Duke Energy CORP Q4 FY2024 earnings call

Abby Motsinger welcomed to the call. Lynn Good, Chair and CEO, discussed 2024 adjusted earnings per share of $5.90 within guidance. 2024 was defined by response to hurricanes Helene and Milton. Announced 2025 EPS range $6.17-$6.42, $83 billion capital plan for 7.7% earnings-based growth, and 5%-7% EPS growth through 2029. Acknowledged key achievements in 2024: $45B rate-based investments approved, advanced generation/transmission, 1,500 MW solar in Florida, Piedmont Natural Gas won J.D. Power customer satisfaction. Announced leadership transition: Harry Sideris to become CEO and President, Ted Craver as independent chair. Harry Sideris emphasized commitment to reliable and affordable energy, executing all-of-the-above generation strategy, and grid investments. Brian Savoy discussed 2025 guidance, load growth projections, $83B capital plan, and credit metrics.

• 2025 EPS range set at $6.17 to $6.42, midpoint $6.30, representing ~7% growth over 2024. • $83 billion capital plan driving 7.7% earnings-based growth. • Continuation of 5%-7% EPS growth rate through 2029 with potential for higher in later years. • Starting 2027, annual load growth expected to accelerate to 3%-4% at enterprise, supported by economic development projects.

Q: Shar Pourreza asked about EPS CAGR, credit metrics, and load growth from hyperscalers.

A: Brian Savoy and Harry Sideris responded, discussing EPS growth potential, credit metrics above downgrade thresholds, and hyperscalers continuing to move forward with projects.

Q: Nicholas Campanella asked about equity instruments.

A: Brian Savoy responded, mentioning use of ATM and DRIP for equity funding and consideration of hybrids.

Q: David Arcaro asked about load growth, data centers, and upside.

A: Harry Sideris and Lynn Good responded, discussing near-term data centers for cloud computing, later generative AI data centers, and strong economic development pipeline.

Q: Julien Dumoulin-Smith asked about cost savings and customer deposits.

A: Brian Savoy and Lynn Good responded, discussing cost leadership through technology and process improvement, and creative tariff structures for large load.

Q: Jeremy Tonet asked about economic activity in Midwest and DC administration impact.

A: Harry Sideris and Lynn Good responded, discussing economic growth in Indiana and alignment of strategy with federal and state aspirations.

Q: Anthony Crowdell asked about FFO to debt and earnings growth.

A: Brian Savoy responded, discussing FFO to debt targets and load growth acceleration in later years.

Q: Durgesh Chopra asked about O&M timing and ROE in Ohio Kentucky.

A: Harry Sideris responded, discussing O&M timing shifts and efforts to improve ROE through rate cases and cost reductions