Dominion Power 2004 Annual Report Download - page 27

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D 2004/Page 25
Reconciliation of Free Cash Flow to GAAP Measures
2004 2004 Projected 2005 Projected 2005
GAAP Based Cash Flows GAAP Based Cash Flows
Cash Flows (Non-GAAP) Cash Flows (Non-GAAP)
(dollars in millions)
Operating Activities
Net Income $ 1,249 $ 1,249 $ 1,672 $ 1,672
Depreciation, depletion and amortization 1,433 1,433 1,674 1,674
Deferred income taxes and investment tax credits, net 554 554 646 646
Other adjustments for non-cash items (50) (50)
Changes in working capital and other operating assets and liabilities (347) 226 (a) 207
Net cash provided by operating activities 2,839 3,412 4,199 3,992
Investing Activities
Plant construction and other property additions (1,451) (1,342) (b) (1,572) (1,572)
Additions to gas and oil properties (1,299) (1,299) (1,260) (1,260)
Proceeds from sales of gas and oil properties 729 413 (c)
Reimbursement from lessor (Fairless Energy) 806
Kewaunee acquisition (225)
USGen acquisition (632)
NUG acquisition (160)
Other investing cash flows (41) 71
Net cash used in investing activities (1,256) (2,228) (3,778) (2,832)
Financing Activities
Common dividend payments (861) (861) (926) (926)
Debt issuances net of repayments (1,285) 292
Common stock issuances 839 322
Other (13)
Net cash used in financing activities (1,320) (861) (312) (926)
Net Change in Cash $ 263 $ 109
Free Cash Flow $ 323 $ 234
(a) Represents changes in working capital and other operating assets and liabilities related to non-cash portion of items excluded from operating earnings.
(b) Excludes $109 million related to the acquisition of non-utility generating facilities.
(c) Represents cash received under volumetric production payment agreement (VPP).
For factors that could cause actual results to differ, see Forward Looking
Statements, Risk Factors and Cautionary Statements That May Affect
Future Results and Market Rate Sensitive Instruments and Risk
Management in Management’s Discussion and Analysis of Financial
Condition and Results of Operations in this report.
Page 3: The percentage of Operating Cash Flow Sources included in
the chart represents the operating segments’ net income, as adjusted by
adding back depreciation, depletion and amortization. If the Corporate
segment is included with the operating segments, the percentages
are as follows: VEPCO-Reg 42%; CNG-Reg 22%; CNG/DEI-E&P 45%;
DEI-Non-Reg 10%; Corporate segment (-19%).
Page 3: Definitions of abbreviations
VEPCO: Virginia Electric and Power Company
CNG: Consolidated Natural Gas Company
DEI: Dominion Energy, Inc.
E&P: Dominion Exploration & Production
Page 5: The range of estimated 2005 operating earnings excludes an
estimated after-tax charge of approximately $46 million related to
the acquisition of a non-utility generation facility which closed in the first
quarter of 2005.
Reconciliation of Funds from Operations Interest Coverage to GAAP Measures
Projected Projected
2004 Cashflow 2004 FFO 2004 Adjusted FFO 2005 Cashflow 2005 FFO
Interest Coverage Interest Coverage Interest Coverage Interest Coverage Interest Coverage
(dollars in millions)
Net cash provided by operating activities per
U.S. GAAP Consolidated Statement of Cash Flows 2,839 2,839 2,839 $ 4,199 $4,199
Adjustments to reconcile cash provided by
operating activities to FFO:
Changes in working capital and other – 347 347 – (207)
Capitalized interest – (70) (70) – (108)
Adjustments(1) – – 226 – –
Funds From Operations (FFO) 2,839 3,116 3,342 4,199 3,884
Interest expense per U.S. GAAP financial statements 923 923 923 875 875
Capitalized interest – 70 70 – 108
Total interest expense 923 993 993 875 983
FFO Interest Coverage 4.1 4.1 4.4 5.8 5.0
(1)Represents changes in working capital and other assets and liabilities related to non-cash portion of items excluded from operating earnings.