Duke Energy Corporation (holding Company) · NYSE:DUK

Duke Energy Corporation (holding Company) — Q2 2024 Earnings Presentation

40 slides from Duke Energy Corporation (holding Company)'s earnings presentation, Aug 6, 2024

  1. Slide 1: Q2 2024 Earnings Review and Business Update

    Q2 / 2024 Earnings Review and Business Update Lynn Good / Chair and CEO Harry Sideris / President Brian Savoy / Executive Vice President and CFO August 6, 2024 // 1

  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 herein and in Duke Energy’s

  3. 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

  4. Slide 4: Pure play regulated utility operating in constructive, growing jurisdictions

    Pure play regulated utility operating in constructive, growing jurisdictions Powering the Southeast and Midwest  Significant economic development from data centers and advanced manufacturing drives long-term growth  Carolinas and Florida remain top states for population migration $73 billion five-

  5. Slide 5: Financial highlights

    Financial highlights $1.13 / $1.18 Q2 2024 REPORTED / ADJUSTED EPS 1H RESULTS IN LINE WITH EXPECTATIONS 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

  6. Slide 6: Strong track record of regulatory execution

    Strong track record of regulatory execution DE Progress DE Progress DE Kentucky DE Ohio DE Carolinas DE Carolinas DE Florida South Carolina North Carolina Electric Gas North Carolina South Carolina        Approved Approved Approved Approved Approved Approved Settlement March 2023 August 2023

  7. Slide 7: Collaborating with stakeholders to support growing jurisdictions

    Collaborating with stakeholders to support growing jurisdictions  Advancing Carolinas Resource Plan in both North Carolina and South Carolina; settlement filed with NCUC in North Carolina Carolinas  CPCN process underway in North Carolina for ~2 GW of gas generation  Annual solar procurements tar

  8. Slide 8: Q2 2024 adjusted EPS summary and primary drivers

    Q2 2024 adjusted EPS summary and primary drivers REPORTED SEGMENT RESULTS VS. PRIOR YEAR QUARTER(1) EARNINGS PER SHARE $2.57 Electric Utilities & Infrastructure, +$265M (+$0.34 per share) ▲ Weather, +$0.14 $1.13 ▲ Rate cases and riders $0.69 ▲ Volumes ▼ Interest expense ($0.32) ▼ Depreciation Q2 YTD

  9. Slide 9: 2024 EPS guidance and shaping considerations

    2024 EPS guidance and shaping considerations SHAPING CONSIDERATIONS COMPARED TO 2023 $5.85 - $6.10 2024 drivers Q3 Q4 $5.56 Return to normal weather(1) ▼ ▲ 2023 agility / higher ETR(2) ▼ ▼ Rate cases / riders / volumes ▲ ▲ Interest expense / D&A ▼ ▼ 2023 2024 Adjusted Adjusted EPS EPS Guidance 1H RE

  10. Slide 10: Strengthening retail volumes expected to continue through 2024

    Strengthening retail volumes expected to continue through 2024 RETAIL LOAD TRENDS Q2 2024 VOLUME GROWTH(1) VS. Q2 2023  Strength in residential and commercial 2.8% class volumes drove Q2 2024 growth  2.4% customer growth in the 1.9% Carolinas and Florida 1.3%  Residential decoupling effective for

  11. Slide 11: Economic development driving unprecedented growth

    Economic development driving unprecedented growth PROJECTED LOAD GROWTH FROM Advancing creative solutions ECONOMIC DEVELOPMENT (GWh)(1)  Recently executed MOUs with Amazon, Google, ~10,000 - 18,000 Microsoft and Nucor provide framework to support ~8,000 - accelerated clean energy transition 14,000

  12. Slide 12: 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 DE Carolinas  On track for 14% FFO / Debt in 2024 DE Florida $2.3  Targeting a minimum of 14% FFO / Debt over the long-term $1.5  Constructi

  13. Slide 13: Our investor value proposition

    Our investor value proposition A STRONG LONG-TERM RETURN PROPOSITION 3.7% ~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

  14. Slide 14: Appendix

    APPENDIX // 14

  15. Slide 15: Advancing Carolinas energy transition

    Advancing Carolinas energy transition SUPPLEMENTAL CAROLINAS RESOURCE NEAR-TERM ACTION PLAN PLAN FILED IN NORTH CAROLINA AND HIGHLIGHTS(1) SOUTH CAROLINA ON JANUARY 31, 2024  Reflects significant growth in economic development  6,500 MW of new solar in- opportunities since August 2023 IRP filings

  16. Slide 16: Regulatory activity details – electric rate cases

    Regulatory activity details – electric rate cases FILING DOCKET KEY STATUS TYPE NO. DRIVERS  Reached settlement with the Office of Public Counsel and other intervening parties  Settlement filed July 15, 2024  Major components of the settlement include:  Evidentiary hearings scheduled to DUKE ENE

  17. 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

  18. Slide 18: 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

  19. Slide 19: 2024 Supplemental Financial Information

    2024 SUPPLEMENTAL FINANCIAL INFORMATION // 19

  20. Slide 20: Key 2024 adjusted earnings guidance assumptions

    Key 2024 adjusted earnings guidance assumptions(1) Original 2024 2024 YTD ($ in millions) Assumptions (thru 6/30/2024) Adjusted segment income/(expense)(2): Electric Utilities & Infrastructure $4,890 $2,136 Gas Utilities & Infrastructure $570 $290 Other ($845) ($403) Duke Energy Consolidated $4,615

  21. Slide 21: 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 / ($ in millions) (unfavorable) ($ in millions) (unfavorable) First Quarter ($66) 771 ($0.07) ($2

  22. Slide 22: 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

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

    Weather normalized volume trends, by electric jurisdiction Rolling Twelve Months, as of June 30, 2024 Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Electric Carolinas Progress Florida Indiana Ohio/Kentucky Utilities 1.7% 0.4% 0.9% 0.6% 0.7% 0.4% 0.8% 0.3% 0.0% -0.5% -0.2% -0.3% -1.3% -

  24. Slide 24: Financing plan update and current liquidity

    FINANCING PLAN UPDATE AND CURRENT LIQUIDITY // 24

  25. Slide 25: 2024 Financing plan

    2024 Financing plan Notional Pre- Completed Remaining Issuer Issuance Hedges Security Date Issued Term Rate(1) 2024 Maturities(2) ($ in millions) ($ in millions) ($ in millions) $600 3-year 4.85% Senior Debt January 2024 $650 5-year 4.85% (3) $815 Euro Sr. Notes April 2024 7-year 5.65% $3,000 (4) Ho

  26. Slide 26: Liquidity summary (as of June 30, 2024)

    Liquidity summary (as of June 30, 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 $ 1,500 $ 875 $ 950 $ 825 $ 225 $ 950 $ 9

  27. Slide 27: Upcoming events & other

    UPCOMING EVENTS & OTHER // 27

  28. Slide 28: Upcoming events

    Upcoming events Event Date 3Q 2024 earnings call (tentative) November 7, 2024 2024 EEI Financial Conference November 10-12, 2024 SECOND QUARTER 2024 EARNINGS REVIEW AND BUSINESS UPDATE // 28

  29. Slide 29: 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

  30. Slide 30: For additional information on Duke Energy

    HEADLINE GOES HERE For additional information on Duke Energy, please visit: duke-energy.com/investors SECOND QUARTER 2024 EARNINGS REVIEW AND BUSINESS UPDATE // 30

  31. Slide 31: Non-GAAP Reconciliations: Adjusted Earnings per Share

    Duke Energy Corporation Non-GAAP Reconciliations Second Quarter Earnings Review & Business Update August 6, 2024 Adjusted Earnings per Share (EPS) The materials for Duke Energy Corporation’s (Duke Energy) Second Quarter Earnings Review and Business Update on August 6, 2024, include a discussion of a

  32. Slide 32: Adjusted Segment Income (Loss) and Adjusted Other Net Loss

    Adjusted Segment Income (Loss) and Adjusted Other Net Loss The materials for Duke Energy’s Second Quarter Earnings Review and Business Update on August 6, 2024, include a discussion of adjusted segment income (loss) and adjusted other net loss for the quarter and year-to- date periods ended June 30,

  33. Slide 33: Funds From Operations (FFO) to Debt Ratio

    Funds From Operations (FFO) to Debt Ratio The materials for Duke Energy’s Second Quarter Earnings Review and Business Update on August 6, 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

  34. Slide 34: Reported to Adjusted Earnings Reconciliation, Three Months Ended June 30, 2024

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Three Months Ended June 30, 2024 (Dollars in millions, except per share amounts) Special Item Reported Regulatory Discontinued Total Adjusted Earnings Matters Operations Adjustments Earnings SEGMENT INCOME Electric Utilities and In

  35. Slide 35: Reported to Adjusted Earnings Reconciliation, Six Months Ended June 30, 2024

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Six Months Ended June 30, 2024 (Dollars in millions, except per share amounts) Special Item Reported Regulatory Discontinued Total Adjusted Earnings Matters Operations Adjustments Earnings SEGMENT INCOME Electric Utilities and Infr

  36. Slide 36: Reported to Adjusted Earnings Reconciliation, Three Months Ended June 30, 2023

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Three Months Ended June 30, 2023 (Dollars in millions, except per share amounts) Reported Discontinued Total Adjusted Earnings Operations Adjustments Earnings SEGMENT INCOME Electric Utilities and Infrastructure $ 850 $ — $ — $ 850

  37. Slide 37: Reported to Adjusted Earnings Reconciliation, Six Months Ended June 30, 2023

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Six Months Ended June 30, 2023 (Dollars in millions, except per share amounts) Reported Discontinued Total Adjusted Earnings Operations Adjustments Earnings SEGMENT INCOME Electric Utilities and Infrastructure $ 1,641 $ — $ — $ 1,6

  38. Slide 38: Reported to Adjusted Earnings Reconciliation, Year Ended December 31, 2023

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Year Ended December 31, 2023 (Dollars in millions, except per share amounts) Special Items Reported Regulatory Organizational Discontinued Total Adjusted Earnings Matters Optimization Operations Adjustments Earnings SEGMENT INCOME

  39. Slide 39: Effective Tax Reconciliation June 2024

    DUKE ENERGY CORPORATION EFFECTIVE TAX RECONCILIATION June 2024 (Dollars in millions) Three Months Ended Six Months Ended June 30, 2024 June 30, 2024 Effective Tax Effective Tax Balance Rate Balance Rate Reported Income From Continuing Operations Before Income Taxes $ 1,071 $ 2,403 Regulatory Matters

  40. Slide 40: Available Liquidity Reconciliation As of June 30, 2024

    Duke Energy Corporation Available Liquidity Reconciliation As of June 30, 2024 (In millions) Cash and Cash Equivalents $ 390 Less: Certain Amounts Held in Foreign Jurisdictions (23) Less: Unavailable Domestic Cash (127) 240 Plus: Remaining Availability under Master Credit Facilities and other facili

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