Duke Energy Corporation (Holding Company) · NYSE:DUK

Duke Energy Corporation (Holding Company) — Morgan Stanley Conference 2003

14 slides from Duke Energy Corporation (Holding Company)'s conference presentation, March 2003

  1. Slide 1: Positioning for the Future

    Positioning for the Future Richard Priory Chairman and Chief Executive Officer March 2003

  2. Slide 2: Reduce Risks and Restructure for Future Success

    Reduce Risks and Restructure for Future Success Challenges Actions ƒ Focus on positive net cash flow Pace of economic recovery ƒ Invest in our strongest businesses ƒ Size our businesses to Demand/supply imbalance market realities ƒ Strengthen relationships with customers Regulatory uncertainty, ƒ Ad

  3. Slide 3: 2003 Earnings Guidance

    2003 Earnings Guidance ƒ Earnings expectations: $1.35 to $1.60 per share • Regulated businesses – Franchised Electric and Natural Gas Transmission – will contribute approximately 80% of EBIT, or $2.8 billion ƒ Reduced capital expenditures by more than half to $3.0 billion ƒ Financial plan fully supp

  4. Slide 4: 2003 Cash Flow Expectations

    2003 Cash Flow Expectations ($ Millions) Duke Energy Primary Sources: Consolidated Income $ 1,400 Depreciation & Amortization 1,900 NBV of Crescent inventory sales 500 NBV of other asset sales 600 Subtotal 4,400 Equity (DRIP, etc) 250 Total Sources $ 4,650 Primary Uses: Capital Expenditures (3,000 )

  5. Slide 5: Cash Flow Considerations

    Cash Flow Considerations Expected 2003 2004 2005 Cap Ex $3.0 billion $1.8 billion maintenance capex, lower discretionary capex Cash Flow Positive Continued improvement supported by regulated ops, capex and debt reduction Asset Sales $1.1 billion Ongoing Crescent inventory sales and non-core asset sa

  6. Slide 6: Improved Capitalization Structure from Mandatory Conversion of Equity Units

    Improved Capitalization Structure from Mandatory Conversion of Equity Units Duke Energy Consolidated ($ Millions) 12/31/2002 Adjusted (2) Debt (1) $ 20,840 51% $ 20,840 51% Equity Units 1,625 4% -- -- Total Debt $ 22,465 55% $ 20,840 51% Trust Preferred Securities 1,408 3% 1,408 3% Preferred Stock (

  7. Slide 7: Liquidity Position

    Liquidity Position Duke Duke (as of February 26, 2003) Energy Capital Other * Credit Facilities $950 million $1.9 billion $1.7 billion LOC Facilities n/a $1.0 billion n/a TOTAL CAPACITY $5.6 billion CP Outstanding $650 million $800 million $475 million LOC Outstanding n/a $800 million n/a Other Borr

  8. Slide 8: Regulated Operations: Franchised Electric and Natural Gas Transmission

    Regulated Operations: Franchised Electric and Natural Gas Transmission Franchised FranchisedElectric Electric Operations Operations BC No. Pipeline No.ofofCustomers Customers 2.2 2.2 MM MM Generating GeneratingCapacity Capacity 18,395 18,395MWMW PNG Distribution DistributionLines Lines 74,200 74,200

  9. Slide 9: Field Services

    Field Services Calgary Competitive Advantages •• Geographic Geographicdiversity, diversity, critical criticalmass mass •• GP GP//MLP MLPadvantage advantage 60,000 miles of pipelines Denver 71 plants; 15 fractionators •• Reliable, Reliable,efficient efficient Tulsa 5 offices low-cost low-costoperator

  10. Slide 10: Duke Energy North America

    Duke Energy North America Marketing: Gas Marketed 16.8 TBtu/d Power Marketed 546,245 GWh Power Generation: Operational 14,200 MW Active Construction 1,860 MW Gas Transportation: 4.5 Bcf/d Generating Plants Houston 2003 Plant Construction Gas Storage: Construction Deferred 50 Bcf Natural Gas Storage

  11. Slide 11: Duke Energy North America

    Duke Energy North America „ Un-hedged generation sales „ Optimization of generation portfolio „ Gas transportation EBIT Forecast and storage Other Sources $200 million of Gross Margin „ Proprietary trading $450 Million Fixed Costs Low-Risk Gross Margin $850 million „ Ancillary services $600 million

  12. Slide 12: International Energy

    International Energy Latin America Pipelines 125 miles Power 4,497 MW Asia Pacific Pipelines 2,201 miles Power 1,096 MW Europe Gas Trading and Marketing Power 103 MW Asset Positions Office Locations

  13. Slide 13: Why DUK?

    Why DUK? ƒ Diversified energy portfolio of assets ƒ Strong competitive position ƒ Long-term need for energy ƒ Management commitment and proactive approach ƒ Strong liquidity and balance sheet; commitment to positive cash flow ƒ Solid dividend return ƒ Current market value based on regulated operatio

  14. Slide 14: Slide 14

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