Core Insights - Duke Energy's self-healing technology significantly mitigated outage impacts during recent hurricanes, preventing over 300,000 customer outages and saving more than 300 million minutes of total outage time [2][3]. Grid Resilience and Technology - The self-healing grid technology can isolate outages and reduce the number of affected customers by up to 75%, often restoring power in less than a minute [3]. - Approximately 77% of Duke Energy Florida customers benefit directly from this advanced technology [3]. - The company has hardened over 40,000 poles through its Storm Protection Plan over the past three years and inspects more than 100,000 poles annually [5]. Infrastructure Improvements - Nearly 50% of Duke Energy Florida's primary power lines are buried underground, with ongoing efforts to install more underground cables in practical areas [6]. - The company has completed over 4,000 miles of vegetation maintenance on distribution lines and 600 miles on transmission lines in the past year [7]. - Since 2021, Duke Energy has built over 16 new substations and completed more than 100 miles of new transmission lines [8]. Commitment to Reliability and Clean Energy - Duke Energy is focused on enhancing grid reliability and resilience against severe weather while also transitioning to cleaner energy sources [11]. - The company aims for net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050 [11]. Customer Service and Community Engagement - Duke Energy collaborates with first responders and emergency organizations to improve storm response and restoration efforts [9]. - The company serves 2 million customers across a 13,000-square-mile area in Florida, with a total energy capacity of 12,300 megawatts [10].

Core Points - Duke Energy is launching a monthlong campaign to support food insecurity initiatives in South Carolina, providing over $500,000 to more than 50 feeding programs [2][3] - The campaign is part of a broader effort to assist communities recovering from the impacts of Hurricane Helene, with a focus on addressing hunger [2][4] - The initiative includes community events like Yam Jam, where volunteers packaged 50,000 pounds of sweet potatoes for distribution [3][4] Funding and Support - The Duke Energy Foundation allocates over $30 million annually to philanthropic efforts in communities served by Duke Energy [6] - The current campaign will support organizations such as Mill Village Farms, Second Harvest Food Bank of Metrolina, and Harvest Hope Food Bank [2][3] - Duke Energy is also contributing $100,000 specifically to FoodShare South Carolina, including $30,000 to Mill Village Farms [3] Community Engagement - Duke Energy employees are actively volunteering throughout the month to assist with food distribution and other community support initiatives [4] - The company emphasizes the importance of community organizations in the fight against hunger and aims to raise awareness for their efforts [3][4] Company Overview - Duke Energy is a major energy holding company serving 8.4 million customers across several states, with a focus on reliability and clean energy transition [7][8] - The company is committed to achieving net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050 [8]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q3 2024 were $1.62, down from $1.94 in the same period last year [10][27] - Reported earnings per share were $1.60 compared to $1.59 last year [27] - The company reaffirmed its 2024 guidance range, trending to the lower half due to storm impacts [12][32] Business Line Data and Key Metrics Changes - Electric Utilities and Infrastructure segment saw a decrease of $0.09 in earnings per share, primarily due to higher O&M costs from hurricane restoration efforts [27] - Gas Utilities and Infrastructure segment's results were down $0.04, mainly due to increased interest expense and depreciation [28] - The other segment decreased by $0.19, reflecting a higher effective tax rate [28] Market Data and Key Metrics Changes - Weather-normalized volumes increased by 1.1% year-over-year, driven by strong commercial volumes and residential customer growth [33] - Approximately 75,000 residential customers were added in the Carolinas year-to-date, exceeding last year's figures [33] - Nearly 30,000 residential customers were added in Florida, also surpassing last year's growth [33] Company Strategy and Development Direction - The company is focused on advancing its capital plan, with grid investments accounting for half of its five-year $73 billion capital plan [20] - Recent approvals for resource plans in the Carolinas will allow for timely recovery of investments and support reliability and affordability [21][25] - The company aims for a 5% to 7% EPS growth rate through 2028, supported by constructive regulatory outcomes and economic development [13][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the recent hurricane season but expressed confidence in the company's long-term outlook [5][12] - The company is actively pursuing cost recovery strategies and expects to mitigate storm impacts in 2024 [30][78] - Management remains optimistic about load growth, projecting a trend towards the higher end of the 1.5% to 2% CAGR through 2028 [37][79] Other Important Information - The preliminary total cost estimate for the three hurricanes is between $2.4 billion to $2.9 billion for the year, with approximately $750 million recognized in Q3 [29] - The company has collected over $3 billion of deferred fuel since 2023 and is on track to normalize by year-end [43] - The company is exploring new nuclear opportunities, particularly small modular reactors (SMRs), with stakeholder support [72][74] Q&A Session Summary Question: Credit impact post-storms and tax credit monetization - Management indicated that storm costs will temporarily impact credit in 2024, with recovery expected in 2025 [49] - Tax credit monetization is on track to reach the upper part of the $300 million to $500 million range for the year [50] Question: Load growth expectations - Management reaffirmed the long-term load growth target of 1.5% to 2%, with expectations for acceleration in 2027 and 2028 [55][57] Question: Capital needs and equity financing - The company plans to maintain a balanced approach to financing, with no immediate need for additional equity [68][70] Question: New nuclear participation - Management sees promise in SMRs and is evaluating the best approach to ensure customer and investor interests are protected [72][74] Question: Earnings impact from hurricanes - Restoration costs and lost revenues from the hurricanes are expected to impact earnings by a few cents each [76][78] Question: Future resource plans in Indiana and the Carolinas - The company is focused on advancing near-term actions in both states, with no significant changes anticipated in the upcoming resource plans [92][94]

Core Insights - Duke Energy Corporation's third-quarter 2024 adjusted earnings per share (EPS) of $1.62 fell short of the Zacks Consensus Estimate of $1.73 by 6.4% and declined 16.5% from $1.94 in the same quarter last year [1] - The decline in adjusted earnings was attributed to a higher effective tax rate, storm costs, increasing interest expenses, and higher depreciation on a growing asset base [1] Financial Performance - Total operating revenues for the quarter were $8.15 billion, a 2% increase from $7.99 billion year-over-year, and exceeded the Zacks Consensus Estimate of $8 billion by 1.9% [3] - The Regulated electric unit generated operating revenues of $7.78 billion, up 1.8% year-over-year, contributing 95.4% to total revenues [3] - Revenues from the Regulated natural gas business reached $298 million, reflecting a 4.9% year-over-year increase [3] - Non-regulated Electric and Other segment revenues were $81 million, marking a 15.7% increase year-over-year [4] Operating Expenses and Income - Total operating expenses amounted to $6.02 billion, up 2.1% year-over-year, primarily due to higher fuel costs, depreciation, and natural gas expenses [5] - Operating income increased by 1.5% to $2.14 billion from $2.11 billion in the previous year [5] - Interest expenses rose to $872 million from $774 million in the third quarter of 2023 [5] Customer Metrics - The average number of customers in the Electric Utilities unit increased by 2% year-over-year [6] - Total electric sales volumes declined by 0.5% year-over-year to 72,732 gigawatt-hours [6] Segment Performance - Electric Utilities & Infrastructure segment adjusted earnings were $1,464 million, down from $1,531 million in the third quarter of 2023 [7] - Gas Utilities & Infrastructure segment reported a loss of $22 million compared to earnings of $15 million in the prior year [7] - The Other segment incurred a loss of $206 million, worsening from a loss of $59 million in the same quarter last year [8] Financial Condition - As of September 30, 2024, cash and cash equivalents stood at $376 million, up from $253 million on December 31, 2023 [9] - Long-term debt increased to $76.52 billion from $72.45 billion on December 31, 2023 [9] Cash Flow - For the first nine months of 2024, net cash from operating activities was $8.95 billion, compared to $7.31 billion in the same period last year [10] Guidance - Duke Energy reaffirmed its 2024 adjusted EPS guidance, expecting a range of $5.85-$6.10, with the Zacks Consensus Estimate at $5.98 per share [11] - The company projects long-term EPS growth of 5-7% through 2028 [11] Market Position - Duke Energy currently holds a Zacks Rank 2 (Buy) [12]

Financial Performance - Duke Energy reported GAAP EPS of $1.60 for Q3 2024, a slight increase from $1.59 in Q3 2023, while adjusted EPS decreased to $1.62 from $1.94 due to higher effective tax rates and storm costs [350]. - GAAP reported earnings for the three months ended September 30, 2024, were $1,226 million, with an EPS of $1.60, compared to $1,213 million and an EPS of $1.59 for the same period in 2023 [352]. - Adjusted earnings for the three months ended September 30, 2024, were $1,236 million, resulting in an adjusted EPS of $1.62, down from $1,487 million and an adjusted EPS of $1.94 in the prior year [352]. - For the nine months ended September 30, 2024, GAAP reported EPS increased to $4.17 from $2.27 in the same period of 2023, primarily due to higher impairments on the sale of the Commercial Renewables business in the prior year [354]. - Adjusted EPS for the nine months ended September 30, 2024, was $4.24, compared to $4.05 for the same period in 2023, driven by growth from rate increases and higher sales volumes [354]. - Operating revenues for the three months ended September 30, 2024, were $7,852 million, an increase of $137 million from $7,715 million in 2023 [358]. - Operating revenues for Duke Energy Carolinas increased by $1,256 million (20.4%) for the nine months ended September 30, 2024, compared to the same period in 2023 [369]. - Operating revenues for Duke Energy Progress increased by $494 million (10.2%) for the nine months ended September 30, 2024, compared to the same period in 2023 [380]. - Operating revenues for the nine months ended September 30, 2024, increased to $1,139 million, up from $1,119 million in 2023, representing a variance of $20 million [399]. Customer Impact and Service Reliability - Approximately 3.5 million customers were impacted by Hurricane Helene, marking the largest number of outages from a single event in Duke Energy's history [338]. - Duke Energy's ongoing investments in grid hardening and self-healing technologies aim to improve service reliability during severe weather events [338]. - The average number of customers for Duke Energy Carolinas increased by 2.2% for the nine months ended September 30, 2024 [370]. - The average number of customers increased by 1.6% compared to the prior year, indicating growth in the customer base [402]. - The average number of customers for Duke Energy Florida increased by 2.2% compared to the prior year [386]. Regulatory and Rate Cases - Duke Energy Carolinas filed a rate case in January 2024, the first since 2018, reflecting $1.5 billion in transmission and distribution investments, with new rates effective August 1, 2024 [340]. - Duke Energy Florida proposed a three-year rate plan starting January 2025, including $4.9 billion in investments to reduce outages and expand solar generation [340]. - Duke Energy Indiana filed a general rate case requesting a $492 million revenue increase, the first since 2019, to support grid reliability and meet environmental regulations [340]. - The company is pursuing cost recovery for storm-related expenditures through regulatory frameworks, focusing on balancing bill impacts for customers [338]. - Cost recovery for future expenditures will be pursued through the normal ratemaking process with federal and state utility commissions [416]. Environmental Initiatives and Challenges - Duke Energy's clean energy transition includes the launch of the PowerPair program, which enrolled over 1,300 customers in its first three months, offering incentives up to $9,000 for solar and battery installations [338]. - The company is actively participating in legal challenges to the EPA's 2024 CCR Rule, which expands regulatory requirements for coal ash management [342]. - EPA Rule 111 requires existing coal-fired power plants to reduce GHG emissions by 90% starting in 2032, impacting future generation investments [416]. - Duke Energy is participating in legal challenges to EPA Rule 111, which could materially impact the company [416]. - Duke Energy's Portfolio 3 is recommended for an orderly energy transition, aiming to exit coal by 2035 and enhance energy efficiency and demand response options [417]. Operating Expenses and Financial Metrics - Total operating expenses for the three months ended September 30, 2024, were $5,743 million, up from $5,678 million in the prior year, reflecting a $143 million increase in depreciation and amortization [358]. - Operating expenses for Duke Energy Carolinas increased by $858 million (18.5%) primarily due to higher claim reserves related to captive insurance and increased employee benefit obligations [369]. - Operating expenses increased by $211 million due to higher fuel used in electric generation and purchased power, partially offset by lower natural gas prices [383]. - Interest expense increased due to higher outstanding debt balances and interest rates across both Electric and Gas Utilities segments [360][361]. - Interest expenses increased across the board due to higher outstanding debt balances and interest rates [389]. Cash Flow and Capital Expenditures - Cash flows from operating activities increased to $8,951 million, up from $7,309 million in the prior year, reflecting a variance of $1,642 million [409]. - Capital, investment, and acquisition expenditures totaled $(9,199) million, a decrease of $141 million compared to $(9,340) million in 2023 [412]. - Net cash provided by financing activities was $990 million, down from $2,413 million in the previous year, a decrease of $1,423 million [414]. - Interest expense increased to $135 million, up from $120 million, primarily due to higher outstanding debt balances and interest rates [399]. Segment Performance - The segment loss for Gas Utilities and Infrastructure was $25 million for the three months ended September 30, 2024, compared to a profit of $15 million in the same period of 2023 [361]. - Operating income for Gas Utilities and Infrastructure decreased to $13 million from $33 million year-over-year, reflecting a $20 million decline [361]. - The nine-month results for Gas Utilities and Infrastructure showed a $32 million increase in operating revenues compared to the previous year, driven by various rate increases [363]. - Operating income for Duke Energy Florida increased by $71 million, reaching $1,336 million compared to $1,265 million in the prior year [390]. - Duke Energy Ohio's operating revenues increased by $16 million, driven by a $35 million increase in retail revenue riders and a $31 million increase from higher pricing in rate cases [393].

Core Viewpoint - Duke Energy reported quarterly earnings of $1.62 per share, missing the Zacks Consensus Estimate of $1.73 per share, and down from $1.94 per share a year ago, indicating an earnings surprise of -6.36% [1][2] Financial Performance - The company posted revenues of $8.15 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.98%, compared to $7.99 billion in the same quarter last year [2] - Over the last four quarters, Duke Energy has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Duke Energy shares have increased approximately 17.1% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.65 on revenues of $7.66 billion, and for the current fiscal year, it is $5.98 on revenues of $30.47 billion [7] - The estimate revisions trend for Duke Energy is currently favorable, which may influence future stock movements [6][5] Industry Context - The Utility - Electric Power industry is ranked in the top 37% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

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Core Insights - Duke Energy has released its third-quarter 2024 financial results, which will be discussed in an investor presentation [1][2] - The company is one of America's largest energy holding companies, serving 8.4 million electric customers and 1.7 million natural gas customers across several states [2] Financial Performance - The financial results for the third quarter of 2024 are available on Duke Energy's investor website [1] - An investor presentation is scheduled to discuss these results and other business updates [1] Business Operations - Duke Energy is focused on a clean energy transition, aiming for net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050 [3] - The company is investing in electric grid upgrades and cleaner energy sources, including expanded energy storage, renewables, natural gas, and nuclear [3]

Financial Performance - Third-quarter 2024 reported EPS was $1.60 and adjusted EPS was $1.62, compared to reported EPS of $1.59 and adjusted EPS of $1.94 in the same quarter of 2023[1]. - The adjusted EPS guidance for 2024 is reaffirmed in the range of $5.85 to $6.10, trending towards the lower half of the range[4]. - Net income available to common stockholders was $1,226 million, resulting in an earnings per share (EPS) of $1.60 for the same period[35]. - For the nine months ended September 30, 2024, reported earnings for Electric Utilities and Infrastructure segment reached $3,562 million, with adjusted earnings of $3,600 million[38]. - Net income available to common stockholders for the nine months was $3,211 million, leading to an EPS of $4.17[38]. - The company reported a basic and diluted earnings per share of $4.17 for the nine months ended September 2024, compared to $2.27 in the prior year, representing an increase of 83.7%[57]. - Net income for the nine months ended September 30, 2024, was $3,387 million, compared to $1,878 million for the same period in 2023, reflecting an increase of 80.1%[60]. - The company reported a total of $1,744 million in net income available to common stockholders, indicating strong profitability[68]. Segment Performance - Electric Utilities and Infrastructure reported segment income of $1,451 million, slightly up from $1,447 million in Q3 2023[8]. - Gas Utilities and Infrastructure reported a segment loss of $25 million, down from a segment income of $15 million in Q3 2023[10]. - Other segment recognized a loss of $222 million, compared to a loss of $59 million in the same quarter of 2023[13]. - Reported earnings for Electric Utilities and Infrastructure segment were $1,451 million, with adjusted earnings totaling $1,464 million for the three months ended September 30, 2024[35]. - Operating income for the nine months ended September 30, 2024, was $5,814 million, reflecting a decrease of $14 million compared to the previous period[64]. - Total operating revenues for Duke Energy Corporation reached $21,848 million, with regulated electric revenues contributing $20,140 million and regulated natural gas revenues at $1,497 million[68]. Costs and Expenses - Total storm restoration costs are estimated to be between $2.4 billion and $2.9 billion, impacting multiple subsidiaries[17]. - The effective tax rate for the third quarter of 2024 was 11.2%, significantly higher than 2.8% in the same quarter of 2023[15]. - Total operating expenses for the nine months ended September 2024 were $17,208 million, compared to $16,679 million in the prior year, marking an increase of 3.2%[57]. - Total operating expenses for the three months ended September 30, 2024, were $6,017 million, up from $5,743 million in the prior year, reflecting an increase of 4.8%[62]. - Interest expense increased to $2,513 million for the nine months ended September 2024, compared to $2,221 million in the prior year, reflecting a rise of 13.2%[57]. Customer and Sales Metrics - Duke Energy serves 8.4 million electric customers and 1.7 million gas customers across several states[29]. - Residential electric sales increased by 2.3% year-over-year to 26,756 GWh for the three months ended September 2024, while total retail sales rose by 0.6% to 60,451 GWh[90]. - The average number of residential customers grew by 2.2% to 7,430,021, contributing to a total of 8,514,640 retail customers across all segments[90]. - Total consolidated electric sales decreased by 0.5% to 72,732 GWh for the three months ended September 2024, but increased by 3.6% to 198,318 GWh for the nine months ended[90]. Regulatory and Compliance - The company is focused on a clean energy transition, aiming for net-zero carbon emissions from electricity generation by 2050[30]. - The ability to recover costs through regulatory processes remains a critical factor affecting liquidity and asset values[34]. - The company plans to implement new rate cases in North Carolina and South Carolina, expected to positively impact revenues in 2024[53]. - Duke Energy Corporation's regulatory assets totaled $2,300 million, highlighting the company's investments in compliance and infrastructure[70]. Operational Challenges - The company faced operational interruptions and risks associated with natural gas distribution and transmission activities, impacting financial performance[34]. - The influence of weather and natural phenomena, including severe storms and climate change, poses risks to operations and cash flows[34]. - The company recorded $62 million in impairment of assets and other charges related to the North Carolina rate case settlement[48]. Asset and Equity Position - Total assets increased to $183,566 million as of September 30, 2024, up from $176,893 million at December 31, 2023, representing a growth of approximately 3.8%[59]. - Long-term debt increased to $76,524 million as of September 30, 2024, compared to $72,452 million at December 31, 2023, representing a rise of 5.7%[59]. - Total equity attributable to Duke Energy Corporation stockholders was $49,133 million, reflecting the company's financial stability[72].

Core Points - Duke Energy Florida will reduce residential customer bills by $9.77 starting January 2025 due to an annual adjustment for fuel costs and other clause adjustments [1][2] - Commercial and industrial customers will experience bill decreases ranging from 5.1% to 11.1%, depending on various factors [2] - The company is committed to enhancing the electric grid's security, reliability, and resiliency while prioritizing affordability for customers [3] Company Overview - Duke Energy Florida, a subsidiary of Duke Energy, has an energy capacity of 12,300 megawatts and serves 2 million customers across a 13,000-square-mile area in Florida [5] - Duke Energy, a Fortune 150 company, serves 8.4 million customers across multiple states and owns a total energy capacity of 54,800 megawatts [6] Future Considerations - The company plans to file for storm cost recovery related to hurricanes Debby, Helene, and Milton in December 2024, which may affect rates as early as March 2025 [4] - Duke Energy is focused on a clean energy transition, aiming for net-zero methane emissions by 2030 and net-zero carbon emissions by 2050, while investing in electric grid upgrades and cleaner energy sources [7]