Duke Energy reports second quarter 2016 financial results

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CHARLOTTE, N.C., Aug. 4, 2016 /PRNewswire/ --

  • Second quarter 2016 GAAP reported diluted EPS was $0.74 compared to $0.78 for the second quarter of 2015

  • Adjusted diluted EPS of $1.07 for second quarter 2016, compared to $0.95 for the second quarter of 2015

  • Company remains on track to achieve its 2016 adjusted diluted earnings guidance range of $4.50 to $4.70 per share

Duke Energy today announced second quarter 2016 reported diluted earnings per share (EPS), prepared in accordance with Generally Accepted Accounting Principles (GAAP) of $0.74, compared to $0.78 for second quarter 2015. Second quarter 2016 adjusted diluted EPS was $1.07, compared to $0.95 for second quarter 2015.

GAAP reported diluted EPS includes the impact of special items, which are excluded from adjusted diluted EPS. Special items during the second quarter of 2016 include charges related to an impairment in Central America, costs to achieve mergers and cost savings initiatives.

Second quarter adjusted diluted EPS was higher than the prior year due to higher retail revenues from pricing and rider recoveries, lower O&M expense, and additional earnings from the North Carolina Eastern Municipal Power Agency (NCEMPA) acquisition.

Based upon results through the second quarter, the company remains on track to achieve its 2016 adjusted diluted earnings guidance range of $4.50 to $4.70 per share.

"Our solid second quarter performance reflects the strength of our regulated utilities driven by strategic investments, dedicated cost management and a relentless focus on operational excellence," said Lynn Good, Duke Energy chairman, president and CEO. "The execution of our long-term strategy to modernize the energy grid and generate cleaner energy creates value for customers, delivers growth for shareholders and enhances our position as a leader in the industry.

"Looking ahead, we are on track with our proposed acquisition of Piedmont Natural Gas and the marketing of our Latin American assets," Good added. "The successful completion of both transactions will align our portfolio to focus on domestic infrastructure businesses that drive more stable earnings and cash flow growth."

Business unit results

In addition to the summary business unit discussion below, a comprehensive table of quarterly earnings per share drivers compared to the prior year is provided on pages 15 and 16.

The discussion below of the second-quarter results includes adjusted segment income, which is a non-GAAP financial measure. In addition to the drivers that follow, the variances in GAAP reported earnings were impacted by special items. The tables on pages 25 through 28 present a detail of special items and a reconciliation of GAAP reported results to adjusted results.

During the first quarter of 2016, Duke Energy began to evaluate interim period segment performance based on financial information that includes the impact of income tax levelization within segment income. This represents a change from the previous measure, where the interim period impacts of income tax levelization were included within Other, and therefore excluded from segment income. As a result, prior period segment results presented in this release have been recast to conform to this change.

Regulated Utilities

Regulated Utilities recognized second quarter 2016 adjusted segment income of $718 million, compared to $632 million in the second quarter 2015, an increase of $0.13 per share.

Higher quarterly results at Regulated Utilities were primarily driven by:

  • Higher pricing and riders (+$0.08 per share)
  • Lower O&M expenses (+$0.05 per share), primarily as a result of favorable outage costs and cost savings initiatives
  • Increased wholesale net margins (+$0.03 per share), primarily due to the long-term wholesale contract associated with the NCEMPA purchase in the prior year

These favorable drivers were partially offset by:

  • Less favorable weather (-$0.04 per share)

On a year-to-date basis, Regulated Utilities recognized adjusted segment income of $1,413 million, compared to $1,406 million in the comparable year-to-date period of 2015, an increase of $0.01 per share.

Increased year-to-date results at Regulated Utilities were primarily driven by:

  • Higher pricing and riders (+$0.15 per share)
  • Increased wholesale net margins (+$0.05 per share) primarily due to the long-term wholesale contract associated with the NCEMPA acquisition in the prior year
  • Lower O&M expense (+$0.03 per share) as a result of favorable outage costs and cost savings initiatives, despite higher storm costs (-$0.06 per share)
  • Lower effective tax rate (+$0.03 per share)

These favorable drivers were partially offset by:

  • Less favorable weather (-$0.14 per share)
  • Higher depreciation and amortization expense (-$0.06 per share) primarily resulting from additional plant in-service
  • Higher non-income taxes (-$0.04 per share) primarily due to increased property taxes

Commercial Portfolio

Commercial Portfolio recognized second quarter 2016 adjusted segment income of $14 million, compared to $11 million in the second quarter 2015, an increase of $0.01 per share.

Higher quarterly results at Commercial Portfolio were primarily driven by increased investments in the Atlantic Coast and Sabal Trail pipelines.

On a year-to-date basis, Commercial Portfolio recognized adjusted segment income of $41 million, compared to $112 million in the comparable year-to-date period of 2015, a decrease of $0.10 per share.

Commercial Portfolio's lower year-to-date earnings were driven by the absence of earnings from the Midwest Generation business (-$0.12 per share), which was sold in April 2015, partially offset by higher earnings from the renewables portfolio (+$0.01 per share) and increased investments in the Atlantic Coast and Sabal Trail pipelines (+$0.01 per share).

International Energy

International Energy recognized second quarter 2016 adjusted segment income of $43 million, compared to $52 million in the second quarter 2015, a decrease of $0.02 per share.

International Energy's decreased quarterly earnings were driven by lower earnings at National Methanol Company (NMC) (-$0.02 per share) and a higher effective tax rate (-$0.02 per share), partially offset by stronger results in Latin America (+$0.03 per share) primarily due to improved hydrology in Brazil despite weaker foreign currency exchange rates.

On a year-to-date basis, International Energy recognized adjusted segment income of $166 million, compared to $88 million in the comparable year-to-date period of 2015, an increase of $0.11 per share.

Higher year-to-date earnings at International Energy were driven by a lower effective tax rate (+$0.08 per share), stronger results in Latin America (+$0.06 per share) primarily due to improved hydrology in Brazil, partially offset by weaker foreign currency exchange rates, and lower earnings from NMC (-$0.03 per share).

Other

On an adjusted basis, Other primarily includes corporate interest expense not allocated to the business units, results from Duke Energy's captive insurance company, and other investments.

Other recognized second quarter 2016 adjusted net expense of $36 million, compared to net expense of $37 million in the second quarter 2015, which was flat on a per share basis. The decreased net expense was primarily driven by a change in effective tax rate (+$0.02 per share) and higher interest expense (-$0.01 per share).

On a year-to-date basis, Other recognized adjusted net expense of $104 million, compared to $67 million in the comparable period of 2015, a decrease of $0.05 per share. Other's year-to-date results were primarily driven by higher interest expense (-$0.02 per share) and a change in effective tax rate (-$0.01 per share).

The consolidated adjusted effective tax rate for second quarter 2016 was 31.4 percent, compared to 31.3 percent in the second quarter of 2015. Adjusted effective tax rate is a non-GAAP financial measure. The tables on pages 29 and 30 present a reconciliation of GAAP reported effective tax rate to adjusted effective tax rate.

Accelerated stock repurchase program

In connection with the transaction to sell the Midwest Generation Business to Dynegy for $2.8 billion, which closed on April 2, 2015, Duke Energy completed a $1.5 billion accelerated stock repurchase program (ASR).  The program resulted in share retirements of approximately 19.8 million, providing a benefit to the year-to-date 2016 results of $0.03 per share.

Earnings conference call for analysts

An earnings conference call for analysts is scheduled for 10 a.m. ET today to discuss Duke Energy's financial performance for the quarter and other business and financial updates.

The conference call will be hosted by Lynn Good, chairman, president and chief executive officer, and Steve Young, executive vice president and chief financial officer.

The call can be accessed via the investors' section (http://www.duke-energy.com/investors/) of Duke Energy's website or by dialing 877-723-9502 in the United States or 719-325-4795 outside the United States. The confirmation code is 4669837. Please call in 10 to 15 minutes prior to the scheduled start time.

A replay of the conference call will be available until 1 p.m. ET, August 14, 2016, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 4669837. A replay and transcript also will be available by accessing the investors' section of the company's website.

Special Items and Non-GAAP Reconciliation

The following table presents a reconciliation of GAAP reported to adjusted diluted EPS for quarterly results in 2016 and 2015:

(In millions, except per-share amounts)

After-Tax
Amount

2Q 2016
EPS

2Q 2015
EPS

Diluted EPS, as reported

 

$

0.74

 

$

0.78

 

Adjustments to reported EPS:

     

Second Quarter 2016

     

Costs to achieve, mergers

$

69

 

0.10

   

International impairment

145

 

0.21

   

Cost savings initiatives

15

 

0.02

   

Discontinued operations

1

 

   

Second Quarter 2015

     

Costs to achieve, Progress merger

14

   

0.02

 

Discontinued operations (1)

101

   

0.15

 

Total adjustments

 

$

0.33

 

$

0.17

 

Diluted EPS, as adjusted

 

$

1.07

 

$

0.95

 

(1) Adjusted earnings for the second quarter of 2015 excludes GAAP reported loss from discontinued operations of $0.09 per diluted share, which was driven by the impact of a litigation reserve related to the nonregulated Midwest generation business, as well as a tax charge recorded within continuing operations of $0.06 resulting from changes in state tax apportionment factors related to the sale of the Midwest generation business.

Non-GAAP financial measures

Management evaluates financial performance in part based on non-GAAP financial measures, adjusted earnings and adjusted diluted EPS. These items represent income from continuing operations net of income (loss) attributable to noncontrolling interests, adjusted for the dollar and per-share impact of special items. Special items represent certain charges and credits, which management believes are not indicative of our ongoing performance, and are discussed below. Management believes the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them an additional relevant comparison of Duke Energy's performance across periods. Management uses these non-GAAP financial measures for planning and forecasting and for reporting results to the Board of Directors, employees, stockholders, analysts and investors concerning Duke Energy's financial performance. Adjusted diluted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measures for adjusted earnings and adjusted diluted EPS are Net Income Attributable to Duke Energy Corporation and Diluted EPS Attributable to Duke Energy Corporation common stockholders.

Special items included in the periods presented include the following:

  • Costs to achieve mergers and International impairment represent charges that result from potential or completed strategic acquisitions and divestitures that do not reflect ongoing costs of the business.
  • Costs savings initiatives represent restructuring charges incurred to reduce future expenses and do not represent ongoing costs.
  • Midwest generation operations represents the operating results of the nonregulated Midwest generation business and Duke Energy Retail Sales (collectively, the Disposal Group), which have been classified as discontinued operations. Management believes inclusion of the Disposal Group's operating results within adjusted earnings and adjusted diluted EPS results in a better reflection of Duke Energy's financial performance during the period.

Due to the forward-looking nature of any forecasted adjusted earnings guidance, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items for future periods (such as legal settlements, the impact of regulatory orders, or asset impairments).

Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests. Segment income includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements. Management also uses adjusted segment income as a measure of historical and anticipated future segment performance. Adjusted segment income is a non-GAAP financial measure, as it is based upon segment income adjusted for special items, which are discussed above. Management believes the presentation of adjusted segment income as presented provides useful information to investors, as it provides them with an additional relevant comparison of a segment's performance across periods. The most directly comparable GAAP measure for adjusted segment income is segment income.

Due to the forward-looking nature of any forecasted adjusted segment income or adjusted Other net expenses and any related growth rates for future periods, information to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures is not available at this time, as the company is unable to forecast all special items or any amounts that may be reported as discontinued operations or extraordinary items for future periods, as discussed above.

Duke Energy's adjusted earnings, adjusted diluted EPS, and adjusted segment income may not be comparable to similarly titled measures of another company because other entities may not calculate the measures in the same manner.

Duke Energy is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 7.4 million electric customers located in six states in the Southeast and Midwest, representing a population of approximately 24 million people. Its Commercial Portfolio and International business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

Headquartered in Charlotte, N.C., Duke Energy is an S&P 100 Stock Index company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com.

The Duke Energy News Center serves as a multimedia resource for journalists and features news releases, helpful links, photos and videos. Hosted by Duke Energy, illumination is an online destination for stories about remarkable people, innovations, and community and environmental topics. It also offers glimpses into the past and insights into the future of energy.

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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: state, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements or climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices; the extent and timing of costs and liabilities to comply with federal and state regulations related to coal ash, including amounts for the required closure of certain ash basins, are uncertain and difficult to estimate; the ability to recover eligible costs, including amounts associated with coal ash basin asset retirement obligations and future significant weather events, and earn an adequate return on investment through the regulatory process; the costs of decommissioning Crystal River Unit 3 and other nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process; credit ratings of the company or its subsidiaries may be different from what is expected; costs and effects of legal and administrative proceedings, settlements, investigations and claims; industrial, commercial and residential growth or decline in service territories or customer bases resulting from variations in customer usage patterns, including energy efficiency efforts and use of alternative energy sources, including self-generation and distributed generation technologies; advancements in technology; additional competition in electric markets and continued industry consolidation; political, economic and regulatory uncertainty in Brazil and other countries in which Duke Energy conducts business; the influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes; the ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources; the impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, and other catastrophic events such as fires, explosions, pandemic health events or other similar occurrences; the inherent risks associated with the operation and potential construction of nuclear facilities, including environmental, health, safety, regulatory and financial risks; the timing and extent of changes in commodity prices, interest rates and foreign currency exchange rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets; the results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations and general economic conditions; declines in the market prices of equity and fixed income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans, and nuclear decommissioning trust funds; construction and development risks associated with the completion of Duke Energy and its subsidiaries' capital investment projects, including risks related to financing, 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; 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 nonregulated businesses and the success of efforts to invest in and develop new opportunities; the effect of accounting pronouncements issued periodically by accounting standard-setting bodies; the impact of potential goodwill impairments; the ability to successfully complete future merger, acquisition or divestiture plans; the expected timing and likelihood of completion of the proposed acquisition of Piedmont Natural Gas Company, Inc. (Piedmont), including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed acquisition that could reduce anticipated benefits or cause the parties to abandon the acquisition, and under certain specified circumstance pay a termination fee of $250 million, as well as the ability to successfully integrate the businesses and realize anticipated benefits and the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect;  and the likelihood, terms and timing of the potential sale of International Energy, excluding the equity investment in National Methanol Company, could change the presentation of certain assets, liabilities and results of operations as assets held for sale, liabilities associated with assets held for sale, and discontinued operations, respectively.

Additional risks and uncertainties are identified and discussed in Duke Energy's and its subsidiaries' reports filed with the SEC and available at the SEC's website at www.sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made; Duke Energy expressly disclaims an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Contact: Catherine Butler
24-Hour: 800.559.3853

Analysts: Mike Callahan
Office: 704.382.0459        

 

 

 June 2016

QUARTERLY HIGHLIGHTS

(Unaudited)

               
 

Three Months Ended June 30,

 

Six Months Ended June 30,

(In millions, except per-share amounts and where noted)

2016

 

2015

 

2016

 

2015

Earnings Per Share - Basic and Diluted

             

Income from continuing operations attributable to Duke Energy Corporation common stockholders

             

Basic

$

0.74

   

$

0.87

   

$

1.74

   

$

1.96

 

Diluted

$

0.74

   

$

0.87

   

$

1.74

   

$

1.96

 
               

(Loss) Income from discontinued operations attributable to Duke Energy Corporation common stockholders

             

Basic

$

   

$

(0.09)

   

$

   

$

0.05

 

Diluted

$

   

$

(0.09)

   

$

   

$

0.05

 
               

Net income attributable to Duke Energy Corporation common stockholders

             

Basic

$

0.74

   

$

0.78

   

$

1.74

   

$

2.01

 

Diluted

$

0.74

   

$

0.78

   

$

1.74

   

$

2.01

 
               

Weighted average shares outstanding

             

Basic

689

   

692

   

689

   

700

 

Diluted

690

   

692

   

689

   

700

 
               

SEGMENT INCOME (LOSS) BY BUSINESS SEGMENT

             

Regulated Utilities

$

718

   

$

632

   

$

1,413

   

$

1,406

 

International Energy(a)(b)

(102)

   

52

   

21

   

88

 

Commercial Portfolio(c)

14

   

(30)

   

41

   

(23)

 

Total Reportable Segment Income

630

   

654

   

1,475

   

1,471

 

Other Net Expense(d)(e)(f)

(120)

   

(51)

   

(274)

   

(94)

 

Intercompany Eliminations

   

(3)

   

   

(4)

 

(Loss) Income from Discontinued Operations, net of tax(g)

(1)

   

(57)

   

2

   

34

 

Net Income Attributable to Duke Energy Corporation

$

509

   

$

543

   

$

1,203

   

$

1,407

 
               

CAPITALIZATION

             

Total Common Equity

       

47%

   

49%

 

Total Debt

       

53%

   

51%

 
               

Total Debt

       

$

44,585

   

$

41,173

 

Book Value Per Share

       

$

57.98

   

$

57.56

 

Actual Shares Outstanding

       

689

   

688

 
               

CAPITAL AND INVESTMENT EXPENDITURES

             

Regulated Utilities

$

1,565

   

$

1,411

   

$

3,013

   

$

2,673

 

International Energy

10

   

7

   

15

   

19

 

Commercial Portfolio

208

   

261

   

422

   

383

 

Other

42

   

56

   

79

   

114

 

Total Capital and Investment Expenditures

$

1,825

   

$

1,735

   

$

3,529

   

$

3,189

 
               
               

Note: Certain prior period amounts have been reclassified to conform to the current year presentation, including changes related to the new segment income measure.

               

(a) Includes an impairment charge of $145 million (net of tax of $49 million) for the three and six months ended June 30, 2016, related to certain assets in Central America.

(b) Includes a tax benefit of $79 million for the six months ended June 30, 2016, resulting from the ability to more efficiently utilize foreign tax credits, net of higher taxes due to no longer asserting indefinite reinvestment of foreign earnings.

(c) Includes a tax charge of $41 million for the three and six months ended June 30, 2015, resulting from the completion of the sale of the nonregulated Midwest generation business.

(d) Includes costs to achieve mergers of $69 million for the three months ended June 30, 2016 (net of tax of $42 million), and $143 million for the six months ended June 30, 2016 (net of tax of $88 million). These costs primarily consist of mark-to-market losses related to forward-starting interest rate swaps utilized to manage interest rate exposure for the expected financing of the Piedmont acquisition.

(e) Includes costs to achieve Progress merger of $14 million for the three months ended June 30, 2015 (net of tax of $8 million), and $27 million for the six months ended June 30, 2015 (net of tax of $16 million).

(f) Includes a charge of $15 million for the three months ended June 30, 2016 (net of tax of $9 million) and $27 million for the six months ended June 30, 2016 (net of tax of $17 million), primarily consisting of severance expense related to cost savings initiatives.

(g) Includes the impact of a litigation reserve related to the nonregulated Midwest generation business of $46 million for the three months ended June 30, 2015 (net of tax of $25 million), and $53 million for the six months ended June 30, 2015 (net of tax of $28 million).

 

 

 

 June 2016

QUARTERLY HIGHLIGHTS

(Unaudited)

               
 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(In millions, except for GWh and MW amounts)

2016

 

2015

 

2016

 

2015

REGULATED UTILITIES

             

  Operating Revenues

$

5,099

   

$

5,220

   

$

10,358

   

$

10,943

 

  Operating Expenses

3,772

   

4,003

   

7,739

   

8,308

 

  Gains on Sales of Other Assets, net

1

   

2

   

2

   

9

 

  Operating Income

1,328

   

1,219

   

2,621

   

2,644

 

  Other Income and Expenses

74

   

59

   

138

   

131

 

  Interest Expense

278

   

274

   

555

   

549

 

  Income Before Income Taxes

1,124

   

1,004

   

2,204

   

2,226

 

  Income Tax Expense

406

   

372

   

791

   

820

 

  Segment Income

$

718

   

$

632

   

$

1,413

   

$

1,406

 
               

  Depreciation and Amortization

$

721

   

$

707

   

$

1,449

   

$

1,405

 

INTERNATIONAL ENERGY

             

  Operating Revenues

$

270

   

$

287

   

$

516

   

$

560

 

  Operating Expenses(a)

382

   

232

   

536

   

439

 

  Loss on Sales of Other Assets, net

(1)

   

(1)

   

(1)

   

(1)

 

  Operating (Loss) Income

(113)

   

54

   

(21)

   

120

 

  Other Income and Expenses

23

   

31

   

39

   

45

 

  Interest Expense

22

   

22

   

44

   

45

 

  (Loss) Income Before Income Taxes

(112)

   

63

   

(26)

   

120

 

  Income Tax (Benefit) Expense(b)(c)

(13)

   

10

   

(52)

   

30

 

  Less: Income Attributable to Noncontrolling Interests

3

   

1

   

5

   

2

 

  Segment (Loss) Income

$

(102)

   

$

52

   

$

21

   

$

88

 
               

  Depreciation and Amortization

$

22

   

$

23

   

$

44

   

$

46

 
               

  Sales, GWh

5,625

   

4,520

   

11,505

   

8,990

 

  Proportional MW Capacity in Operation

       

4,315

   

4,333

 

COMMERCIAL PORTFOLIO

             

  Operating Revenues

$

112

   

$

75

   

$

226

   

$

148

 

  Operating Expenses

121

   

84

   

232

   

173

 

  Gains on Sales of Other Assets, net

1

   

6

   

2

   

6

 

  Operating Loss

(8)

   

(3)

   

(4)

   

(19)

 

  Other Income and Expenses

4

   

(2)

   

6

   

 

  Interest Expense

11

   

10

   

23

   

22

 

  Loss Before Income Taxes

(15)

   

(15)

   

(21)

   

(41)

 

  Income Tax (Benefit) Expense(d)

(28)

   

15

   

(61)

   

(18)

 

  Less: Loss Attributable to Noncontrolling Interests

(1)

   

   

(1)

   

 

  Segment Income (Loss)

$

14

   

$

(30)

   

$

41

   

$

(23)

 
               

  Depreciation and Amortization

$

33

   

$

26

   

$

63

   

$

50

 
               

  Actual Renewable Plant Production, GWh

1,758

   

1,373

   

3,818

   

2,683

 

  Net Proportional MW Capacity in Operation

       

1,978

   

1,634

 

OTHER

             

  Operating Revenues

$

30

   

$

34

   

$

59

   

$

61

 

  Operating Expenses(e)(f)(g)

96

   

63

   

188

   

113

 

  Gains on Sales of Other Assets, net

4

   

6

   

11

   

13

 

  Operating Loss

(62)

   

(23)

   

(118)

   

(39)

 

  Other Income and Expenses

8

   

9

   

18

   

10

 

  Interest Expense(h)

191

   

97

   

396

   

194

 

  Loss Before Income Taxes

(245)

   

(111)

   

(496)

   

(223)

 

  Income Tax Benefit(i)(j)(k)

(126)

   

(63)

   

(226)

   

(134)

 

  Less: Income Attributable to Noncontrolling Interests

1

   

3

   

4

   

5

 

  Segment Net Expense

$

(120)

   

$

(51)

   

$

(274)

   

$

(94)

 
               

  Depreciation and Amortization

$

37

   

$

34

   

$

71

   

$

66

 
               

Note: Certain prior period amounts have been reclassified to conform to the current year presentation, including changes related to the new segment income measure.

 

(a) Includes a pretax impairment charge of $194 million for the three and six months ended June 30, 2016, related to certain assets in Central America.

(b) Includes a tax benefit of $49 million for the three and six months ended June 30, 2016 related to the asset impairment.

(c) Includes a tax benefit of $79 million for the six months ended June 30, 2016, resulting from the ability to more efficiently utilize foreign tax credits, net of higher taxes due to no longer asserting indefinite reinvestment of foreign earnings.

(d) Includes a tax charge of $41 million for the three and six months ended June 30, 2015, resulting from the completion of the sale of the nonregulated Midwest generation business.

(e) Includes costs to achieve mergers of $28 million for the three months ended June 30, 2016, and $47 million for the six months ended June 30, 2016.

(f) Includes charges of $24 million for the three months ended June 30, 2016, and $44 million for the six months ended June 30, 2016, related to cost savings initiatives.

(g) Includes costs to achieve Progress merger of $22 million for the three months ended June 30, 2015 and $43 million for the six months ended June 30, 2015.

(h) Includes costs to achieve mergers of $83 million for the three months ended June 30, 2016 and $183 million for the six months ended June 30, 2016. These costs primarily consist of mark-to-market losses related to forward-starting interest rate swaps utilized to manage interest rate exposure for the expected financing of the Piedmont acquisition.

(i) Includes a tax benefit related to costs to achieve mergers of $42 million for the three months ended June 30, 2016 and $88 million for the six months ended June 30, 2016.

(j) Includes a tax benefit related to cost savings initiatives of $9 million for the three months ended June 30, 2016 and $17 million for the six months ended June 30, 2016.

(k) Includes a tax benefit related to costs to achieve Progress merger of $8 million for the three months ended June 30, 2015 and $16 million for the six months ended June 30, 2015.

 

 

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In millions, except per-share amounts)

               
 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2016

 

2015

 

2016

 

2015

Operating Revenues

             

Regulated electric

$

4,965

   

$

5,090

   

$

10,018

   

$

10,547

 

Nonregulated electric and other

422

   

403

   

822

   

780

 

Regulated natural gas

97

   

96

   

266

   

327

 

Total operating revenues

5,484

   

5,589

   

11,106

   

11,654

 

Operating Expenses

             

Fuel used in electric generation and purchased power - regulated

1,509

   

1,721

   

3,086

   

3,662

 

Fuel used in electric generation and purchased power - nonregulated

82

   

118

   

140

   

222

 

Cost of natural gas

21

   

26

   

81

   

137

 

Operation, maintenance and other

1,431

   

1,422

   

2,920

   

2,848

 

Depreciation and amortization

813

   

790

   

1,627

   

1,567

 

Property and other taxes

293

   

279

   

590

   

543

 

Impairment charges

195

   

   

198

   

 

Total operating expenses

4,344

   

4,356

   

8,642

   

8,979

 

Gains on Sales of Other Assets and Other, net

5

   

13

   

14

   

27

 

Operating Income

1,145

   

1,246

   

2,478

   

2,702

 

Other Income and Expenses

             

Equity in earnings of unconsolidated affiliates

15

   

23

   

23

   

36

 

Other income and expenses, net

92

   

72

   

171

   

146

 

Total other income and expenses

107

   

95

   

194

   

182

 

Interest Expense

500

   

403

   

1,011

   

806

 

Income from Continuing Operations before Income Taxes

752

   

938

   

1,661

   

2,078

 

Income Tax Expense from Continuing Operations

239

   

334

   

452

   

698

 

Income from Continuing Operations

513

   

604

   

1,209

   

1,380

 

(Loss) Income from Discontinued Operations, net of tax

(1)

   

(57)

   

2

   

34

 

Net Income

512

   

547

   

1,211

   

1,414

 

Less: Net Income Attributable to Noncontrolling Interests

3

   

4

   

8

   

7

 

Net Income Attributable to Duke Energy Corporation

$

509

   

$

543

   

$

1,203

   

$

1,407

 
               

Earnings Per Share - Basic and Diluted

             

Income from continuing operations attributable to Duke Energy Corporation
common stockholders

             

Basic

$

0.74

   

$

0.87

   

$

1.74

   

$

1.96

 

Diluted

$

0.74

   

$

0.87

   

$

1.74

   

$

1.96

 

(Loss) Income from discontinued operations attributable to Duke Energy
Corporation common stockholders

             

Basic

$

   

$

(0.09)

   

$

   

$

0.05

 

Diluted

$

   

$

(0.09)

   

$

   

$

0.05

 

Net income attributable to Duke Energy Corporation common stockholders

             

Basic

$

0.74

   

$

0.78

   

$

1.74

   

$

2.01

 

Diluted

$

0.74

   

$

0.78

   

$

1.74

   

$

2.01

 

Weighted average shares outstanding

             

Basic

689

   

692

   

689

   

700

 

Diluted

690

   

692

   

689

   

700

 

 

 

 

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 
         

(in millions)

 

June 30, 2016

 

December 31, 2015

ASSETS

       

Current Assets

       

Cash and cash equivalents

 

$

676

   

$

857

 

Receivables (net of allowance for doubtful accounts of $23 at 2016 and $18 at 2015)

 

575

   

703

 

Receivables of VIEs (net of allowance for doubtful accounts of $56 at 2016 and $53 at 2015)

 

1,943

   

1,748

 

Inventory

 

3,627

   

3,810

 

Regulatory assets (Includes $34 related to VIEs at 2016)

 

825

   

877

 

Other

 

451

   

327

 

Total current assets

 

8,097

   

8,322

 

Investments and Other Assets

       

Investments in equity method unconsolidated affiliates

 

613

   

499

 

Nuclear decommissioning trust funds

 

5,966

   

5,825

 

Goodwill

 

16,357

   

16,343

 

Other

 

2,972

   

3,042

 

Total investments and other assets

 

25,908

   

25,709

 

Property, Plant and Equipment

       

Cost

 

115,143

   

112,826

 

Accumulated depreciation and amortization

 

(38,412)

   

(37,665)

 

Generation facilities to be retired, net

 

598

   

548

 

Net property, plant and equipment

 

77,329

   

75,709

 

Regulatory Assets and Deferred Debits

       

Regulatory assets (includes $1,194 related to VIEs at 2016)

 

11,290

   

11,373

 

Other

 

30

   

43

 

Total regulatory assets and deferred debits

 

11,320

   

11,416

 

Total Assets

 

$

122,654

   

$

121,156

 

LIABILITIES AND EQUITY

       

Current Liabilities

       

Accounts payable

 

$

2,221

   

$

2,400

 

Notes payable and commercial paper

 

2,312

   

3,633

 

Taxes accrued

 

467

   

348

 

Interest accrued

 

448

   

430

 

Current maturities of long-term debt (includes $197 at 2016 and $125 at 2015 related to VIEs)

 

2,342

   

2,074

 

Regulatory liabilities

 

332

   

400

 

Other

 

1,784

   

2,115

 

Total current liabilities

 

9,906

   

11,400

 

Long-Term Debt (includes $3,383 at 2016 and $2,197 at 2015 related to VIEs)

 

39,931

   

37,495

 

Deferred Credits and Other Liabilities

       

Deferred income taxes

 

13,038

   

12,705

 

Investment tax credits

 

492

   

472

 

Accrued pension and other post-retirement benefit costs

 

1,044

   

1,088

 

Asset retirement obligations

 

10,231

   

10,264

 

Regulatory liabilities

 

6,334

   

6,255

 

Other

 

1,730

   

1,706

 

Total deferred credits and other liabilities

 

32,869

   

32,490

 

Commitments and Contingencies

       

Equity

       

Common stock, $0.001 par value, 2 billion shares authorized; 689 million and 688 million shares
outstanding at 2016 and 2015, respectively

 

1

   

1

 

Additional paid-in capital

 

37,984

   

37,968

 

Retained earnings

 

2,627

   

2,564

 

Accumulated other comprehensive loss

 

(717)

   

(806)

 

Total Duke Energy Corporation stockholders' equity

 

39,895

   

39,727

 

Noncontrolling interests

 

53

   

44

 

Total equity

 

39,948

   

39,771

 

Total Liabilities and Equity

 

$

122,654

   

$

121,156

 

 

 

 

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In millions)

         
   

Six Months Ended June 30,

   

2016

 

2015

CASH FLOWS FROM OPERATING ACTIVITIES

       

Net Income

 

$

1,211

   

$

1,414

 

Adjustments to reconcile net income to net cash provided by operating activities

 

1,995

   

1,465

 

Net cash provided by operating activities

 

3,206

   

2,879

 
         

CASH FLOWS FROM INVESTING ACTIVITIES

       

Net cash used in investing activities

 

(3,608)

   

(294)

 
         

CASH FLOWS FROM FINANCING ACTIVITIES

       

Net cash provided by (used in) financing activities

 

221

   

(3,661)

 
         

Net decrease in cash and cash equivalents

 

(181)

   

(1,076)

 

Cash and cash equivalents at the beginning of period

 

857

   

2,036

 

Cash and cash equivalents at end of period

 

$

676

   

$

960

 

 

 

 

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

June 2016 QTD vs. Prior Year

 
 

($ per share)

Regulated
Utilities

 

International
 Energy

 

Commercial
 Portfolio

 

Other

 

Consolidated

2015 QTD Reported Earnings Per Share, Diluted

$

0.91

   

$

0.08

   

$

(0.05)

   

$

(0.07)

   

$

0.78

 

Costs to Achieve, Progress Merger

   

   

   

0.02

   

0.02

 

Discontinued Operations

       

0.06

       

0.15

 

2015 QTD Adjusted Earnings Per Share, Diluted

$

0.91

   

$

0.08

   

$

0.01

   

$

(0.05)

   

$

0.95

 

Weather

(0.04)

   

   

   

   

(0.04)

 

Pricing and Riders (a)

0.08

   

   

   

   

0.08

 

Volume

   

   

   

   

 

Wholesale (b)

0.03

   

   

   

   

0.03

 

Operations and Maintenance, net of recoverables (c)

0.05

   

   

   

   

0.05

 

Latin America, including Foreign Exchange Rates (d)

   

0.03

   

   

   

0.03

 

National Methanol Company

   

(0.02)

   

   

   

(0.02)

 

Duke Energy Renewables, net of tax

   

   

   

   

 

Commercial Transmission, Pipeline and Other (e)

   

   

0.01

   

   

0.01

 

Interest Expense

   

   

   

(0.01)

   

(0.01)

 

Change in effective income tax rate (f)(g)

0.01

   

(0.02)

   

   

0.02

   

0.01

 

Other

   

(0.01)

   

   

(0.01)

   

(0.02)

 

2016 QTD Adjusted Earnings Per Share, Diluted

$

1.04

   

$

0.06

   

$

0.02

   

$

(0.05)

   

$

1.07

 

Costs to Achieve, Mergers

   

   

   

(0.10)

   

(0.10)

 

International Impairment

   

(0.21)

   

   

   

(0.21)

 

Cost Savings Initiatives

   

   

   

(0.02)

   

(0.02)

 

2016 QTD Reported Earnings Per Share, Diluted

$

1.04

   

$

(0.15)

   

$

0.02

   

$

(0.17)

   

$

0.74

 
                     
   
 

Note 1: Earnings Per Share amounts are calculated using the consolidated statutory income tax rate.

 

Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.

 

Note 3: Prior year amounts have been recast to conform with the new segment income measure.

   

(a)

Primarily due to higher retail pricing due to lower volumes for Duke Energy Carolinas (+$0.02), the NCEMPA rider (+$0.02), higher energy efficiency recoveries in the Carolinas (+$0.02), and a prior year unfavorable regulatory order in Ohio related to energy efficiency (+$0.02).

(b)

Primarily due to the implementation of the new 30-year contract with NCEMPA.

(c)

Primarily due to lower outage costs and cost savings initiatives, partially offset by costs related to the NCEMPA asset purchase.

(d)

Primarily due to higher results in Brazil due to improved hydrology (+$0.04), partially offset by weaker foreign currency exchange rates (-$0.01).

(e)

Primarily due to increased investments in Atlantic Coast and Sabal Trail pipelines.

(f)

International Energy includes the impact of no longer asserting indefinite reinvestment of foreign earnings (-$0.01).

(g)

Other is driven by impacts of finalizing federal tax audits.

 

 

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

June 2016 YTD vs. Prior Year

 
 

($ per share)

Regulated
Utilities

 

International
Energy

 

Commercial
Portfolio

 

Other

 

Consolidated

2015 YTD Reported Earnings Per Share, Diluted

$

2.01

   

$

0.13

   

$

(0.03)

   

$

(0.14)

   

$

2.01

 

Costs to Achieve, Progress Merger

   

   

   

0.04

   

0.04

 

Midwest Generation Operations (offset in Discontinued Operations)

   

   

0.13

   

   

0.13

 

Discontinued Operations

       

0.06

       

0.02

 

2015 YTD Adjusted Earnings Per Share, Diluted

$

2.01

   

$

0.13

   

$

0.16

   

$

(0.10)

   

$

2.20

 

Stock repurchase (a)

0.03

   

   

   

   

0.03

 

Weather

(0.14)

   

   

   

   

(0.14)

 

Pricing and Riders (b)

0.15

   

   

   

   

0.15

 

Volume

(0.01)

   

   

   

   

(0.01)

 

Wholesale (c)

0.05

   

   

   

   

0.05

 

Operations and Maintenance, net of recoverables (d)

0.03

   

   

   

   

0.03

 

Latin America, including Foreign Exchange Rates (e)

   

0.06

   

   

   

0.06

 

National Methanol Company

   

(0.03)

   

   

   

(0.03)

 

Duke Energy Renewables, net of tax

   

   

0.01

   

   

0.01

 

Commercial Transmission, Pipeline and Other (f)

   

   

0.01

   

   

0.01

 

Midwest Generation, net of tax (g)

   

   

(0.12)

   

   

(0.12)

 

Interest Expense

   

   

   

(0.02)

   

(0.02)

 

Change in effective income tax rate (h)

0.03

   

0.08

   

   

(0.01)

   

0.10

 

Other (i)

(0.10)

   

   

   

(0.02)

   

(0.12)

 

2016 YTD Adjusted Earnings Per Share, Diluted

$

2.05

   

$

0.24

   

$

0.06

   

$

(0.15)

   

$

2.20

 

Costs to Achieve, Mergers

   

(0.21)

   

   

   

(0.21)

 

Cost Savings Initiatives

   

   

   

(0.04)

   

(0.04)

 

International Impairment

   

   

   

(0.21)

   

(0.21)

 

2016 YTD Reported Earnings Per Share, Diluted

$

2.05

   

$

0.03

   

$

0.06

   

$

(0.40)

   

$

1.74

 
                     
   
 

Note 1: Earnings Per Share amounts are calculated using the consolidated statutory income tax rate.

 

Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.

 

Note 3: Prior year amounts have been recast to conform with the new segment income measure.

   

(a)

Due to the decrease in common shares outstanding as a result of the Accelerated Stock Repurchase Program. Weighted average diluted shares outstanding decreased from 700 million shares for the six months ended June 30, 2015, to 689 million shares for the six months ended June 30, 2016.

(b)

Primarily due to higher retail pricing for Duke Energy Carolinas (+$0.05) driven by lower volumes, the NCEMPA rider (+$0.04), higher energy efficiency recoveries in the Carolinas (+$0.03), and a prior year unfavorable regulatory order in Ohio related to energy efficiency (+$0.02).

(c)

Primarily due to the implementation of the new 30-year contract with NCEMPA.

(d)

Primarily due to lower outage costs and cost savings initiatives, partially offset by increased storm restoration costs and costs related to the NCEMPA asset purchase.

(e)

Primarily due to higher results in Brazil due to improved hydrology (+$0.09), partially offset by weaker foreign currency exchange rates (-$0.02).

(f)

Primarily due to increased investments in Atlantic Coast and Sabal Trail pipelines.

(g)

Due to the absence of earnings from the nonregulated Midwest generation business, which was sold in April 2015.

(h)

International Energy includes lower income taxes resulting from the decision to divest the International Energy segment combined with more efficient utilization of foreign tax credits, net of the impact of no longer asserting indefinite reinvestment of foreign earnings.

(i)

Regulated Utilities includes increased depreciation and amortization expense (-$0.06) due to higher depreciable base including the NCEMPA asset purchase, and higher non-income taxes (-$0.04) primarily due to increased property taxes.

 

 

 

Regulated Utilities

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

 June 2016

                                 
   

Three Months Ended June 30,

 

Six Months Ended June 30,

   

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather

Normal (2)

 

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather

Normal (2)

GWh Sales (1)

                             
 

Residential

17,685

   

17,989

   

(1.7%)

   

0.7%

   

39,347

   

42,019

   

(6.4%)

   

0.3%

 
 

General Service

18,673

   

18,795

   

(0.6%)

   

(0.2%)

   

36,523

   

37,077

   

(1.5%)

   

(0.8%)

 
 

Industrial

13,021

   

13,105

   

(0.6%)

   

(0.5%)

   

25,293

   

25,369

   

(0.3%)

   

—%

 
 

Other Energy Sales

145

   

149

   

(2.7%)

       

291

   

301

   

(3.3%)

     
 

Unbilled Sales

2,125

   

2,378

   

(10.6%)

   

n/a

   

1,781

   

1,332

   

33.7%

   

n/a

 
 

Total Retail Sales

51,649

   

52,416

   

(1.5%)

   

—%

   

103,235

   

106,098

   

(2.7%)

   

(0.2%)

 
 

Special Sales

10,536

   

8,582

   

22.8%

       

21,681

   

18,101

   

19.8%

     
 

Total Consolidated Electric Sales - Regulated Utilities

62,185

   

60,998

   

1.9%

       

124,916

   

124,199

   

0.6%

     
                                 

Average Number of Customers (Electric)

                             
 

Residential

6,438,062

   

6,348,277

   

1.4%

       

6,431,744

   

6,345,413

   

1.4%

     
 

General Service

961,364

   

951,642

   

1.0%

       

959,423

   

949,694

   

1.0%

     
 

Industrial

17,864

   

18,159

   

(1.6%)

       

17,900

   

18,172

   

(1.5%)

     
 

Other Energy Sales

23,099

   

23,012

   

0.4%

       

23,106

   

22,982

   

0.5%

     
 

Total Regular Sales

7,440,389

   

7,341,090

   

1.4%

       

7,432,173

   

7,336,261

   

1.3%

     
 

Special Sales

65

   

61

   

6.6%

       

64

   

64

   

—%

     
 

Total Average Number of Customers - Regulated Utilities

7,440,454

   

7,341,151

   

1.4%

       

7,432,237

   

7,336,325

   

1.3%

     
                                 

Sources of Electric Energy (GWh)

                             
 

Generated - Net Output (3)

                             
 

Coal

15,768

   

17,963

   

(12.2%)

       

33,702

   

38,924

   

(13.4%)

     
 

Nuclear

18,609

   

16,722

   

11.3%

       

36,608

   

34,111

   

7.3%

     
 

Hydro

324

   

439

   

(26.2%)

       

1,371

   

934

   

46.8%

     
 

Oil and Natural Gas

14,784

   

15,250

   

(3.1%)

       

30,867

   

29,521

   

4.6%

     
 

Renewable Energy

45

   

4

   

1,025.0%

       

98

   

7

   

1,300.0%

     
 

Total Generation (4)

49,530

   

50,378

   

(1.7%)

       

102,646

   

103,497

   

(0.8%)

     
 

Purchased Power and Net Interchange (5)

16,139

   

13,842

   

16.6%

       

28,652

   

27,226

   

5.2%

     
 

Total Sources of Energy

65,669

   

64,220

   

2.3%

       

131,298

   

130,723

   

0.4%

     
 

Less: Line Loss and Company Usage

3,484

   

3,222

   

8.1%

       

6,382

   

6,524

   

(2.2%)

     
 

Total GWh Sources

62,185

   

60,998

   

1.9%

       

124,916

   

124,199

   

0.6%

     
                                 

Owned MW Capacity (3)

                             
 

Summer

               

49,666

   

49,576

         
 

Winter

               

52,837

   

52,831

         

Nuclear Capacity Factor (%) (6)

               

96

   

93

         
                                 
                                 
 

(1)  Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

                                 
 

(2)  Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

                                 
 

(3)  Statistics reflect Duke Energy's ownership share of jointly owned stations.

                                 
 

(4)  Generation by source is reported net of auxiliary power.

                                 
 

(5)  Purchased power includes renewable energy purchases.

                                 
 

(6)  Statistics reflect 100% of jointly owned stations.

                                 

 

 

 

Regulated Utilities

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

 June 2016

                               
   

Three Months Ended June 30,

     

Six Months Ended June 30,

 
   

2016

 

2015

 

%

Inc.(Dec.)

     

2016

 

2015

 

%

Inc.(Dec.)

 

Heating and Cooling Degree Days

                           
 

Carolinas - Actual

                           
 

Heating Degree Days

189

   

150

   

26.0%

       

1,777

   

2,054

   

(13.5%)

   
 

Cooling Degree Days

573

   

632

   

(9.3%)

       

601

   

636

   

(5.5%)

   
                               
 

Variance from Normal

                           
 

Heating Degree Days

(7.8%)

   

(19.5%)

   

n/a

       

(6.6%)

   

11.6%

   

n/a

   
 

Cooling Degree Days

12.8%

   

15.3%

   

n/a

       

16.5%

   

14.0%

   

n/a

   
                               
 

Midwest - Actual

                           
 

Heating Degree Days

499

   

380

   

31.3%

       

2,934

   

3,500

   

(16.2%)

   
 

Cooling Degree Days

374

   

378

   

(1.1%)

       

374

   

378

   

(1.1%)

   
                               
 

Variance from Normal

                           
 

Heating Degree Days

5.7%

   

(10.4%)

   

n/a

       

(7.2%)

   

14.6%

   

n/a

   
 

Cooling Degree Days

14.7%

   

3.0%

   

n/a

       

13.3%

   

1.3%

   

n/a

   
                               
 

Florida - Actual

                           
 

Heating Degree Days

   

   

—%

       

401

   

373

   

7.5%

   
 

Cooling Degree Days

1,112

   

1,256

   

(11.5%)

       

1,311

   

1,490

   

(12.0%)

   
                               
 

Variance from Normal

                           
 

Heating Degree Days

(100.0%)

   

(100.0%)

   

n/a

       

1.1%

   

(6.3%)

   

n/a

   
 

Cooling Degree Days

8.0%

   

19.3%

   

n/a

       

7.9%

   

21.6%

   

n/a

   
                               

 

 

 

Duke Energy Carolinas

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

 June 2016

                                 
   

Three Months Ended June 30,

 

Six Months Ended June 30,

   

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather

Normal (2)

 

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather

Normal (2)

GWh Sales (1)

                             
 

Residential

5,671

   

5,754

   

(1.4%)

       

13,251

   

14,232

   

(6.9%)

     
 

General Service

6,934

   

6,942

   

(0.1%)

       

13,598

   

13,801

   

(1.5%)

     
 

Industrial

5,545

   

5,614

   

(1.2%)

       

10,623

   

10,689

   

(0.6%)

     
 

Other Energy Sales

76

   

76

   

—%

       

152

   

153

   

(0.7%)

     
 

Unbilled Sales

685

   

843

   

(18.7%)

       

690

   

354

   

94.9%

     
 

Total Regular Electric Sales

18,911

   

19,229

   

(1.7%)

   

(0.4%)

   

38,314

   

39,229

   

(2.3%)

   

(0.1%)

 
 

Special Sales

1,846

   

2,077

   

(11.1%)

       

4,068

   

4,545

   

(10.5%)

     
 

Total Consolidated Electric Sales - Duke Energy Carolinas

20,757

   

21,306

   

(2.6%)

       

42,382

   

43,774

   

(3.2%)

     
                                 

Average Number of Customers

                             
 

Residential

2,143,608

   

2,112,443

   

1.5%

       

2,141,071

   

2,110,556

   

1.4%

     
 

General Service

348,878

   

344,865

   

1.2%

       

348,103

   

344,029

   

1.2%

     
 

Industrial

6,301

   

6,446

   

(2.2%)

       

6,317

   

6,459

   

(2.2%)

     
 

Other Energy Sales

15,153

   

14,993

   

1.1%

       

15,143

   

14,974

   

1.1%

     
 

Total Regular Sales

2,513,940

   

2,478,747

   

1.4%

       

2,510,634

   

2,476,018

   

1.4%

     
 

Special Sales

25

   

24

   

4.2%

       

24

   

25

   

(4.0%)

     
 

Total Average Number of Customers - Duke Energy Carolinas

2,513,965

   

2,478,771

   

1.4%

       

2,510,658

   

2,476,043

   

1.4%

     
                                 

Sources of Electric Energy (GWh)

                             
 

Generated - Net Output (3)

                             
 

Coal

5,082

   

5,695

   

(10.8%)

       

10,661

   

13,530

   

(21.2%)

     
 

Nuclear

10,809

   

11,803

   

(8.4%)

       

21,802

   

23,119

   

(5.7%)

     
 

Hydro

112

   

219

   

(48.9%)

       

837

   

476

   

75.8%

     
 

Oil and Natural Gas

2,691

   

2,758

   

(2.4%)

       

5,677

   

4,991

   

13.7%

     
 

Renewable Energy

4

   

4

   

—%

       

7

   

7

   

     
 

Total Generation (4)

18,698

   

20,479

   

(8.7%)

       

38,984

   

42,123

   

(7.5%)

     
 

Purchased Power and Net Interchange (5)

3,448

   

2,135

   

61.5%

       

6,067

   

4,257

   

42.5%

     
 

Total Sources of Energy

22,146

   

22,614

   

(2.1%)

       

45,051

   

46,380

   

(2.9%)

     
 

Less: Line Loss and Company Usage

1,389

   

1,308

   

6.2%

       

2,669

   

2,606

   

2.4%

     
 

Total GWh Sources

20,757

   

21,306

   

(2.6%)

       

42,382

   

43,774

   

(3.2%)

     
                                 

Owned MW Capacity (3)

                             
 

Summer

               

19,678

   

19,645

         
 

Winter

               

20,383

   

20,357

         

Nuclear Capacity Factor (%) (6)

               

96

   

98

         
                                 

Heating and Cooling Degree Days

                             
 

Actual

                             
 

Heating Degree Days

200

   

163

   

22.7%

       

1,861

   

2,104

   

(11.5%)

     
 

Cooling Degree Days

570

   

623

   

(8.5%)

       

589

   

624

   

(5.6%)

     
                                 
 

Variance from Normal

                             
 

Heating Degree Days

(9.5%)

   

(18.9%)

   

n/a

       

(6.3%)

   

9.7%

   

n/a

     
 

Cooling Degree Days

17.3%

   

18.7%

   

n/a

       

19.6%

   

16.9%

   

n/a

     
                                 
                                 
 

(1)  Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

                                 
 

(2)  Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

                                 
 

(3)  Statistics reflect Duke Energy's ownership share of jointly owned stations.

                                 
 

(4)  Generation by source is reported net of auxiliary power.

                                 
 

(5)  Purchased power includes renewable energy purchases.

                                 
 

(6)  Statistics reflect 100% of jointly owned stations.

                                                 

 


 

Duke Energy Progress

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

 June 2016

                                 
   

Three Months Ended June 30,

 

Six Months Ended June 30,

   

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather

Normal (2)

 

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather

Normal (2)

GWh Sales (1)

                             
 

Residential

3,597

   

3,673

   

(2.1%)

       

8,597

   

9,440

   

(8.9%)

     
 

General Service

3,680

   

3,688

   

(0.2%)

       

7,340

   

7,437

   

(1.3%)

     
 

Industrial

2,547

   

2,565

   

(0.7%)

       

4,986

   

5,002

   

(0.3%)

     
 

Other Energy Sales

22

   

27

   

(18.5%)

       

46

   

55

   

(16.4%)

     
 

Unbilled Sales

345

   

570

   

(39.5%)

       

210

   

129

   

62.8%

     
 

Total Regular Electric Sales

10,191

   

10,523

   

(3.2%)

   

(1.3%)

   

21,179

   

22,063

   

(4.0%)

   

(0.5%)

 
 

Special Sales

6,638

   

4,429

   

49.9%

       

12,799

   

9,654

   

32.6%

     
 

Total Consolidated Electric Sales - Duke Energy Progress

16,829

   

14,952

   

12.6%

       

33,978

   

31,717

   

7.1%

     
                                 

Average Number of Customers

                             
 

Residential

1,289,306

   

1,271,806

   

1.4%

       

1,287,593

   

1,270,438

   

1.4%

     
 

General Service

228,717

   

225,735

   

1.3%

       

228,120

   

225,073

   

1.4%

     
 

Industrial

4,137

   

4,229

   

(2.2%)

       

4,148

   

4,229

   

(1.9%)

     
 

Other Energy Sales

1,542

   

1,690

   

(8.8%)

       

1,571

   

1,689

   

(7.0%)

     
 

Total Regular Sales

1,523,702

   

1,503,460

   

1.3%

       

1,521,432

   

1,501,429

   

1.3%

     
 

Special Sales

15

   

15

   

—%

       

15

   

15

   

—%

     
 

Total Average Number of Customers - Duke Energy Progress

1,523,717

   

1,503,475

   

1.3%

       

1,521,447

   

1,501,444

   

1.3%

     
                                 

Sources of Electric Energy (GWh)

                             
 

Generated - Net Output (3)

                             
 

Coal

2,328

   

3,340

   

(30.3%)

       

4,435

   

7,344

   

(39.6%)

     
 

Nuclear

7,800

   

4,919

   

58.6%

       

14,806

   

10,992

   

34.7%

     
 

Hydro

125

   

152

   

(17.8%)

       

378

   

334

   

13.2%

     
 

Oil and Natural Gas

5,623

   

5,505

   

2.1%

       

12,095

   

11,326

   

6.8%

     
 

Renewable Energy

41

   

   

n/a

       

91

   

   

n/a

     
 

Total Generation (4)

15,917

   

13,916

   

14.4%

       

31,805

   

29,996

   

6.0%

     
 

Purchased Power and Net Interchange (5)

1,497

   

1,666

   

(10.1%)

       

3,262

   

3,180

   

2.6%

     
 

Total Sources of Energy

17,414

   

15,582

   

11.8%

       

35,067

   

33,176

   

5.7%

     
 

Less: Line Loss and Company Usage

585

   

630

   

(7.1%)

       

1,089

   

1,459

   

(25.4%)

     
 

Total GWh Sources

16,829

   

14,952

   

12.6%

       

33,978

   

31,717

   

7.1%

     
                                 

Owned MW Capacity (3)

                             
 

Summer

               

12,935

   

12,222

         
 

Winter

               

14,034

   

13,319

         

Nuclear Capacity Factor (%) (6)

               

96

   

83

         
                                 

Heating and Cooling Degree Days

                             
 

Actual

                             
 

Heating Degree Days

179

   

136

   

31.6%

       

1,693

   

2,003

   

(15.5%)

     
 

Cooling Degree Days

576

   

641

   

(10.1%)

       

612

   

648

   

(5.6%)

     
                                 
 

Variance from Normal

                             
 

Heating Degree Days

(5.3%)

   

(19.0%)

   

n/a

       

(6.9%)

   

13.6%

   

n/a

     
 

Cooling Degree Days

8.7%

   

12.5%

   

n/a

       

13.3%

   

11.5%

   

n/a

     
                                 
                                 
 

(1)  Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

                                 
 

(2)  Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

                                 
 

(3)  Statistics reflect Duke Energy's ownership share of jointly owned stations.

                                 
 

(4)  Generation by source is reported net of auxiliary power.

                                 
 

(5)  Purchased power includes renewable energy purchases.

                                 
 

(6)  Statistics reflect 100% of jointly owned stations.

                                                 

 

 

 

Duke Energy Florida

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

 June 2016

                                 
   

Three Months Ended June 30,

 

Six Months Ended June 30,

   

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather

Normal (2)

 

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather

Normal (2)

GWh Sales (1)

                             
 

Residential

4,872

   

4,944

   

(1.5%)

       

9,045

   

9,048

   

—%

     
 

General Service

3,820

   

3,857

   

(1.0%)

       

7,061

   

7,092

   

(0.4%)

     
 

Industrial

812

   

821

   

(1.1%)

       

1,564

   

1,581

   

(1.1%)

     
 

Other Energy Sales

6

   

6

   

—%

       

12

   

12

   

—%

     
 

Unbilled Sales

669

   

679

   

(1.5%)

       

658

   

793

   

(17.0%)

     
 

Total Regular Electric Sales

10,179

   

10,307

   

(1.2%)

   

2.2%

   

18,340

   

18,526

   

(1.0%)

   

1.0%

 
 

Special Sales

467

   

495

   

(5.7%)

       

762

   

749

   

1.7%

     
 

Total Electric Sales - Duke Energy Florida

10,646

   

10,802

   

(1.4%)

       

19,102

   

19,275

   

(0.9%)

     
                                 

Average Number of Customers

                             
 

Residential

1,546,606

   

1,521,460

   

1.7%

       

1,544,081

   

1,518,985

   

1.7%

     
 

General Service

195,356

   

193,278

   

1.1%

       

195,032

   

192,919

   

1.1%

     
 

Industrial

2,182

   

2,245

   

(2.8%)

       

2,192

   

2,251

   

(2.6%)

     
 

Other Energy Sales

1,536

   

1,537

   

(0.1%)

       

1,536

   

1,539

   

(0.2%)

     
 

Total Regular Sales

1,745,680

   

1,718,520

   

1.6%

       

1,742,841

   

1,715,694

   

1.6%

     
 

Special Sales

15

   

14

   

7.1%

       

15

   

15

   

—%

     
 

Total Average Number of Customers - Duke Energy Florida

1,745,695

   

1,718,534

   

1.6%

       

1,742,856

   

1,715,709

   

1.6%

     
                                 

Sources of Electric Energy (GWh)

                             
 

Generated - Net Output (3)

                             
 

Coal

2,331

   

3,044

   

(23.4%)

       

3,782

   

5,197

   

(27.2%)

     
 

Oil and Natural Gas

5,638

   

6,430

   

(12.3%)

       

11,761

   

11,913

   

(1.3%)

     
 

Total Generation (4)

7,969

   

9,474

   

(15.9%)

       

15,543

   

17,110

   

(9.2%)

     
 

Purchased Power and Net Interchange (5)

3,130

   

1,910

   

63.9%

       

4,639

   

3,294

   

40.8%

     
 

Total Sources of Energy

11,099

   

11,384

   

(2.5%)

       

20,182

   

20,404

   

(1.1%)

     
 

Less: Line Loss and Company Usage

453

   

582

   

(22.2%)

       

1,080

   

1,129

   

(4.3%)

     
 

Total GWh Sources

10,646

   

10,802

   

(1.4%)

       

19,102

   

19,275

   

(0.9%)

     
                                 

Owned MW Capacity (3)

                             
 

Summer

               

8,848

   

9,154

         
 

Winter

               

9,735

   

10,120

         
                                 

Heating and Cooling Degree Days

                             
 

Actual

                             
 

Heating Degree Days

   

   

—%

       

401

   

373

   

7.5%

     
 

Cooling Degree Days

1,112

   

1,256

   

(11.5%)

       

1,311

   

1,490

   

(12.0%)

     
                                 
 

Variance from Normal

                             
 

Heating Degree Days

(100.0%)

   

(100.0%)

   

n/a

       

1.1%

   

(6.3%)

   

n/a

     
 

Cooling Degree Days

8.0%

   

19.3%

   

n/a

       

7.9%

   

21.6%

   

n/a

     
                                 
                                 
 

(1)  Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

                                 
 

(2)  Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

                                 
 

(3)  Statistics reflect Duke Energy's ownership share of jointly owned stations.

                                 
 

(4)  Generation by source is reported net of auxiliary power.

                                 
 

(5)  Purchased power includes renewable energy purchases.

                                                 

 

 

 

Duke Energy Ohio

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

 June 2016

                                 
   

Three Months Ended June 30,

 

Six Months Ended June 30,

   

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather

Normal (2)

 

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather

Normal (2)

GWh Sales (1)

                             
 

Residential

1,747

   

1,811

   

(3.5%)

       

4,067

   

4,492

   

(9.5%)

     
 

General Service

2,278

   

2,315

   

(1.6%)

       

4,575

   

4,678

   

(2.2%)

     
 

Industrial

1,457

   

1,479

   

(1.5%)

       

2,901

   

2,927

   

(0.9%)

     
 

Other Energy Sales

28

   

26

   

7.7%

       

55

   

54

   

1.9%

     
 

Unbilled Sales

212

   

182

   

16.5%

       

120

   

49

   

144.9%

     
 

Total Regular Electric Sales

5,722

   

5,813

   

(1.6%)

   

(1.0%)

   

11,718

   

12,200

   

(4.0%)

   

(1.3%)

 
 

Special Sales

74

   

420

   

(82.4%)

       

185

   

800

   

(76.9%)

     
 

Total Electric Sales - Duke Energy Ohio

5,796

   

6,233

   

(7.0%)

       

11,903

   

13,000

   

(8.4%)

     
                                 

Average Number of Customers

                             
 

Residential

752,249

   

746,005

   

0.8%

       

752,718

   

746,812

   

0.8%

     
 

General Service

87,543

   

87,200

   

0.4%

       

87,491

   

87,187

   

0.3%

     
 

Industrial

2,517

   

2,530

   

(0.5%)

       

2,523

   

2,534

   

(0.4%)

     
 

Other Energy Sales

3,254

   

3,218

   

1.1%

       

3,250

   

3,212

   

1.2%

     
 

Total Regular Sales

845,563

   

838,953

   

0.8%

       

845,982

   

839,745

   

0.7%

     
 

Special Sales

1

   

1

   

—%

       

1

   

1

   

—%

     
 

Total Average Number of Customers - Duke Energy Ohio

845,564

   

838,954

   

0.8%

       

845,983

   

839,746

   

0.7%

     
                                 

Sources of Electric Energy (GWh)

                             
 

Generated - Net Output (3)

                             
 

Coal

536

   

1,168

   

(54.1%)

       

1,464

   

2,388

   

(38.7%)

     
 

Oil and Natural Gas

10

   

10

   

—%

       

11

   

30

   

(63.3%)

     
 

Total Generation (4)

546

   

1,178

   

(53.7%)

       

1,475

   

2,418

   

(39.0%)

     
 

Purchased Power and Net Interchange (5)

5,931

   

5,496

   

7.9%

       

11,486

   

11,446

   

0.3%

     
 

Total Sources of Energy

6,477

   

6,674

   

(3.0%)

       

12,961

   

13,864

   

(6.5%)

     
 

Less: Line Loss and Company Usage

681

   

441

   

54.4%

       

1,058

   

864

   

22.5%

     
 

Total GWh Sources

5,796

   

6,233

   

(7.0%)

       

11,903

   

13,000

   

(8.4%)

     
                                 

Owned MW Capacity (3)

                             
 

Summer

               

1,062

   

1,062

         
 

Winter

               

1,164

   

1,164

         
                                 

Heating and Cooling Degree Days

                             
 

Actual

                             
 

Heating Degree Days

475

   

348

   

36.5%

       

2,824

   

3,310

   

(14.7%)

     
 

Cooling Degree Days

372

   

391

   

(4.9%)

       

372

   

391

   

(4.9%)

     
                                 
 

Variance from Normal

                             
 

Heating Degree Days

5.8%

   

(14.5%)

   

n/a

       

(7.2%)

   

12.1%

   

n/a

     
 

Cooling Degree Days

14.5%

   

7.7%

   

n/a

       

13.3%

   

6.3%

   

n/a

     
                                 
                                 
 

(1)  Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

                                 
 

(2)  Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

                                 
 

(3)  Statistics reflect Duke Energy's ownership share of jointly owned stations.

                                 
 

(4)  Generation by source is reported net of auxiliary power.

                                 
 

(5)  Purchased power includes renewable energy purchases.

                                                 

 

 

 

Duke Energy Ohio

Quarterly Highlights

Supplemental Regulated Utilities Gas Information

 June 2016

                                 
   

Three Months Ended June 30,

 

Six Months Ended June 30,

   

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather
Normal (2)

 

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather

Normal (2)

MCF Sales (1)

                             
 

Residential

4,930,088

   

5,052,315

   

(2.4%)

       

21,627,643

   

27,231,220

   

(20.6%)

     
 

General Service

3,487,618

   

3,553,999

   

(1.9%)

       

13,567,296

   

16,625,080

   

(18.4%)

     
 

Industrial

1,404,742

   

1,335,427

   

5.2%

       

3,882,745

   

4,411,288

   

(12.0%)

     
 

Other Energy Sales

4,988,355

   

4,538,714

   

9.9%

       

10,813,639

   

10,754,865

   

0.5%

     
 

Unbilled Sales

(2,096,677)

   

(2,892,000)

   

27.5%

       

(2,435,677)

   

(3,245,000)

   

24.9%

     
 

Total Gas Sales - Duke Energy Ohio

12,714,126

   

11,588,455

   

9.7%

   

6.2%

   

47,455,646

   

55,777,453

   

(14.9%)

   

(7.7%)

 
                                 
                                 

Average Number of Customers

                             
 

Residential

477,813

   

474,973

   

0.6%

       

479,166

   

476,554

   

0.5%

     
 

General Service

42,898

   

43,003

   

(0.2%)

       

44,061

   

44,171

   

(0.2%)

     
 

Industrial

1,601

   

1,604

   

(0.2%)

       

1,650

   

1,655

   

(0.3%)

     
 

Other Energy Sales

143

   

143

   

—%

       

143

   

144

   

(0.7%)

     
 

Total Average Number of Gas Customers - Duke
Energy Ohio

522,455

   

519,723

   

0.5%

       

525,020

   

522,524

   

0.5%

     
                                 
                                 
                                 

Heating and Cooling Degree Days

                             
 

Actual

                             
 

Heating Degree Days

475

   

348

   

36.5%

       

2,824

   

3,310

   

(14.7%)

     
 

Cooling Degree Days

372

   

391

   

(4.9%)

       

372

   

391

   

(4.9%)

     
                                 
 

Variance from Normal

                             
 

Heating Degree Days

5.8%

   

(14.5%)

   

n/a

       

(7.2%)

   

12.1%

   

n/a

     
 

Cooling Degree Days

14.5%

   

7.7%

   

n/a

       

13.3%

   

6.3%

   

n/a

     
                                 
                                 
 

(1)  Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

                                 
 

(2)  Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

                                 
                                 
                                                 

 

 

 

 

Duke Energy Indiana

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

 June 2016

                                 
   

Three Months Ended June 30,

 

Six Months Ended June 30,

   

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather

Normal (2)

 

2016

 

2015

 

%

Inc.(Dec.)

 

% Inc.
(Dec.)

Weather

Normal (2)

GWh Sales (1)

                             
 

Residential

1,798

   

1,807

   

(0.5%)

       

4,387

   

4,807

   

(8.7%)

     
 

General Service

1,961

   

1,993

   

(1.6%)

       

3,949

   

4,069

   

(2.9%)

     
 

Industrial

2,660

   

2,626

   

1.3%

       

5,219

   

5,170

   

0.9%

     
 

Other Energy Sales

13

   

14

   

(7.1%)

       

26

   

27

   

(3.7%)

     
 

Unbilled Sales

214

   

104

   

105.8%

       

103

   

7

   

1,371.4%

     
 

Total Regular Electric Sales

6,646

   

6,544

   

1.6%

   

0.8%

   

13,684

   

14,080

   

(2.8%)

   

(0.6%)

 
 

Special Sales

1,511

   

1,161

   

30.1%

       

3,867

   

2,353

   

64.3%

     
 

Total Electric Sales - Duke Energy Indiana

8,157

   

7,705

   

5.9%

       

17,551

   

16,433

   

6.8%

     
                                 

Average Number of Customers

                             
 

Residential

706,293

   

696,563

   

1.4%

       

706,281

   

698,622

   

1.1%

     
 

General Service

100,870

   

100,564

   

0.3%

       

100,677

   

100,486

   

0.2%

     
 

Industrial

2,727

   

2,709

   

0.7%

       

2,720

   

2,699

   

0.8%

     
 

Other Energy Sales

1,614

   

1,574

   

2.5%

       

1,606

   

1,568

   

2.4%

     
 

Total Regular Sales

811,504

   

801,410

   

1.3%

       

811,284

   

803,375

   

1.0%

     
 

Special Sales

9

   

7

   

28.6%

       

9

   

8

   

12.5%

     
 

Total Average Number of Customers - Duke Energy Indiana

811,513

   

801,417

   

1.3%

       

811,293

   

803,383

   

1.0%

     
                                 

Sources of Electric Energy (GWh)

                             
 

Generated - Net Output (3)

                             
 

Coal

5,491

   

4,716

   

16.4%

       

13,360

   

10,465

   

27.7%

     
 

Hydro

87

   

68

   

27.9%

       

156

   

124

   

25.8%

     
 

Oil and Natural Gas

822

   

547

   

50.3%

       

1,323

   

1,261

   

4.9%

     
 

Total Generation (4)

6,400

   

5,331

   

20.1%

       

14,839

   

11,850

   

25.2%

     
 

Purchased Power and Net Interchange (5)

2,133

   

2,635

   

(19.1%)

       

3,198

   

5,049

   

(36.7%)

     
 

Total Sources of Energy

8,533

   

7,966

   

7.1%

       

18,037

   

16,899

   

6.7%

     
 

Less: Line Loss and Company Usage

376

   

261

   

44.1%

       

486

   

466

   

4.3%

     
 

Total GWh Sources

8,157

   

7,705

   

5.9%

       

17,551

   

16,433

   

6.8%

     
                                 

Owned MW Capacity (3)

                             
 

Summer

               

7,143

   

7,493

         
 

Winter

               

7,521

   

7,871

         
                                 

Heating and Cooling Degree Days

                             
 

Actual

                             
 

Heating Degree Days

522

   

411

   

27.0%

       

3,043

   

3,689

   

(17.5%)

     
 

Cooling Degree Days

376

   

364

   

3.3%

       

376

   

364

   

3.3%

     
                                 
 

Variance from Normal

                             
 

Heating Degree Days

6.1%

   

(7.0%)

   

n/a

       

(7.0%)

   

16.9%

   

n/a

     
 

Cooling Degree Days

14.6%

   

(1.4%)

   

n/a

       

13.4%

   

(2.9%)

   

n/a

     
                                 
                                 
 

(1)  Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

                                 
 

(2)  Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

                                 
 

(3)  Statistics reflect Duke Energy's ownership share of jointly owned stations.

                                 
 

(4)  Generation by source is reported net of auxiliary power.

                                 
 

(5)  Purchased power includes renewable energy purchases.

                                                 

 

 

 

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Three Months Ended June 30, 2016

(Dollars in millions, except per-share amounts)

 
       

Special Items

           
   

Reported
Earnings

 

Costs to
Achieve,
Mergers

 

International
Impairment

 

Cost Savings
Initiatives

 

Discontinued
Operations

 

Total
Adjustments

 

Adjusted
Earnings

SEGMENT INCOME

                           

Regulated Utilities

 

$

718

   

$

   

$

   

$

   

$

   

$

   

$

718

 

International Energy

 

(102)

   

   

145

 

B

   

   

145

   

43

 

Commercial Portfolio

 

14

   

   

   

   

   

   

14

 

Total Reportable Segment Income

 

630

   

   

145

   

   

   

145

   

775

 

Other

 

(120)

   

69

 

A

   

15

 

C

   

84

   

(36)

 

Total Reportable Segment Income and Other Net Expense

 

510

   

69

   

145

   

15

   

   

229

   

739

 

Discontinued Operations

 

(1)

   

   

   

   

1

 

D

1

   

 

Net Income Attributable to Duke Energy Corporation

 

$

509

   

$

69

   

$

145

   

$

15

   

$

1

   

$

230

   

$

739

 

EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC

 

$

0.74

   

$

0.10

   

$

0.21

   

$

0.02

   

$

   

$

0.33

   

$

1.07

 

EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED

 

$

0.74

   

$

0.10

   

$

0.21

   

$

0.02

   

$

   

$

0.33

   

$

1.07

 
   

A -

Net of $42 million tax benefit. Includes $28 million recorded within Operating Expenses and $83 million recorded within Interest Expense on the Condensed Consolidated Statements of Operations. The interest expense is primarily mark-to-market losses related to forward-starting interest rate swaps utilized to manage interest rate exposure for the expected financing of the Piedmont acquisition.

B -

Net of $49 million tax benefit. Impairment of certain assets in Central America recorded within Impairment Charges on the Condensed Consolidated Statements of Operations.

C -

Net of $9 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Condensed Consolidated Statements of Operations.

D -

Recorded in (Loss) Income From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.

             

Weighted Average Shares (reported and adjusted) - in millions

               Basic 

   

689

               

               Diluted 

   

690

               

 

 

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Six Months Ended June 30, 2016

(Dollars in millions, except per-share amounts)

 
       

Special Items

           
   

Reported
Earnings

 

Costs to
Achieve,
Mergers

 

International
Impairment

 

Cost Savings
Initiatives

 

Discontinued
Operations

 

Total
Adjustments

 

Adjusted
Earnings

SEGMENT INCOME

                           

Regulated Utilities

 

$

1,413

   

$

   

$

   

$

   

$

   

$

   

$

1,413

 

International Energy

 

21

   

   

145

 

B

   

   

145

   

166

 

Commercial Portfolio

 

41

   

   

   

   

   

   

41

 

Total Reportable Segment Income

 

1,475

   

   

145

   

   

   

145

   

1,620

 

Other

 

(274)

   

143

 

A

   

27

 

C

   

170

   

(104)

 

Total Reportable Segment Income and Other Net Expense

 

1,201

   

143

   

145

   

27

   

   

315

   

1,516

 

Discontinued Operations

 

2

   

   

   

   

(2)

 

D

(2)

   

 

Net Income Attributable to Duke Energy Corporation

 

$

1,203

   

$

143

   

$

145

   

$

27

   

$

(2)

   

$

313

   

$

1,516

 

EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC

 

$

1.74

   

$

0.21

   

$

0.21

   

$

0.04

   

$

   

$

0.46

   

$

2.20

 

EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED

 

$

1.74

   

$

0.21

   

$

0.21

   

$

0.04

   

$

   

$

0.46

   

$

2.20

 
   

A -

Net of $88 million tax benefit. Includes $1 million recorded within Operating Revenues, $47 million recorded within Operating Expenses and $183 million recorded within Interest Expense on the Condensed Consolidated Statements of Operations. The interest expense is primarily mark-to-market losses related to forward-starting interest rate swaps utilized to manage interest rate exposure for the expected financing of the Piedmont acquisition.

B -

Net of $49 million tax benefit. Impairment of certain assets in Central America recorded within Impairment Charges on the Condensed Consolidated Statements of Operations.

C -

Net of $17 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Condensed Consolidated Statements of Operations.

D -

Recorded in (Loss) Income From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.

   

Weighted Average Shares (reported and adjusted) - in millions

               Basic 

   

689

               

               Diluted 

   

689

               

 

 

 

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Three Months Ended  June 30, 2015

(Dollars in millions, except per-share amounts)

 
       

Special Items

           
   

Reported
Earnings

 

Costs to
Achieve,
Progress
Merger

 

Discontinued
Operations

 

Total
Adjustments

 

Adjusted
Earnings

SEGMENT INCOME

                   

Regulated Utilities

 

$

632

   

$

   

$

   

$

   

$

632

 

International Energy

 

52

   

   

   

   

52

 

Commercial Portfolio

 

(30)

   

   

41

 

D

41

   

11

 

Total Reportable Segment Income

 

654

   

   

41

   

41

   

695

 

Other

 

(51)

   

14

 

A

   

14

   

(37)

 

Intercompany Eliminations

 

(3)

   

   

3

 

C

3

   

 

Total Reportable Segment Income and Other Net Expense

 

600

   

14

   

44

   

58

   

658

 

Discontinued Operations

 

(57)

   

   

57

 

B

57

   

 

Net Income Attributable to Duke Energy Corporation

 

$

543

   

$

14

   

$

101

   

$

115

   

$

658

 

EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC

 

$

0.78

   

$

0.02

   

$

0.15

   

$

0.17

   

$

0.95

 

EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED

 

$

0.78

   

$

0.02

   

$

0.15

   

$

0.17

   

$

0.95

 
   

A -

Net of $8 million tax benefit. Recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.

B -

Recorded in (Loss) Income From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations, and includes the impact of a litigation reserve related to the nonregulated Midwest generation business.

C -

Reverses the impact on eliminations of classifying the nonregulated Midwest generation business as discontinued operations.

D -

State tax expense resulting from the completion of the sale of the nonregulated Midwest generation business.

   

Weighted Average Shares (reported and adjusted) - in millions

               Basic 

   

692

               

               Diluted 

   

692

               

 

 

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Six Months Ended June 30, 2015

(Dollars in millions, except per-share amounts)

 
       

Special Items

           
   

Reported
Earnings

 

Costs to
Achieve,
Progress
Merger

 

Midwest
Generation
Operations

 

Discontinued
Operations

 

Total
Adjustments

 

Adjusted
Earnings

SEGMENT INCOME

                       

Regulated Utilities

 

$

1,406

   

$

   

$

   

$

   

$

   

$

1,406

 

International Energy

 

88

   

   

   

   

   

88

 

Commercial Portfolio

 

(23)

   

   

94

 

B

41

 

E

135

   

112

 

Total Reportable Segment Income

 

1,471

   

   

94

   

41

   

135

   

1,606

 

Other

 

(94)

   

27

 

A

   

   

27

   

(67)

 

Intercompany Eliminations

 

(4)

   

   

   

4

 

D

4

   

 

Total Reportable Segment Income and Other Net Expense

 

1,373

   

27

   

94

   

45

   

166

   

1,539

 

Discontinued Operations

 

34

   

   

(94)

 

B

60

 

C

(34)

   

 

Net Income Attributable to Duke Energy Corporation

 

$

1,407

   

$

27

   

$

   

$

105

   

$

132

   

$

1,539

 

EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC

 

$

2.01

   

$

0.04

   

$

   

$

0.15

   

$

0.19

   

$

2.20

 

EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED

 

$

2.01

   

$

0.04

   

$

   

$

0.15

   

$

0.19

   

$

2.20

 
   

A -

Net of $16 million tax benefit. Recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.

B -

Operating results of the nonregulated Midwest generation business that had been classified from discontinued operations after adjustment for special items and economic hedges (net of $53 million tax benefit).

C -

Recorded in (Loss) Income From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations, and includes the impact of a litigation reserve related to the nonregulated Midwest generation business.

D -

Reverses the impact on eliminations of classifying the nonregulated Midwest generation business as discontinued operations.

E -

State tax expense resulting from the completion of the sale of the nonregulated Midwest generation business.

   

Weighted Average Shares (reported and adjusted) - in millions

               Basic 

   

700

               

               Diluted 

   

700

               

 

 

DUKE ENERGY CORPORATION

ADJUSTED EFFECTIVE TAX RECONCILIATION

Three and Six Months Ended June 30, 2016

(Dollars in Millions)

 
   

Three Months Ended
 June 30, 2016

 

Six Months Ended
 June 30, 2016

 
   

Balance

 

Effective Tax Rate

 

Balance

 

Effective Tax Rate

 
                   

Reported Income From Continuing Operations Before Income Taxes

 

$

752

       

$

1,661

       

Costs to Achieve, Mergers

 

111

       

231

       

International Impairment

 

194

       

194

       

Cost Savings Initiatives

 

24

       

44

       

Noncontrolling interests

 

(3)

       

(8)

       

Adjusted Pretax Income

 

$

1,078

       

$

2,122

       
                   
                   
                   

Reported Income Tax Expense From Continuing Operations

 

$

239

   

31.8%

   

$

452

   

27.2%

   

Costs to Achieve, Mergers

 

42

       

88

       

International Impairment

 

49

       

49

       

Cost Savings Initiatives

 

9

       

17

       

Adjusted Tax Expense

 

$

339

   

31.4%

*

 

$

606

   

28.6%

*

 
                   

*Adjusted effective tax rate is a non-GAAP financial measure as the rate is calculated using pretax earnings and income tax expense, both adjusted for the impact of special items. The most directly comparable GAAP measure for adjusted effective tax rate is reported effective tax rate, which includes the impact of special items.

 

 

DUKE ENERGY CORPORATION

ADJUSTED EFFECTIVE TAX RECONCILIATION

Three and Six Months Ended June 30, 2015

(Dollars in Millions)

 
   

Three Months Ended
 June 30, 2015

 

Six Months Ended
 June 30, 2015

 
   

Balance

 

Effective Tax Rate

 

Balance

 

Effective Tax Rate

 
                   

Reported Income From Continuing Operations Before Income Taxes

 

$

938

       

$

2,078

       

Costs to Achieve, Progress Energy Merger

 

22

       

43

       

Midwest Generation Operations

 

       

147

       

Noncontrolling Interests

 

(4)

       

(7)

       

Intercompany Eliminations

 

2

       

4

       

Adjusted Pretax Income

 

$

958

       

$

2,265

       
                   
                   
                   

Reported Income Tax Expense From Continuing Operations

 

$

334

   

35.6%

   

$

698

   

33.6%

   

Tax Adjustment Related to Midwest Generation Sale

 

(41)

       

(41)

       

Midwest Generation Operations

 

       

53

       

Costs to Achieve, Progress Energy Merger

 

8

       

16

       

Intercompany Eliminations

 

(1)

       

       

Adjusted Tax Expense

 

$

300

   

31.3%

*

 

$

726

   

32.1%

*

 
                   

*Adjusted effective tax rate is a non-GAAP financial measure as the rate is calculated using pretax earnings and income tax expense, both adjusted for the impact of special items. The most directly comparable GAAP measure for adjusted effective tax rate is reported effective tax rate, which includes the impact of special items.

 

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SOURCE Duke Energy