Duke Energy reports first quarter earnings - First quarter 2013 adjusted diluted earnings per share (EPS) were $1.02, compared to $1.13 for the first quarter 2012

- Reported diluted EPS for first quarter 2013 was $0.89, compared to $0.66 for the first quarter 2012

- Company affirms its 2013 adjusted earnings guidance range of $4.20 to $4.45 per share

CHARLOTTE, N.C., May 3, 2013 /PRNewswire/ -- Duke Energy (NYSE: DUK) today announced first quarter 2013 adjusted diluted EPS of $1.02, compared to $1.13 for first quarter 2012, and reported diluted EPS of $0.89, compared to $0.66 for the same period last year.

(Logo:  http://photos.prnewswire.com/prnh/20130322/CL81938LOGO )

Adjusted EPS for the quarter reflects the addition of earnings from Progress Energy, favorable weather and revised customer rates for Duke Energy Carolinas. These drivers helped mitigate the impact of share dilution from the merger and less favorable results from the company's Commercial Power and International Energy segments.

As expected, Commercial Power experienced lower results from the Midwest generation fleet primarily due to lower PJM capacity prices, while International Energy was negatively impacted by lower volumes and higher purchased power costs in Brazil due to a delay in the rainy season.

"Our first quarter earnings were consistent with our internal plan and we are affirming our 2013 earnings guidance range," said Jim Rogers, Duke Energy chairman, president and CEO. "Our operational performance was strong, as highlighted by our 97.1 percent nuclear capacity factor, reflecting our continuing focus on optimizing the performance of our nuclear fleet.

"We're 10 months into the merger with Progress Energy and we are pleased with the pace of our integration efforts. We are clearly on track to achieve our merger commitments, providing benefits for both customers and investors," he added. "As we move forward, our focus will remain on safety and operational excellence as we pursue our near-term priorities, including successfully concluding regulated rate cases in North Carolina, South Carolina and Ohio. We also are finalizing our remaining major construction projects, providing increased diversity to our generation mix for decades to come."

BUSINESS UNIT RESULTS

The discussion below of first-quarter 2013 financial results includes adjusted segment income, which is a non-GAAP financial measure. The tables on pages 21 through 22 present a reconciliation of reported results to adjusted results.

U.S. Franchised Electric and Gas (USFE&G) 
USFE&G recognized first-quarter 2013 adjusted segment income of $656 million, compared to $344 million in the first quarter 2012, an increase of $0.44 per share.

USFE&G's increased results were primarily driven by the addition of Progress Energy's regulated utility operations in the Carolinas and Florida (+$0.35 per share).

Other drivers, excluding the addition of Progress Energy, included:

  • Favorable weather (+$0.10 per share) compared to 2012
  • Increased pricing and riders principally related to the implementation of revised customer rates at Duke Energy Carolinas in February 2012 (+$0.03 per share)
  • Increased wholesale revenues including new contracts (+$0.02 per share)

These results were partially offset by a change in effective tax rate (-$0.02 per share) and a decrease in AFUDC equity (-$0.02 per share) primarily due to the completion of certain major capital projects.

International Energy  
International Energy recognized first-quarter 2013 adjusted segment income of $97 million, compared to $142 million in the first quarter 2012, a decrease of $0.06 per share.

International Energy's quarterly results decreased primarily due to lower volumes and higher purchased power costs in Brazil as a result of a delay in the rainy season (-$0.03 per share), lower volumes and pricing at National Methanol Corporation (-$0.01 per share) and unfavorable foreign exchange rates primarily in Brazil (-$0.01 per share).

Commercial Power  
Commercial Power recognized first-quarter 2013 adjusted segment income of $6 million, compared to $30 million in the first quarter 2012, a decrease of $0.03 per share.

Commercial Power's quarterly results decreased primarily due to lower results from the Midwest coal and gas generation fleets (-$0.05 per share) driven primarily by lower PJM capacity revenues. These results were partially offset by favorable margins at Duke Energy Retail (+$0.01 per share).

Other 
On an adjusted basis, Other primarily includes corporate interest expense not allocated to the business units, results from Duke Energy's captive insurance company, other investments, and quarterly income tax levelization adjustments.

Other recognized first-quarter 2013 adjusted net expense of $43 million, compared to net expense of $10 million in the first quarter 2012, a difference of $0.05 per share. Other's results were primarily due to the addition of interest expense on Progress Energy holding company's corporate debt (-$0.04 per share) and increased Duke Energy holding company interest expense (-$0.02 per share).

Share Issuance 
On July 2, 2012, Duke Energy issued approximately 258 million shares of common stock in connection with the closing of the merger with Progress Energy Inc. The issuance of these additional shares had a dilutive impact of $0.41 per share on the quarter-over-quarter adjusted diluted EPS results.

Earnings Conference Call for Investors 
An earnings conference call for investors is scheduled for 10 a.m. ET Friday, May 3, to discuss Duke Energy's financial performance for the first quarter 2013 as well as providing other business updates. The conference call will be hosted by Jim Rogers, chairman, president and chief executive officer, and Lynn Good, executive vice president and chief financial officer.

The call can be accessed via the investors' section (http://www.duke-energy.com/investors) of Duke Energy's website or by dialing 877-723-9523 in the United States or 719-325-4929 outside the United States. The confirmation code is 9459861. Please call in 10 to 15 minutes prior to the scheduled start time.

A replay of the conference call will be available until 1 p.m. ET, May 13, 2013, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 9459861. A replay and transcript also will be available by accessing the investors' section of the company's website.

Special Items and Non-GAAP Reconciliation 
Special items affecting Duke Energy's adjusted diluted EPS for first quarter 2012 and first quarter 2013 include:

(In millions, except per-share amounts)

Pre-Tax Amount

Tax Effect

1Q2013 EPS Impact

1Q2012 EPS Impact

First Quarter 2013


Costs to Achieve, Progress Energy Merger

$(55)

$21

$(0.05)


Economic Hedges (Mark-to-Market)

$(75)

$27

$(0.08)


First Quarter 2012


Edwardsport Charges

$(420)

$152


$(0.60)

Costs to Achieve, Progress Energy Merger

$(8)

$2


$(0.01)

Voluntary Opportunity Plan deferral

$99

$(39)


$0.13

Economic Hedges (Mark-to-Market)

$2

$(1)


--

Discontinued operations, net of tax

--

$2


$0.01

Total diluted EPS impact



$(0.13)

$(0.47)

 

Reconciliation of reported to adjusted diluted EPS for the quarters:


1Q2013

EPS

1Q2012

EPS

Diluted EPS, as reported

$0.89

$0.66

Adjustments to reported EPS:



Diluted EPS impact of special items, mark-to-market in Commercial Power and discontinued operations

$0.13

$0.47

Diluted EPS, adjusted

$1.02

$1.13

 

NON-GAAP FINANCIAL MEASURES

The primary performance measure used by management to evaluate segment performance is segment income. Segment income is defined as income from continuing operations net of income attributable to non-controlling interests. In addition, direct interest expense and income taxes are included in segment income and certain governance costs are allocated to each of the segments.

Management believes segment income, which is the GAAP measure used to report segment results, is a good indicator of each segment's operating performance as it represents the approximate net income contribution of Duke Energy's business segments by incorporating the direct financing methods or capital structures of the business segments as well as the income tax attributes of the businesses and regions in which they operate.

Duke Energy's management uses adjusted diluted EPS, which is a non-GAAP financial measure as it represents diluted EPS from continuing operations attributable to Duke Energy Corporation common shareholders, adjusted for the per-share impact of special items and the mark-to-market impacts of economic hedges in the Commercial Power segment, as a measure to evaluate operations of the company. In addition, Duke Energy's management calculates the EPS impact of segment income drivers to facilitate an understanding of the impacts of each income driver on consolidated adjusted diluted EPS.

Special items represent certain charges and credits, which management believes will not be recurring on a regular basis, although it is reasonably possible such charges and credits could recur. Mark-to-market adjustments reflect the mark-to-market impact of derivative contracts, which is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory accounting treatment, used in Duke Energy's hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The economic value of the generation assets is subject to fluctuations in fair value due to market price volatility of the input and output commodities (e.g. coal, power, gas) and, as such, the economic hedging involves both purchases and sales of those input and output commodities related to the generation assets. Because the operations of the generation assets are accounted for under the accrual method, management believes that excluding the impact of mark-to-market changes of the economic hedge contracts from adjusted earnings until settlement better matches the financial impacts of the hedge contract with the portion of the economic value of the underlying hedged asset. Management believes that the presentation of adjusted diluted EPS provides useful information to investors, as it provides them an additional relevant comparison of the company's performance across periods. Adjusted diluted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measure for adjusted diluted EPS is reported diluted EPS from continuing operations attributable to Duke Energy Corporation common shareholders, which includes the impact of special items and the mark-to-market impacts of economic hedges in the Commercial Power segment. Due to the forward-looking nature of adjusted diluted EPS for future periods, information to reconcile such 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 special items and the mark-to-market impacts of economic hedges in the Commercial Power segment for future periods.

Duke Energy also uses adjusted segment income and adjusted Other net expenses as a measure of historical and anticipated future segment and Other performance. Adjusted segment income and adjusted Other net expenses are non-GAAP financial measures, as they represent reported segment income and Other net expenses adjusted for special items and the mark-to-market impacts of economic hedges in the Commercial Power segment. Management believes that the presentation of adjusted segment income and adjusted Other net expenses provides useful information to investors, as it provides them an additional relevant comparison of a segment's or Other's performance across periods. When an EPS amount is provided for a segment income driver, the per share impact is derived by taking the before-tax amount of the item less income taxes based on Duke Energy's consolidated effective tax rate, divided by the Duke Energy weighted-average diluted shares outstanding for the period. The most directly comparable GAAP measure for adjusted segment income or adjusted Other net expenses is reported segment income or Other net expenses, which represents segment income and Other net expenses from continuing operations, including any special items and the mark-to-market impacts of economic hedges in the Commercial Power segment. Due to the forward-looking nature of any forecasted adjusted segment income or adjusted Other net expenses 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 special items, the mark-to-market impacts of economic hedges in the Commercial Power segment, or any amounts that may be reported as discontinued operations or extraordinary items for future periods.

Duke Energy is the largest electric power holding company in the United States with more than $100 billion in total assets. Its regulated utility operations serve approximately 7.1 million electric customers located in six states in the Southeast and Midwest. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at: www.duke-energy.com

Forward-Looking Information 
This release 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.

These forward-looking statements are identified by terms and phrases such as "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" and similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. Factors that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to: state, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, as well as rulings that affect cost and investment recovery or have an impact on rate structures; the ability to recover eligible costs and earn an adequate return on investment through the regulatory process; the costs of retiring Duke Energy Florida's Crystal River Unit 3 could prove to be more extensive than is currently identified, all costs associated with the retirement Crystal River Unit 3 asset, including replacement power may not be fully recoverable through the regulatory process; the ability to maintain relationships with customers, employees or suppliers post-merger; the ability to successfully integrate the Progress Energy businesses and realize cost savings and any other synergies expected from the merger; the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; the impact of compliance with material restrictions of conditions related to the Progress Energy merger imposed by regulators could exceed our expectations; costs and effects of legal and administrative proceedings, settlements, investigations and claims; industrial, commercial and residential growth or decline in the respective Duke Energy Registrants' service territories, customer base or customer usage patterns; additional competition in electric markets and continued industry consolidation; political and regulatory uncertainty in other countries in which Duke Energy conducts business; the influence of weather and other natural phenomena on each of the Duke Energy Registrants' operations, including the economic, operational and other effects of storms, hurricanes, droughts and tornadoes; the ability to successfully operate electric generating facilities and deliver electricity to customers; the ability to recover, in a timely manner, if at all, costs associated with future significant weather events through the regulatory process; the impact on the Duke Energy Registrants' facilities and business from a terrorist attack, cyber security threats and other catastrophic events; the inherent risks associated with the operation and potential construction of nuclear facilities, including environmental, health, safety, regulatory and financial risks; the timing and extent of changes in commodity prices, interest rates and foreign currency exchange rates and the ability to recover such costs through the regulatory process, where appropriate; unscheduled generation outages, unusual maintenance or repairs and electric transmission system constraints; the performance of electric generation facilities and of projects undertaken by Duke Energy's non-regulated businesses; the results of financing efforts, including the Duke Energy Registrants' ability to obtain financing on favorable terms, which can be affected by various factors, including the respective Duke Energy Registrants' credit ratings and general economic conditions; declines in the market prices of equity securities and resultant cash funding requirements for Duke Energy's defined benefit pension plans and nuclear decommissioning trust funds; the level of creditworthiness of counterparties to Duke Energy Registrants' transactions; employee workforce factors, including the potential inability to attract and retain key personnel; growth in opportunities for the respective Duke Energy Registrants' business units, including the timing and success of efforts to develop domestic and international power and other projects; construction and development risks associated with the completion of Duke Energy Registrants' capital investment projects in existing and new generation facilities, including risks related to financing, 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 ratepayers in a timely manner or at all; the subsidiaries ability to pay dividends or distributions to Duke Energy Corporation holding company (the Parent); the effect of accounting pronouncements issued periodically by accounting standard-setting bodies; the impact of potential goodwill impairments; the ability to reinvest retained earnings of foreign subsidiaries or repatriate such earnings on a tax free basis; and the ability to successfully complete future merger, acquisition or divestiture plans.

Additional risks and uncertainties are identified and discussed in Duke Energy's and its subsidiaries' reports filed with the SEC and available at the SEC's website at www.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 Duke Energy has described. Duke Energy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Contact: Tom Shiel
Office: 704.382.2355 | 24-Hour: 800.559.3853
Analyst: Bob Drennan
Office: 704.382.4070
Analyst: Bill Currens
Office: 704.382.1603

 


DUKE ENERGY CORPORATION

EARNINGS VARIANCES

March 2013 YTD vs. Prior Year


















($ per share)


U.S. Franchised

Electric & Gas


International Energy


Commercial Power


Other


Consolidated


















2012 YTD Reported Earnings Per Share, Diluted


$

0.30


$

0.32


$

0.07


$

(0.04)


$

0.66

Costs to Achieve, Progress Merger



-



-



-



0.01



0.01

Edwardsport Charges



0.60



-



-



-



0.60

Voluntary Opportunity Plan Deferral



(0.13)



-



-



-



(0.13)

Economic Hedges (Mark-to-Market)



-



-



-



-



-

Discontinued Operations















(0.01)

2012 YTD Adjusted Earnings Per Share, Diluted


$

0.77


$

0.32


$

0.07


$

(0.03)


$

1.13


















Share Differential (a)



(0.28)



(0.12)



(0.03)



0.02



(0.41)


















2012 YTD Adjusted Earnings Per Share, Diluted, Recasted for Share Issuance


$

0.49


$

0.20


$

0.04


$

(0.01)


$

0.72


















Progress Energy Contribution



0.35



-



-



(0.04)



0.31


















Weather



0.10



-



-



-



0.10


















Pricing and Riders (b)



0.03



-



-



-



0.03


















Latin America, including Foreign Exchange Rates (c)



-



(0.05)



-



-



(0.05)


















National Methanol Company



-



(0.01)



-



-



(0.01)


















Midwest Coal Generation (d)



-



-



(0.02)



-



(0.02)


















Midwest Gas Generation (e)



-



-



(0.03)



-



(0.03)


















Duke Energy Retail 



-



-



0.01



-



0.01


















Interest Expense



-



-



0.01



(0.02)



(0.01)


















Change in effective income tax rate



(0.02)



-



-



-



(0.02)


















Other (f)



(0.02)



-



-



0.01



(0.01)


















2013 YTD Adjusted Earnings Per Share, Diluted


$

0.93


$

0.14


$

0.01


$

(0.06)


$

1.02

Costs to Achieve, Progress Merger



-



-



-



(0.05)



(0.05)

Economic Hedges (Mark-to-Market)



-



-



(0.08)



-



(0.08)

2013 YTD Reported Earnings Per Share, Diluted


$

0.93


$

0.14


$

(0.07)


$

(0.11)


$

0.89




































Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.


Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.


















(a)

Reflects the impact on prior period earnings per diluted share due to the increase in Duke Energy's weighted-average diluted common shares outstanding as a result of shares issued to complete

the merger with Progress Energy.  Weighted-average diluted shares outstanding increased from 446 million for the three months ended March 31, 2012, to 705 million for the three months ended

March 31, 2013.


















(b)

Primarily due to the timing of the implementation of revised customer rates in North and South Carolina as a result of the 2011 Duke Energy Carolinas rate case. The revised rates were in

implemented in February 2012, resulting in only two months of increased rates in quarter ended March 31, 2012, compared to three months in quarter ended March 31, 2013.


















(c) 

Primarily driven by higher average purchased power costs and lower volumes due to a delay in the rainy season (-$0.03) and unfavorable foreign exchange rates (-$0.01) in Brazil.


















(d)

Primarily due to lower capacity revenues received from PJM  (-$0.03).


















(e)

Primarily due to lower capacity revenue from PJM (-$0.03).


















(f)

Amount for U.S. Franchised Electric & Gas is primarily due to a decrease in AFUDC-equity (-$0.02), and increases in depreciation and amortization expense (-$0.01) and general taxes (-$0.01),

partially offset by higher wholesale revenue, including new contracts (+$0.02).

 

 

 


March 2013

QUARTERLY HIGHLIGHTS

(Unaudited)








Three Months Ended 



March 31,






(In millions, except per-share amounts and where noted)


2013


2012

COMMON STOCK DATA





Income from continuing operations attributable to Duke Energy Corporation common shareholders(a)





    Basic


$              0.89


$                       0.65

    Diluted


$              0.89


$                       0.65

Income from discontinued operations attributable to Duke Energy Corporation common shareholders(a)





    Basic


$                   -


$                       0.01

    Diluted


$                   -


$                       0.01

Net income attributable to Duke Energy Corporation common shareholders(a)





    Basic


$              0.89


$                       0.66

    Diluted


$              0.89


$                       0.66

  Dividends Declared Per Share(a)


$            0.765


$                       0.75

  Weighted-Average Shares Outstanding(a)





    Basic


705


446

    Diluted


705


446






SEGMENT INCOME BY BUSINESS SEGMENT





U.S. Franchised Electric and Gas(b)


$               656


$                        136

Commercial Power


(42)


31

International Energy


97


142

Total Reportable Segment Income


711


309

Other Net Expense


(77)


(16)

Income from Discontinued Operations, net of tax


-


2

Net Income Attributable to Duke Energy Corporation


$               634


$                        295






CAPITALIZATION





Total Common Equity


50%


53%

Total Debt


50%


47%






Total Debt


$          41,350


$                   20,550

Book Value Per Share(a)


$            58.14


$                     51.29

Actual Shares Outstanding(a)


706


446






CAPITAL AND INVESTMENT EXPENDITURES





U.S. Franchised Electric and Gas


$            1,309


$                        795

Commercial Power


25


209

International Energy


12


15

Other


64


24






Total Capital and Investment Expenditures


$            1,410


$                     1,043











(a) Reflects the impact of the 1-for-3 reverse stock split on July 2, 2012.





(b) Includes impairment and other charges of $268 million in the first quarter of 2012 related to the Edwardsport IGCC project (net of tax of $152 million).

 

 


March 2013


QUARTERLY HIGHLIGHTS


(Unaudited)










Three Months Ended 




March 31,








(In millions, except where noted)


2013


2012


U.S. FRANCHISED ELECTRIC AND GAS






  Operating Revenues


$                   5,060


$                   2,668


  Operating Expenses (a)


3,840


2,382


  Gains on Sales of Other Assets, net


2


4


  Operating Income (Loss)


1,222


290


  Other Income and Expenses


61


62


  Interest Expense


236


146


  Income Before Income Taxes


1,047


206


  Income Tax Expense(b)


391


70


  Less: Income Attributable to Noncontrolling Interests


-


-


  Segment Income


$                        656


$                         136








  Depreciation and Amortization


$                        536


$                        368








  Duke Energy Carolinas GWh sales


22,246


19,461


  Duke Energy Progress GWh sales


14,701


13,168


  Duke Energy Florida's GWh sales


8,017


8,412


  Duke Energy Ohio GWh sales


6,178


5,854


  Duke Energy Indiana GWh sales


8,505


8,469


  Net Proportional MW Capacity in Operation


49,641


27,471








COMMERCIAL POWER






  Operating Revenues


$                        452


$                        580


  Operating Expenses


533


530


  Gains on Sales of Other Assets, net


-


-


  Operating Income (Loss)


(81)


50


  Other Income and Expenses


11


8


  Interest Expense


15


19


  Income Before Income Taxes


(85)


39


  Income Tax Expense


(43)


8


  Less: Income Attributable to Noncontrolling Interests


-


-


  Segment Income


$                         (42)


$                            31








  Depreciation and Amortization


$                           63


$                           56








Actual Coal-fired Plant Production, GWh


4,549


4,068


Actual Gas-fired Plant Production, GWh


3,897


4,583


Actual Renewable Plant Production, GWh


1,405


998


Actual Plant Production, GWh


9,851


9,649


  Net Proportional MW Capacity in Operation


8,094


7,691








INTERNATIONAL ENERGY






  Operating Revenues


$                        392


$                        402


  Operating Expenses


263


245


  Gains on Sales of Other Assets, net


-


-


  Operating Income (Loss)


129


157


  Other Income and Expenses


33


54


  Interest Expense


21


16


  Income Before Income Taxes


141


195


  Income Tax Expense


42


49


  Less: Income Attributable to Noncontrolling Interests


2


4


  Segment Income


$                           97


$                         142








  Depreciation and Amortization


$                           26


$                           24








  Sales, GWh


4,756


5,074


  Proportional MW Capacity in Operation


4,584


4,231








OTHER 






  Operating Revenues


$                           35


$                            15


  Operating Expenses


90


16


  (Losses) Gains on Sales of Other Assets, net


-


(1)


  Operating Income (Loss)


(55)


(2)


  Other Income and Expenses


11


5


  Interest Expense


95


43


  (Loss) Income Before Income Taxes


(139)


(40)


  Income Tax (Benefit) Expense


(60)


(24)


  Less: Income (Loss) Attributable to Noncontrolling Interests


(2)


-


  Net Expense


$                         (77)


$                          (16)








  Depreciation and Amortization


$                           35


$                            31








(a) Includes pre-tax impairment and other charges of $420 million for the three months ended March 31, 2012, related to the Edwardsport IGCC project.

(b) Includes a tax benefit of $152 million for the three months ended March 31, 2012, on the impairment and other charges related to the Edwardsport IGCC project.

 

DUKE ENERGY CORPORATION
Condensed Consolidated Statements Of Operations
(Unaudited)

















Three Months Ended









March 31,

(in millions, except per-share amounts)






2013

2012

Operating Revenues








Regulated electric







$         4,889

$         2,501

Nonregulated electric, natural gas, and other





824

958

Regulated natural gas






185

171

Total operating revenues






5,898

3,630

Operating Expenses








Fuel used in electric generation and purchased power - regulated



1,703

777

Fuel used in electric generation and purchased power - nonregulated 


454

448

Cost of natural gas and coal sold






104

102

Operation, maintenance and other






1,421

746

Depreciation and amortization






660

479

Property and other taxes






343

184

Impairment charges






-

402

Total operating expenses






4,685

3,138

Gains on Sales of Other Assets and Other, net





2

3

Operating Income







1,215

495

Other Income and Expenses








Equity in earnings of unconsolidated affiliates





36

45

Impairments on sales of unconsolidated affiliates




-

(5)

Other income and expenses, net






80

89

Total other income and expenses





116

129

Interest Expense







367

224

Income From Continuing Operations Before Income Taxes



964

400

Income Tax Expense from Continuing Operations




330

103

Income From Continuing Operations





634

297

Income From Discontinued Operations, net of tax




-

2

Net Income 







634

299

Less: Net Income Attributable to Noncontrolling Interests 



-

4

Net Income Attributable to Duke Energy Corporation




$            634

$            295





















Earnings Per Share - Basic and Diluted







Income from continuing operations attributable to Duke Energy Corporation common shareholders



Basic 







$           0.89

$           0.65


Diluted







$           0.89

$           0.65

Income from discontinued operations attributable to Duke Energy Corporation common shareholders



Basic 







$                -

$           0.01


Diluted







$                -

$           0.01

Net Income attributable to Duke Energy Corporation common shareholders




Basic 







$           0.89

$           0.66


Diluted







$           0.89

$           0.66

Dividends declared per share






$         0.765

$           0.75

Weighted-average shares outstanding








Basic







705

446


Diluted







705

446

 

 

DUKE ENERGY CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)









March 31,


December 31,

(in millions)


2013


2012

ASSETS





Current Assets





Cash and cash equivalents


$               1,296


$               1,424

Short-term investments


288


333

Receivables (net of allowance for doubtful accounts of 






$32 at March 31, 2013 and $34 at December 31, 2012)


1,503


1,516

Restricted receivables of variable interest entities (net of allowance for 






doubtful accounts of $42 at March 31, 2013 and $44 at December 31, 2012)


1,304


1,201

Inventory


3,096


3,223

Other


2,062


2,425


Total current assets


9,549


10,122

Investments and Other Assets





Investments in equity method unconsolidated affiliates


478


483

Nuclear decommissioning trust funds


4,536


4,242

Goodwill


16,371


16,365

Intangibles, net


356


372

Notes receivable


69


71

Restricted other assets of variable interest entities


54


62

Other


2,466


2,399


Total investments and other assets


24,330


23,994

Property, Plant and Equipment





Cost


99,605


98,833

Cost, variable interest entities


1,579


1,558

Accumulated depreciation and amortization


(32,501)


(31,969)

Generation facilities to be retired, net


130


136


Net property, plant and equipment


68,813


68,558

Regulatory Assets and Deferred Debits





Regulatory assets 


10,778


11,004

Other


196


178


Total regulatory assets and deferred debits


10,974


11,182

Total Assets


$           113,666


$           113,856

LIABILITIES AND EQUITY





Current Liabilities





Accounts payable


$               1,985


$               2,444

Notes payable and commercial paper


1,361


745

Non-recourse notes payable of variable interest entities


325


312

Taxes accrued


425


459

Interest accrued


478


448

Current maturities of long-term debt


3,323


3,110

Other


2,068


2,511


Total current liabilities


9,965


10,029

Long-term Debt


35,084


35,499

Non-recourse Long-term debt of Variable Interest Entities


1,255


852

Deferred Credits and Other Liabilities





Deferred income taxes


10,518


10,490

Investment tax credits


454


458

Accrued pension and other post-retirement benefit costs


2,380


2,520

Asset retirement obligations


5,229


5,169

Regulatory liabilities


5,555


5,584

Other


2,196


2,221


Total deferred credits and other liabilities


26,332


26,442

Commitments and Contingencies





Preferred Stock of Subsidiaries


-


93

Equity





Common stock, $0.001 par value, 2 billion shares authorized; 706 million 






and 704 million shares outstanding at March 31, 2013 and 






December 31, 2012, respectively


1


1

Additional paid-in capital


39,263


39,279

Retained earnings


1,978


1,889

Accumulated other comprehensive loss


(289)


(306)


Total Duke Energy Corporation shareholders' equity


40,953


40,863

Noncontrolling interests


77


78


Total equity


41,030


40,941

Total Liabilities and Equity


$           113,666


$           113,856

 

DUKE ENERGY CORPORATION

Condensed Consolidated Statements Of Cash Flows

(Unaudited)
















Three Months Ended







March 31,

(in millions)


2013


2012










CASH FLOWS FROM OPERATING ACTIVITIES






Net income 

$                 634


$                 299


Adjustments to reconcile net income to net cash provided by







operating activities


457


573





Net cash provided by operating activities


1,091


872










CASH FLOWS FROM INVESTING ACTIVITIES









Net cash used in investing activities


(1,465)


(1,180)










CASH FLOWS FROM FINANCING ACTIVITIES









Net cash provided by (used in) financing activities


246


(731)











Net decrease in cash and cash equivalents


(128)


(1,039)


Cash and cash equivalents at beginning of period


1,424


2,110


Cash and cash equivalents at end of period


$               1,296


$               1,071

 

 

Duke Energy Carolinas

Quarterly Highlights

Supplemental Franchised Electric Information

March 2013












Three Months Ended






March 31










%




2013


2012


Inc.(Dec.)









GWH Sales 








Residential


7,705


7,030


9.6%


General Service


6,526


6,391


2.1%


Industrial


4,811


4,879


(1.4%)


Other Energy Sales


74


72


1.7%










    Total Regular Sales Billed


19,116


18,372


4.1%










Special Sales (1)


3,120


1,261


147.3%










      Total Electric Sales


22,236


19,633


13.3%










Unbilled Sales


10


(172)


105.8%










  Total Electric Sales - Duke Energy Carolinas


22,246


19,461


14.3%

























Average Number of Customers








Residential


2,062,339


2,048,361


0.7%


General Service


337,515


335,650


0.6%


Industrial


6,650


6,833


(2.7%)


Other Energy Sales


14,350


14,303


0.3%










  Total Regular Sales


2,420,854


2,405,147


0.7%










Special Sales


24


23


4.3%










Total Average Number of Customers - Duke Energy Carolinas


2,420,878


2,405,170


0.7%

























Heating and Cooling Degree Days








Actual








Heating Degree Days


1,856


1,319


40.7%


Cooling Degree Days


-


32


(100.0%)










Variance from Normal








Heating Degree Days


5.8%


(24.9%)


n/a


Cooling Degree Days


(100.0%)


464.4%


n/a


















(1)  First quarter 2013 includes 184 GWH of sales associated with the FERC mitigation contracts, for which the

financial results are excluded from the Franchised Electric & Gas segment earnings. 

 

Duke Energy Progress

Quarterly Highlights

Supplemental Franchised Electric Information

March 2013












Three Months Ended






March 31










%




2013


2012


Inc.(Dec.)









GWH Sales 








Residential


4,959


4,435


11.8%


General Service


3,482


3,449


1.0%


Industrial


2,444


2,429


0.6%


Other Energy Sales


30


30


1.1%










    Total Regular Sales Billed


10,915


10,343


5.5%










Special Sales


3,751


2,958


26.8%










      Total Electric Sales


14,666


13,301


10.3%










Unbilled Sales


35


(133)


(126.5%)










  Total Consolidated Electric Sales - Duke Energy Progress


14,701


13,168


11.6%

























Average Number of Customers








Residential


1,237,568


1,227,520


0.8%


General Service


220,208


218,266


0.9%


Industrial


4,396


4,457


(1.4%)


Other Energy Sales


1,812


1,872


(3.2%)










  Total Regular Sales


1,463,984


1,452,115


0.8%










Special Sales


15


19


(21.1%)










Total Average Number of Customers - Duke Energy Progress


1,463,999


1,452,134


0.8%

























Heating and Cooling Degree Days








Actual








Heating Degree Days


1,764


1,218


44.8%


Cooling Degree Days


6


59


(89.8%)










Variance from Normal








Heating Degree Days


4.7%


(28.6%)


n/a


Cooling Degree Days


(40.8%)


391.7%


n/a

 

Duke Energy Florida

Quarterly Highlights

Supplemental Franchised Electric Information

March 2013













Three Months Ended







March 31











%





2013


2012


Inc.(Dec.)











GWH Sales 









Residential


3,744


3,705


1.1%



General Service


3,224


3,311


(2.6%)



Industrial


755


757


(0.3%)



Other Energy Sales


6


6


0.6%












    Total Regular Sales Billed


7,729


7,779


(0.6%)












Special Sales


286


346


(17.6%)












      Total Electric Sales


8,015


8,125


(1.4%)












Unbilled Sales


1


286


(99.5%)












  Total Consolidated Electric Sales - Duke Energy Florida


8,016


8,411


-4.7%





























Average Number of Customers









Residential


1,473,749


1,461,004


0.9%



General Service


188,344


186,635


0.9%



Industrial


2,361


2,397


(1.5%)



Other Energy Sales


1,568


1,548


1.3%












  Total Regular Sales


1,666,022


1,651,584


0.9%












Special Sales


14


14


0.0%












Total Average Number of Customers - Duke Energy Florida


1,666,036


1,651,598


0.9%





























Heating and Cooling Degree Days









Actual









Heating Degree Days


274


202


35.6%



Cooling Degree Days


201


325


(38.2%)












Variance from Normal









Heating Degree Days


(0.6%)


(26.7%)


n/a



Cooling Degree Days


(7.0%)


50.8%


n/a


 

Duke Energy Ohio

Quarterly Highlights

Supplemental Franchised Electric Information

March 2013




















Three Months Ended




March 31








%




2013


2012


Inc.(Dec.)









GWH Sales 








Residential


2,498


2,247


11.2%


General Service


2,282


2,207


3.4%


Industrial


1,396


1,398


(0.1%)










Other Energy Sales


28


29


(3.4%)










    Total Regular Electric Sales Billed


6,204


5,881


5.5%










Special Sales 


120


52


130.8%










      Total Electric Sales Billed 


6,324


5,933


6.6%










Unbilled Sales


(146)


(79)


(84.8%)










  Total Electric Sales - Duke Energy Ohio


6,178


5,854


5.5%

























Average Number of Customers








Residential


737,283


736,116


0.2%


General Service


86,056


85,664


0.5%


Industrial 


2,562


2,595


(1.3%)










Other Energy


2,924


2,879


1.6%










  Total Regular Sales


828,825


827,254


0.2%










Special Sales


1


2


(50.0%)










Total Average Number Electric Customers - Duke Energy Ohio


828,826


827,256


0.2%

























Heating and Cooling Degree Days








Actual








Heating Degree Days


2,165


1,525


42.0%


Cooling Degree Days


-


29


(100.0%)










Variance from Normal








Heating Degree Days


4.5%


(27.3%)


n/a


Cooling Degree Days


(100.0%)


1350.0%


n/a

 

Duke Energy Ohio

Quarterly Highlights

Supplemental Franchised Gas Information

March 2013




















Three Months Ended




March 31








%




2013


2012


Inc.(Dec.)









MCF Sales 








Residential


20,044,850


16,532,983


21.2%


General Service


11,648,545


9,594,616


21.4%


Industrial 


2,407,491


1,953,064


23.3%










Other Energy Sales


6,154,498


6,131,351


0.4%










    Total Gas Sales Billed - Duke Energy Ohio


40,255,384


34,212,014


17.7%










Unbilled Sales


(912,000)


(2,622,000)


65.2%










  Total Gas Sales - Duke Energy Ohio


39,343,384


31,590,014


24.5%

























Average Number of Customers








Residential


471,571


471,836


(0.1%)


General Service


45,001


45,225


(0.5%)


Industrial


1,688


1,716


(1.6%)










Other Energy


166


172


(3.5%)










Total Average Number Gas Customers - Duke Energy Ohio


518,426


518,949


(0.1%)

















Heating and Cooling Degree Days








Actual








Heating Degree Days


2,165


1,525


42.0%


Cooling Degree Days


-


29


(100.0%)










Variance from Normal








Heating Degree Days


4.5%


(27.3%)


n/a


Cooling Degree Days


-100.0%


1350.0%


n/a

 

Duke Energy Indiana

Quarterly Highlights

Supplemental Franchised Electric Information

March 2013