Duke Energy(US:DUK)2025-08-05 16:13Financial Performance - Duke Energy's adjusted EPS for Q2 2025 was $1.25, up from $1.18 in Q2 2024, driven by new rates and riders despite higher operational and maintenance expenses [389]. - Duke Energy's GAAP reported EPS for Q2 2025 was $1.25, compared to $1.13 in Q2 2024, reflecting improved operational performance [388]. - GAAP reported earnings for the three months ended June 30, 2025, were $971 million, with an EPS of $1.25, compared to $886 million and $1.13 for the same period in 2024, reflecting a 9.6% increase in earnings and a 10.6% increase in EPS [391]. - For the six months ended June 30, 2025, GAAP reported EPS was $3.00, up from $2.57 in 2024, marking a 16.7% increase [392]. - Adjusted EPS for the six months ended June 30, 2025, was $3.00, compared to $2.62 in 2024, driven by new rates, higher sales volumes, and favorable weather [393]. - Operating revenues for the three months ended June 30, 2025, were $7,045 million, an increase of $225 million from $6,820 million in 2024 [400]. - Total operating expenses for the three months ended June 30, 2025, were $5,264 million, a slight increase of $116 million from $5,148 million in 2024 [400]. - Segment income for Electric Utilities and Infrastructure for the three months ended June 30, 2025, was $1,194 million, up from $1,090 million in 2024, reflecting an increase of $104 million [400]. - Operating revenues for the six months ended June 30, 2025, increased by $350 million to $1,633 million compared to $1,283 million in 2024, a growth of 27.3% [414]. - Net income for Duke Energy Progress increased by $111 million (22.4%) to $606 million for the six months ended June 30, 2025 [442]. - Duke Energy Florida's net income rose by $90 million (18.4%) to $578 million for the same period [448]. Capital Expenditures and Investments - Duke Energy entered into an Investment Agreement to receive $6 billion for a 19.7% indirect investment in Duke Energy Florida, expected to close by mid-2028 [371]. - The sale of Piedmont's Tennessee Business to Spire, Inc. for $2.48 billion is anticipated to complete in Q1 2026, supporting Duke Energy's $87 billion capital plan for 2025-2029 [371]. - Duke Energy's capital plan for 2025-2029 aims to limit the need for additional long-term debt or common equity through 2029 [371]. - Capital expenditures for the six months ended June 30, 2025, were $6,428 million, an increase of $216 million compared to $6,212 million in 2024 [481]. - Duke Energy expects to complete the sale of Piedmont's Tennessee Business for $2.48 billion in Q1 2026, with proceeds aimed at debt reduction and funding capital plans [471]. - Duke Energy's Master Credit Facility was extended to March 2030 with increased capacity from $9 billion to $10 billion, providing sufficient liquidity for funding needs [469]. Regulatory and Legal Matters - The company is pursuing cost recovery for future expenditures through normal ratemaking processes, including regulatory challenges related to the 2024 CCR Rule [377]. - Duke Energy is participating in legal challenges to EPA Rule 111, which regulates GHG emissions from power plants, with ongoing litigation in the U.S. Court of Appeals [485]. - The EPA issued the 2024 CCR Rule, expanding regulatory requirements for inactive surface impoundments, with Duke Energy filing a petition to challenge it on August 6, 2024 [486]. - The South Carolina Energy Security Act, signed on May 12, 2025, promotes new generation resources and establishes a rate stabilization mechanism for electric utilities [487]. - North Carolina's Power Bill Reduction Act, passed on July 29, 2025, retains the 2050 carbon neutrality goal but eliminates the interim 2030 carbon reduction target, focusing on reducing electricity costs [488]. - The North Carolina Senate Bill 266 enhances cost recovery mechanisms for baseload generation and allows for timely recovery of fuel costs [488]. - Duke Energy anticipates cost recovery for future expenditures through the normal ratemaking process with federal and state utility commissions [486]. - The 2024 CCR Rule case is currently in a 120-day abeyance, with a potential 60-day extension granted for further review [486]. Operational Highlights - The company expects to recover approximately $1.1 billion in storm costs over 12 months starting March 2025, following significant damage from hurricanes Debby, Helene, and Milton [373]. - Duke Energy's nuclear site Oconee received renewed licenses allowing operation until 2053 and 2054, marking a significant milestone for the company [373]. - In June 2025, Amazon announced a planned $10 billion investment in a new high-tech campus in North Carolina, highlighting Duke Energy's role in regional economic development [374]. - The company is actively monitoring supply chain stability and potential impacts from public policy changes on its capital plan execution [380]. - The effective tax rates (ETR) for the three months ended June 30, 2025, and 2024, were 14.1% and 16.1%, respectively, indicating a decrease in ETR due to increased amortization of tax credits [407]. - Interest expense for the three months ended June 30, 2025, was $535 million, an increase of $47 million from $488 million in 2024, primarily due to higher outstanding debt balances [400]. - The cost of natural gas increased by $80 million for the three months ended June 30, 2025, primarily due to higher capacity charges, while total operating expenses rose by $111 million to $440 million [414][417]. - Operating income for the three months ended June 30, 2025, was $53 million, slightly up from $52 million in 2024, indicating a marginal increase of 1.9% [414]. - The effective tax rate (ETR) for the three months ended June 30, 2025, was (200)%, down from 25% in 2024, primarily due to lower state tax expenses [415]. - Residential deliveries increased by 9.3%, commercial deliveries by 14.3%, and total throughput deliveries by 5.4% compared to the prior year [464].