| Balance Sheet
At the end of 2010, cash and cash equivalents were $62.0 million versus $48.0 million in 2009. Customer receivables were $2,158.0 million versus $2,050.0 million in 2009. Total property, plant and equipment, net were $26,713.0 million versus $25,592.0 million in 2009. Accounts payable were $1,562.0 million versus $1,401.0 million in 2009. Total shareholders’ equity was $11,997.0 million versus $11,185.0 million in 2009. Total Long-term debt was $15,758.0 million versus $15,481.0 million in 2009.
The company plans to issue debt in the range of $2.2-$2.7 billion in 2011 that includes the funding of approximately $500.0 million in maturities.
Cash Flow and Capital Expenditure
At the end of 2010, cash (used for)/ provided by operating activities was $1,825.0 million versus $3,786.0 million in 2009. Cash (used for)/ provided by investing activities was $419.0 million versus ($3,695.0) million in 2009. Cash (used for)/ provided by financing activities was ($2,232.0) million versus ($112.0) million in 2009. In 2010, capital expenditures were $300.0 million versus $257.0 million in 2009.
On March 24, 2011, Dominion Resources announced that it plans to spend more than $1.7 billion over the period 2011–2012 to improve and expand the infrastructure of its subsidiary Virginia Power. The company plans to strengthen its electric grid to support growing demand for electricity and improve service reliability for its 2.4 million customers in Virginia. Virginia Power’s planned capital expenditures are expected to total approximately $2.2 billion, $3.0 billion and $3.3 billion in 2011, 2012 and 2013, respectively. Dominion’s overall planned capital expenditures are expected to total approximately $3.9 billion, $4.7 billion and $4.4 billion in 2011, 2012 and 2013, respectively. The company expects to fund its capital expenditures with cash from operations and a combination of securities issuances and short-term borrowings.
Dividend and Share Repurchase Update
In March 2010, Dominion began repurchasing common shares in anticipation of proceeds from the sale of its Appalachian E&P operations. During 2010, Dominion repurchased 21.4 million shares of its common stock for approximately $900.0 million.
Dominion has announced that it intends to repurchase common stock in the range of $400.0–$700.0 million with cash tax savings resulting from the extension of the bonus depreciation allowance. Under this program, Dominion began repurchasing shares in the open market in 1Q11.
The board of directors adopted a new dividend policy, thereby raising the payout ratio to 60NaV. In 2011, the annual dividend rate increased by 7.7% to $1.97 per share from $1.83 per share in 2010. The company is expected to pay a quarterly dividend of $0.4925 per share in 1Q11.
The company expects bonus depreciation to provide a cash benefit in the range of $1.6-2.5 billion through 2013. Some of this cash will be used on a $400.0–$700.0 million share buyback program during 2011 and another $400.0 million has already been contributed to its pension fund.
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