Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Q1 2009 Earnings Presentation
22 slides from Duke Energy Corporation (Holding Company)'s earnings presentation, May 5, 2009
Slide 1: First Quarter Earnings Review and Business Update
FIRST QUARTER EARNINGS REVIEW AND BUSINESS UPDATE May 5, 2009 Jim Rogers David Hauser Chairman, President and Chief Executive Officer Group Executive and Chief Financial Officer
Slide 2: Safe Harbor Statement; Reg G Disclosure
SAFE HARBOR STATEMENT Some of the statements in this document concerning future company performance will be forward-looking within the meanings of the securities laws. Actual results may materially differ from those discussed in these forward- looking statements, and you should refer to the addition
Slide 3: 1Q 2009 Earnings Summary
1Q 2009 EARNINGS SUMMARY 1Q09 1Q08 Reported Diluted EPS $ 0.27 $ 0.37 Adjustments to Reported: Mark-to-Market Impact of Economic Hedges (0.01) (0.03) Crescent Obligations 0.02 - Other Adjustments - 0.01 Discontinued Operations - - Adjusted Diluted EPS $ 0.28 $ 0.35 • After first quarter, on track to
Slide 4: U.S. Franchised Electric & Gas
U.S. FRANCHISED ELECTRIC & GAS Reported & Adjusted Segment EBIT ($ millions) 1Q09 1Q08 Reported Segment EBIT $ 557 $ 637 Adjustments - - Adjusted Segment EBIT $ 557 $ 637 HIGHLIGHTS • Adjusted segment EBIT decreased primarily due to • $39 million decrease due to increased storm costs • $37 million d
Slide 5: Retail Volumes by Customer Class
RETAIL VOLUMES BY CUSTOMER CLASS % Change in Weather Normalized Volumes – 1Q09 vs. 1Q08 Net Margin $ Change in Weather Normalized Volumes – 1Q09 vs. 1Q08 (In millions) 5% $20 0% $10 $0 -5% ($10) -10% ($20) -15% ($30) ($40) -20% ($50) -25% ($60) Carolinas Midwest Total Carolinas Midwest Total Residen
Slide 6: Commercial Power
COMMERCIAL POWER Reported & Adjusted Segment EBIT ($ millions) 1Q09 1Q08 Reported Segment EBIT $ 114 $ 146 Adjustments (11) (47) Adjusted Segment EBIT $ 103 $ 99 HIGHLIGHTS • Adjusted segment EBIT increased primarily due to • $20 million of increased native margins from the ESP plan • $13 million in
Slide 7: DEI
DEI Reported & Adjusted Segment EBIT ($ millions) 1Q09 1Q08 Reported Segment EBIT $ 93 $ 114 Adjustments - - Adjusted Segment EBIT $ 93 $ 114 HIGHLIGHTS • Adjusted segment EBIT decreased primarily due to • $28 million lower contribution from National Methanol • $20 million unfavorable foreign curren
Slide 8: Other
OTHER Reported & Adjusted Net Expense ($ millions) 1Q09 1Q08 Reported Net Expense $ 90 $ 76 Adjustments (40) (11) Adjusted Net Expense $ 50 $ 65 HIGHLIGHTS • Adjusted Net Expense decreased primarily due to reduced governance expenses • 2009 adjustments include • $33 million of charges related to Cre
Slide 9: Other Financial Items
OTHER FINANCIAL ITEMS • Interest expense, net of debt AFUDC and capitalized interest, for 1Q09 was $184 million as compared to $182 million for 1Q08 • Debt AFUDC and capitalized interest for 1Q09 was $13 million as compared to $18 million for 1Q08 • Equity AFUDC for 1Q09 was $28 million as compared
Slide 10: Credit and Liquidity
CREDIT AND LIQUIDITY • Total Available Liquidity at March 31, 2009 - approximately $2.2 billion(1) • Master Credit Facility(2) - available liquidity of approximately $1.5 billion • Approximately $750 million(1) of cash, cash equivalents and short-term investments at March 31, 2009 Duke Energy Commer
Slide 11: Capital Expenditures
CAPITAL EXPENDITURES Committed Capital 2009 2010-2013 Cumulative USFE&G Nuclear fuel $ 150 $ 1,250 $ 1,400 USFE&G Environmental 200 100 300 CP Environmental 50 125 175 Edwardsport IGCC 725 1,075 1,800 CC / CT Additions - Carolinas 200 1,000 1,200 Cliffside 550 650 1,200 Lee Nuclear 50 125 175 Intern
Slide 12: Operations Scorecard
OPERATIONS SCORECARD 1st Quarter 2009 Scorecard • Reliability 2009 • Minimize both the frequency and Safety Current Target Status duration of outages YTD Total Incident Case Rate (TICR) 1.05 1.15 - Employees 2009 Reliability Current Target Status • Generation fleet performance YTD – Nuclear Capacity
Slide 13: Regulatory Initiatives
REGULATORY INITIATIVES First Quarter Achievements State Activity OH Electric Distribution rate case settlement NC & SC Allen Scrubber and Catawba interest deferral approval IN Edwardsport cost increase approval Upcoming Calendar State Activity Docket Number Status IN Smart Grid • 43501 • Hearings sc
Slide 14: Construction Updates
CONSTRUCTION UPDATES Cliffside Target Milestones Edwardsport Target Milestones Unit-5 Backfeed Power January 2010 Deliver Radiant Syngas Cooler December 2009 Unit-5 FGD In Service September 2010 Switchyard Available for Backfeed April 2010 Unit-6 Backfeed Power November 2010 Gasification Island – Tu
Slide 15: Wind Business Update
WIND BUSINESS UPDATE Wind projects currently under construction Wind assets in operation Location of wind development pipeline Wind Overview • Over 500 MW currently in operation Campbell Hill • Approximately 5,000 MW of potential Happy Jack development in 14 states Silver Sage • Potential annual gro
Slide 16: Value Proposition
VALUE PROPOSITION Annual Total Return Profile • Proactive regulatory strategy 15% • Forecast 5% to 7% CAGR in 10% adjusted diluted EPS through 2013 • Annual dividend growth 5% • Strong balance sheet provides flexibility 0% EPS Growth Dividend TSR Yield * * Based on current dividend yield of approxim
Slide 17: First Quarter Earnings Review and Business Update
FIRST QUARTER EARNINGS REVIEW AND BUSINESS UPDATE 17
Slide 18: Non-GAAP Reconciliations
Duke Energy Corporation Non-GAAP Reconciliations First Quarter Earnings Review and Business Update May 5, 2009 Adjusted Diluted Earnings per Share (“EPS”) The materials for Duke Energy Corporation’s (“Duke Energy”) First Quarter Earnings Review and Business Update presentation on May 5, 2009 include
Slide 19: Non-GAAP Reconciliations (continued)
hedging of a portion of the economic value of certain of its generation assets in the Commercial Power segment (as discussed above under “Adjusted Diluted Earnings per Share (‘EPS’)”). The most directly comparable GAAP measure for adjusted diluted EPS is reported diluted EPS from continuing operatio
Slide 20: Adjusted to Reported Earnings Reconciliation, March 2008 YTD
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION March 2008 Year-to-Date (Dollars in millions, except per-share amounts) Special Items (Note 1) Economic Hedges Adjusted Costs to Achieve, (Mark-to- Discontinued Total Reported Earnings Cinergy Merger Market) * Operations Adjustment
Slide 21: Adjusted to Reported Earnings Reconciliation, March 2009 YTD
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION March 2009 Year-to-Date (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Achieve, Crescent Economic Adjusted Cinergy Related Hedges (Mark- Discontinued Total Reported Earnings Merger Guarantees to-Mar
Slide 22: Available Liquidity Reconciliation
Duke Energy Corporation Available Liquidity Reconciliation As of March 31, 2009 (In millions) Cash and Cash Equivalents $1,201 Short-Term Investments 51 Subtotal 1,252 Less: Amounts Held in Foreign Jurisdictions (492) $760 Plus: Remaining Availability under Master Credit Facility 1,457 Total Availab