Fourth Quarter 2023 Earnings Review and Business Update
Committed to current credit ratings
KEY MESSAGES
2024 FFO / DEBT DRIVERS
☐
Continue to benefit from a number of credit
supportive drivers:
2023 FFO / Debt(1)
Normal weather
12.5%
+25 bps
12.8%
☐
☐
■
Constructive rate case outcomes improve
cash from operations
Received approval to recover ~$4 billion of
deferred 2022 fuel balances, with no
disallowances
IRA tax credits to provide meaningful cash
flow over time. Expect to monetize credits
through transferability market
Expect equity issuances of $500 million per year
2024-2028 via DRIP/ATM programs to fund
incremental growth capital
Targeting 14% FFO / Debt by end of 2024, and
minimum of 14% over the long-term
Targeting Hold Co / total debt ratio in low 30's
Pension ~114% funded across all plans
Not expected to be a significant federal cash
taxpayer until around 2030 due to tax credit
position
+ 65-75 bps
+ 30 bps
+ 40-60 bps
+ 10 bps
Weather-normal 2023 FFO / Debt
Rate cases and riders
Deferred fuel collections
Nuclear PTC monetization
DRIP/ATM issuances
Higher debt/ other drivers
2024 FFO / Debt Target
(30-50 bps)
DEFERRED FUEL BALANCE
$3.9
2017-2020
average
Q4 2022A
($ in billions)
$2.3
~14%
DE Midwest
■DE Progress
■DE Carolinas
■ DE Florida
$0.4
Q4 2023A
Q4 2024E
DUKE
ENERGY.
FOURTH QUARTER 2023 EARNINGS REVIEW AND BUSINESS UPDATE
(1) Reflects FFO adjustment for long-term portion of deferred fuel
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