Evercore ISI has maintained an In Line rating and a $56.00 price target for Dominion Resources, Inc. (NYSE:D), following a tour of the company's Charybdis vessel in Brownsville, Texas. T
To be sure the tour included a briefing by Dominion Energy's senior management and partners, discussing the ongoing construction of the Charybdis and the Coastal Virginia Offshore Wind (CVOW) project.
Management from Dominion Energy, including COO Diane Leopold and other senior leaders, were present to showcase the progress of the Charybdis vessel, which is a critical component of the CVOW project. The construction of the vessel is a top priority for the company, with a focus on completing it on time and within budget.
Senior leadership from Seatrium and Seajacks, companies specializing in marine and offshore engineering, expressed confidence in meeting the project's upcoming milestones. The CVOW project is being managed by a team of highly skilled Dominion engineers and construction partners with extensive experience in offshore wind projects.
The company's management also emphasized their routine site visits to ensure close monitoring of the project's progress and to maintain engagement with key stakeholders. Dominion Resources is on track to complete the construction of the vessel between late 2024 and early 2025, which will then support the completion of the CVOW project by the end of 2026.
In other recent news, Dominion Energy secured offshore wind leases in the latest U.S. government auction. Dominion's subsidiary, Virginia Electric and Power Co, secured a lease for 176,505 acres with a bid of $17.65 million. In addition, Dominion Energy issued $1.2 billion in senior notes, a transaction expected to be used for general corporate purposes.
Dominion Energy's second-quarter earnings per share (EPS) of $0.65 surpassed both BMO Capital's and the consensus estimates of $0.57. This robust performance led BMO Capital Markets to raise its price target on Dominion Resources from $53.00 to $57.00 while maintaining a Market Perform rating.
Despite this upgrade, BMO Capital cited challenges, including timing and execution risks associated with Dominion's Coastal Virginia Offshore Wind (CVOW) project and modest regulatory risks tied to the company's biennial review process.
InvestingPro Insights
InvestingPro data shows that Dominion Resources, Inc. (NYSE:D) has a market capitalization of $47.51 billion, reflecting its significant presence in the energy sector. With a P/E ratio of 29.97 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 30.18, the company's valuation metrics suggest a stable investment perception among market participants. Additionally, the company's dividend yield stands at 4.73%, a testament to its commitment to returning value to shareholders, as evidenced by its impressive track record of maintaining dividend payments for 42 consecutive years.
InvestingPro Tips highlight the company's significant debt burden, which investors should consider when evaluating the company's financial health. On a positive note, Dominion Resources is trading near its 52-week high, indicating strong market confidence in its current and future prospects. For those looking for more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/D which can provide further guidance on the company's performance and investment potential.
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