Duke Energy Corporation (holding Company) · NYSE:DUK
Duke Energy Corporation (holding Company) — Investor Presentation (June 2018)
81 slides from Duke Energy Corporation (holding Company)'s investor presentation, Jun 14, 2018
Slide 1: Spring Update 2018
DUKE ENERGY SPRING UPDATE 2018
Slide 2: Notes
Notes DUKE ENERGY SPRING UPDATE 2018 2
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
Slide 4: Our investor value proposition
Our investor value proposition A SOLID LONG-TERM HOLDING 4.7% ~8-10% 4 -6% DIVIDEND YIELD(1) ATTRACTIVE zzz HIGHLY WITH DIVIDEND RISK-ADJUSTED ACHIEVABLE GROWTH TOTAL SHAREHOLDER EPS GROWTH COMMITMENT(2) RETURN(3) THROUGH 2022(4) SUPPORTED BY THE STRENGTH OF OUR BALANCE SHEET (1) As of May 16, 2018
Slide 5: 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
Slide 6: 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%
Slide 7: Modern recovery mechanisms and strategic pillars
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
Slide 8: Modernizing the energy grid
Modernizing the energy grid TARGETED UNDERGROUNDING SELF- TRANSMISSION $25 BILLION OPTIMIZATION IMPROVEMENTS OF GRID INVESTMENTS OVER 10 YEARS DISTRIBUTION ENTERPRISE HARDENING & SYSTEM RESILIENCY UPGRADES COMMUNICATION ADVANCED NETWORK METERING UPGRADES INFRASTRUCTURE (AMI) #1 CUSTOMER BENEFITS DUK
Slide 9: Generating cleaner energy
Generating cleaner energy Citrus County Combined Cycle Gas Turbine project, Duke Energy Florida • W.S. Lee CCGT (DEC) in service April 5 • Citrus County CCGT (DEF, 2018) and Western 31% Carolinas (DEP, 2019) are on track REDUCTION IN CO2 EMISSIONS THROUGH 2017 • Increasing solar generation in NC und
Slide 10: Expanding natural gas infrastructure
Expanding natural gas infrastructure • Atlantic Coast Pipeline (ACP) SUCCESSFUL • Completed 200 miles of tree felling through INTEGRATION OF March PIEDMONT PAST ONE-YEAR ANNIVERSARY • Received FERC approval for full construction on OF COMBINED OPERATIONS mainline in W. Va., requested N.C. • Construc
Slide 11: Committed to the strength of the balance sheet
Committed to the strength of the balance sheet PRIMARY EQUITY FINANCING PLAN ON TRACK… CREDIT METRICS • $2 billion equity issuance target in 2018 FFO/DEBT HOLDCO DEBT % • $1.6 billion equity offering completed March 9 with Target: 15 - 16% Target: Low 30%’s forwards to be unwound in 2018, timed to c
Slide 12: 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
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
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%
Slide 15: Managing regulatory activity
Managing regulatory activity Denotes modern recovery mechanism JURISDICTION 2017 2018 2019 2020 2021 2022 Pending – 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 Pending – NC Planning for multiple rate cas
Slide 16: Update on our regulatory activity
Update on our regulatory activity STATUS UPDATE KEY CONSIDERATIONS • Partial settlement approved without modification • Including 9.9% ROE on 52% equity DUKE ENERGY Rate case order received Feb. 23 • Deferred coal ash costs amortized over 5 years, with full PROGRESS NORTH CAROLINA New rates effe
Slide 17: Duke Energy Carolinas North Carolina grid rider settlement
Duke Energy Carolinas (DEC) North Carolina grid rider settlement(1) – June 1 • Settled with environmental intervenors on a pilot, three-year rider to recover Power/Forward grid investment costs • Certain costs will not go through the rider but will be deferred with a return until DEC’s next rate cas
Slide 18: Tax reform dockets proceeding across our state jurisdictions
Tax reform dockets proceeding across our state jurisdictions ELECTRIC & GAS UTILITIES MIDWEST SERVICE TERRITORIES Indiana Riders incorporate lower tax rate as they are filed (Electric) • Remaining impacts to be determined in generic docket Ohio Riders incorporate lower tax rate as they are filed
Slide 19: 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 OF TSR ACHIEVED 2014 2015 2016 2017 (3) 2018E THROUGH DIVIDEND REINVESTMENT OVER LAST 20 YEARS (1) Based on adjusted dilut
Slide 20: 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
Slide 21: Appendix materials
Appendix materials Item Slide(s) 1Q 2018 results 21-24 2018 guidance support 25-35 Financing plan 36-45 Regulatory overview 46-49 Tax reform summary 50-51 Segment overviews 52-55 Other information 56-60 DUKE ENERGY SPRING UPDATE 2018 21
Slide 22: 1Q2018 results
1Q2018 results DUKE ENERGY SPRING UPDATE 2018 22
Slide 23: 1Q 2017 - 1Q 2018 adjusted diluted EPS waterfall
1Q 2017 - 1Q 2018 adjusted diluted EPS waterfall Electric Utilities & Gas Utilities Commercial 1Q Weather Impact Other Infrastructure & Infrastructure Renewables $0.03 ($0.01) ($0.04) $0.10 $1.32 ▼ Lower wind $1.30growth ▲ Customer $0.16 resource $1.28 ▼ Higher interest $1.28 and increased -$0.01 ex
Slide 24: Electric utilities quarterly weather impacts
Electric utilities quarterly weather impacts Weather segment 2018 2017 income to normal: Pretax impact Weighted avg. EPS impact – Pretax impact Weighted avg. EPS impact – diluted shares favorable / shares favorable / (unfavorable) (unfavorable) First Quarter $13 701 $0.01 ($175) 700 ($0.15) Second Q
Slide 25: Weather normalized volume trends, by electric jurisdiction
Weather normalized volume trends, by electric jurisdiction Rolling Twelve Months, as of Mar. 31, 2018 Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Electric Carolinas Progress Florida Indiana Ohio/Kentucky Utilities 3.2% 2.2% 1.9% 1.5% 1.4% 1.0% 0.8% 0.7% 0.6% 0.4% 0.2% 0.4% 0.3% 0.1%
Slide 26: 2018 guidance support
2018 guidance support DUKE ENERGY SPRING UPDATE 2018 26
Slide 27: Duke Energy business segment structure
Duke Energy business segment structure Duke Energy Electric Utilities Gas Utilities Commercial Other & Infrastructure & Infrastructure Renewables North and South Duke Energy Carolinas Piedmont Natural Gas Carolina North and South Commercial Duke Energy Progress Carolina Pipelines Duke Energy Florida
Slide 28: Key 2018 adjusted earnings guidance assumptions
Key 2018 adjusted earnings guidance assumptions ($ in millions) Original 2018 2018 YTD Assumptions (1) (thru 3/31/2018) Adjusted segment income/(expense) (2): Electric Utilities & Infrastructure $3,304 $816 Gas Utilities & Infrastructure $319 $158 Commercial Renewables $117 $20 Other ($383) ($95) Du
Slide 29: 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
Slide 30: 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 $0.04 Management Riders
Slide 31: Regulated utilities end of year earnings base
Regulated utilities end of year earnings base(1) Electric Utilities Earnings Base ($ in billions) 2017A 2018E 2019E 2020E 2021E 2022E Duke Energy Carolinas $22.6 $23.9 $24.9 $26.0 $26.6 $27.6 Duke Energy Progress 15.7 16.9 17.9 18.6 19.3 20.2 Duke Energy Florida 12.0 13.3 14.5 15.5 16.5 17.2 Duke In
Slide 32: Capital expenditures profile
Capital expenditures profile(1) ($ 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
Slide 33: 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
Slide 34: 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
Slide 35: 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
Slide 36: 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)
Slide 37: Financing plan
Financing plan DUKE ENERGY SPRING UPDATE 2018 37
Slide 38: 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
Slide 39: Credit ratings (as of May 16, 2018)
Credit ratings (as of May 16, 2018) Holding Companies Operating Companies Moody's S&P Fitch Moody's S&P DUKE ENERGY Negative 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
Slide 40: Credit metrics
Credit metrics(1) Committed to maintaining quality, investment-grade ratings (2) FFO/Debt 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
Slide 41: Credit metric considerations
Credit metric considerations FFO/DEBT CALCULATION(1) KEY ADJUSTMENTS FFO (numerator) Coal ash ARO spend Net cash provided by operating activities (GAAP) • Treated as operating cash flow for GAAP, but deferred (+/-) Changes in working capital for future recovery for regulatory purposes (-) Capitalize
Slide 42: Forecasted 2018 Summary Cash Flows
Forecasted 2018 Summary Cash Flows(1) (2) Adjusted net income $ 3,360 Depreciation & amortization 4,675 Deferred and accrued taxes 820 Issuances & Maturities Summary (2018 Estimate) Other sources / (uses), net(3) (355) $4,400 Primary sources 8,500 Capital expenditures (10,950) $2,215 $1,530 Dividend
Slide 43: 2018 financing plan as of March 31, 2018
2018 financing plan as of March 31, 2018 (1)(2) ($ in millions) $2,500 $2,000 $1,500 $1,000 $500 $- Holding Duke Duke Duke Duke Piedmont Renewables Company Energy Energy Energy Energy Carolinas Progress Florida Kentucky 2018 Maturities and Debt Reduction / Expected/Completed Debt Issuances / Expecte
Slide 44: 2018 long-term debt financing activity as of March 31, 2018
2018 long-term debt financing activity as of March 31, 2018 Credit Ratings Amount Entity Date Issued (M/S&P, unless Term Type Rate ($ in millions) otherwise noted) $500 DE Carolinas March 2018 Aa2/A 5-Year First Mortgage Bond Fixed – 3.05% $500 DE Carolinas March 2018 Aa2/A 30-Year First Mortgage Bo
Slide 45: Liquidity summary as of March 31, 2018
Liquidity summary as of March 31, 2018 ($ 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 $ 1,550 $ 1,250 $ 800 $ 600 $ 300 $ 150 $ 700 $ 8,
Slide 46: 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
Slide 47: Regulatory overview
Regulatory overview DUKE ENERGY SPRING UPDATE 2018 47
Slide 48: Current electric rate information by jurisdiction
Current electric rate information by jurisdiction North South Ohio Kentucky Florida Indiana Carolina Carolina (Electric) (Electric) $15.7 B (1) (DEC) Retail Rate Base $11.5B (2) $7.0 B (3) $1.3 B (4) $650 M (5) $9.5 B (1) (DEP) $1.6 B (DEC) 4Q 2017 $0.4 B Wholesale Rate Base $1.4 B (2) $550 M $0 $3.
Slide 49: Current electric rate information by jurisdiction (continued)
Current electric rate information by jurisdiction (continued) General Rate Case Provisions North South Ohio Kentucky Florida Indiana Carolina Carolina (Electric) (Electric) Notice of Intent Required? Yes Yes Yes Yes (1) Yes Yes Notice Period 30 Days 30 Days 60 Days Varies 30 Days 28 Days Historical
Slide 50: Current gas rate information by jurisdiction
Current gas rate information by jurisdiction North South Ohio Kentucky Tennessee Carolina Carolina (Gas) (Gas) Rate Base ($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
Slide 51: Tax reform summary
Tax reform summary DUKE ENERGY SPRING UPDATE 2018 51
Slide 52: 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 Received Commission approval to utilize tax change t
Slide 53: Segment Overviews
Segment Overviews DUKE ENERGY SPRING UPDATE 2018 53
Slide 54: 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)(
Slide 55: 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 12% • 47% joint owner • Construction underway under LNTPs 75% 87% • Projected in service
Slide 56: 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 SPRING UPDATE 2018 56
Slide 57: Other information
Other information DUKE ENERGY SPRING UPDATE 2018 57
Slide 58: Upcoming events
Upcoming events Event Date 2Q 2018 earnings call (tentative) August 2, 2018 3Q 2018 earnings call (tentative) November 2, 2018 DUKE ENERGY SPRING UPDATE 2018 58
Slide 59: 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
Slide 60: 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
Slide 61: For additional information on Duke Energy
For additional information on Duke Energy, please visit: www.duke-energy.com/investors DUKE ENERGY SPRING UPDATE 2018 61
Slide 62: Non-GAAP Reconciliations 2018 Spring Update
Duke Energy Corporation Non-GAAP Reconciliations 2018 Spring Update Adjusted Diluted Earnings per Share (EPS) The materials for Duke Energy Corporation’s (Duke Energy) 2018 Spring Update include a discussion of adjusted diluted EPS for the quarter-to-date periods ended March 31, 2018 and 2017 and th
Slide 63: Non-GAAP definitions: adjusted segment income
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 regulatory orders or asset impairments. Adjusted Segment Income and Adjusted Other Net Expense The materials for
Slide 64: Dividend Payout Ratio
Dividend Payout Ratio The materials for Duke Energy’s 2018 Spring 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
Slide 65: Available Liquidity
Available Liquidity The materials for Duke Energy’s 2018 Spring Update include a discussion of Duke Energy’s available liquidity balance. The available liquidity balance presented is a non-GAAP financial measure as it represents Cash and cash equivalents, excluding amounts unavailable for operations
Slide 66: Reported to adjusted earnings reconciliation, three months ended March 31, 2018
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Three Months Ended March 31, 2018 (Dollars in millions, except per-share amounts) Special Items Costs to Impairment Achieve Sale of of Equity Reported Piedmont Regulatory Retired Method Impacts of Total Adjusted Earnings Merger Set
Slide 67: 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
Slide 68: Reported to adjusted earnings reconciliation, three months ended March 31, 2017
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Three Months Ended March 31, 2017 (Dollars in millions, except per-share amounts) Special Item Reported Costs to Achieve Adjusted Earnings Piedmont Merger Earnings SEGMENT INCOME Electric Utilities and Infrastructure $ 635 $ — $ 63
Slide 69: Adjusted effective tax reconciliation
DUKE ENERGY CORPORATION ADJUSTED EFFECTIVE TAX RECONCILIATION March 2018 (Dollars in millions) Three Months Ended March 31, 2018 Balance Effective Tax Rate Reported Income From Continuing Operations Before Income Taxes $ 803 Costs to Achieve Piedmont Merger 17 Regulatory Settlements 86 Sale of Retir
Slide 70: Available Liquidity Reconciliation
Duke Energy Corporation Available Liquidity Reconciliation As of March 31, 2018 (In millions) Cash and Cash Equivalents $ 421 Less: Certain Amounts Held in Foreign Jurisdictions (6) Less: Unavailable Domestic Cash (105) 310 Plus: Remaining Availability under Master Credit Facilities and other facili
Slide 71: Adjusted book return on equity, 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 $
Slide 72: Adjusted book return on equity, 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
Slide 73: Adjusted book return on equity, 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
Slide 74: 2018 Forecasted Cash Flow Reconciliation
Duke Energy Corporation 2018 Forecasted Cash Flow Reconciliation, Required by SEC Regulation G ($ in millions) Primary Sources: Forecast 2018 Adjusted net income (1) (a) $ 3,360 Depreciation & amortization (a) 4,675 Deferred and accrued taxes (a) 820 Other sources / (uses), net (a) (355) Total Sourc
Slide 75: 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
Slide 76: 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%
Slide 77: 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
Slide 78: 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
Slide 79: 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.
Slide 80: 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
Slide 81: 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