Duke Energy Files 10-Q: Financials and Operations Update

TL;DR

**DUKE ENERGY 10-Q FILED: FINANCIALS OUT FOR Q2 2024. CHECK THE NUMBERS.**

AI Summary

Duke Energy Corp. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the company and its subsidiaries, including Duke Energy Ohio, Inc. and Duke Energy Carolinas, LLC. Specific financial figures and operational highlights are provided within the report.

Why It Matters

This filing provides investors and stakeholders with a crucial update on Duke Energy's financial health and operational status, impacting investment decisions and market perception.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial and operational information.

Key Players & Entities

• Duke Energy Corp. (company) — Filer of the 10-Q
• Duke Energy Ohio, Inc. (company) — Subsidiary mentioned in the filing
• Duke Energy Carolinas, LLC (company) — Subsidiary mentioned in the filing
• 20240630 (date) — End of the reporting period
• 20240806 (date) — Filing date

FAQ

Key Financial Figures

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

Filing Documents

• duk-20240630.htm (10-Q) — 8398KB
• duk-20240630x10qxexx101.htm (EX-10.1) — 4KB
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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 15 Progress Energy, Inc. Financial Statements 19 Duke Energy Progress, LLC Financial Statements 23 Duke Energy Florida, LLC Financial Statements 27 Duke Energy Ohio, Inc. Financial Statements 31 Duke Energy Indiana, LLC Financial Statements 35 Piedmont Natural Gas Company, Inc. Financial Statements 39 Combined Notes to Condensed Consolidated Financial Statements Note 1 – Organization and Basis of Presentation 43 Note 2 – Dispositions 45 Note 3 – Business Segments 47 Note 4 – Regulatory Matters 49 Note 5 – Commitments and Contingencies 55 Note 6 – Debt and Credit Facilities 57 Note 7 – Asset Retirement Obligations 59 Note 8 – Goodwill 60 Note 9 – Related Party Transactions 61 Note 10 – Derivatives and Hedging 62 Note 11 – Investments in Debt and Equity Securities 68 Note 12 – Fair Value Measurements 72 Note 13 – Variable Interest Entities 77 Note 14 – Revenue 81 Note 15 – Stockholders' Equity 87 Note 16 – Employee Benefit Plans 88 Note 17 – Income Taxes 90 Note 18 – Subsequent Events 90 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 91 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 108 Item 4.

Controls and Procedures

Controls and Procedures 108

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 109 Item 1A.

Risk Factors

Risk Factors 109 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 111

Other Information 111

Item 5. Other Information 111 Item 6. Exhibits 112

Signatures

Signatures 115 GLOSSARY OF TERMS Glossary of Terms The following terms or acronyms used in this Form 10-Q are defined below: Term or Acronym Definition 2015 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 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. 2024 CCR Rule The EPA's Legacy CCR Surface Impoundments rule issued in April 2024, which significantly expands the scope of the 2015 CCR Rule 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 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, Du

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 Six Months Ended June 30, June 30, (in millions, except per share amounts) 2024 2023 2024 2023 Operating Revenues Regulated electric $ 6,746 $ 6,176 $ 13,478 $ 12,500 Regulated natural gas 347 331 1,213 1,213 Nonregulated electric and other 79 71 152 141 Total operating revenues 7,172 6,578 14,843 13,854 Operating Expenses Fuel used in electric generation and purchased power 2,228 2,039 4,563 4,416 Cost of natural gas 78 79 310 377 Operation, maintenance and other 1,320 1,375 2,699 2,685 Depreciation and amortization 1,409 1,333 2,796 2,560 Property and other taxes 393 353 779 742 Impairment of assets and other charges 43 — 44 8 Total operating expenses 5,471 5,179 11,191 10,788 Gains on Sales of Other Assets and Other, net 6 31 18 38 Operating Income 1,707 1,430 3,670 3,104 Other Income and Expenses Equity in earnings of unconsolidated affiliates 21 20 38 40 Other income and expenses, net 167 147 336 298 Total other income and expenses 188 167 374 338 Interest Expense 824 727 1,641 1,447 Income From Continuing Operations Before Income Taxes 1,071 870 2,403 1,995 Income Tax Expense From Continuing Operations 140 119 318 274 Income From Continuing Operations 931 751 2,085 1,721 Loss From Discontinued Operations, net of tax ( 10 ) ( 955 ) ( 13 ) ( 1,164 ) Net Income (Loss) 921 ( 204 ) 2,072 557 Less: Net Income (Loss) Attributable to Noncontrolling Interests 21 16 34 ( 27 ) Net Income (Loss) Attributable to Duke Energy Corporation 900 ( 220 ) 2,038 584 Less: Preferred Dividends 14 14 53 53 Net Income (Loss) Available to Duke Energy Corporation Common Stockholders $ 886 $ ( 234 ) $ 1,985 $ 531 Earnings Per Share – Basic and Diluted Income from continuing operations available to Duke Energy Corporation common stockholders Basic and Diluted $ 1.14 $ 0.91 $ 2.59 $ 2.10 Loss from discontinued oper

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS DUKE ENERGY CORPORATION Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (in millions) 2024 2023 2024 2023 Net Income (Loss) $ 921 $ ( 204 ) $ 2,072 $ 557 Other Comprehensive Income, net of tax (a) Pension and OPEB adjustments — 1 16 — Net unrealized gains on cash flow hedges 26 26 117 6 Reclassification into earnings from cash flow hedges ( 3 ) 4 ( 1 ) 4 Net unrealized (losses) gains on fair value hedges ( 29 ) 26 ( 21 ) 15 Unrealized (losses) gains on available-for-sale securities ( 1 ) ( 2 ) ( 3 ) 4 Other Comprehensive (Loss) Income, net of tax ( 7 ) 55 108 29 Comprehensive Income (Loss) 914 ( 149 ) 2,180 586 Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests 21 16 34 ( 27 ) Comprehensive Income (Loss) Attributable to Duke Energy 893 ( 165 ) 2,146 613 Less: Preferred Dividends 14 14 53 53 Comprehensive Income (Loss) Available to Duke Energy Corporation Common Stockholders $ 879 $ ( 179 ) $ 2,093 $ 560 (a) Net of income tax benefit of approximately $ 2 million and income tax expense of $ 16 million for the three months ended June 30, 2024, and 2023, respectively and approximately $ 32 million and $ 9 million of income tax expense for the six months ended June 30, 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) June 30, 2024 December 31, 2023 ASSETS Current Assets Cash and cash equivalents $ 390 $ 253 Receivables (net of allowance for doubtful accounts of $ 119 at 2024 and $ 55 at 2023) 2,127 1,112 Receivables of VIEs (net of allowance for doubtful accounts of $ 88 at 2024 and $ 150 at 2023) 2,009 3,019 Receivable from sales of Commercial Renewables Disposal Groups 538 — Inventory (includes $ 494 at 2024 and $ 462 at 2023 related to VIEs) 4,390 4,292 Regulatory assets (includes $ 119 at 2024 and $ 110 at 2023 related to VIEs) 2,663 3,648 Assets held for sale 4 14 Other (includes $ 81 at 2024 and $ 90 at 2023 related to VIEs) 436 431 Total current assets 12,557 12,769 Property, Plant and Equipment Cost 177,974 171,353 Accumulated depreciation and amortization ( 57,874 ) ( 56,038 ) Net property, plant and equipment 120,100 115,315 Other Noncurrent Assets Goodwill 19,303 19,303 Regulatory assets (includes $ 1,754 at 2024 and $ 1,642 at 2023 related to VIEs) 13,446 13,618 Nuclear decommissioning trust funds 10,944 10,143 Operating lease right-of-use assets, net 1,108 1,092 Investments in equity method unconsolidated affiliates 483 492 Assets held for sale 78 197 Other 3,556 3,964 Total other noncurrent assets 48,918 48,809 Total Assets $ 181,575 $ 176,893 LIABILITIES AND EQUITY Current Liabilities Accounts payable (includes $ 224 at 2024 and $ 188 at 2023 related to VIEs) $ 3,777 $ 4,228 Notes payable and commercial paper 3,670 4,288 Taxes accrued 748 816 Interest accrued 790 745 Current maturities of long-term debt (includes $ 1,008 at 2024 and $ 428 at 2023 related to VIEs) 2,340 2,800 Asset retirement obligations 636 596 Regulatory liabilities 1,228 1,369 Liabilities associated with assets held for sale 81 122 Other 2,212 2,319 Total current liabilities 15,482 17,283 Long-Term Debt (includes $ 1,897 at 2024 and

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS DUKE ENERGY CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, (in millions) 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 2,072 $ 557 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and accretion (including amortization of nuclear fuel) 3,100 2,916 Equity component of AFUDC ( 116 ) ( 97 ) Losses on sales of Commercial Renewables Disposal Groups 5 1,434 Gains on sales of other assets ( 18 ) ( 38 ) Impairment of assets and other charges 44 8 Deferred income taxes 264 ( 52 ) Equity in earnings of unconsolidated affiliates ( 38 ) ( 29 ) Payments for asset retirement obligations ( 262 ) ( 261 ) Provision for rate refunds ( 7 ) ( 57 ) (Increase) decrease in Net realized and unrealized mark-to-market and hedging transactions ( 37 ) 93 Receivables ( 19 ) 586 Inventory ( 86 ) ( 517 ) Other current assets 502 ( 41 ) Increase (decrease) in Accounts payable ( 215 ) ( 1,245 ) Taxes accrued ( 68 ) ( 8 ) Other current liabilities ( 252 ) ( 154 ) Other assets 331 608 Other liabilities 227 82 Net cash provided by operating ac

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