Duke Energy Corporation (holding Company) · NYSE:DUK
Duke Energy Corporation (holding Company) — Q3 2009 Earnings Presentation
26 slides from Duke Energy Corporation (holding Company)'s earnings presentation, Oct 30, 2009
Slide 1: Third Quarter Earnings Review and Business Update
THIRD QUARTER EARNINGS REVIEW AND BUSINESS UPDATE October 30, 2009 Jim Rogers Lynn Good Chairman, President and Chief Executive Officer Group Executive and Chief Financial Officer
Slide 2: Safe Harbor Statement and 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 2009 Earnings Summary
3Q 2009 EARNINGS SUMMARY 3Q09 3Q08 Reported Diluted EPS $ 0.08 $ 0.17 Adjustments to Reported: Goodwill and Other Impairments 0.31 - Mark-to-Market Impact of Economic Hedges - 0.06 Crescent Adjustments - 0.05 Other Adjustments 0.01 0.05 Adjusted Diluted EPS $ 0.40 $ 0.33 • Increase in adjusted dilut
Slide 4: U.S. Franchised Electric & Gas (USFE&G)
U.S. FRANCHISED ELECTRIC & GAS (USFE&G) Reported & Adjusted Segment EBIT ($ millions) 3Q09 3Q08 Reported Segment EBIT $ 716 $ 726 Adjustments - - Adjusted Segment EBIT $ 716 $ 726 HIGHLIGHTS • Adjusted segment EBIT decreased primarily due to • $46 million due to unfavorable weather • $27 million fro
Slide 5: 3Q09 Industrial Volumes – Signs of Rebound?
3Q09 INDUSTRIAL VOLUMES – SIGNS OF REBOUND? Textiles Q1 Q2 Q3 Q4 (Billed GwH) Primary Metals (Billed GwH) 1,500 1,500 1,000 1,000 500 500 0 0 2007 2008 2009 2007 2008 2009 (Billed GwH) Chemicals (Billed GwH) Total Industrial 1,250 12,000 1,000 9,000 750 6,000 500 3,000 250 0 0 2007 2008 2009 2007 20
Slide 6: Total Volumes Still Down but Residential Holding
TOTAL VOLUMES STILL DOWN BUT RESIDENTIAL HOLDING % Change in Weather Normalized Volumes – 3Q09 vs. 3Q08 Net Margin $ Change in Weather Normalized Volumes – 3Q09 vs. 3Q08 (In millions) 5% $20 0% $10 $0 -5% ($10) ($20) -10% ($30) ($40) -15% Carolinas Midwest Total Carolinas Midwest Total Residential C
Slide 7: Commercial Power
COMMERCIAL POWER Reported & Adjusted Segment EBIT ($ millions) 3Q09 3Q08 Reported Segment EBIT $ (234) $ (108) Adjustments 416 201 Adjusted Segment EBIT $ 182 $ 93 HIGHLIGHTS • Adjusted segment EBIT increased primarily due to • $29 million of improved results from the Midwest gas assets due to highe
Slide 8: Ohio – Two-Thirds of Switched Volumes Retained
OHIO – TWO-THIRDS OF SWITCHED VOLUMES RETAINED ►Competitive Environment Low wholesale power market prices continue Customer switching Duke Energy Retail Sales (DERS) has experienced success in retaining DE Ohio customers Approximately 10 percent of retail load has switched as of September 30
Slide 9: DEI
DEI Reported & Adjusted Segment EBIT ($ millions) 3Q09 3Q08 Reported Segment EBIT $ 100 $ 77 Adjustments - - Adjusted Segment EBIT $ 100 $ 77 HIGHLIGHTS • Adjusted segment EBIT increased primarily due to • $35 million due to lower commodity costs and improved operations in Peru • $22 million due to
Slide 10: Other
OTHER Reported & Adjusted Net Expense ($ millions) 3Q09 3Q08 Reported Net Expense $ 65 $ 195 Adjustments (8) (125) Adjusted Net Expense $ 57 $ 70 HIGHLIGHTS • Adjusted Net Expense decreased primarily due to prior year equity losses at Crescent of $10 million • Adjustments include costs-to-achieve an
Slide 11: North Carolina Rate Case
NORTH CAROLINA RATE CASE North Carolina Settlement Upcoming Dates • $315 million increase in base rates • Jan 3rd Duke can implement interim rates (subject • Riders reduce impact to customers in first 2 years to refund) • Allowed ROE of 10.7% and equity of 52.5% • April 3rd – Statutory deadline for
Slide 12: South Carolina Rate Case
SOUTH CAROLINA RATE CASE Requested amount Base Rate Increase Requested $128 million(1) Return on Equity 12.3% / 11.5% Equity Component 53% (1) The requested SC increase excludes the return of the DSM funds which makes the net increase approximately $100 million. Upcoming Dates November 2nd Office of
Slide 13: Cliffside and Edwardsport Construction
CLIFFSIDE AND EDWARDSPORT CONSTRUCTION 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 Gasifi
Slide 14: Snapshot Summary – Q3 2009
SNAPSHOT SUMMARY – Q3 2009 ►On track to achieve 2009 employee incentive target of $1.20, based on adjusted diluted EPS Total Shareholder Return Comparison • Assumes normal weather, continued cost control and strong For Periods Ending September 30, 2009 operational performance, as well as no deterior
Slide 15: Appendix
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Slide 16: Credit and Liquidity
CREDIT AND LIQUIDITY • Total Available Liquidity at September 30, 2009 - approximately $2.6 billion(1) • Master Credit Facility(2) - available liquidity of approximately $1.6 billion • Approximately $1 billion(1) of cash, cash equivalents and short-term investments at September 30, 2009 • Financings
Slide 17: Operations Scorecard
OPERATIONS SCORECARD 3rd Quarter 2009 Scorecard 2009 Safety Current Status Target • Reliability YTD Total Incident Case Rate (TICR) • Minimize both the frequency and – Employees (1) 1.07 1.15 duration of outages Reliability YTD – Nuclear Generation Capacity • Generation fleet performance Factor 97.0
Slide 18: Key Regulatory Initiatives
KEY REGULATORY 2009 Achievements INITIATIVES State Activity OH Electric Distribution rate case approved NC & SC Allen Scrubber and Catawba interest deferral approval IN Save-a-watt settlement IN Edwardsport cost increase approval IN Smart Grid settlement NC Save-a-watt settlement NC Base rate case s
Slide 19: Third Quarter Earnings Review and Business Update
THIRD QUARTER EARNINGS REVIEW AND BUSINESS UPDATE 19
Slide 20: Non-GAAP Reconciliations
Duke Energy Corporation Non-GAAP Reconciliations Third Quarter Earnings Review and Business Update October 30, 2009 Adjusted Diluted Earnings per Share (“EPS”) The materials for Duke Energy Corporation’s (“Duke Energy”) Third Quarter Earnings Review and Business Update presentation on October 30, 20
Slide 21: Non-GAAP Reconciliations (continued)
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 operations attributable to Duke Energy Corporation common shareholder
Slide 22: 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 Economic Achieve, Crescent Emission Hedges Adjusted Cinergy Project Allowances (Mark-to- Discontinued Total Reported Ear
Slide 23: 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 24: Adjusted to Reported Earnings Reconciliation – September 2009 Quarter-to-Date
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION September 2009 Quarter-to-Date (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Achieve, Crescent Related Goodwill and Economic Adjusted Cinergy Guarantees and Other Hedges (Mark- Discontinued Total R
Slide 25: Adjusted to Reported Earnings Reconciliation – September 2009 Year-to-Date
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION September 2009 Year-to-Date (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Economic Achieve, Crescent Related International Goodwill and Hedges Adjusted Cinergy Guarantees and Transmission Other (Ma
Slide 26: Available Liquidity Reconciliation
Duke Energy Corporation Available Liquidity Reconciliation As of September 30, 2009 (In millions) Cash and Cash Equivalents $1,606 Short-Term Investments 1 Subtotal 1,607 Less: Amounts Held in Foreign Jurisdictions (587) $1,020 Plus: Remaining Availability under Master Credit Facility 1,599 Total Av