Jim Fitterling: Thank you, Andrew. Beginning on Slide 3, there's a lot to unpack in our results this quarter, so let me first walk through the headlines. In the fourth quarter, Team Dow delivered our fifth consecutive quarter of year-over-year volume growth despite continued weak macroeconomic conditions. Net sales were $10.4 billion, which is down 2% versus the year ago period, and reflects pricing pressure seen across the industry in the quarter. Local price was down 3% year-over-year and sequentially with declines across all our operating segments. Operating EBITDA was $1.2 billion, which is approximately flat compared to the same period last year. Cash flow from continuing operations was $811 million, resulting in free cash flow of $44 million. Returns to shareholders totaled $492 million of dividends in the quarter, and our total CapEx spend was $767 million. As you saw in our numbers this quarter, we also had a non-cash tax adjustment impacting net income and EPS. Jeff will provide more details on that later in this call. Throughout the quarter, we announced additional actions that continued to support the optimization of our global portfolio for growth, while maintaining a best owner mindset. For example, we continued to ramp up operating rates at our Texas-8 cracker and Glycol 2 unit. We completed the sale of our flexible packaging laminating adhesive business to Arkema for an enterprise value of approximately $150 million. And we've designed a definitive agreement with Macquarie Asset Management for the sale of a minority stake in select U.S. Gulf Coast infrastructure assets for which we expect to receive cash proceeds of up to $3 billion. And driven by persistently weak global macroeconomic conditions, we announced a strategic review of select European assets, primarily in our polyurethanes business, where demand has been structurally challenged over the past five years, making it the highest cost region for several of our key businesses. We are also postponing a maintenance turnaround at one of our ethylene crackers in Europe. This decision will result in us idling this asset starting in second quarter until market dynamics improve. And today we announced targeted actions to reduce our costs by $1 billion and our CapEx by $300 million to $500 million. Collectively, the additional actions are focused on reinforcing our long-term competitiveness as we continue to navigate this prolonged economic downturn. Turning to Slide 4. In 2024, Team Dow continued to advance both our near-term priorities and our long-term strategy to become a stronger, more innovative company. We delivered net sales of $43 billion, operating EBIT of $2.6 billion, and year-over-year volume growth of 3%, excluding merchant hydrocarbon sales. Earlier in 2024, we began construction at our Path2Zero investment in Fort Saskatchewan, Alberta. When complete, the project is expected to generate approximately $1 billion in incremental EBITDA annually by 2030. Dow is also recognized externally through industry-leading awards and certifications. Last year, we earned 12 Edison Awards for Innovation and Great Place to Work and Fortune, named out as one of the top 25 world's best workplaces. Team Dow navigated several challenges over the past year, including weather-related and supply chain disruptions, and continued uncertainty in many regions and markets that we serve. And in response to evolving market dynamics and sluggish demand recovery in Europe, we demonstrated our best owner mindset with more than 20 proactive actions to address higher cost assets. I remain confident in our company's ability to foster a sustainable future, achieve long-term profitable growth, and enhance shareholder returns. Now, I'm pleased to turn it over to Karen S. Carter, Dow's Chief Operating Officer, who will provide an overview of our operating segment performance on Slide 5.


net sales operating EBIT year-over-year volume growth of 3% excluding merchant hydrocarbon sales 2024


Jim Fitterling: Thank you, Pankaj. Beginning on Slide 3. In the first quarter, Team Dow demonstrated its agility, delivering sequential earnings improvement in what continues to be a challenging environment. These results reflect our competitive advantages and operating discipline as we leveraged our structurally advantaged feedstock positions, proactively aligned our operating rates with market demand and focused on higher-value products where pockets of demand remain resilient, such as pharmaceutical applications, energy, commercial building and construction and mobility end markets. Additionally, our actions to deliver $1 billion in cost savings in 2023 are progressing with $100 million achieved in the first quarter. These actions will ensure we continue to focus on cash flow generation through our low-cost to serve operating model. Turning to the details of the quarter. Net sales were $11.9 billion, down 22% year-over-year. Declines in all operating segments were driven by continued soft global macroeconomic activity. Sales were flat sequentially, as gains in performance materials and coatings and packaging and specialty plastics offset declines in industrial intermediates and infrastructure. Volume decreased 11% year-over-year, led by declines in Europe, the Middle East, Africa and India or EMEA. However, volumes increased 2% sequentially on gains in performance materials and coatings and packaging and specialty plastics. Local price declined 10% year-over-year and 4% quarter-over-quarter, due to industry supply additions in some businesses amidst soft global economic conditions. Operating EBIT for the quarter was $708 million, down year-over-year due to lower local prices and volumes. Sequentially, operating EBIT improved by $107 million, with gains primarily driven by performance materials and coatings. Cash flow from operations was $531 million in the quarter. On a trailing 12-month basis, cash flow conversion was 85%. With ample financial flexibility and a strong balance sheet, we are continuing to execute on our strategy as we advance our disciplined and balanced capital allocation priorities for long-term value creation. We returned $621 million to shareholders through dividends and share repurchases during the quarter and our balance sheet continues to have no substantive long-term debt maturities until 2027. Now turning to operating segment performance on Slide 4. In the Packaging & Specialty Plastics segment, operating EBIT was $642 million compared to $1.2 billion in the year ago period, primarily due to lower integrated polyethylene margins. Continued margin resilience in functional polymers was more than offset by lower polyethylene and olefins margins. Volume declines were primarily driven by lower consumer demand in EMEA. Sadara also had lower export volumes due to planned maintenance activity. Sequentially, operating EBIT was down by $13 million. Improved input costs and higher operating rates in our most cost advantage assets were more than offset by lower sales from non-recurring licensing activity and lower equity earnings. Moving to the Industrial Intermediates & Infrastructure segment. Operating EBIT for the segment was $123 million compared to $661 million in the year ago period. Results were driven by lower pricing and demand, as well as higher energy costs, particularly in EMEA. Sequentially, operating EBIT was down $41 million. Lower energy costs were more than offset by decreased demand and pricing for propylene oxide, its derivatives, and in isocyanates, in polyurethanes and construction chemicals. Industrial Solutions experienced lower volumes due to weather-related impacts and a third-party supply outage combined with lower demand in industrial end markets. And in the Performance Materials and Coatings segment, operating EBIT for the segment was $35 million compared to $595 million in the year ago period. Local price declines for siloxanes were driven by competitive pricing pressure from supply additions in China. Volume was down as resilient demand for commercial building and construction, mobility and industrial coatings was more than offset by volume declines in siloxanes and architectural coatings. Sequentially, operating EBIT increased $165 million, driven by improved supply availability, seasonally higher volumes, and reduced value chain destocking. Next, I'll turn it over to Howard to review our outlooks and actions on Slide 5.

operating EBIT $708 million down year-over-year


operating EBIT $123 million $661 million


Jim Fitterling: Thank you, Pankaj. Beginning on Slide 3, we continued to navigate a challenging macroeconomic environment with slow global growth in the second quarter. Despite lower year-over-year sales and earnings, Team Dow delivered sequential earnings improvement by executing on our financial and operational playbook. We leveraged our diverse portfolio to capitalize on gains in packaging and modestly higher seasonal demand in building and construction. This resulted in a sequential improvement in volume. In addition, we continue to implement our $1 billion of proactive and targeted cost savings actions delivering $250 million of savings in the quarter and $350 year to date. Net sales were $11.4 billion, down 27% versus the year ago period, reflecting lower demand and prices due to slower macroeconomic activity. Sales were down 4% sequentially, as volume gains were more than offset by lower local prices. Volume decreased 8% year-over-year, led by a 14% decline in Europe, the Middle East, Africa, and India, or EMEA. Volume was up 1% sequentially, driven by gains in Asia Pacific and Latin America, as well as in industrial intermediates and infrastructure and performance materials and coatings. Local price decreased 18% year-over-year and 5% sequentially due to lower demand on weak macroeconomic activity, as well as lower global raw material costs. Operating EBIT for the quarter was $885 million, down from $2.4 billion in the year ago period, primarily driven by lower local prices. Operating EBIT increased $177 million sequentially, driven by gains in packaging and specialty plastics. We generated cash flow from operations of more than $1.3 billion, up more than $800 million versus the prior quarter, driven by improved working capital. On a trailing 12 month basis, our cash flow conversion is 98%. Our strong financial position gives us the flexibility to continue to advance our long term strategic priorities, supported by our disciplined and balanced capital allocation strategy. In the quarter, we returned $743 million to shareholders through dividends and share repurchases. Year to date, we've returned nearly $1.4 billion. And our balance sheet remains healthy, supported by strong investment grade credit ratings. We also published our 2022 INtersections Report in June. The report once again received limited assurance by our external audit firm and showcases Dow's continued progress on our ambition to be the most innovative customer centric, inclusive and sustainable material science company in the world. Now turning to our operating segment performance on Slide 4. In the Packaging and Specialty Plastics segment, operating EBIT was $918 million compared to $1.4 billion in the year ago period. Local price declines were driven by lower global energy and feedstock costs, which in turn impacted polyethylene prices across all regions. Volume declines, primarily in EMEA, were driven by lower demand for olefins and aromatics. Sequentially operating EBIT improved by $276 million, driven by lower energy and feedstock costs. Moving to the Industrial Intermediates and Infrastructure segment, operating EBIT was a loss of $35 million, compared to earnings of 426 million in the year ago period. Results were driven by lower local prices and demand in both businesses. Volume declines were primarily driven by lower demand for consumer durables, building and construction, and industrial applications. Sequentially, operating EBIT was down $158 million due to lower local prices and increased planned maintenance turnaround activity. And in the Performance Materials and Coatings segment, operating EBIT was $66 million compared to $561 million in the year ago period. Local price decreases were driven primarily by declines for siloxanes and acrylic monomers. Volume was down on lower global demand for silicones and coatings applications. Sequentially, operating EBIT increased $31 million, driven primarily by seasonally higher volumes. Next, I'll turn it over to Howard to review our outlook and actions on Slide 5.


Jim Fitterling: Thank you, Pankaj. Beginning on Slide 3. For the third quarter, we continued to advance our long-term strategy while also taking action to reduce costs and maximize cash generation in the face of slow global macroeconomic activity and higher sequential feedstock costs. In particular, we continue to implement targeted actions to deliver $1 billion in cost savings in 2023 and delivered a sequential improvement to operating cash flow of more than $300 million. Net sales were $10.7 billion, down 24% versus the year ago period reflecting declines in all operating segments due to slower global macroeconomic activity. Sales were down 6% sequentially as volume gains were more than offset by lower local prices. Volume decreased 6% year-over-year, mainly due to lower merchant Hydrocarbons and Energy sales. Volume was up 1% sequentially, led by gains in Industrial Intermediates & Infrastructure and Performance Materials & Coatings. Volume was up 3% sequentially, excluding merchant sales and Hydrocarbons & Energy with gains across all operating segments. Local price decreased 18% year-over-year with declines in all operating segments and regions, primarily due to lower feedstock and energy costs. Sequentially, price was down 7%, primarily in Europe, the Middle East, Africa and India or EMEAI. Operating EBIT for the quarter was $626 million, down from $1.2 billion in the year ago period and $885 million in the prior quarter. Our consistent focus on cash flow generation and working capital management enabled team Dow to generate cash flow from operations of $1.7 billion, resulting in a cash flow conversion of 129% for the quarter and 103% on a trailing 12-month basis. We continue to invest in our long-term strategic priority while also returning $617 million to shareholders in the quarter through dividends and share repurchases. Year-to-date, we've returned nearly $2 billion to shareholders. Our cash flow generation continues to enable Dow to fully cover its capital allocation priorities. And our balance sheet remains the best it has been in four decades, supported by strong investment-grade credit ratings with no substantive long-term debt maturities due until 2027. Now turning to our operating segment performance on Slide 4. In the Packaging & Specialty Plastics segment, operating EBIT was $476 million compared to $785 million in the year ago period. Local price declines were driven by lower polyethylene and olefin prices in all regions, primarily as a result of lower global energy costs. Volume declined as increased polyethylene demand across all regions was more than offset by lower volumes in merchant hydrocarbons and energy sales. Sequentially, operating EBIT decreased by $442 million, driven by lower integrated polyethylene margins, increased planned maintenance activity and lower licensing revenue. Moving to the Industrial Intermediates & Infrastructure segment, operating EBIT was $21 million compared to $167 million in the year ago period. Results were driven by lower prices and demand in both businesses as well as reduced supply availability due to an unplanned event in Industrial Solutions at our Louisiana operations. Sequentially, operating EBIT was up $56 million driven by volume gains and lower costs, which were partly offset by the Louisiana event. And in the Performance Materials & Coatings segment, operating EBIT was $179 million compared to $302 million in the year ago period, driven by local price declines in both businesses. Volume was down as gains in commercial building and construction end markets were more than offset by lower demand for personal care and coatings applications and residential construction. Sequentially, operating EBIT increased $113 million, driven by higher operating rates and cost savings. Next, I'll turn it over to Howard to review our outlook and actions on Slide 5.

Operating EBIT $626 million year ago period


Jim Fitterling: Thank you, Pankaj. Beginning on Slide 3, in the fourth quarter, we continue to execute with discipline and advance our long-term strategy in face of a dynamic macroeconomic environment. Net sales were $10.6 billion, down 10% versus the year-ago period, reflecting declines in all operating segments. Sales were down 1% sequentially as volume gains in Packaging & Specialty Plastics were more than offset by seasonal demand declines in Performance Materials & Coatings. Volume increased 2% year-over-year, with gains across all regions except Asia Pacific, which was flat. Sequentially volume decreased by 1%, including the impact of an unplanned event from a storm that was equivalent to a Category 1 hurricane at our Bahía Blanca site in Argentina. Local price decreased 13% year-over-year, with declines in all operating segments due to lower feedstocks and energy costs. Sequentially, price was flat, reflecting modest gains in most regions. Operating EBIT for the quarter was $559 million, down $42 million year-over-year, primarily driven by lower prices. Sequentially, operating EBIT was down $67 million, as gains in Packaging & Specialty Plastics were more than offset by seasonally lower volumes in Performance Materials & Coatings. Our cash flow generation and working capital management enabled us to deliver cash flow from operations of $1.6 billion in the quarter. We continued to reduce costs and focused on cash generation, completing our $1 billion of cost savings for the year. And in the fourth quarter, we pursued additional de-risking opportunities for our pension plans, including annuitization and risk transfer of $1.7 billion in pension liability and a one-time non-cash and non-operating settlement charge of $642 million. We also advanced our long-term strategy while returning $616 million to shareholders. And we reached final investment decision with our Board of Directors for our Path2Zero project in Fort Saskatchewan, Alberta. Now, turning to our full year performance on Slide 4. Our 2023 results demonstrate strong execution and a commitment to financial discipline. Against the dynamic macroeconomic backdrop, Team Dow continued to take proactive actions. As a result, we generated $5.2 billion in cash flow from operations for the year, reflecting a cash flow conversion of 96%. We also returned $2.6 billion to shareholders through dividends and share repurchases. Our efforts continue to be recognized externally through industry-leading awards, certifications and recognitions, and we continue to outpace our peers on leadership diversity. I'm proud of how Team Dow is delivering for our customers, driving shareholder value and supporting our communities as we progress our long-term strategy. Now, turning to operating segment performance on Slide 5. In the Packaging & Specialty Plastics segment, operating EBIT was $664 million, up $9 million compared to the year-ago period. Results were driven by lower input costs and higher operating rates, where we closed out the year strong and hit record ethylene production levels on a full-year basis. Local price declines were driven by lower global prices, while volume increases were led by higher packaging demand, primarily in the U.S., Canada and Latin America. Sequentially, operating EBIT increased by $188 million. This was driven by higher integrated polyethylene margins, the impact of planned maintenance activity in the third quarter and higher licensing revenue. Moving to the Industrial Intermediates & Infrastructure segment, operating EBIT was $15 million compared to $164 million in the year-ago period. Results were driven by lower local prices in both businesses as well as reduced supply availability in Industrial Solution. Sequentially, operating EBIT was down $6 million, driven by seasonally lower volumes in building and construction end markets, which were partially offset by seasonally higher demand for deicing fluid and higher demand for mobility applications. And in the Performance Materials & Coatings segment, operating EBIT was a loss of $61 million compared to a loss of $130 million in the year-ago period, driven by lower costs and reduced planned maintenance turnaround activity. Volume was up year-over-year, driven by higher demand in project-driven building and construction end markets. Sequentially, operating EBIT decreased $240 million, primarily due to seasonally lower volumes. Next, I'll turn it over to Jeff to review our outlook and actions on Slide 6.


Now let me turn the call over to Jim. James Fitterling: Thank you, Pankaj. Beginning on Slide 3. In the first quarter, Team Dow delivered sequential volume growth and margin expansion. We strategically increased operating rates to capture improving demand, we maintained pricing and we benefited from lower feedstock and energy costs. These results reflect the strength of our advantaged portfolio, including our participation in diverse end markets and our cost advantage positions around the world. Net sales were $10.8 billion, down 9% versus the year ago period but up 1% sequentially, driven by gains in Performance Materials & Coatings and Industrial Intermediates & Infrastructure. Volume increased 1% year-over-year. And excluding Hydrocarbons & Energy, volume increased 5%, with gains in all regions. This marks the second consecutive quarter of year-over-year volume growth. Sequentially, volume increased 1% and excluding Hydrocarbons & Energy, was up 3%, led by gains in Performance Materials and Coatings. Local price decreased 10% year-over-year and was flat sequentially as modest gains in Europe, the Middle East, Africa and India, or EMEAI, were offset by declines in Asia Pacific, the United States and Canada. Operating EBIT for the quarter was $674 million, down $34 million year-over-year driven by lower prices in all regions. Sequentially, operating EBIT was up $115 million, reflecting gains in Performance Materials & Coatings and Industrial Intermediates & Infrastructure. We delivered cash flow from operations of $460 million in the quarter, resulting in a 94% cash flow conversion on a trailing 12-month basis. This reflects our focus on cash flow generation and enabled $693 million in returns to shareholders. We also advanced our long-term strategy with our higher return, highly capital-efficient Path2Zero project in Fort Saskatchewan, Alberta, where construction started earlier this month. Now turning to our operating segment performance on Slide 4. In the Packaging & Specialty Plastics segment, operating EBIT was $605 million, down $37 million compared to the year ago period, primarily due to lower integrated margins. Local price declines were primarily driven by lower energy and feedstock costs globally. Volume decreased year-over-year driven by declines in the Hydrocarbons & Energy business. This was primarily due to prioritizing higher-value downstream derivative polymer sales as well as lighter feed slate cracking in Europe. Sequentially, operating EBIT decreased by $59 million as improved polyethylene integrated margins were more than offset by expected lower nonrecurring licensing revenue and higher planned maintenance activity. Moving to the Industrial Intermediates & Infrastructure segment. Operating EBIT was $87 million compared to $123 million in the year ago period. Results were driven by lower prices in both businesses, which were partly offset by 3 items: lower energy and feedstock costs, improved equity earnings and volume gains in Polyurethanes & Construction Chemicals. Sequentially, operating EBIT was up $72 million driven by improved equity earnings and lower energy and feedstock costs, primarily in EMEAI. And in the Performance Materials & Coatings segment, operating EBIT was $41 million, up $6 million compared to the year ago period, driven by volume growth and higher operating rates. Volume was up year-over-year driven by gains primarily in the United States, Canada and Latin America. Sequentially, operating EBIT increased $102 million driven by higher seasonal volumes and overall improved demand. Now I'll turn it over to Jeff to review our outlook and actions.


Jim Fitterling: Thank you, Andrew. Beginning on slide three, in the second quarter, team Dow delivered sequential top and bottom line growth, as well as the third consecutive quarter of year-over-year volume growth. We achieved this despite a slower-than-expected global macroeconomic recovery, particularly in areas like building and construction and consumer durables. Net sales were $10.9 billion, down 4% versus the year ago period and up 1% sequentially, driven by gains in packaging and specialty plastics and performance materials and coatings. Volume increased 1% versus the year ago period with gains led by the United States and Canada. Excluding hydrocarbons and energy sales, which were down primarily due to lighter feed slate cracking in Europe, volume increased 4%. Sequentially, volume increased 1% with gains in all regions except Asia Pacific, which was flat. Local price decreased 4% year-over-year. Sequentially, local price increased 1% led by gains in Europe, the Middle East, Africa, and India or EMEA. Operating EBIT was $819 million, up $145 million sequentially, reflecting gains in packaging and specialty plastics and performance materials and coatings. Cash flow from operations was $832 million on higher earnings and an efficient release of working capital, resulting in an 85% cash flow conversion on a trailing 12-month basis. Our focus on cash flow generation enabled $691 million in returns to shareholders, including $491 million through dividends and $200 million in share repurchases. In June, we published our 2023 Intersections Progress Report. This report showcases the positive impact that we are making on the environment and society and importantly, how those actions support long-term profitable growth. Now turning to our operating segment performance on slide four. In the packaging and specialty plastic segment, operating EBIT was $703 million, down $215 million a year-over-year, this was driven by lower integrated margins, higher planned maintenance activity, and lower non-recurring licensing sales. Local peak declines were due to lower downstream polymer prices, primarily in Asia Pacific. Volume decreased year-over-year as higher demand for functional polymers and polyethylene was more than offset by lower merchant hydrocarbon sales, primarily due to lighter feed slate cracking in Europe. Sequentially, operating EBIT increased by $98 million, primarily due to higher integrated margins behind both price and volume gain. Moving to the Industrial Intermediates & Infrastructure segment, operating EBIT was $7 million, an improvement of $42 million versus the year-ago period. Results were driven by improved equity earnings, partly offset by lower integrated margins. Local price declined year-over-year, but volume was up, driven by gains in polyurethane and construction chemicals. Sequentially operating EBIT decreased $80 million, driven by higher planned maintenance activity and higher equity losses, as well as lower volumes. And in the performance materials and coating segment, operating EBIT was $146 million, up $80 million, compared to the year-ago period, driven by broad-based business and geographic volume growth. Local price declined year-over-year, but volume was up, driven by gains in both businesses and all geographic regions. Sequentially operating EBIT increased to $105 million, driven by volume and price gains in both businesses and lower planned maintenance activity. Now I'll turn it over to Jeff to review our outlook and share some examples of our playbook in action.


Operating EBITDA approximately flat same period last year


packaging and specialty plastic segment operating ebit

Packaging & Specialty Plastics segment operating EBIT $642 million lower integrated polyethylene margins


Packaging and Specialty Plastics operating EBIT

Packaging and Specialty Plastics segment operating EBIT


Packaging & Specialty Plastics segment operating EBIT year ago period


Packaging & Specialty Plastics operating EBIT year-ago period

Packaging & Specialty Plastics Operating EBIT year-ago period

Packaging & Specialty Plastics segment operating EBIT year-over-year


Packaging & Specialty Plastics Operating EBIT

Packaging & Specialty Plastics segment operating EBIT $605 million down $37 million compared to the year ago period


packaging and specialty plastic segment operating EBIT year-over-year

packaging and specialty plastic segment operating EBIT second quarter

Operating EBIT packaging and specialty plastic segment second quarter


Karen S. Carter: Thank you, Jim. I'm pleased to join you all today. And before I begin, I'd like to mention what an honor it is to be named Dow's Chief Operating Officer. I look forward to engaging with many of you, our owners, in the near future. In my more than 30 years at Dow, I have progressed through the organization to most recently leading PNSP, the company's largest operating segment. And I have worked across a broad range of businesses and functions, including global leadership positions within the building and construction and consumer electronics and markets, as well as Dow's polyethylene franchise. This has given me a deep appreciation for our company's competitive advantages, the strength of our innovation engine, and our commitment to delivering profitable growth. As COO, my priorities are to further strengthen our customer engagement, accelerate the commercialization of Dow's innovation pipeline, and enhance reliability and productivity. I am committed to driving business and operational results, while progressing our strategic priorities to deliver long-term value for our shareholders. Now, let's move to our operating segment results. In the Packaging & Specialty Plastics segment, we entered the fourth quarter with a challenging backdrop of ample industry supply, high feedstock costs and a typical seasonal slowdown in demand. Segment results reflected a decrease in local price both year-over-year and sequentially. This was primarily driven by lower functional polymers and polyethylene prices as a result of the October price decline reflected in the market indices and other competitive price pressures throughout the quarter. Despite higher demand for flexible food and specialty packaging in all regions except Latin-America, volume for this segment was down 1% year-over-year. This was primarily driven by lower third-party hydrocarbon sales and non-recurring licensing revenue. Operating EBIT was $447 million, a decrease of $217 million compared to the year-ago period. This was primarily driven by lower integrated margins and licensing revenue. Moving to the Industrial Intermediates & Infrastructure segment. We benefited from strong global energy demand, as well as stable consumer and pharma demand. We also experienced typical seasonal improvements for deicing, while agricultural and coatings applications saw normal seasonal declines. Looking at fourth quarter results, local price declined 1% year-over-year, while volume was up 1% year-over-year. This was driven by improved supply availability in our Industrial Solutions business as we finished ramping-up our Glycol-2 unit ahead of schedule. Those gains were partly offset by continued softness in the Polyurethanes and Construction Chemicals business. Operating EBIT for the segment increased $69 million versus the year-ago period. Results were primarily driven by higher operating rates and improved supply availability in the Industrial Solutions business. And in the Performance Materials & Coating segment, volume was up 5% with strong gains across both architectural coatings and downstream silicones. We achieved this despite global weakness in building and construction end-markets as high-interest rates continue to pressure spending in residential markets. Operating EBIT increased $52 million compared to the year-ago period, driven by volume gains and lower fixed costs. Now, I'll turn the call over to Jeff, who will provide an overview of the macros and our outlook.

Packaging & Specialty Plastics segment Operating EBIT year-ago period


performance materials coatings segment operating ebit

Performance Materials and Coatings segment operating EBIT $35 million $595 million


Performance Materials and Coatings operating EBIT

Performance Materials and Coatings segment operating EBIT


Performance Materials & Coatings segment operating EBIT year ago period


Performance Materials & Coatings operating EBIT year-ago period

Performance Materials & Coatings Operating EBIT year-ago period


Performance Materials & Coatings Operating EBIT

Performance Materials & Coatings segment operating EBIT $41 million up $6 million compared to the year ago period


performance materials and coating segment operating EBIT year-ago period

performance materials and coating segment operating EBIT second quarter


Performance Materials & Coating segment Operating EBIT year-ago period


Lynn Good: Abby, thank you, and good morning everyone. Today, we announced 2023 adjusted earnings per share of $5.56, finishing the year within our guidance range and demonstrating once again our ability to exercise agility in managing our business and meeting our commitments. We also announced 2024 guidance of $5.85 to $6.10 with the midpoint of $5.98. This represents 6% growth from our original 2023 guidance and we extended our 5% to 7% EPS growth rate through 2028 off the midpoint of our 2024 range. We entered the year with significant momentum. 2024 marks a fundamental repositioning of our investment proposition. With the commercial renewable sale, we've transformed our business to become a fully regulated utility for the first time in decades. Along with improved regulatory constructs, we're poised to deliver on our simplified 100% regulated growth plan. Our Southeast and Midwest utilities operate in some of the fastest growing and most attractive jurisdictions across the US. We expect growth in our service territories to accelerate, as we move further into the energy transition driving substantial investment. We are now projecting $73 billion in CapEx over the next five years, an $8 billion increase versus our previous plan. Turning to slide 5, 2023 marked another year of outstanding accomplishments across our business, building on our compelling growth story as we move into '24. As I mentioned, we completed our portfolio repositioning and delivered multiple constructive regulatory outcomes, while maintaining our commitment to safety and customers. We executed five rate cases and I'm proud of the constructive results the team has delivered. We received orders approving $45 billion in historic and future rate base investments that will provide growth to customers for years to come. There was also a recognition of the rising cost of capital with improving ROEs and equity ratios. And in North Carolina, we implemented forward-looking multiyear rate plans for the first time ever. The performance-based regulations authorized by HB 951, provides certainty, predictability and value to customers and the company. This milestone was accomplished through years of work with policymaker’s, legislators and other stakeholders. Shifting to operations. Our teams performed well throughout the year, serving our customers in extreme weather conditions and restoring power following historic storms in Indiana and Florida. Providing safe reliable power in all seasons and circumstances remains our mission. In fact, in 2023, Duke Energy Florida had its best reliability performance in more than a decade, largely due to our significant storm protection plan investments. These investments also aided restoration efforts in Hurricane Adalia, saving outage minutes and speeding return to service. In the Carolinas, our nuclear fleet continues to generate safe, reliable carbon-free power, achieving a capacity factor of 96%, the 25th year in a row above 90%. And underpinning all of this in a hallmark of our commitment to operational excellence, 2023 marked our best safety performance in company history, as measured by a total incident case rate of 0.31. Safety is a core value at Duke Energy and I'm proud of our employees' commitment to event-free operations. Finally, the Piedmont team continues to excel in customer service. For the second year in a row, J.D. Power ranked Piedmont number one in residential customer satisfaction for natural gas services in the Southeast. And our Carolinas electric utilities continue to achieve strong results as well, remaining in the top quartile. Moving to Slide 6, we start the year entering the next phase of our energy transition, a period of execution and record infrastructure build to meet the evolving energy needs of our customers and communities. We're working with stakeholders to develop resource plans to support the phenomenal growth in our communities. In the Carolinas, demand is already outpacing the forecast used in our August resource plan filings and we filed supplemental portfolios in January. We're committed to meeting this growth with a diverse and increasingly clean energy mix that includes renewables, natural gas, next-generation nuclear and storage resources, as well as energy efficiency and demand response tools. We're also taking steps to build new generation in North Carolina, we'll file CPCNs for over two gigawatts of new natural gas generation in 2024. We'll continue to advance annual solar procurements targeting one gigawatt per year. And in Indiana we'll file CPCNs for new generation resources around midyear. These new facilities will add to our diverse mix of resources and are critical to meeting growing customer demand as we reliably exit coal by 2035. From a regulatory perspective, we've announced two rate cases in 2024 starting with DEC South Carolina in early January. Since the last case in 2018, we've invested more than $1.5 billion to improve reliability and resiliency and meet the growing energy needs of our more than 650,000 customers. And in Florida, we notified the commission of our intent to file a rate case in April. Similar to our current multiyear rate plan, which runs through 2024, this filing will cover three years of investments beginning in 2025. Our plan will add over 1000 megawatts of new solar and include over $3 billion of grid investments to serve population growth, increased reliability and reduced storm-related outages. Finally since our last rate cases at Duke Energy Indiana and Piedmont North Carolina, we've continued to make investments to strengthen our system and we're evaluating the timing of our next filings in these jurisdictions. In closing, I'll move to Slide 7, which depicts the transition of Duke Energy over the last many years to the premier regulated utility than it is today. The strategic and financial clarity provided by optimizing our portfolio over the last decade has simplified Duke Energy to a powerful, core regulated business operating in vibrant jurisdictions, growing through population migration and strong commercial and industrial economic development. Our growth potential is the highest it's been in decades and is reflected in our $73 billion capital plan. This plan is driven by grid investments to transform the largest T&D system in the US and IRP-related generation investments to support our growing jurisdictions and fleet transition. An efficient recovery mechanisms allow us to translate these investments into customer and investor value. In closing, we have positioned Duke for long-term value creation and our path forward is clear as we navigate the coming decade of record infrastructure build. This pivotal point in our history drives a differentiated low-risk, total return proposition going forward and I'm confident we will deliver. With that let me turn the call over to Brian.


Lynn Good: Abby. Thank you, and good morning, everyone. Today, we announced adjusted earnings per share of $1.20 for the first quarter. These results reflect a $0.22 headwind from weather with January and February ranking among the warmest winter months on record across our service territories. In fact, DEP had its warmest January and February in the last 32 years. In response, we've already taken action activating agility measures across the enterprise, which Brian will walk through with you in just a moment. With three quarters remaining, including our strongest quarters still ahead, we are reaffirming our 2023 guidance range of $5.55 to $5.75 with a midpoint of $5.65. We're also on track to deliver our long-term EPS growth rate of 5% to 7% through 2027 off the midpoint of the 2023 range. Before I turn to our regulated utilities, I would like to provide an update on the sale of our commercial renewables business. As you know, we have separate sales processes underway for the utility scale business and the distributed energy business. We are in the late stage of the process for both transactions and we'll look to update you in the near future. We continue to anticipate proceeds in the second half of the year. Moving to Slide 5, we're making meaningful progress in our strategic initiatives in each of our jurisdictions. In North Carolina, we recently reached a partial settlement with public staff [indiscernible], who represents DEP's industrial customers and the Duke Energy Progress rate case. With agreement on approximately $3.5 billion of forward-looking capital investments in the multi-year rate plan, the settlement represents a significant milestone on our journey to modernize recovery mechanisms in North Carolina. It positions us well to continue delivering value to customers, while supporting the cash flows of the company. The settlement also provides clarity on retail rate base of approximately $12.2 billion for the historic base case and depreciation rates that largely align with DEP's proposal. Further, we reached agreement on performance incentive metrics and residential decoupling. We were pleased to be able to work with public staff in [indiscernible] to narrow the open items in the case. These settlements are subject to approval by the North Carolina Utilities Commission. Evidentiary hearings began May 4 and are expected to conclude later this month. Interim rates will be implemented in June subject to refund, and we expect permanent rates to be effective October 1. The Duke Energy Carolina's rate case is about three months behind the DEP case and hearings scheduled to begin on August 21. Moving to South Carolina, the commission approved a comprehensive settlement in our Duke Energy progress rate case in February. Revised rates went into effect in April. We also recently received commission approval to securitize approximately $170 million of past storm costs at Duke Energy Progress. In Florida, the commission approved our fuel capacity and storm cost request in March. Rates were updated in April and reflect recovery of deferred fuel costs over 21 months with a debt return. We’ll recover storm costs associated with hurricanes Ian and Nicole, as well as replenish the storm reserve over 12 months. We also continue to expand our renewable fleet in the study and responsible manner, adding four solar projects in March and April, totalling 300 megawatts. With these additions, we now operate 1200 megawatts of solar in Florida with plans to continuing adding approximately 300 megawatts a year going forward. In Indiana, we've had an active legislative session. The legislature passed several energy bills, including House Bill 1421, which was signed into law and allows quip and rate base for natural gas generation. These bills support our ability to execute our energy transition in Indiana while maintaining reliable and affordable power for customers. We are in the process of finalizing CPCNs, which we expect to begin filing with the Indiana Commission later this quarter. In Ohio, we reached a comprehensive settlement with the PUCO staff and multiple other parties in our natural gas rate case. The settlement, which is subject to commission approval, includes agreement on expanded revenue caps for the Capital Expenditure Program Rider. An evidentiary hearing is scheduled to begin on May 23. And in Kentucky, the commission is conducting an evidentiary hearing today on the electric rate case filed in December. If approved, new rates are anticipated to go into effect in July. We are making great progress on our strategy across our entire service territory, meeting our commitments, and advancing investments in a balanced way to better serve our customers. Our strong track record is reflected in our impact report, Duke Energy's 17th Annual Disclosure on Sustainability Topics. This comprehensive report was published in April and includes our goals and progress on a broad range of topics, including the energy transition. It also outlines our corporate citizenship and the value we're creating for employees, customers, and communities from economic development to environmental justice and to rescaling and redeploying workers. Before I turn the call over to Brian, let me take a moment to talk about our grid investment plan, which is $36 billion accounts for over half of our five-year capital plan. The grid is a critical part of our energy transition and with more than 320,000 line miles. We operate the largest transmission and distribution system in the nation. The foundation of our grid plan is focused on improving reliability and resiliency, preparing the grid for renewables, and enabling electrification. Our reliability and resiliency investments are centered on strengthening the grid against storms and security trusts and improving the ability to rapidly restore power when there's an outage. We're making targeted investments across a variety of programs, including self-optimize growth technologies targeted undergrounding, physical and cybersecurity upgrades, and upgrading lines and substations. Our investments are already making a difference as evidenced by our response to Hurricane Ian last fall, where we restored power in less than half the time of our Hurricane Irma restoration efforts in 2017. As highlighted on the slide, we've made great progress in establishing constructive recovery mechanisms across our jurisdictions. These mechanisms will also assist in recovering growth investments in a timely manner, mitigating lag and supporting balance sheet strength while delivering benefits to our customers. From grid improvements to installing renewables to advancing policy, we're taking collective action to transform and ready the system for the future. We have a clear path forward and are confident our investment plan will deliver sustainable value and 5% to 7% earnings growth. With that, let me turn the call over to Brian.

adjusted earnings per share first quarter


Brian Savoy: Thanks, Lynn, and good morning, everyone. I'll start with quarterly results and highlight key variances to the prior year. As shown on Slide 7, our first quarter reported earnings per share were $1.01 and adjusted earnings per share were $1.20. This compares to reported and adjusted earnings per share of $1.08 and $1.29 last year. Adjusted results exclude the impact of commercial renewables, which is reflected in discontinued operations. Within the segments, Electric Utilities & Infrastructure was down $0.14 compared to last year. As Lynn mentioned, these results reflect extremely mild weather in January and February, which drove a $0.22 headwind compared to normal. This is the most significant weather impact we've seen in recent memory. In addition to weather, lower volumes and higher interest expenses were partially offset by lower O&M and growth from rate cases and riders. Rate case impacts in the quarter were primarily driven by our Florida utility. Consistent with our current settlement terms, in January, we had an annual step-up under the multiyear rate plan as well as the impact of a 25 basis point ROE increase as a result of rising interest rates. Moving to Gas Utilities & Infrastructure, results were $0.04 higher year-over-year, primarily due to growth from riders and customer additions. Before discussing retail volumes, I'd like to take a moment to talk about our 2023 cost mitigation efforts and full-year expectations. We're currently executing the $300 million in O&M reductions that we shared previously, which were incorporated into our base plan to address interest rate and inflation headwinds. As we've said, 75% of these savings are structural and will be sustainable into future years. In response to mild weather in Q1, we've already activated agility measures, leveraging our scope and scale to identify further savings opportunities. As we've done in the past, we're looking to tactical O&M efforts and other levers. These include deferring noncritical work, reducing spend on outside services and limiting nonessential travel and over time, among others. We will be thoughtful about these efforts, keeping our unwavering commitment to reliability and customer service at the forefront of our approach. Looking ahead, residential decoupling in North Carolina will be fully implemented by 2024. But until then, we will continue to flex the agility muscle that we have done so successfully in the past. Turning to volumes on Slide 8. As expected, on a rolling 12-month basis, load growth has moderated closer to pre-COVID trends. When comparing to 2022, it's important to note that we had a very robust first quarter last year, which saw nearly 6% growth. In addition, nearly all of the Q1 weakness this year was seen in January and February when weather was extreme. In these situations, it can be challenging to precisely estimate the weather component of total volume variances. In March and April, when weather was closer to normal, volume trends were more consistent with expectations, giving us confidence that the full-year 2023 load growth will be in the neighborhood of 0.5%. Continued strong customer growth in the residential class also supports confidence in our outlook. The population migration we've seen into our service territory remains as strong as ever. In the industrial class, we're seeing some weakness in the textile sector as well as an isolated plant closure by an electronics manufacturer in the Carolinas. Lingering supply chain impacts also continue to be a factor impacting usage. With that said, fundamental growth remains strong. Many of our larger industrial customers are expanding, and economic development in our service territories continues to be robust. For example, our recently released impact report highlighted our final economic development results for 2022. Over the year, we partnered with our states to attract over 29,000 new jobs and $23 billion in capital investments to our service territories. These new customers, which represent several key sectors such as battery, EVs and semiconductors, will provide meaningful load growth as operations ramp up. We’re proud of these accomplishments, which support the communities we serve and give us further confidence in the long-term economic outlook for our service territories. Moving on to financial activities on Slide 9. We had a productive first quarter completing around 60% of our planned 2023 issuances. We’ve also been opportunistic taking advantage of market dynamics, which made convertible notes an attractive option. In April, we issued $1.7 billion of these notes to reduce our commercial paper balance and lower interest expense. Importantly, we made good progress on fuel proceedings during the quarter as well. In Florida, we received approval for a full recovery of the 2022 deferred fuel balance with rates updated April 1. We also filed in February for a recovery of approximately $1 billion of deferred fuel in DEC North Carolina. We expect to receive an order in August and for rates to be implemented in September. Filings over the summer will round out the Carolinas addressing the remaining uncollected costs. In addition, we continue to expect proceeds from the sale of commercial renewables in the second half of this year, which will be used for debt avoidance at the holding company. Combined, we expect these two items fuel collections and the completed sale will positively impact FFO to debt by 50 basis points to 75 basis points by year end. I know the balance sheet is top of mind for investors, and credit is at the forefront of our planning as well. In fact, our efforts and commitment to the balance sheet were recently recognized by Moody’s. In April following their Annual Meeting, Moody’s reaffirmed our current credit ratings and stable outlook at the holding company. This is further evidence that we have the right plan in place and are taking appropriate steps to maintain our strong balance sheet as we advance our energy transition and execute our capital plan. Moving to Slide 12. We remain confident in delivering our 2023 earnings guidance range of $5.55 to $5.75 and growth of 5% to 7% through 2027. We operate in constructive growing jurisdictions and the fundamentals of our business are strong. Our progress on key initiatives in the first quarter positions us well to deliver on our commitments as we execute the priorities that are important to our customers, communities and shareholders. With that, we’ll open the line for your questions.


Lynn Good: Abby, thank you, and good morning, everyone. Today we announced adjusted earnings per share of $0.91 for the quarter. For the second quarter in a row mild weather impacted results. For perspective in the Carolinas January and February were the mildest in the last 30 years. And May and June were in the top five. Through June we're facing a weather headwind of nearly $0.30. Agility measures have been put in place which add to the $300 million O&M reduction that was targeted and in place coming into 2023. Our cost initiatives are grounded in our culture of safety and serving our customers with excellence while maintaining our assets for the future. Brian will provide more on cost management in a moment. We've had an early look at July and as you would expect July whether is positive consistent with the trend across the U.S. and August and September are in front of us. With our largest quarter ahead, we are reaffirming our guidance range for 2023 and we'll have more to say on projected results for the year on the third quarter call. As we look ahead, the fundamentals of our business are strong, and we are reaffirming our 5% to 7% growth rate. Turning to Slide five, you'll see highlights of the strategic portfolio repositioning we've executed over the last decade. With the announcement of the commercial renewable sale which we expect to close by the end of the year, we're a fully regulated company operating in constructive and growing jurisdictions with a wealth of clean energy investments driving growth for years to come. The regulatory constructs in our states have also meaningfully improved over this time, including landmark bipartisan energy legislation passed in North Carolina in 2021. Modern constructs like those in HB951 allow us to invest for the benefit of our customers, while preserving returns for our investors. We are pleased that today 90% of our electric utility investments are eligible for modern recovery mechanisms that mitigate regulatory lag. Our growth story is an organic one, with over 145 billion of clean energy grid and LDC investments over the next decade. With the portfolio repositioning complete our sole focus is on our regulated businesses, and the work we have underway to pursue the largest energy transition in our industry. Let me now turn to Slide six, to provide an update on our progress in each jurisdiction. In North Carolina, we continue to work toward resolution of the Duke Energy progress rate case. We implemented interim rates June 1, subject to refund, with rates for typical residential customers increasing about 5%. We expect the commission to issue an order later this month for the final DEP rates going into effect October 1. We're also preparing for the Duke Energy Carolinas hearing which is scheduled to begin August 28. Our energy transition in the Carolinas remains a top strategic priority and we're working diligently on updated resource plans to be filed with the Public Service Commission of South Carolina and the North Carolina Utilities Commission respectively in mid-August. Similar to previous filings, the plans are based on significant stakeholder engagement, and will outline multiple portfolios, each of which preserve affordability and reliability while transitioning to cleaner energy resources. IRA benefits will be incorporated into the analysis for the first time, as well as increasing load from numerous economic development announcements, and continued strong population migration into the Carolinas. Our modeling will also reflect higher reserve margins as a result of our continuous evaluation of resource adequacy. Later this year, we will begin the CPCN Process in North Carolina for replacement gas generation. At the same time, solar procurement will continue on an annual basis. In fact, our 2022 solar procurement was recently finalized, with nearly 1000 megawatts to be placed in service by 2027. And our 2023 Solar RFP targeting 1400 megawatts was recently approved by the NCUC, with bids to be received later this year. Following the resource plan filings, each commission will hear from interested parties through a transparent regulatory process as they consider our proposals. We expect an order from the South Carolina Commission in mid ‘24, and an order from the North Carolina Commission by the end of ‘24. Turning to Florida, we're executing us on our investment plan to benefit customers. We've added 300 megawatts of new solar this year and now operate 1200 megawatts in the state, with plans to continue adding about 300 megawatts per year over the next decade. We’re hardening the grid through our storm protection plan and already seeing benefits from improved reliability. With robust customer growth and timely recovery of investments, our Florida utility continues to deliver strong returns. In Kentucky we've partnered with Amazon to install a two megawatt solar plant on top of their fulfillment center in Northern Kentucky, the largest rooftop solar site in the state. This partnership supports the carbon reduction goals of both Duke Energy and Amazon. And it's just one example of how we're working with our customers to meet their energy needs. Turning to Indiana, I'd like to take a moment to thank the nearly 2000 crew members that work tirelessly over the July 4 Holiday following multiple storms. The widespread storm systems extended across our entire service territory, and led to a multi-day effort to restore over 370,000 outages. And in fact today in the Carolinas, our crews are also working to restore outages that resulted from the strong storms in the eastern seaboard and are doing so safely timely, and in close communication with our customers and stakeholders. As with all operations, the safety of our employee’s environment and communities remain front and center and I'm proud to say that for the eighth consecutive year, we've led the industry in safety as measured by total incident case rate. On the federal side, we're taking advantage of multiple incentives and other opportunities to benefit our customers. We're incorporating IRA tax benefits and resource plans and rate adjustments across our jurisdictions to lower costs for customers and federal funding from the infrastructure investment and Jobs Act creates opportunity to advance new resources and spur economic development. We have put forward multiple proposals through the IIJA, including for methane reduction, carbon capture long duration storage, hydrogen and grid modernization. And we'll continue to evaluate opportunities as funding is announced. We continue to advocate for federal and state support that recognizes the importance of a responsible energy transition. And in fact, later today, we will file comments on EPAs proposed 111 rule. While we support EPAs commitment to a cleaner energy future. We believe an orderly transition requires a diverse mix of energy resources, and must align with the pace of technology development. We will continue to actively work with policymakers, industry peers, state partners and others in support of a reliable affordable energy transition. In closing, we've navigated the first half of the year with agility taking swift action in the face of record mild weather while maintaining our focus on our strategic priorities. With our portfolio repositioning complete we offer an attractive fully regulated organic growth proposition. We have a clear strategy ahead of us as we invest to satisfy increasing demand for clean, affordable and reliable energy across our growing regions. Our long term fundamentals remain as strong as ever, and we're well positioned to deliver sustainable value and 5% to 7% earnings growth over the next five years. And with that, let me turn the call over to Brian.

adjusted earnings per share for the quarter


Brian Savoy: Thanks, Lynn, and good morning, everyone. I'll start with a discussion on quarterly results. As shown on Slide 8, our third quarter reported earnings per share were $1.59, and our adjusted earnings per share were $1.94. This compares to reported and adjusted earnings per share of $1.81 and $1.78 last year. Please see the non-GAAP reconciliation in today's materials for additional details. Within the operating segments, Electric Utilities and Infrastructure results were down $0.01 per share compared to last year. We experienced earnings growth from rate cases and riders, favorable weather and lower O&M from our cost mitigation initiatives, which I will discuss further in a moment. These positive items were offset by lower weather-normalized volumes, higher storm costs and higher interest expense. Shifting to Gas Utilities and Infrastructure, results were up $0.01 due to riders and customer growth. And within the Other segment, we were up $0.16 over the prior year, primarily due to a lower effective tax rate which reflects the ongoing tax efficiency efforts in the Company. We expect our full year 2023 effective tax rate to be at the low end of our 11% to 13% guidance range. As Lynn mentioned, we are tightening our full year 2023 guidance range to $5.55 to $5.65. We entered the year with one of the mildest winters on record. And although weather improved in the third quarter, we remain $0.20 below normal. We also continued to see weakness in volumes estimated at approximately $0.20 year-to-date, some of which may be attributable to weather, but also to a softening of industrial load and return to work for residential customers. To mitigate the impact, we have increased our 2023 agility target to $0.30, which includes tactical O&M savings a lower effective tax rate and other levers. As we look to the fourth quarter, we expect a strong finish to the year, targeting $1.50 to $1.60 per share. Our original plan was back-end loaded due to growth from rate cases and riders. We will also see the benefit of our ongoing cost management efforts. We are closely monitoring volume trends and have included fourth quarter drivers in the appendix. Turning to Slide 9. Let me discuss more specifics on volume trends. Volumes are down 1.2% on a rolling 12-month basis. Many of our industrial customers are acknowledging a near-term pullback, managing inventory levels and cost in a disciplined way due to uncertainty in the broader economy. Most are describing the pullback is temporary, and there is optimism about a turnaround in mid- to late 2024 and into 2025. We continue to see strong customer growth from population migration and robust economic development, giving us confidence in growth over the long term. Based on recent success in economic development efforts in key sectors such as battery, EVs, semiconductors and data centers, we see meaningful load growth over the next several years as outlined on Slide 9. For example, in 2024, we expect economic development projects coming online will add between 1,000 and 2,000 gigawatt hours. As we look further out, we have line of sight to 7,000 to 9,000 gigawatt hours by the end of 2027, giving us confidence in our 0.5 to 1% growth rate. Turning to Slide 10. Let me spend a few minutes on 2024. Consistent with historical practice, we will provide 2024 earnings guidance and our detailed capital and financing plans in our February update. Today, we have provided growth drivers for 2024. We've executed an active regulatory calendar this year that has yielded constructive outcomes as we head into next year. The multiyear rate plan in DEP will be in effect for a full year and we expect permanent rates under the DEC multiyear rate plan to be effective in January. In Florida, we will see the impact of the third year of our multiyear rate plan and growth from storm protection plan investments. In the Midwest, we'll see the impact of our Kentucky rate case and grid riders in Indiana and Ohio. In the gas segment, we will see robust growth from rate cases, integrity management investments and customer additions. From a load perspective, we project a pickup in 2024 from return to normal weather. Additionally, while we continue to closely monitor customer usage trends, we expect higher weather-normalized volumes driven by economic development activity and residential customer growth. Recall, residential decoupling will be in place in 2024 in North Carolina. So both DEC and DEP revenue growth will be based on customer increases, which have been robust. We expect interest rates to be higher for longer, resulting in increased financing cost in 2024. For O&M, we have aggressive efforts underway to sustain all cost savings identified in 2022 for 2023 as well as about half of the agility efforts we identified during the course of 2023 to mitigate weather and volumes. As we continue to pursue a technology-enabled, best-in-class cost structure, we expect our culture of continuous improvement to drive 2024 O&M to be lower than 2023 and significantly below our spending level in 2022. Moving to Slide 11. Let me highlight some of the credit supportive actions we've taken to maintain balance sheet strength. We continue to collect deferred fuel balances and have filed for recovery of all remaining uncollected 2022 fuel costs with about 90% approved and in rates. We're on pace to recover $1.7 billion of deferred fuel costs in 2023 and expect our deferred fuel balance to be back in line with our historical average by the end of 2024. As Lynn mentioned, we completed the sale of our commercial renewables business in October. With that, about $1.5 billion of commercial renewable debt will come off the balance sheet, further supporting our credit metrics. In August, as part of our ongoing DEC North Carolina rate case, we reached a settlement with public staff on the treatment of nuclear PTCs related to the Inflation Reduction Act. The settlement provides for the flowback of annual PTCs to customers over a four-year amortization period. If approved by the commission, this settlement would provide savings for customers and be supportive to our credit metrics. We intend to utilize the transferability provisions of the IRA and have engaged an external advisor to run a formal auction-style process, providing access to a broad range of qualified buyers. With these positive developments, we are targeting FFO to debt between 13% and 14% in 2023 and 14% in 2024 through 2027. Finally, as I mentioned, we will provide an update in February on our financing plan, along with a comprehensive refresh and roll forward of our five-year capital plan. We expect our capital plan to increase as we move further into the energy transition. We will take a balanced approach to funding the incremental capital, supporting our growth rate and balance sheet strength. As part of this balanced approach, we will evaluate modest funding through our dividend reinvestment plan and at the market program. The growth potential in our business is at a level we haven't seen in decades. For customers, we will achieve the right balance of affordability, reliability and increasing clean energy. And for investors, we will achieve growth while maintaining balance sheet strength. Moving to Slide 12, we're executing on our priorities and are excited about the path ahead as a fully regulated company. We operate in constructive growing jurisdictions, which combined with our $65 billion five-year capital plan, strong operations and cost efficiency capabilities give us confidence in our 5% to 7% growth rate through 2027. Our attractive dividend yield, coupled with long-term earnings growth from investments in our regulated utilities, provide a compelling risk-adjusted return for shareholders. With that, we'll open the line for your questions.

adjusted earnings per share third quarter


Abby Motsinger: Chair and CEO. Along with Harry Sideris, President, and Brian Savoy, CFO. Today's discussion will include the use of non-GAAP financial measures and forward-looking information. Actual results may differ from forward-looking statements due to factors disclosed in today's materials and in Duke Energy's SEC filings. The appendix of today's presentation includes supplemental information along with a reconciliation of non-GAAP financial measures. That, let me turn the call over to Lynn. Andy, thank you, and good morning, everyone. Today, we announced 2024 adjusted earnings per share of $5.90, finishing within our guidance range. 2024 was a year of great accomplishment, and in many ways, was defined by our response to hurricanes Helene and Milton. We were moved by our community's outpouring of support and appreciation for our work during these historic storms. We also announced updated guidance today, including a 2025 earnings per share range of $6.17 to $6.42, with a midpoint of $6.30. An $83 billion capital plan, which drives 7.7% earnings-based growth. This capital represents infrastructure spending driven by growing jurisdictions and underpinned by robust regulatory processes, such as integrated resource plans and approved grid investments. And finally, the continuation of our 5% to 7% EPS growth rate through 2029 with the potential to earn higher in the range as the years progress. Duke Energy enters the back part of this decade in a position of strength, and we're excited about the future. We're committed to delivering strong earnings and earnings growth and cash flows for our investors and superior service to our customers and communities. Before we get further into 2025 guidance, let me acknowledge our key achievements in 2024. Turning to slide five, we continued our track record of regulatory execution with the approval of $45 billion of rate-based investments. The regulatory work of the last two years minimizes rate case exposure in 2025 and 2026. We also advanced generation and transmission through our integrated resource plans and CPCN approvals. And we continue to add solar in Florida with 1,500 megawatts now in service. And finally, I'd like to acknowledge the Piedmont Natural Gas team. For the third consecutive year, the team earned the J.D. Power number one customer satisfaction ranking for natural gas service in the Southeast. And let me also just take a moment and acknowledge last month's announcement. Effective April 1, Harry will become CEO and President of Duke Energy, and Ted Craver will assume the role of independent chair of the board. Therefore, today will be my last earnings call prior to retirement. It's been an honor to lead this company, and I appreciate everyone who's been on the journey with me. To our employees, thank you for your commitment to our company and customers. To our shareholders, thank you for your investment in Duke Energy. The capital you provide powers our success and makes the work we do possible. And to the analysts who cover our company, you play a valuable role in the investment community, and I've appreciated your thoughtful research. And to Harry, thank you for being an incredible leader and adviser to me. As many of you know, Harry is a 29-year veteran of the company. Experience in nearly every facet of our business, Harry raised his hand for every challenging assignment and has led this company to great success, thanks to his commitment to our investors, our employees, and our customers. With Harry as CEO and a strong experienced leadership team around him, Duke Energy is well positioned to execute the next phase of our business strategy, and I'm confident in all that the company will achieve. So with that, I'd like to turn the call over to Harry.

guidance adjusted earnings per share 2024


Lynn Good: Abby, thank you, and good morning, everyone. Today, we announced first quarter adjusted earnings per share of $1.44, delivering a strong start to the year. These results are $0.24 above last year, driven by growth from rate activity across our jurisdictions, strengthening retail volumes and improved weather. We remain confident in our outlook and are reaffirming our 2024 guidance range of $5.85 to $6.10 and our long-term EPS growth rate of 5% to 7% through 2028. We have a clear path forward as a fully regulated utility operating in some of the most attractive and fastest-growing areas of the country. Our strategy will drive continued growth, underpinned by our 5-year $73 billion capital plan, efficient recovery mechanisms and track record of constructive regulatory outcomes. Moving to Slide 5. Our jurisdictions are experiencing unprecedented growth from population migration and economic development. We're committed to meeting these increasing customer demand through an all-of-the-above strategy that preserves affordability and reliability as we decarbonize. In doing so, 2024 marks an important stage in our fleet transition as we move from the planning phase to project execution. In Florida, we're on track to have 1,500 megawatts of utility-owned solar in service by year-end. And in our recently filed 10-year site plan, we expect to more than triple the amount of solar on our system by 2033. In the Carolinas, we're completing annual solar procurements that will add approximately 1,500 megawatts to the grid each year beginning in 2027. These investments are part of our goal to have 30,000 megawatts of regulated renewables on our system by 2035. In the Carolinas, we filed certificates of Public Convenience and Necessity in March to build more than 2 gigawatts of new, advanced class of natural gas generation. The filings with the NCUC include 2 simple-cycle combustion turbines and 1 combined cycle plant, consistent with the Carolinas resource plan. Pending regulatory approvals, construction is planned to start in 2026 with all units operational by the end of 2028. Each of these new facilities will be sited in existing coal plants and will provide needed dispatchable generation when those units retire. We recognize there's a lot of attention on natural gas in its role in achieving net zero. We believe natural gas must be a part of not just Duke's, but our nation's energy transition strategy in the face of unprecedented demand from AI data centers, chips manufacturers and other economic development, natural gas remains an essential tool to provide reliable and affordable energy for customers and complements our substantial investments in renewables and energy storage. As you know, EPA recently released rules that placed limits on certain baseload generation sources. While the state of this rule will soon be in the hands of the courts, we will continue to advocate for solutions to reliably and affordably serve the growing energy needs of our customers and communities. As we step into this period of significant infrastructure build for the company, we recently appointed Harry Sideris, President of Duke Energy. As President, Harry has responsibility for all of our electric and gas utilities, including all aspects of operations and regulatory activities. Harry is a 28-year company veteran and has an exceptional track record of accomplishment and leadership across many functions. He began his career in generation, led environmental health and safety, served as the President of our Florida utility and most recently led transmission, distribution and customer operations, including economic development. Harry is a trusted member of the executive leadership team and in his new role, he remains committed to delivering value to our customers and our investors. I'm pleased to introduce him for the first time on an earnings call and his new role as President. And with that, Harry, I'll turn it over to you to go through the jurisdictional highlights.

adjusted earnings per share first quarter


Lynn Good: Abby, thank you, and good morning, everyone. Before I begin, I'd like to take a moment and recognize the work of our team responding to Hurricane Debby. The storm made landfall in Florida yesterday morning and caused outages for about 330,000 customers. We had crews in position over the weekend, and our teams are working around the clock to restore power. As of this morning, we've restored 90% of our impacted customers. Based on its current track, we expect the storm to impact the Eastern and Central parts of the Carolinas later this week. Along with tropical storm forced winds, the system is bringing heavy rains. We're staging crews and implementing flood mitigation plans to be able to safely and quickly respond to expected customer outages. Now let me turn to our second quarter results and the significant progress we're making across the company. Our simplified fully regulated portfolio of Southeast and Midwestern utilities combined with our strong track record of constructive regulatory outcomes positions us well to deliver long-term value for shareholders. We have clear growth visibility driven by our $73 billion capital plan, which is focused on grid and generation investments to support the growing communities we serve. In a moment, Harry will provide an update on recent regulatory activity and operational highlights from across the business; and later in the call, Brian will walk through detailed financial results and our long-term sales outlook. But let me begin with the results for the quarter. Turning to Slide 5. Today, we announced adjusted earnings per share of $1.18, building on our strong start to the year. These results were $0.27 above last year, driven by growth across our electric utilities and improved weather. We continue to deliver consistent outcomes, carrying positive momentum into the back half of the year. We are reaffirming our 2024 guidance range of $5.85 to $6.10. We are also reaffirming our long-term EPS growth rate of 5% to 7% through 2028 based off of $5.98 midpoint for 2024. With that, I'd like to hand the call over to Harry.

adjusted earnings per share second quarter


Brian Savoy: Thanks, Harry, and good morning, everyone. Turning to Slide 8. We had a strong second quarter with reported and adjusted earnings per share of $1.13 and $1.18, respectively. This is up from adjusted earnings per share of $0.91 in the second quarter last year. Within the segments, Electric Utilities & Infrastructure was up $0.34. Growth was driven by rate increases in riders, higher sales volumes and warmer-than-normal weather across our service territories, which is a complete reversal of the extremely mild weather in the second quarter of 2023. Partially offsetting these items were higher interest expense and depreciation. Moving to Gas Utilities & Infrastructure. Results were down $0.02 compared to last year as favorable rider revenue was offset by higher interest expense and depreciation. And finally, the Other segment was down $0.05, primarily due to higher interest expense. Turning to Slide 9. I'd like to take a moment to discuss our earnings profile for the remainder of the year. As a reminder, last year had an atypical earnings shape with record mild weather in the first half of the year, which was mitigated with agility measures in the second half. With that in mind, the strong performance we've demonstrated so far this year is aligned with our planning assumptions. I'm incredibly proud for the team for delivering an impressive first half, and we are on track to achieve full year results within our guidance range. Turning to Slide 10. We were pleased to see weather normal volumes increased 1.9% versus last year, in line with our full year projection. Customer growth remains robust, led by the Carolinas and Florida, which grew 2.4% through the first half of the year. We're also encouraged to see improving residential usage across our jurisdictions. Commercial and industrial volumes were up over 1% versus last year, driven by strength in the commercial sector. Commercial sales volumes have exceeded our projections through the first half, offsetting a slower rebound in industrial sales. As economic development projects continue to come online throughout the second half of the year, we expect C&I load growth to accelerate. We operate in some of the most attractive jurisdictions for both the economic development and customer migration, which provide conviction in our 2% load growth forecast in 2024, and 1.5% to 2% load growth CAGR over the 5-year planning horizon. Turning to Slide 11. We are forecasting unprecedented growth in power demand from advanced manufacturing projects across multiple sectors as well as data centers. As we evaluate which economic development opportunities to include in our forecast. It's important to remember that we take a risk-adjusted approach. We utilize discrete project level analysis to evaluate and probability weight potential opportunities, resulting in a subset of projects being included in our current projections. We have a robust pipeline of projects that continue to progress and will be reflected in our plans when the projects mature. This pipeline provides a runway for growth well into the future. We are committed to serving this new load in a way that prioritizes reliability and affordability for all our customers. To that end, we recently executed MoUs with Google, Microsoft, Nucor and Amazon to explore tailored solutions to meet large-scale energy needs and develop rate structures to lower the long-term cost of investing in clean energy technologies. These voluntary programs, which are subject to commission approval, would be open to any large customer and would include protections for nonparticipating customers. We look forward to continued collaboration with all stakeholders as we work to meet the accelerating demand in our service territories. Turning to Slide 12. We recognize the importance of a strong balance sheet as we advance our strategic priorities and fund investments that will be foundational to our growth. We are on track to achieve 14% FFO to debt by the end of this year, which represents 100 basis points of cushion to our Moody's downgrade threshold. Our constructive regulatory outcomes, combined with the collection of remaining deferred fuel balances, monetization of tax credits and programmatic equity issuances, provide clear line of sight to achieving our target. As disclosed in February, we expect to issue $500 million of common equity annually over the 5-year plan via our DRIP and ATM programs. We've completed over half of our $500 million target, having priced $285 million year-to-date. We've also completed approximately 80% of our planned long-term debt issuances for 2024. As we've demonstrated over many years, our commitment to our current credit ratings and a strong balance sheet is unwavering and will continue to be a top priority as we execute our growth objectives. Moving to Slide 13. We remain confident in delivering our 2024 earnings guidance range of $5.85 to $6.10 and growth of 5% to 7% through 2028. We operate in constructive growing jurisdictions and the fundamentals of our business are stronger than ever. We are well positioned to achieve our growth targets, which, combined with our attractive dividend yield, provide a compelling risk-adjusted return for shareholders. With that, we'll open the line for your questions.

adjusted earnings per share second quarter last year


Lynn Good: Abby, thank you, and good morning, everyone. Before I get into the third quarter results, I wanted to take a moment and recognize the extraordinary hurricane season that we've responded to this year. We've had three consecutive hurricanes: Debby, Helene, and Milton, each of which devastated parts of our communities. And my heart goes out to all of those who are directly impacted by these catastrophic storms, especially those who lost loved ones, homes, or businesses. Harry will provide further details on our restoration efforts in a moment and Brian will share cost estimates and plans for cost recovery later in the call. But I want to first commend our employees and utility partners, many of whom were personally affected by the devastation, for their remarkable response. Our field teams rose to the challenge working around the clock to restore outages as safely and quickly as possible. And our customer care representatives, corporate responders, community relations managers and state President offices worked tirelessly to keep customers and policymakers informed. I'd also like to thank our state and local leaders, including Governor Cooper, Governor DeSantis and Governor McMaster and officials in our emergency operation centers for their partnership and coordination. I could not be more proud of our teammates and our partners for their unwavering commitment to our customers and communities. It's important to note that our regulators and policymakers recognize the extraordinary efforts of our company in responding to these events and the feedback we have received has been overwhelmingly positive. We recognize that our work is not done. It will take time for some of our communities to get back on their feet and we'll be with them every step of the way. Turning to quarterly results on Slide 5. Today, we announced adjusted earnings per share of $1.62 for the third quarter compared to $1.94 last year. Brian will discuss the results in more detail, but I wanted to highlight a few things influencing this comparison. As you know, 2023 was impacted by historically weak weather early in the year and mitigation in the second half of the year. Significant mitigation efforts positively impacted third-quarter 2023 results. Third quarter of 2024 includes the full impact of Hurricane Debby and the mobilization of resources for Hurricane Helene. Helene and Milton will impact the fourth quarter. And for both storms, we're working with preliminary cost estimates which we will finalize by year-end. Hurricane costs are largely deferred or capitalized. However, there are a few exceptions and there's no recovery mechanism for lost revenues. As a result and based on what we know today, we are reaffirming our 2024 guidance range, trending to the lower half. We are actively pursuing mitigation measures, some of which will naturally occur because of the resources devoted to the storms and others we will trigger through controlled spending through the balance of the year. And we will look for every opportunity without compromising on our commitment to safety and to our customers. As we look ahead to 2025 and beyond, we have strong momentum driven by our track record of constructive regulatory outcomes, including our recent IRP approvals in the Carolinas, as well as our robust growth in our attractive jurisdictions. These tailwinds give us confidence in our long-term outlook and we are reaffirming our 5% to 7% EPS growth rate through 2028, up the midpoint of our 2024 range. And with that, I'll hand the call over to Harry.

adjusted earnings per share third quarter 2024


electric utilities infrastructure up VAL

Electric Utilities & Infrastructure last year


Brian Savoy: Thanks, Lynn. And good morning, everyone. I'll start with quarterly results and highlight key variances to the prior year. As shown on Slide seven, we reported a second quarter loss of $0.32 per share, and adjusted earnings of $0.91 per share. This compares to reported and adjusted EPS of $1.14 and $1.09 last year. GAAP reported results include an impairment of approximately $1 billion related to the commercial renewable sale, which is reflected in discontinued operations. Announcing the sale agreements represents a key milestone, and I'm pleased with the progress we've made to-date on this important strategic move. Within the operating segments, electric utilities and infrastructure was down $0.14 compared to last year driven by $0.16 of unfavorable weather. Absent the weather, we saw growth from rate cases and riders and lower O&M partially offset by lower volumes and higher interest expense. Moving to gas utilities and infrastructure, results were up a $0.01 due to higher margins and customer growth. And within the other segment, we were $0.05 lower primarily due to higher interest expense partially offset by higher market returns on certain benefit plans. Turning to Slide eight. Cost management has become part of the Duke Energy DNA, and continues to produce sustainable savings. We're leveraging digital innovation, data analytics and process improvements to increase efficiency, making targeted capital investments to reduce maintenance costs and reshaping our operations to streamline work and lower costs. We've established a proven track record and in 2022, we're an industry leader across key O&M cost efficiency measures. Coming into 2023 we implemented a $300 million cost mitigation initiative to address interest rate and inflation headwinds. These reductions which were incorporated into our base plan are focused on corporate and support areas and remain on track. And as we said 75% of these savings are structural and will be sustainable in the future years. As Lynn mentioned, we've seen record mild weather in the first half of the year. We’ve taken action to offset these pressures, including launching significant business agility in the first quarter. We're looking to tactical O&M reductions and other levers, including deferring non-critical work, reducing spend on outside services, and limiting non-essential travel and overtime. We expect about $0.20 of mitigation from these measures weighted toward the fourth quarter. We will be thoughtful about these actions keeping our unwavering commitment to safety, reliability and customer service at the forefront of our approach. Looking ahead, residential decoupling in North Carolina will be fully implemented in 2024. But until then, we will continue to flex the agility muscle that we have done so successfully in the past. Turning to Slide nine, I'll touch on electric volumes and economic trends. Volumes are down 0.6% on a rolling 12-month basis. In the residential class, customer growth remained robust at 1.8% but was offset by lower usage per customer. We believe that this partially driven by energy efficiency and a growing trend of returning to the office. In addition, we continue to see most of the weakness in months when weather was extreme. In these situations, it can be challenging to precisely estimate the weather component of total volume variances. The long term residential growth trajectory remains strong. In fact, residential volumes have averaged just under 1% growth per year for the past five years, and are 4% above pre pandemic levels. In the commercial class, second quarter volumes are trending above our full year estimate, supported by continued growth in data centers. In the industrial class, planned investment in our territories continues to be robust. Many of our large customers are expanding, and we partnered with our states to attract over 29,000 new jobs and $23 billion in capital investment in 2022. These investments represent several key sectors such as battery, EVs and semiconductors, and we expect they will provide around 2000 megawatts of demand as operations ramp up. The strength of our service territories was also reflected in CNBCs annual list of America's top states for business, were five of the states we serve ranked in the top 15 and North Carolina ranked number one for the second year in a row. In the near term, we've seen a slight pullback in some of our manufacturing customers due to softening demand in certain sectors of the economy. We're monitoring the impact of macroeconomic trends but the underlying fundamentals, residential customer growth, and commercial and industrial investment continue to support long term growth at roughly 0.5% per year. Moving to slide 10, let me highlight some of the credit supportive actions we've taken to maintain balance sheet strength. We continue to collect deferred fuel balances and filed for recovery of all remaining uncollected 2022 fuel costs. In April, we began recovery of 1.2 billion in Florida over 21 months with a debt return. We also read settlement with the public staff in our DEC North Carolina fuel proceeding and expect to receive an order in the coming weeks. Per the agreement, we would recover approximately 1 billion of deferred fuel by the end of 2024. Across our jurisdictions, we're on pace to recover 1.7 of deferred fuel costs in 2023. And expect our deferred fuel balance to be back in line with our historical average by the end of 2024. As Lynn mentioned, we expect to complete the sale of our commercial renewables business by the end of the year, and will use proceeds for debt avoidance at the holding company. In addition, about $1.5 billion of commercial renewables debt will come off the balance sheet when the transactions close further supporting metrics. These actions are credit positive, and we expect to see continued balance sheet improvement into 2024 as we recover the remaining deferred fuel costs and see the full year impact of both North Carolina rate cases. Moving to slide 11. This year marks the 97th consecutive year of paying a quarterly cash dividend and the 17th consecutive annual increase. Looking forward we're executing on our strategic priorities and are excited about the path ahead as a fully regulated company. We operate in constructive growing jurisdictions, which combined with our $65 billion five-year capital plan give us confidence in our 5% to 7% growth rate through 2027. Our attractive dividend yield coupled with long term earnings growth from investments and our regulated utilities, provide a compelling risk adjusted return for shareholders. With that, we'll open the line for your questions.

electric utilities and infrastructure $0.14