Duke Energy Corporation (holding Company) · NYSE:DUK

Duke Energy Corporation (holding Company) — Investor Presentation (March 2019)

78 slides from Duke Energy Corporation (holding Company)'s investor presentation, March 2019

1. Slide 1: March 2019 Update

   DUKE ENERGY March 2019 Update

2. 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 in the Appendix herein and

3. Slide 3: Our investor value proposition

   Our investor value proposition A SOLID LONG-TERM HOLDING 4.1% ~8-10% 4 -6% DIVIDEND YIELD(1) zzz ATTRACTIVE HIGHLY WITH DIVIDEND RISK-ADJUSTED ACHIEVABLE GROWTH TOTAL SHAREHOLDER EPS GROWTH COMMITMENT(2) RETURN(3) THROUGH 2023(4) CONSTRUCTIVE JURISDICTIONS, LOW-RISK REGULATED INVESTMENTS AND BALANCE

4. Slide 4: Advancing our strategic vision

   Advancing our strategic vision TRANSFORM THE CUSTOMER EXPERIENCE MODERNIZE THE GENERATE EXPAND NATURAL GAS ENERGY GRID CLEANER ENERGY INFRASTRUCTURE STAKEHOLDER ENGAGEMENT EMPLOYEE ENGAGEMENT AND OPERATIONAL EXCELLENCE ARE FOUNDATIONAL TO OUR SUCCESS DUKE ENERGY MARCH 2019 UPDATE // 4

5. Slide 5: Duke Energy – a large scale, highly regulated energy infrastructure company

   Duke Energy – a large scale, highly regulated energy infrastructure company ELECTRIC UTILITIES HEADQUARTERED IN & INFRASTRUCTURE CHARLOTTE, NC • Operating in six constructive jurisdictions, with attractive allowed ROEs, serving 7.7 million retail customers • Below average customer rates(1) • Balance

6. Slide 6: Complementary businesses with strong growth opportunities

   Complementary businesses with strong growth opportunities ELECTRIC UTILITIES 2019 ADJUSTED 2019-2023 2019 – 2023 & INFRASTRUCTURE EPS CONTRIBUTION(1) GROWTH CAPITAL ADJUSTED EPS CAGR(2) Consolidated 85% $29.0 B 4-6% 6-8% GAS UTILITIES & INFRASTRUCTURE 9% $6.0 B 5-6% COMMERCIAL RENEWABLES $2.5 B Elec

7. Slide 7: Modernizing the energy grid

   Modernizing the energy grid GRID IMPROVEMENT PLAN HIGHLIGHTS  Investing in battery storage and electric vehicle infrastructure – Announced $500 million in battery storage in the Carolinas over next 15 years – Launched EV pilot program in FL and advancing programs in other jurisdictions  Spending ~

8. Slide 8: Generating cleaner energy

   Generating cleaner energy RETIRING COAL… …REPLACING WITH LOWER-CARBON ALTERNATIVES  Retired ~6 GW of coal between 2011 and 2018 HIGHLY-EFFICIENT NATURAL GAS  Plan to retire additional ~1 GW of coal by 2024  W.S. Lee (DEC) and Citrus County (DEF) CCGTs in service in 2018  Western Carolinas Modern

9. Slide 9: Expanding natural gas infrastructure

   Expanding natural gas infrastructure GAS UTILITIES RESIDENTIAL GROWTH TRENDS LDC GROWTH AND GAS 1.7% 1.6% 1.6% INFRASTRUCTURE INVESTMENTS 0.8% 0.9% 0.6%  Strong customer growth drives margin growth supported by decoupling mechanisms 2016 2017 2018  Ongoing Integrity Management Programs (IMR) Midwe

10. Slide 10: Atlantic Coast Pipeline update

    Atlantic Coast Pipeline update PERMIT STATUS Phase 1  Received major DEQ permits in NC and VA in 2018, and air permit for Buckingham compressor station in January 2019  U.S. Fish & Wildlife Service Biological Opinion and Incidental Take Statement stayed – Hearing expected in May Phase 2  U.S. For

11. Slide 11: Long-term growth underpinned by robust capital plan

    Long-term growth underpinned by robust capital plan $37 BILLION GROWTH EXTENDING 4-6% LONG-TERM CAPITAL PLAN GROWTH CAGR THROUGH 2019 - 2023 2023 OFF OF 2019 GUIDANCE RANGE MIDPOINT Electric Commercial Distribution Renewables 33% 2019 – 2023 7% ADJUSTED EPS CAGR(1) LDC Electric Infrastructure Transm

12. Slide 12: Strong customer growth and O&M management support growth

    Strong customer growth and O&M management support growth ELECTRIC RESIDENTIAL GROWTH AND RETAIL VOLUME TRENDS LOAD GROWTH TRENDS 1.5% 1.5%  Higher electric usage per customer in 2018 for the 1.4% 1.4% first time in more than five years 0.9%  Continued population migration to the Southeast drives c

13. Slide 13: Managing regulatory calendar to earn allowed ROEs

    Managing regulatory calendar to earn allowed ROEs ADJUSTED REGULATORY CALENDAR BOOK ROEs(1) 10.4% 2018 2019 2020 10.4% Carolinas H.B. 589 rider – NC – filed annually 10.6% 10.0–10.5% DEC Pending – SC Evaluating – NC 11.4% 11.0% H.B. 589 rider – NC – filed annually Florida 10.5% DEP 10.5–11.0% Pendin

14. Slide 14: Maintaining balance sheet strength

    Maintaining balance sheet strength PRIMARY CREDIT METRICS KEY MESSAGES FFO/DEBT Target: 15 - 16%  Committed to maintaining strong credit 15-16% quality, including investment-grade ratings 15% ~15%  Expected equity issuances of $500 million per year 2019-2023 via DRIP/ATM programs  $1.1 billion re

15. Slide 15: Ongoing commitment to dividend growth

    Ongoing commitment to dividend growth 65 - 75% 2019 WILL BE 13TH CONSECUTIVE YEAR OF DIVIDEND GROWTH(2)(3) LONG-TERM TARGET PAYOUT RATIO(1) ~80% OF TSR ACHIEVED THROUGH DIVIDEND REINVESTMENT OVER LAST 20 YEARS (3) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E (1) Based on adjuste

16. Slide 16: Appendix

    Appendix ITEM SLIDES 2018 review and 2019 guidance support 17-31 Financing assumptions 32-39 Regulatory overview 40-46 Segment overviews 47-53 Upcoming events & other 54-58 DUKE ENERGY MARCH 2019 UPDATE // 16

17. Slide 17: 2018 review and 2019 guidance support

    2018 review and 2019 guidance support DUKE ENERGY MARCH 2019 UPDATE // 17

18. Slide 18: Delivered on our commitments in 2018

    Delivered on our commitments in 2018 WHAT WE SAID… …WHAT WE DID  Narrowed 2018 adjusted diluted EPS  Delivered within narrowed guidance range and guidance range of $4.65 to $4.85 above original guidance midpoint  Grow 2019 adjusted diluted EPS  Introduced 2019 guidance range, with midpoint withi

19. Slide 19: 2019 financial outlook

    2019 financial outlook KEY MESSAGES 2019 DRIVERS  Achieved 2018 adjusted EPS in top half of Electric Utilities & Infrastructure original 2018 guidance range • Investment programs  2019 guidance range midpoint of $5.00 is – Western Carolinas Modernization Project consistent with prior growth guidan

20. Slide 20: 2018-2019 adjusted diluted EPS waterfall

    2018-2019 adjusted diluted EPS waterfall Electric Utilities Gas Utilities Commercial 2018 Weather Other Share dilution & Infrastructure & Infrastructure Renewables ($0.22) ($0.05) ($0.15) $0.43 $0.08 $0.19 ▼ Interest expense $4.80 - $5.20 ▲ New solar ▲ Midstream resources pipes ▲ Piedmont and $4.72

21. Slide 21: Key 2019 adjusted earnings guidance assumptions

    Key 2019 adjusted earnings guidance assumptions ($ in millions) Orig. 2018 2018 2019 2019 Interest Expense Assumption Assumptions Actual Assumptions (Consolidated Total $2,238) Adjusted segment income/(expense) (1): Electric Utilities & Infrastructure $3,304 $3,330 $3,480 $672 Gas Utilities & Infras

22. Slide 22: Electric utilities quarterly weather impacts

    Electric utilities quarterly weather impacts Weather segment 2018 2017 income to normal: Pretax impact Weighted avg. EPS impact(1) Pretax impact Weighted avg. EPS impact(1) diluted shares favorable / shares favorable / (unfavorable) (unfavorable) First Quarter $10 701 $0.01 ($175) 700 ($0.15) Second

23. Slide 23: Weather normalized volume trends, by electric jurisdiction

    Weather normalized volume trends, by electric jurisdiction Rolling Twelve Months, as of Dec. 31, 2018 Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Electric Carolinas Progress Florida Indiana Ohio/Kentucky Utilities 2.6% 2.0% 2.2% 1.7% 1.8% 1.6% 1.4% 1.2% 1.3% 0.9% 1.0% 0.9% 0.9% 0.4%

24. Slide 24: Key 2019 earnings sensitivities

    Key 2019 earnings sensitivities Driver EPS Impact 1% change in earned return on equity +/- $0.49 Electric Utilities & $1 billion change in rate base +/- $0.07 Infrastructure 1% change in volumes +/- $0.13 1% change in earned return on equity +/- $0.06 Gas Utilities & $200 million change in rate base

25. Slide 25: 2019 pension funding and costs

    2019 pension funding and costs  On a consolidated basis, Duke Energy pension Pension plans are fully funded as of 12/31/2018 on a Contributions 2017A 2018A 2019E ($ in millions) PBO basis All plans $19 $141 $0  Duke Energy’s pension funding policy:  Duke Energy’s policy is to fund amounts on an a

26. Slide 26: Regulated utilities end of year earnings base

    Regulated utilities end of year earnings base(1) Electric Utilities Earnings Base ($ in billions) 2018A 2019E 2020E 2021E 2022E 2023E Duke Energy Carolinas $23.9 $24.8 $25.9 $27.1 $27.9 $29.3 Duke Energy Progress 17.0 17.9 17.9 18.5 19.5 20.2 Duke Energy Florida 12.9 14.1 15.2 16.3 17.1 17.8 Duke In

27. Slide 27: Capital expenditures profile

    Capital expenditures profile(1) ($ in millions) Electric Utilities & Infrastructure 2018A 2019E 2020E 2021E 2022E 2023E 2019 - 2023 Electric Generation (2) $ 1,821 $ 1,550 $ 1,375 $ 1,575 $ 1,425 $ 1,725 $ 7,650 Electric T ransmission 916 1,050 1,200 1,050 1,325 1,075 5,700 Electric Distribution 1,8

28. Slide 28: Capital expenditures by utility

    Capital expenditures by utility(1) ($ in millions) Duke Energy Carolinas 2018A 2019E 2020E 2021E 2022E 2023E 2019 - 2023 Electric Generation $488 $525 $575 $500 $500 $950 $3,050 Electric T ransmission 131 225 225 175 175 175 $975 Electric Distribution 675 675 825 775 800 900 $3,975 (2) Environmental

29. Slide 29: Capital expenditures by utility (continued)

    Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy Florida 2018A 2019E 2020E 2021E 2022E 2023E 2019 - 2023 Electric Generation $403 $425 $300 $475 $100 $100 $1,400 Electric T ransmission 308 400 550 475 550 500 2,475 Electric Distribution 220 525 500 525 500 450 2,500 Environ

30. Slide 30: Capital expenditures by utility (continued)

    Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy OH/KY Electric 2018A 2019E 2020E 2021E 2022E 2023E 2019 - 2023 Electric Generation $38 $25 $50 $75 $50 $25 $225 Electric T ransmission 174 175 125 100 75 75 550 Electric Distribution 289 375 325 325 325 325 1,675 (2) Environm

31. Slide 31: Environmental compliance expenditures

    Environmental compliance expenditures Coal Ash Closure Total Project Spend 2019 – 2023 Costs Costs To Date(1) Plan Duke Energy Carolinas $2,760 $950 $730 ($ in millions) Duke Energy Progress $2,900 $700 $1,190 Category 2019 – 2023 Duke Energy Indiana $930 $150 $425 Waste (closure) $2,380 Duke Energy

32. Slide 32: Financing assumptions

    Financing assumptions DUKE ENERGY MARCH 2019 UPDATE // 32

33. Slide 33: 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

34. Slide 34: Forecasted 2019 summary cash flows

    Forecasted 2019 summary cash flows(1) (2) Adjusted net income $ 3,645 Depreciation & amortization 4,970 (3) Issuances & Maturities Summary Deferred and accrued taxes 1,260 (2019 Estimate) (4) $4,580 Other sources / (uses), net (340) Primary sources 9,535 $2,800 Capital expenditures (11,100) $1,835 $

35. Slide 35: 2019 financing plan

    2019 financing plan(1) ($ in millions) $2,000 $1,750 $1,500 $1,250 $1,000 $750 $500 $250 $- Holding Duke Duke Duke Duke Duke Duke Piedmont Renewables Company Energy Energy Energy Energy Energy Energy Carolinas Progress Florida Indiana Ohio Kentucky 2019 Maturities and Debt Reduction Senior Debt Issu

36. Slide 36: Liquidity summary (as of Dec. 31, 2018)

    Liquidity summary (as of Dec. 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 $ 1,750 $ 1,400 $ 650 $ 600 $ 300 $ 150 $ 500 $ 8

37. Slide 37: Long-term debt maturities

    Long-term debt maturities(1) $4,115 $159 Regulated Utilities Maturities Detail $3,266 ($ in millions) $177 $1,706 $2,841 2019 2020 2021 $160 Duke Energy Carolinas (2) $6 $ 457 $ 503 $1,789 Duke Energy Progress (2) 603 354 604 Duke Energy Florida (2) (3) 216 517 319 $1,831 Duke Energy Indiana 63 503

38. Slide 38: Credit ratings (as of Feb. 28, 2019)

    Credit ratings (as of Feb. 28, 2019) Holding Companies Operating Companies Moody's S&P Fitch Moody's S&P DUKE ENERGY CORPORATION Stable Stable Stable DUKE ENERGY CAROLINAS, LLC Stable Stable Senior Unsecured Debt Baa1 BBB+ BBB+ Senior Secured Debt Aa2 A Senior Unsecured Debt A1 A- Commercial Paper P

39. Slide 39: Credit metrics

    Credit metrics(1) FFO/Debt 27% 25% 25% 25% 25% 24% 23% 23% 21% 22% 22% 20% 20% 20% 18% 18% 15% 15% 15% 13% 14% 2017A 2018A 2019E 2017A 2018A 2019E 2017A 2018A 2019E 2017A 2018A 2019E 2017A 2018A 2019E 2017A 2018A 2019E 2017A 2018A 2019E (2) (2) (2)(3) (2) (2) Duke Carolinas Duke Progress Duke Florid

40. Slide 40: Regulatory overview

    Regulatory overview DUKE ENERGY MARCH 2019 UPDATE // 40

41. Slide 41: Regulatory calendar

    Regulatory calendar Pending rate case Planned/Evaluating rate case Modern recovery mechanism JURISDICTION 2018 2019 2020 2021 2022 2023 H.B. 589 rider – NC - Filed annually DEC Pending – SC Evaluating – NC Planning for multiple rate cases – NC / SC H.B. 589 rider – NC - Filed annually DEP Pending –

42. Slide 42: DEP and DEC South Carolina rate case details

    DEP and DEC South Carolina rate case details Duke Energy Duke Energy Progress Carolinas Retail revenue increase requested $59 M (+10.3%) $168 M (+10.0%) Return on equity requested 10.5% Equity component of capital structure 53% Proposed rate base(1) $1.5 B $5.6 B Rates requested to be in effect, if

43. Slide 43: Overview of state commissions by jurisdiction

    Overview of state commissions by jurisdiction North South Florida Indiana Ohio Kentucky Tennessee Carolina Carolina Number of 7 7 5 5 5 3 5 Commissioners Term 6-year terms 4-year terms 4-year terms 4-year terms 5-year terms 4-year terms 6-year terms Appointed by Appointed/ Appointedby Elected by the

44. Slide 44: Current electric rate information by jurisdiction

    Current electric rate information by jurisdiction North South Ohio Kentucky Florida Indiana Carolina Carolina (Electric) (Electric) $13.5 B (1) (DEC) $4.2 B (1) (DEC) Retail Rate Base $12.6B (2) $7.1 B (3) $1.3 B $650 M (4) $8.2 B (1) (DEP) $1.3 B (1) (DEP) $1.6 B (DEC) 3Q 2018 $0.5 B Wholesale Rate

45. Slide 45: 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

46. Slide 46: 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 $341 $349 $900 (1) $250 (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 11/1/18 (3) 3/1/12 12/1/13

47. Slide 47: Segment overviews

    Segment overviews DUKE ENERGY MARCH 2019 UPDATE // 47

48. Slide 48: 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

49. Slide 49: Electric utilities & infrastructure

    Electric utilities & infrastructure COMPETITIVE REGULATED ELECTRIC EIGHT UTILITIES IN 2018 EARNINGS BASE CUSTOMER RATES HIGH-QUALITY Avg. ¢/kWh Retail Rates DEO - Electric DEK - Electric REGIONS OF THE U.S. (12 mos. ending 6/30/18)(1) 4% 1% 11.09 10.89 DEI CAROLINAS 9.24 8.95 8.87 12% 8.24 7.92 7.84

50. Slide 50: Grid improvement programs overview

    Grid improvement programs overview TARGETED UNDERGROUNDING SELF- TRANSMISSION OPTIMIZATION IMPROVEMENTS DISTRIBUTION ENTERPRISE HARDENING & SYSTEM RESILIENCY UPGRADES COMMUNICATION ADVANCED NETWORK METERING UPGRADES INFRASTRUCTURE (AMI) CUSTOMER BENEFITS Provide Improve Enable Increased information

51. Slide 51: Gas utilities & infrastructure

    Gas utilities & infrastructure GAS UTILITIES WITH LOW VOLUMETRIC EXPOSURE DUE TO MOSTLY FIXED MARGINS… 13% 15% MARGIN STABILIZING MECHANISMS 72% 87% 1. Purchased Gas Adjustment All States MOSTLY 2. Uncollectible Recovery All States FIXED MARGINS 3. Integrity Management Rider North Carolina (“IMR”) a

52. Slide 52: Commercial Renewables

    Commercial Renewables LARGE SCALE BUSINESS WITH INDUSTRY- RAPID GROWTH FROM LEADING OPERATING EXPERTISE PROJECT DEVELOPMENT (GROSS MW CAPACITY)(1)  Top-ten owner of wind and solar in the U.S., with ~3,400 MW of operating projects and ~$5 billion invested  Duke Energy Renewable Services – wholly-ow

53. Slide 53: 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 MARCH 2019 UPDATE // 53

54. Slide 54: Upcoming events & other

    Upcoming events & other DUKE ENERGY MARCH 2019 UPDATE // 54

55. Slide 55: Upcoming events

    Upcoming events Event Date 1Q 2019 earnings call (tentative) May 9, 2019 2Q 2019 earnings call (tentative) August 6, 2019 3Q 2019 earnings call (tentative) November 8, 2019 DUKE ENERGY MARCH 2019 UPDATE // 55

56. Slide 56: 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

57. Slide 57: 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

58. Slide 58: For additional information on Duke Energy, please visit duke-energy.com/investors

    For additional information on Duke Energy, please visit: duke-energy.com/investors

59. Slide 59: Non-GAAP Reconciliations March 2019 Update

    Duke Energy Corporation Non-GAAP Reconciliations March 2019 Update Adjusted Diluted Earnings per Share (EPS) The materials for Duke Energy Corporation’s (Duke Energy) March 2019 Update include a discussion of adjusted diluted EPS for the quarters and year-to-date periods ended December 31, 2018 and

60. Slide 60: Non-GAAP measure definitions

    annual growth of 4% - 6% through 2023 in adjusted diluted EPS (on a compound annual growth rate (CAGR) basis). Adjusted diluted EPS is a non-GAAP financial measure as it represents diluted EPS from continuing operations attributable to Duke Energy Corporation shareholders, adjusted for the per share

61. Slide 61: Dividend Payout Ratio

    Dividend Payout Ratio The materials for Duke Energy’s March 2019 Update include a discussion of Duke Energy’s forecasted dividend payout ratio of 65% - 75% based upon adjusted diluted EPS. This payout ratio is a non-GAAP financial measure as it is based upon forecasted diluted EPS from continuing op

62. Slide 62: Available Liquidity and Business Mix Percentage

    Available Liquidity The materials for Duke Energy’s March 2019 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,

63. Slide 63: Reported to adjusted earnings reconciliation, twelve months ended Dec 31, 2018

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Twelve Months Ended December 31, 2018 (Dollars in millions, except per-share amounts) Special Items Costs to Regulatory Achieve and Sale of Impacts Reported Piedmont Legislative Retired Impairment of the Discontinued Total Adjusted

64. Slide 64: Reported to adjusted earnings reconciliation, twelve months ended Dec 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

65. Slide 65: Adjusted effective tax reconciliation

    DUKE ENERGY CORPORATION ADJUSTED EFFECTIVE TAX RECONCILIATION December 2018 (Dollars in millions) Three Months Ended December 31, 2018 Year Ended December 31, 2018 Balance Effective Tax Rate Balance Effective Tax Rate Reported Income From Continuing Operations Before Income Taxes $ 433 $ 3,073 Costs

66. Slide 66: Available Liquidity Reconciliation

    Duke Energy Corporation Available Liquidity Reconciliation As of December 31, 2018 (In millions) Cash and Cash Equivalents $ 442 Less: Certain Amounts Held in Foreign Jurisdictions (7) Less: Unavailable Domestic Cash (67) 368 Plus: Remaining Availability under Master Credit Facilities and other faci

67. Slide 67: Operations, Maintenance and Other Expense

    Duke Energy Corporation Operations, Maintenance and Other Expense (In millions) Actual Actual Actual Actual Forecast December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 Operation, maintenance and other(a) $5,539 $6,223 $5,944 $6,463 $6,035 Impact of the Adoption

68. Slide 68: Adjusted Book Return on Equity, 2018

    DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2018 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 2018 $ 1,071 $

69. Slide 69: 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 $

70. Slide 70: 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

71. Slide 71: 2019 Forecasted Cash Flow Reconciliation

    Duke Energy Corporation 2019 Forecasted Cash Flow Reconciliation, Required by SEC Regulation G February 14, 2019 ($ in millions) Forecast 2019 Primary Sources: Adjusted net income (1) (a) $3,645 Depreciation & amortization (a) 4,970 Deferred and accrued taxes (a) 1,260 Other sources / (uses), net (a

72. Slide 72: FFO to Debt Calculation - Duke Energy Corporation

    FFO to Debt Calculation Duke Energy Corporation (in millions) Years Ended December 31, 2018 2017 Actual Actual Cash From Operations $ 7,186 $ 6,624 Working capital adjustment (1) 138 752 ARO spend 533 571 Capitalized Interest (161) (128) CR3 securitization adjustment (52) (53) Lease imputed adjustme

73. Slide 73: FFO to Debt Calculation - Duke Energy Carolinas

    FFO to Debt Calculation Duke Energy Carolinas (in millions) Years Ended December 31, 2018 2017 Actual Actual Cash From Operations $ 2,530 $ 2,634 Working capital adjustment (1) 96 (54) ARO spend 230 271 Capitalized Interest (35) (45) Lease imputed adjustments 40 36 Funds From Operations 2,861 2,842

74. Slide 74: FFO to Debt Calculation - Duke Energy Progress

    FFO to Debt Calculation Duke Energy Progress (in millions) Years Ended December 31, 2018 2017 Actual Actual Cash From Operations $ 1,628 $ 1,195 Working capital adjustment (1) (88) 520 ARO spend 195 192 Capitalized Interest (26) (21) Lease imputed adjustments 62 62 Funds From Operations 1,771 1,948

75. Slide 75: FFO to Debt Calculation - Duke Energy Florida

    FFO to Debt Calculation Duke Energy Florida (in millions) Years Ended December 31, 2018 2017 Actual Actual Cash From Operations $ 1,109 $ 1,015 Working capital adjustment (1) (129) 229 ARO spend 35 56 Capitalized Interest (25) (24) CR3 securitization adjustment (52) (53) Lease imputed adjustments 56

76. Slide 76: FFO to Debt Calculation - Duke Energy Indiana

    FFO to Debt Calculation Duke Energy Indiana (in millions) Years Ended December 31, 2018 2017 Actual Actual Cash From Operations $ 1,006 $ 969 Working capital adjustment (1) (17) (102) ARO spend 69 45 Capitalized Interest (27) (9) Lease imputed adjustments 17 19 Funds From Operations 1,048 922 Notes

77. Slide 77: FFO to Debt Calculation - Duke Energy Ohio

    FFO to Debt Calculation Duke Energy Ohio (in millions) Years Ended December 31, 2018 2017 Actual Actual Cash From Operations $ 570 $ 479 Working capital adjustment (1) (32) 15 ARO spend 3 7 Capitalized Interest (17) (10) Lease imputed adjustments 11 12 Funds From Operations 535 503 Notes payable to

78. Slide 78: FFO to Debt Calculation - Piedmont Natural Gas

    FFO to Debt Calculation Piedmont Natural Gas (in millions) Years Ended December 31, 2018 2017 Actual Actual Cash From Operations $ 478 $ 349 Working capital adjustment (1) (185) 125 Capitalized Interest 17 12 Lease imputed adjustments 9 6 Funds From Operations 319 492 Notes payable $ 198 $ 364 Curre

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