Duke Energy Corporation (NYSE:DUK) Q4 2016 Earnings Conference Call - Final Transcript

Feb 16, 2017 • 10:00 am ET


Duke Energy Corporation (NYSE:DUK) Q4 2016 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Duke Energy Fourth Quarter Earnings Conference Call. As a reminder, today's call is being recorded.

And now, for opening remarks and introductions, I'd like to turn the conference over to Mr. Mike Callahan. Please go ahead, sir.

Michael P. Callahan

Thank you, Catherine. Good morning, everyone, and thank you for joining Duke Energy's fourth quarter 2016 earnings review and business update. Leading our call today is Lynn Good, Chairman, President and CEO, along with Steve Young, Executive Vice President and Chief Financial Officer.

Lynn will cover the key milestones we reached in 2016 as we completed our portfolio of transition. She will also provide an update on our strategy and growth initiatives and insight on her vision for the company over the next 10 years. Steve will then provide an overview of 2016 financial results, insight into our 2017 earnings guidance, and visibility into our expectations for future earnings growth.

Today's discussion will include forward-looking information and the use of non-GAAP financial measures. Slide 2 presents the Safe Harbor statement, which accompanies our presentation materials. A reconciliation of non-GAAP financial measures can be found on duke-energy.com and in today's materials. Please note the appendix for today's presentation includes supplemental information and additional disclosures.

With that, I'll turn the call over to Lynn.

Lynn J. Good

Thank you, Mike, and good morning, everyone. Today, we announced adjusted earnings per share of $4.69, closing out a very successful 2016. We delivered strong operational and financial results, ending the year at the high end of our guidance range. We completed our multiyear transition of our business portfolio, with the well-executed exit from our International operations and the acquisition of Piedmont Natural Gas.

Through it all, we maintained strong earnings growth in our core businesses and continued to increase our dividend. 2016 was clearly a pivotal year for Duke Energy and it's a key indicator of the success we expect going forward.

As you see on Slide 4, today Duke Energy enters 2017 with premier electric and natural gas franchises operating in constructive jurisdictions and with a demonstrated track record of strong execution.

With our scale and portfolio of complementary businesses, we benefit from a wide range of investment opportunities. And as you will hear today, we're excited about our five-year $37 billion growth capital plan, up approximately 25% from last year.

We have strong growth in every segment underpinned by capital, delivering value to our customers. Today, we extended our consolidated growth rate of 4% to 6% through 2021, which is off of the midpoint of our 2017 adjusted EPS guidance range of $4.50 to $4.70.

Our capital plan and regulatory strategy has been designed to produce earnings within this range each year of the five-year plan. And as the investments build and recovery accumulates, we're even more confident of our ability to reach the high end of the growth range.

The assets we have, coupled with the strategy that produces real results, offer a solid long-term investment opportunity. We are