Duke Energy Corporation (holding Company) · NYSE:DUK

Duke Energy Corporation (holding Company) — Q4 2022 Earnings Presentation

71 slides from Duke Energy Corporation (holding Company)'s earnings presentation, Feb 9, 2023

  1. Slide 1: Q4 2022 Earnings Review and Business Update

    Q4 / 2022 Earnings Review and Business Update Lynn Good / Chair, President and CEO Brian Savoy / Executive Vice President and CFO February 9, 2023 // 1

  2. Slide 2: Safe Harbor statement; Regulation G disclosure

    Safe Harbor statement This presentation includes forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from such forward- looking statements. The factors that could cause actual results to differ are discussed herein and in Duke Energy’s

  3. Slide 3: Safe harbor statement

    Safe harbor statement This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management’s beliefs and assumptions and can often be identified by

  4. Slide 4: Financial highlights

    Financial highlights $3.33 / $5.27 $5.55 - $5.75 2022 REPORTED(1) / ADJUSTED EPS REAFFIRMING 2023 ADJUSTED ADJUSTED EPS ABOVE MIDPOINT OF EPS GUIDANCE RANGE REVISED GUIDANCE RANGE(2) ADJUSTED EARNINGS 5% – 7% PER SHARE EARNINGS GROWTH $5.55 - $5.75 THROUGH 2027 REAFFIRMING OFF MIDPOINT $5.20 - $5.30

  5. Slide 5: Constructive carbon plan order supports capital plan, orderly transition

    Constructive carbon plan order supports capital plan, orderly transition INITIAL CARBON PLAN APPROVED BY THE NEAR-TERM ACTIVITIES SUPPORT NCUC ON DECEMBER 30, 2022 “ALL-OF-THE-ABOVE” APPROACH  Provides clarity to advance near-term investments  3,100 MW of new solar in- service by 2028  Plans for

  6. Slide 6: Advancing regulatory and policy strategy across our footprint

    Advancing regulatory and policy strategy across our footprint  Filed DE Carolinas base rate case with a North performance-based regulation application in January Carolina  DE Progress rate case hearing scheduled for May  Reached comprehensive settlement with all parties South in DE Progress rate

  7. Slide 7: 2022 Financial Results

    2022 Financial Results $3.33 / $5.27 YEAR-OVER-YEAR DRIVERS 2022 REPORTED(1) / ADJUSTED EPS Electric Utilities and Infrastructure (+$0.36 adjusted EPS) ADJUSTED EPS ABOVE MIDPOINT OF REVISED GUIDANCE RANGE(2)  Load growth, weather, and rate increases (NC, FL), partially offset by higher interest ex

  8. Slide 8: Reaffirming 2023 adjusted EPS guidance

    Reaffirming 2023 adjusted EPS guidance Electric Utilities & Gas Utilities & Other Infrastructure Infrastructure ($0.18) $0.52 $0.04 ▲ Ohio rate case $5.65 ▲ Cost mitigation Midpoint(1) ▲ Customer growth ▼ Higher interest ▼ Interest expense expense, net of benefits of estimated debt avoidance from Co

  9. Slide 9: Retail electric volumes

    Retail electric volumes 2022 RETAIL ELECTRIC VOLUMES(1) FORECASTED 2023 RETAIL ELECTRIC VOLUMES(2) 3.5% 2.5% 2.1% 1.7% ~0.5% ~1% 1% to 2% (1%) to (1.5%) Residential Commercial Industrial Total Retail Residential Commercial Industrial Total Retail 2022 GROWTH IN RESIDENTIAL ANNUAL RETAIL ELECTRIC VOL

  10. Slide 10: Balancing growth with affordability for customers

    Balancing growth with affordability for customers GROWING $65B 5-YEAR … WITH A STEADY FOCUS ON CAPITAL PLAN(1)… AFFORDABILITY Several examples include… $80B - $63B $65B $85B  Cost management continues to be a $59B core competency – $300 million cost reduction in 2023, expect 75% to be sustained bey

  11. Slide 11: Committed to maintaining current credit ratings

    Committed to maintaining current credit ratings KEY CONSIDERATIONS FFO / DEBT 14.6% 14.8% ~13-14%  BBB/Baa2 (Stable) credit ratings 13.0%  Targeting HoldCo / total debt ratio in low 30’s - currently at ~33%  ~$1 billion tranche 2 closing of DEI minority interest completed in December 2022  Comme

  12. Slide 12: Our investor value proposition

    Our investor value proposition A STRONG LONG-TERM RETURN PROPOSITION 4.0% ~10% 5 -7% DIVIDEND YIELD(1) ATTRACTIVE zzz LONG-TERM WITH LONG-TERM RISK-ADJUSTED EPS GROWTH(4) DIVIDEND GROWTH TOTAL SHAREHOLDER THROUGH 2027 COMMITMENT(2) RETURN(3) CONSTRUCTIVE, GROWING JURISDICTIONS, LOWER-RISK REGULATED

  13. Slide 13: Appendix

    APPENDIX // 13

  14. Slide 14: Sustainability / Environmental Social and Governance (ESG)

    SUSTAINABILITY / ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) // 14

  15. Slide 15: Diverse generation mix is key to reliability and rate stability for customers

    Diverse generation mix is key to reliability and rate stability for customers Renewables: Builds to ~35% of total generation by 2040 ZELFRs(1): Dispatchable zero-carbon resources; enables transition from natural gas Enterprise GWh Existing nuclear: Reliable zero-carbon baseload generation throughout

  16. Slide 16: Emerging technology partnerships

    Emerging technology partnerships  Installed and commissioned EnerVenue nickel hydrogen battery in McAlpine, NC in Q4 2022  Testing EOS Gen 3 zinc battery and GKN hydrogen storage unit at Duke Energy’s Emerging Technology and Innovation Center in North Carolina. The ENERGY hydrogen unit generates h

  17. Slide 17: Significantly reducing Scope emissions from electricity generation

    Significantly reducing Scope 1 emissions from electricity generation Removed 62 million metric tons of annual CO2 emissions from electric generation since 2005, equivalent to taking over 13 million fossil-fueled vehicles off the road Emissions from electric generation CO2 emissions CO2 Emissions (me

  18. Slide 18: Sustainable financing framework

    Sustainable financing framework Green and sustainability bond financing sustainable-financing-framework  Use of proceeds-based framework greatly expands the eligible project categories to align with our interim and long-term carbon reduction goals:  Renewable energy, green innovation, energy effic

  19. Slide 19: Long-standing history of strong governance driven from diverse Board of Directors

    Long-standing history of strong governance driven from diverse Board of Directors FOCUSED ON BOARD COMPOSITION TO OVERSEE THE COMPANY’S LONG-TERM STRATEGY  13 out of 14 directors are independent (all directors except Chair, President and CEO)  7 out of 14 directors are female or identify as a part

  20. Slide 20: 2022 Performance and 2023 Guidance Supplemental Information

    2022 PERFORMANCE AND 2023 GUIDANCE SUPPLEMENTAL INFORMATION // 20

  21. Slide 21: Key 2023 adjusted earnings guidance assumptions

    Key 2023 adjusted earnings guidance assumptions 2023 Interest Expense Assumption ($ in millions) Original 2022 2022 2023 (Consolidated Total $2,890) Assumptions(1) Actual(1) Assumptions Adjusted segment income/(expense)(2): $825 Electric Utilities & Infrastructure $4,170 $4,205 $4,610 $- $215 $1,850

  22. Slide 22: Electric utilities quarterly weather impacts

    Electric utilities quarterly weather impacts Weather segment 2022 2021 income to normal: Pretax Weighted EPS impact Pretax Weighted EPS impact impact avg. shares favorable / impact avg. shares favorable / (unfavorable) (unfavorable) First Quarter ($33) 770 ($0.03) ($17) 769 ($0.02) Second Quarter $1

  23. Slide 23: Key 2023 earnings sensitivities

    Key 2023 earnings sensitivities Driver EPS Impact 1% change in earned return on equity +/- $0.58 $1 billion change in rate base +/- $0.07 Electric Utilities & Infrastructure 1% change in Electric Utilities volumes Industrial +/- $0.02(2) +/- $0.15(1)(2) Commercial +/- $0.05(2) Residential +/- $0.08(

  24. Slide 24: Cost-effective fleet transition and grid modernization drives capital plan

    Cost-effective fleet transition and grid modernization drives capital plan(1) GROWING 5-YEAR CAPITAL PLAN PERCENTAGE OF TOTAL CAPEX 2023-2027 Hydrogen Capable Gas Gen Gas Gen Maintenance ~5% $80B - ~2% $85B Coal Maintenance ~2% Gas LDC ~21% Corporate, IT & ~8% Regulated cyber ~5% zero-carbon gen ~3%

  25. Slide 25: Regulated utilities end of year earnings base

    Regulated utilities end of year earnings base(1) Electric Utilities Earnings Base ($ in billions) 2022A 2023E 2024E 2025E 2026E 2027E Duke Energy Carolinas $30.4 $33.0 $35.6 $38.6 $41.0 $43.9 Duke Energy Progress 20.5 22.1 23.8 25.9 28.0 30.5 Duke Energy Florida 17.4 19.0 20.9 22.3 23.4 24.3 Duke In

  26. Slide 26: Capital expenditures profile

    Capital expenditures profile(1) ($ in millions) Capital Expenditures 2022A 2023E 2024E 2025E 2026E 2027E 2023 - 2027 (2) Electric Generation 1,179 1,650 1,950 3,150 3,600 4,375 14,725 Electric Transmission 1,063 1,550 1,925 1,850 1,625 1,425 8,375 Electric Distribution 3,131 3,750 3,750 4,100 3,800

  27. Slide 27: Capital expenditures by utility (continued)

    Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy Carolinas 2022A 2023E 2024E 2025E 2026E 2027E 2023 - 2027 Electric Generation 400 625 650 1,050 1,200 1,725 5,250 Electric Transmission 178 400 550 500 350 325 2,125 Electric Distribution 1,152 1,400 1,275 1,425 1,400 1,275 6

  28. Slide 28: Capital expenditures by utility (continued)

    Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy Florida 2022A 2023E 2024E 2025E 2026E 2027E 2023 - 2027 Electric Generation 498 525 500 400 475 525 2,425 Electric Transmission 580 600 600 450 425 400 2,475 Electric Distribution 647 725 875 975 825 875 4,275 (2) Environment

  29. Slide 29: Capital expenditures by utility (continued)

    Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy OH/KY Electric 2022A 2023E 2024E 2025E 2026E 2027E 2023 - 2027 Electric Generation 3 - - 100 - - 100 Electric Transmission 117 150 150 125 125 175 725 Electric Distribution 248 275 250 250 300 325 1,400 (2) Environmental & Ot

  30. Slide 30: Weather normalized volume trends, by electric jurisdiction

    Weather normalized volume trends, by electric jurisdiction Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Electric Carolinas Progress Florida Indiana Ohio/Kentucky Utilities 2022 Retail Volume Summary 6.7% 6.4% 5.9% 5.5% 4.5% 3.8% 3.5% 3.2% 2.4% 2.3% 2.5% 2.2% 2.1% 1.7% 1.6% 1.6% 1.7% 1

  31. Slide 31: Managing regulatory lag and customer rate impacts

    Managing regulatory lag and customer rate impacts ADJUSTED BOOK ROEs(1) COMPETITIVE CUSTOMER RATES(2)(3) RESIDENTIAL 9.8% DEI 16.35 10.9% U.S. AVG. 16.18 Carolinas 10.9% DEF 14.93 10.5-11.0% DEP (SC) 13.43 DEP (NC) 12.91 10.7% DEO 12.38 9.6% DEK 12.29 Florida 10.6% DEC (SC) 11.93 10.0-10.5% DEC (NC)

  32. Slide 32: Financing Plan Update and Current Liquidity

    FINANCING PLAN UPDATE AND CURRENT LIQUIDITY // 32

  33. Slide 33: 2023 Financing plan

    2023 Financing plan(1) Estimated / Notional Pre- Completed 2023 Issuer Actual Amount Issuance Hedges Security Date Issued Term Rate ($ in millions) Maturities(2) ($ in millions) ($ in millions) $1,250 Holding Company $500 - $700 $500 Senior Debt - - - - (Apr., Jun. & Oct.) $900 10-year 4.95% $1,800

  34. Slide 34: Liquidity summary (as of December 31, 2022)

    Liquidity summary (as of December 31, 2022) ($ in millions) Duke Duke Duke Duke Duke Duke Piedmont Duke Energy Energy Energy Energy Energy Energy Natural Energy Carolinas Progress Florida Indiana Ohio Kentucky Gas Total Master Credit Facility (1) $ 2,375 $ 1,925 $ 800 $ 1,150 $ 1,050 $ 725 $ 175 $ 8

  35. Slide 35: 2023 Pension funding and costs

    2023 Pension funding and costs  On a consolidated basis, Duke Energy Pension pension plans are 110% funded as of Contributions 2021A 2022A 2023E ($ in millions) 12/31/2022 on a PBO basis All plans $0 $58 Evaluating  Duke Energy’s pension funding policy:  Duke Energy’s policy is to fund amounts on

  36. Slide 36: Simplified financing structure

    Simplified financing structure Duke Energy (HoldCo) Cinergy Corp. Progress Energy (HoldCo) (HoldCo)(1) Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Piedmont Natural Carolinas Ohio Indiana Holdco(2) Progress Florida Gas Commercial Paper and LT Financings Duke Energy Duke Energy Money P

  37. Slide 37: Credit ratings and 2022 credit metrics

    Credit ratings and 2022 credit metrics(1) Duke Energy Corporation Holdco Debt/Total Debt 33% FFO/Debt (2)(3) 13% Duke Energy Duke Energy Duke Energy Carolinas Progress Florida FFO/Debt(2)(3) 21% 20% 18% Duke Energy Duke Energy Piedmont Indiana Ohio Cons. FFO/Debt(2)(3) 22% 16% 14% (1) Amounts do not

  38. Slide 38: Regulatory Overview

    REGULATORY OVERVIEW // 38

  39. Slide 39: Modern recovery mechanisms and pending rate cases

    Modern recovery mechanisms and pending rate cases Pending rate case Evaluating rate case Modern recovery mechanism JURISDICTION 2022 2023 2024 2025 2026 2027 NC Pending NC - Multi-year rate plan Evaluating - NC DEC Evaluating - SC NC Pending NC - Multi-year rate plan Evaluating - NC DEP SC Pending E

  40. Slide 40: Electric utilities & infrastructure recovery mechanisms

    Electric utilities & infrastructure recovery mechanisms RECOVERY MECHANISMS FOR ELECTRIC CAPEX(1)  ~90% of electric segment capital investments are eligible for modern recovery mechanisms, mitigating regulatory lag  Includes recovery through riders, rate cases with forecasted test years, and multi

  41. Slide 41: Regulatory activity details

    Regulatory activity details FILING DOCKET KEY STATUS TYPE NO. DRIVERS  Hearing begins May ’23  Requested: ROE 10.2%; 53% equity cap. structure NC Base Rate Case  Temporary rates subject to refund  Investments in grid, energy storage, solar and PBR(1) E-2 Sub expected June ’23  Implement perform

  42. Slide 42: Overview of state commissions by jurisdiction

    Overview of state commissions by jurisdiction North Carolina South Carolina Florida Indiana Ohio Kentucky Tennessee Number of 7 7 5 5 5 2 7 Commissioners Term (years) 6 4 4 4 5 3 6 Appointed by Appointed by Appointed by Appointed by Elected by the Appointed by Appointed by Appointed/Elected Governor

  43. Slide 43: Current electric rate information by jurisdiction

    Current electric rate information by jurisdiction North South Ohio Kentucky Florida Indiana Carolina Carolina (Electric) (Electric) $16.9 B(1) (DEC) $5.4 B(2) (DEC) $2.0 B Retail Rate Base $17.0 B(3) $10.2 B $881 M $10.6 B(1) (DEP) $1.5 B(2) (DEP) (dist. only) $2.1 B (DEC) 3Q 2022 $0.9 B Wholesale R

  44. Slide 44: Current electric rate information by jurisdiction (continued)

    Current electric rate information by jurisdiction (continued) General Rate Case North South Ohio Kentucky Florida Indiana Provisions Carolina Carolina (Electric) (Electric) Notice of Intent Required? Yes Yes Yes Yes(1) Yes Yes Notice Period 30 Days 30 Days 60 Days 30 Days(2) 30 Days 30 Days Base Rat

  45. Slide 45: Current gas rate information by jurisdiction

    Current gas rate information by jurisdiction North South Ohio Kentucky Tennessee Carolina Carolina (Gas) (Gas) Rate Base $4.7 billion $501 million $897 million $900 million $313 million 9.375% for base rates Allowed ROE 9.6% 9.3% 9.8% 9.84% 9.3% for riders Allowed Equity 51.6% 52.2% 50.5% 53.3% 51.3

  46. Slide 46: Segment Overviews

    SEGMENT OVERVIEWS // 46

  47. Slide 47: Duke Energy business segment structure

    Duke Energy business segment structure Duke Energy(1) Electric Utilities Gas Utilities Other & Infrastructure & Infrastructure North and South Duke Energy Carolinas Piedmont Natural Gas Carolina North and South Commercial Duke Energy Progress Carolina Pipelines Duke Energy Florida Florida Duke Energ

  48. Slide 48: Duke Energy – a large scale, highly regulated energy infrastructure company

    Duke Energy – a large scale, highly regulated energy infrastructure company HEADQUARTERED IN CHARLOTTE, NC ELECTRIC UTILITIES & GAS UTILITIES & INFRASTRUCTURE INFRASTRUCTURE Operations A FORTUNE 150 COMPANY $78 B MARKET CAP Retail Customers 8.2 million in six states 1.7 million in five states (AS OF

  49. Slide 49: Electric utilities & infrastructure

    Electric utilities & infrastructure EIGHT UTILITIES IN HIGH-QUALITY REGIONS OF THE U.S. CAROLINAS FLORIDA MIDWEST Duke Energy Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Duke Energy (NC/SC) (NC/SC) Indiana Ohio / Kentucky REGULATED ELECTRIC REGULATED ELECTRIC BALANCED 2022 EARNING

  50. Slide 50: Gas utilities & infrastructure

    Gas utilities & infrastructure GAS UTILITIES WITH LOW VOLUMETRIC EXPOSURE DUE TO MOSTLY FIXED MARGINS… MARGIN STABILIZING MECHANISMS 14% 13% 1. Purchased Gas All States Adjustment 74% 86% MOSTLY 2. Uncollectible Recovery All States FIXED 3. Integrity Management Rider North Carolina MARGINS (“IMR”) 4

  51. Slide 51: Upcoming events

    Upcoming events Event Date 1Q 2023 earnings call (tentative) May 9, 2023 2Q 2023 earnings call (tentative) August 3, 2023 3Q 2023 earnings call (tentative) November 2, 2023 FOURTH QUARTER 2022 EARNINGS REVIEW AND BUSINESS UPDATE // 51 // 51

  52. Slide 52: Investor relations contact information

    Investor relations contact information ABBY MOTSINGER, VICE PRESIDENT INVESTOR RELATIONS  Abby.Motsinger@duke-energy.com  (704) 382-7624 CHRIS JACOBI, DIRECTOR INVESTOR RELATIONS  Christopher.Jacobi@duke-energy.com  (704) 382-8397 LINDA MILLER, MANAGER INVESTOR RELATIONS  Linda.Miller@duke-ener

  53. Slide 53: For additional information on Duke Energy

    HEADLINE GOES HERE For additional information on Duke Energy, please visit: duke-energy.com/investors FOURTH QUARTER 2021 EARNINGS REVIEW AND BUSINESS UPDATE // 53

  54. Slide 54: Non-GAAP Reconciliations

    Duke Energy Corporation Non-GAAP Reconciliations Fourth Quarter Earnings Review & Business Update February 9, 2023 Adjusted Earnings per Share (EPS) The materials for Duke Energy Corporation’s (Duke Energy) Fourth Quarter Earnings Review and Business Update on February 9, 2023, include a discussion

  55. Slide 55: Non-GAAP measures: adjusted segment income and adjusted other net loss

    Due to the forward-looking nature of this non-GAAP financial measure for future periods, information to reconcile it to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items for future periods, such as legal settlement

  56. Slide 56: Adjusted Book Return on Equity (ROE)

    Adjusted Book Return on Equity (ROE) The materials for Duke Energy’s Fourth Quarter Earnings Review and Business Update on February 9, 2023 include a reference to the historical and projected adjusted book return on equity (ROE) ratio. This ratio is a non-GAAP financial measure. The numerator repres

  57. Slide 57: Net Regulated Electric and Gas O&M

    Net Regulated Electric and Gas O&M The materials for Duke Energy’s Fourth Quarter Earnings Review and Business Update on February 9, 2023, include a discussion of Duke Energy’s net regulated Electric and Gas operating, maintenance and other expenses (O&M) for the forecasted year-to-date periods ende

  58. Slide 58: Reported to Adjusted Earnings Reconciliation, Year Ended December 31, 2022

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Year Ended December 31, 2022 (Dollars in millions, except per share amounts) Special Items Workplace Regulatory and Reported Matters and Workforce Discontinued Total Adjusted Earnings Litigation Realignment Operations Adjustments E

  59. Slide 59: Reported to Adjusted Earnings Reconciliation, Year Ended December 31, 2021

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Year Ended December 31, 2021 (Dollars in millions, except per share amounts) Special Items Workplace and Reported Gas Pipeline Workforce Regulatory Discontinued Total Adjusted Earnings Investments Realignment Settlements Operations

  60. Slide 60: Effective Tax Reconciliation

    DUKE ENERGY CORPORATION EFFECTIVE TAX RECONCILIATION December 2022 (Dollars in millions) Three Months Ended Year Ended December 31, 2022 December 31, 2022 Effective Tax Effective Tax Balance Rate Balance Rate Reported Income Before Income Taxes From Continuing Operations Before Income Taxes $ 813 $

  61. Slide 61: Available Liquidity Reconciliation

    Duke Energy Corporation Available Liquidity Reconciliation As of December 31, 2022 (In millions) Cash and Cash Equivalents $ 419 Less: Certain Amounts Held in Foreign Jurisdictions (7) Less: Unavailable Domestic Cash (36) 376 Plus: Remaining Availability under Master Credit Facilities and other faci

  62. Slide 62: Adjusted Book Return on Equity, 2022

    DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2022 dollars in millions Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Ohio Reportable Carolinas Progress Total Carolinas Florida Indiana Segments Piedmont (2) (3) Reported Net Income 2022 $

  63. Slide 63: Adjusted Book Return on Equity, 2021

    DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2021 dollars in millions Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Ohio Reportable Carolinas Progress Total Carolinas Florida Indiana Segments Piedmont (2) (3) Reported Net Income 2021 $

  64. Slide 64: Adjusted Book Return on Equity, 2020

    DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2020 dollars in millions Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Ohio Reportable Carolinas Progress Total Carolinas Florida Indiana Segments Piedmont (2) Reported Net Income 2020 $ 956

  65. Slide 65: FFO to Debt Calculation: Duke Energy Corporation

    FFO to Debt Calculation Duke Energy Corporation (in millions) Year Ended December 31, 2022 Actual Cash From Operations 5,927 Adjust for Working Capital (1) 2,100 Coal ash ARO spend 486 Include Capitalized Interest as cost (118) Hybrid interest adjustment 11 Preferred stock adjustment (54) CR3 securi

  66. Slide 66: FFO to Debt Calculation: Duke Energy Carolinas

    FFO to Debt Calculation Duke Energy Carolinas (in millions) Year Ended December 31, 2022 Actual Cash From Operations 1,569 Adjust for Working Capital (1) 867 ARO spend 200 Include Capitalized Interest as cost (50) Storm securitization (12) Lease‐imputed FFO adjustment (D&A) 34 Adjustment for Long‐te

  67. Slide 67: FFO to Debt Calculation: Duke Energy Progress

    FFO to Debt Calculation Duke Energy Progress (in millions) Year Ended December 31, 2022 Actual Cash From Operations 1,501 Adjust for Working Capital (1) 317 Coal ash ARO spend 193 Include Capitalized Interest as cost (19) Storm securitization (39) Lease‐imputed FFO adjustment (D&A) 64 Adjustment for

  68. Slide 68: FFO to Debt Calculation: Duke Energy Florida

    FFO to Debt Calculation Duke Energy Florida (in millions) Year Ended December 31, 2022 Actual Cash From Operations 842 Adjust for Working Capital (1) 583 Include Capitalized Interest as cost (7) Adjust for CR3 (62) Lease‐imputed FFO adjustment (D&A) 58 Adjustment for Long‐term Deferred Fuel Impacts

  69. Slide 69: FFO to Debt Calculation: Duke Energy Ohio

    FFO to Debt Calculation Duke Energy Ohio (in millions) Year Ended December 31, 2022 Actual Cash From Operations 582 Adjust for Working Capital (1) 34 Coal Ash ARO spend 12 Include capitalized Interest as cost (14) Lease‐imputed FFO adjustment (D&A) 9 Funds From Operations 623 Notes payable to affili

  70. Slide 70: FFO to Debt Calculation: Duke Energy Indiana

    FFO to Debt Calculation Duke Energy Indiana (in millions) Year Ended December 31, 2022 Actual Cash From Operations 1,101 Adjust for Working Capital (1) (89) Coal ash ARO spend 82 Include Capitalized Interest as cost (3) Lease‐imputed FFO adjustment (D&A) 16 Funds From Operations 1,107 Notes payable

  71. Slide 71: FFO to Debt Calculation: Piedmont Natural Gas

    FFO to Debt Calculation Piedmont Natural Gas (in millions) Year Ended December 31, 2022 Actual Cash From Operations 507 Adjust for Working Capital (1) 44 Include Capitalized Interest as cost (4) Lease‐imputed FFO adjustment (D&A) 5 Funds From Operations 552 Notes payable to affiliated companies 514

Duke Energy — Q4 2022 Earnings Presentation on 6ix