收益文件。我們的網址是 dominionenergy.com 和 dominionenergymidstream.com。除了收益發布工具包之外，我們還在網站上提供了幻燈片演示，該演示將在今天上午的討論之後進行。

And now for the usual cautionary language. The earnings releases and other matters that will be discussed on the call today may contain forward-looking statements and estimates that are subject to various risks and uncertainties. Please refer to our SEC filings, including our most recent annual reports on Form 10-K and our quarterly reports on Form 10-Q, for a discussion of factors that may cause results to differ from management's projections, forecasts, estimates and expectations.

現在來看看常見的警告語。今天電話會議上討論的收益報告和其他事項可能包含前瞻性陳述和估計，這些陳述和估計受各種風險和不確定性的影響。請參閱我們向美國證券交易委員會 (SEC) 提交的文件，包括我們最近的 10-K 表年度報告和 10-Q 表季度報告，以了解可能導致結果與管理層的預測、預報、估計和預期不同的因素。

Also on this call, we will discuss some measure of our company's performance that differ from those recognized by GAAP. Reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measures we are able to calculate and report are contained in the Earnings Release Kit and Dominion Energy Midstream Partners' press release.

此外，在本次電話會議上，我們將討論一些與 GAAP 不同的公司績效衡量指標。我們的非 GAAP 指標與我們能夠計算和報告的最直接可比較的 GAAP 財務指標的對帳包含在收益發布工具包和 Dominion Energy Midstream Partners 的新聞稿中。

Joining us on the call this morning are our CEO, Tom Farrell; our CFO, Mark McGettrick; and other members of our management team. Mark will discuss our earnings results and Dominion Energy's earnings guidance. Tom will review our operating and regulatory activities and review the progress we've made on our growth plans.

今天早上參加電話會議的有我們的執行長湯姆法雷爾 (Tom Farrell)、我們的財務長馬克麥格特里克 (Mark McGettrick) 以及我們管理團隊的其他成員。馬克將討論我們的獲利結果和 Dominion Energy 的獲利預測。湯姆將審查我們的營運和監管活動，並審查我們在成長計劃上的進展。

I will now turn the call over to Mark McGettrick.

現在我將電話轉給馬克·麥格特里克。

Good morning. Dominion Energy reported operating earnings of $3.60 per share for 2017, which was in the middle of our guidance range, mild weather conditions in our electric service territory in both the winter and summer had a $0.10 per share negative impact on our results. Adjusting for weather, our earning results were in the upper half of our range. Other negative factors impacting earnings were a lower allowed rate of return on our Virginia Rider projects and lower margins from our merchant generation business. The positive factors for the year relative to our guidance include lower-than-expected generation capacity expenses, interest expenses and operating expenses.

早安.Dominion Energy 公佈 2017 年營業收益為每股 3.60 美元，處於我們指導範圍的中間，冬季和夏季我們電力服務區域內的溫和天氣條件對我們的業績產生了每股 0.10 美元的負面影響。經過天氣調整後，我們的獲利結果處於預期範圍的上半部。影響收益的其他負面因素包括維吉尼亞騎士計畫的允許回報率較低以及商家發電業務的利潤率較低。相對於我們的指導，今年的積極因素包括低於預期的發電容量費用、利息費用和營運費用。

EBITDA summaries of our operating segments for the fourth quarter and full year 2017 are shown on Slides 4 and 5. Overall, we are very pleased with the performance of our operating segments in 2017.

我們的 2017 年第四季和全年營運分部的 EBITDA 摘要顯示在投影片 4 和 5 上。整體而言，我們對 2017 年營運分部的業績非常滿意。

GAAP earnings were $4.93 per share for the year. The principal difference between GAAP and operating earnings was a $988 million gain due to tax reform, primarily driven by an adjustment to our deferred tax liability. The reconciliation of operating earnings to reported earnings can be found on Schedule 2 of the Earnings Release Kit.

全年 GAAP 收益為每股 4.93 美元。GAAP 與營業收益之間的主要差異是由於稅制改革而產生的 9.88 億美元收益，這主要是由於我們遞延稅項負債的調整所致。營業收益與報告收益的對帳表可在收益發布工具包附表 2 中找到。

Dominion Energy Midstream Partners produced adjusted EBITDA of $299 million for 2017, which is more than double the level produced in 2016. Distributable cash flow was $178 million, which was 68% higher than 2016. The acquisition of Questar Pipeline in December of 2016 was the principal driver of the increase.

Dominion Energy Midstream Partners 2017 年的調整後 EBITDA 為 2.99 億美元，是 2016 年的兩倍多。可分配現金流為 1.78 億美元，比 2016 年高出 68%。2016 年 12 月收購 Questar Pipeline 是推動這項成長的主要因素。

On January 25, Dominion Energy Midstream's Board of Directors declared a distribution of $0.318 per common unit payable on February 15. This distribution represents a 5% increase over last quarter's payment and is consistent with our 22% per year distribution growth rate plan. Our coverage ratio remains strong at 1.29x.

1 月 25 日，Dominion Energy Midstream 董事會宣布將於 2 月 15 日支付每普通股 0.318 美元的分配。此次分配比上一季的支付額增加了 5%，與我們每年 22% 的分配成長率計畫一致。我們的覆蓋率仍保持在 1.29 倍的強勁水平。

Also, we are in advanced stages of securing a $500 million revolving credit facility for Dominion Midstream that will replace its existing credit line with the parent company. This should be in place in the next few weeks.

此外，我們正處於為 Dominion Midstream 爭取 5 億美元循環信貸額度的後期階段，這將取代其與母公司的現有信貸額度。這項措施將在未來幾週內實施。

Moving to treasury activities at Dominion Energy. Cash flow from operating activities was $4.6 billion for 2017. We have $5.5 billion of credit facilities, and taking into account cash, short-term investments and commercial paper outstanding, we ended the year with available liquidity of $2.2 billion. We are also in the process of increasing Dominion's credit facilities by $500 million up to a total of $6 billion, which will further improve our liquidity. For statements of cash flow and liquidity, please see Pages 13 and 24 of the Earnings Release Kit.

轉向 Dominion Energy 的財務活動。2017年經營活動現金流為46億美元。我們擁有 55 億美元的信貸額度，考慮到現金、短期投資和未償還商業票據，我們到年底的可用流動資金為 22 億美元。我們也正在將 Dominion 的信貸額度增加 5 億美元，使總額達到 60 億美元，這將進一步提高我們的流動性。有關現金流量和流動性報表，請參閱收益發布工具包的第 13 頁和第 24 頁。

On Slide 8, we outline a number of initiatives we have planned for 2018, which are in support of our balance sheet and credit profile. First, we issued $500 million of new common equity through our at-the-market program in January. This issuance was not related to our planned SCANA financing. Second, we have reviewed our capital spending plan and anticipate reducing our expenditures by $1 billion over the next 2 years. These reductions will have no impact on our previously disclosed growth capital estimate. Third, as I just mentioned, we are securing an extension and upsize of Dominion's credit facilities up to a total of $6 billion. This is in addition to the new $500 million credit facility planned at Dominion Energy Midstream Partners. And finally, we are initiating the process of delevering the parent company and on a net basis will reduce holding company debt by $800 million or more this year. These and other elements of our 2018 financing plan, excluding our planned SCANA transaction, are shown on Slide 9. I want to assure everyone that we are committed to our investment-grade ratings and will strive to meet the associated credit metrics.

在第 8 張投影片上，我們概述了我們為 2018 年計劃的一系列舉措，這些舉措旨在支持我們的資產負債表和信用狀況。首先，我們在一月份透過市場發行計畫發行了 5 億美元的新普通股。此次發行與我們計劃的 SCANA 融資無關。其次，我們審查了我們的資本支出計劃，預計未來兩年內將減少 10 億美元的支出。這些減少不會對我們先前揭露的成長資本估計產生影響。第三，正如我剛才提到的，我們正在確保將 Dominion 的信貸額度延長並增加至總額 60 億美元。這是 Dominion Energy Midstream Partners 計劃提供的 5 億美元新信貸額度的補充。最後，我們正在啟動母公司的去槓桿進程，今年將淨減少控股公司債務 8 億美元或更多。這些以及我們 2018 年融資計劃的其他要素（不包括我們計劃的 SCANA 交易）顯示在幻燈片 9 上。我想向大家保證，我們致力於投資等級評級，並將努力滿足相關的信用指標。

Moving to tax reform on Slide 10. Recently enacted changes to the federal tax code will have a significant impact on most utilities. Assessing the impact is a difficult process for a multifaceted company like Dominion, operating in 7 different states. In estimating the ongoing impact from tax reform, we have assumed that the benefits of lower tax rates will be passed through to customers in all of our state-regulated businesses. On the plus side, lower tax rates will improve the profitability of our nonregulated and long-term contracted businesses. Also, the normalization, amortization of excess deferred income taxes will provide incremental growth to rate base in our regulated businesses. On the negative side, as highlighted by some of the recent comments from the rating agencies, the tax reform creates some credit headwinds, particularly for companies like Dominion who are currently not cash tax payers. We estimate the 2018 impact of federal tax reform will be a positive $0.10 to $0.15 per share.

轉到第 10 張投影片上的稅務改革。最近頒布的聯邦稅法修正案將對大多數公用事業產生重大影響。對於 Dominion 這樣在 7 個不同州開展業務的多元化公司來說，評估影響是一個困難的過程。在估計稅制改革的持續影響時，我們假設降低稅率的好處將轉嫁給所有受國家監管的企業的客戶。從好的方面來看，較低的稅率將提高我們非管制和長期合約業務的獲利能力。此外，超額遞延所得稅的正常化和攤銷將為我們監管業務的稅率基礎帶來增量成長。負面方面，正如一些評級機構最近的評論所強調的那樣，稅改帶來了一些信貸阻力，特別是對於 Dominion 這樣目前不是現金納稅人的公司而言。我們估計，2018 年聯邦稅改的影響將為每股 0.10 美元至 0.15 美元。

Now to earnings guidance at Dominion Energy. Operating earnings for 2018 are expected to be between $3.80 and $4.25 per share. The midpoint of our range is 10% above the middle of last year's guidance range. Positive factors compared to last year are earnings from Cove Point, a return to normal weather, one PURA refueling outage at Millstone and a lower effective tax rate due to tax reform. However, a large portion of the tax reform benefit will be offset by the delay in commercial operation for Cove Point. Tom Farrell will expand on the operational timing of Cove Point in a few minutes.

現在就來看看 Dominion Energy 的獲利預測。預計2018年營業收益在每股3.80美元至4.25美元之間。我們的區間中點比去年指導區間的中點高出 10%。與去年相比，積極因素包括 Cove Point 的收益、天氣恢復正常、Millstone 的一次 PURA 加油中斷以及稅制改革導致的有效稅率降低。然而，稅收改革帶來的很大一部分好處將被 Cove Point 商業營運的延遲所抵消。幾分鐘後，湯姆法雷爾 (Tom Farrell) 將詳細介紹 Cove Point 的營運時間。

Negative factors for 2018 compared to last year include lower investment tax credits, higher financing costs and share dilution.

與去年相比，2018 年的負面因素包括投資稅收抵免減少、融資成本增加和稀釋股份。

Our earnings growth rate remains 6% to 8% for the 2017 through 2020 period. This compound growth rate could improve to 8-plus percent if we are successful in our efforts to combine with SCANA Corporation.

2017年至2020年期間，我們的獲利成長率仍維持在6%至8%。如果我們成功與 SCANA 公司合併，這一複合成長率可能會提高到 8% 以上。

Our operating earnings guidance for the first quarter this year is $0.95 to $1.15 per share compared to $0.97 for the first quarter of last year. Positive factors for the quarter compared to last year's first quarter are a return to normal weather, a contribution from Cove Point export, higher merchant generation margins and federal tax reform. Negative factors include lower solar investment tax credits, higher financing costs, higher capacity expenses and higher DD&A.

我們對今年第一季的營業利潤預期為每股 0.95 美元至 1.15 美元，而去年第一季的營業利潤預期為每股 0.97 美元。與去年第一季相比，本季的積極因素包括天氣恢復正常、Cove Point 出口的貢獻、商家發電利潤率的提高以及聯邦稅收改革。負面因素包括太陽能投資稅收抵免降低、融資成本上升、容量費用上升以及 DD&A 上升。

You will notice in our guidance documents that projected EBITDA for our operating segments and total company will show a decline compared to the prior period even though net income and earnings per share are higher. This is due to the impact of the flow-through benefits of tax reform in our state-regulated businesses.

您會在我們的指導文件中註意到，儘管淨收入和每股收益較高，但我們營運部門和整個公司的預期 EBITDA 將與上一時期相比出現下降。這是由於稅收改革對我們受國家監管的企業所產生的流通效益的影響。

So let me summarize my financial review. Operating earnings were $3.60 per share, landing in the middle of our guidance range despite mild weather. Changes to the federal tax code are expected to be a net positive for Dominion's earnings. We are taking aggressive steps to strengthen our balance sheet to offset the credit impact of tax reform. And 2018 operating earnings are expected to be at least 10% above the midpoint of our 2017 operating earnings guidance range, consistent with previous guidance.

讓我總結一下我的財務回顧。營業收益為每股 3.60 美元，儘管天氣溫和，但仍處於我們預期範圍的中間。聯邦稅法的變化預計將對 Dominion 的利潤產生淨利好。我們正在採取積極措施加強資產負債表，以抵消稅制改革帶來的信貸影響。預計 2018 年營業利潤將比 2017 年營業利潤預期範圍中點高出至少 10%，與先前的預期一致。

I will now turn the call over to Tom Farrell.

現在我將電話轉給湯姆法雷爾。

Good morning. Strong operational and safety performance continued at Dominion Energy in 2017. All of our business units either met or exceeded their safety goals for the year. Our employees set an all-time low OSHA recordable rate of 0.66 in 2016. In 2017, they exceeded that record by an additional 10% to a new record low of 0.60. We are very proud of our company-wide commitment to improve safety performance.

早安.2017 年，Dominion Energy 持續保持強勁的營運和安全表現。我們所有的業務部門都達到或超過了今年的安全目標。2016 年，我們的員工的 OSHA 記錄率創下了歷史新低，為 0.66。2017年，該比率又突破了10%，達到0.60的新低點。我們為全公司致力於提高安全績效而感到非常自豪。

Our nuclear fleet continues to operate well. The net capacity factor of our 6 units in 2017 was a record 95.1%, exceeding the previous record of 93.7% set in 2013. Weather-normalized electric sales for the year were up 1.7% over 2016, led by growth in sales to data centers and residential customers. Total new customer connects were above our expectations, with strong growth in both residential and commercial sectors. For the year, we connected 13 new data centers compared to 11 in 2016.

我們的核動力裝置繼續運作良好。2017年，我們6台機組的淨容量係數創下了95.1%的新高，超過了2013年創下的93.7%的紀錄。受天氣影響，今年電力銷售額比 2016 年成長了 1.7%，主要原因是資料中心和住宅客戶的銷售額成長。新客戶總數超越我們的預期，住宅和商業領域均實現強勁成長。今年，我們連接了 13 個新資料中心，而 2016 年只有 11 個。

Now a few comments on Millstone Power Station. We are looking forward to the opportunity to compete with other non-emitting generating resources in a state-sponsored solicitation for 0 carbon electricity. It provides a path forward to retain 1,500 well-paying jobs and Millstone's substantial environmental, energy and economic benefits for Connecticut. Preliminary reports issued by DEEP and PURA in December and January highlighted the importance of Millstone to the region's power markets and the state's economy. We have worked with the regulatory agencies, including the sharing of confidential financial information, to convey the actual costs of operating 2 dissimilar units in a high regional labor market. An updated report issued on January 22 concluded that the solicitation should take place and that Millstone can participate. A recent report from ISO New England regarding the region's future fuel security and reliability risks also supports the need for Millstone. The final report from DEEP and PURA is expected this week, and we look forward to continuing to work through this process with the Connecticut regulators.

現在就 Millstone 發電站發表幾點評論。我們期待有機會在國家發起的零碳電力招標中與其他非排放發電資源競爭。它為康乃狄克州保留 1,500 個高薪工作以及 Millstone 帶來的巨大環境、能源和經濟效益提供了一條前進的道路。DEEP 和 PURA 在 12 月和 1 月發布的初步報告強調了 Millstone 對該地區電力市場和該州經濟的重要性。我們與監管機構合作，包括分享機密財務訊息，以傳達在高區域勞動力市場中運作兩個不同單位的實際成本。1 月 22 日發布的最新報告得出結論，招標應該進行，並且 Millstone 可以參與。ISO 新英格蘭分部最近發布的一份有關該地區未來燃料安全和可靠性風險的報告也支持了 Millstone 的必要性。DEEP 和 PURA 的最終報告預計將於本週發布，我們期待繼續與康乃狄克州監管機構合作完成這項流程。

Now for an update on our growth plans. Construction of the 1,588 megawatt Greensville County combined cycle power station continues on time and on budget. As of December 31, the $1.3 billion project was 73% complete. All major equipment is set. The primary natural gas line and MNR station are completed and awaiting final commissioning. Greensville is on schedule to achieve first fire in the second quarter and is expected to achieve commercial operations late this year. The upgrade of our electric transmission network continues. In 2017, we invested $806 million and placed $519 million of assets into service. We plan to invest $800 million on electric transmission business this year and every year for at least the next decade.

現在來更新一下我們的成長計畫。格林斯維爾縣 1,588 兆瓦聯合循環發電站的建設正在按時按預算進行。截至 12 月 31 日，這個耗資 13 億美元的計畫已完成 73%。所有主要設備均已設定完畢。主要天然氣管道和 MNR 站已完工並等待最終調試。格林斯維爾核電廠將按計劃於第二季度實現首次點火，並預計今年稍後將實現商業營運。我們的輸電網路升級仍在繼續。2017年，我們投資了8.06億美元，並將5.19億美元的資產投入使用。我們計劃今年以及至少未來十年每年在電力傳輸業務上投資 8 億美元。

Progress on our growth plan for Gas Infrastructure continues as well. Construction of our Cove Point Liquefaction project is complete, and we are in the final stages of commissioning. While commissioning has taken longer than we originally planned, we are progressing toward an in-service date in early March. This is an enormously complicated process, and we and our contractors are ensuring that all the work is done safely, thoroughly and correctly. We are currently in the process of cooling down to -- liquefying temperatures to make LNG [commence] with final tuning and testing phase. The actual production of LNG at the facility is imminent. Once commercial, our contracts become effective, and the project will produce the expected earnings we have previously discussed. However, as Mark mentioned, the absence of these earnings for the first 2 months of the year will offset some of the earnings benefits expected from lower income taxes. Nevertheless, we still expect 2018 earnings to be at least 10% above the midpoint of last year's guidance.

我們的天然氣基礎設施成長計畫也持續推進。我們的 Cove Point 液化項目建設已經完成，目前正處於調試的最後階段。雖然調試時間比我們原計劃的要長，但我們正在朝著 3 月初投入使用的目標前進。這是一個極其複雜的過程，我們和我們的承包商正在確保所有工作安全、徹底和正確地完成。我們目前正處於冷卻至液化溫度的過程中，以使液化天然氣進入最後的調整和測試階段。該設施即將開始實際生產液化天然氣。一旦商業化，我們的合約就會生效，專案將產生我們之前討論過的預期收益。然而，正如馬克所提到的，今年前兩個月這些收入的缺失將抵消降低所得稅預期帶來的部分收入收益。儘管如此，我們仍預期 2018 年獲利將比去年指引的中點高出至少 10%。

On January 19, FERC issued a limited notice to proceed for the Atlantic Coast Pipeline and the related Supply Header project, which allows us to begin felling trees. Tree-felling started for ACP in Virginia and West Virginia on January 20 and for the Supply Header on January 26. We are making excellent progress, particularly in the mountain areas. Last week, we received our final North Carolina 401 water quality permit as well as our final E&S permits from West Virginia. We expect all remaining major permits, including our Army Corps 404 and Virginia E&S permits, any day. These are the final major permits necessary to request FERC authorization to commence full construction. We remain on schedule for completion of the project in the second half of next year.

1 月 19 日，聯邦能源管理委員會發布了有限的通知，允許繼續進行大西洋海岸管道和相關的供應總管項目，這允許我們開始砍伐樹木。弗吉尼亞州和西弗吉尼亞州的 ACP 於 1 月 20 日開始在砍伐樹木，而 Supply Header 於 1 月 26 日開始在砍伐樹木。我們正在取得巨大進展，特別是在山區。上週，我們收到了北卡羅來納州 401 號水質許可證以及西維吉尼亞州的最終 E&S 許可證。我們預計所有剩餘的主要許可證，包括陸軍工程兵團 404 和維吉尼亞州 E&S 許可證，都將在近期發放。這些是向聯邦能源管理委員會申請授權開始全面建設所需的最後的主要許可證。我們預計將於明年下半年按計劃完成該項目。

It is noteworthy that during the cold weather earlier this month, power prices in Virginia and North Carolina increased substantially, surpassing the highest daily power price average in New England by 10% and underscoring the urgent need for increased regional gas transportation that the Atlantic Coast Pipeline and Supply Header project will provide.

值得注意的是，在本月初的寒冷天氣中，維吉尼亞州和北卡羅來納州的電價大幅上漲，比新英格蘭地區最高日電價平均值高出10%，凸顯了大西洋海岸管道和供應總管項目將提供的增加區域天然氣運輸的迫切需求。

Finally, a few comments on our offer to merge with SCANA Corporation. On January 3, we announced our agreement where Dominion would exchange 0.669 shares of its common stock for each SCANA share. Included in the offer was a proposal for up-front payments and ongoing bill reductions that would substantially reduce the cost to customers from the abandoned nuclear development project. We filed a regulatory proposal with South Carolina Public Service Commission on January 12. All of the other state regulatory filings and the application for Hart-Scott-Rodino clearance have been made. We expect to receive approval from SCANA's shareholders in May. We have participated in legislative hearings to explain our proposals to lawmakers who are considering possible changes to the South Carolina Base Load Review Act. We are optimistic that our proposal will be viewed favorably by lawmakers and regulators, and we will -- can complete the transaction later this year.

最後，就我們與 SCANA 公司合併的提議發表一些評論。1 月 3 日，我們宣布了一項協議，Dominion 將以 0.669 股普通股換取每股 SCANA 股票。該提案包括預付款和持續減少帳單的建議，這將大幅降低廢棄核子開發案對客戶帶來的成本。我們於 1 月 12 日向南卡羅來納州公共服務委員會提交了一份監管提案。所有其他州監管備案文件和 Hart-Scott-Rodino 審批申請均已提交。我們預計將於五月獲得 SCANA 股東的批准。我們參加了立法聽證會，向正在考慮對南卡羅來納州基本負荷審查法案進行可能修改的立法者解釋我們的提案。我們樂觀地認為，我們的提議將得到立法者和監管機構的青睞，並且我們將在今年稍後完成交易。

So to summarize, our businesses delivered record-setting operating safety performance in 2017. Construction of the Greensville County project is on time and on budget. Commissioning of Cove Point is continuing, and we expect it to be in service in early March. We received the limited notice to proceed for Atlantic Coast Pipeline and the Supply Header project and have begun tree-felling along the route. Other permits are expected any day. We expect earnings growth of at least 10% in 2018, driven by completion of the Cove Point Liquefaction project, and 6% to 8% growth from 2017 to 2020. Success in our efforts to merge with SCANA could increase our growth rate to 8-plus percent. Because of our unique MLP structure, our superior cash flows will also allow a dividend growth rate at Dominion Energy of 10% per year through at least 2020. And finally, the programmatic investment plans across all of our business units we highlighted last call provide the foundation for earnings growth of at least 5% well into the next decade.

總而言之，我們的企業在 2017 年實現了創紀錄的營運安全績效。格林斯維爾縣計畫的建設按時按預算進行。Cove Point 的調試工作仍在繼續，我們預計它將於 3 月初投入使用。我們收到了繼續進行大西洋海岸管道和供應總管項目的有限通知，並已開始沿途砍伐樹木。預計其他許可證將隨時發放。我們預計，受 Cove Point Liquefaction 專案完工的推動，2018 年獲利將成長至少 10%，2017 年至 2020 年獲利將成長 6% 至 8%。如果我們與 SCANA 合併成功，成長率將提高到 8% 以上。由於我們獨特的 MLP 結構，我們優越的現金流也將使 Dominion Energy 的股息成長率至少在 2020 年達到每年 10%。最後，我們上次強調的所有業務部門的計畫投資計畫為未來十年至少 5% 的獲利成長奠定了基礎。

With that, we will be happy to take your questions.

我們將很樂意回答您的問題。

(Operator Instructions) The first question will come from Greg Gordon with Evercore ISI.

（操作員指示）第一個問題來自 Evercore ISI 的 Greg Gordon。

Notwithstanding just the very short delay that you've got on Cove Point, when I think about the structural benefits of tax reform, the $0.10 to $0.15, because, obviously, being delayed a few months at Cove Point is just -- a few months doesn't really matter in the long run. Is it fair to think about the steps you've taken in terms of issuing the $500 million of equity and reducing the CapEx budget by $1 billion and bringing -- starting the $800 million of targeted debt reduction at the parent early, like all those things are sort of -- you're taking the earnings benefit of tax reform and utilizing that to get a jump-start on the deleveraging goals? So in other words, like your earnings targets are still on track because you were able to take the benefits of tax reform and use them to get a jump on the deleveraging that you've articulated you're looking to achieve. Is that the right way to think about this? Or am I not thinking about it correctly?

儘管在 Cove Point 問題上只存在很短的延遲，但當我想到稅收改革的結構性好處時，就會發現這 0.10 美元到 0.15 美元的延遲，因為顯然，在 Cove Point 問題上延遲幾個月只是——從長遠來看，幾個月並不重要。您是否公平地考慮過您所採取的措施，例如發行 5 億美元的股權、削減 10 億美元的資本支出預算以及提前開始削減母公司 8 億美元的債務目標，所有這些措施都是 - 您是否正在利用稅收改革帶來的收益並利用它來啟動去槓桿目標？換句話說，您的獲利目標仍然在正軌上，因為您能夠享受稅收改革帶來的好處，並利用它們來實現您所表達的想要實現的去槓桿化。這是正確的思考方式嗎？還是我的想法不正確？

Greg, this is Mark. I think you're right on track there. A large piece of that we're using to go ahead and aggressively support credit. One reason we went ahead and issued equity at the market in January, knowing what our position was going to be even with a slight delay in Cove. So we did take advantage of that, and we are committed to the ratings that we have. We will take the steps necessary to support that, and we took advantage of taxes to get a jump-start.

格雷格，這是馬克。我認為你的說法是正確的。我們將利用其中很大一部分資金來大力支持信貸。我們之所以在一月繼續在市場上發行股票，是因為我們知道，即使 Cove 稍微延遲，我們的處境也不會改變。因此，我們確實利用了這一點，並且我們致力於保持現有的收視率。我們將採取必要措施來支持這一目標，並且我們利用稅收來推動這一目標的實現。

Great. I just wanted to make sure I understood that, that was sort of what you were doing. Other than that, I actually don't have any other questions.

偉大的。我只是想確保我理解了這一點，這就是你正在做的事情。除此之外，我實際上沒有其他問題。

The next question will come from Julien Dumoulin-Smith with Bank of America Merrill Lynch.

下一個問題來自美銀美林的 Julien Dumoulin-Smith。

So a quick clarification, actually. Just given the conversations with Moody's and other agencies of late, just to the extent at which you've updated your plan at present, does this put you in a position to get back on track and remove some of these outlooks? I mean, obviously, you probably have added some of the conversations you've shared with us this morning. Is this more of a question of timing and execution to get your FFO-to-debt metrics in a place that is consistent with the agencies for your current rating? Is that the right way to think about that at this point? And maybe you could even share just a little bit on how you see the FFO-to-debt profile off the load here progressing.

實際上，這是一個快速澄清。鑑於最近與穆迪和其他機構的對話，就您目前更新的計劃而言，這是否可以讓您回到正軌並消除其中的一些展望？我的意思是，顯然，您可能已經添加了今天早上與我們分享的一些對話。這是否更多的是一個時間和執行的問題，以使您的 FFO 與債務比率指標與各機構對您當前評級的結果保持一致？現在這樣思考是否正確？或許您甚至可以稍微分享一下您如何看待這裡的 FFO 與債務狀況的進展。

Julien, this is Mark. We have shared with the agency our plans. And this is obviously an industry-wide issue for regulated utilities in terms of FFO pressure because of tax reform. We think this gives us a very strong start to support our FFO metrics going forward, but there's probably more work to be done in the future. The approach, I think -- we believe the agency is going to take are -- for all the companies that are impacted by the FFO is to make sure they can execute the plans that they outline for the agencies and for investors, and that's what we're committed to do, to get our FFO metrics where all the agencies are comfortable with them and very strong investment grade. That's our commitment and will remain our commitment.

朱利安，這是馬克。我們已經與該機構分享了我們的計劃。對於受監管的公用事業公司來說，由於稅制改革而產生的 FFO 壓力顯然是一個全行業問題。我們認為這為我們未來的 FFO 指標提供了非常強勁的開端，但未來可能還有更多工作要做。我認為——我們相信該機構將採取的方法是——對於所有受到 FFO 影響的公司，確保他們能夠執行他們為機構和投資者概述的計劃，這就是我們致力於做的事情，讓我們的 FFO 指標讓所有機構都滿意，並獲得非常強勁的投資級別。這是我們的承諾，並將繼續如此。

Got it. And then I want to just come back to earnings growth. Obviously, you've got a number of moving pieces in the update, not least of which is the $0.10 to $0.15 tax reform. I know you, in the key takeaways, reaffirm this 8% plus trajectory, but can you talk about ex SCANA, just how this might shift your standalone prospects for the earnings outlook, if it does at all?

知道了。然後我想回到獲利成長的話題。顯然，更新中有許多變動，其中最重要的是 0.10 美元到 0.15 美元的稅收改革。我知道您在關鍵要點中重申了這一 8% 以上的軌跡，但您能否談談除 SCANA 之外的情況，如果確實如此，這可能會如何改變您對盈利前景的獨立預測？

Well, Julien, I hope we've been clear on that [net] debt. Our 2017, 2020 growth rate is 6% to 8% without SCANA on a compound annual rate. And I think as Tom mentioned, 5-plus percent post 2020. If we are successful in the SCANA transaction, that growth rate from '17 to '20 could move to 8-plus percent. So with or without SCANA, we're in terrific position with one of the best growth rates, we believe, in the industry and one of the highest dividend growth rates as well. But certainly, SCANA would be a positive result for us.

好吧，朱利安，我希望我們已經清楚了解那筆（淨）債務。在不包括 SCANA 的情況下，我們 2017 年和 2020 年的複合年增長率分別為 6% 至 8%。我認為正如湯姆所提到的，2020 年後這一比例將超過 5%。如果我們在 SCANA 交易中取得成功，那麼從 2017 年到 2020 年的成長率可能會升至 8% 以上。因此，無論有沒有 SCANA，我們都處於非常有利的地位，我們相信，我們是業內成長率最高的公司之一，也是股息成長率最高的公司之一。但毫無疑問，SCANA 對我們來說是一個正面的結果。

The next question will come from Steve Fleishman with Wolfe Research.

下一個問題來自 Wolfe Research 的 Steve Fleishman。

Same question in a different way. Assuming that $0.10 to $0.15 net benefit continued through 2020, why wouldn't you be a little bit higher in your 6% to 8% growth? Or does that $0.10 to $0.15 change over the period?

以不同的方式提出相同的問題。假設 0.10 美元到 0.15 美元的淨收益持續到 2020 年，那麼 6% 到 8% 的成長率為什麼不更高一點呢？或者說，這個 0.10 美元到 0.15 美元的金額會隨著時間而改變嗎？

I think -- Steve, I think it's going to change a little bit over the period. But again, I think the 6% to 8% range we feel real comfortable with. And there's a lot of moving parts on tax reform still in terms of how states might handle it, how FERC might handle it and the timing of the cash impacts on that. So we've made our best assumptions here, and we think that 6% to 8% is the right range without SCANA. Could it move us up a little bit? It's possible. I don't think it will move us down at all. But I think taxes could move around a little bit post '18.

我認為——史蒂夫，我認為在這段時間內情況會發生一些變化。但我再次認為，6% 到 8% 的範圍讓我們感覺比較舒服。稅收改革仍有許多不確定因素，包括各州如何處理、聯邦能源管理委員會如何處理以及現金對稅收改革的影響時間。因此，我們在這裡做出了最好的假設，我們認為在沒有 SCANA 的情況下 6% 到 8% 是正確的範圍。它能讓我們進步一點嗎？這是有可能的。我認為這根本不會讓我們失望。但我認為 2018 年以後稅收可能會略有變化。

Okay. And then just to clarify, could you remind us if you are including any Millstone kind of benefits of the potential contract there or not in your plan?

好的。然後只是為了澄清一下，您能否提醒我們，您的計劃中是否包括了潛在合約中的任何 Millstone 類型的好處？

We are not. Again, our range -- that could move us within our range, depending on the success at Millstone. We do not put a specific number in when we came out with our 6% to 8% growth range prior to the Millstone legislative work.

我們不是。再次，我們的範圍——這可能會讓我們在我們的範圍內移動，這取決於 Millstone 的成功。在 Millstone 立法工作之前，我們提出 6% 到 8% 的成長範圍時，並沒有給出具體的數字。

Okay. Could you maybe also just talk a little bit about the Virginia legislation that was recently proposed? And what's Dominion's view on that and potential impacts?

好的。您能否也簡單談談最近提出的維吉尼亞州立法？那麼 Dominion 對此有何看法以及其潛在影響為何？

This is Tom. There's a comprehensive piece of legislation that has been developed by a variety of leaders in the General Assembly, both in the Senate and the House, that deals with lots of issues in the state energy policy. It's moving through. Virginia moves legislation through in a very rapid pace normally, and I don't think this will be an exception. They have to adjourn by the end of the first week in March. So we are working with a variety of stakeholders on it. We think there's some very good things in it. There's some things that we'll have to accommodate ourselves to. But overall, we think it's a constructive piece of legislation for our state and our customers.

這是湯姆。參議院和眾議院的多位領導人制定了一項全面的立法，處理了國家能源政策中的許多問題。它正在移動。維吉尼亞州通常以非常快的速度通過立法，我認為這也不會例外。他們必須在三月第一週結束前休會。因此，我們正在與各種利害關係人合作。我們認為其中有一些非常好的東西。有些事情我們必須適應。但總的來說，我們認為這對我們的州和我們的客戶來說是一項建設性的立法。

The next question will come from Michael Weinstein with Crédit Suisse.

下一個問題來自瑞士信貸的麥可溫斯坦。

I was wondering if maybe you could just discuss some of the opportunities that you see from the legislation for both investors and end customers. I know in the past, we've talked about grid mod and riders and some other possible benefits.

我想知道您是否可以討論您從該立法中看到的為投資者和最終客戶帶來的一些機會。我知道過去我們討論過網格模式和騎手以及其他一些可能的好處。

I don't -- I think it's premature to talk about it. It's still lots of work to be done on it. Maybe a little bit later when we see the final product. Committee hearings will be coming up in the next couple of weeks, and we'll see how it goes from here. And we'll be in a position to talk about it, I think more thoroughly, on the next call.

我不認為——我認為現在談論這個還為時過早。這方面還有很多工作要做。也許稍後我們就能看到最終產品。委員會聽證會將在未來幾週內舉行，我們將拭目以待後續進展。我認為，下次通話時我們將更深入地討論這個問題。

Okay. And on Dominion Midstream, in the past, you used to talk about $7 billion to $8 billion of cash from 2016 to 2020. Is there any update for that as well post tax reform?

好的。關於 Dominion Midstream，您過去曾談到 2016 年至 2020 年期間的 70 億至 80 億美元現金。稅改後這方面還有進展嗎？

No update on that, Michael. We still expect that cash to come back to Dominion, and that is one of the main levers we're going to have to delever the parent. That story has been consistent in terms of the drop of Cove Point into Dominion Midstream and the benefits back to Dominion shareholders since day 1. And we fully expect to execute on that beginning in -- in this year.

目前還沒有更新，麥可。我們仍然希望這筆現金能夠回到 Dominion，這是我們降低母公司槓桿率的主要手段之一。從第一天起，Cove Point 就併入 Dominion Midstream，並為 Dominion 股東帶來利益，這一故事就一直延續至今。我們完全有信心從今年開始執行這個目標。

And just one last question on -- in New England, can you talk about whether you would -- whether you plan to bid in the forward capacity auction Millstone? Or is that dependent on the outcome on February 1 of the review?

最後一個問題——在新英格蘭，您能否談談您是否計劃參加 Millstone 遠期容量拍賣？或者這取決於 2 月 1 日的審查結果？

Go ahead, Paul.

繼續吧，保羅。

Michael, this is Paul Koonce. We are not prepared to discuss what we're going to bid. I mean, that's obviously competitively sensitive. We are working very well with both DEEP and PURA to kind of get through that process. They're going to issue their final report, as Tom said, later this week. That will, we believe, lead to an RFP being issued in the May time frame. And so we'll be working with DEEP and PURA between the final report and May to understand the structure of a bid, and then we will submit our bid as any others.

邁克爾，這是保羅·庫恩斯。我們還沒有準備好討論我們將要競標什麼。我的意思是，這顯然具有競爭敏感性。我們與 DEEP 和 PURA 合作非常順利，以完成這項進程。正如湯姆所說，他們將在本週晚些時候發布最終報告。我們相信，這將導致在五月發布 RFP。因此，我們將在最終報告和 5 月期間與 DEEP 和 PURA 合作，以了解投標的結構，然後我們將像其他投標一樣提交我們的投標。

The next question will come from Angie Storozynski with Macquarie Group.

下一個問題來自麥格理集團的 Angie Storozynski。

So my question is -- okay, so the $1 billion reduction in your CapEx doesn't impact your growth CapEx. So what is this, is this maintenance CapEx that is getting reduced?

所以我的問題是——好的，那麼減少 10 億美元的資本支出不會影響您的成長資本支出。那麼這是什麼？這是正在減少的維護資本支出嗎？

This is Mark. It's going to be a number of things. The largest component of that $1 billion is associated with an announcement we've made recently to go ahead and put 9 of our generating facilities in Virginia into cold storage based on current market economics. The timing of that over the next 12 months or so would have required a lot of maintenance at all those units. And that will be a large portion of the reduction. But there will also be reductions in other noncore maintenance activities over the next couple of years to come up with the $1 billion over the 2-year period. But we have very good line of sight on that.

這是馬克。這將會是很多事情。這 10 億美元中最大的部分與我們最近宣布的一項計劃有關，該計劃將根據當前的市場經濟狀況，將我們在維吉尼亞州的 9 個發電設施轉移到冷藏狀態。在接下來的 12 個月左右的時間內，所有這些單位都需要進行大量維護。這將是減少的很大一部分。但未來幾年內，其他非核心維護活動的資金也將減少，以便在兩年內達到 10 億美元的目標。但我們對此有很好的認識。

Okay. Second question, on the credit negative outlook -- credit outlook and -- okay, so the negative outlook was issued in January. And if I understand correctly, the credit agencies were already aware of the equity financing and the lower CapEx that you were proposing. Does it mean that you need to step up some of the credit improvement initiatives, i.e., do I need to account for more equity come '19 and '20?

好的。第二個問題，關於信用負面展望——信用展望和——好的，負面展望是在一月發布的。如果我理解正確的話，信貸機構已經知道您提議的股權融資和較低的資本支出。這是否意味著您需要加強一些信用改善舉措，即我是否需要在 2019 年和 2020 年考慮更多的股權？

Angie, when we shared with the agencies our plans over the next 3 years, it was associated with the SCANA transaction. And we had not adjusted for the equity that we've talked about today or the $1 billion adjustment. They were not advised of that until very recently, and that was a decision that we made internally here to make sure that we are focused on the metrics, they know we're focused on the metrics and are making quick headway to improve that based on the tax reform impact. So they weren't in the original numbers, and we think this is a big step forward as we go ahead and complete a SCANA transaction.

安吉，當我們與各機構分享未來 3 年的計劃時，它與 SCANA 交易有關。我們還沒有針對今天談到的股權或 10 億美元的調整進行調整。直到最近他們才被告知這一點，這是我們內部做出的決定，以確保我們專注於指標，他們知道我們專注於指標，並正在根據稅收改革的影響迅速取得進展以改善這一點。所以它們不在原始數字中，我們認為這是我們繼續前進並完成 SCANA 交易的一大進步。

Our final question will come from Stephen Byrd with Morgan Stanley.

我們的最後一個問題來自摩根士丹利的史蒂芬伯德。

I just wanted to check in on the overall goals in terms of leverage. You've given a lot of helpful commentary this morning around targeted credit metrics. But just -- you had mentioned in the past the desire to reduce the holdco debt as a percentage of total debt, moving from 50% down to lower level by the end of the decade, I believe 30% to 40%. Is that still what we should be thinking in terms of how you think about your total holdco leverage?

我只是想檢查一下槓桿方面的整體目標。今天上午，您就目標信貸指標給出了許多有益的評論。但是—您過去曾提到希望將控股公司債務佔總債務的百分比降低，到本世紀末從 50% 降至更低水平，我認為是 30% 到 40%。就您對總控股公司槓桿率的看法而言，我們是否仍然應該這麼想？

Yes, you should. That's the same range. We may get there a little quicker through some of the changes that we talked about today, but that is the range we are targeting by 2020, 30% to 40% at the holdco as a percentage of total family debt.

是的，你應該。這是相同的範圍。透過我們今天談到的一些變化，我們可能會更快地實現這一目標，但這是我們到 2020 年的目標範圍，即控股公司佔家庭總債務的比例為 30% 至 40%。

Okay. Great. And then shifting, this is I know a little broader and off the beaten path, but couldn't help but notice the Amazon short list of locations, 3 of them are in or near your territories. Have you all thought through what might be required in terms of infrastructure if one of those selections took place? Is this something that could be material in terms of infrastructure? Or is it more likely you can broadly utilize the existing infrastructure that you have?

好的。偉大的。然後轉移，這是我所知道的一條更廣闊、更偏僻的道路，但我忍不住注意到亞馬遜的簡短地點列表，其中 3 個位於您的領土內或附近。你們是否都考慮過，如果進行其中一個選擇，在基礎設施方面可能需要什麼？這對於基礎設施來說是否具有實質意義？或者更有可能的是，您可以廣泛利用現有的基礎設施？

Well, there's talking about a lot of jobs and a lot of -- that means a lot of homes and residences and businesses that spin off of that 50,000 jobs over a decade, I think, and obviously, depending upon where it is they want mass transportation. You're referring, I'm sure -- what you're referring to, I think, obviously, is the District of Columbia, suburban Maryland and suburban Virginia, where all suburbs of Washington were all included on that shortlist. There will be a lot to deal with over a decade, and we're hopeful that they see the wisdom of coming to the right state.

嗯，我們談論的是大量的工作機會和大量的——這意味著大量的家庭、住宅和企業將在十年內衍生出 50,000 個工作崗位，我想，顯然，這取決於他們想要在哪裡建設公共交通。我確信您指的是——我認為您指的是哥倫比亞特區、馬裡蘭州郊區和維吉尼亞州郊區，華盛頓的所有郊區都在候選名單上。未來十年將會有許多事情需要處理，我們希望他們能明智地選擇正確的道路。

Thank you. This does conclude this morning's conference call. You may disconnect your lines, and enjoy your day.

謝謝。今天上午的電話會議到此結束。您可以斷開線路並享受這一天。