Shares of Dominion Energy experienced a surge in after-hours trading on Friday, following the company’s announcement of securing two separate term loan facilities, each totaling $600 million.
As of 5:56 p.m. ET, the stock showed growth of 2.4%, reaching $53.50 per share. Notably, the trading volume exceeded 209,000 shares. However, despite this positive development, the stock’s overall performance in 2021 reflects a decline of over 14%. During the regular session, the shares concluded with a minor loss of 0.2%, closing at $52.24 per share.
Dominion Energy, headquartered in Richmond, Va., disclosed that it successfully borrowed an initial sum of $750 million on July 7, combining both facilities. These term loan facilities are set to mature on July 5, 2024.
Impact on Earnings Guidance
The utility company had recently adjusted its second-quarter operating earnings guidance range. Previously projected at 58 cents to 68 cents per share, the revised guidance now indicates a range of 44 cents to 50 cents per share. Dominion Energy attributed this adjustment to factors such as mild weather, unplanned outages, as well as cost reduction measures.
In conclusion, Dominion Energy’s strategic move to secure $1.2 billion through term loan facilities has generated positive momentum for its stock. Despite facing challenges throughout the year, the company remains resilient and anticipates continued growth.
Contact: Stephen Nakrosis