Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Q2 2002 Earnings Presentation
12 slides from Duke Energy Corporation (Holding Company)'s earnings presentation, Jul 25, 2002
Slide 1: Second Quarter Review
Second Quarter Review Robert Brace Executive Vice President and Chief Financial Officer Rick Priory Chairman, President and Chief Executive Officer July 25, 2002
Slide 2: Financial Update
Financial Update Robert Brace Executive Vice President and Chief Financial Officer
Slide 3: Second Quarter Financial Results
Second Quarter Financial Results Earnings Earnings Drivers per Share II Three months of earnings $0.54 $0.57 from acquisition of Westcoast Energy II Lower operating expenses and increased power sales at Franchised Electric II Lower volatility and reduced spark spreads at DENA II Lower NGL pricing at
Slide 4: YTD 2002 Financial Results
YTD 2002 Financial Results Earnings Earnings Drivers per Share II Four months of earnings $1.27 from acquisition of Westcoast Energy $1.05 II Lower sales at Franchised Electric due to mild weather in 1Q02 1Q02 II Decreased trading activity at DENA II Lower NGL pricing at Field Services 2001 2001 200
Slide 5: Financial Liquidity
Financial Liquidity Duke Duke Energy Energy Duke Duke Capital Capital CP CP Program Program $1,250 $1,250 million million $1,550 $1,550 million million 2Q02 2Q02 Avg Avg Balance Balance $869 $869 million million $937 $937 million million LOC LOC Facility Facility n/a n/a $1,075 $1,075 million millio
Slide 6: Capital Expenditures
Capital Expenditures II Goal: to maintain strong balance sheet and financial flexibility for the company II Revised estimate for 2002, excluding the acquisition of Westcoast Energy, is approximately $6.8 billion II Revised estimate for 2003 and 2004 is $4-6 billion per year II Operating cash flow sh
Slide 7: Equity Issuance
Equity Issuance II For 2002, plans continue to issue $1 billion of equity or equity-linked securities by year end II Continuous issuance of new shares through the DRIP plan GG Approximately $200 million annually II In 2004, the mandatory convertibles issued during 2001 will convert to common equity
Slide 8: Future Earnings Drivers
Future Earnings Drivers II Acquisition of Westcoast Energy GG Accretive Accretive to to earnings: earnings: 3¢ 3¢ in in 2002 2002 GG Strong Strong cash cash flow flow business business GG Lower Lower risk risk profile profile for for corporation corporation II Rate Freeze at Franchised Electric GG “
Slide 9: Business Update
Business Update Rick Priory Chairman, President and Chief Executive Officer
Slide 10: Earnings Guidance
Earnings Guidance II 2002 GG As a result of unstable market environment we expect to earn $2.45 - $2.55 per share II 2003 and 2004 GG Expect EPS growth of 5 – 10% annually GG Additional amortization related to NC “Clean Air” legislation will reduce earnings for Franchised Electric II Expect an updat
Slide 11: Committed to Strategy
Committed to Strategy II Focused business strategy to build a diversified portfolio of energy businesses and market positions II Diverse asset base GG By commodity GG By location II Risk management expertise GG Manage market cycles GG Enhance value to both customers and shareholders
Slide 12: Q&A
Q&A