Dominion Energy Takes $820 Million Renewable Gas Write-Down as Virginia Utility Lifts Adjusted Earnings
An $820 million impairment on renewable natural gas facilities drove a first-half pre-tax loss of $698 million, even as Dominion's regulated Virginia business posted stronger quarterly results.
Dominion Energy Inc reported adjusted operating earnings of $712 million for the second quarter (Q2) of 2026, up from $649 million a year earlier — but the 9.7 percent increase in the adjusted figure masked a sharp drop in reported net income driven by asset write-downs concentrated in renewable natural gas operations.2
Reported net income fell to $340 million for Q2 2026 from $760 million in Q2 2025, less than half the prior year's figure. Revenue expanded to $4.48 billion from $3.81 billion. But operating expenses surged to $4.15 billion from $2.71 billion, eroding most of the topline gain.2
Dominion's regulated Virginia power and gas business carried the adjusted earnings result. The Virginia segment contributed $670 million to Q2 operating earnings, up from $549 million in Q2 2025. The gain offset weaker results elsewhere: Dominion Energy South Carolina posted operating earnings of $105 million, and the Contracted Energy segment contributed $31 million.2
Below the operating line, charges mounted fast. Dominion booked $153 million in regulated asset retirements during Q2, alongside $626 million in nonregulated asset impairments and $69 million in higher mark-to-market losses on hedging activities.2
Across the first half of 2026, Dominion recorded a pre-tax net loss of $698 million. The company said the figure stemmed primarily from $704 million in nonregulated asset impairments, anchored by an $820 million charge against nonregulated renewable natural gas facilities and a further $78 million against certain other nonregulated assets.2
The RNG write-down carries weight for investors assessing Dominion's capital strategy in the energy transition. Dominion had invested in facilities producing pipeline-quality biomethane, a gas substitute whose project economics depend on natural gas price levels and the durability of regulatory support. NYMEX Henry Hub front-month gas was $2.77/MMBtu in Monday's (2026-08-03) session, a price environment that compresses margins for higher-cost gas alternatives.2
The supply backdrop offers no near-term relief for producers of more expensive gas equivalents. The EIA reported that marketed natural gas production in the Lower 48 averaged 117.2 billion cubic feet per day (Bcf/d) in Q1 2026, up 4 percent from Q1 2025. The agency forecasts a further 3 percent increase for full-year 2026, with Permian output expected to reach 29.2 Bcf/d, 6 percent above 2025 levels, and Haynesville production forecast to rise 6 percent this year and 8 percent in 2027. Production growth on that trajectory sustains downward pressure on Henry Hub prices.1
Dominion's South Carolina results and the contracted segment both trailed the Virginia operation. The South Carolina figure of $105 million in Q2 carried no year-ago comparison in the disclosed financials, making any directional assessment difficult.2
The H1 pre-tax loss of $698 million signals that the write-down cycle was not confined to a single quarter. The $820 million RNG charge represents one category within a wider nonregulated portfolio, and Dominion has not quantified what further exposure may remain in adjacent assets following the impairment.2
With NYMEX Henry Hub front-month gas at $2.77/MMBtu Monday (2026-08-03) and the EIA projecting sustained production growth from the Permian and Haynesville through 2027, the price conditions that once supported RNG investment returns look unlikely to reverse quickly. How much residual exposure Dominion carries in its remaining nonregulated natural gas asset base, after the H1 write-down, is the figure credit desks and equity analysts will need answered at the next disclosure.2,1