Press release·02/27/2025 21:21:50

Financial Overview

Duke Energy’s 2024 Net Income Available to Duke Energy Corporation (GAAP Reported Earnings) increased primarily due to higher impairments on the sale of the Commercial Renewables business in the prior year. Additional drivers include growth from rate increases and riders, improved weather and higher sales volumes, partially offset by higher interest expense, depreciation on a growing asset base and storm costs, along with a higher effective tax rate.

Duke Energy’s adjusted earnings per share (EPS) was $5.90 for 2024, compared to $5.56 for 2023. The increase was primarily due to:

• Growth from rate increases and riders
• Improved weather and higher sales volumes
• Partially offset by higher interest expense, depreciation, storm costs, and a higher effective tax rate

Operational Highlights

• Responded effectively to three major hurricanes in 2024 that caused unprecedented damage and over 5.5 million customer outages across Duke Energy’s service territories. Leveraged grid hardening investments and automation to reduce outage frequency and duration.
• Maintained strong safety performance, ranking first among North American combined gas and electric companies for the 10th consecutive year.
• Achieved constructive regulatory outcomes, including new multi-year rate plans in North Carolina, Florida, and the Midwest, and secured approval for storm cost recovery mechanisms.
• Continued progress on the energy transition, targeting a 50% reduction in carbon emissions by 2030 and net-zero by 2050. Filed integrated resource plans to enable coal plant retirements, renewables and energy storage investments.
• Experienced strong economic development, winning 78 projects representing $26 billion in new capital investment and over 16,000 new jobs in the service territories.
• Maintained high customer satisfaction scores, with Piedmont ranked #1 in residential natural gas customer satisfaction for the third year.

Regulatory and Legislative Outcomes

Duke Energy had a very active year on the regulatory front, achieving several constructive outcomes:

• In North Carolina and South Carolina, Duke Energy Carolinas and Duke Energy Progress reached settlements on rate cases, enabling recovery of environmental compliance costs and new generation investments.
• Duke Energy Florida, Duke Energy Indiana, and Piedmont filed and received approval for new multi-year rate plans, providing more stability and timely cost recovery.
• Duke Energy Progress issued $177 million in storm recovery bonds in South Carolina, and Duke Energy is pursuing securitization in other jurisdictions to lower customer bill impacts from storm restoration.
• Duke Energy began selling nuclear production tax credits under the Inflation Reduction Act, which will provide benefits to customers through lower rates.

Energy Transition

Duke Energy is investing $190-$200 billion over the next decade to maintain reliability, affordability, and enable the energy transition, including:

• Retiring coal plants and adding renewables, energy storage, and highly efficient natural gas generation
• Modernizing the electric grid with smart meters, storm hardening, and self-healing technologies
• Upgrading natural gas infrastructure to enhance safety and reduce methane emissions

The company’s Carolinas Integrated Resource Plan was approved, outlining a path to 50% carbon reduction by 2030 and net-zero by 2050, while meeting growing energy demand. Duke Energy is also advocating for research and development of longer-duration storage, advanced nuclear, carbon capture, and zero-carbon fuels to continue progress beyond 2030.

Financial Position and Liquidity

Duke Energy maintains a balanced capital structure of approximately 38% equity and 62% debt. The company has ample liquidity, with $314 million in cash on hand and $5.8 billion available under its $9 billion credit facility as of year-end 2024.

Duke Energy projects capital and investment expenditures of $14.8 billion in 2025, $15.2 billion in 2026, and $16.6 billion in 2027, primarily for electric generation, transmission, and distribution infrastructure. The company plans to issue $12.2 billion in additional securities in 2025, including $1 billion in common stock, to fund these investments and debt maturities.

Risks and Challenges

Key risks and challenges facing Duke Energy include:

• Regulatory uncertainty around new EPA regulations on greenhouse gas emissions from power plants
• Ongoing costs and recovery of coal ash basin closures
• Financing needs and recovery of storm restoration costs from the 2024 hurricanes
• Supply chain constraints and inflationary pressures impacting capital project execution
• Potential goodwill impairment at the Gas Utilities and Infrastructure reporting unit

Duke Energy is actively engaged in legal challenges to new EPA regulations, working with regulators to recover storm costs, and monitoring macroeconomic conditions to mitigate these risks.

Outlook

Duke Energy remains focused on safely transforming its business to meet growing energy needs, deliver reliable and affordable clean energy, and create sustainable value for customers and shareholders. Key priorities include:

• Continuing the energy transition through generation modernization and grid investments
• Maintaining constructive regulatory relationships and outcomes to support timely cost recovery
• Enhancing the customer experience through data-driven investments and new product offerings
• Driving productivity, flexibility, and cost management to maintain affordability

With its strategic plan, strong financial position, and commitment to operational excellence, Duke Energy is well-positioned to navigate the evolving energy landscape and deliver long-term value.