Duke Energy Corporation

Transcription

1 Saturday, February 8, 23 Data Provided by Multex.com Inc. 1 William Street Seventh Floor New York, NY Tel: (212) Fax: (212) Web Site: 23 Multex.com Inc. All rights reserved. Copying and redistribution prohibited. Multex obtains information from sources deemed reliable, but does not warrant its accuracy and disclaims for itself and its information providers all liability arising from its use. No information provided shall constitute tax, legal, or investment advice, or an offer to buy or sell securities.

2 Overview Fiscal Year ends December 31. All data are on a fiscal year basis except where noted. All financials are reported to conform to the current year presentation and may reflect certain reclassifications made in prior years. Business Summary DUK is an integrated energy company delivering both electricity and natural gas to customers worldwide. Current Price Price (2/7/23) $ Week High (4/23/20) $ Week Low (2/7/23) $16. Year-To-Date Results DUK is a leading domestic gatherer and processor of natural gas and develops, constructs and operates energy facilities worldwide. For the FY ended 12/31/, revenues fell 18% to $15.19B. Net income applicable to Common before acctg. changes fell 48% to $1.B. Results reflect lower sales from gas and petroleum products and higher interest expense. Share Information Market Capitalization $14.5 Bil. Shares Outstanding Mil. Trading Float Mil. Monthly Trading Volume Mil. Beta 0.2 Indicated Annual Dividend $1.10 Five Year Monthly Stock Performance History $50 $45 $40 $35 $30 $25 $50 $45 $40 $35 $30 $25 $20 $20 $15 2:1 Split $15 F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F Charted in logarithmic format to illustrate true percent changes in price Price History (Calendar Year) High Price Low Price Year End Price Year End P/E Dividend Yield High P/E Low P/E 19 $35.50 $26.56 $ x 3.4% 23.7x 17.4x 19 $32.66 $23.38 $ x 4.4% 22.4x 14.4x 20 $45.22 $22.88 $ x 2.6% 29.1x 17.2x 20 $47.74 $32.22 $ x 2.8% 18.4x 9.7x 20 $40. $16.42 $ x 5.6% 12.9x 6.3x YTD 03 $21.57 $16. $ High Low Close P/E High P/E Low P/E Per Share Statistics & Current Price Multiples Per Share Multiple Earnings (TTM) $ x Book Value (MRQ) $ x Cash Flow (TTM) $ x Revenues (TTM) $ x Employees Employees 24,0 Sales Per Employee (TTM) $632,750 Net Income Per Employee (TTM) $43,083 TTM = Trailing Twelve Months, MRQ = Most Recent Quarter, NA = Not Available, NM = Not Meaningful, NAR = Not Available Due To A Restatement. Prepared Saturday, February 8, 23 Page 2

3 Stock Price Performance Institutional Ownership 1,642 Institutions own 61.5% of the 895 million common shares outstanding. The average institutional ownership of the Electric Utilities is 51.2%, and the average institutional ownership of the S&P 5 as a whole is 62.2%. Insider Trading Insiders hold 8.90 million shares. In the last 6 months, there have been no insider purchases, and there have been no insider sales. Daily Trading Activity During Last Four Months $ Daily Trading Volume (Millions) October November December January Feb $ Equity and Debt Composition Common Stock no Par, 12/, 2B auth., 895,0,0 issd. Insiders own less than 1%. PO: 8/80, 4M $17.38 by Morgan Stanley. PO: 3/, 25M $38. by Morgan Stanley D.W. 1/, 10/90, 2-for-1 stock splits. *3/, Co. acquired Westcoast Energy, $43.80/sh., shs. or a combination of cash and shr. (49.9M shs. issd.). Analyst Footnotes FY fncls. restated (pooling w/panenergy). 6/97 Co. changed name from Duke Power Co. FY Q s are reclass. PO 9/, 54.5M $18.35 by Morgan Stanley. 60 Day Moving Average Dividends The Indicated Annual Dividend Rate is $1.10 a share giving DUK a current yield of 6.8%. Next quarterly dividend of $0.275 a share will be paid 3/17/03. The stock will go Ex-Dividend 2/12/03. Dividends Per Share Calendar Year Dividend Yield Calendar Year $1.10 $1.10 $1.10 $1.10 $ % 4.4% 2.6% 2.8% 5.6% Officers Richard Priory, Chmn./CEO Fred J. Fowler, Pres./COO Richard Blackburn, Exec. VP/Counsel/Secy. Robert P. Brace, CFO/Exec. VP. Headquarters 526 South Church Street Charlotte, NC 282 Company incorporated in NC Phone (704) Fax (704) Prepared Saturday, February 8, 23 Page 3

4 Quarterly Trends Years are Fiscal Years The quick brown fox jumped over the lazy dog The quick brown fox jumped over the lazy dog The quick brown fox jumped over the lazy dog The quick brown fox jumped over the lazy dog The quick brown fox jumped over the lazy dog Price/TTM Earnings Bands x EPS (TTM) Quarterly EPS Primary $0.45 $0.38 $ $0.30 $0.42 $0.39 $ ($0.27) $0.53 $0.44 $ $0.38 $0.74 $1.28 $1. 20 $0.29 $0.48 $1.06 $ ($0.06) NA 23 Price/TTM Sales Bands x Sales (TTM) Quarterly Revenue $ USD $4.1 $4.0 $ $4.2 $4.2 $4.7 $ $6.2 $7.3 $10.9 $ $15.4 $16.5 $9.9 $ $3.8 $11.9 $7.1 $ $4.0 NA 23 Dashed lines represent a band off the chart Prepared Saturday, February 8, 23 Page 4

5 Overview DUK is in the Electric Utilities of the Utilities Sector. Below is a list of the 35 companies most similar to DUK s market capitalization in the Electric Utilities listed in descending order. There are 93 companies in this industry. Company Name Market TTM Net P/E Price 52-Week 52-Week (Ticker Symbol) Cap. Revenue Margin 2/7/03 2/7/03 High Low (Millions) (Millions) Enel S.p.A. (ADR) (EN) $33,274 $32, % 15.5x $27.44 $30.54 $22. Southern Company (SO) $20,209 $10, % 15.4x $28.36 $31.14 $23.22 Suez SA (ADR) (SZE) $18,412 $47, % 19.7x $17.94 $30.30 $13.18 Dominion Resources, Inc. (D) $16,584 $10, % 11.2x $53. $67.06 $35.40 Exelon (EXC) $15,965 $14, % 9.6x $49.43 $56. $37.85 (DUK) $14,454 $15, % 12.8x $16.15 $39.60 $16. Endesa S.A. (ADR) (ELE) $11,953 $18, % 7.2x $11.29 $15.82 $8.65 National Grid Transco plc (NGG) $11,319 $7,183 (11.1)% NM $31.85 $37.44 $31.28 Korea Electric Power Corp (KEP) $10,875 $17, % 3.5x $8.51 $11.80 $7.95 FPL Group, Inc. (FPL) $10,321 $8, % 14.1x $56.55 $65.31 $45. Scottish Power UK plc (AD (SPI) $10,250 $8,742 (13.3)% NM $22.22 $24.80 $18.84 Entergy (ETR) $9,897 $8, % 17.0x $44.58 $48.38 $32.12 CLP Holdings Limited (ADR (CLPHY) $9,753 $3, % 8.2x $4.05 $4.20 $3.70 Progress Energy, Inc. (PGN) $9,505 $8, % 15.7x $39.94 $52.70 $32.84 FirstEnergy Corp. (FE) $8,730 $11, % 10.6x $29.33 $39.12 $24.85 Consolidated Edison, Inc. (ED) $8,376 $8, % 12.6x $39.21 $46. $32.65 Public Service Enterprise (PEG) $7,556 NA NA 17.7x $33.97 $47.25 $20. American Electric Power (AEP) $7,190 $14,618 (0.7)% NM $21.22 $48.80 $15.10 DTE Energy Company (DTE) $6,933 $8, % 10.5x $41.40 $49.50 $33.05 Ameren (AEE) $6,132 $4, % 12.0x $38.43 $45.25 $34.72 PPL (PPL) $5,522 $5, % 14.5x $33.58 $39.95 $26. TXU (TXU) $5,340 $14,083 (29.7)% NM $16.58 $57.05 $10.10 United Utilities PLC (ADR (UU) $5,309 $2, % 12.2x $19.10 $20.79 $16.92 Huaneng Power Internation (HNP) $5,291 $1, % 9.7x $35.27 $35.89 $25.32 Cinergy Corp. (CIN) $5,283 $11, % 13.4x $31.32 $37.19 $25.40 PG&E (PCG) $5,261 $23, % 2.6x $13. $23.75 $8. EDP Electricidade de Port (EDP) $4,926 $6, % 10.0x $16.42 $22.15 $14.56 RAO Unified Energy System (USERY) $4,658 NA NA 60.4x $11.35 $17.35 $7.61 Xcel Energy Inc. (XEL) $4,318 $9,893 (20.5)% NM $10.83 $26.70 $5.12 Constellation Energy Grp. (CEG) $4,291 $4, % 8.1x $26.05 $32.38 $19.30 Edison International (EIX) $3,845 $12, % 1.2x $11.80 $19.60 $7.80 SCANA (SCG) $3,356 $2, % 54.7x $30.31 $32.70 $23.50 Pepco Holdings, Inc. (POM) $3,054 $3,3 5.1% 14.1x $18.10 $23.83 $15.37 Wisconsin Energy Corp. (WEC) $2,878 $3, % 22.4x $24.90 $26.60 $20.17 Energy East (EAS) $2,866 $4,9 4.7% 13.3x $19.80 $23.71 $15.75 Pinnacle West Capital (PNW) $2,754 $2, % 12.0x $30.46 $46.68 $21.70 DUK Price Performance vs. Electric Utilities DUK vs. Co. Rank Period Actual S&P 5 In Rank 4 Week (23.1)% (14.0)% Week (19.1)% (12.7)% Week (38.7)% (32.8)% Week (51.5)% (35.9)% YTD (17.3)% (12.4)% Ranks are Percentile Ranks ranging from 0 to, with = best. Electric Utilities Following is a list of companies in the Electric Utilities industry not appearing in the chart above. They are listed in order of descending market capitalization: EN,..., PNW, NST, EOC, TE, CNP, TAC, PSD, NU, AES, DPL, GXP, IPR, HE, LNT, OGE, TGN, WPS, CIG, CPN, RRI, DQE, AYE, IDA, WR, PNM, CMS, ENI, CHG, MIR, OTTR, BKH, CNL, UNS, EE, AVA, SRP, MGEE, UIL, EDE, ELP, ILA, CV,... Prepared Saturday, February 8, 23 Page 5

6 Valuation This page compares selected valuation measures for DUK with other companies in the Electric Utilities as well as the S&P 5. DUK Average High Low S&P 5 Ratios for use the February 7 closing price of $ trades at a lower multiple of trailing earnings than the average for the Electric Utilities industry. trades at a lower multiple of sales than the industry average. Price / Earnings Ratios Current P/E 12.8x 13.3x 60.4x 0.0x 22.1x High P/E - Last 5 Years NA 28.8x 230.8x 14.9x 49.2x Low P/E - Last 5 Years NA 9.2x 13.9x 0.9x 16.6x Beta - 5 Yr. Monthly Avg (3.3) 1.0 Other Valuation Multiples Price to Cash Flow (TTM) 5.0x 6.2x 26.8x 0.0x 15.7x Price to Free Cash Flow (TTM) 2.9x 19.2x 104.1x 0.0x 24.5x Price to Sales (TTM) 0.9x 1.0x 20.5x 0.0x 2.8x Price to Book (MRQ) 1.0x 1.4x 6.6x 0.0x 4.1x Price to Tangible Book (MRQ) 1.3x 2.4x 17.8x 0.0x 6.4x Dividends Dividend Yield 6.8% 5.6% 41.7% 2.2% 2.3% 5 Year Average Yield 3.8% 4.6% 19.7% 0.0% 1.3% 5 Year Dividend Growth Rate 3.0% (7.5)% 311.7% (1.0)% (3.1)% Payout Ratio (TTM) 86.7% 56.9% 305.8% 0.0% 27.0% Comparison of Revenue Growth and Earnings Yield Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have a market capitalization up to $35 billion. Companies with NA or NM values do not appear. TRTI, NOR, CMS, CNP, EIX, PCG have been excluded because of Earnings Yield greater than 18%. OUTT, APPNE, CVGYQ, BCON, USEY, NWPW, BGY, ILA, SRP, MIR, XEL, TXU have been excluded because of Earnings Yield less than -6%. APPNE, NWPW have been excluded because of Revenue Growth greater than 50%. OUTT, BCON have been excluded because of Revenue Growth less than -50%. Revenue Growth (TTM) -50% -25% 0% 25% 50% WR(-15%) AYE(-25%) SPI(-6%) CIG NGG AEP SZE CEG EDE HNP AES POM UU OTTR PPL EAS CLPHY SO UIL OGE CV WPS ENI PGN FPL AEE EXC EOC CHG HE GMP D CNL CIN LNT MGEE UTL ETR EE DQE WEC ED NST MWH NU DUK TAC SCG PSD AVA(-54%) PNM(-52%) IDA(-74%) KEP(29%) POWR TE -6% 0% 6% 12% 18% Earnings (TTM) / Price UNS DTE(60%) FE(53%) GXP PNW BKH CPN(19%) RRI(21%) MAP TTM Revenue Quintile Prepared Saturday, February 8, 23 Page 6

7 Profitability DUK Average High Low S&P 5 DUK s 5-year revenue growth is slower than the industry average. The 5-year earnings growth rate is slower than the industry average. Growth Rates Revenue (MRQ) vs. Qtr 1 Yr. Ago 3.9% 4.5% 158.2% (1.0)% 8.5% Revenue (TTM) vs. TTM Last Year (18.0)% (2.6)% 366.4% (1.0)% 4.6% Revenue 5 Year Growth Rate (1.4)% 16.0% 368.8% (1.0)% 10.8% EPS (MRQ) vs. Qtr 1 Yr. Ago NM 14.4% 4.7% (796.1)% 27.6% EPS (TTM) vs. TTM 1 Yr. Ago (50.9)% 5.7% 479.5% (90.1)% 22.8% EPS - 5 Yr. Growth Rate (0.4)% 5.5% 246.5% (49.1)% 9.6% Dividend - 5 Yr. Growth Rate 3.0% (7.5)% 311.7% (1.0)% (3.1)% Capital Spending - 5 Yr. Growth (1.0)% 2.4% 273.2% (1.0)% (9.9)% Comparison of Revenue Growth and EBITD Margin (Earnings Before Interest, Taxes, and Depreciation / Revenues) Companies with higher than average EBITD margin and revenue growth are doing well. Companies with a low EBITD margin and revenue growth are suffering. Companies for this scatter plot have a market capitalization up to $35 billion. Companies with NA or NM values do not appear. OUTT, NWPW have been excluded because of EBITD Margin less than -20%. NWPW has been excluded because of Revenue Growth greater than 60%. OUTT has been excluded because of Revenue Growth less than -60%. TTM Revenue Quintile 81-1% > $9.89 billion 61-80% $ billion 41-60% $ billion 21-40% $721-2,3 million 0-20% < $721 million Revenue Growth (TTM) -60% -30% 0% 30% 60% CVGYQ(-29%) TRTI(-278%) ILA BGY XEL APPNE(366%) CIG USEY GXP SZE CEG NGG CPN EDE POM AES UU OTTR EAS PPL POWR UIL TE SO ENI CV OGE EXC CLPHY WPS FPL PGN AEE CHG D CNL GMP HE LNT UTL CMS WRCIN MGEE RRI ETR ED EE WEC DQE AYE MWH NUNST DUK SPI MIR TAC SCG SRP CNP PSD NOR PNM DTE(60%) -20% 0% 20% 40% 60% EBITD Margin (TTM) PCG AEP AVA TXU FE IDA(-74%) UNS PNW KEP BKH HNP EOC EIX MAP Prepared Saturday, February 8, 23 Page 7

8 Returns DUK Average High Low S&P 5 is less leveraged than the average for the Electric Utilities industry. DUK s TTM return on assets is lower than the industry average. Financial Strength Quick Ratio (MRQ) Current Ratio (MRQ) LT Debt/Equity (MRQ) Total Debt/Equity (MRQ) Interest Coverage (TTM) (925.0) 11.7 Management Effectiveness Return On Assets (TTM) 1.6% 2.5% 84.5% (248.2)% 6.3% Return On Assets - 5 Yr. Avg. 3.5% 3.3% 11.3% (157.5)% 7.7% Return On Investment (TTM) 3.0% 3.1% 385.7% (104.3)% 10.2% Return On Investment - 5 Yr. Avg. 4.6% 3.9% 31.1% (224.6)% 12.4% Return On Equity (TTM) 6.9% 9.5% 386.7% (146.6)% 18.5% Return On Equity - 5 Yr. Avg. 13.7% 11.9% 36.4% (352.8)% 21.4% Comparison of Total Debt to Total Capitalization and Return on Equity Companies with high ROE and low total debt to capitalization are exceptional. Companies with high debt to capitalization and low ROE are taking a lot of risk and not getting a satisfactory return. Companies for this scatter plot have a market capitalization up to $35 billion. Companies with NA or NM values do not appear. RKE has been excluded because of Return On Equity greater than 50%. NWPW has been excluded because of Return On Equity less than -50%. RKE has been excluded because of Total Debt/Total Cap greater than 90%. TTM Revenue Quintile 81-1% > $10.2 billion 61-80% $ billion 41-60% $ billion 21-40% $744-2,3 million 0-20% < $744 million Total Debt/Total Cap (MRQ) 0% 30% 60% 90% BGY(-147%) TXU BCON(-75%) ILA XEL NOR CNP UNS ENI CMS CPN WR PPL SRP SZE ELE USEY NGG EOC AYE DQE CNL WECPOM NU EXC LNT FEDTE NST MIR UTL PSDBKH SPI SCG OGEEAS PGN AEP D GXP AVA TE CIN DUK IDA TAC PNW EDPEESO RRI EDE CEG UIL EN ETR WPS ED PNM FPL HE IPR AEE OTTR GMP CV MAP MGEE KEP TGN CIG AES(91%) MWH UU HNP POWR TRTI(387%) -50% -25% 0% 25% 50% Return On Equity (TTM) CHG ELP CLPHY EIX(1%) PCG Prepared Saturday, February 8, 23 Page 8

9 Growth Rates DUK s TTM gross margin is lower than the average for the industry. DUK s revenue per employee is lower than the industry average. DUK Average High Low S&P 5 Profitability Ratios Gross Margin (TTM) 31.9% 33.8% 1,3.0% (48.0)% 47.4% Gross Margin - 5 Yr. Avg. 22.0% 33.9% 1.0% (7.2)% 47.7% EBITD Margin (TTM) 15.9% 25.9% 59.9% (86.6)% 19.9% EBITD Margin - 5 Yr. Avg. 20.0% 28.3% 50.4% (91.3)% 21.9% Operating Margin (TTM) 18.0% 16.6% 59.4% (91.9)% 18.0% Operating Margin - 5 Yr. Avg. 14.1% 18.0% 40.1% (92.1)% 18.2% Pretax Margin (TTM) 10.9% 10.4% 1,549.9% (88.3)% 16.1% Pretax Margin - 5 Yr. Avg. 10.2% 12.3% 54.2% (14.7)% 17.3% Profit Margin (TTM) 6.8% 6.6% 1,113.6% (88.3)% 10.9% Profit Margin - 5 Yr. Avg. 6.4% 7.9% 97.3% (14.9)% 11.4% Effective Tax Rate (TTM) 37.4% 34.7% 64.2% 0.0% 31.6% Effective Tax Rate - 5 Yr. Avg. 36.7% 36.6% 85.9% 0.0% 35.4% Operating Efficiency Revenue/Employee (TTM) $632,750 $649,195 $6,088,556 $2,0 $484,263 Net Income/Employee (TTM) $43,083 $52,338 $486,267 $2,8 $74,362 Receivable Turnover (TTM) 2.4x 7.5x 16.6x 0.0x 9.5x Inventory Turnover (TTM) 8.9x 15.3x 318.7x 0.0x 10.9x Asset Turnover (TTM) 0.2x 0.4x 1.4x 0.0x 0.9x Comparison of Profit Margin (TTM) vs. Profit Margin (5-Yr. Avg) Companies with TTM profit margins above their 5-year average are improving their profitability. Companies for this scatter plot have a market capitalization up to $35 billion. Companies with NA or NM values do not appear. TRTI, CLPHY have been excluded because of 5-Yr. Avg. Profit Margin greater than 15%. CVGYQ, BGY have been excluded because of 5-Yr. Avg. Profit Margin less than 0%. TRTI, CLPHY have been excluded because of TTM Profit Margin greater than 30%. CVGYQ, BGY have been excluded because of TTM Profit Margin less than -20%. Profit Margin (TTM) -20% -10% 0% 10% 20% 30% ILA MAP UU BKH D ELP(23%) SO KEP TE EOC MGEE CEG EXC CNL AEE MWH(-15%) PPL PCG ETR GXP EDE PNW IDAED EE FPL CV NST HE OTTR DTE FE PGN ELE DUK ENI CHG CNP GMP WPS TAC EDP UIL EAS CMS UNS AVA OGE PNM LNT POM EN CIN SZEWEC CPN NU UTL PSD DQE AES RRI POWR SCG NOR AEP MIR CIG SRP EIX WR TXU(-30%) SPI XEL(-20%) 0% 5% 10% 15% Profit Margin (5-Yr. Avg.) AYE IPR HNP(22%) NGG(34%) TTM Revenue Quintile Prepared Saturday, February 8, 23 Page 9

10 Annual Financials Years are Fiscal Years Annual Income Statement In Millions, Except Per Share Amounts (Currency is U.S. Dollars) Revenue 19 Dec Dec Dec Dec Dec $17.7 $21.8 $49.3 $18.5 $15.2 Natural & Petroleum $7,854 $10,922 $28,284 $6,170 $4,056 Gener. /Dist./Trans. 4,586 4,7 5,315 7,222 7,075 Transport. & Storage 1,450 1,139 1, ,560 Trading/Mrktg-Elect. 2,788 3,745 13,086 2,409 1,084 Revenue 4 1,161 1,181 1,730 1,411 Sale of Equity Inv Total Revenue $17,662 $21,766 $49,318 $18,525 $15,186 Gross Margin 21.2% 14.5% 10.9% 31.7% 31.9% Fuel for Resale $7,497 $10,636 $27,670 $6,489 $3,926 Intrch./Pur. Power 2,916 3,507 12, Other Oper./Maint. 2,738 3,7 3,469 4,135 4,168 Fuel ,583 1,606 Deprec./Amort ,167 1,336 1,571 General Taxes/Property Total Expenses $15,177 $19,947 $45,505 $14,425 $12,449 Interest Expense (514) (6) (911) (785) (1,110) Other, Net (106) (171) 25 Income Before Taxes $2,037 $1,3 $2,796 $3,144 $1,652 Income Taxes ,0 1, Income After Taxes $1,260 $847 $1,776 $1,4 $1,034 Preferred Dividends (21) (20) (19) (14) (13) Common Dividends/Share $1.10 $1.10 $1.10 $1.10 $1.10 EPS Reconciliation Adjusted Income Available to Common $1,239 $827 $1,757 $1,0 $1,1 Primary/Basic Average Sh Pri/Bas EPS Ex. Extraordinary Items $1.72 $1.13 $2.39 $2.58 $1.22 Extraordinary Item (8) Accounting Changes (96) 0 Net Income $1,231 $1,487 $1,757 $1,884 $1,1 Pri/Bas EPS In. Extraordinary Items $1.71 $2.04 $2.39 $2.46 $1.22 Diluted Average Shs Diluted EPS Excl Extraordinary Items $1.71 $1.13 $2.38 $2.56 $1.22 Diluted EPS Incl Extraordinary Items $1.70 $2.04 $2.38 $2.44 $1.22 EPS Primary Excl. Extraordinary Items Avg Shares Outstanding EBITD Margin Preferred Dividend $1.72 $1.13 $2.39 $2.58 $ % 12.8% 29.3% 28.4% $21.0 $20.0 $19.0 $14.0 $ % Prepared Saturday, February 8, 23 Page 10

11 Annual Financials Net Utility Plant ($8.6) ($9.4) ($10.1) Total Liabilities $18.3 $24.1 $47.9 ($11.0) $35.6 ($12.5) $46.0 Years are Fiscal Years In Millions (Currency is U.S. Dollars) Annual Balance Sheet Dec Dec Dec Dec Dec Assets Cash/Equival. $80 $613 $622 $290 $857 Receivables 2,318 3,248 8,648 5,3 6,766 Inventories ,7 1,134 Natural Gas Cost Market Transact. 1,457 1,131 11,038 2,326 2,144 Capacity Costs Other , Total Current Assets $4,843 $6,171 $22,513 $9,6 $11,852 Total Property $0 $0 $0 $0 $48,788 Property & Equipment 25,447 30,353 34,490 39,213 0 Goodwill, Net ,566 1,730 3,651 Other LT Assets 3,691 4,1 8,314 7,305 7,174 L.T. Investments 9 1,2 1,387 1,480 2,066 Utility Plant 1, Depreciation (10,253) (9,441) (10,146) (11,049) (12,458) Equipment Total Assets $26,806 $33,409 $58,232 $48,531 $61,073 Total Equity $8.5 $9.3 $10.3 $12.9 Shares Outstanding $15.1 Liabilities Accounts Payable $1,754 $2,312 $7,733 $4,231 $5,590 Notes Payable ,826 1, Accrued-Tax/Othr Oth. Curr. Liab ,977 2,385 2,080 Cur.Por.LTD/Stock ,331 Market Transact. 1,387 1,241 11,070 1,519 1,918 Total Current Liabs $4,955 $5,876 $23,337 $10,455 $11,0 Total Long Term Debt $6,272 $8,683 $10,717 $12,321 $20,221 Deferred Taxes $3,705 $3,4 $3,851 $4,307 $5,104 Other LT Liabilities 3,411 6,170 10,4 8,525 8,643 Total Liabilities $18,343 $24,131 $47,929 $35,608 $45, Shareholder Equity Prfd.Stk.-Sinkng $104 $71 $38 $25 $23 Preferred Stock Common Stock 4,449 4,603 4,797 6,217 9,236 Retained Earnings 3,7 4,397 5,379 6,292 6,417 Comp. Income 0 (2) (120) 180 (695) Total Equity $8,463 $9,278 $10,303 $12,923 $15,115 Total Liab. & Sh. Equity $26,806 $33,409 $58,232 $48,531 $61,073 Shares Outstanding Prepared Saturday, February 8, 23 Page 11

12 Annual Financials Years are Fiscal Years In Millions of U.S. Dollars Annual Cash Flow Statement Cash From Operations 19 Dec Dec Dec Dec Dec $2,331 $2,684 $2,225 $4,595 $4,656 Total Capital Expend. ($2,5) ($5,291) ($4,568) ($5,930) $0 Cash From Financing $78 $1,6 $2,714 $1,354 $2,846 Net Change In Cash ($67) $533 $9 ($332) $567 Cash From (Used By) Operations Net Income $1,252 $1,507 $1,776 $1,8 $1,034 Depreciation 1,055 1,151 1,348 1,450 1,695 Market Gain (75) (24) (464) 91 0 Extraordinary Item 8 (660) Sale of Investments Sec. 0 0 (407) 0 0 Provision on NAWE Impairment Charges Injuries/Damages Deferred Taxes (35) (210) Purchased Capacity Recoveries/Other (28) Accounts Rcvbl. (18) (659) (5,167) 3,166 0 Materials/Supplies (104) (89) (1) (192) 0 Other Operating ,757 (2,235) 1,927 Acctg. Change Cash From Operations $2,331 $2,684 $2,225 $4,595 $4,656 Plus: Cash From (Used by) Investment Activities Capital Expenditures ($2,5) ($5,291) ($4,568) ($5,930) $0 Investments Expenditure 0 (596) (966) (1,093) 0 Notes Rcvbl (158) 2 0 Other (6,935) Sale of Subsid. 0 1, Decommissioning Cash From Investing ($2,476) ($3,751) ($4,930) ($6,281) ($6,935) Plus: Cash From (Used By) Financing Activities ST Notes/LT Debt 1,357 3,221 3,206 2,673 0 Other Financing (154) (303) 2,846 Purch./Sale of Stock (4) ,3 0 Debt, Net (6) (1,505) (1,191) (1,2) 0 Dividends (Paid) (814) (822) (828) (871) 0 Notes/Comm.Paper (350) 58 1,484 (246) 0 Cash From Financing $78 $1,6 $2,714 $1,354 $2,846 Equals: Increase (Decrease) In Cash Net Change In Cash ($67) $533 $9 ($332) $567 Free Cash Flow ($3) ($3,429) ($3,171) ($2,206) $4,656 Prepared Saturday, February 8, 23 Page 12

13 Quarterly Financials Years are Fiscal Years Quarterly Income Statement In Millions, Except Per Share Amounts (Currency is U.S. Dollars) Revenue 3 Months Dec Months Mar Months Jun Months Sep Months Dec $3.8 $11.9 $7.1 $4.1 $4.0 Natural Gas Sales $1 $5,629 $2,4 $1,184 $470 Electric Generation 1,538 1,703 3,169 2,238 1,668 Gas Transport Electric Trading 1,505 4,7 183 (116) 1,7 Other Total Revenue $3,849 $11,885 $7,128 $4,058 $4,0 Gross Margin 25.1% 9.8% 37.6% 29.0% 24.7% Fuel for Resale $1,249 $5,462 $1,883 $944 $1,0 Intrch./Pur. Power 183 4, Other Oper./Maint. 1, ,709 1,095 1,364 Fuel Depreciation/Amort General Taxes/Other Total Expenses $3,303 $11,194 $5,449 $3,447 $3,553 Interest Expense (179) (189) (453) (316) (341) Other, Net (35) (53) Income Before Taxes $332 $540 $1,261 $338 $53 Income Taxes Income After Taxes $225 $382 $856 $230 ($52) Preferred Dividends (2) (3) (7) (3) (3) Common Dividends/Share $0.275 $0.275 $0.825 $0. $0.275 EPS Reconciliation Adjusted Income Available to Common $223 $379 $849 $227 ($55) Primary/Basic Average Sh Pri/Bas EPS Ex. Extraordinary Items $0.29 $0.48 $1.06 $0.27 ($0.06) Net Income $223 $379 $849 $227 ($55) Pri/Bas EPS In. Extraordinary Items $0.29 $0.48 $1.06 $0.27 ($0.06) Diluted Average Shs Diluted EPS Excl Extraordinary Items $0.29 $0.48 $1.05 $0.27 ($0.06) Diluted EPS Incl Extraordinary Items $0.29 $0.48 $1.05 $0.27 ($0.06) EPS Primary Excl. Extraordinary Items Avg Shares Outstanding EBITD Margin Preferred Dividend $0.29 $0.48 $1.06 $0.27 ($0.06) % 8.7% 34.0% 25.5% 21.3% $2. $3. $7. $3. $3. Prepared Saturday, February 8, 23 Page 13

14 Quarterly Financials Net Utility Plant $28.4 $35.3 $36.4 $36.3 $36.3 Years are Fiscal Years In Millions (Currency is U.S. Dollars) Quarterly Balance Sheet Dec Mar Jun Sep Dec Assets Cash/Equiva Receivables 5,3 5,647 6,597 5,958 6,766 Inventory 1,7 1,149 1,174 1,166 1,134 Capacity Costs Oth. Curr. Asset 2,326 3,918 3,326 3,192 2,144 Other Total Current Assets $9,6 $11,694 $12,103 $11,537 $11,852 Total Liabilities $35.6 $47.4 $50.1 Total Equity $48.6 $46.0 L.T. Investments $6,209 $7,942 $8,943 $7,828 $6,283 Other LT Assets 2,576 3,187 3,2 2,862 2,957 Depreciation (11,049) (11,617) (11,835) (12,124) (12,458) Electric Plant 39,464 46,921 48,219 48,455 48,788 Goodwill 1,730 4,085 4,125 3,942 3,651 Inv.-Pension Costs Total Assets $48,531 $62,546 $65,192 $62,847 $61,073 Liabilities Accounts Payable $4,231 $4,234 $5,254 $4,441 $5,590 Notes Payable 1,603 2,615 2,673 2,1 915 Taxes Accrued , Oth. Curr. Liab. 2,385 1,661 2,135 1,935 2,080 Cur.Port.LTD/Preferred ,033 1,106 1,331 Unrlz.Loss-Mkt.Tran. 1,519 3,186 2,794 2,712 1,918 Total Current Liabs $10,455 $12,932 $14,746 $13,435 $11,0 Total Long Term Debt $12,321 $18,323 $18,319 $19,579 $20,221 $12.9 $15.1 $15.1 $14.3 Shares Outstanding $15.1 Deferred Taxes $4,307 $4,544 $4,696 $4,123 $5,104 Other LT Liabilities 8,525 11,647 12,312 11,424 8,643 Total Liabilities $35,608 $47,446 $50,073 $48,561 $45,958 Shareholder Equity Pfrd. Stk.with Sink Pfrd. Stock w/o Sink Common Stock 6,217 8,084 8,184 8,176 9,236 Retained Earnings 6,292 6,475 6,553 6,716 6,417 Comp. Income (763) (695) Total Equity $12,923 $15,1 $15,119 $14,286 $15, Total Liab. & Sh. Equity $48,531 $62,546 $65,192 $62,847 $61,073 Shares Outstanding Prepared Saturday, February 8, 23 Page 14

15 Quarterly Financials Years are Fiscal Years In Millions of U.S. Dollars Quarterly Cash Flow Statement Cash From Operations Dec Months Mar Months Jun Months Sep Dec $4,595 $820 $1,546 $3,265 $4,656 Total Capital Expend. ($5,930) ($1,274) ($2,685) ($3,750) Cash From Financing $1,354 $2,317 $2,8 $2,707 Net Change In Cash ($332) ($139) ($203) $183 $0 $2,846 $567 Cash From (Used By) Operations Net Income $1,8 $382 $856 $1,086 $1,034 Depreciation 1, ,269 1,695 Acct. Change Sale of Subsidiary 0 0 (29) (27) 0 Impairment Charges Deferred Taxes 129 (53) 14 (61) 0 Purchased Capacity Hedging Transaction (27) Market Gains Accounts Receivable 3,166 1,1 (4) 6 0 Materials/Supplies (192) Other Operating (2,929) (5) 51 (409) 1,927 Prepaid/Other Cur. 694 (2) (212) 0 0 Cash From Operations $4,595 $820 $1,546 $3,265 $4,656 Plus: Cash From (Used by) Investment Activities Capital Expenditures ($5,930) ($1,274) ($2,685) ($3,750) $0 Investment Securities (1,093) (320) (615) (636) 0 Purch.of Co.-Acquis. 0 (1,690) (1,690) (1,690) 0 Sale of Subsidiaries Notes Rcvbl Other (22) (6,935) Cash From Investing ($6,281) ($3,276) ($4,647) ($5,789) ($6,935) Plus: Cash From (Used By) Financing Activities Proc.-Long Term Debt $2,673 $2,346 $2,743 $3,447 $0 Issu. Common/Options 1, Pymt.-Long Term Debt (1,2) (407) (523) (749) 0 Purch./Sale of Stock (33) 0 0 (75) 0 Debt, Net (246) Contr. from Minority ,931 0 Other Financing (329) (84) 261 (1,692) 0 Dividends (Paid) (871) (222) (459) (697) 0 Other 26 (43) (23) 58 2,846 Cash From Financing $1,354 $2,317 $2,8 $2,707 $2,846 Equals: Increase (Decrease) In Cash Net Change In Cash ($332) ($139) ($203) $183 $567 Free Cash Flow ($2,206) ($676) ($1,5) ($1,182) $4,656 Prepared Saturday, February 8, 23 Page 15