Duke Energy Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Duke Energy Corp. has filed its Q1 2024 10-Q report.</b>

AI Summary

Duke Energy CORP (DUKB) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Duke Energy Corp. filed its quarterly report (10-Q) on May 7, 2024. The filing covers the period ending March 31, 2024. Duke Energy Corp. is incorporated in Delaware and its fiscal year ends December 31. The company's primary business address is 525 South Tryon Street, Charlotte, NC 28202-1803. Duke Energy Corp. operates in the Electric & Other Services Combined industry (SIC 4931).

Why It Matters

For investors and stakeholders tracking Duke Energy CORP, this filing contains several important signals. This 10-Q filing provides the latest financial and operational details for Duke Energy Corp. for the first quarter of 2024, crucial for investors and analysts to assess performance and outlook. Understanding the specific details within this report allows stakeholders to evaluate the company's financial health, strategic direction, and potential risks in the current market environment.

Risk Assessment

Risk Level: low — Duke Energy CORP shows low risk based on this filing. The filing is a standard 10-Q, which is a routine quarterly report and does not inherently contain new, high-impact information that would significantly alter the risk profile.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to understand Duke Energy's performance and outlook for the remainder of 2024.

Key Numbers

• 2024-05-07 — Filing Date (Date the 10-Q was filed)
• 2024-03-31 — Reporting Period End Date (End date of the reporting quarter)
• 1231 — Fiscal Year End (Duke Energy Corp. fiscal year end)
• 4931 — SIC Code (Electric & Other Services Combined)

Key Players & Entities

• Duke Energy CORP (company) — Filer and Company Conformed Name
• 2024-05-07 (date) — Filed as of Date
• 2024-03-31 (date) — Conformed Period of Report
• 525 SOUTH TRYON STREET (address) — Business Address
• CHARLOTTE (location) — Business Address City
• NC (location) — Business Address State
• 28202-1803 (postal_code) — Business Address ZIP
• 4931 (industry_code) — Standard Industrial Classification

FAQ

Industry Context

Duke Energy Corp. operates within the Electric & Other Services Combined industry, providing essential utility services.

Regulatory Implications

The filing is a standard 10-Q under the Securities Exchange Act of 1934, requiring public companies to report quarterly financial information.

What Investors Should Do

1. Analyze the financial statements for revenue, expenses, and net income for Q1 2024.
2. Review any management discussion and analysis (MD&A) for insights into operational performance and future outlook.
3. Check for any new risk factors or updates to existing ones disclosed in the filing.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the 2023 annual report.

Key Financial Figures

• $0.001 — h registered Duke Energy Common Stock, $0.001 par value DUK New York Stock Exchange L

Filing Documents

• duk-20240331.htm (10-Q) — 6683KB
• duk-20240331x10qxexx46.htm (EX-4.6) — 625KB
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FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Duke Energy Corporation Financial Statements 9 Duke Energy Carolinas, LLC Financial Statements 14 Progress Energy, Inc. Financial Statements 18 Duke Energy Progress, LLC Financial Statements 22 Duke Energy Florida, LLC Financial Statements 26 Duke Energy Ohio, Inc. Financial Statements 30 Duke Energy Indiana, LLC Financial Statements 34 Piedmont Natural Gas Company, Inc. Financial Statements 38 Combined Notes to Condensed Consolidated Financial Statements Note 1 – Organization and Basis of Presentation 42 Note 2 – Dispositions 44 Note 3 – Business Segments 46 Note 4 – Regulatory Matters 47 Note 5 – Commitments and Contingencies 53 Note 6 – Debt and Credit Facilities 55 Note 7 – Goodwill 57 Note 8 – Related Party Transactions 58 Note 9 – Derivatives and Hedging 59 Note 10 – Investments in Debt and Equity Securities 65 Note 11 – Fair Value Measurements 69 Note 12 – Variable Interest Entities 74 Note 13 – Revenue 78 Note 14 – Stockholders' Equity 81 Note 15 – Employee Benefit Plans 82 Note 16 – Income Taxes 83 Note 17 – Subsequent Events 84 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 85 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 99 Item 4.

Controls and Procedures

Controls and Procedures 99

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 101 Item 1A.

Risk Factors

Risk Factors 101 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 103

Other Information 103

Item 5. Other Information 103 Item 6. Exhibits 104

Signatures

Signatures 107 GLOSSARY OF TERMS Glossary of Terms The following terms or acronyms used in this Form 10-Q are defined below: Term or Acronym Definition 2021 Settlement Settlement Agreement in 2021 among Duke Energy Florida, the Florida Office of Public Counsel, the Florida Industrial Power Users Group, White Springs Agricultural Chemicals, Inc. d/b/a PSC Phosphate and NUCOR Steel Florida, Inc. AFUDC Allowance for funds used during construction ARM Annual Review Mechanism Bison Bison Insurance Company Limited Brookfield Brookfield Renewable Partners L.P. CCR Coal Combustion Residuals CCR Rule A 2015 EPA rule establishing national regulations to provide a comprehensive set of requirements for the management and disposal of CCR from coal-fired power plants CEP Capital Expenditure Program CPCN Certificate of Public Convenience and Necessity the Company Duke Energy Corporation and its subsidiaries Commercial Renewables Disposal Groups Commercial Renewables business segment, excluding the offshore wind contract for Carolina Long Bay, separated into the utility-scale solar and wind group, the distributed generation group and the remaining assets COVID-19 Coronavirus Disease 2019 CRC Cinergy Receivables Company, LLC Crystal River Unit 3 Crystal River Unit 3 Nuclear Plant DEFR Duke Energy Florida Receivables, LLC DEPR Duke Energy Progress Receivables, LLC DERF Duke Energy Receivables Finance Company, LLC DOE U.S. Department of Energy Duke Energy Duke Energy Corporation (collectively with its subsidiaries) Duke Energy Ohio Duke Energy Ohio, Inc. Duke Energy Progress Duke Energy Progress, LLC Duke Energy Carolinas Duke Energy Carolinas, LLC Duke Energy Florida Duke Energy Florida, LLC Duke Energy Indiana Duke Energy Indiana, LLC Duke Energy Registrants Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont EDIT Excess defe

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION 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 terms and phrases that include "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to: The ability to implement our business strategy, including our carbon emission reduction goals; The extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate; The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations, asset retirement and construction costs related to carbon emissions reductions, and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process; The costs of decommissioning nuclear facilities could prove to be more extensive than amounts estimated and all

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Construction and development risks associated with the completion of the Duke Energy Registrants' capital investment projects, including risks related to financing, timing and receipt of necessary regulatory approvals, obtaining and complying with terms of permits, meeting construction budgets and schedules and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all; Changes in rules for regional transmission organizations, including changes in rate designs and new and evolving capacity markets, and risks related to obligations created by the default of other participants; The ability to control operation and maintenance costs; The level of creditworthiness of counterparties to transactions; The ability to obtain adequate insurance at acceptable costs; Employee workforce factors, including the potential inability to attract and retain key personnel; The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent); The performance of projects undertaken by our businesses and the success of efforts to invest in and develop new opportunities; The effect of accounting and reporting pronouncements issued periodically by accounting standard-setting bodies and the SEC; The impact of United States tax legislation to our financial condition, results of operations or cash flows and our credit ratings; The impacts from potential impairments of goodwill or equity method investment carrying values; Asset or business acquisitions and dispositions may not yield the anticipated benefits; and The actions of activist shareholders could disrupt our operations, impact our ability to execute on our business strategy, or cause fluctuations in the trading price of our common stock. Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS DUKE ENERGY CORPORATION Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, (in millions, except per share amounts) 2024 2023 Operating Revenues Regulated electric $ 6,732 $ 6,324 Regulated natural gas 866 882 Nonregulated electric and other 73 70 Total operating revenues 7,671 7,276 Operating Expenses Fuel used in electric generation and purchased power 2,335 2,377 Cost of natural gas 232 298 Operation, maintenance and other 1,379 1,310 Depreciation and amortization 1,387 1,227 Property and other taxes 386 389 Impairment of assets and other charges 1 8 Total operating expenses 5,720 5,609 Gains on Sales of Other Assets and Other, net 12 7 Operating Income 1,963 1,674 Other Income and Expenses Equity in earnings of unconsolidated affiliates 17 20 Other income and expenses, net 169 151 Total other income and expenses 186 171 Interest Expense 817 720 Income From Continuing Operations Before Income Taxes 1,332 1,125 Income Tax Expense From Continuing Operations 178 155 Income From Continuing Operations 1,154 970 Loss From Discontinued Operations, net of tax ( 3 ) ( 209 ) Net Income 1,151 761 Add: Net (Income) Loss Attributable to Noncontrolling Interests ( 13 ) 43 Net Income Attributable to Duke Energy Corporation 1,138 804 Less: Preferred Dividends 39 39 Net Income Available to Duke Energy Corporation Common Stockholders $ 1,099 $ 765 Earnings Per Share – Basic and Diluted Income from continuing operations available to Duke Energy Corporation common stockholders Basic and Diluted $ 1.44 $ 1.20 Loss from discontinued operations attributable to Duke Energy Corporation common stockholders Basic and Diluted $ — $ ( 0.19 ) Net income available to Duke Energy Corporation common stockholders Basic and Diluted $ 1.44 $ 1.01 Weighted Average Shares Outstanding Basic and Diluted 771 770 See Notes to Condensed Consolidated Financial Statements 9

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS DUKE ENERGY CORPORATION Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended March 31, (in millions) 2024 2023 Net Income $ 1,151 $ 761 Other Comprehensive Income, net of tax (a) Pension and OPEB adjustments 16 ( 1 ) Net unrealized gains (losses) on cash flow hedges 91 ( 20 ) Reclassification into earnings from cash flow hedges 2 — Net unrealized gains (losses) on fair value hedges 8 ( 11 ) Unrealized (losses) gains on available-for-sale securities ( 2 ) 6 Other Comprehensive Income (Loss), net of tax 115 ( 26 ) Comprehensive Income 1,266 735 Add: Comprehensive (Income) Loss Attributable to Noncontrolling Interests ( 13 ) 43 Comprehensive Income Attributable to Duke Energy 1,253 778 Less: Preferred Dividends 39 39 Comprehensive Income Available to Duke Energy Corporation Common Stockholders $ 1,214 $ 739 (a) Net of income tax expense of approximately $ 34 million and tax benefit of $ 8 million for the three months ended March 31, 2024, and 2023, respectively. See Notes to Condensed Consolidated Financial Statements 10

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS DUKE ENERGY CORPORATION Condensed Consolidated Balance Sheets (Unaudited) (in millions) March 31, 2024 December 31, 2023 ASSETS Current Assets Cash and cash equivalents $ 459 $ 253 Receivables (net of allowance for doubtful accounts of $ 102 at 2024 and $ 55 at 2023) 1,646 1,112 Receivables of VIEs (net of allowance for doubtful accounts of $ 102 at 2024 and $ 150 at 2023) 2,253 3,019 Inventory (includes $ 470 at 2024 and $ 462 at 2023 related to VIEs) 4,281 4,292 Regulatory assets (includes $ 110 at 2024 and 2023 related to VIEs) 3,082 3,648 Assets held for sale 11 14 Other (includes $ 44 at 2024 and $ 90 at 2023 related to VIEs) 359 431 Total current assets 12,091 12,769 Property, Plant and Equipment Cost 173,926 171,353 Accumulated depreciation and amortization ( 57,035 ) ( 56,038 ) Net property, plant and equipment 116,891 115,315 Other Noncurrent Assets Goodwill 19,303 19,303 Regulatory assets (includes $ 1,616 at 2024 and $ 1,642 at 2023 related to VIEs) 13,636 13,618 Nuclear decommissioning trust funds 10,775 10,143 Operating lease right-of-use assets, net 1,092 1,092 Investments in equity method unconsolidated affiliates 502 492 Assets held for sale 308 197 Other 4,072 3,964 Total other noncurrent assets 49,688 48,809 Total Assets $ 178,670 $ 176,893 LIABILITIES AND EQUITY Current Liabilities Accounts payable (includes $ 188 at 2024 and 2023 related to VIEs) $ 3,364 $ 4,228 Notes payable and commercial paper 4,155 4,288 Taxes accrued 708 816 Interest accrued 798 745 Current maturities of long-term debt (includes $ 929 at 2024 and $ 428 at 2023 related to VIEs) 2,274 2,800 Asset retirement obligations 603 596 Regulatory liabilities 1,309 1,369 Liabilities associated with assets held for sale 251 122 Other 2,084 2,319 Total current liabilities 15,546 17,283 Long-Term Debt (includes $ 2,134 at 2024 and $ 3,000 at 2023 related to VIEs) 74,979 72,452 Other Noncurrent Liabilities Deferre

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS DUKE ENERGY CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, (in millions) 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 1,151 $ 761 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and accretion (including amortization of nuclear fuel) 1,534 1,344 Equity component of AFUDC ( 55 ) ( 46 ) (Gains) Losses on sales of Commercial Renewables Disposal Groups ( 10 ) 220 Gains on sales of other assets ( 12 ) ( 7 ) Impairment of assets and other charges 1 8 Deferred income taxes 149 90 Equity in earnings of unconsolidated affiliates ( 17 ) ( 20 ) Payments for asset retirement obligations ( 115 ) ( 117 ) Provision for rate refunds ( 4 ) ( 33 ) (Increase) decrease in Net realized and unrealized mark-to-market and hedging transactions ( 33 ) 5 Receivables 226 754 Inventory 11 ( 275 ) Other current assets 329 262 Increase (decrease) in Accounts payable ( 553 ) ( 1,193 ) Taxes accrued ( 110 ) ( 148 ) Other current liabilities ( 208 ) ( 266 ) Other assets 41 ( 13 ) Other liabilities 149 157 Net cash provided by operating activities 2,474 1,483 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures ( 3,208 ) ( 3,146 ) Contributions to equity method investments ( 7 ) ( 6 ) Purchases of debt and equity securities ( 946 ) ( 866 ) Proceeds from sales and maturities of debt and equity securities 985 882 Net proceeds from the sales of other assets — 76 Other ( 166 ) ( 149 ) Net cash used in investing activities ( 3,342 ) ( 3,209 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the: Issuance of long-term debt 3,481 4,085 Issuance of common stock 4 — Payments for the redemption of long-term debt ( 1,392 ) ( 1,380 ) Proceeds from the issuance of short-term debt with original maturities greater than 90 days 294 2 Payments for the redemption of short-term debt with original maturities gr

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