EX-99.1 2 er-20190331earningrelease991.htm EXHIBIT 99.1

Exhibit

News Release

Media Contact: Catherine Butler

24-Hour: 800.559.3853

Analyst Contact: Mike Callahan

Office: 704.382.0459

May 9, 2019    

Duke Energy reports first quarter 2019 financial results

▪ First quarter 2019 GAAP and adjusted EPS of $1.24

▪ Company affirms 2019 adjusted EPS guidance range of $4.80 to $5.20

▪ 1,250 megawatts of renewables projects announced this year to be owned or procured on behalf of customers

CHARLOTTE, N.C. – Duke Energy (NYSE: DUK) today announced first quarter 2019 reported diluted earnings per share (EPS), prepared in accordance with Generally Accepted Accounting Principles (GAAP), and adjusted diluted EPS of $1.24. This is compared to reported and adjusted diluted EPS of $0.88 and $1.28, respectively, for the first quarter of 2018. Adjusted diluted EPS excludes the impact of certain items that are included in GAAP reported diluted EPS.

Lower first quarter 2019 adjusted results were primarily driven by unfavorable weather and share dilution, partially offset by growth from investments at the electric and gas utilities.

“We remain on track to deliver full-year results within our 2019 earnings guidance range of $4.80 to $5.20 per share,” said Lynn Good, Duke Energy chairman, president and CEO. “We will continue to execute our long-term strategy to generate cleaner energy, modernize the energy grid and expand natural gas infrastructure to deliver value for customers and investors."

“With the announcement of more than 1,250 megawatts of new regulated and commercial renewables projects, we advanced our vision to provide cleaner energy across our footprint. We were also pleased to announce a partnership with John Hancock in our commercial renewables business — a clear validation of the strength of our existing portfolio.”

Business segment results

In addition to the following summary of first quarter 2019 business segment performance, comprehensive tables with detailed EPS drivers for the first quarter compared to prior year are provided in the tables at the end of this news release.

The discussion below of first 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.

Duke Energy News Release     2

Electric Utilities and Infrastructure

On a reported and adjusted basis, Electric Utilities and Infrastructure recognized first quarter 2019 segment income of $750 million. This is compared to reported and adjusted earnings of $750 million and $816 million, respectively, in the first quarter of 2018. First quarter 2018 reported results were impacted by $66 million in after-tax charges related to the Duke Energy Progress North Carolina rate case order. This amount was treated as a special item and excluded from adjusted earnings.

On an adjusted basis, this represents a decrease of $0.10 per share, excluding share dilution of $0.04 per share. Lower quarterly results at Electric Utilities and Infrastructure were primarily due to unfavorable weather (-$0.07 per share), lower volumes (-$0.03 per share), higher depreciation and amortization expense (-$0.03 per share) on a growing asset base, and higher interest expense (-$0.03 per share); partially offset by contributions from base rate changes (+$0.09 per share).

Gas Utilities and Infrastructure

On a reported and adjusted basis, Gas Utilities and Infrastructure recognized first quarter 2019 segment income of $226 million. This is compared to reported and adjusted earnings of $116 million and $158 million, respectively, in the first quarter of 2018. First quarter 2018 reported results were impacted by a $42 million after-tax impairment charge related to the Constitution pipeline investment, which was treated as a special item and excluded from adjusted earnings.

On an adjusted basis, this represents an increase of $0.10 per share. Higher quarterly results at Gas Utilities and Infrastructure were driven by higher earnings from midstream investments (+$0.08 per share), primarily due to a true-up adjustment related to income tax recognition for equity method investments.

Commercial Renewables

On a reported and adjusted basis, Commercial Renewables recognized first quarter 2019 segment income of $13 million, compared to $20 million in the first quarter of 2018, a decrease of $0.01 per share. Lower quarterly results were primarily due to lower wind production.

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 and adjusted basis, Other recognized a first quarter 2019 net loss of $89 million. This is compared to a reported and adjusted net loss of $266 million and $95 million, respectively, in the first quarter of 2018. First quarter 2018 reported results were impacted by an $82 million after-tax loss on sale of the retired Beckjord plant in Ohio, the recognition of a $76 million valuation allowance related to the Tax Act, and costs to achieve the Piedmont merger. These amounts were treated as special items and excluded from adjusted earnings.

Duke Energy News Release     3

Effective Tax Rate

On a reported and adjusted basis, Duke Energy's consolidated effective tax rate for the first quarter of 2019 was 9.6 percent. This is compared to a reported and adjusted effective tax rate of 22.5 percent and 15.7 percent, respectively, in the first quarter of 2018. The decrease in the adjusted effective tax rate was primarily due to a true-up adjustment related to income tax recognition for equity method investments in the first quarter of 2019 and the amortization of excess deferred taxes. Adjusted effective tax rate is a non-GAAP financial measure. The tables at the end of this news release present a reconciliation of the reported effective tax rate to the adjusted effective tax rate.

Earnings conference call for analysts

An earnings conference call for analysts is scheduled from 10 to 11 a.m. ET today to discuss first quarter 2019 financial results and other business and financial updates. The conference call will be hosted by Lynn Good, chairman, president and chief executive officer, and Steve Young, executive vice president and chief financial officer.

The call can be accessed via the investors section (duke-energy.com/investors) of Duke Energy’s website or by dialing 888-254-3590 in the United States or 323-994-2093 outside the United States. The confirmation code is 1767856. 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 19, 2019, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 1767856. An audio replay and transcript will also be available by accessing the investors section of the company’s website.

Special Items and Non-GAAP Reconciliation

The following table presents a reconciliation of GAAP reported to adjusted diluted EPS for first quarter 2018 financial results:

(In millions, except per-share amounts)	After-Tax Amount			1Q 2018 EPS
Diluted EPS, as reported				$	0.88
Adjustments to reported EPS:
First Quarter 2018
Costs to achieve Piedmont merger	$	13		0.02
Regulatory settlements	66			0.09
Sale of retired plant	82			0.12
Impairment of equity method investment	42			0.06
Impacts of the Tax Act (Alternative Minimum Tax valuation allowance)	76			0.11
Total adjustments	$	279		$	0.40
Diluted EPS, adjusted				$	1.28

Duke Energy News Release     4

Non-GAAP financial measures

Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings, adjusted diluted EPS and adjusted effective tax rate. Adjusted earnings and adjusted diluted EPS represent income from continuing operations attributable to Duke Energy in dollar and per share amounts, adjusted for the dollar and per-share impact of special items. The adjusted effective tax rate is calculated using pretax earnings and income tax expense, both as adjusted for the impact of special items. As discussed below, special items include certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance.

Management believes the presentation of adjusted earnings, adjusted diluted EPS, and the adjusted effective tax rate provides useful information to investors, as it provides them with an additional relevant comparison of Duke Energy’s performance across periods. Management uses these non-GAAP financial measures for planning and forecasting, and for reporting financial results to the Board of Directors, employees, stockholders, analysts and investors. Adjusted diluted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measures for adjusted earnings, adjusted diluted EPS and adjusted effective tax rate are Net Income Attributable to Duke Energy Corporation (GAAP reported earnings), Diluted EPS Attributable to Duke Energy Corporation common stockholders (GAAP reported EPS), and the reported effective tax rate, respectively.

Special items included in the periods presented include the following items, which management believes do not reflect ongoing costs:

• Costs to Achieve Piedmont Merger represents charges that result from the Piedmont acquisition.

• Regulatory Settlements represents charges related to rate case orders, settlements or other actions of regulators.

• Sale of Retired Plant represents the loss associated with selling Beckjord Generating Station (Beckjord), a nonregulated generating facility in Ohio.

• Impairment of Equity Method Investment represents an OTTI of an investment in Constitution.

• Impacts of the Tax Act represents an AMT valuation allowance recognized related to the Tax Act.

Due to the forward-looking nature of any forecasted adjusted earnings guidance, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items for future periods (such as legal settlements, the impact of regulatory orders or asset impairments).

Management evaluates segment performance based on segment income and other net loss. Segment income is defined as income from continuing operations attributable to Duke Energy. Segment income includes intercompany revenues and expenses that are eliminated in the

Duke Energy News Release     5

Condensed Consolidated Financial Statements. Management also uses adjusted segment income as a measure of historical and anticipated future segment performance. Adjusted segment income is a non-GAAP financial measure, as it is based upon segment income adjusted for special items, which are discussed above. Management believes the presentation of adjusted segment income provides useful information to investors, as it provides them with an additional relevant comparison of a segment’s performance across periods. The most directly comparable GAAP measure for adjusted segment income or adjusted other net loss is segment income and other net loss.

Due to the forward-looking nature of any forecasted adjusted segment income or adjusted other net loss 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 all special items, as discussed above.

Duke Energy’s adjusted earnings, adjusted diluted EPS and adjusted segment income may not be comparable to similarly titled measures of another company because other companies may not calculate the measures in the same manner.

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 125 company headquartered in Charlotte, N.C., is one of the largest energy holding companies in the U.S. It employs 30,000 people and has an electric generating capacity of 51,000 megawatts through its regulated utilities, and 3,000 megawatts through its nonregulated Duke Energy Renewables unit.

Duke Energy is transforming its customers’ experience, modernizing the energy grid, generating cleaner energy and expanding natural gas infrastructure to create a smarter energy future for the people and communities it serves. The Electric Utilities and Infrastructure unit’s regulated utilities serve approximately 7.7 million retail electric customers in six states - North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. The Gas Utilities and Infrastructure unit distributes natural gas to more than 1.6 million customers in five states - North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The Duke Energy Renewables unit operates wind and solar generation facilities across the U.S., as well as energy storage and microgrid projects.

Duke Energy was named to Fortune’s 2019 “World’s Most Admired Companies” list, and Forbes’ 2019 “America’s Best Employers” list. More information about the company is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, videos and other materials. Duke Energy’s illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

Duke Energy News Release     6

Forward-Looking Information

This document 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 and can often be identified by terms and phrases that include “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “should,” “could,” “may,” “plan,” “project,” “predict,” “will,” “potential,” “forecast,” “target,” “guidance,” “outlook” or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to:

◦ State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices;

◦ The extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate;

◦ The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process;

◦ The costs of decommissioning Crystal River Unit 3 and other nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process;

◦ Costs and effects of legal and administrative proceedings, settlements, investigations and claims;

◦ Industrial, commercial and residential growth or decline in service territories or customer bases resulting from sustained downturns of the economy and the economic health of our service territories or variations in customer usage patterns, including energy efficiency efforts and use of alternative energy sources, such as self-generation and distributed generation technologies;

◦ Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs;

◦ Advancements in technology;

◦ Additional competition in electric and natural gas markets and continued industry consolidation;

◦ The influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme weather associated with climate change;

◦ The ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources;

◦ The ability to obtain the necessary permits and approvals and to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business;

◦ Operational interruptions to our natural gas distribution and transmission activities;

◦ The availability of adequate interstate pipeline transportation capacity and natural gas supply;

◦ The impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, operational accidents, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences;

◦ The inherent risks associated with the operation of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including the financial stability of third-party service providers;

◦ The timing and extent of changes in commodity prices and interest rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets;

Duke Energy News Release     7

◦ The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions and general market and economic conditions;

◦ Credit ratings of the Duke Energy Registrants may be different from what is expected;

◦ Declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans and nuclear decommissioning trust funds;

◦ Construction and development risks associated with the completion of the Duke Energy Registrants’ capital investment projects, 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 customers in a timely manner, or at all;

◦ Changes in rules for regional transmission organizations, including changes in rate designs and new and evolving capacity markets, and risks related to obligations created by the default of other participants;

◦ The ability to control operation and maintenance costs;

◦ The level of creditworthiness of counterparties to transactions;

◦ Employee workforce factors, including the potential inability to attract and retain key personnel;

◦ The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent);

◦ The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities;

◦ The effect of accounting pronouncements issued periodically by accounting standard-setting bodies;

◦ The impact of U.S. tax legislation to our financial condition, results of operations or cash flows and our credit ratings;

◦ The impacts from potential impairments of goodwill or equity method investment carrying values; and

◦ The ability to implement our business strategy, including enhancing existing technology systems.

Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at 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 described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Three Months Ended March 31, 2018

(Dollars in millions, except per-share amounts)

						Special Items
		Reported Earnings				Costs to Achieve Piedmont Merger				Regulatory Settlements				Sale of Retired Plant				Impairment of Equity Method Investment				Impacts of the Tax Act				Total Adjustments				Adjusted Earnings
SEGMENT INCOME
Electric Utilities and Infrastructure		$	750			$	—			$	66		B	$	—			$	—			$	—			$	66			$	816
Gas Utilities and Infrastructure		116				—				—				—				42			D	—				42				158
Commercial Renewables		20				—				—				—				—				—				—				20
Total Reportable Segment Income		886				—				66				—				42				—				108				994
Other		(266		)		13			A	—				82			C	—				76			E	171				(95		)
Net Income Attributable to Duke Energy Corporation		$	620			$	13			$	66			$	82			$	42			$	76			$	279			$	899
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED		$	0.88			$	0.02			$	0.09			$	0.12			$	0.06			$	0.11			$	0.40			$	1.28

A — Net of $4 million tax benefit. $17 million recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.

B — Net of $20 million tax benefit. $45 million recorded within Impairment Charges, $35 million within Operating Expenses and $6 million within Interest Expense on the Condensed Consolidated Statements of Operations.

C — Net of $25 million tax benefit. $107 million recorded within Losses on Sales of Other Assets and Other, net on the Condensed Consolidated Statements of Operations.

D — Net of $13 million tax benefit. $55 million recorded within Other Income and Expenses on the Condensed Consolidated Statements of Operations.

E — $76 million AMT valuation allowance within Income Tax Expense on the Condensed Consolidated Statements of Operations.

Weighted Average Shares, Diluted (reported and adjusted) — 701 million

8

DUKE ENERGY CORPORATION

ADJUSTED EFFECTIVE TAX RECONCILIATION

March 2018

(Dollars in millions)

		Three Months Ended   March 31, 2018
		Balance				Effective Tax Rate
Reported Income From Continuing Operations Before Income Taxes		$	803
Costs to Achieve Piedmont Merger		17
Regulatory Settlements		86
Sale of Retired Plant		107
Impairment of Equity Method Investment		55
Noncontrolling Interests		(2		)
Adjusted Pretax Income		$	1,066
Reported Income Tax Expense From Continuing Operations		$	181			22.5	%
Costs to Achieve Piedmont Merger		4
Regulatory Settlements		20
Sale of Retired Plant		25
Impairment of Equity Method Investment		13
Impacts of the Tax Act		(76		)
Adjusted Tax Expense		$	167			15.7	%	(a)
(a) Adjusted effective tax rate is a non-GAAP financial measure as the rate is calculated using pretax earnings and income tax expense, both adjusted for the impact of special items. The most directly comparable GAAP measure for adjusted effective tax rate is reported effective tax rate, which includes the impact of special items.

9

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

March 2019 YTD vs. Prior Year

	Electric Utilities and Infrastructure					Gas Utilities and Infrastructure					Commercial Renewables					Other					Consolidated
(Dollars per share)
2018 YTD Reported Earnings Per Share, Diluted	$	1.08				$	0.16				$	0.03				$	(0.39	)			$	0.88
Costs to Achieve Piedmont Merger	—					—					—					0.02					0.02
Regulatory Settlements	0.09					—					—					—					0.09
Sale of Retired Plant	—					—					—					0.12					0.12
Impairment of Equity Method Investment	—					0.06					—					—					0.06
Impacts of the Tax Act (Alternative Minimum Tax valuation allowance)	—					—					—					0.11					0.11
2018 YTD Adjusted Earnings Per Share, Diluted	$	1.17				$	0.22				$	0.03				$	(0.14	)			$	1.28
Weather	(0.07		)			—					—					—					(0.07		)
Volume	(0.03		)			—					—					—					(0.03		)
Pricing and Riders, excluding rate case impacts	0.04					0.02					—					—					0.06
Rate case impacts, net(a)	0.09					—					—					—					0.09
Operations and maintenance, net of recoverables	(0.01		)			—					—					—					(0.01		)
Midstream Gas Pipelines(b)	—					0.08					—					—					0.08
Duke Energy Renewables	—					—					(0.01		)			—					(0.01		)
Interest Expense	(0.03		)			—					—					(0.01		)			(0.04		)
AFUDC Equity	(0.03		)			—					—					—					(0.03		)
Depreciation and amortization(c)	(0.03		)			—					—					—					(0.03		)
Other	(0.03		)			—					—					0.02					(0.01		)
Change in share count	(0.04		)			—					—					—					(0.04		)
2019 YTD Reported Earnings Per Share, Diluted	$	1.03				$	0.32				$	0.02				$	(0.13	)			$	1.24
Note: Earnings Per Share amounts are calculated using the consolidated statutory income tax rate for all drivers except for Commercial Renewables, which uses an effective rate. Weighted average diluted shares outstanding increased from 701 million shares to 727 million.
(a) Includes the net impact of the DEC and DEP North Carolina rate cases (+$0.03), DEO and DEK rate cases (+$0.02), and DEF impacts (+$0.04 related to GBRA, SBRA and multi-year rate plan), which is primarily comprised of rate increases partially offset by higher depreciation and amortization expense.
(b) Primarily due to a prior period adjustment related to income tax recognition for equity method investments.
(c) Excludes rate case impacts.

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March 2019
QUARTERLY HIGHLIGHTS
(Unaudited)
	Three Months Ended
	March 31,
(In millions, except per-share amounts and where noted)	2019				2018
Earnings Per Share — Basic and Diluted
Net income attributable to Duke Energy Corporation common stockholders
Basic and diluted	$	1.24			$	0.88
Weighted average shares outstanding
Basic and diluted	727				701
INCOME (LOSS) BY BUSINESS SEGMENT
Electric Utilities and Infrastructure	$	750			$	750
Gas Utilities and Infrastructure(a)	226				116
Commercial Renewables	13				20
Total Reportable Segment Income	989				886
Other(b)	(89		)		(266		)
Net Income Attributable to Duke Energy Corporation	$	900			$	620
CAPITALIZATION
Total Common Equity (%)	43		%		43		%
Total Debt (%)	57		%		57		%
Total Debt	$	59,211			$	55,950
Book Value Per Share	$	61.88			$	59.63
Actual Shares Outstanding	728				701
CAPITAL AND INVESTMENT EXPENDITURES
Electric Utilities and Infrastructure	$	2,113			$	1,773
Gas Utilities and Infrastructure	364				228
Commercial Renewables	90				87
Other	63				73
Total Capital and Investment Expenditures	$	2,630			$	2,161
(a) Includes an other-than-temporary impairment of an investment in Constitution for the three months ended March 2018 and an adjustment related to the income tax recognition for equity method investments for the three months ended March 31, 2019. This adjustment was immaterial and relates to prior years.
(b) Includes costs to achieve the Piedmont merger, the loss associated with selling Beckjord, and an Alternative Minimum Tax valuation allowance recognized related to the Tax Act for the three months ended March 31, 2018.

11

DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except per-share amounts)
	Three Months Ended March 31,
	2019				2018
Operating Revenues
Regulated electric	$	5,285			$	5,284
Regulated natural gas	728				700
Nonregulated electric and other	150				151
Total operating revenues	6,163				6,135
Operating Expenses
Fuel used in electric generation and purchased power	1,609				1,676
Cost of natural gas	327				313
Operation, maintenance and other	1,419				1,464
Depreciation and amortization	1,089				967
Property and other taxes	343				316
Impairment charges	—				43
Total operating expenses	4,787				4,779
Losses on Sales of Other Assets and Other, net	(3		)		(100		)
Operating Income	1,373				1,256
Other Income and Expenses
Equity in earnings (losses) of unconsolidated affiliates	43				(24		)
Other income and expenses, net	115				86
Total other income and expenses	158				62
Interest Expense	543				515
Income Before Income Taxes	988				803
Income Tax Expense	95				181
Net Income	893				622
Less: Net (Loss) Income Attributable to Noncontrolling Interests	(7		)		2
Net Income Attributable to Duke Energy Corporation	$	900			$	620
Earnings Per Share — Basic and Diluted
Net income attributable to Duke Energy Corporation common stockholders
Basic and diluted	$	1.24			$	0.88
Weighted average shares outstanding
Basic and diluted	727				701

12

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions)	March 31, 2019				December 31, 2018
ASSETS
Current Assets
Cash and cash equivalents	$	377			$	442
Receivables (net of allowance for doubtful accounts of $19 at 2019 and $16 at 2018)	775				962
Receivables of VIEs (net of allowance for doubtful accounts of $56 at 2019 and $55 at 2018)	1,981				2,172
Inventory	3,102				3,084
Regulatory assets (includes $52 at 2019 and 2018 related to VIEs)	1,957				2,005
Other (includes $152 at 2019 and $162 at 2018 related to VIEs)	976				1,049
Total current assets	9,168				9,714
Property, Plant and Equipment
Cost	139,377				134,458
Accumulated depreciation and amortization	(43,992		)		(43,126		)
Generation facilities to be retired, net	336				362
Net property, plant and equipment	95,721				91,694
Operating Lease Right-of-Use Assets, net	1,698				—
Other Noncurrent Assets
Goodwill	19,303				19,303
Regulatory assets (includes $1,032 at 2019 and $1,041 at 2018 related to VIEs)	13,301				13,617
Nuclear decommissioning trust funds	7,374				6,720
Investments in equity method unconsolidated affiliates	1,602				1,409
Other (includes $280 at 2019 and $261 at 2018 related to VIEs)	2,969				2,935
Total other noncurrent assets	44,549				43,984
Total Assets	$	151,136			$	145,392
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	2,538			$	3,487
Notes payable and commercial paper	3,029				3,410
Taxes accrued	470				577
Interest accrued	544				559
Current maturities of long-term debt (includes $227 at 2019 and 2018 related to VIEs)	2,501				3,406
Asset retirement obligations	779				919
Regulatory liabilities	611				598
Other	1,810				2,085
Total current liabilities	12,282				15,041
Long-Term Debt (includes $4,065 at 2019 and $3,998 at 2018 related to VIEs)	53,681				51,123
Operating Lease Liabilities	1,488				—
Other Noncurrent Liabilities
Deferred income taxes	8,040				7,806
Asset retirement obligations	12,256				9,548
Regulatory liabilities	15,212				14,834
Accrued pension and other post-retirement benefit costs	974				988
Investment tax credits	571				568
Other (includes $212 at 2019 and 2018 related to VIEs)	1,587				1,650
Total other noncurrent liabilities	38,640				35,394
Commitments and Contingencies
Equity
Preferred stock, $0.001 par value, 40 million depositary shares authorized and outstanding at 2019	974				—
Common stock, $0.001 par value, 2 billion shares authorized; 728 million shares outstanding at 2019 and 727 million shares outstanding at 2018	1				1
Additional paid-in capital	40,823				40,795
Retained earnings	3,360				3,113
Accumulated other comprehensive loss	(128		)		(92		)
Total Duke Energy Corporation stockholders' equity	45,030				43,817
Noncontrolling interests	15				17
Total equity	45,045				43,834
Total Liabilities and Equity	$	151,136			$	145,392

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DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
		Three Months Ended March 31,
		2019				2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income		$	893			$	622
Adjustments to reconcile net income to net cash provided by operating activities		346				769
Net cash provided by operating activities		1,239				1,391
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities		(2,713		)		(2,264		)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by financing activities		1,433				947
Net (decrease) increase in cash, cash equivalents and restricted cash		(41		)		74
Cash, cash equivalents and restricted cash at beginning of period		591				505
Cash, cash equivalents and restricted cash at end of period		$	550			$	579

14

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended March 31, 2019
(In millions)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables			Other			Eliminations/Adjustments			Duke Energy
Operating Revenues
Regulated electric	$	5,329		$	—		$	—		$	—		$	(44	)	$	5,285
Regulated natural gas	—			752			—			—			(24		)	728
Nonregulated electric and other	—			4			106			21			19			150
Total operating revenues	5,329			756			106			21			(49		)	6,163
Operating Expenses
Fuel used in electric generation and purchased power	1,630			—			—			—			(21		)	1,609
Cost of natural gas	—			327			—			—			—			327
Operation, maintenance and other	1,282			110			66			(13		)	(26		)	1,419
Depreciation and amortization	947			65			40			38			(1		)	1,089
Property and other taxes	301			33			6			3			—			343
Impairment charges	—			—			—			—			—			—
Total operating expenses	4,160			535			112			28			(48		)	4,787
Losses on Sales of Other Assets and Other, net	(3		)	—			—			—			—			(3		)
Operating Income (Loss)	1,166			221			(6		)	(7		)	(1		)	1,373
Other Income and Expenses
Equity in earnings (losses) of unconsolidated affiliates	2			33			(1		)	9			—			43
Other income and expenses, net	89			7			(1		)	35			(15		)	115
Total Other Income and Expenses	91			40			(2		)	44			(15		)	158
Interest Expense	338			30			21			171			(17		)	543
Income (Loss) Before Income Taxes	919			231			(29		)	(134		)	1			988
Income Tax Expense (Benefit)	169			5			(35		)	(45		)	1			95
Net Income (Loss)	750			226			6			(89		)	—			893
Less: Net Loss Attributable to Noncontrolling Interest	—			—			(7		)	—			—			(7		)
Segment Income / Other Net Loss / Net Income Attributable to Duke Energy Corporation	$	750		$	226		$	13		$	(89	)	$	—		$	900

15

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended March 31, 2018
(In millions)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables			Other			Eliminations/Adjustments			Duke Energy
Operating Revenues
Regulated electric	$	5,323		$	—		$	—		$	—		$	(39	)	$	5,284
Regulated natural gas	—			725			—			—			(25		)	700
Nonregulated electric and other	—			2			101			35			13			151
Total operating revenues	5,323			727			101			35			(51		)	6,135
Operating Expenses
Fuel used in electric generation and purchased power	1,685			—			—			14			(23		)	1,676
Cost of natural gas	—			313			—			—			—			313
Operation, maintenance and other	1,325			108			55			3			(27		)	1,464
Depreciation and amortization	835			61			38			33			—			967
Property and other taxes	274			31			7			4			—			316
Impairment charges	43			—			—			—			—			43
Total operating expenses	4,162			513			100			54			(50		)	4,779
Gains (Losses) on Sales of Other Assets and Other, net	1			—			—			(101		)	—			(100		)
Operating Income (Loss)	1,162			214			1			(120		)	(1		)	1,256
Other Income and Expenses
Equity in earnings (losses) of unconsolidated affiliates	2			(40		)	—			13			1			(24		)
Other income and expenses, net	86			5			2			1			(8		)	86
Total Other Income and Expenses	88			(35		)	2			14			(7		)	62
Interest Expense	317			27			22			157			(8		)	515
Income (Loss) Before Income Taxes	933			152			(19		)	(263		)	—			803
Income Tax Expense (Benefit)	183			36			(39		)	1			—			181
Net Income (Loss)	750			116			20			(264		)	—			622
Less: Net Income Attributable to Noncontrolling Interest	—			—			—			2			—			2
Segment Income / Other Net Loss / Net Income Attributable to Duke Energy Corporation	$	750		$	116		$	20		$	(266	)	$	—		$	620
Special Items	66			42			—			171			—			279
Adjusted Earnings(a)	$	816		$	158		$	20		$	(95	)	$	—		$	899

(a) See Reported To Adjusted Earnings Reconciliation above for a detailed reconciliation of Segment Income / Other Net Loss to Adjusted Earnings.

16

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS — ASSETS

(Unaudited)

	March 31, 2019
(In millions)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables			Other			Eliminations/ Adjustments			Duke Energy
Current Assets
Cash and cash equivalents	$	72		$	3		$	7		$	296		$	(1	)	$	377
Receivables, net	444			241			77			14			(1		)	775
Receivables of variable interest entities, net	1,981			—			—			—			—			1,981
Receivables from affiliated companies	76			19			1,381			492			(1,968		)	—
Notes receivable from affiliated companies	126			155			—			1,248			(1,529		)	—
Inventory	2,993			50			33			27			(1		)	3,102
Regulatory assets	1,799			29			—			129			—			1,957
Other	156			19			134			717			(50		)	976
Total current assets	7,647			516			1,632			2,923			(3,550		)	9,168
Property, Plant and Equipment
Cost	121,794			10,781			4,614			2,230			(42		)	139,377
Accumulated depreciation and amortization	(39,513		)	(2,376		)	(889		)	(1,215		)	1			(43,992		)
Generation facilities to be retired, net	336			—			—			—			—			336
Net property, plant and equipment	82,617			8,405			3,725			1,015			(41		)	95,721
Operating Lease Right-of-Use Assets, net	1,323			27			80			268			—			1,698
Other Noncurrent Assets
Goodwill	17,379			1,924			—			—			—			19,303
Regulatory assets	12,187			631			—			483			—			13,301
Nuclear decommissioning trust funds	7,374			—			—			—			—			7,374
Investments in equity method unconsolidated affiliates	103			1,184			199			116			—			1,602
Investment in consolidated subsidiaries	242			19			4			60,223			(60,488		)	—
Other	2,112			75			123			1,293			(634		)	2,969
Total other noncurrent assets	39,397			3,833			326			62,115			(61,122		)	44,549
Total Assets	130,984			12,781			5,763			66,321			(64,713		)	151,136
Segment reclassifications, intercompany balances and other	(578		)	(142		)	(1,385		)	(62,785		)	64,890			—
Segment Assets	$	130,406		$	12,639		$	4,378		$	3,536		$	177		$	151,136

17

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS — LIABILITIES AND EQUITY

(Unaudited)

	March 31, 2019
(In millions)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables			Other			Eliminations/ Adjustments			Duke Energy
Current Liabilities
Accounts payable	$	1,815		$	223		$	47		$	454		$	(1	)	$	2,538
Accounts payable to affiliated companies	576			35			11			1,277			(1,899		)	—
Notes payable to affiliated companies	1,123			195			15			215			(1,548		)	—
Notes payable and commercial paper	—			—			5			3,024			—			3,029
Taxes accrued	418			48			(21		)	24			1			470
Interest accrued	378			37			1			129			(1		)	544
Current maturities of long-term debt	1,102			377			174			850			(2		)	2,501
Asset retirement obligations	779			—			—			—			—			779
Regulatory liabilities	515			94			—			2			—			611
Other	1,358			54			30			469			(101		)	1,810
Total current liabilities	8,064			1,063			262			6,444			(3,551		)	12,282
Long-Term Debt	33,421			2,429			1,584			16,287			(40		)	53,681
Long-Term Debt Payable to Affiliated Companies	618			7			9			—			(634		)	—
Operating Lease Liabilities	1,195			26			96			171			—			1,488
Other Noncurrent Liabilities
Deferred income taxes	9,711			905			(263		)	(2,314		)	1			8,040
Asset retirement obligations	12,075			57			124			—			—			12,256
Regulatory liabilities	13,622			1,563			—			28			(1		)	15,212
Accrued pension and other post-retirement benefit costs	652			26			3			292			1			974
Investment tax credits	569			2			—			—			—			571
Other	857			211			228			293			(2		)	1,587
Total other noncurrent liabilities	37,486			2,764			92			(1,701		)	(1		)	38,640
Equity
Total Duke Energy Corporation stockholders' equity	50,200			6,492			3,708			45,118			(60,488		)	45,030
Noncontrolling interests	—			—			12			2			1			15
Total equity	50,200			6,492			3,720			45,120			(60,487		)	45,045
Total Liabilities and Equity	130,984			12,781			5,763			66,321			(64,713		)	151,136
Segment reclassifications, intercompany balances and other	(578		)	(142		)	(1,385		)	(62,785		)	64,890			—
Segment Liabilities and Equity	$	130,406		$	12,639		$	4,378		$	3,536		$	177		$	151,136

18

ELECTRIC UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING SEGMENT INCOME

(Unaudited)

	Three Months Ended March 31, 2019
(In millions)	Duke Energy Carolinas			Duke Energy Progress			Duke Energy Florida			Duke Energy Ohio(a)			Duke Energy Indiana			Eliminations/ Other			Electric Utilities and Infrastructure
Operating Revenues	$	1,744		$	1,484		$	1,086		$	355		$	768		$	(108	)	$	5,329
Operating Expenses
Fuel used in electric generation and purchased power	472			515			410			93			257			(117		)	1,630
Operation, maintenance and other	435			331			228			101			187			—			1,282
Depreciation and amortization	317			290			165			41			131			3			947
Property and other taxes	80			44			93			64			19			1			301
Total operating expenses	1,304			1,180			896			299			594			(113		)	4,160
Losses on Sales of Other Assets and Other, net	—			—			—			—			(3		)	—			(3		)
Operating Income	440			304			190			56			171			5			1,166
Other Income and Expenses, net(b)	31			24			13			6			19			(2		)	91
Interest Expense	110			77			82			22			43			4			338
Income Before Income Taxes	361			251			121			40			147			(1		)	919
Income Tax Expense	64			46			23			4			36			(4		)	169
Segment Income	$	297		$	205		$	98		$	36		$	111		$	3		$	750

(a) Includes results of the wholly owned subsidiary, Duke Energy Kentucky.

(b) Includes an equity component of allowance for funds used during construction of $9 million for Duke Energy Carolinas, $14 million for Duke Energy Progress, $1 million for Duke Energy Florida, $3 million for Duke Energy Ohio and $4 million for Duke Energy Indiana.

19

ELECTRIC UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS — ASSETS

(Unaudited)

	March 31, 2019
(In millions)	Duke Energy Carolinas			Duke Energy Progress			Duke Energy Florida			Duke Energy Ohio(a)			Duke Energy Indiana			Eliminations/ Adjustments(b)			Electric Utilities and Infrastructure
Current Assets
Cash and cash equivalents	$	—		$	30		$	8		$	14		$	20		$	—		$	72
Receivables, net	166			42			85			99			50			2			444
Receivables of variable interest entities, net	630			495			322			—			—			534			1,981
Receivables from affiliated companies	88			28			34			60			102			(236		)	76
Notes receivable from affiliated companies	—			38			—			298			—			(210		)	126
Inventory	1,007			959			505			86			435			1			2,993
Regulatory assets	560			622			454			13			151			(1		)	1,799
Other	31			45			55			2			23			—			156
Total current assets	2,482			2,259			1,463			572			781			90			7,647
Property, Plant and Equipment
Cost	46,929			33,188			19,111			6,421			15,633			512			121,794
Accumulated depreciation and amortization	(15,899		)	(11,635		)	(5,003		)	(1,950		)	(5,021		)	(5		)	(39,513		)
Generation facilities to be retired, net	—			336			—			—			—			—			336
Net property, plant and equipment	31,030			21,889			14,108			4,471			10,612			507			82,617
Operating Lease Right-of-Use Assets, net	146			388			447			22			61			259			1,323
Other Noncurrent Assets
Goodwill	—			—			—			596			—			16,783			17,379
Regulatory assets	3,429			4,041			2,316			370			981			1,050			12,187
Nuclear decommissioning trust funds	3,913			2,744			717			—			—			—			7,374
Investments in equity method unconsolidated affiliates	—			—			—			—			—			103			103
Investment in consolidated subsidiaries	48			13			2			177			1			1			242
Other	1,027			628			318			37			200			(98		)	2,112
Total other noncurrent assets	8,417			7,426			3,353			1,180			1,182			17,839			39,397
Total Assets	42,075			31,962			19,371			6,245			12,636			18,695			130,984
Segment reclassifications, intercompany balances and other	(326		)	(157		)	(46		)	(187		)	(73		)	211			(578		)
Reportable Segment Assets	$	41,749		$	31,805		$	19,325		$	6,058		$	12,563		$	18,906		$	130,406

(a) Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.

(b) Includes the elimination of intercompany balances, purchase accounting adjustments and restricted receivables related to Cinergy Receivables Company.

20

ELECTRIC UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS — LIABILITIES AND EQUITY

(Unaudited)

	March 31, 2019
(In millions)	Duke Energy Carolinas			Duke Energy Progress			Duke Energy Florida			Duke Energy Ohio(a)			Duke Energy Indiana			Eliminations/ Adjustments(b)			Electric Utilities and Infrastructure
Current Liabilities
Accounts payable	$	643		$	363		$	417		$	193		$	198		$	1		$	1,815
Accounts payable to affiliated companies	248			221			29			13			72			(7		)	576
Notes payable to affiliated companies	745			—			399			34			136			(191		)	1,123
Taxes accrued	82			50			95			134			63			(6		)	418
Interest accrued	134			87			74			30			53			—			378
Current maturities of long-term debt	7			5			470			524			3			93			1,102
Asset retirement obligations	209			452			4			6			108			—			779
Regulatory liabilities	200			176			83			30			27			(1		)	515
Other	414			346			426			66			92			14			1,358
Total current liabilities	2,682			1,700			1,997			1,030			752			(97		)	8,064
Long-Term Debt	10,658			8,893			6,795			1,894			3,569			1,612			33,421
Long-Term Debt Payable to Affiliated Companies	300			150			—			18			150			—			618
Operating Lease Liabilities	123			361			387			21			57			246			1,195
Other Noncurrent Liabilities
Deferred income taxes	3,816			2,184			2,052			595			1,050			14			9,711
Asset retirement obligations	5,219			5,471			579			49			611			146			12,075
Regulatory liabilities	6,325			4,093			1,023			471			1,709			1			13,622
Accrued pension and other post-retirement benefit costs	97			235			251			57			113			(101		)	652
Investment tax credits	235			141			42			3			147			1			569
Other	645			91			53			64			29			(25		)	857
Total other noncurrent liabilities	16,337			12,215			4,000			1,239			3,659			36			37,486
Equity	11,975			8,643			6,192			2,043			4,449			16,898			50,200
Total Liabilities and Equity	42,075			31,962			19,371			6,245			12,636			18,695			130,984
Segment reclassifications, intercompany balances and other	(326		)	(157		)	(46		)	(187		)	(73		)	211			(578		)
Reportable Segment Liabilities and Equity	$	41,749		$	31,805		$	19,325		$	6,058		$	12,563		$	18,906		$	130,406

(a) Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.

(b) Includes the elimination of intercompany balances and purchase accounting adjustments.

21

GAS UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING SEGMENT INCOME

(Unaudited)

	Three Months Ended March 31, 2019
(In millions)	Duke Energy Ohio(a)			Piedmont Natural Gas LDC			Midstream Pipelines and Storage(b)			Eliminations/ Adjustments			Gas Utilities and Infrastructure
Operating Revenues	$	176		$	579		$	—		$	1		$	756
Operating Expenses
Cost of natural gas	54			273			—			—			327
Operation, maintenance and other	31			79			2			(2		)	110
Depreciation and amortization	22			42			—			1			65
Property and other taxes	20			12			—			1			33
Total operating expenses	127			406			2			—			535
Operating Income (Loss)	49			173			(2		)	1			221
Other Income and Expenses
Equity in earnings of unconsolidated affiliates	—			—			33			—			33
Other income and expenses, net	3			4			—			—			7
Total other income and expenses	3			4			33			—			40
Interest Expense	7			22			—			1			30
Income Before Income Taxes	45			155			31			—			231
Income Tax Expense	10			36			(38		)	(3		)	5
Segment Income	$	35		$	119		$	69		$	3		$	226

(a) Includes results of the wholly owned subsidiary, Duke Energy Kentucky.

(b) Includes earnings from investments in ACP, Sabal Trail, Constitution and Cardinal pipelines, as well as Hardy and Pine Needle storage facilities.

22

GAS UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS — ASSETS

(Unaudited)

	March 31, 2019
(In millions)	Duke Energy Ohio(a)			Piedmont Natural Gas LDC			Midstream Pipelines and Storage			Eliminations/ Adjustments(b)			Gas Utilities and Infrastructure
Current Assets
Cash and cash equivalents	$	3		$	—		$	—		$	—		$	3
Receivables, net	—			241			—			—			241
Receivables from affiliated companies	16			72			—			(69		)	19
Notes receivable from affiliated companies	171			—			—			(16		)	155
Inventory	25			25			—			—			50
Regulatory assets	1			28			—			—			29
Other	—			19			—			—			19
Total current assets	216			385			—			(85		)	516
Property, Plant and Equipment
Cost	3,121			7,660			—			—			10,781
Accumulated depreciation and amortization	(789		)	(1,588		)	—			1			(2,376		)
Net property, plant and equipment	2,332			6,072			—			1			8,405
Operating Lease Right-of-Use Assets, net	—			27			—			—			27
Other Noncurrent Assets
Goodwill	324			49			—			1,551			1,924
Regulatory assets	176			289			—			166			631
Investments in equity method unconsolidated affiliates	—			—			1,183			1			1,184
Investment in consolidated subsidiaries	—			—			—			19			19
Other	7			51			17			—			75
Total other noncurrent assets	507			389			1,200			1,737			3,833
Total Assets	3,055			6,873			1,200			1,653			12,781
Segment reclassifications, intercompany balances and other	(4		)	(34		)	(9		)	(95		)	(142		)
Reportable Segment Assets	$	3,051		$	6,839		$	1,191		$	1,558		$	12,639

(a) Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.

(b) Includes the elimination of intercompany balances and purchase accounting adjustments.

23

GAS UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS — LIABILITIES AND EQUITY

(Unaudited)

	March 31, 2019
(In millions)	Duke Energy Ohio(a)			Piedmont Natural Gas LDC			Midstream Pipelines and Storage			Eliminations/ Adjustments(b)			Gas Utilities and Infrastructure
Current Liabilities
Accounts payable	$	62		$	161		$	—		$	—		$	223
Accounts payable to affiliated companies	4			39			62			(70		)	35
Notes payable to affiliated companies	11			201			—			(17		)	195
Taxes accrued	12			37			—			(1		)	48
Interest accrued	13			25			—			(1		)	37
Current maturities of long-term debt	27			350			—			—			377
Regulatory liabilities	21			73			—			—			94
Other	2			49			(1		)	4			54
Total current liabilities	152			935			61			(85		)	1,063
Long-Term Debt	490			1,788			—			151			2,429
Long-Term Debt Payable to Affiliated Companies	7			—			—			—			7
Operating Lease Liabilities	—			26			—			—			26
Other Noncurrent Liabilities
Deferred income taxes	263			560			83			(1		)	905
Asset retirement obligations	37			19			—			1			57
Regulatory liabilities	368			1,179			—			16			1,563
Accrued pension and other post-retirement benefit costs	23			4			—			(1		)	26
Investment tax credits	2			1			—			(1		)	2
Other	42			154			15			—			211
Total other noncurrent liabilities	735			1,917			98			14			2,764
Equity	1,671			2,207			1,041			1,573			6,492
Total Liabilities and Equity	3,055			6,873			1,200			1,653			12,781
Segment reclassifications, intercompany balances and other	(4		)	(34		)	(9		)	(95		)	(142		)
Reportable Segment Liabilities and Equity	$	3,051		$	6,839		$	1,191		$	1,558		$	12,639

(a) Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.

(b) Includes the elimination of intercompany balances and purchase accounting adjustments.

24

Electric Utilities and Infrastructure
Quarterly Highlights
March 2019
		Three Months Ended March 31,
		2019			2018			% Inc.(Dec.)			% Inc. (Dec.) Weather Normal (2)
Gigawatt-hour (GWh) Sales (1)
	Residential	22,218			23,741			(6.4	%)		(1.2	%)
	General Service	17,917			18,440			(2.8	%)		(1.2	%)
	Industrial	12,048			12,104			(0.5	%)		0.3	%
	Other Energy Sales	145			140			3.6	%
	Unbilled Sales	(1,336	)		(1,875	)		28.7	%		n/a
	Total Retail Sales	50,992			52,550			(3.0	%)		(0.8	%)
	Wholesale and Other	9,702			10,979			(11.6	%)
	Total Consolidated Electric Sales — Electric Utilities and Infrastructure	60,694			63,529			(4.5	%)
Average Number of Customers (Electric)
	Residential	6,709,086			6,603,814			1.6	%
	General Service	988,438			979,220			0.9	%
	Industrial	17,398			17,600			(1.1	%)
	Other Energy Sales	28,556			23,475			21.6	%
	Total Retail Customers	7,743,478			7,624,109			1.6	%
	Wholesale and Other	51			54			(5.6	%)
	Total Average Number of Customers — Electric Utilities and Infrastructure	7,743,529			7,624,163			1.6	%
Sources of Electric Energy (GWh)
	Generated — Net Output (3)
	Coal	11,486			17,738			(35.2	%)
	Nuclear	18,590			18,505			0.5	%
	Hydro	1,053			754			39.7	%
	Oil and Natural Gas	17,649			16,317			8.2	%
	Renewable Energy	125			96			30.2	%
	Total Generation (4)	48,903			53,410			(8.4	%)
	Purchased Power and Net Interchange (5)	14,912			13,920			7.1	%
	Total Sources of Energy	63,815			67,330			(5.2	%)
	Less: Line Loss and Other	3,121			3,801			(17.9	%)
	Total GWh Sources	60,694			63,529			(4.5	%)
Owned Megawatt (MW) Capacity (3)
	Summer	50,888			49,511
	Winter	54,574			53,003
Nuclear Capacity Factor (%) (6)		98			96
	(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes.
	(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales).
	(3) Statistics reflect Duke Energy's ownership share of jointly owned stations.
	(4) Generation by source is reported net of auxiliary power.
	(5) Purchased power includes renewable energy purchases.
	(6) Statistics reflect 100 percent of jointly owned stations.

25

Duke Energy Carolinas
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2019
		Three Months Ended March 31,
		2019			2018			% Inc.(Dec.)			% Inc. (Dec.) Weather Normal (2)
GWh Sales (1)
	Residential	7,755			8,284			(6.4	%)
	General Service	6,822			6,946			(1.8	%)
	Industrial	4,934			4,984			(1.0	%)
	Other Energy Sales	80			75			6.7	%
	Unbilled Sales	(355	)		(523	)		32.1	%
	Total Retail Sales	19,236			19,766			(2.7	%)		(0.9	%)
	Wholesale and Other	2,592			2,861			(9.4	%)
	Total Consolidated Electric Sales — Duke Energy Carolinas	21,828			22,627			(3.5	%)
Average Number of Customers
	Residential	2,244,914			2,202,857			1.9	%
	General Service	360,183			356,100			1.1	%
	Industrial	6,131			6,206			(1.2	%)
	Other Energy Sales	20,522			15,480			32.6	%
	Total Retail Customers	2,631,750			2,580,643			2.0	%
	Wholesale and Other	20			22			(9.1	%)
	Total Average Number of Customers — Duke Energy Carolinas	2,631,770			2,580,665			2.0	%
Sources of Electric Energy (GWh)
	Generated — Net Output (3)
	Coal	3,222			6,250			(48.4	%)
	Nuclear	11,466			11,638			(1.5	%)
	Hydro	779			525			48.4	%
	Oil and Natural Gas	4,081			3,152			29.5	%
	Renewable Energy	34			29			17.2	%
	Total Generation (4)	19,582			21,594			(9.3	%)
	Purchased Power and Net Interchange (5)	2,902			2,317			25.2	%
	Total Sources of Energy	22,484			23,911			(6.0	%)
	Less: Line Loss and Other	656			1,284			(48.9	%)
	Total GWh Sources	21,828			22,627			(3.5	%)
Owned MW Capacity (3)
	Summer	20,209			19,574
	Winter	21,137			20,385
Nuclear Capacity Factor (%) (6)		100			99
Heating and Cooling Degree Days
	Actual
	Heating Degree Days	1,603			1,721			(6.9	%)
	Cooling Degree Days	4			10			(60.0	%)
	Variance from Normal
	Heating Degree Days	(6.9	%)		(1.3	%)
	Cooling Degree Days	(46.0	%)		56.4	%
	(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes.
	(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales).
	(3) Statistics reflect Duke Energy's ownership share of jointly owned stations.
	(4) Generation by source is reported net of auxiliary power.
	(5) Purchased power includes renewable energy purchases.
	(6) Statistics reflect 100 percent of jointly owned stations.

26

Duke Energy Progress
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2019
		Three Months Ended March 31,
		2019			2018			% Inc.(Dec.)			% Inc. (Dec.) Weather Normal (2)
GWh Sales (1)
	Residential	4,898			5,500			(10.9	%)
	General Service	3,538			3,732			(5.2	%)
	Industrial	2,501			2,437			2.6	%
	Other Energy Sales	19			19			—	%
	Unbilled Sales	(364	)		(567	)		35.8	%
	Total Retail Sales	10,592			11,121			(4.8	%)		(1.8	%)
	Wholesale and Other	5,756			6,105			(5.7	%)
	Total Consolidated Electric Sales — Duke Energy Progress	16,348			17,226			(5.1	%)
Average Number of Customers
	Residential	1,341,886			1,323,129			1.4	%
	General Service	235,425			233,307			0.9	%
	Industrial	4,047			4,060			(0.3	%)
	Other Energy Sales	1,417			1,451			(2.3	%)
	Total Retail Customers	1,582,775			1,561,947			1.3	%
	Wholesale and Other	14			14			—	%
	Total Average Number of Customers — Duke Energy Progress	1,582,789			1,561,961			1.3	%
Sources of Electric Energy (GWh)
	Generated — Net Output (3)
	Coal	1,781			2,303			(22.7	%)
	Nuclear	7,124			6,867			3.7	%
	Hydro	252			209			20.6	%
	Oil and Natural Gas	5,438			6,199			(12.3	%)
	Renewable Energy	46			54			(14.8	%)
	Total Generation (4)	14,641			15,632			(6.3	%)
	Purchased Power and Net Interchange (5)	2,201			2,235			(1.5	%)
	Total Sources of Energy	16,842			17,867			(5.7	%)
	Less: Line Loss and Other	494			641			(22.9	%)
	Total GWh Sources	16,348			17,226			(5.1	%)
Owned MW Capacity (3)
	Summer	12,779			12,813
	Winter	13,942			14,016
Nuclear Capacity Factor (%) (6)		92			90
Heating and Cooling Degree Days
	Actual
	Heating Degree Days	1,483			1,614			(8.1	%)
	Cooling Degree Days	6			23			(73.9	%)
	Variance from Normal
	Heating Degree Days	(7.8	%)		(0.1	%)
	Cooling Degree Days	(45.5	%)		139.2	%
	(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes.
	(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales).
	(3) Statistics reflect Duke Energy's ownership share of jointly owned stations.
	(4) Generation by source is reported net of auxiliary power.
	(5) Purchased power includes renewable energy purchases.
	(6) Statistics reflect 100 percent of jointly owned stations.

27

Duke Energy Florida
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2019
		Three Months Ended March 31,
		2019			2018			% Inc.(Dec.)			% Inc. (Dec.) Weather Normal (2)
GWh Sales (1)
	Residential	4,214			4,528			(6.9	%)
	General Service	3,273			3,440			(4.9	%)
	Industrial	677			758			(10.7	%)
	Other Energy Sales	6			6			—	%
	Unbilled Sales	(232	)		(185	)		(25.4	%)
	Total Retail Sales	7,938			8,547			(7.1	%)		(2.3	%)
	Wholesale and Other	383			572			(33.0	%)
	Total Electric Sales — Duke Energy Florida	8,321			9,119			(8.8	%)
Average Number of Customers
	Residential	1,616,295			1,588,910			1.7	%
	General Service	202,710			200,207			1.3	%
	Industrial	2,039			2,109			(3.3	%)
	Other Energy Sales	1,504			1,517			(0.9	%)
	Total Retail Customers	1,822,548			1,792,743			1.7	%
	Wholesale and Other	12			12			—	%
	Total Average Number of Customers — Duke Energy Florida	1,822,560			1,792,755			1.7	%
Sources of Electric Energy (GWh)
	Generated — Net Output (3)
	Coal	618			2,121			(70.9	%)
	Oil and Natural Gas	7,487			6,091			22.9	%
	Renewable Energy	41			8			412.5	%
	Total Generation (4)	8,146			8,220			(0.9	%)
	Purchased Power and Net Interchange (5)	860			1,378			(37.6	%)
	Total Sources of Energy	9,006			9,598			(6.2	%)
	Less: Line Loss and Other	685			479			43.0	%
	Total GWh Sources	8,321			9,119			(8.8	%)
Owned MW Capacity (3)
	Summer	10,218			9,304
	Winter	11,308			10,255
Heating and Cooling Degree Days
	Actual
	Heating Degree Days	271			383			(29.2	%)
	Cooling Degree Days	244			264			(7.6	%)
	Variance from Normal
	Heating Degree Days	(26.9	%)		1.1	%
	Cooling Degree Days	27.8	%		42.7	%
	(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes.
	(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales).
	(3) Statistics reflect Duke Energy's ownership share of jointly owned stations.
	(4) Generation by source is reported net of auxiliary power.
	(5) Purchased power includes renewable energy purchases.

28

Duke Energy Ohio
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2019
		Three Months Ended March 31,
		2019			2018			% Inc.(Dec.)			% Inc. (Dec.) Weather Normal (2)
GWh Sales (1)
	Residential	2,523			2,563			(1.6	%)
	General Service	2,275			2,319			(1.9	%)
	Industrial	1,394			1,387			0.5	%
	Other Energy Sales	27			27			—	%
	Unbilled Sales	(197	)		(324	)		39.2	%
	Total Retail Sales	6,022			5,972			0.8	%		1.7	%
	Wholesale and Other	142			100			42.0	%
	Total Electric Sales — Duke Energy Ohio	6,164			6,072			1.5	%
Average Number of Customers
	Residential	772,754			766,947			0.8	%
	General Service	88,493			88,263			0.3	%
	Industrial	2,481			2,500			(0.8	%)
	Other Energy Sales	3,377			3,331			1.4	%
	Total Retail Customers	867,105			861,041			0.7	%
	Wholesale and Other	1			1			—	%
	Total Average Number of Customers — Duke Energy Ohio	867,106			861,042			0.7	%
Sources of Electric Energy (GWh)
	Generated — Net Output (3)
	Coal	371			676			(45.1	%)
	Oil and Natural Gas	1			20			(95.0	%)
	Total Generation (4)	372			696			(46.6	%)
	Purchased Power and Net Interchange (5)	6,601			6,335			4.2	%
	Total Sources of Energy	6,973			7,031			(0.8	%)
	Less: Line Loss and Other	809			959			(15.6	%)
	Total GWh Sources	6,164			6,072			1.5	%
Owned MW Capacity (3)
	Summer	1,076			1,076
	Winter	1,164			1,164
Heating and Cooling Degree Days
	Actual
	Heating Degree Days	2,571			2,569			0.1	%
	Cooling Degree Days	—			4			(100.0	%)
	Variance from Normal
	Heating Degree Days	0.6	%		2.6	%
	Cooling Degree Days	(100.0	%)		(0.1	%)
	(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes.
	(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales).
	(3) Statistics reflect Duke Energy's ownership share of jointly owned stations.
	(4) Generation by source is reported net of auxiliary power.
	(5) Purchased power includes renewable energy purchases.

29

Duke Energy Indiana
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2019
		Three Months Ended March 31,
		2019			2018			% Inc.(Dec.)			% Inc. (Dec.) Weather Normal (2)
GWh Sales (1)
	Residential	2,828			2,866			(1.3	%)
	General Service	2,009			2,003			0.3	%
	Industrial	2,542			2,538			0.2	%
	Other Energy Sales	13			13			—	%
	Unbilled Sales	(188	)		(276	)		(31.9	%)
	Total Retail Sales	7,204			7,144			0.8	%		0.3	%
	Wholesale and Other	829			1,341			(38.2	%)
	Total Electric Sales — Duke Energy Indiana	8,033			8,485			(5.3	%)
Average Number of Customers
	Residential	733,237			721,971			1.6	%
	General Service	101,627			101,343			0.3	%
	Industrial	2,700			2,725			(0.9	%)
	Other Energy Sales	1,736			1,696			2.4	%
	Total Retail Customers	839,300			827,735			1.4	%
	Wholesale and Other	4			5			(20.0	%)
	Total Average Number of Customers — Duke Energy Indiana	839,304			827,740			1.4	%
Sources of Electric Energy (GWh)
	Generated — Net Output (3)
	Coal	5,494			6,388			(14.0	%)
	Hydro	22			20			10.0	%
	Oil and Natural Gas	642			855			(24.9	%)
	Renewable Energy	4			5			(20.0	%)
	Total Generation (4)	6,162			7,268			(15.2	%)
	Purchased Power and Net Interchange (5)	2,348			1,655			41.9	%
	Total Sources of Energy	8,510			8,923			(4.6	%)
	Less: Line Loss and Other	477			438			8.9	%
	Total GWh Sources	8,033			8,485			(5.3	%)
Owned MW Capacity (3)
	Summer	6,606			6,744
	Winter	7,023			7,183
Heating and Cooling Degree Days
	Actual
	Heating Degree Days	2,884			2,831			1.9	%
	Cooling Degree Days	—			4			(100.0	%)
	Variance from Normal
	Heating Degree Days	4.6	%		2.4	%
	Cooling Degree Days	(100.0	%)		22.1	%
	(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes.
	(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales).
	(3) Statistics reflect Duke Energy's ownership share of jointly owned stations.
	(4) Generation by source is reported net of auxiliary power.
	(5) Purchased power includes renewable energy purchases.

30

Gas Utilities and Infrastructure
Quarterly Highlights
March 2019
		Three Months Ended March 31,
		2019			2018			% Inc. (Dec.)
Total Sales
	Piedmont Natural Gas Local Distribution Company (LDC) throughput (dekatherms) (1)	151,665,924			154,901,379			(2.1	%)
	Duke Energy Midwest LDC throughput (Mcf)	38,538,272			37,126,065			3.8	%
Average Number of Customers — Piedmont Natural Gas
	Residential	983,440			970,666			1.3	%
	Commercial	104,720			104,835			(0.1	%)
	Industrial	966			963			0.3	%
	Power Generation	17			17			—	%
	Total Average Number of Gas Customers — Piedmont Natural Gas	1,089,143			1,076,481			1.2	%
Average Number of Customers — Duke Energy Midwest
	Residential	493,168			488,853			0.9	%
	General Service	45,347			45,280			0.1	%
	Industrial	1,679			1,661			1.1	%
	Other	135			138			(2.2	%)
	Total Average Number of Gas Customers — Duke Energy Midwest	540,329			535,932			0.8	%
	(1) Piedmont has a margin decoupling mechanism in North Carolina and weather normalization mechanisms in South Carolina and Tennessee that significantly eliminate the impact of throughput changes on earnings. Duke Energy Ohio's rate design also serves to offset this impact.

Commercial Renewables
Quarterly Highlights
March 2019
		Three Months Ended March 31,
		2019			2018			% Inc. (Dec.)
	Renewable Plant Production, GWh	2,068			2,180			(5.1	)%
	Net Proportional MW Capacity in Operation (1)	2,996			2,943			1.8	%
	(1) In 2019, includes 100 percent tax equity project capacity.

31