Duke Energy(DUK)2024-11-07 18:41Financial Data and Key Metrics Changes - Adjusted earnings per share for Q3 2024 were 1.94 in the same period last year [10][27] - Reported earnings per share were 1.59 last year [27] - The company reaffirmed its 2024 guidance range, trending to the lower half due to storm impacts [12][32] Business Line Data and Key Metrics Changes - Electric Utilities and Infrastructure segment saw a decrease of 0.09 in earnings per share, primarily due to higher O&M costs from hurricane restoration efforts [27] - Gas Utilities and Infrastructure segment's results were down 0.04, mainly due to increased interest expense and depreciation [28] - The other segment decreased by 73 billion capital plan [20] - Recent approvals for resource plans in the Carolinas will allow for timely recovery of investments and support reliability and affordability [21][25] - The company aims for a 5% to 7% EPS growth rate through 2028, supported by constructive regulatory outcomes and economic development [13][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the recent hurricane season but expressed confidence in the company's long-term outlook [5][12] - The company is actively pursuing cost recovery strategies and expects to mitigate storm impacts in 2024 [30][78] - Management remains optimistic about load growth, projecting a trend towards the higher end of the 1.5% to 2% CAGR through 2028 [37][79] Other Important Information - The preliminary total cost estimate for the three hurricanes is between 2.9 billion for the year, with approximately 3 billion of deferred fuel since 2023 and is on track to normalize by year-end [43] - The company is exploring new nuclear opportunities, particularly small modular reactors (SMRs), with stakeholder support [72][74] Q&A Session Summary Question: Credit impact post-storms and tax credit monetization - Management indicated that storm costs will temporarily impact credit in 2024, with recovery expected in 2025 [49] - Tax credit monetization is on track to reach the upper part of the 500 million range for the year [50] Question: Load growth expectations - Management reaffirmed the long-term load growth target of 1.5% to 2%, with expectations for acceleration in 2027 and 2028 [55][57] Question: Capital needs and equity financing - The company plans to maintain a balanced approach to financing, with no immediate need for additional equity [68][70] Question: New nuclear participation - Management sees promise in SMRs and is evaluating the best approach to ensure customer and investor interests are protected [72][74] Question: Earnings impact from hurricanes - Restoration costs and lost revenues from the hurricanes are expected to impact earnings by a few cents each [76][78] Question: Future resource plans in Indiana and the Carolinas - The company is focused on advancing near-term actions in both states, with no significant changes anticipated in the upcoming resource plans [92][94]