Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — FY2003 Earnings Presentation
13 slides from Duke Energy Corporation (Holding Company)'s earnings presentation, Jan 13, 2003
Slide 1: 2003 Earnings Outlook
2003 Earnings Outlook January 13, 2003 Rick Priory Chairman and CEO Fred Fowler President and COO Robert Brace EVP and Chief Financial Officer
Slide 2: 2002 Earnings
2002 Earnings Q Q Previous 2002 EPS guidance was at the low end of the range of $1.95 to $2.05 per share Q Q 2002 ongoing EPS is likely to be around 10¢ below $1.95 per share Q Q Fourth quarter charges are expected to be approximately 40¢ per share, including: O O Duke Power storm costs O O Severanc
Slide 3: 2003 Earnings Guidance
2003 Earnings Guidance Q Q 2003 ongoing earnings of $1.35 to $1.60 per share O O Ongoing EPS excludes any after-tax charges related to implementation of EITF 02-03 and FAS 143 Q Q Lower earnings related to: O O Impact of slow economic recovery on all businesses O Continuing decline in commodity pric
Slide 4: Challenges for 2003
Challenges for 2003 Q Q Pace of economic recovery Q Q Demand/supply imbalance Q Q Regulatory uncertainty and litigation
Slide 5: Plans for 2003 and Beyond
Plans for 2003 and Beyond Duke Energy is focused on reducing risks and restructuring for future success: O O Focus on positive net cash generation O O Invest in our strongest business sectors O O Right-size businesses to market realities O O Address merchant energy issues O O Strengthen relationship
Slide 6: 2003 Guidance: Franchised Electric and Natural Gas Transmission
2003 Guidance Q Q Franchised Electric O O Approximate EBIT of $1.6 billion O Assumes normalized weather O O Anticipates sales growth of 1.8% O O Higher amortization expense due to Clean Air legislation O O Five-year rate freeze begins in 2003 O Q Q Natural Gas Transmission O O Approximate EBIT of $1
Slide 7: 2003 Guidance: Field Services
2003 Guidance Rig Count and Commodity Pricing $35 Field Services 1400 (1990 – 2002) 1200 $30 1000 $25 O O NGL pricing expected 800 $20 to improve in 2003, 600 $15 following higher crude 400 $10 prices 200 $5 O NGL production hedged 0 $- O at about 60% for 2003 90 91 92 93 94 95 96 97 98 99 00 01 02
Slide 8: 2003 Guidance: Duke Energy North America
2003 Guidance Q Q Duke Energy North America O O Expected EBIT of $200 million excluding any divestitures O O Eliminates expectations of market improvement in 2003
Slide 9: 2003 Cash Flow Expectations
2003 Cash Flow Expectations ($ Millions) Primary Sources: Income $ 1,400 Depreciation & Amortization 1,900 NBV of Crescent sales 500 NBV of other sales 600 4,400 Equity (DRIP, etc) 250 $ 4,650 Primary Uses: Capital Expenditures $ (3,200) Dividends (1,000) $ (4,200)
Slide 10: 2003 Capital Expenditures
2003 Capital Expenditures Maintenance Expansion Regulated $1,500 million $500 million Unregulated $300 million $900 million Subtotal $1,800 million $1,400 million TOTAL ESTIMATED CAPEX $3,200 million
Slide 11: Liquidity Position
Liquidity Position December 31, 2002 Duke Duke Energy Capital Other * Credit Facilities $950 million $1.9 billion $1.7 billion LOC Facility n/a $1.0 billion n/a TOTAL CAPACITY $5.6 billion CP Outstanding $900 million $600 million $600 million LOC Facility n/a $500 million n/a Other Borrowings n/a n/
Slide 12: Duke Energy… Still a Good Investment
Duke Energy… Still a Good Investment Q Q Business strategy: O O Portfolio strength O O Financial strength O O Management depth Q Q Attractive dividend yield of 5% Q Q Well positioned for market recovery
Slide 13: Q&A
Q&A