Duke Energy Corporation (holding Company) · NYSE:DUK
Duke Energy Corporation (holding Company) — FY2004 Earnings Presentation
12 slides from Duke Energy Corporation (holding Company)'s earnings presentation, February 2005
Slide 1: 2004 Earnings Review and 2005 Outlook
2004 Earnings Review and 2005 Outlook February 2005 Myron Caldwell Vice President and Treasurer
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 that could cause actual results to be different than those contemplated, including, but not limited to, changes in state, federal o
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: Annual Highlights for 2004
Annual Highlights for 2004 2004 2003 Reported Basic EPS $ 1.59 $ (1.48) Special Items (0.21) 2.76 EPS excluding special items $ 1.38 $ 1.28 ■ Regulated businesses delivered solid earnings and strong cash flow ■ Field Services delivered record earnings; benefited from strong NGL prices ■ Crescent Res
Slide 5: 2004 Scorecard
2004 Scorecard Goal Dec 31, 2004 (1) $1.20 EPS for target incentive payout $1.20/sh $1.38/sh (2) Lower debt balances $3.5 to $4 billion $4.6 billion (3) Sell non-strategic asset positions $1.5 billion $3.1 billion Regulatory and litigation risk Reduce DENA: mark-to-market exposure Mitigate Cash and
Slide 6: Expectations for 2005 and Beyond
Expectations for 2005 and Beyond ■ Franchised Electric ● Ongoing segment EBIT growth: Flat to 2% CAGR through 2007 ● Evaluating future requirements to fulfill increasing demand ■ Natural Gas Transmission ● Ongoing segment EBIT growth: 3 - 5% CAGR through 2007 ● Growing gas demand driving additional
Slide 7: Expectations for 2005 and Beyond
Expectations for 2005 and Beyond ■ Field Services ● 2005 ongoing segment EBIT expected in the range of $350 - $500 million based upon crude oil prices averaging between $30 - $40/bbl ● NGL production hedged as of Dec 31, 2004 ● 2005: 64% at $38 per barrel ● 2006: 30% at $43 per barrel ● Anticipate d
Slide 8: Expectations for 2005 and Beyond
Expectations for 2005 and Beyond ■ Duke Energy North America ● Expect 2005 ongoing segment EBIT loss of $150 million ● EBIT improvements driven by higher gross margin and lower operating costs ● Sale of last remaining deferred plant expected to close in 1Q05 ● Focus on defining a sustainable busines
Slide 9: Expectations for 2005 and Beyond
Expectations for 2005 and Beyond ■ International Energy ● Ongoing segment EBIT growth: 2 – 3% CAGR through 2007 ● Increase sales and marketing of available capacity ● Optimize energy output and operating efficiencies ● Reduce costs ■ Crescent Resources ● 2005 ongoing segment EBIT expected to trend b
Slide 10: Expectations for 2005 and Beyond
Expectations for 2005 and Beyond ■ Other ● Run rate of approximately $200 million in net expenses ● Primarily corporate overhead ■ Income Taxes ● Effective tax rate in the low- to mid-30% range 10
Slide 11: Duke Energy: Cash Flow
Duke Energy: Cash Flow ($ in millions) 2005 Estimate Primary Sources: Net income $ 1,525 (Based on $1.60 per ongoing basic share target) Depreciation & amortization 2,125 NBV of ongoing Crescent sales 475 Cash tax carryforwards 450 Other sources/(uses), net (150) Total Sources $ 4,425 Primary Uses:
Slide 12: Duke Energy 2005 Charter
Duke Energy We are Duke Energy, a leading energy company located in the Americas with an 2005 Charter affiliate real estate operation Our purpose is to create superior value for our customers, employees, communities and investors through the production, conversion, delivery and sale of energy and en