Dominion Energy

Management simplified the portfolio, exited three gas LDCs, and structured CVOW with a noncontrolling partner funding 50% of remaining capital and sharing cost risks, which we view as sound.

The dividend has been held steady at $2.67 per share annualized in 2025 and continued into 2026; equity issuance via ATM and forwards has been used to preserve credit metrics during peak capex. These are pragmatic choices for a capital-intensive, rate-regulated utility, though dilution risk is nontrivial and buybacks are off the table.

Our view: capital allocation is rational and credit-aware, but the investment cycle leaves little room for opportunistic repurchases and keeps FCF negative until major projects are in service.