Duke Energy Corporation (NYSE:DUK) Q1 2017 Earnings Conference Call - Final Transcript

May 09, 2017 • 10:00 am ET


Duke Energy Corporation (NYSE:DUK) Q1 2017 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Duke Energy first quarter earnings call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mike Callahan. Please go ahead, sir.

Michael Callahan

Thank you, Noah. Good morning, everyone, and thank you for joining Duke Energy's First Quarter 2017 Earnings Review and Business Update. Leading our call today is Lynn Good, Chairman, President and CEO along with Steve Young, Executive Vice President and CFO.

(Forward-Looking Cautionary Statements)

As summarized on Slide 3, during today's call, Lynn will briefly discuss our financial and operational highlights for the quarter. She will also provide an update on the progress we have made against our long-term strategy, including additional details about our grid modernization efforts.

Steve will then provide an overview of our first quarter financial results, insight about economic and low-growth trends, and an update on our regulatory and rate case activity.

With that, let me turn the call over to Lynn.

Lynn Good

Thank you, Mike, and good morning, everyone.

Today, we announced adjusted earnings per share of $1.04 for the first quarter. We had solid growth in our electric and gas utilities in the quarter, driven by our ongoing investment programs.

This was offset by the warm winter weather experienced across all of our jurisdictions. We are already taking action and leveraging our agile operations and ability to manage costs to offset the effects of the weather, which Steve will discuss in more detail in a moment.

With our strongest quarter ahead, we remain on track for 2017 and have affirmed our full year guidance range. Through all of this, our focus on operational excellence has not changed and our commitment to safety is unwavering.

Over the last six months, we've welcomed our Piedmont colleagues, and I'm proud to share the recent accomplishments in safety and environmental stewardship, as outlined on this slide.

Excuse me. I may not quite sound like myself today, we're suffering from a spring cold, so thanks for your patience and interest in Duke.

The integration of Piedmont is well underway, and we're pleased with the progress to date. Merger integration can be a time of uncertainty, but our Piedmont teammates have consistently delivered strong operational, financial and customer performance. We are looking forward to a strong full year contribution from Piedmont in 2017.

Let me highlight a couple of their recent successes. In the Midwest, the American Gas Association awarded our Midwest LDCs the 2016 Safety Achievement Award. Our employees had the lowest incident rate for days away from work compared to our peers last year.

Also, Piedmont was recognized as an environmental champion for the third consecutive year based on a nationwide survey. This is the result of our efforts to reduce vehicle fleet emissions and make our facilities more energy efficient.

These awards are a testament to our industry-leading operational excellence, and I am proud of our employees and their continued focus on safety and efficient operations.

As we turn to slides 5 and 6, we