Duke Energy 8K reports first-quarter 2023 financial results | DUK 8 May 23


News Release

Media Contact: Jennifer Garber

24-Hour: 800.559.3853

Analyst Contact: Abby Motsinger

Office: 704.382.7624

May 9, 2023

Duke Energy reports first-quarter 2023 financial results

▪First-quarter 2023 reported EPS of $1.01 and adjusted EPS of $1.20

▪Results reflect mild winter weather, among the warmest on record and $0.22 below normal

▪Commercial Renewables sale process in late stage

CHARLOTTE, N.C. – Duke Energy (NYSE: DUK) today announced first-quarter 2023 reported EPS of $1.01, prepared in accordance with Generally Accepted Accounting Principles (GAAP), and adjusted EPS of $1.20. This is compared to reported EPS of $1.08 and adjusted EPS of $1.29 for the first quarter of 2022.

Adjusted EPS excludes the impact of certain items that are included in reported EPS. The difference between the first-quarter 2023 reported and adjusted EPS included an estimated impairment on the sale of the Commercial Renewables business.

Lower first-quarter 2023 adjusted results were driven by unfavorable weather, higher interest expense, and lower volumes. These items were partially offset by growth from riders and other retail margin, lower storm costs, and favorable rate case impacts.

The company is reaffirming the adjusted 2023 EPS guidance range of $5.55 to $5.75, and long-term adjusted EPS growth rate of 5% to 7% through 2027 off the 2023 midpoint of $5.65. Management does not forecast reported GAAP EPS and related long-term growth rates.

"We're making great progress on our strategy across our entire service territory, meeting our commitments and advancing investments in a balanced way to better serve our customers,” said Lynn Good, Duke Energy chair, president and chief executive officer. "From grid improvements, to adding renewables, to advancing policy, we're taking collective action to transform and ready the system for a zero-carbon future."

“We’re responding to warm winter weather in the first quarter through disciplined cost management and other agility measures. With three quarters remaining, including our strongest quarter ahead, we are reaffirming our 2023 EPS guidance range of $5.55 to $5.75. We're also on track to deliver our long-term growth rate of 5% to 7% through 2027, off the midpoint of the 2023 range.”

Duke Energy News Release 2

Business segment results

In addition to the following summary of first-quarter 2023 business segment performance, comprehensive tables with detailed EPS drivers for the first quarter compared to prior year are provided at the end of this news release.

The discussion below of first-quarter results includes both GAAP segment income and adjusted segment income, which is a non-GAAP financial measure. The tables at the end of this news release present a full reconciliation of GAAP reported results to adjusted results.

Electric Utilities and Infrastructure

On a reported and adjusted basis, Electric Utilities and Infrastructure recognized first-quarter 2023 segment income of $791 million, compared to reported and adjusted segment income of $723 million and $896 million, respectively, in the first quarter of 2022. On an adjusted basis, this represents a decrease of $0.14 per share. Lower quarterly results were primarily due to unfavorable weather, lower volumes and higher interest expense, partially offset by lower storm costs, riders and other retail margin, and favorable rate case impacts.

Gas Utilities and Infrastructure

On a reported and adjusted basis, Gas Utilities and Infrastructure recognized first-quarter 2023 segment income of $287 million, compared to reported and adjusted segment income of $254 million in the first quarter of 2022. On an adjusted basis, this represents an increase of $0.04 per share. Higher quarterly results were primarily driven by growth from riders and other retail margin.

Other

Other primarily includes interest expense on holding company debt, other unallocated corporate costs and results from Duke Energy’s captive insurance company.

On a reported and adjusted basis, Other recognized a first-quarter 2023 segment loss of $168 million, compared to reported and adjusted segment loss of $171 million in the first quarter of 2022. On an adjusted basis, this represents an increase of $0.01 per share. Higher quarterly results were primarily due to higher returns on investments, partially offset by higher interest expense.

Discontinued Operations

Discontinued operations primarily includes the estimated impairment on the sale of the Commercial Renewables business along with results from Duke Energy's Commercial Renewables business. In November 2022, the company announced it had initiated a sale process of the Commercial Renewables business, which is expected to close in the second half of 2023.

For the first quarter of 2023, Duke Energy's GAAP reported Loss from Discontinued Operations, net of tax, includes an estimated impairment loss on the sale of the Commercial Renewables business and other transaction costs of approximately $175 million.

Duke Energy News Release 3

Effective tax rate

Duke Energy's consolidated reported effective tax rate for the first quarter of 2023 was 13.8% compared to 2.9% in the first quarter of 2022. The increase in the effective tax rate was primarily due to a decrease in the amortization of excess deferred taxes.

The effective tax rate including noncontrolling interests and preferred dividends and excluding special items for the first quarter of 2023 was 14.2% compared to 8.0% in the first quarter of 2022. The increase was primarily due to a decrease in the amortization of excess deferred taxes.

The tables at the end of this news release present a reconciliation of the reported effective tax rate to the effective tax rate including noncontrolling interests and preferred dividends and excluding special items.

Earnings conference call for analysts

An earnings conference call for analysts is scheduled at 10 a.m. ET today to discuss first-quarter 2023 financial results and other business and financial updates. The conference call will be hosted by Lynn Good, chair, president and chief executive officer, and Brian Savoy, executive vice president and chief financial officer.

The call can be accessed via the investors section (duke-energy.com/investors) of Duke Energy’s website or by dialing 844.200.6205 in the U.S. or 929.526.1599 outside the U.S. The confirmation code is 676030. Please call in 10 to 15 minutes prior to the scheduled start time.

A recording of the webcast with transcript will be available on the investors' section of the company’s website by May 10.

Special Items and Non-GAAP Reconciliation

The following tables present a reconciliation of GAAP reported earnings per share to adjusted earnings per share for first-quarter 2023 and 2022 financial results:


(In millions, except per share amounts)	After-Tax Amount		1Q 2023 EPS		1Q 2022 EPS
EPS, as reported			$	1.01	$	1.08
Adjustments to reported EPS:
First Quarter 2023




Discontinued operations	$	145	$	0.19
First Quarter 2022

Regulatory matters	$	173			$	0.23
Discontinued operations	(12)				(0.02)


Total adjustments			$	0.19	$	0.21
EPS, adjusted			$	1.20	$	1.29

Duke Energy News Release 4

Non-GAAP financial measures

Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings, adjusted EPS and effective tax rate including noncontrolling interests and preferred dividends and excluding special items. Adjusted earnings and adjusted EPS represent income (loss) from continuing operations available to Duke Energy Corporation common stockholders in dollar and per share amounts, adjusted for the dollar and per share impact of special items. The effective tax rate including noncontrolling interests and preferred dividends and excluding special items is calculated using pretax earnings and income tax expense, both as adjusted for the impact of noncontrolling interests, preferred dividends and special items. As discussed below, special items include certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance.

Management uses these non-GAAP financial measures for planning and forecasting, and for reporting financial results to the Board of Directors, employees, stockholders, analysts and investors. The most directly comparable GAAP measures for adjusted earnings, adjusted EPS and effective tax rate including noncontrolling interests and preferred dividends and excluding special items are Net Income (Loss) Available to Duke Energy Corporation common stockholders (GAAP reported earnings (loss)), Basic earnings (loss) per share Available to Duke Energy Corporation common stockholders (GAAP reported earnings (loss) per share), and the reported effective tax rate, respectively.

Special items included in the periods presented include the following items, which management believes do not reflect ongoing costs:

•Regulatory matters represents the net impact of charges related to the 2022 Indiana Supreme Court ruling on coal ash.

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 (loss) and other net loss. Segment income (loss) is defined as income (loss) from continuing operations net of income attributable to noncontrolling interests and preferred stock dividends. Segment income (loss) 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 (loss) adjusted for special items, which are discussed above. Management believes the presentation of adjusted segment income 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 or adjusted other net loss is segment income (loss) and other net loss.

Duke Energy News Release 5

Due to the forward-looking nature of any forecasted adjusted segment income or adjusted other net loss 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, as discussed above.

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

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America’s largest energy holding companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 50,000 megawatts of energy capacity. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The company employs 27,600 people.

Duke Energy is executing an aggressive clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company has interim carbon emission targets of at least 50% reduction from electric generation by 2030, 50% for Scope 2 and certain Scope 3 upstream and downstream emissions by 2035, and 80% from electric generation by 2040. In addition, the company is investing in major electric grid enhancements and energy storage, and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear.

Duke Energy was named to Fortune’s 2023 “World’s Most Admired Companies” list and Forbes’ “World’s Best Employers” list. More information is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos and videos. Duke Energy’s illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

Forward-Looking Information

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management’s beliefs and assumptions and can often be identified by terms and phrases that include “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “should,” “could,” “may,” “plan,” “project,” “predict,” “will,” “potential,” “forecast,” “target,” “guidance,” “outlook” or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to:

◦The ability to implement our business strategy, including our carbon emission reduction goals;

◦State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, including those related to 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 laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate;

Duke Energy News Release 6

◦The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations, asset retirement and construction costs related to carbon emissions reductions, and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process;

◦The costs of decommissioning nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process;

◦The impact of extraordinary external events, such as the pandemic health event resulting from COVID-19, and their collateral consequences, including the disruption of global supply chains or the economic activity in our service territories;

◦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 sustained downturns of the economy, reduced customer usage due to cost pressures from inflation or fuel costs, and the economic health of our service territories or variations in customer usage patterns, including energy efficiency efforts, natural gas building and appliance electrification, and use of alternative energy sources, such as self-generation and distributed generation technologies;

◦Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures, natural gas electrification, and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in a reduced number of customers, excess generation resources as well as stranded costs;

◦Advancements in technology;

◦Additional competition in electric and natural gas markets and continued industry consolidation;

◦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, including extreme weather associated with climate change;

◦Changing investor, customer and other stakeholder expectations and demands including heightened emphasis on environmental, social and governance concerns and costs related thereto;

◦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 United States electric grid or generating resources;

◦Operational interruptions to our natural gas distribution and transmission activities;

◦The availability of adequate interstate pipeline transportation capacity and natural gas supply;

◦The impact on facilities and business from a terrorist or other attack, war, vandalism, cybersecurity threats, data security breaches, operational events, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences;

◦The inherent risks associated with the operation of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including the financial stability of third-party service providers;

◦The timing and extent of changes in commodity prices and interest 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, compliance with debt covenants and conditions, an individual utility’s generation mix, and general market and economic conditions;

◦Credit ratings of the Duke Energy Registrants may be different from what is expected;

◦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 the Duke Energy Registrants’ capital investment projects, including risks related to financing, timing and receipt of necessary regulatory approvals, obtaining and complying with terms of permits, meeting construction budgets and schedules and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all;

◦Changes in rules for regional transmission organizations, including changes in rate designs and new and evolving capacity markets, and risks related to obligations created by the default of other participants;

◦The ability to control operation and maintenance costs;

Duke Energy News Release 7

◦The level of creditworthiness of counterparties to transactions;

◦The ability to obtain adequate insurance at acceptable costs;

◦Employee workforce factors, including the potential inability to attract and retain key personnel;

◦The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent);

◦The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities, as well as the successful sale of the Commercial Renewables Disposal Groups;

◦The effect of accounting and reporting pronouncements issued periodically by accounting standard-setting bodies and the SEC;

◦The impact of United States tax legislation to our financial condition, results of operations or cash flows and our credit ratings;

◦The impacts from potential impairments of goodwill or equity method investment carrying values;

◦Asset or business acquisitions and dispositions may not yield the anticipated benefits; and

◦The actions of activist shareholders could disrupt our operations, impact our ability to execute on our business strategy, or cause fluctuations in the trading price of our common stock.

Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at 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 and the Duke Energy Registrants expressly disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Three Months Ended March 31, 2023

(Dollars in millions, except per share amounts)



	Reported Earnings		Discontinued Operations			Total Adjustments		Adjusted Earnings
SEGMENT INCOME
Electric Utilities and Infrastructure	$	791	$	—		$	—	$	791
Gas Utilities and Infrastructure	287		—			—		287

Total Reportable Segment Income	1,078		—			—		1,078
Other	(168)		—			—		(168)

Discontinued Operations	(145)		145		A	145		—
Net Income Available to Duke Energy Corporation Common Stockholders	$	765	$	145		$	145	$	910
EPS AVAILABLE TO DUKE ENERGY CORPORATION COMMON STOCKHOLDERS	$	1.01	$	0.19		$	0.19	$	1.20

Note: Earnings Per Share amounts are adjusted for accumulated dividends for Series B Preferred Stock of $0.02.

A – Recorded in Loss from Discontinued Operations, net of tax, and Net Loss Attributable to Noncontrolling Interests on the Condensed Consolidated Statements of Operations.

Weighted Average Shares (reported and adjusted) – 770 million

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Three Months Ended March 31, 2022

(Dollars in millions, except per share amounts)


			Special Item
	Reported Earnings		Regulatory Matters			Discontinued Operations			Total Adjustments		Adjusted Earnings
SEGMENT INCOME
Electric Utilities and Infrastructure	$	723	$	173	A	$	—		$	173	$	896
Gas Utilities and Infrastructure	254					—			—		254

Total Reportable Segment Income	977		173			—			173		1,150

Other	(171)		—			—			—		(171)

Discontinued Operations	12		—			$	(12)	B	(12)		—
Net Income Available to Duke Energy Corporation Common Stockholders	$	818	$	173		$	(12)		$	161	$	979
EPS AVAILABLE TO DUKE ENERGY CORPORATION COMMON STOCKHOLDERS	$	1.08	$	0.23		$	(0.02)		$	0.21	$	1.29

Note: Earnings Per Share amounts are adjusted for accumulated dividends for Series B Preferred Stock of $0.02.

A – Net of $62 million tax benefit. $211 million recorded within Impairment of assets and other charges and $46 million within Regulated electric (Operating revenues) related to the Duke Energy Indiana Supreme Court ruling on the Condensed Consolidated Statements of Operations. $22 million recorded within Noncontrolling Interests related to the same Duke Energy Indiana Supreme Court ruling.

B – Recorded in Loss from Discontinued Operations, net of tax, and Net Loss Attributable to Noncontrolling Interests on the Condensed Consolidated Statements of Operations.

Weighted Average Shares (reported and adjusted) – 770 million

DUKE ENERGY CORPORATION

EFFECTIVE TAX RECONCILIATION

March 2023

(Dollars in millions)


	Three Months Ended March 31, 2023
	Balance		Effective Tax Rate

Reported Income From Continuing Operations Before Income Taxes	$	1,125




Noncontrolling Interests	(25)
Preferred Dividends	(39)
Pretax Income Including Noncontrolling Interests and Preferred Dividends and Excluding Special Items	$	1,061

Reported Income Tax Expense From Continuing Operations	$	155	13.8	%





Noncontrolling Interest Portion of Income Taxes(a)	(4)
Tax Expense Including Noncontrolling Interests and Preferred Dividends and Excluding Special Items	$	151	14.2	%


	Three Months Ended March 31, 2022
	Balance		Effective Tax Rate

Reported Income From Continuing Operations Before Income Taxes	$	860


Regulatory Matters	257
Noncontrolling Interests	(14)
Preferred Dividends	(39)
Pretax Income Including Noncontrolling Interests and Preferred Dividends and Excluding Special Items	$	1,064

Reported Income Tax Expense From Continuing Operations	$	25	2.9	%



Regulatory Matters	62
Noncontrolling Interest Portion of Income Taxes(a)	$	(2)
Tax Expense Including Noncontrolling Interests and Preferred Dividends and Excluding Special Items	$	85	8.0	%

(a) Income tax related to non-pass-through entities for tax purposes.

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

March 2023 YTD vs. Prior Year



(Dollars per share)	Electric Utilities and Infrastructure		Gas Utilities and Infrastructure		Other			Discontinued Operations			Consolidated
2022 YTD Reported Earnings Per Share	$	0.94	$	0.33		$	(0.21)		$	0.02		$	1.08






Regulatory Matters	0.23		—			—			—			0.23
Discontinued Operations	—		—			—			(0.02)			(0.02)
2022 YTD Adjusted Earnings Per Share	$	1.17	$	0.33		$	(0.21)		$	—		$	1.29
Weather	(0.19)		—			—			—			(0.19)
Volume(a)	(0.10)		—			—			—			(0.10)
Riders and Other Retail Margin(b)	0.09		0.04			—			—			0.13
Rate case impacts, net(c)	0.09		—			—			—			0.09
Wholesale	(0.03)		—			—			—			(0.03)
Operations and maintenance, net of recoverables(d)	0.10		—			—			—			0.10


Interest Expense(e)	(0.07)		—			(0.07)			—			(0.14)

Depreciation and amortization(e)	(0.01)		—			—			—			(0.01)

Other(f)	(0.02)		—			0.08			—			0.06
Total variance	$	(0.14)	$	0.04		$	0.01		$	—		$	(0.09)

2023 YTD Adjusted Earnings Per Share	$	1.03	$	0.37		$	(0.20)		$	—		$	1.20


Discontinued Operations	—		—			—			(0.19)			(0.19)

2023 YTD Reported Earnings Per Share	$	1.03	$	0.37		$	(0.20)		$	(0.19)		$	1.01

Note: Earnings Per Share amounts are calculated using the consolidated statutory income tax rate for all drivers. Weighted average shares outstanding is 770 million shares in 2022 and 2023.

(a) Includes block pricing (-$0.02).

(b) Electric Utilities and Infrastructure includes +$0.02 from rider growth and transmission revenues. Also includes favorable lighting revenues, higher late payment fees and regulatory true ups (+$0.02).

(c) Electric Utilities and Infrastructure includes revenues from the DEF multiyear rate plan (+$0.04) and DOE nuclear fuel storage funding at DEF (+$0.05). Per the 2021 Settlement, DEF is permitted to recognize into earnings a total of $173 million through the approved settlement period, while also remaining within the approved return on equity band.

(d) Electric Utilities and Infrastructure primarily due to higher storm costs in the prior year.

(e) Electric Utilities and Infrastructure excludes rate case impacts.

(f) Electric Utilities and Infrastructure includes the impact of GIC minority interest sale. Other includes higher returns on investments.


DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except per share amounts)

	Three Months Ended
	March 31,
		2023		2022
Operating Revenues
Regulated electric		$	6,324	$	5,933
Regulated natural gas		882		1,002
Nonregulated electric and other		70		76
Total operating revenues		7,276		7,011
Operating Expenses
Fuel used in electric generation and purchased power		2,377		1,817
Cost of natural gas		298		481
Operation, maintenance and other		1,310		1,548
Depreciation and amortization		1,227		1,257
Property and other taxes		389		382
Impairment of assets and other charges		8		215
Total operating expenses		5,609		5,700
Gains on Sales of Other Assets and Other, net		7		3
Operating Income		1,674		1,314
Other Income and Expenses
Equity in earnings of unconsolidated affiliates		20		26
Other income and expenses, net		151		89
Total other income and expenses		171		115
Interest Expense		720		569
Income From Continuing Operations Before Income Taxes		1,125		860
Income Tax Expense From Continuing Operations		155		25
Income From Continuing Operations		970		835
Loss From Discontinued Operations, net of tax		(209)		(15)
Net Income		761		820
Add: Net Loss Attributable to Noncontrolling Interests		43		37
Net Income Attributable to Duke Energy Corporation		804		857
Less: Preferred Dividends		39		39
Net Income Available to Duke Energy Corporation Common Stockholders		$	765	$	818

Earnings Per Share – Basic and Diluted
Income from continuing operations available to Duke Energy Corporation common stockholders
Basic and Diluted		$	1.20	$	1.06

(Loss) Income from discontinued operations attributable to Duke Energy Corporation common stockholders
Basic and Diluted		$	(0.19)	$	0.02

Net income available to Duke Energy Corporation common stockholders
Basic and Diluted		$	1.01	$	1.08

Weighted average shares outstanding
Basic and Diluted		770		770

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(In millions)	March 31, 2023		December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	451	$	409

Receivables (net of allowance for doubtful accounts of $45 at 2023 and $40 at 2022)	1,035		1,309
Receivables of VIEs (net of allowance for doubtful accounts of $169 at 2023 and $176 at 2022)	2,635		3,106
Inventory	3,865		3,584

Regulatory assets (includes $106 at 2023 and 2022 related to VIEs)	3,502		3,485
Assets held for sale	374		356
Other (includes $42 at 2023 and $116 at 2022 related to VIEs)	452		973
Total current assets	12,314		13,222
Property, Plant and Equipment
Cost	166,096		163,839
Accumulated depreciation and amortization	(53,162)		(52,100)
Facilities to be retired, net	8		9
Net property, plant and equipment	112,942		111,748
Other Noncurrent Assets
Goodwill	19,303		19,303
Regulatory assets (includes $1,691 at 2023 and $1,715 at 2022 related to VIEs)	14,702		14,645
Nuclear decommissioning trust funds	9,124		8,637
Operating lease right-of-use assets, net	1,019		1,042
Investments in equity method unconsolidated affiliates	465		455
Assets held for sale	5,538		$	5,634
Other (includes $50 at 2023 and $52 at 2022 related to VIEs)	3,426		3,400
Total other noncurrent assets	53,577		53,116
Total Assets	$	178,833	$	178,086
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	3,214	$	4,754
Notes payable and commercial paper	3,731		3,952
Taxes accrued	586		722
Interest accrued	693		626
Current maturities of long-term debt (includes $101 at 2023 and $350 at 2022 related to VIEs)	3,330		3,878

Asset retirement obligations	732		773
Regulatory liabilities	1,283		1,466
Liabilities associated with assets held for sale	476		535
Other	1,970		2,167
Total current liabilities	16,015		18,873
Long-Term Debt (includes $3,334 at 2023 and $3,108 at 2022 related to VIEs)	69,107		65,873
Other Noncurrent Liabilities
Deferred income taxes	10,188		9,964
Asset retirement obligations	11,987		11,955
Regulatory liabilities	13,714		13,582
Operating lease liabilities	851		876
Accrued pension and other post-retirement benefit costs	820		832
Investment tax credits	852		849
Liabilities associated with assets held for sale	1,931		$	1,927
Other	1,417		1,502
Total other noncurrent liabilities	41,760		41,487
Commitments and Contingencies
Equity
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2023 and 2022	973		973
Preferred stock, Series B, $0.001 par value, 1 million shares authorized and outstanding at 2023 and 2022	989		989
Common stock, $0.001 par value, 2 billion shares authorized; 771 million and 770 million shares outstanding at 2023 and 2022	1		1
Additional paid-in capital	44,837		44,862
Retained earnings	2,626		2,637
Accumulated other comprehensive loss	(166)		(140)
Total Duke Energy Corporation stockholders' equity	49,260		49,322
Noncontrolling interests	2,691		2,531
Total equity	51,951		51,853
Total Liabilities and Equity	$	178,833	$	178,086


DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)

	Three Months Ended March 31,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	761	$	820
Adjustments to reconcile net income to net cash provided by operating activities	722		975
Net cash provided by operating activities	1,483		1,795

CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities	(3,209)		(2,699)

CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by financing activities	1,747		1,404



Net increase in cash, cash equivalents and restricted cash	21		500
Cash, cash equivalents and restricted cash at beginning of period	603		520
Cash, cash equivalents and restricted cash at end of period	$	624	$	1,020

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended March 31, 2023
(In millions)	Electric Utilities and Infrastructure		Gas Utilities and Infrastructure		Other		Eliminations/Adjustments		Duke Energy
Operating Revenues
Regulated electric	$	6,340	$	—	$	—	$	(16)	$	6,324
Regulated natural gas	—		905		—		(23)		882
Nonregulated electric and other	58		6		31		(25)		70
Total operating revenues	6,398		911		31		(64)		7,276
Operating Expenses
Fuel used in electric generation and purchased power	2,396		—		—		(19)		2,377
Cost of natural gas	—		298		—		—		298
Operation, maintenance and other	1,269		119		(35)		(43)		1,310
Depreciation and amortization	1,096		85		54		(8)		1,227
Property and other taxes	348		31		10		—		389
Impairment of assets and other charges	7		1		—		—		8
Total operating expenses	5,116		534		29		(70)		5,609
Gains on Sales of Other Assets and Other, net	1		—		6		—		7
Operating Income	1,283		377		8		6		1,674
Other Income and Expenses
Equity in earnings of unconsolidated affiliates	1		6		13		—		20
Other income and expenses, net	129		17		49		(44)		151
Total Other Income and Expenses	130		23		62		(44)		171
Interest Expense	452		50		256		(38)		720
Income (Loss) from Continuing Operations before Income Taxes	961		350		(186)		—		1,125
Income Tax Expense (Benefit) from Continuing Operations	149		63		(57)		—		155
Income (Loss) from Continuing Operations	812		287		(129)		—		970
Less: Income Attributable to Noncontrolling Interest	21		—		—		—		21
Net Income (Loss) Attributable to Duke Energy Corporation	791		287		(129)		—		949
Less: Preferred Dividends	—		—		39		—		39
Segment Income/Other Net Loss	$	791	$	287	$	(168)	$	—	$	910
Discontinued Operations									(145)
Net Income Available to Duke Energy Corporation Common Stockholders									$	765

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended March 31, 2022
(In millions)	Electric Utilities and Infrastructure		Gas Utilities and Infrastructure		Other		Eliminations/Adjustments		Duke Energy
Operating Revenues
Regulated electric	$	5,940	$	—	$	—	$	(7)	$	5,933
Regulated natural gas	—		1,025		—		(23)		1,002
Nonregulated electric and other	62		7		30		(23)		76
Total operating revenues	6,002		1,032		30		(53)		7,011
Operating Expenses
Fuel used in electric generation and purchased power	1,837		—		—		(20)		1,817
Cost of natural gas	—		481		—		—		481
Operation, maintenance and other	1,426		182		(27)		(33)		1,548
Depreciation and amortization	1,131		79		53		(6)		1,257
Property and other taxes	337		41		4		—		382
Impairment of assets and other charges	214		—		—		1		215
Total operating expenses	4,945		783		30		(58)		5,700
Gains on Sales of Other Assets and Other, net	2		—		1		—		3
Operating Income	1,059		249		1		5		1,314
Other Income and Expenses
Equity in earnings of unconsolidated affiliates	2		4		20		—		26
Other income and expenses, net	112		13		(25)		(11)		89
Total Other Income and Expenses	114		17		(5)		(11)		115
Interest Expense	376		40		158		(5)		569
Income (Loss) Before Income Taxes	797		226		(162)		(1)		860
Income Tax Expense (Benefit)	83		(28)		(30)		—		25
Net Income (Loss)	714		254		(132)		(1)		835
Add: Net Loss Attributable to Noncontrolling Interest	9		—		—		1		10
Net Income (Loss) Attributable to Duke Energy Corporation	723		254		(132)		—		845
Less: Preferred Dividends	—		—		39		—		39
Segment Income/Other Net Loss	$	723	$	254	$	(171)	$	—	$	806
Discontinued Operations									12
Net Income Available to Duke Energy Corporation Common Stockholders									$	818

Segment Income/Other Net Loss/Net Income Available to Duke Energy Corporation Common Stockholders	$	723	$	254	$	(171)	$	—	$	806
Special Items	173		—		—		—		173
Adjusted Earnings(a)	$	896	$	254	$	(171)	$	—	$	979

(a) See Reported to Adjusted Earnings Reconciliation for a detailed reconciliation of Segment Income/Other Net Loss to Adjusted Earnings.

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS – ASSETS

(Unaudited)


	March 31, 2023
(In millions)	Electric Utilities and Infrastructure		Gas Utilities and Infrastructure		Other(a)		Eliminations/ Adjustments		Duke Energy
Current Assets
Cash and cash equivalents	$	129	$	11	$	310	$	1	$	451

Receivables, net	735		283		17		—		1,035
Receivables of variable interest entities, net	2,635		—		—		—		2,635
Receivables from affiliated companies	176		144		1,583		(1,903)		—
Notes receivable from affiliated companies	108		84		2,333		(2,525)		—
Inventory	3,718		113		35		(1)		3,865
Regulatory assets	3,263		137		102		—		3,502
Assets held for sale	—		—		374		—		374
Other	252		27		245		(72)		452
Total current assets	11,016		799		4,999		(4,500)		12,314
Property, Plant and Equipment
Cost	148,017		15,463		2,706		(90)		166,096
Accumulated depreciation and amortization	(48,470)		(3,159)		(1,533)		—		(53,162)
Facilities to be retired, net	—		8		—		—		8
Net property, plant and equipment	99,547		12,312		1,173		(90)		112,942
Other Noncurrent Assets
Goodwill	17,379		1,924		—		—		19,303
Regulatory assets	13,412		804		485		1		14,702
Nuclear decommissioning trust funds	9,124		—		—		—		9,124
Operating lease right-of-use assets, net	744		3		272		—		1,019
Investments in equity method unconsolidated affiliates	100		243		121		1		465
Investment in consolidated subsidiaries	592		5		69,678		(70,275)		—
Assets held for sale	—		—		5,538		—		5,538
Other	2,145		326		1,581		(626)		3,426
Total other noncurrent assets	43,496		3,305		77,675		(70,899)		53,577
Total Assets	154,059		16,416		83,847		(75,489)		178,833
Segment reclassifications, intercompany balances and other	(1,070)		(199)		(74,220)		75,489		—
Segment Assets	$	152,989	$	16,217	$	9,627	$	—	$	178,833

(a) Includes amounts in held for sale accounts related to the Commercial Renewables Disposal Groups.

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS – LIABILITIES AND EQUITY

(Unaudited)


	March 31, 2023
(In millions)	Electric Utilities and Infrastructure		Gas Utilities and Infrastructure		Other(a)		Eliminations/ Adjustments		Duke Energy
Current Liabilities
Accounts payable	$	2,468	$	267	$	478	$	1	$	3,214
Accounts payable to affiliated companies	731		39		1,015		(1,785)		—
Notes payable to affiliated companies	2,114		359		92		(2,565)		—
Notes payable and commercial paper	—		—		3,731		—		3,731
Taxes accrued	573		90		(77)		—		586
Interest accrued	426		46		222		(1)		693
Current maturities of long-term debt	876		211		2,248		(5)		3,330
Asset retirement obligations	732		—		—		—		732
Regulatory liabilities	1,138		145		—		—		1,283
Liabilities associated with assets held for sale	—		—		476		—		476
Other	1,511		112		497		(150)		1,970
Total current liabilities	10,569		1,269		8,682		(4,505)		16,015
Long-Term Debt	44,015		4,093		21,083		(84)		69,107
Long-Term Debt Payable to Affiliated Companies	618		7		—		(625)		—
Other Noncurrent Liabilities
Deferred income taxes	11,836		1,238		(2,886)		—		10,188
Asset retirement obligations	11,902		84		—		1		11,987
Regulatory liabilities	12,385		1,288		41		—		13,714
Operating lease liabilities	665		12		175		(1)		851
Accrued pension and other post-retirement benefit costs	300		30		490		—		820
Investment tax credits	851		1		—		—		852
Liabilities associated with assets held for sale	—		—		1,931		—		1,931
Other	768		261		577		(189)		1,417
Total other noncurrent liabilities	38,707		2,914		328		(189)		41,760
Equity
Total Duke Energy Corporation stockholders' equity	59,206		8,125		52,015		(70,086)		49,260
Noncontrolling interests	944		8		1,739		—		2,691
Total equity	60,150		8,133		53,754		(70,086)		51,951
Total Liabilities and Equity	154,059		16,416		83,847		(75,489)		178,833
Segment reclassifications, intercompany balances and other	(1,070)		(199)		(74,220)		75,489		—
Segment Liabilities and Equity	$	152,989	$	16,217	$	9,627	$	—	$	178,833

(a) Includes amounts in held for sale accounts related to the Commercial Renewables Disposal Groups.

ELECTRIC UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING SEGMENT INCOME

(Unaudited)


	Three Months Ended March 31, 2023
(In millions)	Duke Energy Carolinas		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio(a)		Duke Energy Indiana		Eliminations/ Other		Electric Utilities and Infrastructure



Operating Revenues	$	1,934	$	1,533	$	1,510	$	474	$	975	$	(28)	$	6,398
Operating Expenses
Fuel used in electric generation and purchased power	623		545		646		176		449		(43)		2,396
Operation, maintenance and other	433		347		211		91		183		4		1,269
Depreciation and amortization	366		315		190		64		158		3		1,096
Property and other taxes	95		48		120		66		18		1		348
Impairment of assets and other charges	2		4		1		—		—		—		7
Total operating expenses	1,519		1,259		1,168		397		808		(35)		5,116
Gains on Sales of Other Assets and Other, net	—		—		1		—		—		—		1
Operating Income	415		274		343		77		167		7		1,283
Other Income and Expenses, net(b)	59		31		31		6		14		(11)		130
Interest Expense	160		102		115		25		52		(2)		452
Income Before Income Taxes	314		203		259		58		129		(2)		961
Income Tax Expense	37		30		51		9		22		—		149
Net Income (Loss)	277		173		208		49		107		(2)		812
Less: Income Attributable to Noncontrolling Interest(c)	—		—		—		—		—		21		21
Segment Income Attributable to Duke Energy Corporation	$	277	$	173	$	208	$	49	$	107	$	(23)	$	791

(a) Includes results of the wholly owned subsidiary, Duke Energy Kentucky.

(b) Includes an equity component of allowance for funds used during construction of $24 million for Duke Energy Carolinas, $13 million for Duke Energy Progress, $3 million for Duke Energy Florida and $1 million for Duke Energy Indiana.

ELECTRIC UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS – ASSETS

(Unaudited)


	March 31, 2023
(In millions)	Duke Energy Carolinas		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio(a)		Duke Energy Indiana		Eliminations/ Adjustments(b)		Electric Utilities and Infrastructure
Current Assets
Cash and cash equivalents	$	24	$	50	$	26	$	18	$	11	$	—	$	129

Receivables, net	286		159		154		36		90		10		735
Receivables of variable interest entities, net	782		654		448		—		—		751		2,635
Receivables from affiliated companies	181		26		3		199		228		(461)		176
Notes receivable from affiliated companies	—		160		—		168		—		(220)		108
Inventory	1,303		1,082		630		143		560		—		3,718

Regulatory assets	1,311		764		784		22		91		291		3,263
Other	62		57		66		7		64		(4)		252
Total current assets	3,949		2,952		2,111		593		1,044		367		11,016
Property, Plant and Equipment
Cost	55,422		39,396		26,448		8,266		18,295		190		148,017
Accumulated depreciation and amortization	(19,083)		(14,452)		(6,552)		(2,258)		(6,136)		11		(48,470)
Facilities to be retired, net	—		—		—		—		—		—		—
Net property, plant and equipment	36,339		24,944		19,896		6,008		12,159		201		99,547
Other Noncurrent Assets
Goodwill	—		—		—		596		—		16,783		17,379
Regulatory assets	4,309		4,817		2,605		318		903		460		13,412
Nuclear decommissioning trust funds	5,076		3,640		408		—		—		—		9,124
Operating lease right-of-use assets, net	75		356		247		17		48		1		744
Investments in equity method unconsolidated affiliates	—		—		1		—		—		99		100
Investment in consolidated subsidiaries	55		13		3		310		1		210		592

Other	999		658		392		57		265		(226)		2,145
Total other noncurrent assets	10,514		9,484		3,656		1,298		1,217		17,327		43,496
Total Assets	50,802		37,380		25,663		7,899		14,420		17,895		154,059
Segment reclassifications, intercompany balances and other	(263)		(303)		(26)		(346)		192		(324)		(1,070)
Reportable Segment Assets	$	50,539	$	37,077	$	25,637	$	7,553	$	14,612	$	17,571	$	152,989

(a) Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.

(b) Includes the elimination of intercompany balances, purchase accounting adjustments, restricted receivables related to Cinergy Receivables Company and Commercial Transmission and Duke Energy Indiana Holdco, LLC balances.

ELECTRIC UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS – LIABILITIES AND EQUITY

(Unaudited)


	March 31, 2023
(In millions)	Duke Energy Carolinas		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio(a)		Duke Energy Indiana		Eliminations/ Adjustments(b)		Electric Utilities and Infrastructure
Current Liabilities
Accounts payable	$	872	$	511	$	616	$	219	$	247	$	3	$	2,468
Accounts payable to affiliated companies	236		252		110		22		60		51		731
Notes payable to affiliated companies	1,153		—		886		50		204		(179)		2,114

Taxes accrued	111		56		132		180		106		(12)		573
Interest accrued	142		90		106		29		59		—		426
Current maturities of long-term debt	18		370		330		310		3		(155)		876

Asset retirement obligations	249		272		1		14		197		(1)		732
Regulatory liabilities	418		293		180		39		207		1		1,138
Other	572		413		319		63		145		(1)		1,511
Total current liabilities	3,771		2,257		2,680		926		1,228		(293)		10,569
Long-Term Debt	14,788		11,527		9,353		2,862		4,350		1,135		44,015
Long-Term Debt Payable to Affiliated Companies	300		150		—		18		150		—		618
Other Noncurrent Liabilities
Deferred income taxes	4,316		2,542		2,813		809		1,313		43		11,836
Asset retirement obligations	5,148		5,552		346		82		741		33		11,902
Regulatory liabilities	5,817		4,178		618		271		1,517		(16)		12,385
Operating lease liabilities	80		320		201		17		46		1		665
Accrued pension and other post-retirement benefit costs	35		158		110		68		123		(194)		300
Investment tax credits	299		129		233		3		186		1		851

Other	534		89		78		53		32		(18)		768
Total other noncurrent liabilities	16,229		12,968		4,399		1,303		3,958		(150)		38,707



Equity
Total Duke Energy Corporation stockholders equity	15,714		10,478		9,231		2,790		4,734		16,259		59,206
Noncontrolling interests(c)	—		—		—		—		—		944		944
Total equity	15,714		10,478		9,231		2,790		4,734		17,203		60,150
Total Liabilities and Equity	50,802		37,380		25,663		7,899		14,420		17,895		154,059
Segment reclassifications, intercompany balances and other	(263)		(303)		(26)		(346)		192		(324)		(1,070)
Reportable Segment Liabilities and Equity	$	50,539	$	37,077	$	25,637	$	7,553	$	14,612	$	17,571	$	152,989

(a) Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.

(b) Includes the elimination of intercompany balances, purchase accounting adjustments and Commercial Transmission and Duke Energy Indiana Holdco, LLC balances.

GAS UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING SEGMENT INCOME

(Unaudited)


	Three Months Ended March 31, 2023
(In millions)	Duke Energy Ohio(a)		Piedmont Natural Gas LDC		Midstream Pipelines and Storage(b)		Eliminations/ Adjustments		Gas Utilities and Infrastructure



Operating Revenues	$	235	$	675	$	—	$	1	$	911
Operating Expenses
Cost of natural gas	92		206		—		—		298
Operation, maintenance and other	30		88		1		—		119
Depreciation and amortization	27		57		—		1		85
Property and other taxes	14		16		—		1		31
Impairment of assets and other charges	—		1		—		—		1
Total operating expenses	163		368		1		2		534

Operating Income (Loss)	72		307		(1)		(1)		377
Other Income and Expenses, net
Equity in earnings of unconsolidated affiliates	—		—		6		—		6
Other income and expenses, net	3		15		—		(1)		17
Other Income and Expenses, net	3		15		6		(1)		23
Interest Expense	11		40		—		(1)		50
Income (Loss) Before Income Taxes	64		282		5		(1)		350
Income Tax Expense	12		50		1		—		63
Segment Income	$	52	$	232	$	4	$	(1)	$	287

(a) Includes results of the wholly owned subsidiary, Duke Energy Kentucky.

(b) Includes earnings from investments in Sabal Trail and Cardinal pipelines, as well as Hardy and Pine Needle storage facilities.

GAS UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS – ASSETS

(Unaudited)


	March 31, 2023
(In millions)	Duke Energy Ohio(a)		Piedmont Natural Gas LDC		Midstream Pipelines and Storage		Eliminations/ Adjustments(b)		Gas Utilities and Infrastructure
Current Assets
Cash and cash equivalents	$	8	$	—	$	4	$	(1)	$	11

Receivables, net	38		245		—		—		283

Receivables from affiliated companies	59		86		80		(81)		144
Notes receivable from affiliated companies	93		—		—		(9)		84
Inventory	14		99		—		—		113

Regulatory assets	16		121		—		—		137
Other	14		8		4		1		27
Total current assets	242		559		88		(90)		799
Property, Plant and Equipment
Cost	4,277		11,101		86		(1)		15,463
Accumulated depreciation and amortization	(1,024)		(2,136)		—		1		(3,159)
Facilities to be retired, net	—		8		—		—		8
Net property, plant and equipment	3,253		8,973		86		—		12,312
Other Noncurrent Assets
Goodwill	324		49		—		1,551		1,924
Regulatory assets	322		389		—		93		804
Operating lease right-of-use assets, net	—		3		—		—		3
Investments in equity method unconsolidated affiliates	—		—		238		5		243
Investment in consolidated subsidiaries	—		—		—		5		5

Other	18		279		30		(1)		326
Total other noncurrent assets	664		720		268		1,653		3,305
Total Assets	4,159		10,252		442		1,563		16,416
Segment reclassifications, intercompany balances and other	(118)		(88)		(80)		87		(199)
Reportable Segment Assets	$	4,041	$	10,164	$	362	$	1,650	$	16,217

(a) Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.

(b) Includes the elimination of intercompany balances and purchase accounting adjustments.

GAS UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS – LIABILITIES AND EQUITY

(Unaudited)


	March 31, 2023
(In millions)	Duke Energy Ohio(a)		Piedmont Natural Gas LDC		Midstream Pipelines and Storage		Eliminations/ Adjustments(b)		Gas Utilities and Infrastructure
Current Liabilities
Accounts payable	$	64	$	191	$	12	$	—	$	267
Accounts payable to affiliated companies	12		73		36		(82)		39
Notes payable to affiliated companies	25		343		—		(9)		359

Taxes accrued	37		59		(6)		—		90
Interest accrued	3		43		—		—		46
Current maturities of long-term debt	165		45		—		1		211


Regulatory liabilities	23		122		—		—		145
Other	2		58		53		(1)		112
Total current liabilities	331		934		95		(91)		1,269
Long-Term Debt	629		3,319		66		79		4,093
Long-Term Debt Payable to Affiliated Companies	7		—		—		—		7
Other Noncurrent Liabilities
Deferred income taxes	335		882		20		1		1,238
Asset retirement obligations	57		27		—		—		84
Regulatory liabilities	259		1,016		—		13		1,288
Operating lease liabilities	—		12		—		—		12
Accrued pension and other post-retirement benefit costs	23		7		—		—		30
Investment tax credits	—		1		—		—		1

Other	42		169		50		—		261
Total other noncurrent liabilities	716		2,114		70		14		2,914
Equity
Total Duke Energy Corporation stockholders' equity	2,476		3,885		203		1,561		8,125
Noncontrolling interests	—		—		8		—		8
Total equity	2,476		3,885		211		1,561		8,133
Total Liabilities and Equity	4,159		10,252		442		1,563		16,416
Segment reclassifications, intercompany balances and other	(118)		(88)		(80)		87		(199)
Reportable Segment Liabilities and Equity	$	4,041	$	10,164	$	362	$	1,650	$	16,217

(a) Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.

(b) Includes the elimination of intercompany balances and purchase accounting adjustments.


Electric Utilities and Infrastructure
Quarterly Highlights
March 2023

		Three Months Ended March 31,
			2023	2022	% Inc. (Dec.)		% Inc. (Dec.) Weather Normal(b)
Gigawatt-hour (GWh) Sales(a)
	Residential		21,868	23,029	(5.0	%)	(3.4	%)
	General Service		17,765	18,053	(1.6	%)	(3.2	%)
	Industrial		11,846	12,501	(5.2	%)	(7.4	%)
	Other Energy Sales		153	137	11.7	%	n/a
	Unbilled Sales		(2,562)	(107)	(2,294.4	%)	n/a
	Total Retail Sales		49,070	53,613	(8.5	%)	(4.1	%)
	Wholesale and Other		9,176	10,754	(14.7	%)
	Total Consolidated Electric Sales – Electric Utilities and Infrastructure		58,246	64,367	(9.5	%)

Average Number of Customers (Electric)
	Residential		7,199,420	7,079,647	1.7	%
	General Service		1,036,096	1,030,261	0.6	%
	Industrial		16,265	16,390	(0.8	%)
	Other Energy Sales		24,228	24,423	(0.8	%)
	Total Retail Customers		8,276,009	8,150,721	1.5	%
	Wholesale and Other		46	39	17.9	%
	Total Average Number of Customers – Electric Utilities and Infrastructure		8,276,055	8,150,760	1.5	%

Sources of Electric Energy (GWh)
	Generated – Net Output(c)
	Coal		4,080	9,742	(58.1	%)
	Nuclear		17,727	22,278	(20.4	%)
	Hydro		758	590	28.5	%
	Natural Gas and Oil		20,332	22,202	(8.4	%)
	Renewable Energy		559	428	30.6	%
	Total Generation(d)		43,456	55,240	(21.3	%)
	Purchased Power and Net Interchange(e)		14,966	14,847	0.8	%
	Total Sources of Energy		58,422	70,087	(16.6	%)
	Less: Line Loss and Other		176	5,720	(96.9	%)
	Total GWh Sources		58,246	64,367	(9.5	%)

Owned Megawatt (MW) Capacity(c)
	Summer		50,111	49,671
	Winter		53,154	53,001
Nuclear Capacity Factor (%)(f)			94	96

(a) Except as indicated in footnote (b), 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.

(b) Represents weather-normal total retail calendar sales (i.e., billed and unbilled sales).

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

(e) Purchased power includes renewable energy purchases.

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


Duke Energy Carolinas
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2023

		Three Months Ended March 31,
			2023		2022		% Inc. (Dec.)		% Inc. (Dec.) Weather Normal(b)
GWh Sales(a)
	Residential		7,708		8,057		(4.3	%)
	General Service		6,899		6,846		0.8	%
	Industrial		4,710		4,983		(5.5	%)
	Other Energy Sales		71		77		(7.8	%)
	Unbilled Sales		(955)		235		(506.4	%)
	Total Retail Sales		18,433		20,198		(8.7	%)	(3.9	%)
	Wholesale and Other		2,486		2,351		5.7	%
	Total Consolidated Electric Sales – Duke Energy Carolinas		20,919		22,549		(7.2	%)

Average Number of Customers
	Residential		2,407,382		2,363,649		1.9	%
	General Service		399,791		398,003		0.4	%
	Industrial		6,095		6,058		0.6	%
	Other Energy Sales		11,226		11,246		(0.2	%)
	Total Retail Customers		2,824,494		2,778,956		1.6	%
	Wholesale and Other		23		17		35.3	%
	Total Average Number of Customers – Duke Energy Carolinas		2,824,517		2,778,973		1.6	%

Sources of Electric Energy (GWh)
	Generated – Net Output(c)
	Coal		1,379		2,388		(42.3	%)
	Nuclear		10,596		15,258		(30.6	%)
	Hydro		480		338		42.0	%
	Natural Gas and Oil		6,652		6,239		6.6	%
	Renewable Energy		68		94		(27.7	%)
	Total Generation(d)		19,175		24,317		(21.1	%)
	Purchased Power and Net Interchange(e)		2,918		3,006		(2.9	%)
	Total Sources of Energy		22,093		27,323		(19.1	%)
	Less: Line Loss and Other		1,174		4,774		(75.4	%)
	Total GWh Sources		20,919		22,549		(7.2	%)

Owned MW Capacity(c)
	Summer		19,620		19,489
	Winter		20,439		20,347
Nuclear Capacity Factor (%)(f)			95		98

Heating and Cooling Degree Days
	Actual
	Heating Degree Days		1,252		1,613		(22.4	%)
	Cooling Degree Days		16		10		60.0	%

	Variance from Normal
	Heating Degree Days		(22.4	%)	(6.1	%)
	Cooling Degree Days		55.1	%	42.5	%

(b) Represents weather-normal total retail calendar sales (i.e., billed and unbilled sales).

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

(e) Purchased power includes renewable energy purchases.

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


Duke Energy Progress
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2023

		Three Months Ended March 31,
			2023		2022		% Inc. (Dec.)		% Inc. (Dec.) Weather Normal(b)
GWh Sales(a)
	Residential		4,846		5,233		(7.4	%)
	General Service		3,439		3,796		(9.4	%)
	Industrial		2,351		3,134		(25.0	%)
	Other Energy Sales		22		12		83.3	%
	Unbilled Sales		(732)		(614)		(19.2	%)
	Total Retail Sales		9,926		11,561		(14.1	%)	(7.8	%)
	Wholesale and Other		5,419		6,408		(15.4	%)
	Total Consolidated Electric Sales – Duke Energy Progress		15,345		17,969		(14.6	%)

Average Number of Customers
	Residential		1,451,398		1,426,389		1.8	%
	General Service		247,775		246,149		0.7	%
	Industrial		3,310		3,336		(0.8	%)
	Other Energy Sales		2,519		2,569		(1.9	%)
	Total Retail Customers		1,705,002		1,678,443		1.6	%
	Wholesale and Other		8		8		—	%
	Total Average Number of Customers – Duke Energy Progress		1,705,010		1,678,451		1.6	%

Sources of Electric Energy (GWh)
	Generated – Net Output(c)
	Coal		748		1,772		(57.8	%)
	Nuclear		7,131		7,020		1.6	%
	Hydro		254		225		12.9	%
	Natural Gas and Oil		5,726		6,748		(15.1	%)
	Renewable Energy		55		52		5.8	%
	Total Generation(d)		13,914		15,817		(12.0	%)
	Purchased Power and Net Interchange(e)		1,922		2,090		(8.0	%)
	Total Sources of Energy		15,836		17,907		(11.6	%)
	Less: Line Loss and Other		491		(62)		891.9	%
	Total GWh Sources		15,345		17,969		(14.6	%)

Owned MW Capacity(c)
	Summer		12,519		12,464
	Winter		13,618		13,605
Nuclear Capacity Factor (%)(f)			92		91

Heating and Cooling Degree Days
	Actual
	Heating Degree Days		1,063		1,453		(26.8	%)
	Cooling Degree Days		32		28		14.3	%

	Variance from Normal
	Heating Degree Days		(26.9	%)	(8.3	%)
	Cooling Degree Days		11.7	%	143.9	%

(b) Represents weather-normal total retail calendar sales (i.e., billed and unbilled sales).

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

(e) Purchased power includes renewable energy purchases.

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


Duke Energy Florida
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2023

		Three Months Ended March 31,
			2023		2022		% Inc. (Dec.)		% Inc. (Dec.) Weather Normal(b)
GWh Sales(a)
	Residential		4,493		4,527		(0.8	%)
	General Service		3,407		3,345		1.9	%
	Industrial		820		805		1.9	%
	Other Energy Sales		8		9		(11.1	%)
	Unbilled Sales		(139)		446		(131.2	%)
	Total Retail Sales		8,589		9,132		(5.9	%)	(4.7	%)
	Wholesale and Other		401		770		(47.9	%)
	Total Electric Sales – Duke Energy Florida		8,990		9,902		(9.2	%)

Average Number of Customers
	Residential		1,740,847		1,711,431		1.7	%
	General Service		208,644		206,990		0.8	%
	Industrial		1,812		1,901		(4.7	%)
	Other Energy Sales		3,704		3,762		(1.5	%)
	Total Retail Customers		1,955,007		1,924,084		1.6	%
	Wholesale and Other		10		10		—	%
	Total Average Number of Customers – Duke Energy Florida		1,955,017		1,924,094		1.6	%

Sources of Electric Energy (GWh)
	Generated – Net Output(c)
	Coal		508		823		(38.3	%)


	Natural Gas and Oil		7,641		7,964		(4.1	%)
	Renewable Energy		434		279		55.6	%
	Total Generation(d)		8,583		9,066		(5.3	%)
	Purchased Power and Net Interchange(e)		714		605		18.0	%
	Total Sources of Energy		9,297		9,671		(3.9	%)
	Less: Line Loss and Other		307		(231)		232.9	%
	Total GWh Sources		8,990		9,902		(9.2	%)

Owned MW Capacity(c)
	Summer		10,549		10,296
	Winter		11,152		11,104

Heating and Cooling Degree Days
	Actual
	Heating Degree Days		178		297		(40.1	%)
	Cooling Degree Days		397		293		35.5	%

	Variance from Normal
	Heating Degree Days		(40.2	%)	(18.6	%)
	Cooling Degree Days		35.4	%	46.0	%

(b) Represents weather-normal total retail calendar sales (i.e., billed and unbilled sales).

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

(e) Purchased power includes renewable energy purchases.


Duke Energy Ohio
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2023

		Three Months Ended March 31,
			2023		2022		% Inc. (Dec.)		% Inc. (Dec.) Weather Normal(b)
GWh Sales(a)
	Residential		2,327		2,461		(5.4	%)
	General Service		2,111		2,151		(1.9	%)
	Industrial		1,384		1,296		6.8	%
	Other Energy Sales		35		26		34.6	%
	Unbilled Sales		(250)		(103)		(142.7	%)
	Total Retail Sales		5,607		5,831		(3.8	%)	0.5	%
	Wholesale and Other		35		166		(78.9	%)
	Total Electric Sales – Duke Energy Ohio		5,642		5,997		(5.9	%)

Average Number of Customers
	Residential		822,107		810,878		1.4	%
	General Service		74,570		74,385		0.2	%
	Industrial		2,395		2,431		(1.5	%)
	Other Energy Sales		2,836		2,843		(0.2	%)
	Total Retail Customers		901,908		890,537		1.3	%
	Wholesale and Other		1		1		—	%
	Total Average Number of Customers – Duke Energy Ohio		901,909		890,538		1.3	%

Sources of Electric Energy (GWh)
	Generated – Net Output(c)
	Coal		456		898		(49.2	%)


	Natural Gas and Oil		11		5		120.0	%

	Total Generation(d)		467		903		(48.3	%)
	Purchased Power and Net Interchange(e)		5,755		5,829		(1.3	%)
	Total Sources of Energy		6,222		6,732		(7.6	%)
	Less: Line Loss and Other		580		735		(21.1	%)
	Total GWh Sources		5,642		5,997		(5.9	%)

Owned MW Capacity(c)
	Summer		1,076		1,076
	Winter		1,164		1,164

Heating and Cooling Degree Days
	Actual
	Heating Degree Days		2,097		2,519		(16.8	%)
	Cooling Degree Days		—		—		—	%

	Variance from Normal
	Heating Degree Days		(16.7	%)	(1.7	%)
	Cooling Degree Days		—	%	(100.0	%)

(b) Represents weather-normal total retail calendar sales (i.e., billed and unbilled sales).

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

(e) Purchased power includes renewable energy purchases.


Duke Energy Indiana
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2023

		Three Months Ended March 31,
			2023		2022		% Inc. (Dec.)		% Inc. (Dec.) Weather Normal(b)
GWh Sales(a)
	Residential		2,494		2,751		(9.3	%)
	General Service		1,909		1,915		(0.3	%)
	Industrial		2,581		2,283		13.1	%
	Other Energy Sales		17		13		30.8	%
	Unbilled Sales		(486)		(71)		(584.5	%)
	Total Retail Sales		6,515		6,891		(5.5	%)	(1.3	%)
	Wholesale and Other		835		1,059		(21.2	%)
	Total Electric Sales – Duke Energy Indiana		7,350		7,950		(7.5	%)

Average Number of Customers
	Residential		777,686		767,300		1.4	%
	General Service		105,316		104,734		0.6	%
	Industrial		2,653		2,664		(0.4	%)
	Other Energy Sales		3,943		4,003		(1.5	%)
	Total Retail Customers		889,598		878,701		1.2	%
	Wholesale and Other		4		3		33.3	%
	Total Average Number of Customers – Duke Energy Indiana		889,602		878,704		1.2	%

Sources of Electric Energy (GWh)
	Generated – Net Output(c)
	Coal		989		3,861		(74.4	%)

	Hydro		24		27		(11.1	%)
	Natural Gas and Oil		302		1,246		(75.8	%)
	Renewable Energy		2		3		(33.3	%)
	Total Generation(d)		1,317		5,137		(74.4	%)
	Purchased Power and Net Interchange(e)		3,657		3,317		10.3	%
	Total Sources of Energy		4,974		8,454		(41.2	%)
	Less: Line Loss and Other		(2,376)		504		(571.4	%)
	Total GWh Sources		7,350		7,950		(7.5	%)

Owned MW Capacity(c)
	Summer		6,347		6,346
	Winter		6,781		6,781

Heating and Cooling Degree Days
	Actual
	Heating Degree Days		2,299		2,798		(17.8	%)
	Cooling Degree Days		—		—		—	%

	Variance from Normal
	Heating Degree Days		(17.8	%)	1.8	%
	Cooling Degree Days		—	%	(100.0	%)

(b) Represents weather-normal total retail calendar sales (i.e., billed and unbilled sales).

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

(e) Purchased power includes renewable energy purchases.


Gas Utilities and Infrastructure
Quarterly Highlights
March 2023

		Three Months Ended March 31,
			2023	2022	% Inc. (Dec.)
Total Sales
	Piedmont Natural Gas Local Distribution Company (LDC) throughput (dekatherms)(a)		161,463,793	180,187,101	(10.4	%)
	Duke Energy Midwest LDC throughput (Mcf)		32,001,725	37,246,072	(14.1	%)

Average Number of Customers – Piedmont Natural Gas
	Residential		1,055,702	1,039,353	1.6	%
	Commercial		107,487	106,865	0.6	%
	Industrial		954	958	(0.4	%)
	Power Generation		19	19	—	%
	Total Average Number of Gas Customers – Piedmont Natural Gas		1,164,162	1,147,195	1.5	%

Average Number of Customers – Duke Energy Midwest
	Residential		519,502	515,357	0.8	%
	General Service		35,356	35,169	0.5	%
	Industrial		1,715	1,629	5.3	%
	Other		115	133	(13.5	%)
	Total Average Number of Gas Customers – Duke Energy Midwest		556,688	552,288	0.8	%

(a) Piedmont has a margin decoupling mechanism in North Carolina, weather normalization mechanisms in South Carolina and Tennessee and fixed-price contracts with most power generation customers that significantly eliminate the impact of throughput changes on earnings. Duke Energy Ohio's rate design also serves to offset this impact.

Duke Energy (DUK) 8-KDuke Energy reports first-quarter 2023 financial results