Duke Energy Corporation (holding Company) · NYSE:DUK
Duke Energy Corporation (holding Company) — UBS Conference 2006
23 slides from Duke Energy Corporation (holding Company)'s conference presentation, Feb 15, 2006
Slide 1: UBS Conference
UBS Conference February 15, 2006 Fred Fowler President and Chief Operating Officer
Slide 2: Safe Harbor Statement
Safe Harbor Statement This document includes statements that do not directly or exclusively relate to historical facts. Such statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forwa
Slide 3: Disclosure Statements
Disclosure Statements Additional Information and Where to Find It In connection with the proposed transaction, a registration statement of Duke Energy Holding Corp. (Registration No. 333- 126318), which includes a definitive joint proxy statement of Duke and Cinergy, and other materials have been fi
Slide 4: Highlights for 2005
Highlights for 2005 2005 2004 Reported Basic EPS $ 1.94 $ 1.59 Adjustments ** (0.15) (0.08) Ongoing Basic EPS $ 1.79 $ 1.51 ■ Franchised Electric benefited from favorable summer weather and strong bulk power sales; partially offset by a $46 million charge for storm damage and higher O&M ■ Natural Ga
Slide 5: Disposition of DENA's Discontinued Operations
Disposition of DENA’s Discontinued Operations ■ Generation assets ● Agreed to sell DENA’s plants in the West and Northeast to LS Power for $1.54 billion, assuming certain performance measures are met, and no less than $1.48 billion ● Expect to close before June 2006 ■ Contracts ● Barclays Capital tr
Slide 6: Merger Update
Merger Update ■ State approvals ● Received approvals from the state commissions in South Carolina, Kentucky and Ohio ● Hearings completed in Indiana and North Carolina ■ Received Nuclear Regulatory Commission approval on Feb 7th ■ Mailed proxies to shareholders ■ Special shareholder meetings schedul
Slide 7: Duke Energy 2006 Short-Term Incentive Plan
Duke Energy 2006 Short-Term Incentive Plan Earnings per Share Incentive Assumptions for 2006 ■ Incentive target of $1.90 per ongoing ■ Assumes merger closing at April 1st, which diluted share, which is approximately is our internal ready date 10% above ongoing EPS results for ■ Includes 9 months of
Slide 8: 2006 Expectations for Current Duke Businesses
2006 Expectations for Current Duke Businesses ■ Ongoing segment EBIT for 2006 will be essentially flat compared with 2005 which was approximately $1.5 billion Franchised ■ Excludes merger-related costs-to-achieve, cost savings and sharing Electric ■ 2% customer growth ■ Normal weather ■ Ongoing segm
Slide 9: 2006 Expectations for Current Duke Businesses
2006 Expectations for Current Duke Businesses ■ Anticipate 2006 ongoing segment EBIT to be approximately $275 million ■ Operations in Brazil are 96% contracted International ■ Normal hydrology for Latin American operations ■ Anticipate 2006 ongoing segment EBIT from continuing and discontinued opera
Slide 10: 2006 Expectations for Cinergy's Operations
2006 Expectations for Cinergy’s Operations ■ Cinergy’s ongoing EBIT contribution for nine months of 2006 is anticipated to be approximately $800 million ■ Assumptions ● Excludes merger-related costs-to-achieve, cost savings and revenue reductions ● Base rate increases as already publicly disclosed ●
Slide 11: Merger Savings and Costs-to-Achieve
Merger Savings and Costs-to-Achieve ■ Extremely confident in ability to meet merger targets as presented on September 15, 2005 ■ Five-year targets, excluding non-regulated ● Gross savings of slightly more than $1.3 billion ● Costs to achieve of approximately $675 million ● Net savings of about $650
Slide 12: Duke Power: Growth Requires Additional Capacity
Duke Power Growth Requires Additional Capacity 2005 Integrated Resource Plan 30,000 30,000 28,000 Additional Resources 28,000 Needed for 17% 26,000 Existing 26,000 24,000 Demand-Side 24,000 Management Load Forecast 22,000 22,000 Megawatts 20,000 20,000 18,000 18,000 16,000 Existing Purchase Contract
Slide 13: Duke Power: Potential Regulated Generation Additions
Duke Power Potential Regulated Generation Additions Potential Type Size Timeframe Investment Coal 800 MW 2011 $1.2 billion TBD based on load growth Coal 800 MW & nuclear plant $900 million construction schedule Combined cycle TBD based on 600 MW $350 million – gas RFP results Combustion turbine TBD
Slide 14: Natural Gas: Supply Outlook
Natural Gas: Supply Outlook United States Natural Gas Consumption by Supply Source (2000 – 2025) 100 CAGR Total projected LNG 2005-2015 90 Alaska Supply Import from Canada 80 Total US L48 Production (minus exports to Mexico) 14% 70 1% 60 -1% Bcf/d 50 40 30 1% 20 10 Source: EIA, Annual Energy Outlook
Slide 15: Natural Gas: The World is Changing
Natural Gas: The World is Changing ■ Markets and regulators have heightened focus on reliability and supply diversity ● Sustained high natural gas prices ● Supply disruptions ● Growth in peak demand ● Fear of scarcity ■ LNG development slower than originally thought ● Re-gasification facilities outp
Slide 16: Supply Area Accomplishments and Opportunities
Natural Gas Transmission Supply Area Accomplishments and Opportunities Proposed CenterPoint Energy Pipeline Perryville Carthage Hub Hub Proposed Copiah Storage Southeast Supply Header Gulfstream Phase 2 Texas Moss Eastern Bluff Egan Storage Expansion Gulfstream ■ Commenced 350 MDth/d of incremental
Slide 17: Northeast Market Accomplishments & Opportunities
Natural Gas Transmission Northeast Market Accomplishments & Opportunities Maritimes & Northeast Bear Head Canaport St. Clair & Islander East Cape Cod Sarnia Storage Ramapo Excelerate NE Gateway Algonquin Union Gas ■ Strategically located to access Atlantic Canada and Northeast US LNG projects ■ Open
Slide 18: Duke Energy 2006 Charter
Duke Energy We are Duke Energy, a leading energy company located in the Americas with an 2006 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
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Slide 20: Non-GAAP Reconciliation Schedules: EPS Incentive Target Measure
Duke Energy Corporation Non-GAAP Reconciliation Schedules 2006 Earnings per Share (“EPS”) Incentive Target Measure The slides and prepared remarks for the February 15, 2006 UBS Conference include a discussion of the Company's 2006 EPS incentive target of $1.90 and the minimum payout level of $1.75.
Slide 21: Non-GAAP Reconciliation Schedules: Crescent Segment EBIT
Duke Energy Corporation Non-GAAP Reconciliation Schedules 2006 Segment EBIT from Continuing and Discontinued Operations for Crescent The Company’s slides and prepared remarks for the February 15, 2006 UBS Conference include a discussion of Crescent Resources’ segment EBIT from continuing and discont
Slide 22: Ongoing to Reported Earnings Reconciliation December 2004
DUKE ENERGY CORPORATION ONGOING TO REPORTED EARNINGS RECONCILIATION December 2004 Year-to-date (Dollars in Millions) Special Items (Note 1) Gains Discontinued Gains (losses) on Adjustment to Tax Benefit from Operations, Ongoing (Losses) on sales and Enron Captive Total Reported Impairment DEA exclud
Slide 23: Ongoing to Reported Earnings Reconciliation December 2005
DUKE ENERGY CORPORATION ONGOING TO REPORTED EARNINGS RECONCILIATION December 2005 Year-to-date (Dollars in Millions) Special Items (Note 1) Initial gain and Discontinued Loss on Gain on Gains (losses) Mutual Field Services subsequent Operations/ Southeast transfer of on sales and Ongoing insurance h