Duke Energy CORP Q3 FY2024 earnings call

• Recognized extraordinary hurricane season response, commended employees and partners for restoring outages. - Harry Sideris detailed restoration efforts for Hurricanes Debby, Helene, and Milton, highlighting grid-hardening investments that avoided ~550,000 outages. - Brian Savoy discussed third quarter earnings per share, storm cost estimates, and growth drivers like residential customer additions and economic development agreements. - Mentioned constructive regulatory outcomes in Carolinas, Indiana, and Florida, including rate plan approvals.

Electric Utilities and Infrastructure was down $0.09, Gas Utilities and Infrastructure was down $0.04, and the other segment was down $0.19. Third quarter weather normal volumes increased 1.1% versus last year, driven by strong commercial volumes and residential customer growth. Carolinas added ~75,000 residential customers YTD, Florida added nearly 30,000 residential customers YTD.

• Reaffirmed 2024 guidance range of $585 million to $610 million, trending to lower half due to storm impacts. - Reaffirmed 5% to 7% EPS growth rate through 2028, up the midpoint of 2024 range. - Expect fourth-quarter adjusted EPS to be higher than last year due to rate increases and higher sales volumes. - Targeting rider recovery in Florida beginning early 2025 and securitization proceeds in Carolinas by end of 2025.

• Storm impacts including restoration costs and lost revenues; potential temporary credit impact in 2024. - Risks associated with new nuclear technology, including first-of-a-kind risk, cost overrun protection, and balance sheet protection.

Q: On overall credit, post storms, where are they and FFO impact from storms, and tax credit monetization?

A: Brian Savoy said storm costs will temporarily impact credit in 2024, tracking high 13s FFO to debt; tax credit monetization trending to upper part of $300M to $500M range.

Q: On load environment, how does Duke's load growth compare and expectations?

A: Brian Savoy said load growth is trending to top end of 1.5% to 2% CAGR, with acceleration in 2027-2028 from economic development projects.

Q: On tax credit monetizations, size, discount, and impact to FFO to debt?

A: Brian Savoy said tax credit market is deepening, discounts are attractive, trending to upper part of range, equating to 40-60 basis points in FFO to debt.

Q: On near-term capital, pull forward of equity?

A: Brian Savoy said no additional equity signaled, will finance capital in balanced way.

Q: On new nuclear participation, key items to evaluate?

A: Harry Sideris said key items are first-of-a-kind risk, cost overrun protection, and balance sheet protection.

Q: On earnings impact from restoration costs and lost revenues from hurricanes?

A: Brian Savoy said a few cents impact from O&M storm costs and lost revenues.

Q: On load growth, credit cushion, and mitigation measures?

A: Lynn Good said working on widening credit cushion and mitigation measures, but no specific quantification yet.

Q: On 2 gigawatts of incremental data center growth, details?

A: Brian Savoy said confidential customer info, but 2 gigawatts from letter agreements, data centers attracted by carbon-free nuclear in Carolinas.

Q: On Indiana IRP updated filing and Carolinas IRP resource plan?

A: Harry Sideris said Indiana IRP filing broad, transitioning Cayuga plant to gas; Carolinas IRP updates expected next year with constructive orders.