(solution) Performing Financial Analysis Write a 750 to 1000 word paper. In

(solution) Performing Financial Analysis Write a 750 to 1000 word paper. In

Performing Financial Analysis

Write a 750 to 1000 word paper. In your paper include the following:

Obtain the annual package (financial statements) for Dominion Virginia Power. Look up (or calculate) key financial ratios and perform a brief analysis of the organization?s performance.

Be sure to include at least two ratios in each ratio category: liquidity, profitability, and solvency. Explain what each ratio means and what the ratio tells you about your organization?s performance in the most recent period.

Include a title page and 3-5 references.Please adhere to the Publication Manual of the American Psychological Association (APA), (6th ed., 2nd printing when writing and submitting assignments and papers.

EXECUTING TO MEET
CUSTOMER NEEDS…
Dominion Resources, Inc.
2015 Summary Annual Report GROWING
DEMAND… CONTENTS
COMPANY PROFILE CEO LETTER IFC
9 CONSOLIDATED
FINANCIAL HIGHLIGHTS 15 DOMINION PERFORMANCE CHARTS 16 DOMINION AT A GLANCE 18 OPERATING AND SERVICE AREAS 20 GAAP RECONCILIATIONS 22 DIRECTORS AND OFFICERS 23 SHAREHOLDER INFORMATION 24 Headquartered in Richmond, Va., Dominion
(NYSE: D) is one of the nation?s largest
producers and transporters of energy, with a
portfolio of approximately 24,300 megawatts
of electric generation, 34,200 miles of natural
gas transmission, distribution, gathering and
storage pipeline and 63,800 miles of electric
transmission and distribution lines. The company
operates one of the largest natural gas storage
systems in the U.S. with 933 billion cubic feet
of capacity, and serves about 5 million utility
and retail energy customers in 14 states. For
more information about Dominion, visit the
company?s website at www.dom.com.*
*All numbers are as of March 1, 2016.
Our statements about the future are subject to
various risks and uncertainties. For factors that
could cause actual results to differ from expected
results, see Item 1A. Risk Factors, Forward-Looking
Statements in Item 7. Management?s Discussion
and Analysis of Financial Condition and Results
of Operations, and Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our
Annual Report on Form 10-K for the year ended
Dec. 31, 2015.
Shareholders receiving this Summary Annual
Report in connection with our 2016 Annual
Meeting of Shareholders should read it
together with our Annual Report on Form 10-K
for the year ended Dec. 31, 2015. This Summary
Annual Report includes only ?nancial and
operating highlights and should not be
considered a substitute for our full ?nancial
statements, inclusive of footnotes, and
Management?s Discussion and Analysis of
Financial Condition and Results of Operations,
included in our 2015 Annual Report on Form
10-K. For such shareholders, a copy of our
2015 Annual Report on Form 10-K, including
the full ?nancial statements, accompanies
this Summary Annual Report and may also be
obtained free of charge through our website
at www.dom.com/investors or by writing to
our Corporate Secretary at P.O. Box 26532,
Richmond, Virginia 23261??6532. OVER THE NEXT FIVE YEARS, YOUR
COMPANY PLANS TO SPEND NEARLY
$16 BILLION ON GROWTH PROJECTS
TO MEET OUR CUSTOMERS? NEEDS.
We are investing in an array of clean energy infrastructure,
including natural gas and solar generation and pipelines
serving utilities???such as Dominion Virginia Power???that
are building low-carbon, low-cost natural gas generation
to meet future demand and comply with strict federal and
state air standards. EXECUTING
ON TODAY?S
GROWTH PLAN ?3.6B
CUBIC FEE T PER DAY OF
ADDITIONAL PIPELINE CAPACIT Y
EXPECTED, 2016?2020 ?$1.06B
IN NEW ELECTRIC TRANSMISSION
ASSE TS IN 2015 NATURAL GAS
INFRASTRUCTURE
As utilities develop compliance
strategies for the U.S. Environmental
Protection Agency?s (EPA?s) proposed
Clean Power Plan, natural gas likely will
replace coal as the fossil fuel of choice
to generate electricity, and serve as a
backup source to intermittent renewable
generation. Those utilities will need
greater access to natural gas supplies. Our gas infrastructure buildout plan
is expected to increase natural gas 2 MOUNT STORM TO DOUBS
500 KV REBUILD
transportation and reliability by 3.6 billion
cubic feet per day. These projects,
including the Atlantic Coast Pipeline,
represent more than $6 billion in investments from Dominion and its partners. Dominion is investing in new
pipelines, compressor stations and
storage to meet the needs of our
customers???whether those customers
are gas producers, power producers or
end-use gas or electric utilities. In mid-2014, Dominion Virginia Power
completed a three-year rebuild of the
Mount Storm to Doubs 500-kilovolt
transmission line. The $336 million
project increased capacity by two-thirds
in the transmission corridor serving
fast-growing Northern Virginia. Over the
next five years, your company plans to
spend about $700 million per year to
strengthen and improve our electric
transmission network. DOMINION RESOURCES 2015 SUMMARY ANNUAL REPORT WARREN COUNTY
POWER STATION
In 2014, the $1.1 billion Warren County
Power Station, located in the northwestern part of Virginia, began commercial
operations. It serves 335,000 Dominion
Virginia Power customers nearly
around-the-clock with three highly
efficient natural gas turbines and a steam
turbine that captures exhaust heat. Warren County is one of three large
natural gas-fired facilities either constructed, under construction or planned
in Virginia to meet our customers? needs. DOMINION RESOURCES ELECTRIC
RELIABILITY The $1.2 billion Brunswick County
Power Station is nearing completion in
southeastern Virginia. The plant is
expected to provide electricity to nearly
340,000 customers beginning in 2016. The proposed Greensville
County Power Station, a $1.3 billion
gas-fired generation facility with
enough anticipated output to serve
about 400,000 Virginia homes and
businesses, is planned to begin
operations in late 2018. 2015 SUMMARY ANNUAL REPORT Since 2007, Dominion Virginia Power has
spent more than $6 billion on electric
transmission and distribution growth
and reliability projects in Virginia alone. And reliability has improved. Excluding
major storms, our average customer
was without power 119.6 minutes in 2015,
down from 155.8 minutes in 2006. 3 COVE POINT LIQUEFACTION
The Cove Point liquefaction project,
expected to cost $3.4 billion to
$3.8 billion, ranks as one of the largest
projects Dominion has ever constructed. Dominion acquired Cove Point,
then an import gas terminal, in 2002,
and later expanded the facility?s pier
and storage capabilities. The current project will allow your
company to ?liquefy? natural gas???
that is, cool the gas to extreme low 4 ATLANTIC COAST PIPELINE
temperatures???and transport it to
tankers for export. We have long-term, take-or-pay
contracts with creditworthy Indian and
Japanese companies seeking access to
low-cost American gas supplies in order
to meet their customers? energy demands. Nearly 1,600 workers and all major
equipment are on site. The liquefaction
capabilities are expected to commence???
on time and on budget???in late 2017. The Atlantic Coast Pipeline has been
proposed to increase access to natural gas
supplies for a host of electric and gas
utilities in the mid-Atlantic and Southeast,
including Dominion Virginia Power. Dominion is a partner in the $4.5 billion
to $5 billion project that would move
1.5 billion cubic feet of gas per day into
Virginia and North Carolina. DOMINION RESOURCES 2015 SUMMARY ANNUAL REPORT EXECUTING FOR
A BRIGHTER
TOMORROW BRUNSWICK COUNTY POWER STATION
To help meet future electricity needs in
Virginia, aid in the form of the Brunswick
County Power Station is on its way. The highly efficient, cost-effective
facility is expected to provide electricity
to Dominion Virginia Power residential,
commercial and industrial customers
near an area where other fossil-fired
plants are shutting down to comply
with federal air standards. Dominion DOMINION RESOURCES anticipates Brunswick County to have
a low carbon-intensity rate. Scheduled to come online in mid-2016,
the Brunswick generating station will
be the largest taxpayer in the Southside
Virginia county, providing additional
resources for essential public services.
And it will contribute to the local economy
by providing well-paying jobs. 2015 SUMMARY ANNUAL REPORT ?340,000
CUSTOMERS TO BE SERVED BY
BRUNSWICK COUNT Y POWER STATION ?400MW
ESTIMATED SOL AR CAPACIT Y TO BE
INSTALLED IN VIRGINIA, 2016?2020 POWER FROM THE SUN
Over the past few years, Dominion has
built or is building solar electric generating
facilities in several states under long-term
contracts with local public utilities. Your
company has turned its attention to
utility-scale solar serving our utility customers at Dominion Virginia Power. In Virginia,
we plan to harness the power of the sun
by deploying 400 megawatts of solar
generation capacity through company
investments and long-term power
purchase agreements. 5 2015 EXECUTING ON OUR
FUTURE STRATEGY 2016 2017 DOMINION VIRGINIA POWER
Dooms to Lexington 500 kV Rebuild Dominion intends to spend nearly $16 billion
through 2020 to improve service reliability
and meet our customers? energy needs. Ashburn 230 kV Line Mosby to Brambleton 2nd 500 kV Line
Skiffes Creek 500 kV Line
Cunningham to Elmont 500 kV Rebuild
Warrenton 230 kV Line
Haymarket 230 kV Line Remington to Gordonsville 230 kV Line
Idylwood Substation Rebuild
Physical Security Electric transmission lines (left), solar generating facilities (top right) and natural gas
pipelines (bottom right) are three types of energy infrastructure Dominion is building
to keep pace with growing demand in a safe, reliable, efficient and environmentally
responsible manner. DOMINION ENERGY
Western Access II $15.7B TOTAL INFRASTRUCTURE INVESTMENTS: Lebanon West II Dollars in Billions / Cumulative Planned Growth
Capital Expenditures 2016?2020* New Market
Leidy South
Atlantic Coast Pipeline & Supply Header
Other Pipeline Growth Projects
Cove Point Liquefaction $6.1B $4.1B $4.1B DOMINION GENERATION DOMINION ENERGY** $1.2?1.6B
6 DOMINION VIRGINIA POWER COVE POINT*** Transco to Charleston Pipeline Replacement Projects (DEO & DH)* * All planned
expenditures are
preliminary and
may be subject to
regulatory and/or
Board of Directors
approvals. DOMINION GENERATION
Solar Projects
Brunswick County Combined Cycle Facility ** Includes Dominion?s
portion of the
projected cost of the
Atlantic Coast Pipeline
but excludes joint
venture financing. Greensville County Combined Cycle Facility
Offshore Wind Demonstration Project
* DEO???Dominion East Ohio;
and DH???Dominion Hope *** Excludes financing
costs. DOMINION RESOURCES 2015 SUMMARY ANNUAL REPORT 2018 2019 2020 2021 Cunningham to Dooms 500 kV Rebuild Mount Storm to Dooms 500 kV Rebuild 230 kV End of Life Rebuilds DOMINION RESOURCES 2015 SUMMARY ANNUAL REPORT 7 THOMAS F. FARRELL II
CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER 8 DOMINION RESOURCES 2015 SUMMARY ANNUAL REPORT DEAR INVESTORS: HOW HAVE YOU IMPROVED THE VALUE
OF MY INVESTMENT? THAT IS A
QUESTION OFTEN ASKED OF PUBLICLY
TRADED COMPANIES? EXECUTIVES.
More often than not the answer lies in
market returns, dividends and earnings.
After all, they produce the most tangible
evidence of your investment. Good news first: Dominion paid
$2.59 per share in dividends in 2015. That
marked an 8 percent increase over 2014?s
dividend rate of $2.40 per share. And,
subject to quarterly determination and
declaration by the Board of Directors, we
expect to return $2.80 per share to you
in 2016 in the form of cash dividends. Now the not-so-good news. We
cannot control the weather, interest rates
and commodity and stock market prices.
In 2015, the markets tested many companies, particularly energy companies.
CHALLENGING MARKETS, LOWER RETURNS
Oil and natural gas prices fell sharply
throughout the year and, although the
winter produced polar plunges, weather
in the latter half of the year, proved
overwhelmingly mild. Predictions from
the Federal Reserve of key interest rate
hikes came and went???and came again,
resulting in December?s quarter-point
rise, a move that often depresses
high-dividend-yielding utility stocks
such as ours. In light of that broader market
backdrop, Dominion fell short of its
2015 operating earnings targets.
Lower-than-expected commodity prices, milder-than-normal weather and
lagging economic indicators in several
states we serve were the key drivers of 2015
operating earnings of $3.44 per share, up
only 1 cent per share from 2014.1 Earnings
under Generally Accepted Accounting
Principles (GAAP) came in at $3.20 per
share, up from $2.24 per share in 2014. These factors also combined to
produce a total return of -8.7 percent
in 2015. Please see the Total Return
Comparison chart on page 16 for
more information. Yet longtime investors know the value
of our company is measured by more
than short-term market returns and
earnings. It is valued on how we manage
those things we can control. They include how we allocate capital,
the quality of service our people provide,
and our commitments to our stakeholders
and the communities we serve, as well as
how we comply with, and often exceed,
state and federal standards. In those ways, we improved your
investment in 2015.
YOUR INVESTMENT IN ACTION
As an owner of Dominion, you benefit
from our diverse energy holdings. We
own an electric utility serving 2.5 million
customer accounts in Virginia and
northeast North Carolina and two natural
gas utilities with more than 1.3 million customer accounts in Ohio and West
Virginia. We operate a merchant generation portfolio with nuclear, solar, natural
gas, wind and fuel cell facilities in nine
states. And we have natural gas infrastructure assets located principally in
the Appalachian Basin, with gathering,
processing, fractionation, storage,
transmission and liquefied natural gas
capabilities in eight states. In 2015, officers and directors from our
peer companies and financial analysts
who follow our industry ranked Dominion
No. 1 among Fortune?s ?Most Admired?
electric and gas utilities. The reasons for
that distinction include how we operate
and maintain our assets, invest and
allocate owner capital, and enhance our
culture of safety and service. Nearly a decade ago, Dominion
began implementing a massive capital
expenditures plan to build and maintain
the necessary energy infrastructure to
meet our customers? needs. Since then
we have spent well more than $20 billion,
with exceptional results. We have delivered: Better reliability for customers, stable
customer rates, cleaner air, reduced
carbon emissions, more utility electric
generation capacity, upgraded and
newly built electric transmission and
distribution lines, and expanded pipeline
capacity on our network of interstate
transmission pipelines. 1 Based on non-GAAP Financial Measures.
See page 22 for GAAP Reconciliations. DOMINION RESOURCES 2015 SUMMARY ANNUAL REPORT 9 OUR SOLAR STRATEGY EXPECTED ADDITION BRINGS
SIGNIFICANT VALUE
To improve on this diversity of holdings
and expand operations outside the
Eastern U.S., on Feb. 1, 2016, Dominion
announced that it expects to combine
with Salt Lake City-based Questar
Corporation by year-end.2 We believe this
combination would provide significant
long-term value to our company and to
you, our shareholders. We plan to pay Questar shareholders
$25 per share???or about $4.4 billion???
and assume its $1.6 billion debt obligation. Dominion expects the transaction
to be accretive upon closing, support our
2017 earnings growth rate, and allow us
to reach the top of or exceed our 2018
growth targets. Questar is an integrated natural gas
company with a growing gas distribution
utility, a gas supply company that has
saved its utility customers more than
$1 billion over 35 years under a cost-ofservice arrangement, and a gas transmission pipeline network with growth
opportunities stemming from a potential
regional need for additional natural gas
infrastructure. Questar is also a company that does
things the right way. It is a values-driven
organization committed to the highest
levels of safety, service and reliability??? Proposed federal air regulations, under
review in the appellate court system, are
designed to change the way we power
Virginia: They are expected to lead to
the development of more renewables,
such as solar. Since 2013, we have spent or plan to
spend more than $2 billion on long-term
contracted solar power???solar assets
whose electric output is sold to a utility
on an agreed-upon price per production
unit. Now that we have gained knowledge and expertise by developing and constructing these projects, we
are shifting our sights into Virginia,
where we plan to install 400 megawatts of solar generating capacity
through a combination of company
investments and long-term contracts. These projects are planned
to meet future utility customer
demand and diversify our generation portfolio???while supporting
Dominion?s efforts to reduce
carbon emissions. with a No. 1 ranking in customer service
from JD Power among Western gas utilities. We are excited to add Questar and its
employees to our family. Dominion and Questar employees are
committed to doing right and doing well.
Those are the things they can control???
safety and awareness, excellence in
operations, a sense of purpose to serve not
only our customers but also our communities. Your investment allows them to thrive
in their workplaces and neighborhoods. satisfied with those results, and we are
working to improve, beginning with
third-party motor vehicle collisions, which
drove the difference in 2015. EMPLOYEES ARE THE STARS
A company is rated first by its peers
because of its employees? diligence and
ethical, safety-conscious behavior. Our people know that safety matters
most. Leaving work in the same condition
in which he or she arrived is each employee?s goal. Every day. It is that important???
and the reason safety always ranks first,
above all else. In about 30 million hours worked in
2015, Dominion employees recorded 110
OSHA workplace injuries (an incidence rate
of 0.74) and 56 workplace injuries resulting
in lost days or reassignment of duties
(a rate of 0.38). Neither number was better
than last year, when we set company
records with 108 OSHA workplace injuries
and 48 of them resulting in lost days or
reassignment of duties. We are not EXCELLENCE IN OPERATIONS
Reliability in our electric utility service area
has improved throughout the past decade.
Right now the average Dominion Virginia
Power customer loses power for just under
two hours a year. Our reputation for reliability was on
full display during the 2015 polar vortex
and during the blizzard in early 2016.
As temperatures dropped to extreme
levels in February 2015, Dominion Virginia
Power shattered its previous all-time
peak-demand record by about 1,500
megawatts???at 21,651 megawatts on
Feb. 20, 2015. No widespread outages
were reported. Moreover, record natural gas throughput
occurred in the pipeline systems of
Dominion Transmission, Dominion East
Ohio and Cove Point, with no interruptions
to customers taking firm service. You might recall that in early 2015,
Dominion purchased South Carolina-based
Carolina Gas Transmission from SCANA
Corporation. Last October, Hurricane
Joaquin flooded much of the state.
Dominion Carolina Gas maintained safe
and reliable operations during those 2 The transaction is subject to approval of Questar?s
shareholders and any necessary state regulatory approvals. 10 DOMINION RESOURCES 2015 SUMMARY ANNUAL REPORT COVE POINT
LIQUEFACTION PROJECT
?COVE POINT LNG 2014 CURRENT FACILITY
? Located on Chesapeake Bay in Lusby, Md.
? 14.6 billion cubic feet equivalent
storage capacity
? Supertankers can access pier
? Connects to multiple gas supply basins PROJECT SCOPE
? $3.4?$3.8 billion
? All construction packages
approved by FERC
? Construction underway
? Liquefaction capacity fully subscribed
for 20 years
? Expected in-service???late 2017 2015 ?PROJECT BENEFITS
ENVIRONMENTAL
? Uses existing footprint
? Protects 800-acre nature preserve ECONOMIC
? 1,600 construction workers on site
? More than 1,000 onsite direct-hire
craft and subcontractor workers
? Nearly 100 permanent jobs at site
? Expected to contribute additional
$40 million annually in revenue to
Calvert County, Md. INTERNATIONAL
? Provides U.S. allies source of natural gas
? Advances U.S. geopolitical interests
? Reduces trade deficit ?LNG SUBSCRIBERS
ST COVE POINT, LLC
? Joint venture between Sumitomo
Corporation and Tokyo Gas Co., Ltd.
? Japanese offtakers include large gas and
electric utilities GAIL GLOBAL (USA) LNG LLC
? U.S. subsidiary of GAIL (India) Limited
? One of largest gas processing,
distribution companies in India DOMINION RESOURCES 2015 SUMMARY ANNUAL REPORT A GOOD NEIGHBOR
Dominion values the environment. We routinely look for ways to partner
with organizations doing good things and be a positive influence on
our communities.
In our time in Calvert County, Md., we have:
? Worked to protect an 800-acre nature preserve surrounding Cove Point.
? Awarded nearly $500,000 to create an artificial reef???and with it the
emergence of oysters, striped bass, spadefish and black sea bass???and
install an open-water monitoring buoy measuring, among other things,
the Chesapeake Bay?s temperature and salinity.
? Provided a grant to distribute more than 1.5 million oysters in several
tributaries of the Patuxent River.
? Restored the largest freshwater marsh on the western shore of the Bay.
? Worked with local schoolchildren to reforest 15 acres by planting
5,250 trees native to the county and region as a whole. 11 ATLANTIC COAST
PIPELINE ?PROJECT FEATURES
CUSTOMER COMMITMENT CAPACITY ? 20-year binding gas
transportation agreements
? Multiple end-use customers
? 96 percent subscribed ? 1.5 billion cubic feet
per day (Bcf/d)
? Expandable to 2 Bcf/d ?STRUCTURE & TIMELINE
OWNERSHIP STRUCTURE PROJECTED TIMELINE ? ? ? ? ? FERC filing???
September 2015
? Expected in-service???
November 2018 Dominion Resources???45%
Duke Energy???40%
Piedmont Natural Gas???10%
AGL Resources???5% TOTAL ESTIMATED COST
? $4.5?$5 billion ?ACP ROUTE???SAFETY & BENEFITS
594-mile route, three compressor stations, minimizes impact to
environmentally and ecologically sensitive areas and historic resources. SAFETY Dominion Pipeline Systems,
including Joint Ventures ? Rigorous federal, state
testing protocols
? X-rayed pipeline welds
? Thorough inspections,
pressure tests prior to
operation
? Government-mandated
operator-qualification
standards
? Coordination with local
emergency responders
? 24/7 monitoring from
Dominion gas control center Utica Shale Cove Point ?Atlantic Coast Pipeline Storage Marcellus Shale PROJECT BENEFITS
? Reliable, diverse supply
? Cleaner air in region PROJECTED NATURAL GAS DEMAND
IN VIRGINIA AND NORTH CAROLINA,
2015?2035*
Billion cubic feet per day 6.49
4.64
3.40 2015 5.32 3.72 2020 2025 2030 DEMAND
NEARLY
DOUBLES ? Net annual energy savings of
$377 million for consumers
in Virginia, North Carolina
? Economic development
opportunities along route
? Economic activity during
construction, operation
? Supports growth of
intermittent renewable power
? Supports creation of more
than 2,500 permanent jobs
along route
? Estimated annual property
tax revenue of more
than $25 million for local
governments ACP would improve the supply of natural gas to:
? Electric utilities aiming to
meet stringent federal and
state air standards and keep
down customer rates;
? Local gas utilities seeking
new, less expensive supplies
for residential and commercial
customers; and ? Industries interested
in building or expanding
their operations in
West Virginia, Virginia,
North Carolina. 2035 * Source, The Economic Impacts of the Atlantic Coast Pipeline,
ICF International, February 2015 12 DOMINION RESOURCES 2015 SUMMARY ANNUAL REPORT DOMINION
MIDSTREAM PARTNERS
INVESTMENT CONSIDERATION
Dominion Midstream Partners, LP, was formed in 2014,
with your company as the general partner. Dominion
expects to contribute eligible assets into this subsidiary
and receive proceeds from the partnership that can be
used to fund growth projects and dividend payouts,
reduce debt and repurchase outstanding common
shares while allowing Dominion Midstream to achieve its
growth targets. Dominion will continue to operate those
assets and retain a percentage of their earnings???paid
to the company in distributions???as well as incentive
distributions that we expect to grow over time. YIELD???DM VS. HIGH-GROWTH PEERS
Percent Annualized Distribution Yield as of Dec. 31, 2015
Selected High Growth MLP?s by NYSE ticker symbol 9.26 1.97
SHLX 2.38 2.61 2.79 VLP DM PSXP In recent years we have focused on
donating to programs helping those
in need. In 2015, we announced an
expansion of EnergyShare, our signature
program of last resort for those needing
help paying their heating and cooling
bills. Dominion has promised an investment of $42 million through 2019 to
double participation and provide
weatherization services and educational
outreach to qualifying customers. When devastating floods ravaged
South Carolina in the fall, Dominion
and its employees wanted to help.
We worked with local officials in the
Columbia, S.C., area to assist in recovery
efforts, providing 100,000 bottles of
safe drinking water, first-aid kits, hot
meals and other essential supplies???
all while maintaining superior service
to Dominion Carolina Gas customers. COMMITTED TO OUR COMMUNITIES
Our company learns a lot from our
employees, and their dedication to public
service???at Dominion and in their neighborhoods???leaves a lasting impression
on our corporate culture an…