Duke Energy Corporation (holding Company) · NYSE:DUK
Duke Energy Corporation (holding Company) — Investor Presentation (August 2019)
85 slides from Duke Energy Corporation (holding Company)'s investor presentation, Aug 7, 2019
Slide 1: Summer Update 2019
DUKE ENERGY Summer Update 2019
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
Slide 3: Our investor value proposition
Our investor value proposition A SOLID LONG-TERM HOLDING 4.3% ~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
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 SUMMER UPDATE 2019 // 4
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
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
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 ▪ EV pilot programs launched in FL and proposed in NC and SC ▪ Latest proposal to install ~2
Slide 8: Generating cleaner energy
Generating cleaner energy RETIRING COAL… …REPLACING WITH LOWER-CARBON ALTERNATIVES ▪ Retired ~6 GW of coal between 2010 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
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
Slide 10: Expanding natural gas infrastructure: Atlantic Coast Pipeline
Expanding natural gas infrastructure Phase 1 ATLANTIC COAST PIPELINE ▪ Filed petition June 25th seeking SCOTUS review of the Appalachian Trail decision; DOJ and Solicitor General joined the appeal ▪ Expect SCOTUS to decide this fall whether it will Phase 2 agree to hear the appeal ▪ Received order f
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 33% Renewables 2019 – 2023 7% ADJUSTED EPS CAGR(1) LDC Electric Infrastructure Transm
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% ▪ Continued population migration to the Southeast 1.4% 1.4% drives customer and volume growth for electric and gas utilities 0.9% ▪ Nearly 25% of all jobs create
Slide 13: Pursuing legislative and regulatory activities to earn allowed ROEs
Pursuing legislative and regulatory activities to earn allowed ROEs ADJUSTED ONGOING REGULATORY ACTIVITY BOOK ROEs(1) INDIANA BASE RATE CASE 10.4% Carolinas 10.4% ▪ Filed July 2; first rate case in 16 years and includes modernized 10.6% regulatory mechanisms 10.0–10.5% ▪ Requested 10.4% ROE and 53%
Slide 14: Regulatory calendar
Regulatory calendar Pending rate case Planned/Evaluating rate case Modern recovery mechanism JURISDICTION 2019 2020 2021 2022 2023 H.B. 589 rider – NC - Filed annually DEC Evaluating – NC Planning for multiple rate cases – NC / SC H.B. 589 rider – NC - Filed annually DEP Planned – NC Planning for mu
Slide 15: North Carolina developments
North Carolina developments NORTH CAROLINA LEGISLATION NCDEQ COAL ASH ORDER ▪ SB559 would enable the NCUC to consider: ▪ NCDEQ issued order April 1 requiring low-priority ▪ Storm cost securitization sites be fully excavated ▪ Multi-year rate plans and/or ROE bands ▪ Company appealed the decision to
Slide 16: Maintaining balance sheet strength
Maintaining balance sheet strength PRIMARY KEY MESSAGES CREDIT METRICS ▪ S&P affirmed Duke Energy Corp. rating of BBB+, and revised the rating outlook to negative from stable FFO/DEBT ▪ Expect $1.1 billion refundable AMT credits in 2019-2022 Target: 15 - 16% ▪ $575 million expected to be refunded in
Slide 17: Long history of growing the dividend
Long history of growing the dividend INCREASED QUARTERLY 65 - 75% DIVIDEND PAYMENT FOR THE LONG-TERM TARGET 13TH CONSECUTIVE YEAR PAYOUT RATIO(1) ~80% OF TSR ACHIEVED THROUGH DIVIDEND REINVESTMENT OVER LAST 20 YEARS (2) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 COMMITTED TO CO
Slide 18: Appendix
Appendix ITEM SLIDES Q2 2019 results and 2019 guidance support 19-32 Financing assumptions 33-41 Regulatory overview 42-47 Sustainability/Environmental Social and Governance 48-51 Segment overviews 52-59 Upcoming events & other 60-63 DUKE ENERGY SUMMER UPDATE 2019 // 18
Slide 19: Q2 2019 results and 2019 guidance support
Q2 2019 results and 2019 guidance support DUKE ENERGY SUMMER UPDATE 2019 // 19
Slide 20: 2Q 2019 adjusted diluted EPS summary and primary drivers
2Q 2019 adjusted diluted EPS summary and primary drivers SEGMENT RESULTS VS. PRIOR YEAR QUARTER(1) ADJUSTED DILUTED EARNINGS PER SHARE Electric Utilities & Infrastructure, +$98 M (+$0.13 per share(2)) ▲ Contribution from base rate changes $2.22 $2.36 ▲ Favorable timing of O&M expenses ▲ Higher rider
Slide 21: Electric utilities quarterly weather impacts
Electric utilities quarterly weather impacts Weather segment 2019 2018 income to normal: Pretax impact Weighted avg. EPS impact Pretax impact Weighted avg. EPS impact diluted shares favorable / shares favorable / (unfavorable) (unfavorable) First Quarter ($55) 727 ($0.06) $10 701 $0.01 Second Quarte
Slide 22: Weather normalized volume trends, by electric jurisdiction
Weather normalized volume trends, by electric jurisdiction Rolling Twelve Months, as of June 30, 2019 Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Electric Carolinas Progress Florida Indiana Ohio/Kentucky Utilities 2.4% 1.7% 1.9% 1.1% 1.0% 0.9% 0.6% 0.8% 0.7% 0.6% 0.7% 0.4% 0.3% 0.5%
Slide 23: Key 2019 adjusted earnings guidance assumptions
Key 2019 adjusted earnings guidance assumptions ($ in millions) Original 2019 2019 YTD Assumptions (1) (thru 6/30/2019) Adjusted segment income/(expense)(2): Electric Utilities & Infrastructure $3,480 $1,559 Gas Utilities & Infrastructure $375 $266 Commercial Renewables $230 $99 Other ($440) ($204)
Slide 24: 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
Slide 25: 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 & $200 million change in rate base
Slide 26: 2019 pension funding and costs
2019 pension funding and costs ▪ On a consolidated basis, Duke Energy pension Pension plans are fully funded as of 12/31/2018 on a Contributions 2017A 2018A 2019E ($ in millions) PBO basis All plans $19 $141 $0 ▪ Duke Energy’s pension funding policy: ▪ Duke Energy’s policy is to fund amounts on an a
Slide 27: Regulated utilities end of year earnings base
Regulated utilities end of year earnings base(1) Electric Utilities Earnings Base ($ in billions) 2018A 2019E 2020E 2021E 2022E 2023E Duke Energy Carolinas $23.9 $24.8 $25.9 $27.1 $27.9 $29.3 Duke Energy Progress 17.0 17.9 17.9 18.5 19.5 20.2 Duke Energy Florida 12.9 14.1 15.2 16.3 17.1 17.8 Duke In
Slide 28: Capital expenditures profile
Capital expenditures profile(1) ($ 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
Slide 29: 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 $3,975 (2) Environmental
Slide 30: Capital expenditures by utility (continued)
Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy Florida 2018A 2019E 2020E 2021E 2022E 2023E 2019 - 2023 Electric Generation $403 $425 $300 $475 $100 $100 $1,400 Electric T ransmission 308 400 550 475 550 500 2,475 Electric Distribution 220 525 500 525 500 450 2,500 Environ
Slide 31: Capital expenditures by utility (continued)
Capital expenditures by utility (continued)(1) ($ 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
Slide 32: Environmental compliance expenditures
Environmental compliance expenditures Coal Ash Closure Total Project Spend 2019 – 2023 Costs Costs Through 2018(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 E
Slide 33: Financing assumptions
Financing assumptions DUKE ENERGY SUMMER UPDATE 2019 // 33
Slide 34: 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 35: Forecasted 2019 summary cash flows
Forecasted 2019 summary cash flows(1) (2) Adjusted net income $ 3,645 Depreciation & amortization 4,970 Issuances & Maturities Summary Deferred and accrued taxes(3) 1,260 (2019 Estimate) (4) $4,580 Other sources / (uses), net (340) Primary sources 9,535 $2,800 Capital expenditures (11,100) $1,835 $1
Slide 36: 2019 financing plan as of June 30, 2019
2019 financing plan as of June 30, 2019 (1) ($ in millions) $2,000 Priced Equity Forward Equity issuance YTD Forward? Settled $1,750 ATM $340 M Yes Q4 $1,500 DRIP $80 M No n/a Total Common $420 M $1,250 $1,000 $750 $500 $250 $- Holding Duke Duke Duke Duke Duke Duke Piedmont Renewables Company Energy
Slide 37: 2019 long-term debt and preferred stock financing activity
2019 long-term debt and preferred stock financing activity as of June 30, 2019 Credit Ratings Amount Entity Date Issued (M/S&P/F, unless Term Type Rate ($ in millions) otherwise noted) $400 DE Ohio January 2019 A2/A 10-Year First Mortgage Bond Fixed – 3.65% $400 DE Ohio January 2019 A2/A 30-Year Fir
Slide 38: Liquidity summary as of June 30, 2019
Liquidity summary as of June 30, 2019 Duke Duke Duke Duke Duke Duke Piedmont ($ in millions) 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 $ 1,250 $ 800 $ 600 $ 300 $ 150 $ 500 $ 8,0
Slide 39: 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
Slide 40: Credit ratings (as of June 30, 2019)
Credit ratings (as of June 30, 2019) Holding Companies Operating Companies Moody's S&P Fitch Moody's S&P DUKE ENERGY CORPORATION Stable Negative Stable DUKE ENERGY CAROLINAS, LLC Stable Negative Senior Unsecured Debt Baa1 BBB+ BBB+ Senior Secured Debt Aa2 A Senior Unsecured Debt A1 A- Commercial Pap
Slide 41: 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
Slide 42: Regulatory overview
Regulatory overview DUKE ENERGY SUMMER UPDATE 2019 // 42
Slide 43: North Carolina coal ash detail
North Carolina coal ash detail Site Ranking Tons of Ash State Actual/ Expected NCDEQ COAL ASH ORDER Remaining(1) Compliance Date Closure Date(5) Riverbend High - August 2019 March 2019 ▪ NC DEQ issued order April 1 requiring low Dan River High - August 2019 May 2019 priority sites be fully excavated
Slide 44: Overview of state commissions by jurisdiction
Overview of state commissions by jurisdiction North South Florida Indiana Ohio Kentucky Tennessee Carolina(1) 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
Slide 45: 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) $5.4 B (2) (DEC) Retail Rate Base $12.6B (3) $7.1 B (4) $1.3 B $650 M (5) $8.2 B (1) (DEP) $1.5 B (2) (DEP) $1.6 B (DEC) 3Q 2018 $0.5 B Wholesale Rate
Slide 46: General Rate Case Provisions
Current electric rate information by jurisdiction (continued) General Rate Case Provisions North South Ohio Kentucky Florida Indiana Carolina Carolina (Electric) (Electric) Notice of Intent Required? Yes Yes Yes Yes (1) Yes Yes Notice Period 30 Days 30 Days 60 Days Varies 30 Days 28 Days Historical
Slide 47: Current gas rate information by jurisdiction
Current gas rate information by jurisdiction North South Ohio Kentucky Tennessee Carolina(1) Carolina (Gas) (Gas) Rate Base ($M) $1,822 $341 $349 $900 (2) $313 Allowed ROE 10.0% 10.2% 10.2% 9.84% 9.7% 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 4/
Slide 48: Sustainability / Environmental Social and Governance (ESG)
Sustainability / Environmental Social and Governance (ESG) DUKE ENERGY SUMMER UPDATE 2019 // 48
Slide 49: Sustainability / ESG: Carbon and other reductions
Sustainability / Environmental Social and Governance (ESG) ▪ Targeting 40% reduction in carbon dioxide (CO2) emissions by 2030(1) ▪ Since 2005, decreased CO2 emissions by 31%, sulfur dioxide emissions CARBON AND OTHER by 96% and nitrogen oxides emissions by 74% REDUCTIONS ▪ 49 coal units retired (~6
Slide 50: Sustainability / ESG: Safety, employees and governance
Sustainability / Environmental Social and Governance (ESG) SAFETY – OUR NUMBER ONE PRIORITY ▪ Total Incident Case Rate (TICR) of 0.43 in 2018; one of the industry CARBON AND OTHER leaders for 4th year in a row REDUCTIONS EMPLOYEES ▪ Targeting a companywide engagement score of 76% by 2022 ▪ Named one
Slide 51: Sustainability / ESG: Industry leading disclosure
Sustainability / Environmental Social and Governance (ESG) ▪ Dow Jones Sustainability Index for 13 years in a row ▪ Over a decade of annual Sustainability reports CARBON AND OTHER ▪ Climate Report issued in 2018 analyzes 2-degree scenario REDUCTIONS ▪ Our 40% CO2 reduction goal is consistent with a
Slide 52: Segment overviews
Segment overviews DUKE ENERGY SUMMER UPDATE 2019 // 52
Slide 53: 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 54: Electric utilities & infrastructure
Electric utilities & infrastructure EIGHT UTILITIES IN COMPETITIVE CUSTOMER RATES(1) HIGH-QUALITY REGULATED ELECTRIC RESIDENTIAL 2018 EARNINGS BASE REGIONS OF THE U.S. U.S. AVG. 13.86 DEF 12.88 DEO - Electric DEK - Electric CAROLINAS DEI 12.34 4% 1% DEP (SC) 12.18 DEI DEP (NC) 11.94 12% DEC (SC) 11.
Slide 55: 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
Slide 56: 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
Slide 57: 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
Slide 58: Renewables projects detail
Renewables projects detail Megawatts Site Solar Wind Fuel Cell Total COD Location Regulated: Lake Placid 45 - - 45 Q4 2019 FL Trenton 74.9 - - 74.9 Q4 2019 FL DeBary 74.5 - - 74.5 Q1 2020 FL Catawba County(1) 69 - - 69 2020 NC (DEC) Gaston County(1) 25 - - 25 2020 NC (DEC) PPA projects(1)(2) 362 - -
Slide 59: 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 SUMMER UPDATE 2019 // 59
Slide 60: Upcoming events & other
Upcoming events & other DUKE ENERGY SUMMER UPDATE 2019 // 60
Slide 61: Upcoming events
Upcoming events Event Date 3Q 2019 earnings call (tentative) November 8, 2019 EEI Financial Conference November 10-12, 2019 DUKE ENERGY SUMMER UPDATE 2019 // 61
Slide 62: Investor relations contact information
Investor relations contact information MIKE CALLAHAN, VICE PRESIDENT INVESTOR RELATIONS ▪ Michael.Callahan@duke-energy.com ▪ (704) 382-0459 CINDY LEE, DIRECTOR INVESTOR RELATIONS ▪ Cynthia.Lee@duke-energy.com ▪ (980) 373-4077 ABBY MOTSINGER, MANAGER INVESTOR RELATIONS ▪ Abby.Motsinger@duke-energy.co
Slide 63: 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 64: For additional information on Duke Energy, please visit duke-energy.com/investors
For additional information on Duke Energy, please visit: duke-energy.com/investors
Slide 65: Non-GAAP Reconciliations Summer 2019 Update
Duke Energy Corporation Non-GAAP Reconciliations Summer 2019 Update Adjusted Diluted Earnings per Share (EPS) The materials for Duke Energy Corporation’s (Duke Energy) Summer 2019 Update include a discussion of adjusted diluted EPS for the year-to-date periods ended June 30, 2019 and 2018 and for th
Slide 66: Adjusted Segment Income and Adjusted Other Net Loss
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 Loss The materials for Duke Energy’s Summer 2019 Update include a discussion of adjusted segment incom
Slide 67: Dividend Payout Ratio
Dividend Payout Ratio The materials for Duke Energy’s Summer 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 o
Slide 68: Available Liquidity
Available Liquidity The materials for Duke Energy’s Summer 2019 Update include a discussion of Duke Energy’s available liquidity balance as of June 30, 2019. The available liquidity balance presented is a non-GAAP financial measure as it represents cash and cash equivalents, excluding certain amount
Slide 69: Reported to Adjusted Earnings Reconciliation, Three Months Ended June 30, 2018
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Three Months Ended June 30, 2018 (Dollars in millions, except per-share amounts) Special Items Costs to Regulatory Achieve and Reported Piedmont Legislative Discontinued Total Adjusted Earnings Merger Impacts Operations Adjustments
Slide 70: Reported to Adjusted Earnings Reconciliation, Six Months Ended June 30, 2018
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Six Months Ended June 30, 2018 (Dollars in millions, except per-share amounts) Special Items Costs to Regulatory Impairment Achieve and Sale of of Equity Impacts Reported Piedmont Legislative Retired Method of the Tax Discontinued
Slide 71: Reported to Adjusted Earnings Reconciliation, Twelve Months Ended December 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
Slide 72: Effective Tax Reconciliation June 2019
DUKE ENERGY CORPORATION EFFECTIVE TAX RECONCILIATION June 2019 (Dollars in millions) Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Balance Effective Tax Rate Balance Effective Tax Rate Reported Income From Continuing Operations Before Income Taxes $ 889 $ 1,877 Noncontrolling Inter
Slide 73: Adjusted Book Return on Equity, December 31, 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 $
Slide 74: Adjusted Book Return on Equity, December 31, 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 75: Adjusted Book Return on Equity, December 31, 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 76: 2019 Forecasted Cash Flow Reconciliation
Duke Energy Corporation 2019 Forecasted Cash Flow Reconciliation, Required by SEC Regulation G ($ in millions) Forecast Primary Sources: 2019 Adjusted net income (1) (a) $3,645 Depreciation & amortization (a) 4,970 Deferred and accrued taxes (a) 1,260 Other sources / (uses), net (a) (340) Total Sour
Slide 77: 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
Slide 78: 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
Slide 79: 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
Slide 80: 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
Slide 81: 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
Slide 82: 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
Slide 83: 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
Slide 84: Available Liquidity Reconciliation
Duke Energy Corporation Available Liquidity Reconciliation As of June 30, 2019 (In millions) Cash and Cash Equivalents $ 336 Less: Certain Amounts Held in Foreign Jurisdictions (31) Less: Unavailable Domestic Cash (105) 200 Plus: Remaining Availability under Master Credit Facilities and other facili
Slide 85: 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