Duke Energy Corporation (holding Company) · NYSE:DUK

Duke Energy Corporation (holding Company) — Investor Presentation (August 2018)

77 slides from Duke Energy Corporation (holding Company)'s investor presentation, Aug 8, 2018

  1. Slide 1: Duke Energy Summer Update 2018

    DUKE ENERGY SUMMER UPDATE 2018

  2. Slide 2: Notes

    Notes DUKE ENERGY SUMMER UPDATE 2018 2

  3. Slide 3: Safe Harbor statement

    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 in the Appendix herein and i

  4. Slide 4: A solid long-term holding

    Our investor value proposition A SOLID LONG-TERM HOLDING 4.6% ~8-10% 4 -6% DIVIDEND YIELD(1) zzz ATTRACTIVE HIGHLY WITH DIVIDEND RISK-ADJUSTED ACHIEVABLE GROWTH TOTAL SHAREHOLDER EPS GROWTH COMMITMENT(2) RETURN(3) THROUGH 2022(4) CONSTRUCTIVE JURISDICTIONS, LOW-RISK REGULATED INVESTMENTS AND BALANCE

  5. Slide 5: Reaffirming long-term earnings growth guidance

    Reaffirming long-term earnings growth guidance(1) REAFFIRMING LONG TERM GROWTH CAGR OF 4-6%THROUGH 2022 OFF OF MIDPOINT OF ORIGINAL 2017 GUIDANCE RANGE ($4.60) 2019 6% CAGR EXPECT LOW END OF THE GROWTH CAGR RANGE OFF OF $4.60 4% CAGR 2020 AND $4.85 BEYOND EXPECT MID TO HIGH END $4.60 OF THE GROWTH C

  6. Slide 6: Duke Energy – A large scale, highly regulated energy infrastructure company

    Duke Energy – A large scale, highly regulated energy infrastructure company HEADQUARTERED IN ELECTRIC UTILITIES CHARLOTTE, NC & INFRASTRUCTURE • Operating in six constructive jurisdictions, with attractive allowed ROEs, serving 7.6 million retail customers • Below average customer rates(1) • Balance

  7. Slide 7: Complementary businesses with strong growth opportunities

    Complementary businesses with strong growth opportunities ELECTRIC UTILITIES 2018 ADJUSTED 2018-2022 2017 – 2022 & INFRASTRUCTURE EPS CONTRIBUTION(1) GROWTH CAPITAL ADJUSTED EPS CAGR(2) Consolidated 4-6% 88% $28.8 B 10-14% 11-13% GAS UTILITIES & INFRASTRUCTURE 9% $6.7 B 5-6% COMMERCIAL RENEWABLES 3%

  8. Slide 8: Modern recovery mechanisms and investment priorities

    2017 2026 ENGAGE MODERNIZE THE GENERATE EXPAND TRANSFORM THE STAKEHOLDERS ENERGY GRID CLEANER ENERGY NATURAL GAS CUSTOMER INFRASTRUCTURE EXPERIENCE MODERN $25 $11 15 TOP RECOVERY BILLION BILLION PERCENT QUARTILE MECHANISMS INVESTMENTS IN INVESTMENTS IN GAS PROPORTION OF CUSTOMER IN ALL JURISDICTIONS

  9. Slide 9: Modernize the energy grid

    $25 billion investment over 10 years to modernize the largest energy grid in the U.S. TARGETED UNDERGROUNDING SELF- TRANSMISSION OPTIMIZATION IMPROVEMENTS DISTRIBUTION ENTERPRISE HARDENING & SYSTEM RESILIENCY UPGRADES COMMUNICATION ADVANCED NETWORK METERING UPGRADES INFRASTRUCTURE (AMI) CUSTOMER BEN

  10. Slide 10: Generating cleaner energy

    Generating cleaner energy TARGETING 40% REDUCTION IN CO2 EMISSIONS FROM 2005 LEVELS BY 2030(1) • Citrus County CCGT (DEF, 2018) and Western Carolinas Modernization Project (DEP, 2019) on track • Increasing solar generation in N.C. under HB 589 • Bids due Oct. 8 for first tranche of 680 MW • Projects

  11. Slide 11: Expanding natural gas infrastructure

    Expanding natural gas infrastructure • Atlantic Coast Pipeline (ACP) • FERC issued stop work order Aug. 10 • Made significant progress on construction prior to temporary work stoppage • Already working with key agencies to resolve issues so construction can resume as soon as possible • Awaiting Eros

  12. Slide 12: Committed to the strength of the balance sheet

    Committed to the strength of the balance sheet CREDIT UPDATES SUCCESSFULLY PRICED NEARLY ALL OF $2 BILLION EQUITY TARGET FOR 2018 • Increased clarity from DEC and DEP orders and regulatory treatment of tax reform drive Equity Priced Equity Issued improved credit metric forecast issuance YTD(1) Forwa

  13. Slide 13: Robust capital plan supports earnings base growth

    Robust capital plan supports earnings base growth 2016 - 2022 2018 - 2022 REGULATED ELECTRIC AND GROWTH CAPITAL PLAN GAS EARNINGS BASE(1) Electric 2021 EARNINGS BASE Distribution INCREASES BY ~$3.5 BILLION; 36% CAGR NOW 7% (UP FROM 6.1%)(2) Commercial $90 Renewables, 4% $87 $84 $37 LDC Infrastructur

  14. Slide 14: Strong customer growth and cost management support earning our allowed ROEs

    Strong customer growth and cost management support earning our allowed ROEs ADJUSTED ELECTRIC RESIDENTIAL GAS UTILITIES BOOK ROEs(2) GROWTH AND RETAIL RESIDENTIAL VOLUME TRENDS GROWTH TRENDS 10.0% 10.4% Carolinas ADJUSTING FOR LEAP YEAR 10.4% 2017 RETAIL ELECTRIC 9.75–10.25% SALES INCREASED BY 0.7%

  15. Slide 15: Managing regulatory activity

    Managing regulatory activity(1) Denotes modern recovery mechanism JURISDICTION 2017 2018 2019 2020 2021 2022 Complete – NC H.B. 589 rider – NC - Filed annually DEC Planned – SC Planning for multiple rate cases – NC / SC H.B. 589 rider – NC - Filed annually DEP Complete – NC Planning for multiple rat

  16. Slide 16: Update on regulatory activity

    Update on regulatory activity STATUS UPDATE KEY OUTCOMES  Resolved coal ash recovery  Deferred coal ash costs amortized over 5 years, with DUKE ENERGY full debt and equity return PROGRESS  Complete NORTH CAROLINA  Ongoing coal ash costs deferred with a full return(1) for consideration in future

  17. Slide 17: Continued clarity for tax reform across our state jurisdictions

    Continued clarity for tax reform across our state jurisdictions ELECTRIC & GAS UTILITIES MIDWEST SERVICE TERRITORIES Indiana  Riders incorporate lower tax rate as they are filed (Electric)  Settlement approved by Commission August 22 Ohio  Riders incorporate lower tax rate as they are filed (Elec

  18. Slide 18: Ongoing commitment to the dividend

    Ongoing commitment to the dividend 70 - 75% DUK ANNUALIZED EXPECTED DIVIDEND PER SHARE(2) PAYOUT RATIO THROUGH 2022(1) 4 - 6% ANNUAL DIVIDEND GROWTH ~75% $3.18 $3.30 $3.42 $3.56 $3.71 OF TSR ACHIEVED 2014 2015 2016 2017 2018 THROUGH DIVIDEND REINVESTMENT OVER LAST 20 YEARS (1) Based on adjusted dilu

  19. Slide 19: The leading energy infrastructure company

    The leading energy infrastructure company Large-scale U.S. electric and Constructive regulatory gas utility creating a cleaner jurisdictions in desirable energy future communities INVESTING IN INFRASTRUCTURE OUR CUSTOMERS VALUE. DELIVERING SUSTAINABLE GROWTH. Proven track record of Solid long-term i

  20. Slide 20: Appendix materials

    Appendix materials Item Slide(s) 2Q 2018 results 21-24 2018 guidance support 25-35 Financing plan 36-43 Regulatory overview 44-47 Tax reform summary 48-49 Segment overviews 50-53 Other information 54-58 DUKE ENERGY SUMMER UPDATE 2018 20

  21. Slide 21: 2Q2018 results

    2Q2018 results DUKE ENERGY SUMMER UPDATE 2018 21

  22. Slide 22: YTD 2017 - YTD 2018 adjusted diluted EPS waterfall

    YTD 2017 - YTD 2018 adjusted diluted EPS waterfall YTD 2018 Electric Utilities & Gas Utilities Commercial Other Weather Impact Infrastructure & Infrastructure Renewables $0.04 $0.01 $0.00 $2.32 ($0.11) $2.28revenues ▲ Higher retail $2.28 ▲ Favorable $0.23 from pricing and riders ▲ Customer growth se

  23. Slide 23: Electric utilities quarterly weather impacts

    Electric utilities quarterly weather impacts Weather segment 2018 2017 income to normal: Pretax impact Weighted avg. EPS impact(1) Pretax impact Weighted avg. EPS impact(1) diluted shares favorable / shares favorable / (unfavorable) (unfavorable) First Quarter $10 701 $0.01 ($175) 700 ($0.15) Second

  24. Slide 24: Weather normalized volume trends, by electric jurisdiction

    Weather normalized volume trends, by electric jurisdiction Rolling Twelve Months, as of Jun. 30, 2018 Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Electric Carolinas Progress Florida Indiana Ohio/Kentucky Utilities 2.8% 1.3% 1.5% 0.9% 1.1% 0.6% 0.8% 0.8% 0.8% 0.1% 0.3% 0.0% -0.3% -0.3

  25. Slide 25: 2018 guidance support

    2018 guidance support DUKE ENERGY SUMMER UPDATE 2018 25

  26. Slide 26: Duke Energy business segment structure

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

  27. Slide 27: Key 2018 adjusted earnings guidance assumptions

    Key 2018 adjusted earnings guidance assumptions ($ in millions) Original 2018 2018 YTD Assumptions (1) (thru 6/30/2018) Adjusted segment income/(loss) (2): Electric Utilities & Infrastructure $3,304 $1,527 Gas Utilities & Infrastructure $319 $186 Commercial Renewables $117 $58 Other ($383) ($216) Du

  28. Slide 28: Key 2018 earnings sensitivities

    Key 2018 earnings sensitivities Driver EPS Impact 1% change in earned return on equity +/- $0.45 Electric Utilities & $1 billion change in rate base +/- $0.07 Infrastructure 1% change in Electric Utilities volumes +/- $0.12 1% change in earned return on equity +/- $0.05 Gas Utilities & $200 million

  29. Slide 29: 2017 – 2018 adjusted diluted EPS waterfall

    2017 – 2018 adjusted diluted EPS waterfall Electric Utilities Gas Utilities Commercial 2017 Weather Other Share dilution & Infrastructure & Infrastructure Renewables $0.12 ($0.20) ($0.09) $0.20 $0.04 $0.06 ▲ New solar resources $4.55 - $4.85 ▲ Piedmont Integrity ▲ Normal wind $0.04 Management Riders

  30. Slide 30: Regulated utilities end of year earnings base

    Regulated utilities end of year earnings base(1) Electric Utilities Earnings Base ($ in billions) 2017A 2018E 2019E 2020E 2021E 2022E Duke Energy Carolinas $22.6 $23.9 $24.9 $26.0 $26.6 $27.6 Duke Energy Progress 15.7 16.9 17.9 18.6 19.3 20.2 Duke Energy Florida 12.0 13.3 14.5 15.5 16.5 17.2 Duke In

  31. Slide 31: Capital expenditures profile

    Capital expenditures profile(1) ($ in millions) Capital Expenditures 2017A 2018E 2019E 2020E 2021E 2022E 2018 - 2022 Electric Generation (2) $ 1,545 1,825 1,425 1,175 1,250 1,000 $ 6,675 Electric Transmission 994 950 1,350 1,100 1,075 1,100 5,575 Electric Distribution 1,478 2,125 2,625 2,850 2,600 2

  32. Slide 32: Capital expenditures by utility

    Capital expenditures by utility(1) ($ in millions) Duke Energy Carolinas 2017A 2018E 2019E 2020E 2021E 2022E 2018 - 2022 Electric Generation $ 461 $ 500 $ 600 $ 475 $ 400 $ 350 $ 2,325 Electric Transmission 78 175 250 225 200 225 1,075 Electric Distribution 639 825 925 1,025 1,025 1,200 5,000 (2) En

  33. Slide 33: Capital expenditures by utility (continued)

    Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy Florida 2017A 2018E 2019E 2020E 2021E 2022E 2018 - 2022 Electric Generation $ 565 $ 400 $ 250 $ 400 $ 375 $ 125 $ 1,550 Electric Transmission 358 275 525 550 475 475 2,300 Electric Distribution 258 325 425 450 400 400 2,000 E

  34. Slide 34: Capital expenditures by utility (continued)

    Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy OH/KY Electric 2017A 2018E 2019E 2020E 2021E 2022E 2018 - 2022 Electric Generation $ 11 $ 25 $ 25 $ - $ - $ - $ 50 Electric Transmission 274 175 175 125 75 75 625 Electric Distribution 64 300 350 350 300 275 1,575 (2) Environ

  35. Slide 35: Environmental compliance expenditures by category

    Environmental compliance expenditures by category ($ in millions) Total Project Spend 2018 – 2022 Coal Ash Closure Costs Category 2018 – 2022 Costs To Date(2) Plan Air (MATS) $110 Duke Energy Carolinas $2,490 $725 $740 Water (316b) $390 Duke Energy Progress $2,630 $500 $1,260 Waste (conversions)(1)

  36. Slide 36: Financing plan

    Financing plan DUKE ENERGY SUMMER UPDATE 2018 36

  37. Slide 37: 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 Progress Florida Gas Commercial Paper and LT Financings Duke Energy Duke Energy Renewables Money

  38. Slide 38: Credit ratings

    Credit ratings (as of August 6, 2018) Holding Companies Operating Companies Moody's S&P Fitch Moody's S&P DUKE ENERGY Stable Stable Negative DUKE ENERGY CAROLINAS Stable Stable Senior Unsecured Debt Baa1 BBB+ BBB+ Senior Secured Debt Aa2 A Senior Unsecured Debt A1 A- Commercial Paper P-2 A-2 F-2 DUK

  39. Slide 39: Credit metrics

    Credit metrics(1) Committed to maintaining quality, investment-grade ratings FFO/Debt (2) 29% 26% 26% 26% 24% 24% 22% 22% 21% 22% 21% 22% 21% 21% 19% 18% 18% 15% 14% 15% 14% 2016A 2017A 2018E 2016A 2017A 2018E 2016A 2017A 2018E 2016A 2017A 2018E 2016A 2017A 2018E 2016A 2017A 2018E 2016A 2017A 2018E

  40. Slide 40: 2018 financing plan as of June 30, 2018

    2018 financing plan as of June 30, 2018 (1)(2) ($ in millions) $2,500 $2,000 $1,500 $1,000 $500 $- Duke Duke Duke Duke Duke Piedmont Commercial Energy Energy Energy Energy Energy Natural Gas Renewables Corporation Carolinas Progress Florida Kentucky 2018 Maturities and Debt Reduction / Expected/Comp

  41. Slide 41: 2018 long-term debt financing activity as of June 30, 2018

    2018 long-term debt financing activity as of June 30, 2018 Credit Ratings Amount Entity Date Issued (M/S&P/F, unless Term Type Rate ($ in millions) otherwise noted) $500 DE Carolinas March 2018 Aa2/A 5-Year First Mortgage Bond Fixed – 3.05% $500 DE Carolinas March 2018 Aa2/A 30-Year First Mortgage B

  42. Slide 42: Liquidity summary as of June 30, 2018

    Liquidity summary as of June 30, 2018 ($ in millions) Duke Duke Duke Duke Duke Duke Duke Piedmont Energy Energy Energy Energy Energy Energy Energy Natural Corp. Carolinas Progress Florida Indiana Ohio Kentucky Gas Total Master Credit Facility (1) $ 2,650 $ 1,750 $ 1,250 $ 800 $ 600 $ 300 $ 150 $ 500

  43. Slide 43: Long-term debt maturities

    Long-term debt maturities(1) $3,238 $3,100 $160 $170 $2,912 $174 Regulated Utilities Maturities Detail ($ in millions) 2018 2019 2020 $1,438 $2,228 $2,180 Duke Energy Carolinas (2) $ 1,204 $5 $ 905 Duke Energy Progress (2) 3 603 304 Duke Energy Florida (2) (3) 715 216 518 Duke Energy Indiana 2 60 50

  44. Slide 44: Regulatory overview

    Regulatory overview DUKE ENERGY SUMMER UPDATE 2018 44

  45. Slide 45: Current electric rate information by jurisdiction

    Current electric rate information by jurisdiction North South Ohio Kentucky Florida Indiana Carolina Carolina (Electric) (Electric) $13.5 B (1) (DEC) $4.2 B (1) (DEC) Retail Rate Base $11.5B (2) $7.0 B (3) $1.3 B (4) $650 M (5) $8.2 B (1) (DEP) $1.3 B (1) (DEP) $1.7 B (DEC) 1Q 2018 $0.5 B Wholesale

  46. Slide 46: Current electric rate information by jurisdiction (continued)

    Current electric rate information by jurisdiction (continued) General Rate Case Provisions North South Ohio Kentucky Florida Indiana Carolina Carolina (Electric) (Electric) Notice of Intent Required? Yes Yes Yes Yes (1) Yes Yes Notice Period 30 Days 30 Days 60 Days Varies 30 Days 28 Days Historical

  47. Slide 47: Current gas rate information by jurisdiction

    Current gas rate information by jurisdiction North South Ohio Kentucky Tennessee Carolina Carolina (Gas) (Gas) Rate Base ($M) $1,822 $304 $349 $900 (1) $200 (2) Allowed ROE 10.0% 10.2% 10.2% 9.84% 10.38% Allowed Equity 50.7% 53.0% 52.7% 53.3% 50.8% Effective Date of 1/1/14 11/1/17 (3) 3/1/12 12/1/13

  48. Slide 48: Tax reform summary

    Tax reform summary DUKE ENERGY SUMMER UPDATE 2018 48

  49. Slide 49: Tax reform: regulatory activity and timeline

    Tax reform: regulatory activity and timeline Riders in all jurisdictions include the lower federal income tax rate as they are updated/filed Proposed/Approved Treatment of: Amortization period for Status Docket Lower tax rate EDIT Unprotected EDIT Utilizing tax reform to offset Hurricane Irma costs,

  50. Slide 50: Segment Overviews

    Segment Overviews DUKE ENERGY SUMMER UPDATE 2018 50

  51. Slide 51: Electric Utilities and infrastructure

    Electric Utilities and infrastructure A portfolio of attractive utilities in constructive jurisdictions COMPETITIVE REGULATED ELECTRIC EIGHT UTILITIES IN 2017 EARNINGS BASE CUSTOMER RATES HIGH-QUALITY Avg. ¢/kWh Retail Rates DEO - Electric DEK - Electric REGIONS OF THE U.S. (12 mos. ending 6/30/17)(

  52. Slide 52: Gas Utilities and Infrastructure – at a glance

    Gas Utilities and Infrastructure – at a glance GAS UTILITIES WITH LOW ATLANTIC COAST PIPELINE VOLUMETRIC EXPOSURE DUE TO TO BRING SIGNIFICANT GAS SUPPLY TO MOSTLY FIXED MARGINS… UNDERSERVED EASTERN 13% CAROLINAS • 47% joint owner 12% • Targeting Q4 2019 in service 75% 87% • Potential for additional

  53. Slide 53: Commercial and Regulated Renewables asset locations

    Commercial and Regulated Renewables asset locations(1) (1) A full list of generation facilities can be found at https://www.duke-energy.com//_/media/pdfs/our-company/investors/duke-energy-generation-portfolio.pdf DUKE ENERGY SUMMER UPDATE 2018 53

  54. Slide 54: Other information

    Other information DUKE ENERGY SUMMER UPDATE 2018 54

  55. Slide 55: Upcoming events

    Upcoming events Event Date 3Q 2018 earnings call (tentative) November 2, 2018 EEI Financial Conference November 11-13, 2018 DUKE ENERGY SUMMER UPDATE 2018 55

  56. Slide 56: Investor relations contact information

    Investor relations contact information MIKE CALLAHAN, VICE PRESIDENT INVESTOR RELATIONS  Michael.Callahan@duke-energy.com  (704) 382-0459 MIKE SWITZER, DIRECTOR INVESTOR RELATIONS  Mike.Switzer@duke-energy.com  (704) 382-6473 ABBY MOTSINGER, MANAGER INVESTOR RELATIONS  Abby.Motsinger@duke-energ

  57. Slide 57: Safe Harbor statement

    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 o

  58. Slide 58: For additional information on Duke Energy, please visit

    For additional information on Duke Energy, please visit: www.duke-energy.com/investors DUKE ENERGY SUMMER UPDATE 2018 58

  59. Slide 59: Non-GAAP Reconciliations 2018 Summer Update

    Duke Energy Corporation Non-GAAP Reconciliations 2018 Summer Update Adjusted Diluted Earnings per Share (EPS) The materials for Duke Energy Corporation’s (Duke Energy) 2018 Summer Update include a discussion of adjusted diluted EPS for the year-to-date periods ended June 30, 2018 and 2017 and the ye

  60. Slide 60: Non-GAAP Reconciliations (continued)

    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 settlements, the impact of re

  61. Slide 61: Dividend Payout Ratio

    Dividend Payout Ratio The materials for Duke Energy’s 2018 Summer Update include a discussion of Duke Energy’s forecasted dividend payout ratio of 70% - 75% through 2022 based upon adjusted diluted EPS. This payout ratio is a non-GAAP financial measure as it is based upon forecasted diluted EPS from

  62. Slide 62: Available Liquidity

    Available Liquidity The materials for Duke Energy’s 2018 Summer Update include a discussion of Duke Energy’s available liquidity balance as of June 30, 2018. The available liquidity balance presented is a non-GAAP financial measure as it represents Cash and cash equivalents, excluding amounts held i

  63. Slide 63: Reported to adjusted earnings reconciliation, six months ended June 30, 2018

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Six Months Ended June 30, 2018 (Dollars in millions, except per-share amounts) Special Items Costs to Regulatory Impairment Achieve and Sale of of Equity Impacts Reported Piedmont Legislative Retired Method of the Discontinued Tota

  64. Slide 64: Reported to adjusted earnings reconciliation, six months ended June 30, 2017

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Six Months Ended June 30, 2017 (Dollars in millions, except per-share amounts) Special Item Reported Costs to Achieve Discontinued Total Adjusted Earnings Piedmont Merger Operations Adjustments Earnings SEGMENT INCOME Electric Util

  65. Slide 65: Reported to adjusted earnings reconciliation, twelve months ended December 31, 2017

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Twelve Months Ended December 31, 2017 (Dollars in millions, except per-share amounts) Special Items Costs to Achieve Commercial Reported Piedmont Regulatory Renewables Impacts of Discontinued Total Adjusted Earnings Merger Settleme

  66. Slide 66: Adjusted effective tax reconciliation June 2018

    DUKE ENERGY CORPORATION ADJUSTED EFFECTIVE TAX RECONCILIATION June 2018 (Dollars in millions) Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 Balance Effective Tax Rate Balance Effective Tax Rate Reported Income From Continuing Operations Before Income Taxes $ 607 $ 1,410 Costs to Ac

  67. Slide 67: Adjusted book return on equity, December 31, 2017

    DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2017 dollars in millions Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Ohio Reportable Carolinas Progress Total Carolinas Florida Indiana Segments Piedmont Reported Net Income 2017 $ 1,214 $

  68. Slide 68: Adjusted book return on equity, December 31, 2016

    DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2016 dollars in millions Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Ohio Reportable Piedmont Natural Carolinas Progress Total Carolinas Florida Indiana Segments Gas (4) Reported Net Incom

  69. Slide 69: Adjusted book return on equity, December 31, 2015

    DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2015 dollars in millions Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Ohio Reportable Piedmont Natural Carolinas Progress Total Carolinas Florida Indiana Segments Gas (4) Reported Net Incom

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

    FFO to Debt Calculation Duke Energy Corporation (in millions) Years Ended December 31, 2017 2016 Actual Actual Cash From Operations $ 6,634 $ 6,817 Working capital adjustment (1) 740 (394) Capitalized Interest (128) (100) CR3 securitization adjustment (53) (35) Other 20 19 Funds From Operations 7,21

  71. Slide 71: FFO to Debt Calculation Duke Energy Carolinas

    FFO to Debt Calculation Duke Energy Carolinas (in millions) Years Ended December 31, 2017 2016 Actual Actual Cash From Operations $ 2,634 $ 2,976 Working capital adjustment (1) (54) (333) Capitalized Interest (45) (38) Funds From Operations 2,535 2,605 ARO spend 271 287 ARO spend, net of tax at 38%

  72. Slide 72: FFO to Debt Calculation Duke Energy Progress

    FFO to Debt Calculation Duke Energy Progress (in millions) Years Ended December 31, 2017 2016 Actual Actual Cash From Operations $ 1,195 $ 1,932 Working capital adjustment (1) 520 (502) Capitalized Interest (21) (17) Other 3 2 Funds From Operations 1,697 1,415 ARO spend 192 212 ARO spend, net of tax

  73. Slide 73: FFO to Debt Calculation Duke Energy Florida

    FFO to Debt Calculation Duke Energy Florida (in millions) Years Ended December 31, 2017 2016 Actual Actual Cash From Operations $ 1,028 $ 844 Working capital adjustment (1) 216 252 Capitalized Interest (24) (14) CR3 securitization adjustment (53) (35) Other 14 13 Funds From Operations 1,181 1,060 AR

  74. Slide 74: FFO to Debt Calculation Duke Energy Indiana

    FFO to Debt Calculation Duke Energy Indiana (in millions) Years Ended December 31, 2017 2016 Actual Actual Cash From Operations $ 969 $ 871 Working capital adjustment (1) (102) 132 Capitalized Interest (9) (7) Funds From Operations 858 996 ARO spend 45 46 ARO spend, net of tax at 38% 28 29 FFO exc.

  75. Slide 75: FFO to Debt Calculation Duke Energy Ohio

    FFO to Debt Calculation Duke Energy Ohio (in millions) Years Ended December 31, 2017 2016 Actual Actual Cash From Operations $ 479 $ 425 Working capital adjustment (1) 15 15 Capitalized Interest (10) (8) Funds From Operations 484 432 ARO spend 7 5 ARO spend, net of tax at 38% 4 3 FFO exc. coal ash s

  76. Slide 76: FFO to Debt Calculation Piedmont Natural Gas

    FFO to Debt Calculation Piedmont Natural Gas (in millions) Years Ended December 31, October 31, 2017 2016 Actual Actual Cash From Operations $ 329 $ 308 Working capital adjustment (1) 125 101 Capitalized Interest 12 2 Funds From Operations 466 411 ARO spend - 6 ARO spend, net of tax at 38% - 4 FFO e

  77. Slide 77: Available Liquidity Reconciliation as of June 30, 2018

    Duke Energy Corporation Available Liquidity Reconciliation As of June 30, 2018 (In millions) Cash and Cash Equivalents $ 304 Less: Certain Amounts Held in Foreign Jurisdictions (6) Less: Unavailable Domestic Cash (76) 222 Plus: Remaining Availability under Master Credit Facilities and other faciliti

Duke Energy — Investor Presentation (August 2018) on 6ix