Duke Energy Corporation (DUK) Bundle
A Brief History of Duke Energy
Company Overview
Duke Energy Corporation, one of the largest electric power holding companies in the United States, was formed in 1904 as the Carolina Power and Light Company. The company primarily operates in the Southeast and Midwest regions, providing electricity to approximately 7.7 million customers. As of 2024, Duke Energy operates a diverse portfolio of generation assets, including nuclear, coal, natural gas, and renewable resources.
Recent Financial Performance
As of September 30, 2024, Duke Energy reported a net income of $1.226 billion for the quarter, an increase from $1.213 billion reported in the same quarter of 2023. The company’s total revenues for the nine months ended September 30, 2024, were $10.445 billion, compared to $10.315 billion for the same period in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (in billions) | 1.226 | 1.213 | 1.07 |
| Total Revenues (in billions) | 10.445 | 10.315 | 1.26 |
Investment Portfolio
Duke Energy's total investments as of September 30, 2024, amounted to $4.672 billion, with significant components in equity and debt securities. The breakdown of investments includes:
| Investment Type | Value (in millions) |
|---|---|
| Equity Securities | 3,361 |
| Corporate Debt Securities | 252 |
| Municipal Bonds | 300 |
| U.S. Government Bonds | 666 |
Operational Highlights
In 2024, Duke Energy has faced challenges due to natural disasters, notably hurricanes that impacted its service areas. The estimated costs related to storm restoration are between $1.5 billion to $1.9 billion. As of September 30, 2024, the company incurred approximately $582 million in restoration costs from Hurricane Helene alone.
Regulatory Matters
Duke Energy's operations are heavily regulated, with rate approvals managed by various state commissions. As of 2024, the company continues to navigate regulatory challenges while aiming to enhance its renewable energy portfolio.
Stock Performance
As of late 2024, Duke Energy's stock was trading at approximately $95.12 per share, reflecting a year-to-date increase of about 7.5%. The company has maintained a consistent dividend policy, with an annual dividend yield of around 4.3%.
| Stock Performance Metric | Value |
|---|---|
| Current Share Price | 95.12 |
| Year-to-Date Increase (%) | 7.5 |
| Annual Dividend Yield (%) | 4.3 |
Future Outlook
Duke Energy's strategic focus includes reducing carbon emissions and expanding renewable energy sources to meet regulatory demands and customer expectations. The company plans to invest significantly in infrastructure upgrades and clean energy projects over the next decade.
A Who Owns Duke Energy Corporation (DUK)
Ownership Structure
Duke Energy Corporation (DUK) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders as of 2024.
| Shareholder Type | Percentage of Ownership |
|---|---|
| Institutional Investors | 83.4% |
| Mutual Funds | 54.2% |
| Individual Investors | 16.6% |
| Other | 0.2% |
Major Institutional Shareholders
Key institutional shareholders include several prominent asset management firms. The following table lists the top institutional shareholders and their percentage of ownership as of 2024.
| Institution | Percentage of Ownership |
|---|---|
| The Vanguard Group | 10.5% |
| BlackRock, Inc. | 9.8% |
| State Street Corporation | 5.5% |
| Wellington Management Group | 4.2% |
| Capital Research Global Investors | 3.7% |
Stock Performance and Market Capitalization
As of September 30, 2024, Duke Energy's stock was trading at approximately $92.77 per share. The company has a market capitalization of around $71.5 billion. The following table provides an overview of Duke Energy’s financial performance metrics.
| Financial Metric | Value |
|---|---|
| Market Capitalization | $71.5 billion |
| Latest Share Price | $92.77 |
| Dividends Declared per Share | $3.095 |
| EPS (Earnings Per Share) | $4.17 |
| Net Income (Nine Months Ended September 30, 2024) | $3.211 billion |
Recent Changes in Ownership
In 2024, Duke Energy has seen a slight shift in its shareholder base, with institutional investors increasing their stake in the company. The following table illustrates the changes in ownership percentages over the last year.
| Shareholder Type | 2023 Ownership | 2024 Ownership |
|---|---|---|
| Institutional Investors | 82.1% | 83.4% |
| Mutual Funds | 53.0% | 54.2% |
| Individual Investors | 17.5% | 16.6% |
| Other | 0.2% | 0.2% |
Preferred Stock Ownership
Duke Energy also has preferred stock outstanding which influences overall equity ownership. The following table summarizes the preferred stock distribution.
| Preferred Stock Series | Shares Outstanding | Dividends per Share |
|---|---|---|
| Series A | 973 million | $0.359 |
| Series B | 0 million | N/A |
Noncontrolling Interests
As of September 30, 2024, the noncontrolling interest balance was approximately $1.116 billion, reflecting the ownership interests that are not held by Duke Energy itself but by other investors in its subsidiaries.
| Noncontrolling Interests | Value |
|---|---|
| Noncontrolling Interests (September 30, 2024) | $1.116 billion |
| Noncontrolling Interests (December 31, 2023) | $1.075 billion |
Conclusion
The ownership of Duke Energy Corporation is characterized by a strong institutional presence, with significant stakes held by major asset management firms and mutual funds. The company continues to maintain a robust financial performance, supporting its position as a leading utility provider in the United States.
Duke Energy Corporation (DUK) Mission Statement
Mission Statement Overview
Duke Energy Corporation aims to be the leading energy provider by delivering reliable and affordable energy while focusing on sustainability and innovation. The mission emphasizes the commitment to customer service, environmental stewardship, and economic growth across its service areas.
Financial Performance Indicators
As of September 30, 2024, Duke Energy reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues (in millions) | $8,154 | $7,994 | 2.0 |
| Net Income (in millions) | $1,315 | $1,321 | (0.5) |
| Earnings Per Share (EPS) | $1.60 | $1.59 | 0.6 |
| Total Assets (in millions) | $183,566 | $176,893 | 3.8 |
| Cash and Cash Equivalents (in millions) | $376 | $253 | 48.7 |
| Total Liabilities (in millions) | $134,433 | $126,706 | 6.1 |
Operating Segments
Duke Energy operates through various segments, primarily electric and gas utilities. The following data provides insights into the operational performance:
| Segment | Total Revenues (in millions) | Net Income (in millions) | Segment Assets (in millions) |
|---|---|---|---|
| Electric Utilities | $21,475 | $3,562 | $12,552 |
| Gas Utilities | $1,615 | $265 | $4,456 |
| Other Segments | $120 | ($625) | $13 |
Market Position and Strategy
Duke Energy's strategy includes investments in renewable energy and grid modernization. The company has committed to reducing carbon emissions by 50% by 2030, with plans to invest over $20 billion in renewable energy through 2025.
Customer Base and Service Area
As of 2024, Duke Energy serves approximately 7.7 million customers across six states, including North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky. The customer segments include residential, commercial, and industrial users.
Regulatory Environment
Duke Energy operates under various regulatory bodies, including state public utility commissions, which approve rate changes and service standards. The company is actively involved in regulatory proceedings to ensure compliance and maintain service quality.
Recent Developments
In response to recent severe weather events, Duke Energy has incurred estimated storm restoration costs of approximately $2.4 billion to $2.9 billion across its service territories due to hurricanes Helene, Debby, and Milton.
Conclusion of Financial Overview
The financial health of Duke Energy showcases a resilient business model with a focus on sustainable practices and customer-centric services, aligning with its mission statement of providing reliable energy while promoting environmental responsibility.
How Duke Energy Corporation (DUK) Works
Overview of Duke Energy Corporation
Duke Energy Corporation (DUK) is one of the largest electric power holding companies in the United States, primarily engaged in the generation, transmission, and distribution of electricity and natural gas. The company operates through various segments including Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and other related services.
Financial Performance
As of September 30, 2024, Duke Energy reported the following financial metrics:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $3,387 | $1,878 |
| GAAP Reported EPS | $4.17 | $2.27 |
| Adjusted EPS | $4.24 | $4.05 |
| Total Revenues (in millions) | $1,891 | $1,875 |
| Operating Income (in millions) | $1,914 | $1,541 |
Revenue Breakdown
The revenue for Duke Energy is generated from various sources, primarily from electric and gas utilities. The following table summarizes the revenue breakdown by segment:
| Segment | Total Revenues (in millions) | Segment Income (in millions) |
|---|---|---|
| Electric Utilities | $1,431 | $181 |
| Gas Utilities | $460 | $46 |
| Total | $1,891 | $227 |
Operating Expenses
For the nine months ended September 30, 2024, Duke Energy reported the following operating expenses:
| Expense Category | Amount (in millions) |
|---|---|
| Fuel used in electric generation and purchased power | $2,531 |
| Operation, maintenance and other | $1,358 |
| Depreciation and amortization | $1,306 |
| Property and other taxes | $271 |
| Total Operating Expenses | $5,498 |
Cash Flow Analysis
The cash flow from operations for Duke Energy for the nine months ended September 30, 2024, is as follows:
| Cash Flow Category | Amount (in millions) |
|---|---|
| Net cash provided by operating activities | $623 |
| Net cash used in investing activities | $(868) |
| Net cash provided by financing activities | $229 |
Capital Expenditures
Duke Energy's capital expenditures for the nine months ended September 30, 2024, totaled $9,199 million. The breakdown is as follows:
| Category | Amount (in millions) |
|---|---|
| Capital, investment and acquisition expenditures | $(9,199) |
| Other investing items | $(652) |
| Total cash used in investing activities | $(9,851) |
Debt and Equity Structure
As of September 30, 2024, Duke Energy's total liabilities and equity are as follows:
| Category | Amount (in millions) |
|---|---|
| Total Assets | $54,309 |
| Total Liabilities | $35,997 |
| Total Equity | $18,312 |
Environmental and Regulatory Compliance
Duke Energy is subject to various federal, state, and local environmental regulations. The company has incurred storm restoration costs estimated between $2.4 billion and $2.9 billion due to significant storm impacts across its service territories in 2024.
Customer Base and Sales Performance
As of 2024, Duke Energy experienced the following changes in electricity and natural gas sales:
| Category | Electric Sales Change (%) | Natural Gas Sales Change (%) |
|---|---|---|
| Residential Sales | 4.8% | (0.9%) |
| General Service Sales | 4.7% | (0.8%) |
| Industrial Sales | (5.9%) | 18.7% |
| Total Sales | 4.5% | 0.9% |
Stock Performance
Duke Energy's stock performance metrics for 2024 include:
| Metric | Value |
|---|---|
| Market Capitalization (in billions) | $75.6 |
| Dividend Yield (%) | 4.5% |
| Price-to-Earnings Ratio | 19.5 |
How Duke Energy Corporation (DUK) Makes Money
Revenue Sources
Duke Energy Corporation generates revenue through two main segments: Electric Utilities and Infrastructure (EU&I) and Gas Utilities and Infrastructure (GU&I). The company primarily earns revenue from the generation, transmission, distribution, and sale of electricity and natural gas.
| Revenue Source | 2024 (in millions) | 2023 (in millions) | Variance (in millions) |
|---|---|---|---|
| Electric Utilities Revenue | 21,275 | 20,072 | 1,203 |
| Gas Utilities Revenue | 1,505 | 1,455 | 50 |
| Total Revenue | 22,810 | 21,527 | 1,283 |
Electric Utilities and Infrastructure
The EU&I segment is the largest revenue contributor, accounting for approximately 93% of Duke Energy's total revenue. In 2024, operating revenues from this segment reached $21.3 billion, primarily derived from:
- Residential sales: $9.9 billion
- General service sales: $6.2 billion
- Industrial sales: $2.6 billion
- Wholesale sales: $1.7 billion
- Other revenues: $783 million
Gas Utilities and Infrastructure
The GU&I segment contributed $1.5 billion in revenues for 2024. This revenue primarily comes from:
- Residential gas sales: $859 million
- Commercial gas sales: $434 million
- Industrial gas sales: $115 million
- Other revenues: $97 million
Operating Income and Expenses
For the nine months ended September 30, 2024, Duke Energy reported total operating revenues of $12.2 billion, with operating income of $2.6 billion. The company's operating expenses were $9.6 billion, leading to a net income of $1.6 billion.
| Segment | Operating Revenues (in millions) | Operating Expenses (in millions) | Operating Income (in millions) |
|---|---|---|---|
| Duke Energy Carolinas | 5,092 | 3,758 | 1,336 |
| Duke Energy Progress | 4,027 | 2,677 | 1,350 |
| Duke Energy Florida | 5,456 | 4,192 | 1,264 |
| Duke Energy Ohio | 1,891 | 1,494 | 397 |
| Duke Energy Indiana | 2,342 | 1,815 | 527 |
Customer Growth and Sales Volume
Duke Energy's average number of customers increased by 1.7% in 2024, contributing to a rise in sales volumes across various categories:
- Residential sales increased by 4.5%
- General service sales increased by 2.1%
- Industrial sales decreased by 0.4%
- Wholesale power sales decreased by 1.9%
Interest Expense and Net Income
Interest expense for the nine months ended September 30, 2024, was $796 million, with a net income of $1.6 billion, reflecting a robust financial position despite increased operational costs.
| Financial Metrics | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Income | 1,634 | 1,446 |
| Interest Expense | 796 | 706 |
| Total Assets | 12,611 | 12,216 |
| Total Liabilities | 7,269 | 7,116 |
Future Revenue Growth
Duke Energy is expected to continue its growth trajectory with initiatives aimed at enhancing renewable energy sources and improving infrastructure. The company has projected capital expenditures of approximately $3 billion to $4 billion per year over the next several years, focusing on clean energy investments and grid modernization.
Regulatory Environment and Rate Increases
Rate increases approved by state utility commissions have contributed significantly to Duke Energy's revenue growth. In 2024, the company implemented higher rates resulting from the 2021 Settlement and various rider revenues, boosting overall earnings.
| Regulatory Adjustments | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Rate Increases | 150 | 100 |
| Rider Revenues | 42 | 30 |
| Storm Recovery Costs | 127 | 75 |
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Resources:
- Duke Energy Corporation (DUK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Duke Energy Corporation (DUK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Duke Energy Corporation (DUK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.