QUOTE AND NEWS
Market Intelligence Center  Jul 14  Comment 
After Friday’s trading in Dominion Resources Inc. (D) MarketIntelligenceCenter.com's option trade-picking algorithms uncovered a trade that offers a 2.58% or 5.04% (for comparison purposes only), while providing 5.32% downside protection. The...
Market Intelligence Center  Jul 8  Comment 
The option-trade picking algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center have selected a covered-call trade on Dominion Resources Inc. (D) that includes 4.65% downside protection. Sell one contract of the Jan. '15...
Forbes  Jun 26  Comment 
Looking at the sectors faring best as of midday Thursday, shares of Utilities companies are outperforming other sectors, higher by 0.1%. Within the sector, Dominion Resources (NYSE: D) and Integrys Energy Group (NYSE: TEG) are two large stocks...
StreetInsider.com  Jun 26  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Dominion+Resources+%28D%29+Prices+18M+Equity+Units+Offering/9615478.html for the full story.
TheStreet.com  Jun 24  Comment 
NEW YORK (TheStreet) -- Dominion Resources was falling -1.2% to $69.51 after-hours Tuesday after announcing an 18 million equity unit offering. Each unit in the offering will be issues in a stated amount of $50. The units consist of a contract...
Forbes  Jun 19  Comment 
Looking at the sectors faring best as of midday Thursday, shares of Utilities companies are outperforming other sectors, higher by 0.8%. Within the sector, Dominion Resources (NYSE: D) and Public Service Enterprise Group (NYSE: PEG) are two large...
Market Intelligence Center  Jun 17  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithms on Dominion Resources Inc. (D) could yield about 2.43% (7.20% annualized, for comparison purposes only) in 123 days. Pair a long position in the stock with the Oct. '14...
Forbes  Jun 9  Comment 
In afternoon trading on Monday, Utilities stocks are the worst performing sector, showing a 0.7% loss. Within that group, Dominion Resources Inc (NYSE: D) and PPL Corp (NYSE: PPL) are two large stocks that are lagging, showing a loss of 1.4% and...
Forbes  Jun 3  Comment 
In this series, we look through the most recent Dividend Channel ''DividendRank'' report, and then we cherry pick only those companies that have experienced insider buying within the past six months. The officers and directors of a company tend to...
Wall Street Journal  Jun 3  Comment 
Dominion Resources Inc. said it is seeking U.S. regulatory approval of two projects to move natural gas from the Appalachian region to markets in upstate New York and West Virginia.




 

Dominion Resources (D) is an electric and natural gas utility. Dominion Resources has approximately 26,500 megawatts (MW) of electrical generating capacity, enough to power around 20 million homes.[1] As the owner of the nation's largest underground natural gas storage system, Dominion also delivers natural gas to retail customers in eleven states.

Dominion Resources, with its easy access to cheap coal in Virginia, generates over 40%[2] of its energy from burning coal. Like other electric utilities Dominion is under increasing political pressure to adopt cleaner electricity generation methods while maintaining competitive prices. Dominion Resources is also investing in clean energy projects such as wind farms and the conversion of some of its coal plants to cleaner, gas powered plants. Nuclear power already constitutes over 21% of Dominion Resources' generation capacity.

Business Overview

Business & Financial Metrics[3]

In 2009, Dominion generated a net income of $1.29 billion on revenues of $15.13 billion. This represents a 29.8% decrease in net income and a 7.1% decrease in total revenues from 2008, when the company earned $1.83 billion on $16.29 billion in revenues.

Business Segments[4]

Dominion Resources has three primary business segments:

  • Dominion Generation (55.4% of total revenue): Dominion's Generation sales electricity to other utilities. Its generation mix includes coal, nuclear, gas, oil, renewables and purchased power. The electric generating plants are located in Virginia, West Virginia and North Carolina.
  • Dominion Virginia Power (DVP) (20.5% of total revenue): DVP includes the company's regulated electric transmission, distribution and customer service operations. The electric transmission and distribution operations serve customers in Virginia and northeastern North Carolina
  • Dominion Energy (17.2% of total revenue): Dominion Energy includes the company's Ohio natural gas distribution and storage company, liquid natural gas operations and its Applachian natural gas exploration and production business.

Key Trends & Forces

The "Greening" of Utilities

Growing political awareness of the risks of global warming is resulting in increasing governmental pressure for utility companies to reduce emissions. In 2008, three major investment bank predicted that the U.S. government would cap CO2 emissions in the next three years. Dominion's reliance on coal for a major part of its electrical generation mix makes it vulnerable to "greener legislation." However, unlike peer Allegheny Energy (AYE), slightly under half of Dominion's electricity comes from nuclear and hydroelectric power better positioning the company to conform to new environmental standards. The company plans to spend $3.4 billion by 2015[5] on new clean air technologies to reduce particulate and toxic emissions. Dominion has filed for permits to expand one of its nuclear power plants and actively invests in new renewable energy projects to remain on-track for the renewable energy standards set forth by Virginia and North Carolina.

Nuclear Power & Electricity Generation

The key difference between nuclear and fossil plants is the cost structure. Nuclear plants require very large capital investments (to construct the plant) but little expenditure for fuel because it takes relatively little uranium to power a plant. On the other hand, fossil fuel plants require relatively little capital investment but have high fuel costs because they require large amounts of coal, oil or gas. In the past, low fossil fuel prices gave given fossil fuel plants a cost advantage over nuclear plants. The cost advantage, compounded by the stigmas of nuclear energy (the not in my backyard phenomenon) has prevented new nuclear construction for almost 30 years.[6] Record fossil fuel prices have begun to reverse this trend. Already, nuclear utilities such as Exelon, Entergy and Duke Energy Corporation (DUK) have begun filing for permits for construction of new nuclear plants. Dominion has filed for permits to expand one of its existing nuclear generation plants. Dominion operates four nuclear plants on the east cost of the United States.

Competition

Dominion's competitors include Allegheny Energy (AYE), Edison International (EIX), American Electric Power Company (AEP), Duke Energy Corporation (DUK), Entergy (ETR), Exelon Energy Corp (EXC), and Public Service Enterprise Group (PEG).

References

  1. Power of Electricity
  2. D - Electric Generating Facilities
  3. D 2009 10-K pg. 32  
  4. D 2009 10-K pg. 121  
  5. D's Environmental Palns
  6. Scientific American (9/26/07) - Nuclear Power Reborn
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