Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Q2 2007 Earnings Presentation
25 slides from Duke Energy Corporation (Holding Company)'s earnings presentation, Aug 7, 2007
Slide 1: a rs |
a rs | £ ie D Group Executive and Chief F nancial Officer i Chairman, President-and Chief ans Officer vid Hauser |
Slide 2: Safe Harbor Statement
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 additiona
Slide 3: Earnings Summary
Earnings Summary 2Q07 2Q06 DUK Reported Diluted Earnings per Share $ 0.23 $ 0.28 Special Items 0.01 0.08 Discontinued Operations 0.01 (0.12) DUK Ongoing Diluted Earnings per Share $ 0.25 $ 0.24 Increase in ongoing earnings due to improved results at FE&G, Commercial Power and International Incre
Slide 4: U.S. Franchised Electric & Gas
U.S. Franchised Electric & Gas Reported & Ongoing Segment EBIT ($ millions) 2Q07 2Q06 Reported Segment EBIT $ 452 $ 351 Special Items - - Ongoing Segment EBIT $ 452 $ 351 2Q07 segment EBIT increased by $101 million over 2Q06 Increase due primarily to: Favorable weather Increased wholesale vo
Slide 5: Commercial Power
Commercial Power Reported & Ongoing Segment EBIT ($ millions) 2Q07 2Q06 Reported Segment EBIT $ 35 $ 20 Special Items - - Ongoing Segment EBIT $ 35 $ 20 2Q07 segment EBIT improved $15 million over 2Q06 Increase due primarily to Higher retail demand Favorable MTM impact Improved results fro
Slide 6: International Energy
International Energy Reported & Ongoing Segment EBIT ($ millions) 2Q07 2Q06 Reported Segment EBIT $ 97 $ 24 Special Items - 55 Ongoing Segment EBIT $ 97 $ 79 2Q07 ongoing segment EBIT increased $18 million compared to 2Q06 Increase primarily due to increased margins in Latin America 2Q06 inclu
Slide 7: Crescent Resources
Crescent Resources Reported & Ongoing Segment EBIT ($ millions) 2Q07 2Q06 Reported Segment EBIT $ 17 $ 174 Special Items - - Ongoing Segment EBIT $ 17 $ 174 2Q07 segment results declined compared to 2Q06, due primarily to the following: 2Q06 results included gains of $81 and $52 million on prope
Slide 8: Other
Other Reported & Ongoing EBIT ($ millions) 2Q07 2Q06 Reported EBIT (Loss) $ (66) $ (151) Special Items 24 74 Ongoing EBIT (Loss) $ (42) $ (77) 2Q07 ongoing EBIT losses improved by $35 million compared to 2Q06, due primarily to lower corporate overhead and governance costs 2Q07 special items incl
Slide 9: Other Items
Other Items Net cash balance of approximately $900 million on 6/30/07 ~$1.6 billion of cash, cash equivalents and short-term investments Net of ~$700 million in short-term commercial paper Interest expense for the quarter was $160 million compared to $185 million for 2Q06 2Q07 effective ta
Slide 10: Earnings Growth Drivers
Earnings Growth Drivers Enhanced Cost Significant Capital Steady Sales Growth Reductions Reinvestment Annual load growth Consistent focus on Recovery of and on 1.5% in Carolinas cost control investment 1.0% in Midwest Creation of continuous Current focus on ~65,000 new improvement te
Slide 11: Regulatory Update: N.C. Legislation
Regulatory Update: N.C. Legislation Balanced approach to meeting future N.C. energy needs Establishes renewable portfolio standard to be phased in 3% by 2012 . . . 12.5% by 2021 Provides cost recovery for energy efficiency Provides cost recovery for Environmental re-agents Energy compo
Slide 12: Regulatory Update cont'd. (rate cases)
Regulatory Update cont’d. N.C. Rate Case Ohio Gas Rate Case Ohio RSP Requested $140 million Requested $34 million RSP expires in 2008 increase in rates (3.6%) increase in rates (5.8%) 1,500 MW currently needed, Effective January 1, 2008 Approval to continue tracker 900 MW more by 2013
Slide 13: Regulatory Update cont'd. (new generation, efficiency, nuclear)
Regulatory Update cont’d. New Coal and Gas Generation 630 MW IGCC Plant (IN) Energy Efficiency and Nuclear (N.C.) Cliffside Completed evidentiary Energy Efficiency $1.8 billion updated cost hearings in June Filed save-a-watt plan in May estimate (excludes $600 Expect order in 4Q07 with N.C.
Slide 14: Regulatory Update cont'd. (wind, climate change)
Regulatory Update cont’d. Wind Energy Climate Change Recent acquisition of 1,000+ MW of Seven competing bills currently wind development projects Key economic issue: allowance Currently 23 states with renewable allocation portfolio standards Duke Energy supports economy-wide Approximatel
Slide 15: September Analyst Conference
September Analyst Conference September 14 in New York City Updated five-year CapEx plan Update ongoing earnings growth rate Regulatory update Review of operations by Duke Energy senior management team 15
Slide 16: Value Proposition
Value Proposition Growth Annual Total Return Profile Sales growth 15% Cost reductions Return on capital investments 10% Value Proactive regulatory strategy 2007 EPS incentive target 5% of $1.15 per share, based on ongoing diluted EPS 0% 4–6% ongoing diluted EPS growth EPS Growth Divi
Slide 17: Slide 17
Slide 18: Non-GAAP Reconciliations Second Quarter 2007 Earnings Review
Duke Energy Corporation Non-GAAP Reconciliations Second Quarter 2007 Earnings Review August 7, 2007 Ongoing Diluted Earnings per Share (“EPS”) The slides and prepared remarks for Duke Energy Corporation’s (“Duke Energy”) Second Quarter 2007 Earnings Review include a discussion of ongoing diluted EPS
Slide 19: Ongoing Segment and Other EBIT
Ongoing Segment and Other EBIT The slides and prepared remarks for Duke Energy’s Second Quarter 2007 Earnings Review include a discussion of ongoing segment EBIT, including diluted-EPS-equivalent amounts, and ongoing Other EBIT, for certain periods. Also included in the prepared remarks is a referen
Slide 20: Ongoing to Reported Earnings Reconciliation, June 2006 Quarter-to-date
DUKE ENERGY CORPORATION ONGOING TO REPORTED EARNINGS RECONCILIATION June 2006 Quarter-to-date (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Impairment of Ongoing Achieve, Cinergy Campeche Discontinued Total Reported Earnings Merger Investment Operations Adjustments
Slide 21: Ongoing to Reported Earnings Reconciliation, June 2006 Year-to-date
DUKE ENERGY CORPORATION ONGOING TO REPORTED EARNINGS RECONCILIATION June 2006 Year-to-date (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Impairment of Ongoing Achieve, Campeche Discontinued Total Reported Earnings Cinergy Merger Investment Operations Adjustments Ear
Slide 22: Ongoing to Reported Earnings Reconciliation, June 2007 Quarter-to-date
DUKE ENERGY CORPORATION ONGOING TO REPORTED EARNINGS RECONCILIATION June 2007 Quarter-to-date (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Ongoing Achieve, Cinergy IT Severance Discontinued Total Reported Earnings Merger Costs Operations Adjustments Earnings SEGMEN
Slide 23: Ongoing to Reported Earnings Reconciliation, June 2007 Year-to-date
DUKE ENERGY CORPORATION ONGOING TO REPORTED EARNINGS RECONCILIATION June 2007 Year-to-date (Dollars in millions, except per-share amounts) Special Items (Note 1) Costs to Convertible Achieve, Ongoing Debt Costs, Gas Cinergy IT Severance Discontinued Total Reported Earnings Spin-off Merger Costs Oper
Slide 24: Reported and Ongoing Segment EBIT - EPS Equivalents
Duke Energy Corporation Reported and Ongoing Segment EBIT - EPS Equivalents Second Quarter 2007 vs. 2006 (in millions, except per-share amounts) Reported Ongoing 2Q 2Q Tax EPS 2Q 2Q Tax EPS Segment 2007 2006 Difference Effect Impact 2007 2006 Difference Effect Impact U.S. Franchised Electric and Gas
Slide 25: Net Cash Balance Reconciliation
Duke Energy Corporation Net Cash Balance Reconciliation As of June 30, 2007 (in millions) Cash and Cash Equivalents $611 Short-Term Investments 1,022 Subtotal 1,633 Short-term Commercial Paper Outstanding (a) (729) Net Cash Balance (b) $904 (Approximately $900) (a) Excludes approximately $300 millio