Dominion Energy: A Favorable Risk-To-Reward Prospect

(9min)

Summary

  • Dominion Energy's recent asset sales and debt reduction have improved its financial outlook, warranting an upgrade from 'hold' to a 'soft buy'.
  • The company has significant infrastructure, including 29.5 gigawatts of electric capacity and extensive transmission and distribution networks.
  • Management's guidance for 2024 suggests strong EBITDA and operating cash flow growth, positioning Dominion Energy as undervalued compared to peers.
  • Potential upside ranges from 2.8% to 54.6%, making Dominion Energy a favorable risk-reward opportunity with limited downside risk.
  • Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

Dominion Energy Building Salt Lake City Utah

felixmizioznikov/iStock Editorial via Getty Images

Boy, does time fly. The older I get, the more that statement seems true. It feels like it was just a few months ago that I last wrote about utility giant Dominion Energy (

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This article was written by

33.86K Followers

Daniel is an avid and active professional investor.

He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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