Duke Energy : 8-K (Duke Energy reports second quarter 2018 financial results)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 2, 2018

Commission file number

Registrant, State of Incorporation or Organization,

Address of Principal Executive Offices, and Telephone Number

IRS Employer Identification No.

DUKE ENERGY CORPORATION

(a Delaware corporation)

550 South Tryon Street

Charlotte, North Carolina 28202-1803

1-32853

704-382-3853

20-2777218

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

• o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

• o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

• o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

• o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02 Results of Operations and Financial Conditions.

On August 2, 2018, Duke Energy Corporation will issue and post a news release to its website (www.Duke-Energy.com/investors) announcing its financial results for the second quarter ended June 30, 2018. A copy of this news release is attached hereto as Exhibit 99.1. The information in Exhibit 99.1 is being furnished pursuant to this Item 2.02.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 News Release to be issued by Duke Energy Corporation on August 2, 2018

SIGNATURE

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

DUKE ENERGY CORPORATION /s/ DWIGHT L. JACOBS

Dwight L. Jacobs

Senior Vice President, Chief Accounting Officer and Controller

Dated: August 2, 2018

News Release

Media Contact: Catherine Butler 24-Hour: 800.559.3853

Analysts: Mike Callahan Office: 704.382.0459

Aug. 2, 2018

Duke Energy reports second quarter 2018 financial results

• ▪ Second quarter 2018 GAAP EPS of $0.71; adjusted EPS of $0.93

• ▪ Company delivering on commitments as it executes on long-term strategy

• ▪ Company reaffirms 2018 adjusted EPS guidance range of $4.55 to $4.85

CHARLOTTE, N.C. - Duke Energy (NYSE: DUK) today announced second quarter 2018 reported diluted earnings per share (EPS), prepared in accordance with Generally Accepted Accounting Principles (GAAP) of $0.71, compared to $0.98 for the second quarter of 2017. Duke Energy's second quarter 2018 adjusted diluted EPS was $0.93, compared to $1.01 for the second quarter of 2017. The company remains on track to achieve its earnings targets for the year.

Adjusted diluted EPS excludes the impact of certain items that are included in GAAP reported diluted EPS. The difference between second quarter 2018 GAAP reported diluted EPS and adjusted diluted EPS was primarily due to charges related to the Duke Energy Carolinas (DEC) North Carolina rate case order.

Adjusted diluted EPS for second quarter 2018 was lower than the prior year primarily due to a lower tax shield on holding company interest as a result of the Tax Cuts and Jobs Act of 2017 (Tax Act), higher depreciation from a growing asset base, and higher operation and maintenance expense (O&M) including storm costs; partially offset by warmer weather and contributions from the Duke Energy Progress (DEP) North Carolina rate case.

"Our second quarter results reinforce confidence as we deliver on our long-term strategy, creating value for customers and growth for investors," said Lynn Good, Duke Energy chairman, president and CEO. "We have executed on our plan during the first half of the year - reaching constructive regulatory outcomes in the Carolinas, addressing tax reform impacts in our largest jurisdictions and making progress on key infrastructure investments like the Atlantic Coast Pipeline. We have the right strategy and are on track to achieve our full-year guidance for 2018."

Business segment results

In addition to the following summary of second quarter 2018 business segment performance, comprehensive tables with detailed EPS drivers for the second quarter compared to prior year are provided in the tables at the end of this news release.

Duke Energy News Release

2

The discussion below of second quarter results includes both GAAP segment income and adjusted segment income, which is a non-GAAP financial measure. The tables at the end of this news release present a full reconciliation of GAAP reported results to adjusted results.

Electric Utilities and Infrastructure

On a reported basis, Electric Utilities and Infrastructure recognized second quarter 2018 segment income of $575 million, compared to $729 million in the second quarter of 2017. In addition to the drivers outlined below, second quarter 2018 results were impacted by $136 million in after-tax charges primarily related to the DEC North Carolina rate case order. This amount was treated as a special item and excluded from adjusted earnings.

On an adjusted basis, Electric Utilities and Infrastructure recognized second quarter 2018 adjusted segment income of $711 million, compared to $729 million in the second quarter of 2017, a decrease of $0.03 per share.

Lower quarterly results at Electric Utilities and Infrastructure were driven by higher depreciation and amortization expense (-$0.07 per share) primarily due to a growing asset base, higher O&M expense (-$0.03 per share) including storm restoration costs, the resolution of FERC accounting matters (-$0.02 per share), and lower AFUDC equity (-$0.02 per share). These unfavorable drivers were partially offset by warmer weather (+$0.07 per share), higher rider revenues (+$0.04 per share) and the DEP rate case contribution (+$0.02 per share).

Gas Utilities and Infrastructure

On a reported and adjusted basis, Gas Utilities and Infrastructure recognized second quarter 2018 segment income of $28 million, compared to $27 million in the second quarter of 2017. As expected, results at Gas Utilities and Infrastructure were flat for the quarter, with the bulk of the remaining earnings expected to come in the fourth quarter.

Commercial Renewables

On a reported and adjusted basis, Commercial Renewables recognized second quarter 2018 segment income of $38 million, compared to $26 million in the second quarter of 2017, an increase of $0.02 per share. Higher quarterly results at Commercial Renewables were primarily due to a favorable settlement on a contractual agreement.

Other

Other primarily includes interest expense on holding company debt, other unallocated corporate costs and results from Duke Energy's captive insurance company.

On a reported basis, Other recognized a second quarter 2018 net loss of $136 million, compared to a net loss of $94 million in the second quarter of 2017. In addition to the drivers outlined below, second quarter 2018 results were impacted by costs to achieve the Piedmont merger. These costs were treated as special items and excluded from adjusted earnings.

On an adjusted basis, Other recognized a second quarter 2018 adjusted net loss of $121 million, compared to an adjusted net loss of $75 million in the second quarter of 2017, a difference of $0.07 per share. Lower quarterly results at Other were primarily due to a lower