Earnings Per Share

12 Months Ended

Dec. 31, 2021

NOTE 8. EARNINGS PER SHARE

The following table presents the calculation of Dominion Energy’s basic and diluted EPS:

	2021			2020			2019
(millions, except EPS)
Net income attributable to Dominion Energy from continuing operations	$	2,647		$	1,583		$	653
Preferred stock dividends (see Note 19)		(68	)		(65	)		(17	)
Net income attributable to Dominion Energy from continuing operations - Basic		2,579			1,518			636
Dilutive effect of Series A Preferred Stock		—			(11	)		(28	)
Net income attributable to Dominion Energy from continuing operations - Diluted		2,579		$	1,507		$	608
Net income (loss) attributable to Dominion Energy from discontinued operations - Basic & Diluted		641		$	(1,984	)	$	705

Average shares of common stock outstanding – Basic		807.8			831.0			808.8
Net effect of dilutive securities⁽¹⁾		0.7			—			0.1
Average shares of common stock outstanding – Diluted		808.5			831.0			808.9

EPS from continuing operations - Basic	$	3.19		$	1.83		$	0.79
EPS from discontinued operations - Basic		0.79			(2.39	)		0.87
EPS attributable to Dominion Energy - Basic	$	3.98		$	(0.56	)	$	1.66

EPS from continuing operations - Diluted		3.19		$	1.82		$	0.75
EPS from discontinued operations - Diluted		0.79			(2.39	)		0.87
EPS attributable to Dominion Energy - Diluted	$	3.98		$	(0.57	)	$	1.62

(1)

Dilutive securities for 2021 consist primarily of stock expected to be issued to satisfy the obligation under a settlement agreement with the SCDOR (applying the if converted method) as well as forward sales agreements entered into in November 2021 (applying the treasury stock method). See Notes 20 and 23 for additional information.

The 2019 Equity Units, the Q-Pipe Transaction deposit, prior to being settled in cash in July 2021 and the 2016 Equity Units, prior to being settled via stock issuances in August 2019, are potentially dilutive instruments. See Notes 3, 18 and 19 for additional information.

The forward stock purchase contracts included within the 2019 Equity Units were excluded from the calculation of diluted EPS from continuing operations for the years ended December 31, 2021, 2020 and 2019 as the dilutive stock price threshold was not met. The Series A Preferred Stock included within the 2019 Equity Units is excluded from the effect of dilutive securities within diluted EPS from continuing operations, but a fair value adjustment is reflected within net income attributable to Dominion Energy from continuing operations for the calculation of diluted EPS from continuing operations for the years ended December 31, 2020 and 2019, based upon the expectation that the conversion will be settled in cash rather than through the issuance of Dominion Energy common stock. As described in Note 19, effective November 2021 any settlement of the conversion up to $1,000 per share is payable in cash, and any amount in excess of $1,000 per share may be settled in cash, common stock or a combination thereof. For the year ended December 31, 2021, a fair value adjustment related to the Series A Preferred Stock included within the 2019 Equity Units is excluded from the calculation of diluted EPS from continuing operations, as such fair value adjustment was not dilutive during the period.

The impact of settling the deposit associated with the Q-Pipe Transaction in shares is excluded from the calculation for the years ending December 31, 2021 and 2020 based upon the expectation Dominion Energy would settle in cash, which occurred in July 2021, rather than through the issuance of shares of Dominion Energy common stock.

The 2016 Equity Units were potentially dilutive securities but were excluded from the calculation of diluted EPS from continuing operations for year ended December 31, 2019 as the dilutive stock price threshold was not met.