Dominion Midstream Partners LP (NYSE:DM) Q3 2018 Earnings Conference Call Transcript

Nov 05, 2018 • 10:00 am ET

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Dominion Midstream Partners LP (NYSE:DM) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, and welcome to the Dominion Energy and Dominion Energy Midstream Partners Third Quarter Earnings Conference Call. (Operator Instructions)

I would now like to turn the call over to Steven Ridge, Director of Investor Relations, for the safe harbor statement.

Executive
Steven D. Ridge

Good morning, and welcome to the Third Quarter 2018 Earnings Conference Call for Dominion Energy and Dominion Energy Midstream Partners.

I encourage you to visit the Investor Relations page on our website to view the earnings press releases and accompanying materials as well as the slide presentation that will follow this morning's prepared remarks. Schedules in the earnings release kit are intended to answer detailed questions pertaining to operating statistics and accounting, and the Investor Relations team will be available immediately after the call to answer additional questions. The earnings releases and other matters that will be disclosed -- 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. Also on this call, we will discuss some measures 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 which we are able to calculate and report are contained in the earnings press release kit and the Dominion Energy Midstream Partners press release.

For our prepared remarks, Jim Chapman, Chief Financial Officer, will provide financial updates, including quarterly earnings results; Tom Farrell, Chairman, President and Chief Executive Officer, will review safety and operating performance, highlight progress on growth initiatives and provide other updates.

I'll now turn the call over to Jim Chapman.

Executive
James R. Chapman

Good morning. Dominion Energy reported operating earnings of $1.15 per share for the third quarter of 2018, which was at the top of our guidance range. Drivers relative to our guidance including include lower operating and maintenance expense, higher margins at our Power Generation Group and better than normal weather. GAAP earnings were $1.30 per share for the quarter. The principal difference between GAAP and operating earnings is a gain on nuclear decommissioning trust funds. A reconciliation of operating earnings to reported earnings can be found on Schedule 2 of the earnings release kit.

Moving to results by business segment. EBITDA for the Power Generation Group was $820 million in the third quarter, at the top end of its guidance range. Lower operating and maintenance expense, higher margins and favorable weather contributed to the out-performance. The Power Delivery Group produced EBITDA of $434 million, which was near the midpoint of the guidance range. And the Gas Infrastructure Group produced third quarter EBITDA of $598 million, which was in the top half of its guidance range. Lower operating and maintenance expense was the primary driver for that out-performance.

Overall, we're pleased with another quarter of very strong