Duke Energy Corp. - 5.625% DB REDEEM 15/09/2078 USD 25

Strong Q1 2026 results; reaffirmed EPS guidance and growth outlook - Reported EPS $1.97 and adjusted EPS $1.93 in Q1 (vs. $1.76 adjusted EPS YoY). - Drivers: Electric Utilities & Infrastructure +$0.16 from infrastructure investment and favorable weather; partially offset by higher O&M and depreciation on a growing asset base and winter-storm response costs (framed as mostly timing). - Full-year outlook: 2026 adjusted EPS guidance reaffirmed: $6.55–$6.80. - Long-term: reiterated 5%–7% annual EPS growth through 2030, with expectation to be in the top half of the range starting in 2028 as ESAs/economic development projects accelerate.

Customer affordability is central—and management highlighted ~$5B+ of customer benefits - Clean energy tax credit monetization: announced a multiyear agreement to monetize up to $3.1B of clean energy tax credits expected through 2028; proceeds flow back to customers to keep rates low (counterparty not disclosed). - Carolina utilities combination approvals: received regulatory approvals (including FERC + NC/SC regulators) for combining Duke’s two Carolinas utilities; estimated $2.3B customer savings through 2040 with effective date targeted Jan 1, 2027. - Management repeatedly emphasized “levers” to manage rate case outcomes (tax credits + other tools) as affordability pressures remain high.

Economic development momentum is a key upside driver (but requires disciplined execution) - Data-center load growth: total executed ESAs ~7.6 GW, with 2.7 GW signed since the prior call; management stated ~2/3 already under construction. - Pipeline: late-stage/high-confidence pipeline ~15.4 GW (inclusive of executed ESAs), with expectation to convert additional prospects to ESAs over the next 12 months. - Timing expectation: customers to begin taking energy as early as 2H 2027 and into 2028, ramping through the early 2030s; additional signed load expected to contribute later in the 5-year planning window. - Contracts designed to protect existing customers: minimum demand, credit support, refundable capital advances, and termination charges, spreading system costs over a larger base.