Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — AGA Financial Forum 2004
17 slides from Duke Energy Corporation (Holding Company)'s conference presentation, May 3, 2004
Slide 1: AGA Financial Forum
AGA Financial Forum Insert Photo Here May 3, 2004 Tom O’Connor, President Duke Energy Gas Transmission
Slide 2: Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Act of 1995 This document contains forward looking information which is subject to risks and uncertainties, including, but not limited to, changes in the utility regulatory environment, the impact of competition from other energy supplier
Slide 3: Duke Energy Gas Transmission System
Duke Energy Gas Transmission System BC Pipeline & Field Services Union Gas Service Area Maritimes & Northeast Algonquin Texas Storage Capacity more than 250 Bcf Eastern Miles of Transmission Pipe more than 17,500 System Compressor Horsepower 3,000,000 Miles of Distribution Main 21,000 East Miles of
Slide 4: DEGT Goal and Business Purpose
DEGT Goal and Business Purpose DEGT’s goal is to be the North American leader in providing safe, reliable and innovative gas transmission services for our customers and earnings growth and attractive returns for our shareholders. ● Our primary business is to provide natural gas transportation and st
Slide 5: Value Drivers
Value Drivers DEGT’s value proposition is to take a relatively undifferentiated product, “capacity”, and upgrade its value to customers through industry leading flexibility (supply access, storage and operations), reliability and customer service. ● Our assets access competitive supply sources and a
Slide 6: Natural Gas Market Overview
Natural Gas Market Overview Markets ● Modest residential / commercial growth ● Limited new gas-fired electric, but increased utilization Supply ● Continued tightness overall, prices remain historically high ● Production growth in BC, eastern Canada, Rockies ● New LNG after 2007 in Gulf of Mexico, NE
Slide 7: Near-Term Strategy
Near-Term Strategy Produce superior financial results through increased productivity and balanced growth • Provide superior customer service • Optimize existing asset portfolio • Capture efficiencies and control cost • Develop new high-return expansion projects 0404-0174.7
Slide 8: 2004 Portfolio of Businesses
2004 Portfolio of Businesses DEGT is a portfolio of pipelines, storage and distribution assets in different markets and supply basins supported by term contracts with creditworthy customers. 2004 EBIT Distribution Top 10 Customers Keyspan A Union Gas Duke Energy BBB M&NE BC Pipes & ExxonMobil AAA Fi
Slide 9: Union Gas: Regulated Distribution, Storage & Transportation
Union Gas: Regulated Distribution, Storage & Transportation • 1.3 million retail customers • More than 150 Bcf of gas storage TransCanada Pipeline Cumulative Distribution Customer CANADA Additions Since 1997 Lake Huron ONTARIO 160,000 Dawn Hub Great Storage Toronto Iroquois 120,000 Lakes Union Gas L
Slide 10: Build-Outs Completed In 2003
Build-Outs Completed In 2003 BC Pipeline & Field Services Fort Fort Nelson Nelson Fort Fort Nelson Nelson Plant Plant Mainline Mainline Union Gas T-South Kwoen Kwoen // Service Area T-South Grizzly Expansion Expansion Grizzly Maritimes M&NE Extension Union Algonquin Gas Beverly Added Added 850 850 M
Slide 11: Growth Opportunities
Growth Opportunities DEGT’s strategy and continued high-capacity utilization will produce solid EBIT growth of 3-5% per year. • Capital efficient expansions in existing markets • Optimization of existing systems • Organizational efficiencies and cost control 0404-0174.11
Slide 12: Top Ten Days
Top Ten Days The majority of DEGT’s highest throughput days occurred in the past year. TETLP Market Area ETNG 4,500 800 4,250 650 MDth/d MMDth/d 500 4,000 350 3,750 200 3,500 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Algonquin Union 1,750 4,600 1,500 4,400 MMDth/d MMcf/d 1,250 4,200 1,000 4,000 1 2
Slide 13: Northeast Expansion
Northeast Expansion Islander Domac Import Terminal Dominion East Domac Capacity 223 Mdth/d 285 Mdth/d 60 Mdth/d NY In–Service 2004 2005 2004 MA Ownership 100% 50% 100% PA 50 miles of RI 24-inch pipeline 10,000 Horsepower CT Pittsburgh OH of 34 miles eline pip 36-inch Philadelphia Texas Eastern NJ Al
Slide 14: Southeast Expansion
Southeast Expansion M1 M1 Expansion Expansion East In In Service: Service: 5/04 5/04 Tennessee Capacity: Capacity: 57 57 MDth/d MDth/d Texas Gulfstream Gulfstream Phase Phase IIII Eastern In In Service: Service: 12/04 12/04 Capacity: Capacity: 350 350 MDth/d MDth/d Gulfstream 0404-0174.14
Slide 15: BC Expansion
BC Expansion ALASKA Peace River Pine River Crossing Capacity 40 Mdth/d 100 Mdth/d YUKON In–Service 2005 2006 Ownership 100% 100% PEACE PEACE N.W.T RIVER RIVER CROSSING CROSSING ALBERTA FORT ST. JOHN PINE PINE RIVER RIVER BC BC Pipeline & Field Services VANCOUVER CALGARY Processing Plants 0404-0174.1
Slide 16: Storage Expansion
Storage Expansion Dawn Dawn Hub Hub Current Current Capacity Capacity 150 150 Bcf Bcf Maritimes Saltville Saltville Current Current Capacity Capacity 11 Bcf Bcf Algonquin Planned Planned Capacity Capacity 66 Bcf Bcf Ownership Ownership 50% 50% Texas Moss Moss Bluff Bluff Eastern Current Current Capa
Slide 17: Conclusion
Conclusion DEGT’s strategy will provide predictable growth with increasing cash flow. DEGT possesses: • Exceptional assets attached to high-value markets • Flexible supply access for choice and reliability • A portfolio that increases opportunities / reduces risk • High-return growth projects 0404-0