Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Q3 2001 Earnings Presentation
13 slides from Duke Energy Corporation (Holding Company)'s earnings presentation, Oct 18, 2001
Slide 1: Welcome
we generate what’s nextsm Welcome Sue Becht Senior Vice President Investor Relations
Slide 2: Third Quarter 2001 Analyst Meeting
we generate what’s nextsm Third Quarter 2001 Analyst Meeting Robert Brace Executive Vice President and Chief Financial Officer
Slide 3: Earnings per Share
Earnings per Share $1.20 $1.20 $1.02 ● ● Ongoing earnings per share for the quarter increased 46% ◆ EPS for 2000 excludes the ◆ $0.80 $0.80 $0.70* $0.34 gain on sale of DukeNet’s interest in the BellSouth PCS business $0.40 $0.40 ● ● Ongoing earnings per share for the year to date increased 41%, fro
Slide 4: Earnings Before Interest and Taxes - Quarter
Earnings Before Interest and Taxes - Quarter EBIT ($ millions) $1,507 $1,500 $1,500 ● ● Ongoing segment EBIT increased more than 36% $1,104* for the quarter $1,000 $1,000 ● ● Competitive energy businesses contributed 59% of $500 $500 total segment EBIT ● ● Energy Services alone contributed 44% of $0
Slide 5: Earnings Before Interest and Taxes - YTD
Earnings Before Interest and Taxes - YTD EBIT ($ millions) $4,000 $3,538 ● ● Ongoing segment EBIT increased 33% for the year to date $3,000 $2,663* ● ● Competitive energy businesses $2,000 contributed 61% of total segment EBIT $1,000 ● ● Energy Services alone contributed 40% of total $0 segment EBIT
Slide 6: The Business Model: It's All About Balance
The Business Model: It’s All About Balance ● ● Balance between ● ● Decision-making ◆ Assets/trading ◆ ◆ Market signals ◆ T&M ◆ Location ◆ ◆ Market structure ◆ ◆ Commodity ◆ Hard ◆ Regulatory climate ◆ Assets ◆ Risks/returns ◆ ◆ Core competencies ◆ Asset Trading Based Based Optimization Zone Total Re
Slide 7: Looking Ahead
Looking Ahead ● ● Duke Energy’s strategy remains on target to deliver long-term growth and earnings sustainability ◆ Portfolio management approach ◆ ◆ Risk management focus ◆ ● ● Energy demand growth requires additional infrastructure for both gas and power supplies ◆ Westcoast acquisition strengthe
Slide 8: Connecting Major Gas Supplies to Growth Markets
Connecting Major Gas Supplies to Growth Markets Duke Energy / Westcoast Energy ALASKA Combined Gas Transmission System Strategic Benefits Westcoast Energy Pipeline Extends Extends North North American American Pacific Pacific integrated integrated network network of of energy energy Northern Norther
Slide 9: Targeting Markets for Highest Returns
Targeting Markets for Highest Returns North American Wholesale Energy Head Office Regional Offices Operating Facilities In Service in 2002 In Service in 2003
Slide 10: Year-to-date Economic Drivers Mostly Above Historic Averages
Year-to-date Economic Drivers Mostly Above Historic Averages EBIT Source Economic Drivers Value Low High Gas Markets Prices ($/MMBTU) 1.62 10.53 ● Trading ● Henry Hub 1 & Marketing Volatility (%) 22 % 143 % ● Basis TET M3 0.15 3.97 Differentials to TET ELA -0.27 0.03 Henry Hub 2 ($/MMBTU) NW Canadia
Slide 11: Up Close: Entergy Spark Spread
Up Close: Entergy Spark Spread Economic Drivers Value ● Spark spread -16 1795 ($/MWhr) 1 ● Volatility of Spark spread 268 % 3014 % YTD average Historic mean low high 5th %tile 95th %tile 1 Daily data, from Jan. 4, ‘99-Sept. 28, ‘01
Slide 12: What Differentiates Duke Energy?
What Differentiates Duke Energy? ● ● Disciplined business strategy ● ● Diversified portfolio of energy assets and positions ◆ Geographic location ◆ ◆ Multiple commodities ◆ ● ● Risk management skills and expertise ● ● Strong track record of delivering long-term earnings growth and sustainability
Slide 13: we generate what’s next sm
we generate what’s nextsm