Duke Energy Corporation (holding Company) · NYSE:DUK
Duke Energy Corporation (holding Company) — Q1 2024 Earnings Presentation
39 slides from Duke Energy Corporation (holding Company)'s earnings presentation, May 7, 2024
Slide 1: Earnings Review and Business Update
Q1 / 2024 Earnings Review and Business Update Lynn Good / Chair and CEO Harry Sideris / President Brian Savoy / Executive Vice President and CFO May 7, 2024 // 1
Slide 2: Safe Harbor statement and 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 $1.44 Q1 2024 REPORTED / ADJUSTED EPS Summerside substation expansion project, Ohio $5.85 - $6.10 REAFFIRMING 2024 ADJUSTED EPS GUIDANCE RANGE Asheville battery storage, North Carolina 5% - 7% REAFFIRMING GROWTH RATE THROUGH 2028 OFF MIDPOINT OF 2024 GUIDANCE RANGE ($5.98)(1) (1
Slide 5: Executing 'all of the above strategy' to meet customers' growing energy needs
Executing ‘all of the above strategy’ to meet customers’ growing energy needs AS WE INTEGRATE SUBSTANTIAL RENEWABLES AND STORAGE… Florida multi-year rate plan filing includes 1,050 MW of new solar additions (2025-2027) and 100 MW of battery storage On track to have 1,500 MWs of solar in-service
Slide 6: Collaborating with stakeholders across our jurisdictions
Collaborating with stakeholders across our jurisdictions South DE Carolinas rate case hearing scheduled to begin Carolina May 20; expect new rates to be effective August 1 Filed for new multi-year rate plan (2025-2027) on April 2; expect new rates to be effective January 1 Florida Expect the 2
Slide 7: Q1 2024 adjusted EPS summary and primary drivers
Q1 2024 adjusted EPS summary and primary drivers REPORTED EARNINGS PER SHARE SEGMENT RESULTS VS. PRIOR YEAR QUARTER(1) Electric Utilities & Infrastructure, +$230M (+$0.29 per share) $1.44 ▲ Weather, $0.15 ▲ Rate cases and riders $1.01 ▲ Volumes ▼ Interest expense Q1 2023 Q1 2024 ▼ Depreciation ADJUS
Slide 8: Strengthening retail volumes expected to continue through 2024
Strengthening retail volumes expected to continue through 2024 RETAIL LOAD TRENDS Q1 VOLUMES(1) Increase in Residential customers and Commercial class volumes drove Q1 2024 1.2% 1.1% 1.1% growth 2.4% customer growth in the Carolinas and Florida Residential Commercial Total Retail Residential d
Slide 9: Economic development driving unprecedented growth
Economic development driving unprecedented growth PROJECTED LOAD GROWTH FROM ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENT (GWh)(1) ACTIVITY UNDERWAY Incremental pipeline additions ~10,000 - since Q4 2023 update; 18,000 +1,000 in 2027, +2,000 in 2028 ~8,000 - 14,000 ~5,000 - 8,000 ~3,500 - ~1,000 - 4,50
Slide 10: Credit profile continues to improve
Credit profile continues to improve KEY MESSAGES DEFERRED FUEL BALANCE ($ in billions) DE Midwest Committed to our current credit ratings $3.9 DE Progress On track for 14% FFO / Debt in 2024 DE Carolinas DE Florida $2.3 Targeting a minimum of 14% FFO / Debt over the long-term $1.9 $500 milli
Slide 11: Our investor value proposition
Our investor value proposition A STRONG LONG-TERM RETURN PROPOSITION 4.1% ~10% 5 -7% DIVIDEND YIELD(1) ATTRACTIVE zzz LONG-TERM WITH LONG-TERM RISK-ADJUSTED EPS GROWTH(4) DIVIDEND GROWTH TOTAL SHAREHOLDER THROUGH 2028 COMMITMENT(2) RETURN(3) CONSTRUCTIVE, GROWING JURISDICTIONS, LOWER-RISK REGULATED
Slide 12: Appendix
APPENDIX // 12
Slide 13: Advancing Carolinas energy transition
Advancing Carolinas energy transition SUPPLEMENTAL CAROLINAS RESOURCE NEAR-TERM ACTION PLAN PLAN FILED IN NORTH CAROLINA AND HIGHLIGHTS SOUTH CAROLINA ON JANUARY 31 Reflects significant growth in economic development 6,500 MW of new solar in- opportunities since August IRP filings and changes to
Slide 14: Top-performer across multiple O&M cost efficiency measures
Top-performer across multiple O&M cost efficiency measures(1) Electric non-generation Electric non-generation Nuclear production expense / O&M / Customer O&M / MWh Nuclear Generation MWh #2 / 19 #3 / 19 #2 / 11 $0 $25 $50 $0 $500 $1,000 $0 $25 $50 $75 (1) Source: Company annual filings, 2022 FERC Fo
Slide 15: Regulatory activity details – electric rate cases
Regulatory activity details – electric rate cases FILING DOCKET KEY STATUS TYPE NO. DRIVERS Filing is based on a retail rate base of $7.3 billion as of Dec. 31, 2022, adjusted for known and Application filed Jan. 4, 2024 measurable changes through Dec. 31, 2023 Evidentiary hearings scheduled t
Slide 16: Regulatory activity details – gas rate case
Regulatory activity details – gas rate case FILING DOCKET KEY STATUS TYPE NO. DRIVERS Filing is based on a retail rate base of $6.4 billion as of Dec. 31, 2023, adjusted for known and measurable changes through Aug. 31, 2023 Application filed Apr. 1, 2024 PIEDMONT Piedmont rate base has grown
Slide 17: 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
Slide 18: Impact Report highlights
Impact Report highlights GOALS RECENT ACCOMPLISHMENTS 48% carbon reduction from 2005 levels Carbon ENVIRONMENTAL Reduction Decarbonizing LDC business, focusing on methane detection and reduction of emissions using technology Net-zero by 2050 - addressing 95% of our Scope 1, 2, and 3 56 coal
Slide 19: Pure play regulated utility operating in constructive and growing jurisdictions
Pure play regulated utility operating in constructive and growing jurisdictions COMPLETED PORTFOLIO TRANSITION TO FULLY REGULATED COMPANY… 2011 Duke Energy & . Energy NC enacts bi-partisan Current Progress Energy Acquired Piedmont comprehensive clean Merge merger 2015 Natural Gas 2016 energy legisla
Slide 20: Clean energy transition underpins five- and ten-year capital plans
Clean energy transition underpins five- and ten-year capital plans PERCENTAGE OF TOTAL CAPEX PERCENTAGE OF TOTAL CAPEX 2024-2028(1) 2024-2033 Environmental Corp, IT & Cyber Environmental Corp, IT & Cyber Remediation ~4% Coal Maintenance Remediation ~3% ~3% ~1% ~2% $73B ~5% ~5% Coal Maintenance Gas G
Slide 21: 2024 Supplemental Financial Information
2024 SUPPLEMENTAL FINANCIAL INFORMATION // 21
Slide 22: Key 2024 adjusted earnings guidance assumptions
Key 2024 adjusted earnings guidance assumptions(1) Original 2024 2024 YTD ($ in millions) Assumptions (thru 3/31/2024) Adjusted segment income/(expense)(2): Electric Utilities & Infrastructure $4,890 $1,021 Gas Utilities & Infrastructure $570 $284 Other ($845) ($203) Duke Energy Consolidated $4,615
Slide 23: Electric utilities quarterly weather impacts
Electric utilities quarterly weather impacts Weather segment 2024 2023 income to normal: Pretax Weighted EPS impact Pretax Weighted EPS impact impact avg. shares favorable / impact avg. shares favorable / (unfavorable) (unfavorable) First Quarter ($66M) 771 ($0.07) ($225) 770 ($0.22) Second Quarter
Slide 24: Key 2024 earnings sensitivities
Key 2024 earnings sensitivities Full-year Driver EPS Impact 1% change in earned return on equity +/- $0.63 $1 billion change in rate base +/- $0.07 Electric Utilities & 1% change in Electric Utilities volumes Infrastructure Industrial +/- $0.02(2) +/- $0.12(1)(2) Commercial +/- $0.05(2) Residential
Slide 25: Weather normalized volume trends, by electric jurisdiction
Weather normalized volume trends, by electric jurisdiction Rolling Twelve Months, as of March 31, 2024 Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Electric Carolinas Progress Florida Indiana Ohio/Kentucky Utilities 0.4% -0.4% -0.2% -0.1% -0.4% -0.3% -0.8% -0.6% -0.9% -0.9% -1.1% -1.0
Slide 26: Financing Plan Update and Current Liquidity
FINANCING PLAN UPDATE AND CURRENT LIQUIDITY // 26
Slide 27: 2024 Financing plan
2024 Financing plan Notional Pre- Completed Remaining 2024 Maturities(2) Issuer Issuance Hedges Security Date Issued Term Rate(1) ($ in millions) ($ in millions) ($ in millions) ($ in millions) $600 3-year 4.85% Senior Debt January 2024 $650 5-year 4.85% (4) $3,000 Holding Company $815 Euro Sr. Note
Slide 28: Liquidity summary (as of March 31, 2024)
Liquidity summary (as of March 31, 2024) ($ 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) $ 2,275 $ 1,400 $ 1,575 $ 950 $ 950 $ 825 $ 225 $ 800 $
Slide 29: Upcoming Events & Other
UPCOMING EVENTS & OTHER // 29
Slide 30: Upcoming events
Upcoming events Event Date 2Q 2024 earnings call (tentative) August 6, 2024 3Q 2024 earnings call (tentative) November 7, 2024 FIRST QUARTER 2024 EARNINGS REVIEW AND BUSINESS UPDATE // 30
Slide 31: 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 MEGAN HAMMEL, MANAGER INVESTOR RELATIONS Megan.Hammel@duke-ener
Slide 32: For additional information on Duke Energy
HEADLINE GOES HERE For additional information on Duke Energy, please visit: duke-energy.com/investors FIRST QUARTER 2024 EARNINGS REVIEW AND BUSINESS UPDATE // 32
Slide 33: Non-GAAP Reconciliations: Adjusted Earnings per Share
Duke Energy Corporation Non-GAAP Reconciliations First Quarter Earnings Review & Business Update May 7, 2024 Adjusted Earnings per Share (EPS) The materials for Duke Energy Corporation’s (Duke Energy) First Quarter Earnings Review and Business Update on May 7, 2024, include a discussion of adjusted
Slide 34: Adjusted segment income (loss) and adjusted other net loss
Adjusted segment income (loss) and adjusted other net loss are non-GAAP financial measures, as they represent reported segment income (loss) and other net loss adjusted for special items (as discussed above under Adjusted EPS). Management believes the presentation of adjusted segment income (loss) a
Slide 35: Funds From Operations (FFO) to Debt Ratio
Funds From Operations (FFO) to Debt Ratio The materials for Duke Energy’s First Quarter Earnings Review and Business Update on May 7, 2024, include a reference to the expected FFO to Debt ratio. This ratio reflects non-GAAP financial measures. The numerator of the FFO to Debt ratio is calculated pri
Slide 36: Reported to Adjusted Earnings Reconciliation, Q1 2024
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Three Months Ended March 31, 2024 (Dollars in millions, except per share amounts) Reported Discontinued Total Adjusted Earnings Operations Adjustments Earnings SEGMENT INCOME Electric Utilities and Infrastructure $ 1,021 $ — $ — $
Slide 37: Reported to Adjusted Earnings Reconciliation, Q1 2023
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Three Months Ended March 31, 2023 (Dollars in millions, except per share amounts) Reported Discontinued Total Adjusted Earnings Operations Adjustments Earnings SEGMENT INCOME Electric Utilities and Infrastructure $ 791 $ — $ — $ 79
Slide 38: Effective Tax Reconciliation
DUKE ENERGY CORPORATION EFFECTIVE TAX RECONCILIATION March 2024 (Dollars in millions) Three Months Ended March 31, 2024 Effective Tax Balance Rate Reported Income From Continuing Operations Before Income Taxes $ 1,332 Noncontrolling Interests (16) Preferred Dividends (39) Pretax Income Including Non
Slide 39: Available Liquidity Reconciliation
Duke Energy Corporation Available Liquidity Reconciliation As of March 31, 2024 (In millions) Cash and Cash Equivalents $ 459 Less: Certain Amounts Held in Foreign Jurisdictions (7) Less: Unavailable Domestic Cash (171) 281 Plus: Remaining Availability under Master Credit Facilities and other facili
Duke Energy Corporation (Holding Company) — Q1 2024 Earnings Presentation on 6ix