Start Time: 10:00 January 1, 0000 10:36 AM ET Duke Energy Corporation (NYSE:DUK) Q1 2024 Earnings Conference Call May 07, 2024, 10:00 AM ET Company Participants Lynn Good - Chair and CEO Brian Savoy - EVP and CFO Harry Sideris - President Abby Motsinger - VP, IR Conference Call Participants Shar Pourreza - Guggenheim Partners David Arcaro - Morgan Stanley Durgesh Chopra - Evercore Anthony Crowdell - Mizuho Carly Davenport - Goldman Sachs Jeremy Tonet - JPMorgan Operator Hello, and welcome to Duke Energy Fir ...

Duke Energy Corporation (DUK) reported first-quarter 2024 earnings per share (EPS) of $1.44 per share, which increased 42.6% from the year-ago quarter’s level of $1.01. The Zacks Consensus Estimate for first-quarter earnings was pegged at $1.39.Total RevenuesTotal operating revenues came in at $7.67 billion, which rose 5.4% from $7.28 billion in the year-ago period. However, the top line lagged the Zacks Consensus Estimate of $7.71 billion by 0.5%.The Regulated electric unit’s operating revenues were $6.73 ...

[PART I. FINANCIAL INFORMATION](index=9&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=9&type=section&id=Item%201.%20Financial%20Statements) This section presents Duke Energy Corporation's unaudited Q1 2024 consolidated financial statements and related notes [Duke Energy Corporation Financial Statements](index=9&type=section&id=Duke%20Energy%20Corporation%20Financial%20Statements) Q1 2024 vs Q1 2023 Consolidated Financial Highlights (in millions, except EPS) | Financial Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Total Operating Revenues** | $7,671 | $7,276 | | **Operating Income** | $1,963 | $1,674 | | **Net Income** | $1,151 | $761 | | **Net Income Available to Common Stockholders** | $1,099 | $765 | | **Basic and Diluted EPS** | $1.44 | $1.01 | | **Net Cash from Operating Activities** | $2,474 | $1,483 | Consolidated Balance Sheet Summary (in millions) | Balance Sheet Item | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | $178,670 | $176,893 | | **Total Liabilities** | $128,032 | $126,706 | | **Total Equity** | $50,638 | $50,187 | [Subsidiary Financial Statements](index=15&type=section&id=Subsidiary%20Financial%20Statements) Q1 2024 Net Income by Subsidiary (in millions) | Subsidiary | Q1 2024 Net Income | Q1 2023 Net Income | | :--- | :--- | :--- | | Duke Energy Carolinas, LLC | $430 | $272 | | Progress Energy, Inc. | $435 | $359 | | Duke Energy Progress, LLC | $272 | $169 | | Duke Energy Florida, LLC | $179 | $205 | | Duke Energy Ohio, Inc. | $94 | $100 | | Duke Energy Indiana, LLC | $67 | $106 | | Piedmont Natural Gas Company, Inc. | $246 | $232 | [Combined Notes to Condensed Consolidated Financial Statements](index=42&type=section&id=Combined%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The sale of substantially all assets in the Commercial Renewables business segment was completed in **2023**. The remaining asset disposals are expected to be finished by mid-**2024**. This business is now classified as discontinued operations[84](index=84&type=chunk)[85](index=85&type=chunk) Loss from Discontinued Operations (in millions) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating revenues | $(6) | $80 | | (Gain) Loss on disposal | $(10) | $220 | | Loss from discontinued operations | $(3) | $(209) | Segment Income (in millions) | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Electric Utilities and Infrastructure (EU&I) | $1,021 | $791 | | Gas Utilities and Infrastructure (GU&I) | $284 | $287 | - Duke Energy Carolinas and Duke Energy Progress are seeking **20**-year subsequent license renewals for all their nuclear stations, including the Oconee Nuclear Station, to extend operations from **60** to **80** years[103](index=103&type=chunk)[108](index=108&type=chunk) - Duke Energy Carolinas received approval for a multi-year rate plan in North Carolina, increasing retail revenue by a combined **total of** **$768 million** over three years, starting with a **$436 million** increase in Year **1**[111](index=111&type=chunk) - Duke Energy Florida filed for new base rates on April **2**, **2024**, proposing a three-year plan starting in January **2025** with requested revenue increases of approximately **$593 million** in **2025**, **$98 million** in **2026**, and **$129 million** in **2027**[132](index=132&type=chunk) - Duke Energy Indiana filed for a rate increase of **$492 million** on April **4**, **2024**, representing an **average bill increase** of **16.2%** to be implemented in two steps in **2025** and **2026**[143](index=143&type=chunk) - Duke Energy Carolinas has asbestos-related reserves of **$417 million** as of March **31**, **2024**, with third-party insurance receivables of **$572 million** to cover certain losses[157](index=157&type=chunk)[158](index=158&type=chunk) - In Q**1** **2024**, Duke Energy and its subsidiaries issued a **total of** **$3.475 billion** in significant debt, including unsecured debt and first mortgage bonds[169](index=169&type=chunk) - As of March **31**, **2024**, Duke Energy had **$5.122 billion** in **available capacity** under its **$9 billion** Master Credit Facility[174](index=174&type=chunk)[176](index=176&type=chunk) - The Inflation Reduction Act (IRA) created a nuclear power Production Tax Credit (PTC) starting January **1**, **2024**. In Q**1** **2024**, Duke Energy Carolinas and Duke Energy Progress recorded **PTC deferred tax assets** of approximately **$107 million** and **$14 million**, respectively, which will be passed back to customers[350](index=350&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=85&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial performance, clean energy transition, regulatory activities, and future impacts [Executive Overview and Matters Impacting Future Results](index=85&type=section&id=Executive%20Overview%20and%20Matters%20Impacting%20Future%20Results) - The company is advancing its clean energy transition by filing for Certificates of Public Convenience and Necessity (CPCNs) for new hydrogen-capable combustion turbines at the Marshall and Roxboro plant sites to support coal retirements[114](index=114&type=chunk)[121](index=121&type=chunk)[359](index=359&type=chunk) - Significant regulatory activity is underway, with new base rate cases filed in April **2024** for Duke Energy Florida, Duke Energy Indiana, and Piedmont to recover capital investments and support grid modernization[358](index=358&type=chunk)[359](index=359&type=chunk) - Future results may be impacted by new EPA rules issued in April **2024** regulating GHG emissions and coal ash, which could materially affect operations, costs, and the company's clean energy transition timeline[363](index=363&type=chunk)[440](index=440&type=chunk) - The company anticipates recovering approximately **$1.9 billion** of deferred fuel costs in **2024**, expecting to return to historical average balances by year-end after significant under-collection in **2022**[362](index=362&type=chunk) [Results of Operations](index=87&type=section&id=Results%20of%20Operations) Duke Energy EPS Reconciliation (GAAP vs. Adjusted) | (per share) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP Reported EPS** | **$1.44** | **$1.01** | | Discontinued Operations | $0.00 | $0.19 | | **Adjusted EPS** | **$1.44** | **$1.20** | - **Adjusted EPS** increased to **$1.44** from **$1.20** YoY, primarily driven by favorable rate case impacts, improved weather, and growth from riders, which was partially offset by higher interest expense[371](index=371&type=chunk) - The **Electric Utilities and Infrastructure (EU&I) segment income** rose to **$1,021 million** from **$791 million** YoY, driven by higher revenues from rate cases, favorable weather, and increased retail sales volumes[376](index=376&type=chunk)[378](index=378&type=chunk) - The **Gas Utilities and Infrastructure (GU&I) segment income** was nearly flat at **$284 million** compared to **$287 million** YoY, as margin growth was offset by higher interest expense and O&M costs[382](index=382&type=chunk)[383](index=383&type=chunk) [Liquidity and Capital Resources](index=98&type=section&id=Liquidity%20and%20Capital%20Resources) Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Operating Activities** | $2,474 | $1,483 | | **Investing Activities** | $(3,342) | $(3,209) | | **Financing Activities** | $1,029 | $1,747 | - The significant increase in **operating cash flow** was primarily driven by a **$523 million** decrease in **net cash outflows from working capital**, largely due to the recovery of deferred fuel costs[431](index=431&type=chunk)[434](index=434&type=chunk) - As of March **31**, **2024**, Duke Energy had **sufficient liquidity** with **$459 million** in cash and **$5.1 billion** available under its **$9 billion** Master Credit Facility[424](index=424&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=99&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the company's 2023 Annual Report on Form 10-K for a detailed discussion of market risks - The report directs readers to Item **7** of the **2023** Form **10**-K for an in-depth discussion of the company's market risks[442](index=442&type=chunk) [Item 4. Controls and Procedures](index=99&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material internal control changes - The CEO and CFO have concluded that the company's disclosure controls and procedures are effective in providing reasonable assurance of compliance as of March **31**, **2024**[445](index=445&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls over financial reporting[446](index=446&type=chunk) [PART II. OTHER INFORMATION](index=101&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=101&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Notes 4 and 5 of the financial statements and the 2023 Form 10-K for legal proceedings - For details on legal, regulatory, and environmental matters, the report refers to Notes **4** and **5** of the Condensed Consolidated Financial Statements and the **2023** Form **10**-K[447](index=447&type=chunk) [Item 1A. Risk Factors](index=101&type=section&id=Item%201A.%20Risk%20Factors) This section updates 2023 10-K risk factors, highlighting clean energy strategy, new EPA rules, and CCR management - The company's ability to achieve its net-zero carbon emissions goal by **2050** is subject to significant risks, including regulatory approvals, development of new technologies like carbon capture, and the successful relicensing of its nuclear fleet[449](index=449&type=chunk)[450](index=450&type=chunk)[451](index=451&type=chunk) - New EPA rules issued in April **2024** impose stringent GHG emission standards and expand coal ash regulations, which may increase compliance costs, impact generation resource mix, and affect the timeline for carbon-reduction targets[455](index=455&type=chunk)[456](index=456&type=chunk)[459](index=459&type=chunk) - Managing large volumes of Coal Combustion Residuals (CCR) presents operational and financial risks, with potential for increased costs as closure and remediation work progresses under evolving federal and state regulations[457](index=457&type=chunk)[458](index=458&type=chunk)[460](index=460&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=104&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the reporting period - None reported for the period[461](index=461&type=chunk) [Item 5. Other Information](index=104&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 trading arrangement modifications were made by directors or officers in Q1 2024 - No Rule **10**b**5**-**1** trading arrangement modifications were made by directors or officers in Q**1** **2024**[462](index=462&type=chunk) [Item 6. Exhibits](index=104&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including indentures, credit agreements, and certifications

New rates effective in June 2024; a typical residential customer bill will decrease by almost $6 per month Savings adds to more than $11 monthly reduction that went into effect in January 2024 ST. PETERSBURG, Fla., May 7, 2024 /PRNewswire/ -- Duke Energy's Florida customers will see lower electric bills following the Florida Public Service Commission's approval of the company's request to reduce fuel charges on customer bills. As of result, a typical residential 1,000-kWh monthly customer bill will be red ...

Duke Energy (DUK) came out with quarterly earnings of $1.44 per share, beating the Zacks Consensus Estimate of $1.39 per share. This compares to earnings of $1.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.60%. A quarter ago, it was expected that this electric utility would post earnings of $1.54 per share when it actually produced earnings of $1.51, delivering a surprise of -1.95%.Over the last four quarters, the compa ...

News Release Media Contact: Gillian Moore 24-Hour: 800.559.3853 Analyst Contact: Abby Motsinger Office: 704.382.7624 May 7, 2024 Duke Energy reports first-quarter 2024 financial results CHARLOTTE, N.C. – Duke Energy (NYSE: DUK) today announced first-quarter 2024 reported EPS, prepared in accordance with Generally Accepted Accounting Principles (GAAP), and adjusted EPS of $1.44. This is compared to reported EPS of $1.01 and adjusted EPS of $1.20 for the first quarter of 2023. Adjusted EPS excludes the impact ...

Duke Energy Corporation (DUK) is scheduled to release its first-quarter 2024 results on May 7 before market open. The company delivered a negative earnings surprise of 1.95% in the last reported quarter.Moreover, Duke Energy holds a negative four-quarter average earnings surprise of 3.76%.  Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.Factors at PlayThe majority of DUK’s service territories witnessed mixed weather patterns during the January-March 2024 quarter. ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Duke Energy (DUK) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On the ...

Duke Energy (DUK) closed the most recent trading day at $98.73, moving +1.04% from the previous trading session. This change outpaced the S&P 500's 0.32% gain on the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.35%.Prior to today's trading, shares of the electric utility had gained 1.03% over the past month. This has outpaced the Utilities sector's loss of 4.88% and the S&P 500's loss of 2% in that time.Market participants will be closely following the financ ...

Midwest Lineman's Rodeo tests job skills critical to power delivery and restoration International rodeo competition featuring the world's top lineworkers to be held Oct. 19 in Bonner Springs, Kan. PLAINFIELD, Ind., April 29, 2024 /PRNewswire/ -- At a competition powered by skill and packed with competitors, 15 Duke Energy lineworkers secured spots over the weekend to compete among the most elite lineworkers in the world this fall at the International Lineman's Rodeo. Duke Energy's Midwest Lineman's Rodeo ...