Duke Energy Corporation (holding Company) · NYSE:DUK
Duke Energy Corporation (holding Company) — Q2 2012 Earnings Presentation
74 slides from Duke Energy Corporation (holding Company)'s earnings presentation, Aug 2, 2012
Slide 1: Second Quarter 2012 Earnings Review and Business Update
SECOND QUARTER 2012 Earnings Review and Business Update August 2, 2012 Jim Rogers Chairman, President and Chief Executive Officer Lynn Good Executive Vice President and Chief Financial Officer
Slide 2: Safe Harbor Statement
SAFE HARBOR 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. These forward-look
Slide 3: Topics for Today's Call
TOPICS FOR TODAY’S CALL Delivering on our commitments Status of merger integration Crystal River 3 and major construction projects update 2Q-2012 earnings review and financial update Regulated utility customer volume trends Financial impacts of merger Financial objectives Second Quarter Earni
Slide 4: Delivering on Our Commitments
DELIVERING ON OUR COMMITMENTS Complete major Continue capital projects operational and address excellence of Crystal River 3 fleet and grid next steps Deliver Obtain merger benefits constructive for all regulatory stakeholders Achieve outcomes Financial Objectives Second Quarter Earnings Review and
Slide 5: Highly Experienced Leadership Team
HIGHLY EXPERIENCED LEADERSHIP TEAM Board of Directors (15 Members) Jim Rogers Chairman, President and CEO Lynn Good Chief Financial Officer Dhiaa Jamil Keith Trent Nuclear Generation Regulated Utilities Marc Manly General Counsel Jeff Lyash Lloyd Yates Energy Supply Customer Operations Lee Mazzocchi
Slide 6: Merger Integration Update
MERGER INTEGRATION UPDATE Non-Fuel O&M Run-Rate Non-Fuel O&M Synergies Key Initiatives Focus Area Release ~1,100 employees through Voluntary Functional Severance Program Consolidation Complete staffing process by December 2012 Supply Rationalize real estate portfolio Chain Operational Consol
Slide 7: Other Merger Commitments
OTHER MERGER COMMITMENTS Joint Dispatch and Fuel Savings FERC Interim Mitigation Plan Guaranteed ~$650MM in joint dispatch and Virtual Divestiture fuel savings in the Carolinas over 5 years Firm capacity and energy sales occurring since July 2 ~50/50 split between joint dispatch and fuel P
Slide 8: Crystal River Update
CRYSTAL RIVER 3 UPDATE URS Corporation selected in May 2012 as preferred vendor to develop the engineering plan for repair Final decision to repair or retire the plant has not been made Entered into non-binding mediation with NEIL that is expected to occur in 4Q 2012 Crystal River Unit 3 Nucle
Slide 9: Status of Major Construction Projects
STATUS OF MAJOR CONSTRUCTION PROJECTS1 (As of 6/30/2012) EDWARDSPORT CLIFFSIDE DAN RIVER CC LEE CC SUTTON CC (Wayne County) $25 Spent as of 6/30/2012 $50 Estimated expenditures to $3,275 complete project $2,150 $135 $125 $625 $250 $575 $350 Duke Duke Duke Progress Progress Jurisdiction Indiana Carol
Slide 10: 2Q-2012 Earnings Summary and Drivers
2Q-2012 EARNINGS SUMMARY AND DRIVERS Adjusted Diluted EPS 2Q-2012 Primary Adjusted Segment Income Drivers USFE&G +$40 million +$0.09 ▲Implementation of new Carolinas rates +$0.14 ▲Lower O&M and governance costs, primarily +$0.08 due to prior year storms ▲Riders and energy efficiency +$0.03 $2.17 $2.
Slide 11: USFE&G Weather-Normal Volume Trends
USFE&G WEATHER-NORMAL VOLUME TRENDS 2Q-2012 weather-normalized load growth showed modest improvement Industrial load continues its recent strength Automotive and heavy machinery sectors remain strong Weakness in primary and fabricated metals sector in Midwest and textiles in Carolinas Resi
Slide 12: Updated 2012 Adjusted Diluted EPS Guidance Range
UPDATED 2012 ADJUSTED DILUTED EPS GUIDANCE RANGE Continue to target 2012 adjusted diluted EPS guidance $1.22 $1.23 range of $4.20 - $4.35 $4.20 – $4.20 – $4.35 $4.35 Merger expected to result in incremental goodwill of ~$12 billion Expect accounting charges (2) Original 2012 Merger Impacts & I
Slide 13: Financial Objectives
FINANCIAL OBJECTIVES Current year Long-term Balance Dividend earnings earnings sheet growth guidance growth strength Achieve earnings Target long-term Continue growing Maintain strong, guidance range of adjusted diluted the dividend within investment- $4.20 - $4.351 EPS growth of a 65% - 70% tar
Slide 14: Appendix Materials
APPENDIX MATERIALS Item Slides Key 2012 Assumptions 15-19 Duke Energy 2Q-2012 Earnings Supplement 20-34 Duke Energy Overview 35-37 Additional Financial Information 38-44 Environmental Overview 45-50 Progress Energy 2Q-2012 Earnings Supplement 51-55 Second Quarter Earnings Review and Business Update
Slide 15: Key 2012 Assumptions
KEY 2012 ASSUMPTIONS Second Quarter Earnings Review and Business Update August 2, 2012 15
Slide 16: Business Segment Structure
BUSINESS SEGMENT STRUCTURE DUKE ENERGY U.S. FRANCHISED COMMERCIAL ELECTRIC AND GAS INTERNATIONAL POWER North and South Duke Energy Duke Carolinas Carolina Renewables North and South Duke Energy Progress Carolinas Carolina Retail Progress Florida Florida Duke Indiana Indiana Ohio T&D Midwest Coal Gen
Slide 17: Update on Key 2012 Assumptions
UPDATE ON KEY 2012 ASSUMPTIONS ($ in Millions) Duke Standalone Impact of 2012 Assumptions, 2012 YTD 2012 Progress Merger including Progress (thru 6/30/12)2 Assumptions and Updates1 Merger1 Adjusted Segment Income: USFE&G $1,485 $605 $2,090 $681 Commercial Power $80 $20 $100 $62 International $410 $1
Slide 18: Capital Expenditure Profile
CAPITAL EXPENDITURE PROFILE Duke Standalone 2012 Impact of Progress 2012 Assumptions, 1 1 Assumptions Merger and Updates including Progress Merger ($ in Millions) Edwardsport IGCC $ 150 $ - $ 150 Cliffside 150 - 150 CC / CT Additions 200 150 350 Grid Modernization 125 50 175 Transmission & Distribut
Slide 19: Select FE&G Capital Expenditures, by Legal Entity
SELECT FE&G CAPITAL EXPENDITURES, BY LEGAL ENTITY Duke Standalone 2012 Impact of Progress 2012 Assumptions, 1 1 Assumptions Merger and Updates including Progress Merger ($ in Millions) Environmental Duke Carolinas $ 25 $ - $ 25 Progress Carolinas - 20 20 Florida - 30 30 Indiana 175 (100) 75 Kentucky
Slide 20: Duke Energy 2Q-2012 Earnings Supplement
DUKE ENERGY 2Q-2012 EARNINGS SUPPLEMENT Second Quarter Earnings Review and Business Update August 2, 2012 20
Slide 21: US Franchised Electric and Gas
US FRANCHISED ELECTRIC AND GAS Reported & Adjusted Segment Income 2Q12 2Q11 YTD 2012 YTD 2011 ($ in Millions) Reported Segment Income $ 337 $ 297 $473 $638 Adjustments -- -- 208 -- Adjusted Segment Income $ 337 $ 297 $681 $638 USFE&G Adjusted Segment Income YTD 2012 vs. YTD 2011 Drivers (in millions
Slide 22: Normalized Volume Trends – USFE&G
NORMALIZED VOLUME TRENDS – USFE&G Residential Commercial Change vs. Prior Year Quarter Change vs. Prior Year Quarter 1.6% 1.2% 0.3% 0.3% 0.5% 0.8% 1.0% 0.6% 0.2% -0.6% -0.1% -0.7% 2Q11 3Q11 4Q11 1Q12 2Q12 2012 Plan 2Q11 3Q11 4Q11 1Q12 2Q12 2012 Plan Industrial USFE&G Total Change vs. Prior Year Quar
Slide 23: Maintain Focus on Operational Performance
MAINTAIN FOCUS ON OPERATIONAL PERFORMANCE1 Nuclear Generation Capacity Factor Fossil Generation Commercial Availability 100% 100% 90% 90% 80% 80% 70% 70% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2012 Year-End Target Actual 2012 Year-End Target Actual Nuclear Total Operating Cost – $/MWh Total Fossil Production Costs
Slide 24: USFE&G Quarterly Weather Impacts
USFE&G QUARTERLY WEATHER IMPACTS (EPS Impact) Weather Segment Income to Normal: 2012 2011 First Quarter ($0.11) $0.01 Second Quarter $0.03 $0.08 Third Quarter $0.12 Fourth Quarter ($0.08) Year-to-Date ($0.08) $0.13 Note: Favorable/(Unfavorable); Amounts may not foot due to rounding Key Weather Data
Slide 25: Crystal River Unit 3 Nuclear Outage
CRYSTAL RIVER UNIT 3 NUCLEAR OUTAGE (As of 6/30/2012) Florida Public Service Commission unanimously approved No NEIL receivable recorded associated with the comprehensive settlement agreement which provides second delamination regulatory recovery guidelines related to unit Accounting standards
Slide 26: Overview of Duke Energy Ohio Rate Cases
OVERVIEW OF DUKE ENERGY OHIO RATE CASES Electric Distribution Rate Case Highlights Retail revenue increase requested ~$87 MM (5.1%) Proposed rate base ~$1.1 B Return on equity requested 10.6% Equity component of capital structure 53% Rates expected to be in effect 2Q 2013 Gas Distribution Rate Case
Slide 27: Near-Term Rate Cases to Recover Costs
NEAR-TERM RATE CASES TO RECOVER COSTS (As of 8/2/12) Jurisdiction 2012 2013 Status DEC – North Carolina File Second Half 2012 DEC – South Carolina File Second Half 2012 PEC – North Carolina File Second Half 2012 PEC – South Carolina Under the settlement agreement approved by the FPSC, PEF will not p
Slide 28: Regulatory Overview
REGULATORY OVERVIEW (As of 8/2/12) CURRENT RATE INFORMATION North South Ohio Kentucky Florida Indiana Carolina Carolina Electric Gas Electric Gas Current Rate Base $7.2B (PEC) $10.6B $5.6B $1.3B (2) $700M $600M (3) $200M (4) in Rates $14.5B (1) (DEC) 10.63% N/A N/A 12.75% (PEC) 12.75% (PEC) Current
Slide 29: Regulatory Overview, Cont.
REGULATORY OVERVIEW, CONT. (As of 8/2/12) RATE CASE FILING REQUIREMENTS North South Ohio Kentucky Carolina Carolina Florida Indiana Electric Gas Electric Gas Notice of Intent Yes Yes Yes Yes Yes Yes Yes Yes Required? 30 Days 28 Days 28 Days Notice Period 30 Days 30 Days 30 Days Varies 30 Days Partia
Slide 30: Duke Ohio Competitive Auction Schedule and Results
DUKE OHIO COMPETITIVE AUCTION SCHEDULE AND RESULTS* Delivery Period Begins # Tranches to Clearing Auction Date Contract Duration Procure Price Jan 2012 June 2013 June 2014 17 Months 33 $49.72 33 Dec-11 29 Months 33 $51.10 33 33 41 Months 34 $57.08 34 34 34 May-12 24 months 17 $52.14 17 17 No
Slide 31: International
INTERNATIONAL Reported & Adjusted Segment Income 2Q12 2Q11 YTD 2012 YTD 2011 ($ in Millions) Reported Segment Income $ 105 $ 127 $ 247 $ 255 Adjustments -- -- -- -- Adjusted Segment Income $ 105 $ 127 $ 247 $ 255 International Adjusted (in millions) Segment Income YTD 2012 vs. YTD 2011 Drivers $175
Slide 32: Commercial Power
COMMERCIAL POWER Reported & Adjusted Segment Income 2Q12 2Q11 YTD 2012 YTD 2011 ($ in Millions) Reported Segment Income $ 28 $ 30 $ 59 $ 79 Adjustments 4 -- 3 3 Adjusted Segment Income $ 32 $ 30 $ 62 $ 82 Commercial Power Adjusted YTD 2012 vs. YTD 2011 Drivers (in millions) Segment Income Adjusted s
Slide 33: Duke Energy Ohio – PJM Capacity Auction Results
DUKE ENERGY OHIO – PJM CAPACITY AUCTION RESULTS 6,500 $132 $150 Capacity Price per MW-day PJM Capacity Price Capacity Offered (MW) $125 Planning Year per MW-day 6,000 $85 $100 2011 / 2012 $110 $75 $55 2012 / 2013 $16 5,500 $50 $23 2013 / 2014 $28 $25 2014 / 2015 $126 5,000 $- 2015 / 2016 $136 2012 2
Slide 34: Other
OTHER Reported & Adjusted Income (Loss) 2Q12 2Q11 YTD 2012 YTD 2011 ($ in Millions) Reported Net Expense $ (25) $ (19) $ (41) $ (26) Adjustments 7 4 13 13 Adjusted Net Expense $ (18) $ (15) $ (28) $ (13) Other Adjusted Income (Loss) YTD 2012 vs. YTD 2011 Drivers $50 (in millions) Adjusted segment in
Slide 35: Duke Energy Overview
DUKE ENERGY OVERVIEW Second Quarter Earnings Review and Business Update August 2, 2012 35
Slide 36: Duke Energy Overview
DUKE ENERGY OVERVIEW (Pro Forma as of 6/30/2012) US Franchised Electric and Gas (Regulated) Commercial Businesses (Non-Regulated) Midwest generation – 6,919 MW Wind – 1,072 MW Solar – 56 MW Equity investment in National Methanol (NMC) – Saudi Arabia Guatemala 366 MW El Salvador 296 MW Ecuador 163 MW
Slide 37: Duke Energy Overview, Cont.
DUKE ENERGY OVERVIEW, CONT. (Pro Forma as of 6/30/2012) Duke Energy Business Mix1 Duke Energy U.S. Generation Mix2 4% 16% By Owned Regulated 40% 16% 36% 8% 90% Capacity International By Actual 51% 29% 18% Generation Commercial Power Coal Nuclear -10% Other Gas/Oil Hydro/Renewables Regulated Business
Slide 38: Additional Financial Information
ADDITIONAL FINANCIAL INFORMATION Second Quarter Earnings Review and Business Update August 2, 2012 38
Slide 39: Disclosure Timeline
DISCLOSURE TIMELINE 3Q-2012 1Q-2013 Earnings Call Analyst Day Long-Term Growth Rate Significant Long-Term Growth Drivers 2013 Adjusted Diluted EPS Guidance Range Significant Year-Over-Year Earnings Drivers 2013 Net Income by Business Segment 2013 Load Growth Assumptions 2013 Cash Flows and Financing
Slide 40: 2012 Summary Cash Flows and Financing Plan
2012 SUMMARY CASH FLOWS AND FINANCING PLAN ($ in Millions) 2012E Primary Sources: Expected 2012 Financing Plan Adjusted Net Income (1) $ 2,450 Estimated Debt Estimated Debt Depreciation & Amortization 2,660 ($ in Millions) Issuances -- Completed Issuances -- (3) (4) Deferred and Accrued Taxes 1,130
Slide 41: Dividend Policy
DIVIDEND POLICY Duke Energy dividend policy DUK Annual Dividend Per Share History Continued growth in dividend at a rate slower than growth of adjusted diluted EPS $3.06 $3.00 $2.94 Targeting a long-term payout range of 65% $2.88 to 70% of adjusted diluted EPS $2.76 $2.64 Dividend supported by s
Slide 42: Duke Energy Liquidity
DUKE ENERGY LIQUIDITY Liquidity (Pro Forma as of June 30, 2012) ($ in millions) Duke DE PE DE DE DE Energy Carolinas Carolinas PE Florida Indiana Ohio Kentucky Total Master Credit Facility (1) $ 1,750 $ 1,250 $ 750 $ 750 $ 750 $ 650 $ 100 $ 6,000 Regional Bank Credit Facility (2) 100 100 - - - - - 2
Slide 43: Simplified Financing Structure
SIMPLIFIED FINANCING STRUCTURE Duke Energy (HoldCo) Cinergy Corp. Duke Energy Progress Energy (HoldCo) International (HoldCo) * Duke Energy Duke Energy Duke Energy Progress Energy Progress Energy Carolinas Ohio Indiana Carolinas Florida Duke Energy Duke Energy Renewables and Kentucky Other Commercia
Slide 44: Credit Ratings
CREDIT RATINGS (As of 8/2/2012) Fitch Moody's S&P DUKE ENERGY Stable Stable Negative Corporate Credit Rating / Issuer Rating BBB+ Baa2 BBB+ Senior Unsecured Debt BBB+ Baa2 BBB Commercial Paper F-2 P-2 A-2 PROGRESS ENERGY Stable Stable Negative Senior Unsecured Debt BBB Baa2 BBB DUKE CAROLINAS Stable
Slide 45: Environmental Overview
ENVIRONMENTAL OVERVIEW Second Quarter Earnings Review and Business Update August 2, 2012 45
Slide 46: Pending Environmental Regulations
PENDING ENVIRONMENTAL REGULATIONS Rule Overview Potential Impacts to Duke Energy Utility boiler Maximum Achievable Control Technology (MACT) rule Additional air emissions control regulating Hazardous Air Pollutants (e.g., mercury & non-mercury HAPs) equipment Mercury and Air EPA published fina
Slide 47: Pending EPA Regulations Will Impact U.S. Generation
PENDING EPA REGULATIONS WILL IMPACT U.S. GENERATION Major Regulations Duke Energy Domestic Generation (6/30/12 Pro Forma) Considerations for EPA Coal Combustion Coal Generation Profile Transition period must Residuals Rule TODAY – 23.0 GW (1) POST MODERNIZATION (2) – 20.2 GW be reasonable to allow
Slide 48: Positioning Our Coal Fleet for EPA Regulations
POSITIONING OUR COAL FLEET FOR EPA REGULATIONS Coal Generation Profile – Pro Forma as of 6/30/12 Plans for Coal Generation Without Controls Duke Carolinas Riverbend ~450MW potential to be retired by 2015 ~7.0 GW 3.4 GW 2.5 GW 1.1 GW Lee ~370MW potential to convert to gas or retire by 2015 Buck
Slide 49: Duke Energy Steam Facility Data
DUKE ENERGY STEAM FACILITY DATA (Pro Forma as of 6/30/12) Owned Capacity – Structure Operating State Jurisdiction Steam Unit Facility Summer Rating (MW) Fuel Type Current Cooling Method Emissions Controls Regulated In Operation DE Carolinas Allen 1,127 Coal Once-Through Scrubber Regulated In Operati
Slide 50: Duke Energy Steam Facility Data, Cont.
DUKE ENERGY STEAM FACILITY DATA, CONT. (Pro Forma as of 6/30/12) Owned Capacity – Structure Operating State Jurisdiction Steam Unit Facility Summer Rating (MW) Fuel Type Current Cooling Method Emissions Controls Regulated In Operation DE Indiana Cayuga 1,005 Coal Once-Through Scrubber Regulated In O
Slide 51: Progress Energy 2Q-2012 Earnings Supplement
PROGRESS ENERGY 2Q-2012 EARNINGS SUPPLEMENT Second Quarter Earnings Review and Business Update August 2, 2012 51
Slide 52: Progress Energy 2Q-2012 Earnings Summary
PROGRESS ENERGY 2Q-2012 EARNINGS SUMMARY Ongoing EPS $0.71 $0.48 $0.37 $0.29 $0.27 Corporate & $0.14 Other Carolinas Florida Consolidated ($0.14) ($0.16) 2Q 2011 2Q 2012 GAAP Net Income & Ongoing Earnings ($ in Millions) 2Q12 2Q11 YTD 2012 YTD 2011 GAAP Net Income $ 63 $ 176 $ 213 $ 360 Adjustments*
Slide 53: Progress Energy 2Q-2012 Ongoing EPS Drivers
PROGRESS ENERGY 2Q-2012 ONGOING EPS DRIVERS1 $0.02 ($0.23) $0.80 $0.02 $0.04 $0.71 D & A: ($0.02) – PEC ($0.10) – PEF primarily due to the prior year reduction in the cost of removal component of amortization expense ($0M vs. $54M prior year) $0.60 ($0.12) O & M: ($0.18) – PEC primarily due to an ad
Slide 54: Progress Energy YTD-2012 Ongoing EPS Drivers
PROGRESS ENERGY YTD-2012 ONGOING EPS DRIVERS1 $1.80 $1.60 $0.04 $0.03 ($0.31) D & A: $0.09 ($0.04) – PEC $1.40 ($0.15) – PEF primarily due to the smaller reduction in the cost of removal component of amortization $1.40 expense ($58M vs. $134M prior year) ($0.19) $1.20 O & M: ($0.19) ($0.34) – PEC pr
Slide 55: Progress Energy 2Q-2012 Retail Volumes
PROGRESS ENERGY 2Q-2012 RETAIL VOLUMES Progress Energy Carolinas Progress Energy Florida Residential -8.7% -0.4% Residential -6.3% 1.0% -0.6% -4.3% Commercial 2.2% Commercial -1.7% 0.8% -7.2% Industrial 0.8% Industrial -7.2% -3.0% -5.4% Total Retail 1.0% Total Retail -0.7% -10% -8% -6% -4% -2% 0% 2%
Slide 56: Second Quarter Earnings Review and Business Update August 2, 2012
Second Quarter Earnings Review and Business Update August 2, 2012 56 56
Slide 57: Duke Energy Corporation Non-GAAP Reconciliations
Duke Energy Corporation Non-GAAP Reconciliations Second Quarter Earnings Review & Business Update August 2, 2012 Adjusted Diluted Earnings per Share (“EPS”) The materials for Duke Energy Corporation’s (“Duke Energy”) Second Quarter Earnings Review and Business Update on August 2, 2012 include a disc
Slide 58: Non-GAAP Reconciliations (continued)
EPS from continuing operations attributable to Duke Energy Corporation common shareholders, which includes the impact of special items and the mark-to-market impacts of economic hedges in the Commercial Power segment. Due to the forward-looking nature of this non-GAAP financial measure for future pe
Slide 59: Non-GAAP Reconciliations (continued)
and merger transaction costs. Duke Energy also expects to incur significant system integration and other merger-related transition costs primarily through 2014 that are necessary in order to achieve certain cost savings, efficiencies and other benefits anticipated to result from the merger with Prog
Slide 60: 2012 Forecasted Cash Flow Reconciliation
Duke Energy Corporation 2012 Forecasted Cash Flow Reconciliation, Required by SEC Regulation G Second Quarter 2012 Earnings Review and Business Update August 2, 2012 ($ in millions) Forecast 2012 Primary Sources: Adjusted net income (1) (a) $ 2,450 Depreciation & amortization (a) 2,660 Deferred and
Slide 61: Adjusted to Reported Earnings Reconciliation, Three Months Ended June 30, 2012
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION Three Months Ended June 30, 2012 (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Achieve, Economic Adjusted Progress Hedges (Mark- Discontinued Total Reported Earnings Merger to-Market) * Operations
Slide 62: Adjusted to Reported Earnings Reconciliation, Six Months Ended June 30, 2012
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION Six Months Ended June 30, 2012 (Dollars in millions, except per-share amounts) Special Items Costs to Achieve, Voluntary Economic Adjusted Progress Opportunity Edwardsport Hedges (Mark- Discontinued Total Reported Earnings Merger P
Slide 63: Adjusted to Reported Earnings Reconciliation, Three Months Ended June 30, 2011
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION Three Months Ended June 30, 2011 (Dollars in millions, except per-share amounts) Special Items Costs to Achieve, Adjusted Progress Reported Earnings Merger Earnings SEGMENT INCOME U.S. Franchised Electric and Gas $ 297 $ - $ 297 Co
Slide 64: Adjusted to Reported Earnings Reconciliation, Six Months Ended June 30, 2011
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION Six Months Ended June 30, 2011 (Dollars in millions, except per-share amounts) Special Items Costs to Achieve, Economic Adjusted Progress Hedges (Mark- Total Reported Earnings Merger to-Market) * Adjustments Earnings SEGMENT INCOME
Slide 65: Adjusted to Reported Earnings Reconciliation, Three Months Ended March 31, 2012
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION Three Months Ended March 31, 2012 (Dollars in millions, except per-share amounts) Special Items Costs to Achieve, Voluntary Economic Adjusted Progress Opportunity Edwardsport Hedges (Mark- Discontinued Total Reported Earnings Merge
Slide 66: Adjusted to Reported Earnings Reconciliation, Three Months Ended March 31, 2011
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION Three Months Ended March 31, 2011 (Dollars in millions, except per-share amounts) Special Items Costs to Achieve, Economic Adjusted Progress Hedges (Mark- Total Reported Earnings Merger to-Market) * Adjustments Earnings SEGMENT INC
Slide 67: Adjusted to Reported Earnings Reconciliation, Three Months Ended September 30, 2011
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION Three Months Ended September 30, 2011 (Dollars in millions, except per-share amounts) Special Items Costs to Achieve, Emission Economic Adjusted Progress Edwardsport Allowances Hedges (Mark- Discontinued Total Reported Earnings Mer
Slide 68: Adjusted to Reported Earnings Reconciliation, Three Months Ended December 31, 2011
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION Three Months Ended December 31, 2011 (Dollars in millions, except per-share amounts) Special Items Costs to Achieve, Economic Adjusted Progress Hedges (Mark- Total Reported Earnings Merger to-Market) * Adjustments Earnings SEGMENT
Slide 69: Adjusted to Reported Earnings Reconciliation, Twelve Months Ended December 31, 2011
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION Twelve Months Ended December 31, 2011 (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Achieve, Emission Economic Adjusted Progress Edwardsport Allowances Hedges (Mark- Discontinued Total Reported Ear
Slide 70: Adjusted to Reported Earnings Reconciliation, Twelve Months Ended December 31, 2010
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION Twelve Months Ended December 31, 2010 (Dollars in millions, except per-share amounts) Special Items (Note 1) Voluntary Costs to Opportunity Achieve, Plan/ Office Goodwill and Economic Adjusted Cinergy Consolidation Other Litigation
Slide 71: Adjusted to Reported Earnings Reconciliation, Twelve Months Ended December 31, 2009
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION Twelve Months Ended December 31, 2009 (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Economic Achieve, Crescent Related International Goodwill and Hedges Adjusted Cinergy Guarantees and Transmission
Slide 72: Available Liquidity Reconciliation as of June 30, 2012
Duke Energy Corporation Available Liquidity Reconciliation As of June 30, 2012 (In millions) Cash and Cash Equivalents (a) $1,526 Short-Term Investments 234 Subtotal 1,760 Less: Amounts Held in Foreign Jurisdictions (1,338) $422 Plus: Remaining Availability under Master Credit and Regional Bank Cred
Slide 73: Progress Energy, Inc. Non-GAAP Reconciliations
Progress Energy, Inc. Non-GAAP Reconciliations Second Quarter Earnings Review & Business Update August 2, 2012 ONGOING EARNINGS ADJUSTMENTS For periods ended on or before June 30, 2012, Progress Energy’s management used ongoing earnings per share to evaluate the operations of the company and to esta
Slide 74: Discontinued Operations and CR3 Indemnification Adjustment
Discontinued Operations Discontinued operations include amounts related to adjustments of prior sales of diversified businesses. In 2012, the company recorded the reversal of certain environmental indemnification liabilities for which the indemnification period has expired. Resolution of guarantees