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DUK · Duke Energy CORP

23 filings

10-K

DUK 10-K Annual Reports

Duke Energy CORP - 23 annual reports

Filing record · 2016–202610-K1310-Q338-K210

2025
Duke Energy CORP Annual Report, Year Ended Dec 31, 2025
Duke Energy's FY2025 10-K shows a company in a heavy investment cycle, with GAAP Reported EPS of $6.31 (up from $5.71) and adjusted EPS of $6.31 (up from $5.90, above the midpoint of guidance). Net income available to common stockholders rose to $4.91 billion, driven by recovery of infrastructure investment, customer growth, and rate case outcomes (about $951 million of higher pricing from jurisdictional rate cases in EU&I). Operating revenues grew to $32.2 billion from $30.4 billion, though operation, maintenance and other expense rose sharply, and interest expense climbed to $3.6 billion. The balance sheet and funding plan are the central investor focus. Management expects to deploy $200–220 billion of regulated capital over the next decade, with projected capital expenditures of $17.75 billion in 2026 rising to $21.2 billion in 2028. Operating cash flow was flat at $12.3 billion against $14.3 billion of investing outflows, so external financing remains essential. Management plans to fund growth partly through the $6 billion Brookfield minority investment in Duke Energy Florida (first closing of $2.8 billion expected March 2026), the $2.48 billion sale of Piedmont's Tennessee business (expected March 31, 2026), $9 billion of 2026 debt issuance, and $10 billion of common equity over 2027–2030. Key risks include regulatory outcomes (multiple pending North Carolina rate cases requesting roughly $1.0 billion and $729 million, a pending utility combination of Duke Energy Carolinas and Duke Energy Progress), coal ash and EPA rule uncertainty, data-center-driven load forecasts, and litigation (including the Carrboro climate suit, which was dismissed in February 2026). Credit ratings remain investment grade (S&P BBB+ at the parent, Moody's Baa2), and the dividend was raised about 2%, marking the 99th consecutive year of cash dividends.
Feb 26, 2026
2024
Duke Energy CORP Annual Report, Year Ended Dec 31, 2024
Duke Energy's 2024 10-K shows a company in heavy investment mode, with GAAP reported EPS of $5.71 (up from $3.54) and adjusted EPS of $5.90 (up from $5.56), within its guidance framework. The GAAP increase is flattered by the absence of the prior year's large Commercial Renewables sale impairments; the underlying growth came from rate increases and riders, better weather, and higher sales volumes, partly offset by higher interest expense, depreciation, storm costs, and a higher effective tax rate. Net income available to common stockholders rose to $4.40 billion from $2.74 billion. The dominant investor issues are the 2024 hurricane season (Debby, Helene, and Milton, with estimated net storm costs of about $2.8 billion) and the capital plan. Management expects to deploy $190 to $200 billion over the next decade into regulated businesses, with capital expenditures of $14.9 billion in 2025 rising to $16.6 billion in 2027. Funding this requires substantial new issuance, including planned debt of $12.2 billion and $6.5 billion of common equity over 2025-2029. Capital expenditures already exceed operating cash flow, which was $12.3 billion, so balance sheet leverage and credit ratings (Baa2/BBB+ at the parent) are key watch points. Regulatory and environmental exposure remains significant. The EPA's April 2024 coal ash (2024 CCR Rule) and Section 111 greenhouse gas rules expand compliance obligations, with coal ash closure estimated at $8 to $9 billion, of which about $4.4 billion has been spent. Asset retirement obligations rose to $10.0 billion. Duke is challenging both rules, but the EPA has asked the courts for abeyance, which may reduce near-term uncertainty. Management expects regulated recovery of most costs, though the filing acknowledges no guarantee. Goodwill of $19.3 billion carries limited headroom at Duke Energy Ohio's GU&I unit. CEO Lynn Good is retiring effective April 1, 2025, with Harry Sideris succeeding her as CEO and President.
Feb 27, 2025
2023
Duke Energy CORP Annual Report, Year Ended Dec 31, 2023
Duke Energy's FY2023 10-K shows a company in transition to a fully regulated utility. GAAP reported EPS was $3.54 (vs. $3.17 in 2022), and adjusted EPS rose to $5.56 (vs. $5.27), driven by rider growth, favorable rate case outcomes, lower O&M, and lower taxes, partially offset by higher interest and depreciation, unfavorable weather, and lower volumes. Net income available to common stockholders was $2,735 million. The company closed the sale of its Commercial Renewables utility-scale solar/wind and distributed generation groups in October 2023, with a $1.7 billion pretax impairment on the disposal groups driving a $1.46 billion loss from discontinued operations. Operating revenue was $29.1 billion, and operating cash flow rose to $9.9 billion from $5.9 billion. The investment story centers on a capital plan of roughly $12.4 billion in 2024, $14.2 billion in 2025, and $14.8 billion in 2026, with management expecting $170 to $180 billion of regulated capital over the next decade. Growth is supported by recent constructive North Carolina rate orders (including a 10.1% ROE for Duke Energy Carolinas and a 9.8% ROE for Duke Energy Progress), a new multiyear rate plan framework under HB 951, and rising load forecasts from economic development. Balance sheet risk remains meaningful: total debt is about $79.5 billion, the company plans to issue roughly $6.9 billion of debt in 2024, and it continues to dividend-fund around $3.2 billion annually. Key overhangs include coal ash closure costs estimated at $7 to $8 billion, pending appeals of the NCUC order, decommissioning and license renewal uncertainty, and the timing of coal retirements and the 2050 net-zero goal. Investors should weigh the earnings and dividend growth profile (targeting a 60% to 70% payout on adjusted EPS, with roughly 2% annual dividend increases) against heavy capital needs, rising interest expense (up to $3.0 billion), and dependence on timely regulatory recovery.
Feb 23, 2024
2022
Duke Energy CORP Annual Report, Year Ended Dec 31, 2022
Duke Energy's FY2022 10-K shows a company in the middle of a major clean energy transition, with a headline GAAP result depressed by a one-time charge on its planned exit from Commercial Renewables. Reported net income available to common stockholders was $2,444 million ($3.17 per share), down from $3,802 million ($4.94) in 2021, primarily because of an estimated $1.3 billion after-tax loss from discontinued operations tied to the Commercial Renewables Disposal Groups. Management's adjusted EPS, which strips out special items, rose to $5.27 from $4.99. Note that the 10-K as filed shows Duke Energy Indiana's $175 million coal ash charge already included, and the reported figure of $2,444 million reflects that revision. Operationally, Electric Utilities and Infrastructure (EU&I) drove results, with segment income rising to $3,929 million on higher retail volumes and favorable weather, while Gas Utilities and Infrastructure income increased to $468 million on margin growth. Operating cash flow fell to $5.9 billion from $8.3 billion, largely because of roughly $2.6 billion of under-collected deferred fuel costs, which Duke is recovering through rate proceedings and which is funded with increased borrowing. Duke plans to invest over $145 billion in its regulated businesses over the next decade, with 2023 projected capital expenditures of about $12.2 billion. The key investor watch items are regulatory recovery and financing needs. Pending rate cases include a Carolinas filing requesting $823 million (about 15.7%) and a Progress North Carolina filing requesting $615 million. Coal ash closure costs, a $175 million Indiana charge, and litigation over Texas Winter Storm Uri add uncertainty. The dividend was paid for the 96th consecutive year, and the company targets a 65% to 75% payout ratio on adjusted EPS.
Feb 27, 2023
2021
Duke Energy CORP Annual Report, Year Ended Dec 31, 2021
Duke Energy's 2021 Form 10-K (filed February 24, 2022) reports GAAP Reported EPS of $4.94 for 2021, up from $1.72 in 2020, while adjusted EPS rose to $5.24 from $5.12. The GAAP improvement mainly reflects the absence of 2020's large non-recurring charges for the cancelled Atlantic Coast Pipeline and the North Carolina coal ash settlement, partly offset by 2021 workplace realignment costs and regulatory settlement impairments. Net income available to common stockholders was $3.8 billion. Growth drivers were rate case outcomes in Indiana and North Carolina, higher retail volumes, and grid investment riders, partially offset by higher O&M and share dilution from equity issuance. The company reaffirmed a strategy centered on clean energy transition: net-zero carbon emissions from electricity generation by 2050, at least a 50% reduction by 2030, and coal exit by 2035 (subject to approvals). Management plans a $63 billion enterprise capital and investment plan through 2026, with over 80% directed to grid and clean energy investments. Passage of North Carolina House Bill 951 provides a framework for performance-based regulation and multiyear rate plans, which management expects to improve earnings and cash flow visibility. The company also dividends a 95th consecutive year of cash payments, with a 65%-75% adjusted-EPS payout target. Balance sheet and risk considerations remain significant. Total debt was about $67 billion, with 2022 issuance planned at $9.5 billion. Goodwill of $19.3 billion and regulatory assets of $14.6 billion are large, and coal ash closure costs total roughly $8-9 billion, with recovery subject to ongoing regulatory and legal outcomes. The GIC minority investment in Duke Energy Indiana ($2 billion total, 19.9%) is partly complete, with the second closing of about $1.025 billion expected by January 2023. Ongoing risks include nuclear license renewals, the EPA's coal ash interpretation letters, Texas Winter Storm Uri litigation, and possible impairments in Commercial Renewables.
Feb 24, 2022
2020
Duke Energy CORP Annual Report, Year Ended Dec 31, 2020
Duke Energy's FY2020 10-K (filed February 25, 2021) reports GAAP reported earnings of $1.270 billion, or $1.72 per share, down sharply from $3.707 billion ($5.06) in 2019, while adjusted EPS rose modestly to $5.12 from $5.06. The GAAP decline is driven by two special items: a roughly $2.1 billion pretax charge to cancel the Atlantic Coast Pipeline (ACP) in Gas Utilities and Infrastructure, and coal ash regulatory settlement charges in Electric Utilities and Infrastructure (the CCR Settlement Agreement with NCUC, which requires an impairment charge of roughly $948 million in that segment). Revenue fell to $23.9 billion from $25.1 billion, reflecting lower sales volumes from COVID-19, mild weather and lower fuel pass-throughs. Management reaffirmed its dividend growth record (94th consecutive year of cash dividends) and raised its long-term adjusted EPS growth target to 5% to 7% through 2025, supported by a $59 billion capital plan for 2021-2025. Near-term financing actions include a planned sale of a 19.9% minority interest in Duke Energy Indiana to GIC for roughly $2 billion. Balance-sheet risk increased: in January 2021 S&P downgraded Duke's senior unsecured rating from A- to BBB+, and Moody's placed ratings on review for downgrade in February 2021. For investors, the key tension is between a stable, regulated earnings base and rising execution and credit risk: coal ash cost recovery, the ACP write-off, the pending Indiana minority sale and a February 2021 Texas winter storm that is expected to materially affect Commercial Renewables results in 2021.
Feb 25, 2021
2019
Duke Energy CORP Annual Report, Year Ended Dec 31, 2019
Duke Energy's FY2019 10-K (filed February 20, 2020) shows a year of improved reported earnings and continued heavy capital investment. GAAP Reported EPS rose to $5.06 from $3.76, and adjusted diluted EPS was $5.06 versus $4.72 in 2018. Revenue grew to $25.1 billion from $24.5 billion, and operating income rose to $5.7 billion from $4.7 billion. The improvement was driven mainly by favorable rate case outcomes in Electric Utilities and Infrastructure, improved margins and ACP equity earnings in Gas Utilities and Infrastructure, and growth at Commercial Renewables. Net income available to common stockholders was $3.7 billion. The balance sheet and funding picture is more stretched. Total assets reached $158.8 billion, and long-term debt rose to $55.0 billion. Management plans projected capital and investment expenditures of roughly $11.1 to $11.8 billion per year over 2020 to 2022, and expects to issue about $5.2 billion of debt in 2020. Duke funded this with $2.0 billion of preferred stock, $2.5 billion of forward-sale common equity expected to settle by December 2020, and continued debt issuance. Operating cash flow was $8.2 billion, against investing outflows of $12.0 billion and dividends of $2.7 billion. The company reiterated 4% to 6% EPS growth through 2024 and a 65% to 75% dividend payout target. Key risks flagged in the filing include coal ash closure costs (North Carolina closure estimates now around $8 to $9 billion, with a pending dispute over disallowed coal ash costs in South Carolina), the Atlantic Coast Pipeline (about $8 billion project cost, with adverse court rulings, a Supreme Court hearing, and delayed in-service into 2022), storm cost recovery, and rate case outcomes still pending in North Carolina, Indiana, and Kentucky. Fitch also announced it would withdraw Duke's ratings, while Moody's and S&P kept stable outlooks at Baa1 and A-.
Feb 20, 2020
2018
Duke Energy CORP Annual Report, Year Ended Dec 31, 2018
Duke Energy's 2018 Form 10-K shows a regulated utility company that delivered a solid operating year but posted weaker GAAP results due to a series of special charges. GAAP reported EPS fell to $3.76 from $4.36 in 2017, while adjusted diluted EPS rose to $4.72 from $4.57, driven by favorable weather, improved residential volumes, rate case outcomes in North Carolina, and rider growth. Total operating revenues grew about 4% to $24.5 billion, but operating income declined to $4.7 billion from $5.6 billion, largely because of regulatory and legislative charges, impairments (including Commercial Renewables goodwill and the Constitution pipeline investment), severance, and a loss on the sale of the retired Beckjord plant. The balance sheet is larger and more leveraged as the company funds a heavy capital program. Projected 2019 capital and investment expenditures are $11.1 billion, with roughly $7.5 billion of new debt planned for 2019. Duke raised $2 billion of common equity in 2018 and plans to issue about $500 million per year through 2023. Long-term debt rose to $51.1 billion, and the company targets a 4 to 6 percent EPS growth rate through 2023 and a 65 to 75 percent dividend payout ratio. The dividend was increased about 4 percent to $3.64 per share, marking 92 consecutive years of cash dividends. Key risks for investors include coal ash remediation costs and related litigation, including pending North Carolina Supreme Court appeals of rate orders, the uncertain cost and schedule of the Atlantic Coast Pipeline (now estimated at $7.0 to $7.8 billion after adverse court rulings), storm cost recovery for Hurricanes Florence, Michael and Winter Storm Diego, and the cash-flow effects of federal tax reform, since Duke does not expect to be a significant federal cash taxpayer through at least 2022.
Feb 28, 2019
2017-A
Duke Energy CORP Annual Report (Amendment), Year Ended Dec 31, 2017
Duke Energy's 2017 Form 10-K (filed February 23, 2018) reports a year shaped by the completed portfolio transition: the 2016 Piedmont Natural Gas acquisition and the exit from Latin America. With the transition finished, Duke describes itself as a domestic, regulated energy infrastructure business. GAAP reported EPS rose to $4.36 from $3.11, helped by a $0.14 per-share benefit from the Tax Act and the absence of 2016 disposal losses. Adjusted diluted EPS fell to $4.57 from $4.69, mainly because of unfavorable weather (about $0.26 per share, including Hurricane Irma) and higher financing costs tied to the Piedmont acquisition. The balance sheet and capital plan are the key investor issues. Long-term debt rose to $49.0 billion and total assets reached $137.9 billion. Duke projects roughly $30 billion of Electric Utilities and Infrastructure growth investment and about $7 billion for Gas Utilities over 2018-2022, with total capital expenditures near $11 billion a year in 2018-2019. To strengthen credit metrics, management plans to issue $2 billion of common equity in 2018 and trim capex by about $1 billion over 2018-2022. Moody's revised the outlook on Duke Energy and Piedmont to negative in January 2018 because of tax-reform credit risk, and Fitch's outlook is also negative. The Tax Act (corporate rate cut from 35% to 21%) created a net regulatory liability of about $8.3 billion that is expected to flow back to customers, while Duke expects little federal cash tax through at least 2022. Key risks include coal ash remediation costs and litigation in North Carolina, pending rate cases, the Atlantic Coast Pipeline (cost estimate raised to $6.0-6.5 billion and in-service date targeted for late 2019), and the Constitution Pipeline, where Duke may record an impairment of up to its $81 million carrying value in early 2018 after the FERC ruling. The dividend was raised about 4% to $3.49 per share, marking 91 consecutive years of cash dividends, and the company targets a 70-75% payout ratio with 4-6% EPS growth through its five-year planning horizon.
Feb 23, 2018
2017
Duke Energy CORP Annual Report, Year Ended Dec 31, 2017
Duke Energy's 2017 Form 10-K, filed February 21, 2018, describes a company that completed a multiyear portfolio transition in 2017, operating as a domestic regulated energy infrastructure business after acquiring Piedmont Natural Gas in October 2016 and exiting Latin America in December 2016. Reported GAAP net income attributable to Duke Energy was $3,059 million, or $4.36 per diluted share, versus $3.11 in 2016. Adjusted diluted EPS declined to $4.57 from $4.69, driven mainly by unfavorable weather (including Hurricane Irma), higher financing costs from the Piedmont acquisition, and higher depreciation. Management reaffirmed 4 to 6 percent EPS growth over its five-year planning horizon and a dividend growth expectation of roughly 4 to 6 percent annually through 2022, with a 70 to 75 percent payout target. The filing is dominated by policy and balance-sheet issues. The Tax Cuts and Jobs Act reduced the federal corporate rate from 35 to 21 percent, producing a $112 million net provisional tax benefit at the consolidated level, but the company recorded an $8.3 billion regulatory liability for the revalued deferred taxes that is expected to flow back to customers, and cash taxes are expected to stay low through at least 2022. Moody's moved the outlook for Duke Energy and Piedmont to negative in January 2018. Coal ash remediation remains the largest legal and cost risk, with North Carolina ash basin closure obligations, pending rate cases, and ongoing shareholder and groundwater litigation. Other notable items include a $1.5 billion-plus capital program for 2018 (about $10.95 billion total projected capital spending in 2018), $2 billion of planned 2018 equity issuance, a Constitution Pipeline impairment risk, and cost overruns at the Atlantic Coast Pipeline, now estimated at $6.0 to $6.5 billion. For investors, the key takeaways are steady regulated earnings and a reliable dividend offset by near-term EPS pressure, a heavier capital program funded partly by new equity, a negative rating outlook tied to tax-driven credit metric risk, and continuing exposure to coal ash costs and pipeline project uncertainty.
Feb 21, 2018
2016
Duke Energy CORP Annual Report, Year Ended Dec 31, 2016
Duke Energy's 2016 10-K shows a year of portfolio transformation: the company closed the $5.0 billion acquisition of Piedmont Natural Gas in October 2016 and completed the sale of its Latin American (International Disposal Group) businesses in December 2016 for roughly $1.9 billion in cash proceeds, which were used mainly to reduce holding-company debt. Reported GAAP net income attributable to Duke Energy fell to $2,152 million ($3.11 per diluted share) from $2,816 million ($4.05) in 2015, driven primarily by a $514 million pretax loss on the International sale recorded in discontinued operations and $439 million of pretax Piedmont transaction and integration costs. Management's adjusted diluted EPS rose to $4.69 from $4.54, helped by favorable weather, rider-based pricing and cost control at the regulated electric segment, partly offset by higher storm costs and interest expense. The core regulated electric business (Electric Utilities and Infrastructure, about $3.0 billion of segment income) remains the earnings engine, with operating revenues of $21.4 billion and roughly 49,300 MW of owned generation. Management expects about $30 billion of Electric Utilities and Infrastructure growth investment and about $6 billion of Gas Utilities and Infrastructure investment over the next five years, with total projected capital expenditures of $8.8 billion in 2017 rising to $10.1 billion in 2019. Funding these plans will require continued debt issuance, with the filing projecting $6.5 billion of debt issuances in 2017 and no equity issuance that year. Key risks for investors include coal ash closure costs and related North Carolina litigation, pending regulatory decisions on storm cost recovery (about $140 million from Hurricane Matthew), the outcome of the EPA Clean Power Plan, the Dan River and groundwater-related claims, and credit ratings: Moody's and Fitch carried a negative outlook on Duke Energy Corporation in February 2017, while S&P's outlook was stable. Balance-sheet leverage rose meaningfully, with long-term debt climbing to $45.6 billion from $36.8 billion, and goodwill increased to $19.4 billion following the Piedmont deal.
Feb 24, 2017
2015-A
Duke Energy CORP Annual Report (Amendment), Year Ended Dec 31, 2015
This excerpt from Duke Energy's 2015 Form 10-K (filed April 7, 2016) covers only Part II Item 5, Part III Item 12, and the exhibit index. It does not include the financial statements, MD&A, or the stock price and dividend tables, so it cannot support conclusions about revenue, earnings, cash flow, or leverage. As of January 31, 2016, Duke had 166,231 common stockholders of record. The company reiterated its policy of paying regular cash dividends, while noting that future amounts are not assured and depend on earnings, capital needs, financial condition, and Board declaration. It also disclosed that its operating subsidiaries face restrictions on transferring funds to Duke through dividends or loans, with details in Note 4, "Regulatory Matters." No common shares were repurchased in the fourth quarter of 2015. The equity compensation data shows about 3.46 million securities that could be issued on exercise of outstanding awards, at a weighted-average exercise price of $69.11 on outstanding options. About 9.93 million shares remained available for future grants under the 2015 Long-Term Incentive Plan. Of the total, 211,882 units relate to plans not approved by security holders, which are deferred compensation arrangements. The exhibit index points to material transactions and obligations, including the 2011 Progress Energy merger agreement, an October 2015 agreement with Piedmont Natural Gas (signaling a pending acquisition), a $6 billion five-year credit facility, a 2015 accelerated stock repurchase program, and plea agreements tied to the 2015 Dan River matter. Investors should review the full filing for the financial results and risk disclosures these items relate to.
Apr 7, 2016
2015
Duke Energy CORP Annual Report, Year Ended Dec 31, 2015
Duke Energy's FY2015 10-K shows a company in transition: consolidated operating revenues fell slightly to $23.5 billion (from $23.9 billion), while net income attributable to Duke Energy rose to $2.82 billion ($4.05 diluted EPS) from $1.88 billion ($2.66) in 2014, largely because 2014 included a $929 million pretax write-down on the Midwest generation business and a $373 million international repatriation tax charge. On an adjusted basis, earnings were $3.15 billion ($4.54 per diluted share), down from $3.22 billion ($4.55), as weaker Latin American hydrology, currency moves and lower NMC equity earnings offset better Regulated Utilities pricing and wholesale margins. The company executed several major portfolio moves in 2015: it sold the nonregulated Midwest generation fleet to Dynegy for about $2.8 billion, repurchased $1.5 billion of stock through an accelerated repurchase program, and completed the $1.25 billion purchase of NCEMPA's interests in certain Progress assets. It also agreed in October 2015 to acquire Piedmont Natural Gas for $4.9 billion in cash plus assumed debt of about $1.9 billion, targeting closing by year-end 2016, and on February 18, 2016 announced a process to divest the International Energy segment (carrying value about $2.7 billion), which would likely be dilutive but would reduce the company's risk profile. The key investor watch items are coal ash remediation and related penalties, the Clean Power Plan (now stayed by the Supreme Court), the Piedmont regulatory approvals, the pending International Energy sale, and credit ratings, which carry a Negative outlook at the parent on S&P and Moody's. Capital spending of roughly $8.6 to $8.8 billion is planned for 2016, financed largely with debt, and the dividend is being grown at about 4 percent annually.
Feb 25, 2016
2014
Duke Energy CORP Annual Report, Year Ended Dec 31, 2014
Duke Energy's FY2014 10-K (filed March 2, 2015) reports a year of mixed results: GAAP net income attributable to Duke Energy fell to $1.88 billion ($2.66 per diluted share) from $2.67 billion ($3.76) in 2013, driven primarily by an $849 million after-tax loss on the planned sale of the nonregulated Midwest generation business and a $373 million tax charge from repatriating historical foreign earnings. Excluding these and other special items, adjusted earnings rose to $3.22 billion ($4.55 per diluted share) from $3.08 billion ($4.36), supported by revised retail rates, favorable weather, and higher renewables and PJM capacity results. Revenue increased to $23.9 billion from $22.8 billion, and operating cash flow was $6.6 billion. The pending $2.8 billion sale of the Midwest generation business to Dynegy, expected to close by the end of Q2 2015 pending FERC approval, is central to the capital plan. Management intends to use proceeds for an accelerated share repurchase and debt reduction. Duke also outlined roughly $8 billion of growth initiatives, a 2015 adjusted EPS guidance range of $4.55 to $4.75, and a long-term adjusted earnings growth target of 4% to 6%. Capital expenditures are projected at $7.0 to $7.4 billion for 2015. Investors should weigh the regulatory and legal overhang. The Dan River coal ash release led to February 2015 plea agreements with the USDOJ, involving roughly $102 million in charges, $68 million in fines and restitution, $34 million in community service, and a five-year probation period. Additional civil claims, the Edwardsport IGCC rider proceedings, and the MISO MVP cost matter remain unresolved, and the coal ash closure obligations drove asset retirement obligations up to $8.5 billion from $5.0 billion.
Mar 2, 2015
2013
Duke Energy CORP Annual Report, Year Ended Dec 31, 2013
Duke Energy's 2013 Form 10-K reports a year dominated by the July 2012 Progress Energy merger, which was consolidated for a full year in 2013 and drove a jump in revenue to $24.6 billion (from $19.6 billion) and net income attributable to Duke Energy to $2.67 billion ($3.76 per diluted share, versus $3.07 in 2012). Adjusted earnings rose to $3.07 billion ($4.35 per diluted share), and management guides 2014 adjusted diluted EPS to $4.45-$4.60. Regulated Utilities produced $2.5 billion of segment income and remains the core earnings driver, supported by constructive rate cases in all five general rate proceedings and completion of the $9 billion fleet modernization program, including the Edwardsport IGCC plant and the Sutton combined-cycle plant. The filing also flags several material risks. Duke Energy announced in February 2014 an exit from its nonregulated Midwest generation business, which it expects to reclassify about $3.5 billion of assets as held for sale and record a pretax impairment of $1 billion to $2 billion in the first quarter of 2014. Crystal River Unit 3 was retired after containment delamination, producing a $295 million regulatory asset write-off and a $57 million joint-owner charge. A Dan River ash basin release in February 2014, estimated at 30,000 to 39,000 tons of ash, carries uncertain remediation and penalty exposure, and the company has received federal criminal subpoenas related to the event. Ongoing items include North Carolina Supreme Court appeals of rate cases, possible MVP cost liability at Duke Energy Ohio (a $2.7 billion undiscounted estimate), and the environmental compliance cost estimate of $4.5 to $5.5 billion over ten years. Financially, operating cash flow rose to $6.4 billion, while long-term debt increased to $38.2 billion. The company continued paying dividends of $3.09 per share, a 2% annual growth pace with a stated target payout ratio of 65% to 70% of adjusted EPS. Total capital expenditures for 2014 are projected at $5.8 billion to $6.1 billion, rising to $7.2 billion to $8.2 billion by 2016.
Feb 28, 2014
2012
Duke Energy CORP Annual Report, Year Ended Dec 31, 2012
Duke Energy's 2012 Form 10-K (filed March 1, 2013) reflects a transformational year defined by the July 2, 2012 merger with Progress Energy, which roughly tripled total assets to $113.9 billion (from $62.5 billion) and expanded the regulated share of the business. Reported 2012 net income attributable to Duke Energy was $1.77 billion ($3.07 diluted EPS), up from $1.71 billion ($3.83) in 2011, though the per-share comparison is distorted by the 1-for-3 reverse split and roughly 258 million new shares issued to Progress shareholders. Management's adjusted EPS, which excludes special items and economic-hedge mark-to-market effects, was $4.32 versus $4.38 in 2011, a slight decline attributed to unfavorable weather, higher depreciation, and the Progress share dilution, partly offset by the Progress contribution and rate increases. The filing's central investor issues are capital intensity and regulatory execution. Management projects 2013 capital expenditures of $5.9 to $6.3 billion, with the Edwardsport IGCC plant (cost estimate raised to about $3.15 billion excluding financing costs, versus a rate-recovery cap of $2.595 billion) and Progress's Sutton plant as the remaining major fleet-modernization projects. Edwardsport produced $897 million of cumulative pre-tax charges, and 2012 net income absorbed $628 million of Edwardsport charges and $636 million of merger costs. The most significant new risk is the February 2013 decision to retire Crystal River Unit 3, which leaves $1.637 billion of net investment in regulatory assets, partly offset by a $835 million NEIL insurance settlement. Duke also has four pending rate cases, and the proposed Levy nuclear project's total cost has grown to $19 to $24 billion. The balance sheet has also shifted materially. Long-term debt rose to about $36.4 billion from $18.7 billion, and goodwill of $16.4 billion (mostly from the Progress acquisition) now represents a meaningful share of equity, creating impairment sensitivity. Credit ratings are investment grade, though S&P carries a negative outlook on the Duke Energy Registrants, and the company's cash dividend ($3.03 per share in 2012) was maintained and is expected to continue.
Mar 1, 2013
2011
Duke Energy CORP Annual Report, Year Ended Dec 31, 2011
Duke Energy's FY2011 Form 10-K (filed February 28, 2012) shows a company in the middle of a major transition. Net income attributable to Duke Energy rose 29% to $1,706 million ($1.28 per diluted share), up from $1,320 million ($1.00) in 2010, while Adjusted Earnings (a non-GAAP measure) grew modestly to $1,943 million ($1.46 per share) from $1,882 million ($1.43). The 2010 comparison was depressed by $660 million of Midwest generation impairments, while 2011 included a $222 million pre-tax Edwardsport IGCC impairment and a $79 million emission allowance write-down. Operating revenues grew 2% to $14.5 billion, and cash from operations was $3.7 billion, down from $4.5 billion, largely due to coal inventory build and working capital changes. The dominant forward-looking story is the pending merger with Progress Energy, announced January 2011, which would issue roughly 257 million post-reverse-split shares (after a 1-for-3 reverse split) and assume about $15 billion of Progress debt, with goodwill of about $11 billion. FERC rejected the companies' initial market-power mitigation plan in December 2011, and regulatory approvals remain unresolved, with a termination fee of $675 million payable by Duke under specified circumstances. Management guides 2012 adjusted diluted EPS to $1.40 to $1.45 and projects capital expenditures of $4.3 to $4.5 billion. Risk concentrates in the regulated Midwest and Indiana projects. The Edwardsport IGCC plant (about 97% complete) has a cost estimate of roughly $2.98 billion excluding financing costs, against a proposed recoverable cap of $2.72 billion, and the Indiana Utility Regulatory Commission's final orders are not expected before late 2012. The company also faces roughly $4.5 to $5 billion of estimated compliance costs for EPA rules over ten years, and Ohio's new electric security plan separates generation from retail load effective January 2012, which will pressure Commercial Power margins. The balance sheet is robust, with total assets of $62.5 billion, but long-term debt has risen to $18.7 billion, and credit ratings are investment grade (S&P BBB+ at the parent level).
Feb 28, 2012
2010
Duke Energy CORP Annual Report, Year Ended Dec 31, 2010
Duke Energy's 2010 Form 10-K (filed February 25, 2011) reports net income attributable to Duke Energy of $1,320 million, or $1.00 diluted EPS, up from $1,075 million ($0.83) in 2009. Results were held back by $660 million of goodwill and other impairment charges in the non-regulated Midwest generation business, which compares with $413 million in 2009. Operating revenues rose 12% to $14.27 billion, with the regulated U.S. Franchised Electric and Gas (USFE&G) segment delivering EBIT of $2.97 billion, up 28%, on new North Carolina and South Carolina base rates, favorable weather, and higher AFUDC equity. Commercial Power posted an EBIT loss of $229 million, driven by impairments and customer switching in Ohio, where switching reached about 65% of retail load. The largest investor question is the pending merger with Progress Energy, announced January 8, 2011. Progress shareholders would receive 2.6125 Duke shares per share, and the transaction would add roughly 765 million shares, which Duke would then reverse-split 1-for-3. The filing values the deal at about $14 billion, implies $7-8 billion of incremental goodwill, and carries a $675 million termination fee payable by Duke. Management targets completion by year-end 2011. Capital spending is guided at $4.5-5.0 billion for 2011, and the company expects to file several rate cases in 2011 and 2012. The balance sheet is solid but levered. Total assets were $59.1 billion, long-term debt was $17.9 billion, and the debt-to-capitalization ratio is about 45%, with the company expecting 47% in 2011. Credit ratings are BBB+/Baa2 at the parent and A-/Baa2 to A3 at the regulated subsidiaries. Key risks include the Edwardsport IGCC project, where cost estimates rose to $2.88 billion amid regulatory scrutiny in Indiana, the Ohio market transition after the ESP expires in 2011, potential greenhouse gas and EPA emissions rules, and ongoing asbestos and litigation exposure at Duke Energy Carolinas.
Feb 25, 2011
2009
Duke Energy CORP Annual Report, Year Ended Dec 31, 2009
Duke Energy's 2009 Form 10-K shows a company in transition under economic pressure. Net income attributable to Duke Energy fell to $1,075 million ($0.83 diluted EPS) from $1,362 million ($1.07) in 2008, driven mainly by a roughly $371 million non-cash goodwill impairment at Commercial Power's non-regulated Midwest generation unit, plus additional impairments of about $42 million on Midwest generating assets. Total operating revenues declined about 4% to $12.7 billion, reflecting weaker industrial sales (down roughly 14-15%) and lower fuel revenues. Reportable segment EBIT fell to $2.71 billion from $3.07 billion, with U.S. Franchised Electric and Gas, the largest and most stable segment, still contributing the majority of earnings at $2.32 billion. The filing is important for investors on several fronts. Duke is planning roughly $14-15 billion of capital expenditures over 2010-2012, mostly in regulated U.S. franchised operations, including the Cliffside Unit 6 coal plant, the Edwardsport IGCC plant, and gas combined-cycle units at Buck and Dan River. The Edwardsport IGCC cost estimate is under review and is expected to rise significantly above the $2.35 billion approved figure, which is a key execution risk. Customer switching in Ohio, which reached about 40% of Commercial Power's native load, is pressuring the Ohio generation business, and the company flagged possible future goodwill charges. Dividends were $0.94 per share, and the company reported a 2010 voluntary severance program affecting about 8,750 eligible employees with estimated payments of roughly $130 million. Balance-sheet items to watch include total long-term debt rising to about $16.1 billion, a debt-to-capitalization ratio of about 44%, and credit ratings of BBB+/Baa2 at the parent level as of February 2010. The company also plans to consolidate Cinergy Receivables beginning January 1, 2010, which will bring receivables and short-term debt onto the balance sheet. Ongoing litigation, including NSR Clean Air Act cases, asbestos claims with reserves of about $980 million, and the Cliffside permit challenges, adds contingent risk.
Feb 26, 2010
2008
Duke Energy CORP Annual Report, Year Ended Dec 31, 2008
Duke Energy's 2008 Form 10-K (filed February 27, 2009) reports net income of $1,362 million and diluted EPS of $1.07 for 2008, down from $1,500 million and $1.18 in 2007, with income from continuing operations falling to $1,279 million from $1,522 million. Reported results were pressured by a $238 million pre-tax share of Crescent Resources real estate impairments, which drove a $259 million drop in equity earnings, and by $82 million of emission allowance impairments following the July 2008 court vacatur of CAIR. Total reportable segment EBIT rose to $3,073 million from $2,971 million, led by U.S. Franchised Electric and Gas, which benefited from higher fuel revenues and rate increases even as industrial sales weakened. The company's forward profile is dominated by a planned roughly $25 billion of capital expenditures over 2009-2013, with about $18 billion directed to the regulated U.S. Franchised Electric and Gas segment. Major projects include the Cliffside Unit 6 coal plant, the Edwardsport IGCC plant (cost estimate raised to $2.35 billion), the proposed William States Lee III nuclear station, and gas-fired units at Dan River and Buck. Management expects flat kilowatt-hour sales in 2009 amid recession, and it has flagged regulatory lag, pension funding needs (a roughly $500 million February 2009 contribution, with qualified plans underfunded by about $1.3 billion), and sensitivity to a potential federal greenhouse gas cap-and-trade regime. For investors, the key positives are a largely regulated earnings base, investment-grade credit ratings (S&P A- for Duke Energy Carolinas, BBB+ at the parent), about $1.0 billion of cash and short-term investments at year-end, and a dividend of $0.90 per share for 2008. The key risks are a heavy and back-end-loaded capital program that must be recovered through timely rate cases, a $1.4 billion parent-level borrowing increase, large asbestos and nuclear decommissioning obligations, and ongoing litigation including New Source Review claims.
Feb 27, 2009
2007
Duke Energy CORP Annual Report, Year Ended Dec 31, 2007
Duke Energy's 2007 Form 10-K (filed February 29, 2008) reports a year defined by the January 2, 2007 spin-off of its natural gas businesses (Spectra Energy) and the full-year effect of the April 2006 Cinergy merger. Reported net income was $1,500 million, or $1.19 basic and $1.18 diluted EPS, down from $1,863 million ($1.59 / $1.57) in 2006, largely because 2006 included large one-time gains such as the roughly $246 million Crescent JV gain and discontinued-operations income. Income from continuing operations rose to $1,522 million from $1,080 million, and total reportable segment EBIT grew to $3,009 million from $2,553 million, led by U.S. Franchised Electric and Gas, which earned $2,305 million of EBIT. The company is now primarily a regulated electric utility. The U.S. Franchised Electric and Gas segment generates the majority of expected future earnings, and the filing points to the need for roughly $23 billion of capital expenditures over 2008-2012, with about $19 billion directed to that segment. Major projects include the Cliffside coal unit and gas-fired additions in the Carolinas, the 630 MW Edwardsport IGCC plant in Indiana, and a proposed new nuclear unit (William States Lee III). Management expects the debt-to-capitalization ratio to rise from about 35% to about 40% by year-end 2008, and dividends were cut to $0.86 per share for 2007 as a result of the spin-off, with a planned $0.01 quarterly increase beginning in Q3 2008. Key risks flagged include North Carolina rate reductions effective January 1, 2008 (roughly a 5% average decrease, with a $210 million annual revenue reduction), pending Ohio legislation (SB 221) and the expiration of the Ohio Rate Stabilization Plan at end-2008, federal greenhouse-gas cap-and-trade proposals (estimated 2012 allowance costs of $930 million to $2.8 billion), asbestos liabilities at Duke Energy Carolinas, and ongoing New Source Review and other litigation. Credit ratings are A- at S&P and Baa2 at Moody's at the holding company level.
Feb 29, 2008
2006-A
Duke Energy CORP Annual Report (Amendment), Year Ended Dec 31, 2006
This Form 10-K/A (Amendment No. 1) for Duke Energy Corporation's fiscal 2006 annual report does not change Duke's own financial statements. It was filed to add separately audited financial statements of DCP Midstream, LLC (formerly Duke Energy Field Services, LLC) under Rule 3-09 of Regulation S-X. DCP Midstream is a midstream natural gas gathering, processing, and NGL business that was 50% owned by Duke Energy and 50% by ConocoPhillips, and the financial statements are audited by Deloitte & Touche with an unqualified opinion dated March 14, 2007. DCP Midstream's 2006 results were mixed. Operating income rose 11% to $1,272 million, but total operating revenues fell 5% to $12,335 million, and net income dropped to $1,135 million from $2,170 million. The 2005 figure was inflated by a one-time $1,137 million gain on the sale of the TEPPCO general partner interest, so the comparison is not like-for-like. Total assets declined to $6,896 million, long-term debt increased to $2,115 million, and members' equity fell to $2,257 million after $1,451 million in distributions and dividends to members. Operating cash flow was $1,246 million, down from $1,764 million, while capital expenditures rose to $325 million. The key forward-looking points concern corporate structure. On January 2, 2007, Duke Energy spun off its natural gas businesses, including its 50% stake in DCP Midstream, into a new public company, Spectra Energy Corp. The company was renamed DCP Midstream, LLC, effective January 1, 2007. Management does not expect the spin to materially affect operations. Subsequent events also include a roughly $180 million agreement by DCP Midstream Partners to acquire gathering and compression assets in southern Oklahoma from Anadarko. ConocoPhillips and its affiliate CP Chem are the largest customers, accounting for about $2.7 billion of 2006 sales, which is a notable concentration risk.
Mar 22, 2007
2006
Duke Energy CORP Annual Report, Year Ended Dec 31, 2006
Duke Energy Corporation's 2006 10-K filing highlights a significant year marked by the merger with Cinergy Corp., completed in April 2006, which substantially expanded its regulated electric and gas operations, particularly in the Midwest. This strategic move aimed to create an industry-leading electric power platform. Concurrently, the company pursued a plan to spin off its natural gas businesses into a separate publicly traded entity, Spectra Energy Corp., a process completed in January 2007, intended to unlock long-term shareholder value by allowing both entities to focus on their respective core growth opportunities. Financially, 2006 saw revenues and operating income impacted by the Cinergy merger, partially offset by deconsolidations of certain business units like DEFS and Crescent. Management's focus for 2007 is on integrating the merged operations, optimizing efficiency, investing in infrastructure, and achieving financial objectives for the streamlined, lower-risk company that remains post-spin-off. The company is also navigating significant capital expenditure plans for generation fleet modernization and expansion, facing increased costs due to market demand for materials, equipment, and labor.
Mar 1, 2007