Recently, in an investor meeting, Dominion Resources, Inc.D provided updates on various long-term strategic moves. In the same presentation the company also reaffirmed its earnings and revenue guidance for 2015.
Richmond, VA-based Dominion Resources has planned a robust capital expenditure of about $19.2 billion for growth projects through 2020. Through these investments, the company expects to achieve a compound average growth rate of 7%.
These additions are expected to increase the company's net plant worth to $54.7 billion in 2020 from $35.5 billion in 2014.
The company has a series of growth-centric projects in its pipeline which include the combined-cycle facilities in Brunswick County and Greensville County, VA. These projects are on course and are expected to enter into service in mid-2016 and late 2018, respectively.
In the transmission business, the company placed into service assets worth $514 million year to date. Dominion has projected electric transmission growth projects at around $700 million per year for at least the next five years.
As for renewables, Dominion plans to add 400 megawatt ("MW") of utility-scale solar assets in Virginia with an investment of $700 million. Apart from this, the company has two 20-MW projects waiting to come online by the end of this year. In total, Dominion expects to achieve its merchant solar portfolio target of 450 MW by 2015 and 625 MW by 2016.
In its midstream business, Dominion has nine projects in progress with a capacity of 1 billion cubic feet per day and an investment of $800 million. The company's Cove Point Liquefaction and Atlantic Coast Pipeline projects will unlock sizeable returns once they come into operation.
Dominion Resources' limited partnership - Dominion Midstream Partners, LP DM - completed the acquisition of a 25.93% ownership interest in Iroquois Gas Transmission System, L.P. which was announced earlier.
Dominion Midstream has issued 6.8 million and 1.8 million of its common units to National Grid plc NGG and New Jersey Resources Corp. NJR , respectively, in exchange of their interest in Iroquois Gas Transmission.
Dominion continues to expect third-quarter 2015 operating earnings in a range of 95 cents to $1.10 per share. The company also reaffirmed its 2015 earnings guidance of $3.50 to $3.85 per share.
Dominion Resources currently has a Zacks Rank #3 (Hold).
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