Duke Energy Corporation (holding Company) · NYSE:DUK
Duke Energy Corporation (holding Company) — Investor Presentation (June 2022)
39 slides from Duke Energy Corporation (holding Company)'s investor presentation, Jun 13, 2022
Slide 1: Duke Energy Investor Update
Duke Energy Investor Update June 2022 // 1
Slide 2: 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 herein and in Duke Energy’s
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
Slide 4: Outline
Outline Company Overview Financial Update Operations Update Energy Transition DUKE ENERGY INVESTOR UPDATE – SUMMER 2022 // 4
Slide 5: Company Overview
Company Overview // 5
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 8.2 million retail customers Balanced generation portfolio that has re
Slide 7: Complementary businesses with strong growth opportunities
Complementary businesses with strong growth opportunities ELECTRIC UTILITIES 2022 ADJUSTED 2022-2026 2022 – 2026 & INFRASTRUCTURE EPS CONTRIBUTION(1) CAPEX ADJUSTED EPS CAGR(2) 87% $53.2 B Consolidated 5-7% GAS UTILITIES & INFRASTRUCTURE 8-10% 10% $5.8 B 5-7% COMMERCIAL RENEWABLES 3% $2.5 B(3) Elect
Slide 8: Electric utilities & infrastructure
Electric utilities & infrastructure EIGHT UTILITIES IN HIGH-QUALITY COMPETITIVE CUSTOMER RATES(1) REGULATED ELECTRIC REGIONS OF THE U.S. 2021 EARNINGS BASE RESIDENTIAL U.S. AVG. 14.16 DEO - Electric DEK - Electric CAROLINAS DEI 12.95 5% 1% DEF 12.74 DEP (NC) 12.30 DEP (SC) 12.00 DEI DEO 11.76 12% DE
Slide 9: Financial Update
Financial Update // 9
Slide 10: Our investor value proposition
Our investor value proposition A STRONG LONG-TERM RETURN PROPOSITION 3.5% ~10% 5 -7% DIVIDEND YIELD(1) ATTRACTIVE zzz LONG-TERM WITH LONG-TERM RISK-ADJUSTED EPS GROWTH(4) DIVIDEND GROWTH TOTAL SHAREHOLDER THROUGH 2026 COMMITMENT(2) RETURN(3) CONSTRUCTIVE JURISDICTIONS, LOWER-RISK REGULATED INVESTMEN
Slide 11: Total shareholder return (TSR)
Total shareholder return (TSR) STRONG TRACK RECORD OF DELIVERING SUPERIOR SHAREHOLDER RETURNS 57.9% 48.4% 42.2% 17.1% 16.6% 9.3% 3.3% (0.3%) (12.8%) YTD 2022 1-year 3-year (1) S&P UTY DUK Source: Factset. As of May 31, 2022; (1) Reflects gross total shareholder return of the S&P 500 Utility Index DU
Slide 12: Robust capital plan to fund clean energy transition
Robust capital plan to fund clean energy transition $63B 5-YEAR PLAN… … WITH $52 BILLION FUNDING FLEET TRANSITION AND GRID MODERNIZATION $70B - HYDROGEN-ENABLED NATURAL GAS $75B ~$4B GENERATION Facilitates retirement of coal plants while $63B maintaining affordability and reliability $59B $56B ~$1
Slide 13: Balance sheet supports our long-term growth strategy
Balance sheet supports our long-term growth strategy COMMITTED TO MAINTAIN CURRENT FACTORS CONTRIBUTING TO BALANCE CREDIT RATINGS SHEET STRENGTH Senior unsecured HoldCo credit ratings Pension plan 112% funded on a recently affirmed at BBB/Baa2 (Stable) combined basis as of 12/31/2021 ~$1 billi
Slide 14: Electric utilities & infrastructure recovery mechanisms
Electric utilities & infrastructure recovery mechanisms RECOVERY MECHANISMS FOR ELECTRIC CAPEX(1) ~90% of electric segment capital investments eligible for modern recovery mechanisms, mitigating regulatory lag Includes recovery through riders, rate cases with forecasted test years, and multi-yea
Slide 15: Operations Update
Operations Update // 15
Slide 16: 2021 Enterprise accomplishments
2021 Enterprise accomplishments CONTINUED SUPPORTING EMPOWERING OUR OPERATIONAL CUSTOMERS AND EMPLOYEES EXCELLENCE COMMUNITIES Ranked in top decile in utility safety for Top quartile J.D. Power & Associates’ Named to Fortune’s Most Admired the 7th consecutive year customer satisfaction index r
Slide 17: Duke's scale enables top tier O&M performance
Duke’s scale enables top tier O&M performance Duke Energy compares favorably against peer group across multiple O&M metrics #2 on non-generation O&M cost per customer vs. peer utilities Scale better positions Duke to drive O&M efficiencies O&M efficiency supports customer rates and creates hea
Slide 18: Cost management continues to be a core competency
Cost management continues to be a core competency BUSINESS TRANSFORMATION CONTINUES TO …EXPECT TO HOLD O&M FLAT PRODUCE SUSTAINABLE COST SAVINGS… THROUGH 2026 ($ IN BILLIONS) O&M Cost Management(1) Digital innovation efforts will increase operational efficiency while $5.0 improving the customer ex
Slide 19: Leveraging our scale by investing for the future
Leveraging our scale by investing for the future Optimist Hall Duke Energy: Lighthouse Dedicated innovation center in Charlotte, NC Our achievements in operational excellence are delivering a digital transformation Allows software engineers, designers, data scientists and business units to colla
Slide 20: Energy Transition
Energy Transition // 20
Slide 21: Duke Energy is leading the industry's largest clean energy transition
Duke Energy is leading the industry’s largest clean energy transition What we’re doing How we’re doing it Completing the largest planned Collaborating with state and coal retirement in the industry federal policymakers Retired 56 units (7.5 GW) since 2010 Landmark bipartisan legislation in NC th
Slide 22: 2021 ESG report highlights
2021 ESG report highlights GOALS AND RECENT COMMITMENTS ACCOMPLISHMENTS Exceeded 44% carbon reduction from 2005 in 2021 Carbon ENVIRONMENTAL Reduction Decarbonizing natural gas business, focusing on methane detection and reduction of emissions using technology At least 50% carbon reduction and
Slide 23: Transforming the way we produce power
Transforming the way we produce power 1% 6% 7% 5% Coal / Oil 22% 25% Natural Gas Generation 33% 35% 40% Nuclear (MWh) by 60% Hydro, Wind Fuel Type & Solar 36% 30% 2005(1) 2021(1)(2) 2030E(3) ~12% 4% Coal as a % Coal / Oil ~6% of Earnings Dual-Fuel(4) Base 8% 2% ~2-3% 4% ~1-2% ~1-2% 2021 2026E 2030E
Slide 24: North Carolina clean energy legislation
North Carolina clean energy legislation ENGAGING WITH STAKEHOLDERS TO DEVELOP CLEAN ENERGY TRANSITION Filed proposed Carbon Plan on May 16, which includes four portfolios to meet 70% interim reduction targets and carbon neutrality by 2050 All portfolios replace coal with diverse mix of solar, st
Slide 25: Carbon Plan – A proposal for a cleaner energy future
Carbon Plan – A proposal for a cleaner energy future New resources by 2035 See additional details in the full Carbon Plan at www.duke-energy.com/CarolinasCarbonPlan The Carbon Plan proposes prudent near-term procurement and 2022 – Remaining steps development work on the following resources, which ar
Slide 26: Offshore wind – Carolina Long Bay
Offshore wind – Carolina Long Bay MAINTAINING OPTIONALITY FOR OFFSHORE WIND IN THE CAROLINAS Creates optionality for up to 1.6 GWs of offshore wind generation if offshore wind is selected by the NCUC to be included in the Carbon Plan Carolina Long Bay lease secured by Duke Energy Renewables Wind
Slide 27: Indiana energy transition
Indiana energy transition TRANSITION TO CLEANER ENERGY WITH FOCUS ON RELIABILITY AND AFFORDABILITY Submitted 2021 Indiana integrated resource plan (IRP) in December Preferred portfolio reduces carbon emissions from our Indiana fleet by 63% in 2030 and 88% by 2040, compared to 2005 levels Key c
Slide 28: Florida energy transition
Florida energy transition TECHNOLOGY THAT EMPOWERS CUSTOMERS AND DELIVERS CLEANER, MORE RELIABLE AND AFFORDABLE ENERGY Filed updated Storm Protection Plan, which includes $7 billion of capital investments over the next 10 years (2023-2032) Park & Plug program delivering over 600 EV chargers in p
Slide 29: Gas utilities and infrastructure
Gas utilities and infrastructure PIEDMONT GROWTH CONTINUES TRANSFORMATIVE CLEAN ENERGY GOALS FOLLOWING 2016 ACQUISITION AND INVESTMENTS Net-zero by 2030 goal for Scope 1 methane emissions $6.5 Earnings Base 15% CAGR Net-zero by 2050 goal for certain Scope 3 emissions ($B) $3.2 Includes upstrea
Slide 30: Alternative technology partnerships and investments
Alternative technology partnerships and investments Partnering with Siemens and Clemson University on a Department of Energy supported study to evaluate hydrogen integration and utilization at the Duke owned and operated Clemson combined heat and power plant HYDROGEN The pilot project began in M
Slide 31: Upcoming Events & Other
Upcoming Events & Other // 31
Slide 32: Upcoming events
Upcoming events Event Date 2Q 2022 earnings call (tentative) August 4, 2022 ESG Investor Day October 4, 2022 3Q 2022 earnings call (tentative) November 4, 2022 DUKE ENERGY INVESTOR UPDATE – SUMMER 2022 // 32
Slide 33: Investor Relations contact information
Investor Relations contact information JACK SULLIVAN, VICE PRESIDENT INVESTOR RELATIONS Jack.Sullivan@duke-energy.com (980) 373-3564 CHRIS JACOBI, DIRECTOR INVESTOR RELATIONS Christopher.Jacobi@duke-energy.com (704) 382-8397 LINDA MILLER, MANAGER INVESTOR RELATIONS Linda.Miller@duke-energy
Slide 34: Non-GAAP Reconciliations: Adjusted EPS
Duke Energy Corporation Non-GAAP Reconciliations Investor Update June 2022 Adjusted Earnings per Share (EPS) The materials for Duke Energy Corporation’s (Duke Energy) Investor Update in June 2022 include a discussion of adjusted EPS. The non-GAAP financial measure, adjusted EPS, represents basic EPS
Slide 35: Funds From Operations (FFO) Ratio
Funds From Operations (“FFO”) Ratio The materials for Duke Energy’s Investor Update in June 2022 include a reference to the expected FFO to Total Debt ratio. This ratio reflects non-GAAP financial measures. The numerator of the FFO to Total Debt ratio is calculated principally by using net cash prov
Slide 36: Business Mix Percentage
Business Mix Percentage The materials for Duke Energy’s Investor Update in June 2022 reference each segment’s 2022 projected adjusted segment income as a percentage of the total projected 2022 adjusted EPS midpoint of approximately $5.45 (i.e. business mix), excluding the impact of Other. Duke Energ
Slide 37: Operations, Maintenance and Other Expense
Duke Energy Corporation Operations, Maintenance and Other Expense (In millions) Actual Actual Forecast December 31, 2016 December 31, 2019 December 31, 2022 Operation, maintenance and other(a) $6,223 $6,066 $6,025 Adjustments: Costs to Achieve, Mergers(b) (238) – – Severance(b) (92) – – Reagents Rec
Slide 38: Piedmont Natural Gas Operations, Maintenance and Other Expense
Piedmont Natural Gas Company, Inc. Operations, Maintenance and Other Expense (In millions) Actual (a) Operation, maintenance and other - Piedmont Natural Gas Company, Inc. 10-K $ 353 Less: Operation, maintenance and other(b) - Piedmont Natural Gas Company, Inc. 2015 November and December Activity 53
Slide 39: For additional information on Duke Energy, please visit duke-energy.com/investors
For additional information on Duke Energy, please visit: duke-energy.com/investors // 34