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Dominion Resources Inc. Reports Operating Results (10-K)

February 28, 2012 | About:

Dominion Resources Inc. (NYSE:D) filed Annual Report for the period ended 2011-12-31.

Dominion Res Va has a market cap of $29.23 billion; its shares were traded at around $51.25 with a P/E ratio of 16.8 and P/S ratio of 2. The dividend yield of Dominion Res Va stocks is 3.8%. Dominion Res Va had an annual average earning growth of 4.5% over the past 10 years.

Highlight of Business Operations:

The earnings of Dominions retail energy marketing operations also vary seasonally. Generally, the demand for electricity peaks during the summer and winter months to meet cooling and heating needs, while the demand for gas peaks during the winter months to meet heating needs.

Sales of electricity for Dominion Generation typically vary seasonally as a result of the impact of changes in temperature and the availability of alternative sources for heating on demand by residential and commercial customers. Generally, the demand for electricity peaks during the summer and winter months to meet cooling and heating needs. An increase in heating degree-days does not produce the same increase in revenue as an increase in cooling degree-days, due to seasonal pricing differentials and because alternative heating sources are more readily available.

Virginia Power recognizes and records revenues when energy is delivered to the customer. The determination of sales to individual customers is based on the reading of their meters, which is performed on a systematic basis throughout the month. At the end of each month, the amount of electric energy delivered to customers, but not yet billed, is estimated and recorded as unbilled revenue. This estimate is reversed in the following month and actual revenue is recorded based on meter readings. Virginia Powers customer receivables included $360 million and $397 million of accrued unbilled revenue at December 31, 2011 and 2010, respectively.

Dominions strategy is to continue focusing on its regulated businesses while maintaining upside potential in well-positioned nonregulated businesses. The goals of this strategy are to provide earnings per share growth, a growing dividend and to maintain a stable credit profile. Dominions 2011 results were negatively impacted by lower margins from merchant generation operations and less favorable weather on electric utility operations. In 2012, Dominion is expected to experience an increase in net income on a per share basis as compared to 2011. Dominions anticipated 2012 results reflect the following significant factors:

In 2011, net cash provided by Dominions financing activities was $378 million as compared to net cash used in financing activities of $2.2 billion in 2010, primarily due to net debt issuances in 2011 as compared to net debt repayments in 2010, reflecting, in part, the use of proceeds in 2010 from the sales of Dominions Appalachian E&P operations and Peoples to repay debt.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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