Duke Energy Corporation (holding Company) · NYSE:DUK
Duke Energy Corporation (holding Company) — Q4 2021 Earnings Presentation
83 slides from Duke Energy Corporation (holding Company)'s earnings presentation, Feb 10, 2022
Slide 1: Q4 2021 Earnings Review and Business Update
Q4 / 2021 Earnings Review and Business Update Lynn Good / Chair, President and CEO Steve Young / Executive Vice President and CFO February 10, 2022 // 1
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
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: Financial highlights
Financial highlights $4.94 / $5.24 $5.30 - $5.60 2021 REPORTED / ADJUSTED EPS 2022 ADJUSTED EPS GUIDANCE RANGE ADJUSTED EPS ABOVE MIDPOINT OF REVISED GUIDANCE RANGE 5% – 7% EARNINGS GROWTH ADJUSTED EARNINGS THROUGH 2026 PER SHARE REAFFIRMING AND EXTENDING GROWTH RATE OFF MIDPOINT $5.15 - $5.30 $5.24
Slide 5: Progress on energy transition across our regions
Progress on energy transition across our regions REGION 2021 ACCOMPLISHMENTS 2022 INITIATIVES ✓ Collaborated with NC policymakers and ▪ Rulemaking process for HB 951 is stakeholders on bipartisan clean energy underway, with open dockets on legislation performance-based rates (PBR) and coal ✓ Issued
Slide 6: 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 7: Financial highlights
Financial highlights 2021 ADJUSTED EPS HIGHLIGHTS(1) KEY MESSAGES ▪ Delivered 2021 reported EPS of $4.94 and adjusted EPS of $5.24; above the midpoint of $0.41 ($0.29) the revised guidance range ▪ Achieved solid year-over-year core business growth, partially offset by ACP and share $5.24 dilution $5
Slide 8: 2022 Financial outlook – adjusted EPS waterfall
2022 Financial outlook – adjusted EPS waterfall Electric Utilities & Gas Utilities & Commercial Other Infrastructure Infrastructure Renewables ($0.02) $0.34 $0.07 ($0.09) $5.45 ▲ Rate cases (NC, KY) Midpoint(3) ▼ Lower incremental ▼ Increased HoldCo ▲ Integrity management growth investments financin
Slide 9: Retail electric volumes
Retail electric volumes 2021 RETAIL ELECTRIC VOLUMES(1) FORECASTED 2022 RETAIL ELECTRIC VOLUMES(2) 3.1% 2.9% 2.0% 1.5% - 2% ~1% 1% - 1.5% ~1.5% 0.7% Residential Commercial Industrial Total Retail Residential Commercial Industrial Total Retail KEY MESSAGES ▪ Expect favorable volume relative to 2021 a
Slide 10: Cost management continues to be a core competency
Cost management continues to be a core competency BUSINESS TRANSFORMATION CONTINUES TO …EXPECT TO HOLD O&M FLAT PRODUCE SUSTAINABLE COST SAVINGS… THROUGH 2026 ($ IN BILLIONS) O&M Cost Management(1) ✓ Digital innovation efforts will increase operational efficiency while $5.0 improving the customer ex
Slide 11: 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 12: Projected growth over five-year plan
Projected growth over five-year plan 5-YEAR ADJUSTED EPS GROWTH PLAN UPSIDES TO PLAN ▪ Acceleration of clean energy transition ▪ Robust service areas / economies ▪ Sustainable cost management ▪ Tax credits from federal legislation ▪ EV adoption (2) $5.45 $5.15 ITEMS TO MONITOR ▪ Inflation / rising i
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 ▪ Credit ratings recently affirmed at ▪ Pension plan 112% funded on a BBB/Baa2 (Stable) combined basis ▪ ~$1 billion tranche 2 closing of DEI ▪ Operate in
Slide 14: Our investor value proposition
Our investor value proposition A STRONG LONG-TERM RETURN PROPOSITION 3.8% ~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 15: Appendix
APPENDIX // 15
Slide 16: 2021 enterprise accomplishments
2021 enterprise accomplishments CONTINUED SUPPORTING EMPOWERING OUR OPERATIONAL CUSTOMERS AND EMPLOYEES EXCELLENCE COMMUNITIES ▪ Expect to be top decile in utility safety ▪ Top quartile J.D. Power & Associates’ ▪ Named to Fortune’s Most Admired for the 7th consecutive year customer satisfaction inde
Slide 17: North Carolina clean energy legislation
North Carolina clean energy legislation ENGAGING WITH STAKEHOLDERS TO EXECUTE ENERGY LEGISLATION ▪ In October 2021, North Carolina enacted comprehensive clean energy legislation (HB 951) ▪ Provides a framework to achieve 70% carbon reduction by 2030 against a 2005 baseline, and net- zero carbon emis
Slide 18: Indiana integrated resource plan
Indiana integrated resource plan 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
Slide 19: Piedmont update
Piedmont update 2016 PIEDMONT ACQUISITION HAS BEEN CONTINUED OPERATIONAL EXCELLENCE GOOD FOR SHAREHOLDERS… SUPPORTS GROWING CUSTOMER BASE ▪ Increased J.D. Power & Associates customer satisfaction Earnings Base 15% $6.5 score by 11 points in 2021, remain a top quartile performer CAGR ($B) $3.2 ▪ Succ
Slide 20: Alternative technology partnerships and investments
Alternative technology partnerships and investments ▪ Partnering with Siemens and Clemson University on a Department of Energy supported study to evaluate hydrogen integration and utilization at the Duke owned and operated Clemson combined heat and power plant HYDROGEN ▪ The pilot project began in M
Slide 21: Sustainability / Environmental Social and Governance (ESG)
SUSTAINABILITY / ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) // 21
Slide 22: Transforming the way we produce power
Transforming the way we produce power 1% 6% 7% 5% Coal / Oil Generation Natural Gas 22% 25% (MWh) by 33% 35% Nuclear 40% Fuel Type 60% Hydro, Wind 36% 30% & Solar 2005(1) 2021(1)(2) 2030E(3) ~12% 8% Coal as a % Coal / Oil ~6% of Earnings Dual-Fuel(4) Base 4% ~2-3% 4% ~1-2% 2% ~1-2% 2021 2026E 2030E
Slide 23: Significantly reducing GHG emissions on our journey toward net-zero
Significantly reducing GHG emissions on our journey toward net-zero EMISSIONS FROM ELECTRIC GENERATION KEY MESSAGES CO2 Emissions (million short tons) and Emission Intensity (Lbs/net kWh) ▪ 44% reduction to CO2 emissions since 2005 200 2.00 175 1.75 ▪ On track to exceed 50% 150 1.50 reduction by 203
Slide 24: Recently published sustainable financing framework
Recently published sustainable financing framework ▪ Previously issued green bonds financed renewable energy and battery storage investments ▪ New use of proceeds-based framework greatly expands the eligible project categories to align with our goals of net-zero carbon emissions by 2050: ▪ Renewable
Slide 25: North Carolina subcritical coal generation
North Carolina subcritical coal generation(1) NC CLEAN ENERGY LEGISLATION PROVIDES FOR THE SECURITIZATION OF 50% OF THE BALANCE OF SUBCRITICAL COAL GENERATION AT RETIREMENT Coal securitization rulemaking to be completed by April 11, 2022 ($ in millions) Net Book Value Annual Depreciation Earliest 12
Slide 26: 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) ▪ 6 out of 14 directors are female or identify as a part
Slide 27: 2021 Performance and 2022 Guidance Supplemental Information
2021 PERFORMANCE AND 2022 GUIDANCE SUPPLEMENTAL INFORMATION // 27
Slide 28: Key 2022 adjusted earnings guidance assumptions
Key 2022 adjusted earnings guidance assumptions 2022 Interest Expense Assumption ($ in millions) Original 2021 2021 2022 (Consolidated Total $2,425) Assumptions Actual Assumptions Adjusted segment income/(expense)(1): $665 Electric Utilities & Infrastructure $3,900 $3,919 $4,170 Gas Utilities & Infr
Slide 29: Electric utilities quarterly weather impacts
Electric utilities quarterly weather impacts Weather segment 2021 2020 income to normal: Pretax Weighted EPS impact Pretax Weighted EPS impact impact avg. shares favorable / impact avg. shares favorable / (unfavorable) (unfavorable) First Quarter ($17) 769 ($0.02) ($110) 734 ($0.11) Second Quarter $
Slide 30: Key 2022 earnings sensitivities
Key 2022 earnings sensitivities Driver EPS Impact 1% change in earned return on equity +/- $0.53 $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.
Slide 31: Earnings base growth
Earnings base growth 2022-2026 REGULATED ELECTRIC AND GAS EARNINGS BASE(1)(2) $119 ~5% $112 $12 $105 $12 $99 $106 $11 $92 $100 $11 $86 $94 $10 $88 $9 LDC Gas 10% $82 $77 2021A 2022E 2023E 2024E 2025E 2026E Electric Utilities & Infrastructure Gas Utilities & Infrastructure (1) In billions. Illustrati
Slide 32: Regulated utilities end of year earnings base
Regulated utilities end of year earnings base(1) Electric Utilities Earnings Base ($ in billions) 2021A 2022E 2023E 2024E 2025E 2026E Duke Energy Carolinas(2) $28.1 $30.2 $32.9 $34.6 $36.9 $38.9 Duke Energy Progress(2) 18.2 19.6 20.7 22.3 24.4 26.2 Duke Energy Florida 16.5 17.7 19.1 20.7 22.1 23.0 D
Slide 33: Capital expenditures profile
Capital expenditures profile(1) ($ in millions) Capital Expenditures 2021A 2022E 2023E 2024E 2025E 2026E 2022 - 2026 (2) Electric Generation 1,157 1,475 1,900 2,225 2,750 3,650 12,000 Electric Transmission 883 1,425 1,350 1,450 1,325 1,425 6,975 Electric Distribution 2,255 3,325 3,625 3,675 3,800 3,
Slide 34: Capital expenditures by utility (continued)
Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy Carolinas 2021A 2022E 2023E 2024E 2025E 2026E 2022 - 2026 Electric Generation 406 475 625 725 900 1,425 4,150 Electric Transmission 95 300 350 325 275 225 1,475 Electric Distribution 851 1,150 1,450 1,175 1,200 1,125 6,100 En
Slide 35: Capital expenditures by utility (continued)
Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy Florida 2021A 2022E 2023E 2024E 2025E 2026E 2022 - 2026 Electric Generation 527 500 550 475 475 350 2,350 Electric Transmission 436 650 575 600 475 525 2,825 Electric Distribution 434 700 800 975 900 975 4,350 Environmental &
Slide 36: Capital expenditures by utility (continued)
Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy OH/KY Electric 2021A 2022E 2023E 2024E 2025E 2026E 2022 - 2026 Electric Generation 4 - 75 - 25 25 125 Electric Transmission 137 125 150 150 125 125 675 Electric Distribution 237 225 250 225 225 250 1,175 Environmental & Other
Slide 37: 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 2021 Retail Volume Summary 5.3% 4.7% 4.1% 3.8% 3.3% 3.4% 3.1% 2.9% 2.5% 2.0% 2.0% 1.8% 1.8% 2.0% 2.0% 1.4% 1.5% 1
Slide 38: Managing regulatory lag and customer rate impacts
Managing regulatory lag and customer rate impacts ADJUSTED BOOK ROEs(1) COMPETITIVE CUSTOMER RATES(2) 10.5% U.S. AVG. 13.74 9.8% DEI Carolinas 12.97 10.9% 9.5–10.0% DEF 12.66 DEP (SC) 11.94 10.3% DEC (SC) 10.7% 11.64 Florida DEO 11.59 9.6% 10.5–11% DEP (NC) 11.18 DEC (NC) 10.42 9.8% 8.7% DEK 9.56 In
Slide 39: Financing plan update and current liquidity
FINANCING PLAN UPDATE AND CURRENT LIQUIDITY // 39
Slide 40: 2022 Financing plan
2022 Financing plan(1) Estimated Completed 2022 Issuer Amount Security Date Issued Term Rate ($ in millions) Maturities(2) ($ in millions) Senior Debt / $2,050 Holding Company $5,500 - $6,000 - - - - Hybrid Securities (May, Apr. & Aug.) $350 DE Carolinas $1,000 – 1,300 Senior Debt - - - - (May) $500
Slide 41: Liquidity summary (as of December 31, 2021)
Liquidity summary (as of December 31, 2021) ($ 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) $ 2,650 $ 1,225 $ 1,150 $ 900 $ 600 $ 600 $ 175 $ 700
Slide 42: 2022 Pension funding and costs
2022 Pension funding and costs ▪ On a consolidated basis, the Duke Energy pension plan was fully funded as of Pension 12/31/2021 on a PBO basis Contributions 2020A 2021A 2022E ($ in millions) ▪ Duke Energy’s pension funding policy: All plans $0 $0 ~$5M to ▪ Duke Energy’s policy is to fund amounts on
Slide 43: 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
Slide 44: Credit ratings and 2021 credit metrics
Credit ratings and 2021 credit metrics(1) Duke Energy Corporation Holdco Debt/Total Debt 32% FFO/Debt (2)(3) 15% Duke Energy Duke Energy Duke Energy Carolinas Progress Florida FFO/Debt(2)(3) 23% 23% 22% Duke Energy Duke Energy Piedmont Indiana Ohio Cons. FFO/Debt(2)(3) 25% 16% 15% Simplified 2022 Ca
Slide 45: Regulatory overview
REGULATORY OVERVIEW // 45
Slide 46: Regulatory calendar
Regulatory calendar Pending rate case Evaluating rate case Modern recovery mechanism JURISDICTION 2021 2022 2023 2024 2025 2026 DEC Evaluating– NC / SC DEP Evaluating– NC / SC Multi-year rate plan Evaluating DEF SOBRA (2022) & Clean Energy Connection (CEC)/Storm Protection Plan (SPP) TDSIC / Environ
Slide 47: 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 3 7 Commissioners Term (years) 6 4 4 4 5 4 6 Appointed by Appointed by Elected by the Appointed by Appointed by Appointed by Appointed by Appointed/Elected Governor
Slide 48: Current electric rate information by jurisdiction
Current electric rate information by jurisdiction North South(1) Ohio Kentucky Florida Indiana Carolina Carolina (Electric) (Electric) $16.9 B (2) (DEC) $5.4 B (DEC) $1.3 B Retail Rate Base $15.6 B (3) $10.2 B $881 M $10.6 B (2) (DEP) $1.5 B (DEP) (dist. only) $2.2 B (DEC) 3Q 2021 $0.7 B Wholesale R
Slide 49: 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 R
Slide 50: 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 $452 million $897 million $900 million $313 million 9.375% for base rates Allowed ROE 9.6% 9.8% 9.8% 9.84% 9.3% for riders Allowed Equity 51.6% 52.2% 50.5% 53.3% 51%
Slide 51: Segment overviews
SEGMENT OVERVIEWS // 51
Slide 52: 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
Slide 53: 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 ▪ Customer rates below the national average
Slide 54: 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 55: Electric utilities & infrastructure
Electric utilities & infrastructure COMPETITIVE CUSTOMER RATES(1) REGULATED ELECTRIC EIGHT UTILITIES IN 2021 EARNINGS BASE RESIDENTIAL HIGH-QUALITY U.S. AVG. 13.74 DEO - Electric DEK - Electric REGIONS OF THE U.S. DEI DEF 12.97 12.66 5% 1% DEP (SC) 11.94 DEI CAROLINAS DEC (SC) DEO 11.64 12% 11.59 DE
Slide 56: 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 – Peer group: AEP, SO, EXC, NEE, D, XEL, ED, ES, WEC ▪ Scale better positions Duke to drive O&M efficiencies ▪ O
Slide 57: Gas utilities & infrastructure
Gas utilities & infrastructure GAS UTILITIES WITH LOW VOLUMETRIC EXPOSURE DUE TO MOSTLY FIXED MARGINS… MARGIN STABILIZING MECHANISMS 13% 13% 1. Purchased Gas All States Adjustment 74% 87% MOSTLY 2. Uncollectible Recovery All States FIXED 3. Integrity Management Rider North Carolina and MARGINS (“IMR
Slide 58: Commercial Renewables asset locations
Commercial Renewables asset locations 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 // 58 FOURTH QUARTER 2021 EARNINGS REVIEW AND BUSINESS UPDATE // 58
Slide 59: Upcoming events
Upcoming events Event Date 1Q 2022 earnings call (tentative) May 9, 2022 2Q 2022 earnings call (tentative) August 4, 2022 ESG Day October 4, 2022 3Q 2022 earnings call (tentative) November 4, 2022 // 59 FOURTH QUARTER 2021 EARNINGS REVIEW AND BUSINESS UPDATE // 59
Slide 60: 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 61: HEADLINE GOES HERE
HEADLINE GOES HERE For additional information on Duke Energy, please visit: duke-energy.com/investors FOURTH QUARTER 2021 EARNINGS REVIEW AND BUSINESS UPDATE // 61
Slide 62: Non-GAAP Reconciliations
Duke Energy Corporation Non-GAAP Reconciliations Fourth Quarter Earnings Review & Business Update February 10, 2022 Adjusted Earnings per Share (EPS) The materials for Duke Energy Corporation’s (Duke Energy) Fourth Quarter Earnings Review and Business Update on February 10, 2022, include a discussio
Slide 63: Adjusted EPS Guidance
Adjusted EPS Guidance The materials for Duke Energy’s Fourth Quarter Earnings Review and Business Update on February 10, 2022, include a reference to revised forecasted 2021 adjusted earnings guidance range of $5.15 to $5.30 per share, narrowed from the original forecasted 2021 adjusted earnings gui
Slide 64: Effective Tax Rate Including Noncontrolling Interests and Preferred Dividends
Effective Tax Rate Including Impacts of Noncontrolling Interests and Preferred Dividends and Excluding Special Items The materials for Duke Energy’s Fourth Quarter Earnings Review and Business Update on February 10, 2022, include a discussion of the effective tax rate including impacts of noncontrol
Slide 65: Funds From Operations (FFO) Ratio
Funds From Operations (“FFO”) Ratio The materials for Duke Energy’s Fourth Quarter Earnings Review and Business Update on February 10, 2022 include a reference to the historical and expected FFO to Total Debt ratio. This ratio reflects non-GAAP financial measures. The numerator of the FFO to Total D
Slide 66: Adjusted segment income and dividend payout ratio
Energy’s segments are comprised of Electric Utilities and Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables. Adjusted segment income is a non-GAAP financial measure, as it represents reported segment income adjusted for special items as discussed above. Due to the forward-lo
Slide 67: 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
Slide 68: Reported to Adjusted Earnings Reconciliation, Year Ended December 31, 2020
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Year Ended December 31, 2020 (Dollars in millions, except per share amounts) Special Items Reported Gas Pipeline Regulatory Discontinued Total Adjusted Earnings Investments Severance Settlements Operations Adjustments Earnings SEGM
Slide 69: Effective Tax Reconciliation
DUKE ENERGY CORPORATION EFFECTIVE TAX RECONCILIATION December 2021 (Dollars in millions) Three Months Ended Year Ended December 31, 2021 December 31, 2021 Effective Tax Effective Tax Balance Rate Balance Rate Reported Income Before Income Taxes From Continuing Operations Before Income Taxes $ 639 $
Slide 70: Available Liquidity Reconciliation
Duke Energy Corporation Available Liquidity Reconciliation As of December 31, 2021 (In millions) Cash and Cash Equivalents $ 343 Less: Certain Amounts Held in Foreign Jurisdictions (29) Less: Unavailable Domestic Cash (43) 271 Plus: Remaining Availability under Master Credit Facilities and other fac
Slide 71: 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 72: Piedmont Operations, Maintenance and Other Expense
Piedmont Natural Gas Company, Inc. Operations, Maintenance and Other Expense (In millions) Actual Operation, maintenance and other(a) - 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 73: 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 Reported Net Income 2021 $ 1,336 $
Slide 74: 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 Reported Net Income 2020 $ 956 $ 4
Slide 75: Adjusted Book Return on Equity, 2019
DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2019 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 2019 $ 1,403 $
Slide 76: 2022 Forecasted Cash Flow Reconciliation
Duke Energy Corporation 2022 Forecasted Cash Flow Reconciliation, Required by SEC Regulation G February 10, 2022 ($ in millions) Forecast 2022 Primary Sources: Adjusted net income (1) (a) $4,195 Depreciation & amortization (a) 5,885 Deferred and accrued taxes (a) 350 Other sources / (uses), net (a)
Slide 77: FFO to Debt Calculation – Duke Energy Corporation
FFO to Debt Calculation Duke Energy Corporation (in millions) Year Ended December 31, 2021 Actual Cash From Operations 8,290 Adjust for Working Capital (1) 947 Coal ash ARO spend 439 Include Capitalized Interest as cost (72) Hybrid interest adjustment 10 Preferred stock adjustment (53) CR3 securitiz
Slide 78: FFO to Debt Calculation – Duke Energy Carolinas
FFO to Debt Calculation Duke Energy Carolinas (in millions) Year Ended December 31, 2021 Actual Cash From Operations 2,704 Adjust for Working Capital (1) 233 ARO spend 182 Include Capitalized Interest as cost (29) Storm securitization (1) Lease-imputed FFO adjustment (D&A) 40 Funds From Operations 3
Slide 79: FFO to Debt Calculation – Duke Energy Progress
FFO to Debt Calculation Duke Energy Progress (in millions) Year Ended December 31, 2021 Actual Cash From Operations 1,956 Adjust for Working Capital (1) 76 Coal ash ARO spend 187 Include Capitalized Interest as cost (14) Storm securitization (3) Lease-imputed FFO adjustment (D&A) 73 Funds From Opera
Slide 80: FFO to Debt Calculation – Duke Energy Florida
FFO to Debt Calculation Duke Energy Florida (in millions) Year Ended December 31, 2021 Actual Cash From Operations 1,402 Adjust for Working Capital (1) 390 Include Capitalized Interest as cost (6) Adjust for CR3 (56) Lease-imputed FFO adjustment (D&A) 62 Funds From Operations 1,792 Notes payable to
Slide 81: FFO to Debt Calculation – Duke Energy Indiana
FFO to Debt Calculation Duke Energy Indiana (in millions) Year Ended December 31, 2021 Actual Cash From Operations 1,004 Adjust for Working Capital (1) 50 Coal ash ARO spend 67 Include Capitalized Interest as cost 17 Lease-imputed FFO adjustment (D&A) 16 Funds From Operations 1,154 Current maturitie
Slide 82: FFO to Debt Calculation – Duke Energy Ohio
FFO to Debt Calculation Duke Energy Ohio (in millions) Year Ended December 31, 2021 Actual Cash From Operations 559 Adjust for Working Capital (1) 14 Coal Ash ARO spend 2 Include capitalized Interest as cost (20) Lease-imputed FFO adjustment (D&A) 10 Funds From Operations 565 Notes payable to affili
Slide 83: FFO to Debt Calculation – Piedmont Natural Gas
FFO to Debt Calculation Piedmont Natural Gas (in millions) Year Ended December 31, 2021 Actual Cash From Operations 391 Adjust for Working Capital (1) 138 Include Capitalized Interest as cost (9) Lease-imputed FFO adjustment (D&A) 6 Funds From Operations 526 Notes payable to affiliated companies 518