Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — NCINVEST 2004
13 slides from Duke Energy Corporation (Holding Company)'s conference presentation, Feb 26, 2004
Slide 1: NCINVEST
NCINVEST Myron Caldwell Vice President and Treasurer February 26, 2004
Slide 2: Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Act of 1995 This document contains forward looking information which is subject to risks and uncertainties, including, but not limited to, changes in the utility regulatory environment, the impact of competition from other energy supplier
Slide 3: Franchised Electric Service Territory
Franchised Electric Service Territory Eden Walnut Cove 77 85 Winston-Salem Greensboro Burlington 40 High Point Chapel Hill Durham Lenoir Morganton Salisbury Hickory BUCK North Carolina Asheville MCGUIRE 85 h Brevard Shelby Gastonia CATAWBACharlotte 100 years of service… Greenville Rock Hill Spartanb
Slide 4: 2003 Earnings per Share
2003 Earnings per Share Primary drivers for 2003 • Regulated units and Field Services show strong operational and financial results; 2002 2003 domestic merchant operations report a loss • More than $2 billion in non-strategic asset Reported EPS $ 1.22 $(1.48) sales; exceeds target Special Items 0.66
Slide 5: 2003 Key Events
Interest in Pacific Northern Gas 2003 Key Events Interest in Foothills Pipeline Energy Delivery Services Interest in Alliance Vector Pipeline CTR (France) pipeline and Aux Interest in PJP Duke announces Sable processing plant reorganization and Duke announces Gathering and dissolution of management
Slide 6: 2004 Financial Overview
2004 Financial Overview Sources of cash forecasted to exceed uses by approximately $4 billion Debt maturities and reductions, less issuances, expected to be in the range of $3.5 to $4 billion Strong liquidity position with $1 billion cash on hand Asset sales expected to be approximately $1.5
Slide 7: 2004 Cash Flow
2004 Cash Flow ($ in millions) Duke Duke Primary Sources: Energy Capital Net income $ 1,100 $ 450 Depreciation & amortization 2,075 1,050 NBV of ongoing Crescent inventory sales 550 550 NBV of energy asset sales 1,500 1,500 Deferred income taxes 450 475 Other sources/(uses), net (225) 25 Subtotal $
Slide 8: Mandatory Convertible Equity Units
Mandatory Convertible Equity Units The equity units are comprised of (1) a forward purchase contract for Duke Energy common stock and (2) Duke Capital senior debt. 2001 2001 - 2004 2004 ($ in billions) Issuance Holding Period Remarketing Debt + $1.625 No change Cash No change proceeds will be Equity
Slide 9: Medium-Term Expectations
Medium-Term Expectations Over the medium-term – we expect modest EBIT growth at most of our businesses Projected CAGR Franchised Electric Flat – 2% Gas Transmission 3 – 5% Field Services 8 – 10% International 2 – 3% Crescent Flat – 2% DENA is expected to have an EBIT loss of $300 million in 2004
Slide 10: Management Priorities
Management Priorities • Deliver on financial plan, preserving the dividend of $1.10 per share • Debt to cap ratio reduced from 58% in 2003 to 52% in 2004 • Investor proposition of modest growth and income • Resize and realign our asset portfolio to reflect current and future market realities and to
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Slide 12: Debt Reduction Reconciliation
Debt Reduction Reconciliation ($ in millions) Duke Energy Corporation Issuances of long-term debt $ 3,009 Payments for the redemption of long-term debt, guaranteed (4,839) preferred beneficial interests and preferred member interests and net paydown of commercial paper and notes payable Assumed debt
Slide 13: Cash Flow Reconciliation Required by SEC Regulation G
Duke Energy Corporation Consolidated and Duke Capital Corporation Consolidated Cash Flow Reconciliation Required by SEC Regulation G ($ in Millions) 2004 Duke Energy Duke Capital Excerpts from Duke Energy Corporation Analyst Call (January 7, 2004) Primary Sources of Cash per Presentation: Net income