Dominion Energy Sum-of-the-Parts Valuation (2028E)
discussed returning to dividend growth around those levels. We do not expect management to resume dividend growth this decade and likely waits until even further moderate toward 50-55% as the sector broadly has been prioriting earnings growth over dividend growth. We raise our PT to $65 vs. $60 prior. Use of a SOTP assessment applying premiums or discounts to various subsidiaries remains unchanged, as do the specific discount we apply to VEPCO, CVoW and South Carolina. Movement in the base peer group multiple to 17.1x vs. 15.6x prior represents the most significant driver of our PT change, partially offset by lower valuation-year EPS of $4.05 vs. $4.15 prior. Contracted EPS is much lower (-38c vs. 56c prior). D currently trades at -7.5% discount to the peer group. We view this to be appropriate in the context of Dominion's below-average consolidated growth rate near-term, with Contracted asset (Millstone) optionality mostly relating to updated pricing and hedging assumptions at Millstone. erg, S&P Capital IQ, FactSet, & Visible Alpha Please see important disclosure information on pages 1l - 17 of this report. This report is intended for Jefferies clients only. Unauthorized distribution is prohibited.