Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Q3 2008 Earnings Presentation
20 slides from Duke Energy Corporation (Holding Company)'s earnings presentation, Nov 5, 2008
Slide 1: Third Quarter Earnings Review and Business Update
THIRD QUARTER EARNINGS REVIEW AND BUSINESS UPDATE November 5, 2008 Jim Rogers Chairman, President and Chief Executive Officer David Hauser 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: 3Q 2008 Earnings Summary
3Q 2008 EARNINGS SUMMARY 3Q08 3Q07 Reported Diluted EPS $ 0.17 $ 0.48 Adjustments to Reported: Mark-to-Market Impact of Economic Hedges 0.06 - Crescent Project Impairments 0.05 - Emission Allowance Impairment 0.04 - Other Adjustments 0.01 - Discontinued Operations - (0.03) Adjusted Diluted EPS $ 0.3
Slide 4: U.S. Franchised Electric & Gas
U.S. FRANCHISED ELECTRIC & GAS Reported & Adjusted Segment EBIT ($ millions) 3Q08 3Q07 Reported Segment EBIT $ 726 $ 760 Adjustments - - Adjusted Segment EBIT $ 726 $ 760 HIGHLIGHTS • Adjusted segment EBIT decreased primarily due to • $163 million unfavorable weather-related impacts • Milder weather
Slide 5: Commercial Power
COMMERCIAL POWER Reported & Adjusted Segment EBIT ($ millions) 3Q08 3Q07 Reported Segment EBIT $ (108) $ 163 Adjustments 201 (4) Adjusted Segment EBIT $ 93 $ 159 HIGHLIGHTS • Adjusted segment EBIT decreased primarily due to • $69 million impact of timing of recovery of fuel and purchased power costs
Slide 6: DEI
DEI Reported & Adjusted Segment EBIT ($ millions) 3Q08 3Q07 Reported Segment EBIT $ 77 $ 92 Adjustments - - Adjusted Segment EBIT $ 77 $ 92 HIGHLIGHTS • Adjusted segment EBIT decreased primarily due to • Unfavorable results in Peru and Central America due primarily to unfavorable hydrology and lower
Slide 7: Crescent and Other
CRESCENT Reported & Adjusted Segment EBIT ($ millions) 3Q08 3Q07 Reported Segment EBIT $ (124) $ 10 Adjustments 114 - Adjusted Segment EBIT $ (10) $ 10 • Adjusted segment EBIT results decreased primarily due to the continued downturn in residential and commercial real estate • Adjustments reflect no
Slide 8: Credit and Liquidity
CREDIT AND LIQUIDITY • Total Available Liquidity at September 30, 2008 - approximately $2.2 billion(1) • Master Credit Facility - $3.2 billion at September 30, 2008 • Draw-down of Credit Facility of $1 billion to provide financial flexibility in current markets • At September 30, 2008 Lehman partici
Slide 9: Regulatory Update – Ohio ESP
REGULATORY UPDATE – OHIO ESP • Proposed settlement reached in October 2008 (subject to PUCO approval) • Term of plan: 2009-2011 • Rates effective 1/1/2009 • Overall annual average increase in customer rates • 2009 and 2010 – 2%; 2011 – 1.2% Ohio • Settlement structured to minimize customer increase
Slide 10: Regulatory Update – Save A Watt
REGULATORY UPDATE – SAVE A WATT • Change in paradigm for utility business model • Places energy efficiency on par with new generation Key Attributes • Retains characteristics of regulatory model based on a percentage of the Company’s avoided cost of new generation • Pay for performance – the Company
Slide 11: Third Quarter Earnings Review and Business Update
THIRD QUARTER EARNINGS REVIEW AND BUSINESS UPDATE
Slide 12: Non-GAAP Reconciliations
Duke Energy Corporation Non-GAAP Reconciliations Third Quarter Earnings Review and Business Update November 5, 2008 Adjusted Diluted Earnings per Share (“EPS”) The materials for Duke Energy Corporation’s (“Duke Energy”) Third Quarter Earnings Review and Business Update presentation on November 5, 20
Slide 13: 2008 Employee EPS Incentive Target Measure
2008 Employee EPS Incentive Target Measure The materials for Duke Energy’s Third Quarter Earnings Review and Business Update presentation on November 5, 2008 include a reference to Duke Energy’s 2008 employee EPS incentive target of $1.27, with incentive payouts occurring if results fall within a ra
Slide 14: Adjusted to Reported Earnings Reconciliation, September 2007 Quarter-to-Date
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION September 2007 Quarter-to-Date (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Economic Achieve, Settlement Hedges Adjusted Cinergy Reserve (Mark-to- Discontinued Total Reported Earnings Merger Adjus
Slide 15: Adjusted to Reported Earnings Reconciliation, September 2007 Year-to-Date
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION September 2007 Year-to-Date (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Economic Convertible Achieve, IT Settlement Hedges Adjusted Debt Costs, Cinergy Severance Reserve (Mark-to- Discontinued To
Slide 16: Adjusted to Reported Earnings Reconciliation, September 2008 Quarter-to-Date
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION September 2008 Quarter-to-Date (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Achieve, Crescent Emission Economic Adjusted Cinergy Project Allowances Hedges (Mark- Discontinued Total Reported Earnin
Slide 17: Adjusted to Reported Earnings Reconciliation, September 2008 Year-to-Date
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION September 2008 Year-to-Date (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Achieve, Crescent Emission Economic Adjusted Cinergy Project Allowances Hedges (Mark- Discontinued Total Reported Earnings
Slide 18: Diluted EPS Impact from Milder Weather and September 2008 Midwest Storm
Duke Energy Corporation Diluted EPS Impact from Milder Weather and September 2008 Midwest Storm Third Quarter of 2008 versus Third Quarter of 2007 Pre-Tax Tax Rate Net USFE&G - Impact of Milder Weather in 2008 on Non-Fuel Revenues $ (111) 39% $ (68) USFE&G - September 2008 Storm Restoration Costs in
Slide 19: Available Liquidity Reconciliation
Available Liquidity Reconciliation As of September 30, 2008 (In millions) Cash and Cash Equivalents $1,876 Short-Term Investments 180 Subtotal 2,056 Less: Amounts Held in Foreign Jurisdictions (456) $1,600 Plus: Remaining Availability under Master Credit Facility (a) 623 Total Available Liquidity as
Slide 20: Crescent Equity Earnings - Actual vs Plan
Duke Energy Corporation Crescent Equity Earnings - Actual vs Plan September 30, 2008 (In millions) Adjusted equity loss for the 9 months ended September 30, 2008 ($16) (a) (b) Initial forecast of equity earnings for 2008 75 (b) Total pre-tax impact to equity method earnings versus original forecast