Dominion Energy sets up $1.2B at-the-market stock offering

Dominion Energy, Inc. (NYSE:D), a Virginia-based utility company with a market capitalization of $47.5 billion, has established an at-the-market equity program that could potentially raise up to $1.2 billion through the sale of its common stock, according to an 8-K filing with the Securities and Exchange Commission on Thursday. According to InvestingPro data, the company currently operates with a significant debt burden of $43 billion, suggesting this equity raise could help strengthen its balance sheet. The stock currently trades above its Fair Value.

Under the program, Dominion has entered into sales agency agreements with a dozen financial institutions, including Barclays (LON:BARC), BMO Capital Markets, and Goldman Sachs, among others. These agreements allow the company to sell shares, currently trading at $56.48, from time to time directly on the New York Stock Exchange or through other methods as permitted by law. The company maintains a strong 4.68% dividend yield and has consistently paid dividends for 43 consecutive years, as highlighted by InvestingPro analysis.

The program also includes provisions for forward sale agreements, where the financial institutions will sell borrowed shares to hedge their exposure. While Dominion will not receive immediate proceeds from these sales, it will benefit upon settlement of the forward sale agreements at future specified dates.

The sales are part of a broader strategy to raise capital as needed in a flexible manner. The company has the option to settle the forward sales with physical delivery of stock, cash, or a combination thereof, which could impact the proceeds received and the number of shares eventually issued.

This move comes under a shelf registration statement that was previously filed and became automatically effective on February 21, 2023, and the sales will be subject to a prospectus supplement filed on February 27, 2025. The total offering of shares under this program cannot exceed the $1.2 billion cap set by the company.

The detailed terms of the sales agency agreements and the forward sale agreements are included in the filing and are integral to understanding the full scope and implications of this equity program. For deeper insights into Dominion Energy’s financial health and comprehensive analysis, investors can access the full Pro Research Report, available exclusively on InvestingPro, which covers this and over 1,400 other US stocks with detailed metrics and expert analysis.

The information for this article is based on a press release statement filed with the SEC.

In other recent news, Dominion Energy Inc. announced its fourth-quarter 2024 earnings, reporting an earnings per share (EPS) of $0.58, which fell short of the forecasted $0.62. The company also reported revenue of $3.4 billion, missing the anticipated $3.86 billion. Despite these misses, Dominion Energy remains committed to achieving 5-7% annual earnings growth through 2029. The Coastal Virginia Offshore Wind project is halfway to completion, although costs have risen to $10.7 billion. The project is expected to provide significant energy capacity to Virginia’s grid by 2026. Dominion Energy has also narrowed its 2025 operating earnings guidance to between $3.28 and $3.52 per share. Meanwhile, the company continues to see robust demand from data centers in Virginia, which are expanding rapidly and contributing significantly to its sales. These recent developments highlight Dominion Energy’s ongoing focus on strategic investments and growth.

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