Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Merger or Acquisition (September 2001)
19 slides from Duke Energy Corporation (Holding Company)'s merger presentation, Sep 21, 2001
Slide 1: Analyst Meeting
we generate what’s next Analyst Meeting September 21, 2001 New York, NY
Slide 2: Duke Energy: Richard Priory
DukeEnergy Duke Energy Richard Priory Chairman, President & Chief Executive Officer we generate what’s next
Slide 3: Why Westcoast Energy?
WhyWestcoast Why WestcoastEnergy? Energy? ! A major step in Duke Energy’s growth and evolution ! Westcoast Energy, an industry leader in North America ! A company we respect and know well ! Combining to realize growth potential ! Advances Duke Energy’s corporate strategies and financial goals we gen
Slide 4: Westcoast Energy: Michael E. J. Phelps
Westcoast Energy Westcoast Energy Michael E. J. Phelps Chairman & Chief Executive Officer we generate what’s next
Slide 5: A Good Deal
AAGood GoodDeal Deal ! Excellent operational and strategic fit ! Ability to roll into Duke shares, allows Westcoast shareholders to participate in a combined entity with considerable upside & opportunity we generate what’s next 0109-0367
Slide 6: Westcoast Brings Opportunities
WestcoastBrings Westcoast BringsOpportunities Opportunities ! Growing North American gas demand ! Increasing need for supply from Canada ! Westcoast uniquely positioned to access Canadian & northern supply: ■ Maritimes & Northeast Pipeline ▲ Scotian Shelf gas to Northeast USA and Atlantic Canada ■ W
Slide 7: Westcoast Brings Other Strengths
WestcoastBrings Westcoast BringsOther Other Strengths Strengths ! Union Gas, a large & growing gas distribution, storage & transmission business: ■ 1.1 million customers in southern Ontario ■ 141 Bcf of storage ■ Throughput of 1,263 Bcf in 2000 ! Engage Energy ■ An established, successful marketing
Slide 8: Duke Energy: Fred Fowler, Energy Transmission
DukeEnergy Duke Energy Fred Fowler Group President Energy Transmission we generate what’s next
Slide 9: Transaction Terms
TransactionTerms Transaction Terms ! Westcoast equity valuation of $3.5 billion ! 50% stock/50% cash consideration (subject to pro-ration) ! C$43.80 ■ Cash: Value fixed at C$43.80 per share ■ Stock: C$43.80 within a collar of Duke stock prices of $36.88 to $46.48 ! Collar exchange ratio is .7711 to
Slide 10: Strategic Drivers
Strategic Drivers Strategic Drivers ! Importance of incremental Canadian natural gas supply to North America ! Increasing importance of gas storage for winter and summer peaking ! Desire to connect diverse new supply to growth markets we generate what’s next 0109-0367
Slide 11: Current Duke Energy Transmission System
CurrentDuke Current DukeEnergy Energy EnergyTransmission Energy TransmissionSystem System ALASKA Maritimes AGT Texas Eastern Duke Energy East Field Services Tenn. we generate what’s next Gulfstream 0109-0367
Slide 12: Combined Energy Transmission System
DukeEnergy Duke Energy CombinedEnergy Combined EnergyTransmission TransmissionSystem System ALASKA Pacific Pacific Northern Northern Westcoast Westcoast Energy Energy Pipeline Pipeline Centra Centra Gas Gas Foothills Foothills Alliance Empire Empire Maritimes Union Union Gas Gas Vector Vector AGT Te
Slide 13: Operational Statistics
Operational Statistics Operational Statistics Duke Westcoast Combined (1) ! Miles of Gas Transmission Pipeline 12,000 6,900 18,900 ! Transmission Capacity (Bcf/d) 8.4 5.0 13.4 ! Bcf’s of Storage 100 141 241 ! Gas Processing Capacity (Bcf/d) 7.9 2.5 10.4 (1) Calculated as Westcoast share of all its p
Slide 14: Combined Energy Transmission System: Incremental Supply Growth
CombinedEnergy Combined EnergyTransmission TransmissionSystem System IncrementalSupply Incremental SupplyGrowth Growth Alaska-North Alaska-North Slope Slope Mackenzie Mackenzie Delta Delta ALASKA Yukon/NW Yukon/NW Territory Territory Pacific Pacific Northern Northern Westcoast Westcoast Newfoundland
Slide 15: Combined Energy Transmission System: Major Growth Markets
Combined Combined EnergyTransmission Energy CombinedTransmission Combined Transmission Transmission System System System System Major Major Major Major Growth Growth Growth Growth Markets Markets Markets Markets ALASKA Pacific Pacific Northern Northern Westcoast Westcoast Energy Energy Pipeline Pipe
Slide 16: EBIT Contribution of Competitive Energy Businesses Will Increase
EBITContribution EBIT ContributionofofCompetitive CompetitiveEnergy Energy BusinessesWill Businesses WillIncrease Increase Westcoast Pro Forma - $4.4 Billion $0.6 Billion Duke 13% Energy 73% Services 14% Gas Pipelines Duke & Storage Power Field Services 30% Energy Services 39% Franchised Duke Energy
Slide 17: Financial Benefits
FinancialBenefits Financial Benefits ! Immediately accretive to EPS ! Balances business risk profile and sustainability of earnings ! Supports targeted EPS growth rate ! Maintains strong balance sheet and financial flexibility we generate what’s next 0109-0367
Slide 18: Strategic Benefits
Strategic Benefits Strategic Benefits ! Extends North American integrated network of energy businesses ! Greatly increases the portfolio of growth opportunities ! Connects key supply sources and markets ! Adds storage and transportation assets at a growing, Eastern supply hub ! Increases percentage
Slide 19: we generate what’s next
we generate what’s next