Core Viewpoint - Duke Energy has requested regulatory approval to combine its two electric utilities in the Carolinas, which is expected to generate significant customer savings and operational efficiencies [1][2][3]. Summary by Sections Company Overview - Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP) have been operating separately since the 2012 merger of Duke Energy and Progress Energy, and the proposed combination aims to streamline operations and reduce costs for customers [2][12]. Projected Savings - The combination is projected to save retail customers over $1 billion from 2027 to 2038, with additional savings expected beyond 2038 [5][6]. - Savings will be realized through improved operational efficiencies, reduced redundant investments, and better resource management across a combined service area of 52,000 square miles [8][12]. Operational Efficiency - Operating as a single utility will allow for more efficient planning and resource allocation, leading to lower costs and improved grid reliability [8][12]. - The merger will enable the company to implement a more uniform approach to services and rates, reducing customer confusion and regulatory compliance costs [12]. Regulatory Process - The combination requires approvals from the North Carolina Utilities Commission, the Public Service Commission of South Carolina, and the Federal Energy Regulatory Commission [8][12]. - No immediate changes to retail rates or services will occur before 2027, with gradual blending of rates expected thereafter [7][9]. Infrastructure Modernization - Duke Energy is focused on modernizing its infrastructure to meet the growing energy needs of the Carolinas while ensuring reliable service at the lowest reasonable cost [4][16]. - The company is investing in electric grid upgrades and cleaner generation sources, including natural gas, nuclear, renewables, and energy storage [16].

Core Viewpoint - The nuclear power sector experienced a decline on Thursday, with notable drops in stock prices for several companies in the industry [1] Company Summaries - Duke Energy (DUK.US) saw a decrease of 0.69% in its stock price [1] - BWX Technologies (BWXT.US) reported a decline of 0.87% [1] - Oklo Inc (OKLO.US) experienced a significant drop of over 6.9% [1] - NuScale Power (SMR.US) fell by more than 5.3% [1]

Industry Overview - Nuclear energy is increasingly recognized as a key solution to meet rising global electricity demand while advancing the shift toward cleaner energy sources, providing a constant and reliable supply of clean energy year-round [1] - The demand for clean electricity is rapidly increasing due to industrial expansion, urbanization, rising global temperatures, the development of AI-powered data centers, and the growing adoption of electric vehicles [5] - According to the International Energy Agency (IEA), annual investment in nuclear energy is projected to surpass $150 billion by 2030, up from the current $65 billion, with installed nuclear capacity potentially exceeding 1,000 gigawatts by 2050 [4] Government Initiatives - The U.S. President has issued four executive orders aimed at modernizing regulatory frameworks, expediting reactor testing and approvals, leveraging nuclear technology for national security, and expanding the domestic nuclear industrial base [2] - These measures target an increase in U.S. nuclear capacity from about 100 gigawatts in 2024 to 400 gigawatts by 2050 [2] Investment Opportunities - Nuclear energy-related stocks, such as NextEra Energy, Duke Energy, and Constellation Energy Corporation, are becoming attractive investment options due to their ability to deliver steady output and operate continuously [3] - Investors can explore additional stocks like Dominion Energy and Entergy Corporation for further growth in the nuclear energy space [7] Company Insights - NextEra Energy operates several nuclear generation units, with its nuclear assets forming a cornerstone of its clean energy strategy, delivering steady, carbon-free baseload power [8] - Duke Energy operates 11 nuclear units with a combined capacity of nearly 10,700 megawatts, contributing 27.5% of the company's total generation in 2024 [11] - Constellation Energy is the largest nuclear power plant operator in the U.S., producing about 10% of the nation's total clean energy, with over 20 reactors across various regions [15] Future Growth Plans - Duke Energy aims to grow its nuclear capacity by nearly 250 megawatts by 2031 and has secured agreements to monetize over $500 million in nuclear production tax credits [12] - Constellation Energy is ramping up investments to grow its nuclear capacity, including upgrades to existing sites and the potential addition of up to one gigawatt of new carbon-free capacity over the next decade [17]

Core Viewpoint - August 11 is recognized as National Safe Digging Day, emphasizing the importance of calling 811 before any excavation to prevent damage to underground utility lines [1][10]. Group 1: Importance of Calling 811 - The initiative encourages contractors, homeowners, and business owners to call 811 at least three business days prior to any digging project [3][5]. - Local utilities will mark underground lines with stakes, flags, or paint to prevent accidental damage [3][5]. Group 2: Damage Statistics - Duke Energy reported over 5,000 damages to underground electric and natural gas lines from January to June 2025 across its service territories [11]. - Specifically, there were about 290 damages to underground natural gas facilities and 89 damages to the underground electric network in Ohio and Kentucky [11]. - In 2024, Duke Energy recorded more than 8,870 damages to natural gas and electric lines [11]. Group 3: Company Overview - Duke Energy Ohio/Kentucky serves 920,000 customers in a 3,000-square-mile area for electric service and 560,000 customers for natural gas in Ohio and Kentucky [7]. - Duke Energy, a Fortune 150 company, serves 8.6 million customers across multiple states and has a total energy capacity of 55,100 megawatts [8].

Group 1 - The discussion includes both macroeconomic factors and specific stocks such as Norfolk Southern (NSC), Caterpillar (CAT), and Duke Energy (DUK) [1] - The focus is on long-term investment strategies in U.S. and European equities, emphasizing undervalued growth stocks and high-quality dividend growers [2] - Sustained profitability, characterized by strong margins, stable and expanding free cash flow, and high returns on invested capital, is highlighted as a more reliable driver of returns than valuation alone [2] Group 2 - The analyst has a beneficial long position in the shares of NSC and CNI through stock ownership, options, or other derivatives [3] - The article expresses the author's own opinions and is not compensated for it, aside from Seeking Alpha [3] - Seeking Alpha clarifies that past performance does not guarantee future results and does not provide specific investment recommendations [4]

Core Insights - DataCapable has made a significant hire by appointing Sandy Buzzard as Chief Customer and Communications Officer, emphasizing its commitment to customer-centric innovation in outage detection and response [2][3] - Buzzard brings 15 years of experience from Duke Energy, where she successfully managed high-stakes outage events and developed industry-leading communication strategies [3][4] - The appointment aligns with increasing challenges in the energy sector, particularly due to extreme weather events, highlighting the need for real-world expertise and actionable solutions [5] Company Strategy - Buzzard will lead the customer communication strategy across all product lines and develop proactive crisis-response tools to enhance customer engagement [6] - DataCapable aims to transform the utility industry by not only providing tools but also delivering comprehensive solutions that address the complexities of outage management [6] Industry Context - The energy sector is facing mounting pressures from extreme weather and grid stability issues, necessitating partnerships with companies that have practical experience and innovative strategies [5] - Trust and effective communication are critical in the utility industry, where downtime can result in significant financial losses [6]

| WASHINGTON, D.C. 20549 | UNITED STATES SECURITIES AND EXCHANGE COMMISSION | | | --- | --- | --- | | FORM | 10-Q | | | (Mark One) | | | | ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | | For the quarterly period ended June 30, 2025 | | | | OR | | | | ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | | For the transition period from _________to_________ | | | | Registrant, State of Incorporation or Organization, ...

Core Insights - Duke Energy Corporation (DUK) reported second-quarter 2025 earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.19 by 5% and reflecting a 10.6% increase from $1.13 in the same quarter last year, primarily due to new rates and riders [1][9] Revenue Performance - Total operating revenues reached $7.51 billion, a 4.7% increase from $7.17 billion in the prior year, surpassing the Zacks Consensus Estimate of $7.34 billion by 2.3% [2][9] - The Regulated electric unit generated operating revenues of $6.97 billion, up 3.3% year over year, contributing 92.8% to total revenues [2] - Revenues from the Regulated natural gas business increased significantly by 33.1% year over year to $462 million [2] Expense and Income Analysis - Total operating expenses were $5.69 billion, up 4% year over year, driven by higher costs in natural gas, operation, maintenance, depreciation, and property taxes [4] - Operating income rose 7.2% to $1.83 billion from $1.71 billion in the previous year [4] Segment Performance - Electric Utilities & Infrastructure segment earnings increased to $1,194 million from $1,090 million in the second quarter of 2024 [6] - Gas Utilities & Infrastructure segment earnings remained stable at $6 million, consistent with the previous year [6] - The Non-regulated Electric and Other segment reported revenues of $78 million, a decrease of 1.3% year over year, with losses widening to $228 million from a loss of $200 million in the prior year [3][7][9] Financial Condition - As of June 30, 2025, cash and cash equivalents stood at $344 million, up from $314 million at the end of 2024 [10] - Long-term debt increased to $78.91 billion from $76.34 billion as of December 31, 2024 [10] - Net cash from operating activities for the first half of 2025 was $5.04 billion, down from $5.43 billion in the same period last year [10] Future Guidance - Duke Energy reaffirmed its 2025 adjusted EPS guidance, expecting a range of $6.17-$6.42, with the Zacks Consensus Estimate at $6.31 [11] - The company projects long-term EPS growth of 5-7% through 2029 [11]

Core Viewpoint - The nuclear power sector experienced a significant increase in stock prices, driven by positive earnings guidance from BWX Technologies for the fiscal year 2025 [1] Company Summaries - BWX Technologies (BWXT.US) saw its stock rise over 16% after raising its earnings guidance for the fiscal year 2025 [1] - Oklo Inc (OKLO.US) experienced a stock increase of over 8.5% [1] - NuScale Power (SMR.US) had a stock price increase of over 3.6% [1] - Duke Energy (DUK.US) saw its stock rise by over 2% [1]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $1.25 for the second quarter of 2025, an increase from $1.18 in 2024, reflecting strong performance across electric utilities [19][7] - The company is reaffirming its 2025 guidance range of $6.17 to $6.42 and a long-term EPS growth rate of 5% to 7% through 2029 [25][7] Business Line Data and Key Metrics Changes - Electric Utilities and Infrastructure segment saw an increase of $0.10 compared to last year, driven by top line growth from new rates implemented across Carolinas, Florida, and Indiana [19] - Gas Utilities and Infrastructure results remained flat compared to last year, consistent with the seasonality of the LDC business [19] Market Data and Key Metrics Changes - Population migration in the Southeast and Midwest continues to drive sustained customer growth, particularly over 2% in the Carolinas [20] - The economic development pipeline remains robust, with significant projects like the $10 billion AWS data center investment in North Carolina expected to create at least 500 new high-skilled jobs [22][9] Company Strategy and Development Direction - The company is increasing its Florida capital plan by $4 billion, funded by a portion of the sale proceeds from the Tennessee LDC business [6][5] - The strategic transactions, including the minority investment from Brookfield Infrastructure, are aimed at efficiently financing record growth and enhancing the credit profile [5][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the targeted EPS and credit objectives for 2025, supported by strong regulatory outcomes and operational performance [19][20] - The company is focused on advancing large-scale economic development projects and securing favorable regulatory outcomes to meet growing demand [10][8] Other Important Information - The company has announced the sale of its Tennessee LDC business for $2.5 billion, reflecting a premium valuation [6] - The company is actively advancing regulatory approval processes for new generation investments and plans to file its next Carolinas resource plan by October 1 [14] Q&A Session Summary Question: How do you think about positioning yourself within the EPS CAGR? - Management indicated that recent transactions enhance confidence in achieving the EPS growth range and solidify the company's position for the back end of the plan [31] Question: Can you elaborate on the latest Carolinas legislation? - Management noted that the legislation enhances growth attractiveness in North Carolina and supports customer affordability while maintaining the overall plan [34] Question: How are you thinking about additional opportunities across the portfolio? - Management stated that they are comfortable with the equity plans laid out and will focus on implementing current transactions [40] Question: What feedback have you received from rating agencies regarding the increased FFO to debt target? - Management reported that rating agencies have been supportive of their metrics and the recent transactions will enhance that support [42] Question: Should we assume you need to complete the Florida sell-down steps to get to the 15% FFO to debt? - Management indicated that progress through the deal is necessary to reach the 15% target [49] Question: Can you provide any color on the timing of the Amazon investment? - Management stated that the Amazon deal will ramp up starting in 2027 and will be included in future capital plans [76] Question: What drove the decisions for the recent sales? - Management emphasized the need for efficient funding of growth and maximizing opportunities in Florida [81]