Dominion Announces Third-Quarter 2009 Earnings
- Third-quarter 2009 operating earnings of 99 cents per share as compared to guidance of 88 cents to 93 cents per share
- Third-quarter 2009 GAAP earnings of $1.00 per share
- Company affirms 2009 operating earnings guidance of $3.20 to $3.30 per share
- Company affirms 2010 outlook of $3.20 to $3.40 per share
- Conference call scheduled for 10 a.m. EDT today







RICHMOND, Va., Oct. 30 /PRNewswire-FirstCall/ -- Dominion (NYSE: D) today announced unaudited reported earnings determined in accordance with Generally Accepted Accounting Principles (GAAP) for the three months ended Sept. 30, 2009, of $594 million ($1.00 per share) compared to reported earnings of $508 million (87 cents per share) for the same period in 2008.


Operating earnings for the three months ended Sept. 30, 2009, amounted to $592 million (99 cents per share) compared to operating earnings of $545 million (94 cents per share) for the same period in 2008. Operating earnings are defined as reported (GAAP) earnings adjusted for certain items.


Dominion uses operating earnings as the primary performance measurement of its earnings outlook and results for public communications with analysts and investors. Dominion also uses operating earnings internally for budgeting, for reporting to the board of directors, for the company's incentive compensation plans and for its targeted dividend payouts and other purposes. Dominion management believes operating earnings provide a more meaningful representation of the company's fundamental earnings power.


Business segment results and detailed descriptions of items included in 2009 and 2008 reported earnings but excluded from operating earnings can be found on Schedules 1, 2 and 3 of this release.


Thomas F. Farrell II, chairman, president and chief executive officer, said:


"Our core businesses continued to deliver strong operating earnings results this quarter despite unfavorable weather in our electric service territory. Driven by the performance of our regulated businesses, and combined with lower financing costs and a lower effective income tax rate, our operating earnings exceeded the top end of our guidance range.


"In consideration of our year-to-date operating earnings and our limited sensitivity to commodity price changes, we are affirming our 2009 operating earnings guidance range of $3.20 to $3.30 per share.


"This quarter we also continued our emphasis on meeting the growing energy infrastructure needs of our customers by pre-filing our Appalachian Gateway Project with the Federal Energy Regulatory Commission and announcing our intention to form a joint venture with Williams to market and develop a new pipeline called Keystone Connector. Dominion's existing natural gas pipeline system is uniquely positioned in the Appalachian region, as its pipelines traverse the areas of significant supply growth.


"With respect to Dominion's Marcellus shale acreage, we do not plan to develop this property ourselves, but rather capture its value for our shareholders through an outright sale, a farm-out, or a similar transaction over the next two years, depending on market conditions.


"We are affirming our 2010 operating earnings outlook of $3.20 to $3.40 per share and we will be in a better position to provide details for 2010 after we receive a final order in the Virginia base rate case proceeding."


Third-quarter 2009 operating earnings compared to guidance


Third-quarter 2009 operating earnings of

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