Exhibit 99
DUKE ENERGY REPORTS YEAR-END AND FOURTH QUARTER 2004 RESULTS
- Basic earnings per share as reported rose to $1.59 in 2004; $1.38 in
ongoing basic EPS
- Field Services and Crescent Resources produced record results
- Debt pay down exceeded 2004 goal of $3.5 billion to $4 billion; asset
sales topped 2004 goal of $1.5 billion
- Volatility at DENA reduced; continued improvement seen in company's
merchant business
CHARLOTTE, N.C., Feb. 2 /PRNewswire-FirstCall/ -- Duke Energy (NYSE: DUK)
today reported 2004 basic earnings per share (EPS) of $1.59, or $1.49 billion in
net income, compared to a loss of ($1.48) per share in 2003, or a $1.32 billion
loss. On a fully diluted basis, 2004 earnings were $1.54 per share, compared to
a loss of ($1.48) in 2003.
Ongoing basic EPS for 2004, which excludes special items, was $1.38 versus
$1.28 in 2003.
"In 2004, we regained control of our own destiny," said Paul Anderson, Duke
Energy chairman of the board and chief executive officer. "We exceeded the 2004
targets we set to rebuild our financial strength and finished this year in the
driver's seat to pursue new growth opportunities.
"We maintained our dividend, exceeded our goals in reducing debt and asset
sales, and improved our merchant operation. As we move into 2005, we will build
on those accomplishments and continue to fine-tune our portfolio." Anderson
added that the 2005 earnings target for employee incentive bonuses, which should
track ongoing basic earnings, is $1.60 per share -- 33 percent higher than
2004's incentive target.
He said the anticipated increase will come primarily from higher earnings at
Field Services, a smaller loss from Duke Energy North America and lower interest
expenses due to the company's successful debt reduction, which should produce
about $200 million in interest expense savings in 2005.
In fourth quarter 2004, Duke Energy reported basic earnings of $0.38 per
share, or $358 million, compared to a loss of ($2.23) per share, or a $2.02
billion loss, in the fourth quarter 2003. Fully diluted earnings for the quarter
were $0.36, compared to a loss of ($2.23) in the previous year's quarter.
Excluding special items, ongoing basic earnings per share for fourth quarter
2004 were $0.24 versus $0.22 in fourth quarter 2003.
Special items impacting basic EPS for the quarter include:
2004 2003
Pre-Tax Tax EPS EPS
($ in Millions) Amount Effect Impact Impact
- -------------------------------------- ------------ ------------ ------------ ------------
Fourth quarter 2004
- - Net gain on asset sales, including
a minority interest benefit of
$20 million $ 148 $ (51) $ 0.10 --
- - Adjustment to captive insurance
reserves 64 (22) 0.04 --
- - Net gain on sales of equity
investments 10 (3) 0.01 --
- - Loss on asset exchanges (7) 2 -- --
- - Early contract termination charges (20) 7 (0.01) --
Fourth quarter 2003
- - DENA plant impairments and
DETM charges, net of minority
interest $ (2,826) $ 1,046 -- $ (1.97)
- - DENA redesignation of hedging
contracts to mark-to-market (262) 97 -- (0.18)
- - Charges and impairments for
Australia and Europe (292) 69 -- (0.25)
- - Severance and related charges (48) 18 -- (0.03)
- - Tax adjustments -- 23 -- 0.03
- - DEI reserve and charges for
environmental settlements in Brazil (26) 10 -- (0.02)
- - Write-off of risk management system (51) 19 -- (0.04)
- - Net gain on asset sales, including a
minority interest benefit 15 (6) -- 0.01
Total basic EPS impact $ 0.14 $ (2.45)
Basic EPS, as reported $ 0.38 $ (2.23)
Basic EPS, ongoing * $ 0.24 $ 0.22
Special items impact on basic EPS year-to-date:
2004 2003
------------ ------------
First quarter $ 0.01 $ (0.17)
Second quarter 0.04 0.16
Third quarter 0.03 (0.30)
Fourth quarter 0.14 (2.45)
Impact of change in shares outstanding (0.01) --
Total basic EPS impact $ 0.21 $ (2.76)
Basic year-to-date EPS, as reported $ 1.59 $ (1.48)
Basic year-to-date EPS, ongoing * $ 1.38 $ 1.28
* Includes results from operations in International Energy, DENA, Crescent
Resources, Field Services and Other that have been discontinued.
BUSINESS UNIT RESULTS
Franchised Electric
Fourth quarter 2004 segment EBIT for Franchised Electric was $252 million,
compared to fourth quarter 2003 segment EBIT of $197 million. Economic growth in
North Carolina and South Carolina drove a 5 percent increase in industrial sales
over the same quarter in 2003. Overall, customer growth continued to be positive
as Duke Power added about 40,000 new customers during 2004. Operating and
maintenance costs for the quarter were lower than fourth quarter 2003 by $59
million, driven in part by the absence of 2003's severance charges. Bulk power
marketing sales were down in the fourth quarter 2004 due to coal supply
constraints in the marketplace. Coal supply has since improved.
Year-end segment EBIT for Franchised Electric was $1.47 billion, compared
to $1.40 billion in 2003. Ongoing segment EBIT for 2004 was $1.46 billion,
compared to $1.51 billion in 2003. Going forward, Franchised Electric expects
to see a segment EBIT compound annual growth rate through 2007 in the zero to
2 percent range based on 2004 ongoing segment EBIT.
Natural Gas Transmission
Duke Energy Gas Transmission (DEGT) reported fourth quarter 2004 segment
EBIT of $336 million, compared to $308 million in fourth quarter 2003.
Results were positively affected by pipeline expansion projects, which more
than offset losses in foregone earnings due to asset sales. Results were also
favorably impacted by $11 million from the stronger Canadian currency and the
absence of $11 million in severance costs from 2003's fourth quarter. Gains on
asset sales of $15 million for the fourth quarter 2004 were offset by a similar
amount in the previous year's quarter.
The favorable Canadian currency impacts on DEGT's segment EBIT were
partially offset in Duke Energy's net income by currency impacts on Canadian
interest and taxes.
Year-end 2004 segment EBIT for DEGT was $1.31 billion versus $1.32 billion
in 2003. Ongoing segment EBIT for 2004 was $1.28 billion, compared to $1.25
billion in 2003. Going forward, DEGT expects to see a segment EBIT compound
annual growth rate through 2007 in the 3 percent to 5 percent range based on
2004 ongoing segment EBIT.
Field Services
The Field Services business segment, which represents Duke Energy's 70
percent interest in Duke Energy Field Services (DEFS), reported fourth quarter
2004 segment EBIT from continuing operations of $128 million compared to $51
million in the fourth quarter of 2003.
The increase was primarily driven by higher commodity prices realized,
compared to last year's fourth quarter. During the quarter, DEFS paid a
dividend, of which Duke Energy's portion was $174 million. This payment reflects
continuing strong cash flow and earnings at DEFS.
Year-end segment EBIT from continuing operations for Field Services was $380
million, compared with $187 million in 2003. For 2005, Field Services expects to
see ongoing segment EBIT in the range of $350 million to $500 million based on
the price of crude oil being $30 or $40 a barrel, respectively.
Duke Energy North America
Duke Energy North America (DENA) reported segment EBIT from continuing
operations of $77 million in fourth quarter 2004, compared to a segment EBIT
loss of $3.16 billion in fourth quarter 2003.
Excluding special items, DENA had an ongoing segment EBIT loss from
continuing operations of $50 million in the fourth quarter 2004. That compares
to an ongoing segment EBIT loss of $77 million in the previous year's quarter.
Results for fourth quarter 2004 were helped by lower operating costs of $82
million. DENA also recognized a $146 million net gain, including a minority
interest benefit of $20 million, on asset sales during the quarter. These
results were partially offset by lower margins and lower than expected
electricity production due to warmer weather.
Year-end 2004 segment EBIT from continuing operations for DENA was a loss of
$535 million, compared with a segment EBIT loss of $3.34 billion in 2003.
Excluding special items, ongoing segment EBIT loss from continuing operations
for 2004 was $288 million, which includes mark-to-market losses of $25 million.
Going forward, DENA expects a 2005 ongoing segment EBIT loss of approximately
$150 million.
International Energy
For the fourth quarter 2004, Duke Energy International (DEI) reported
segment EBIT from continuing operations of $61 million, compared to $40 million
in fourth quarter 2003.
The quarter-to-quarter increase was largely driven by the absence of a $26
million reserve and charges for environmental settlements in Brazil taken in
fourth quarter 2003.
Year-end segment EBIT from continuing operations for DEI was $222 million
versus $215 million in 2003. Ongoing segment EBIT from continuing operations for
2004 was $236 million, compared to $244 million in 2003. Going forward, DEI
expects to see a segment EBIT compound annual growth rate through 2007 in the 2
percent to 3 percent range based on 2004 ongoing segment EBIT.
Crescent Resources
Crescent Resources reported fourth quarter 2004 segment EBIT from continuing
operations of $50 million, compared to $72 million in the previous year's
quarter.
The results were driven by lower legacy land sales and $38 million of
impairment and other charges, net of minority interest of $12 million, related
to residential developments in Texas and Arizona, which were partially offset by
improved residential and commercial sales in other areas.
Year-end segment EBIT from continuing operations for Crescent Resources
was $240 million versus $134 million in 2003. Crescent continues to manage a
healthy portfolio of commercial and residential properties. After record
earnings in 2004, segment EBIT should return to about $150 million in 2005.
Other
Other, which includes certain corporate costs, DukeNet Communications, the
company's 50 percent interest in Duke/Fluor Daniel, Duke Energy Merchants and
Duke Energy's captive insurance company Bison Insurance Co. Limited, reported
an EBIT loss from continuing operations of $21 million in fourth quarter 2004,
compared to a loss of $67 million in fourth quarter 2003.
The improvement was partially driven by a $64 million adjustment to
insurance reserves related to Bison.
Year-end EBIT from continuing operations in 2004 was a $77 million loss
compared to a loss of $272 million in year-end 2003. Going forward, Other should
return to a normal ongoing EBIT loss of about $200 million.
Discontinued Operations
The operations reported as discontinued showed a fourth quarter 2004 loss of
$2 million, compared to a loss of $219 million in 2003. The reduction was
largely due to 2003's $223 million after-tax charge to complete the exit from
the European market and the divestiture of DEI's Australian assets.
Year-end 2004 earnings for Discontinued Operations were $258 million, which
consisted mainly of asset sales. That compared to a loss of $158 million in
2003.
INTEREST EXPENSE
Interest expense was $314 million for fourth quarter 2004, compared to $353
million for fourth quarter 2003 -- primarily due to a $55 million decrease from
net debt reduction and refinancing activities. This was partially offset by
lower capitalized interest of $7 million and $5 million for movements in the
Canadian currency.
For 2004, interest expense was $1.35 billion, compared to $1.38 billion in
2003.
INCOME TAX
Fourth quarter 2004 income tax expenses from continuing operations were $245
million, compared to a tax benefit of $1.08 billion in fourth quarter 2003,
primarily due to impairments and charges in the previous year's quarter.
Due to the American Jobs Creation Act of 2004, Duke Energy expects to
repatriate approximately $500 million of accumulated foreign earnings in 2005,
which resulted in a $45 million tax expense in the fourth quarter of 2004.
Year-end income tax expenses from continuing operations were $540 million,
compared to a tax benefit of $707 million in 2003.
LIQUIDITY AND CAPITAL RESOURCES
Duke Energy's consolidated capital structure as of Dec. 31, 2004,
including short-term debt, was 51 percent debt, 45 percent common equity and
4 percent minority interests. The company had approximately $1.85 billion in
cash and cash equivalents as of Dec. 31, 2004.
ADDITIONAL INFORMATION
Additional information, including EPS reconciliation data and a schedule
for Duke Energy Field Services gas volume and margin by contract type can be
obtained at Duke Energy's fourth quarter 2004 earnings information Web site
at: http://www.duke-energy.com/investors/.
NON-GAAP FINANCIAL MEASURES
The primary performance measure used by management to evaluate segment
performance is segment EBIT from continuing operations, which at the segment
level represents all profits from continuing operations (both operating and
non-operating) before deducting interest and taxes, and is net of the minority
interest expense related to those profits. Management believes segment EBIT from
continuing operations, which is the GAAP measure used to report segment results,
is a good indicator of each segment's operating performance as it represents the
results of our ownership interests in continuing operations without regard to
financing methods or capital structures.
Duke Energy's management uses ongoing basic EPS, which is a non-GAAP
financial measure as it represents basic EPS adjusted for the impact of special
items, as one of the measures to evaluate operations of the company. Special
items represent certain charges which management believes will not be recurring
on a regular basis. Management believes that the presentation of ongoing basic
EPS provides useful information to investors, as it allows them to more
accurately compare the company's ongoing performance across all periods. Ongoing
basic EPS is also the basis used for employee incentive bonuses. The most
directly comparable GAAP measure for ongoing basic EPS is reported basic EPS,
which includes the impact of special items. Due to the forward-looking nature of
ongoing basic EPS for future periods, information to reconcile such a non-GAAP
financial measure to the most directly comparable GAAP financial measure is not
available at this time as the company is unable to forecast any special items
for future periods.
Duke Energy also uses ongoing segment EBIT as a measure of historical and
anticipated future segment performance. Management also uses a forecasted
ongoing segment EBIT growth rate for certain segments, which is based on
historical and forecasted ongoing segment EBIT, as an indicator of anticipated
future compound annual growth rates. When used for future periods, ongoing
segment EBIT may also include any amounts that may be reported as discontinued
operations. Ongoing segment EBIT, and related growth rates, are non-GAAP
financial measures as they represent reported segment EBIT adjusted for special
items. Management believes that the presentation of ongoing segment EBIT, and
related growth rates, provides useful information to investors, as it allows
them to more accurately compare a segment's ongoing performance across all
periods. The most directly comparable GAAP measure for ongoing segment EBIT is
reported segment EBIT, which represents EBIT from continuing operations,
including any special items. Due to the forward-looking nature of forecasted
ongoing segment EBIT and related growth rates for future periods, information to
reconcile these non-GAAP financial measures to the most directly comparable GAAP
financial measures is not available at this time as the company is unable to
forecast any special items or any amounts that may be reported as discontinued
operations for future periods.
This release includes a statement that actual 2004 debt pay down exceeded
our 2004 goal of $3.5 billion to $4 billion. The amounts referred to in this
statement represent a non-GAAP measure because they include changes in amounts
that are presented in the consolidated balance sheet as other than "debt,"
including amounts classified as liabilities associated with assets held for sale
and minority interests. Management believes the presentation of this non- GAAP
measure presents useful information to investors as it summarizes the overall
change in amounts related to the company's various financing instruments, other
than equity, except for certain changes primarily related to the impact of
changes in exchange rates.
This release also includes a statement that asset sales topped our original
goal of $1.5 billion. The amounts referred to in this statement represent
non-GAAP measures primarily because they include cash proceeds from asset sales,
amounts related to net tax benefits triggered by the sales of these assets and
amounts related to debt assumed or repaid by the buyers of the assets.
Management believes that presentation of this non-GAAP measure provides useful
information to investors because it presents a more complete financial impact of
the sales of the assets as compared to the corresponding GAAP measure of net
proceeds received directly from the purchasers of the assets. For 2004, this
difference was significant due to the tax basis of many of the assets sold and
the structuring of the sale of the Australian assets, whereby the buyer retired
approximately $840 million of debt rather than remitting these proceeds to the
company.
Duke Energy is a diversified energy company with a portfolio of natural gas
and electric businesses, both regulated and unregulated, and an affiliated real
estate company. Duke Energy supplies, delivers and processes energy for
customers in the Americas. Headquartered in Charlotte, N.C., Duke Energy is a
Fortune 500 company traded on the New York Stock Exchange under the symbol DUK.
More information about the company is available on the Internet at:
http://www.duke-energy.com.
An earnings conference call for analysts is scheduled for 10 a.m. ET today.
The conference call can be accessed via the investors' section of Duke Energy's
Web site http://www.duke-energy.com/investors/ or by dialing 800/475-3716 in the
United States or 719/457-2728 outside the United States. The confirmation code
is 434060. Please call in five to 10 minutes prior to the scheduled start time.
A replay of the conference call will be available by dialing 888/203-1112 with a
confirmation code of 434060. The international replay number is 719/457-0820,
confirmation code 434060. A replay and transcript also will be available by
accessing the investors' section of the company's Web site. The presentation may
include certain non-GAAP financial measures as defined under SEC rules. In such
event, a reconciliation of those measures to the most directly comparable GAAP
measures will be available on our investor relations Web site at:
http://www.duke-energy.com/investors/financial/gaap/.
This release 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. Those statements represent Duke Energy's
intentions, plans, expectations, assumptions and beliefs about future events and
are subject to risks, uncertainties and other factors. Many of those factors are
outside Duke Energy's control and could cause actual results to differ
materially from the results expressed or implied by those forward- looking
statements. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include: state, federal
and foreign legislative and regulatory initiatives that affect cost and
investment recovery, have an impact on rate structures, and affect the speed at
and degree to which competition enters the electric and natural gas industries;
the outcomes of litigation and regulatory investigations, proceedings or
inquiries; industrial, commercial and residential growth in Duke Energy's
service territories; the weather and other natural phenomena; the timing and
extent of changes in commodity prices, interest rates and foreign currency
exchange rates; general economic conditions, including any potential effects
arising from terrorist attacks and any consequential hostilities or other
hostilities; changes in environmental and other laws and regulations to which
Duke Energy and its subsidiaries are subject or other external factors over
which Duke Energy has no control; the results of financing efforts, including
Duke Energy's ability to obtain financing on favorable terms, which can be
affected by various factors including Duke Energy's credit ratings and general
economic conditions; lack of improvement or declines in the market prices of
equity securities and resultant cash funding requirements for Duke Energy's
defined benefit pension plans; the level of creditworthiness of counterparties
to Duke Energy's transactions; the amount of collateral required to be posted
from time to time in Duke Energy's transactions; growth in opportunities for
Duke Energy's business units, including the timing and success of efforts to
develop domestic and international power, pipeline, gathering, liquefied natural
gas, processing and other infrastructure projects; the performance of electric
generation, pipeline and gas processing facilities; the extent of success in
connecting natural gas supplies to gathering and processing systems and in
connecting and expanding gas and electric markets; the effect of accounting
pronouncements issued periodically by accounting standard-setting bodies; and
conditions of the capital markets and equity markets during the periods covered
by the forward-looking statements.
In light of these risks, uncertainties and assumptions, the events described
in the forward-looking statements might not occur or might occur to a different
extent or at a different time than Duke Energy has described. Duke Energy
undertakes no obligation to publicly update or revise any forward- looking
statements, whether as a result of new information, future events or otherwise.
Information contained in this release is unaudited, and is subject to change
pending completion of the 2004 financial audit by the company's registered
public accounting firm.
MEDIA CONTACT: Randy Wheeless
Phone: 704/382-8379
24-Hour: 704/382-8333
ANALYST CONTACT: Julie Dill
Phone: 980/373-4332
DECEMBER 2004
QUARTERLY HIGHLIGHTS
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------- ---------------------------
(In millions, except where noted) 2004 2003 2004 2003
- --------------------------------------- ------------ ------------ ------------ ------------
COMMON STOCK DATA
Earnings (Loss) Per Share (from
continuing operations)
Basic $ 0.38 $ (1.99) $ 1.31 $ (1.13)
Diluted $ 0.36 $ (1.99) $ 1.27 $ (1.13)
(Loss) Earnings Per Share (from
discontinued operations)
Basic $ - $ (0.24) $ 0.28 $ (0.17)
Diluted $ - $ (0.24) $ 0.27 $ (0.17)
Earnings (Loss) Per Share (before
cumulative effect of change in
accounting principle)
Basic $ 0.38 $ (2.23) $ 1.59 $ (1.30)
Diluted $ 0.36 $ (2.23) $ 1.54 $ (1.30)
Earnings (Loss) Per Share
Basic $ 0.38 $ (2.23) $ 1.59 $ (1.48)
Diluted $ 0.36 $ (2.23) $ 1.54 $ (1.48)
Dividends Per Share $ 0.275 $ 0.275 $ 1.10 $ 1.10
Weighted-Average Shares Outstanding
Basic 947 908 931 903
Diluted 983 908 966 903
- ---------------------------------------------------------------------------------------------------
INCOME
Operating Revenues $ 6,046 $ 5,249 $ 22,503 $ 22,080
============ ============ ============ ============
Total Reportable Segment EBIT 904 (2,496) 3,084 (85)
Other EBIT (21) (67) (77) (272)
Interest Expense (a) 314 353 1,349 1,380
Minority Interest (Benefit) Expense and
Other (b) (36) (38) (114) (27)
Income Tax Expense (Benefit) from
Continuing Operations 245 (1,076) 540 (707)
(Loss) Income from Discontinued
Operations (2) (219) 258 (158)
Cumulative Effect of Change in
Accounting Principle, net of tax and
minority interest - - - (162)
------------ ------------ ------------ ------------
Net Income (Loss) 358 (2,021) 1,490 (1,323)
Dividends and Premiums on Redemptions
of Preferred and Preference Stock 2 2 9 15
------------ ------------ ------------ ------------
Earnings (Loss) Available for Common
Stockholders $ 356 $ (2,023) $ 1,481 $ (1,338)
============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------
CAPITALIZATION
Common Equity 45% 37%
Preferred Stock 0% 0%
------------ ------------
Total Common Equity and Preferred
Securities 45% 37%
Minority Interests 4% 5%
Total Debt (f) 51% 58%
- ---------------------------------------------------------------------------------------------------
Total Debt (f) $ 18,832 $ 21,952
Book Value Per Share $ 17.18 $ 15.09
Actual Shares Outstanding 957 911
- ---------------------------------------------------------------------------------------------------
CAPITAL AND INVESTMENT EXPENDITURES
Franchised Electric (c) $ 291 $ 206 $ 1,282 $ 997
Natural Gas Transmission 146 156 533 766
Field Services 50 117 213 211
Duke Energy North America 3 9 22 277
International Energy 4 10 28 71
Crescent (d) (e) 162 87 568 290
Other 5 67 (22) 116
------------ ------------ ------------ ------------
Total Capital and Investment
Expenditures $ 661 $ 652 $ 2,624 $ 2,728
============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------
EBIT BY BUSINESS SEGMENT
Franchised Electric $ 252 $ 197 $ 1,467 $ 1,403
Natural Gas Transmission 336 308 1,310 1,317
Field Services 128 51 380 187
Duke Energy North America 77 (3,164) (535) (3,341)
International Energy 61 40 222 215
Crescent (d) 50 72 240 134
------------ ------------ ------------ ------------
Total reportable segment EBIT 904 (2,496) 3,084 (85)
Other EBIT (21) (67) (77) (272)
Interest expense (314) (353) (1,349) (1,380)
Minority interest benefit (expense)
and other (b) 36 38 114 27
------------ ------------ ------------ ------------
Consolidated earnings (loss) from
continuing operations before income
taxes $ 605 $ (2,878) $ 1,772 $ (1,710)
============ ============ ============ ============
(a) Financing expenses related to securities of subsidiaries are accounted for
in interest expense in 2004. Minority interest includes expense related to
these securities of $55 million for the year ended December 2003.
(b) Includes interest income, foreign currency remeasurement gains and losses,
and additional minority interest not allocated to the segment results.
(c) Current year amounts include a $262 million contribution to the nuclear
decommissioning trust funds.
(d) Beginning in 2004, Crescent, formerly part of Other, is considered a
reportable segment.
(e) Capital expenditures for residential properties are included in operating
cash flows on the Consolidated Statements of Cash Flows. Capital
expenditures for commercial and multi-family properties are included in
investing cash flows on the Consolidated Statements of Cash Flows.
(f) For 2003, debt excludes approximately $890 million of debt that has been
reclassified as liabilities associated with assets held for sale.
DECEMBER 2004
QUARTERLY HIGHLIGHTS
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- -----------------------
(In millions, except where noted) 2004 2003 2004 2003
- --------------------------------------------- ---------- ---------- ---------- ----------
FRANCHISED ELECTRIC
Operating Revenues $ 1,151 $ 1,155 $ 5,069 $ 4,875
Operating Expenses 899 973 3,613 3,525
Gains on Sales of Other Assets, net - 4 3 6
Other Income, net of expenses - 11 8 47
---------- ---------- ---------- ----------
EBIT $ 252 $ 197 $ 1,467 $ 1,403
---------- ---------- ---------- ----------
Sales, GWh 18,754 19,207 82,708 82,828
- -------------------------------------------------------------------------------------------------
NATURAL GAS TRANSMISSION
Operating Revenues $ 926 $ 896 $ 3,290 $ 3,197
Operating Expenses 611 588 2,033 1,969
Gains on Sales of Other Assets, net 5 3 17 7
Other Income, net of expenses 22 8 58 125
Minority Interest Expense 6 11 22 43
---------- ---------- ---------- ----------
EBIT $ 336 $ 308 $ 1,310 $ 1,317
---------- ---------- ---------- ----------
Proportional Throughput, TBtu 865 860 3,332 3,362
- -------------------------------------------------------------------------------------------------
FIELD SERVICES (a)
Operating Revenues $ 2,906 $ 1,963 $ 10,104 $ 8,595
Operating Expenses 2,715 1,895 9,531 8,360
Gains (Loss) on Sales of Other Assets,
net 1 (4) 2 (4)
Other Income, net of expenses 20 14 37 67
Minority Interest Expense 84 27 232 111
---------- ---------- ---------- ----------
EBIT $ 128 $ 51 $ 380 $ 187
---------- ---------- ---------- ----------
Natural Gas Gathered and
Processed/Transported, TBtu/day (b) 7.3 7.3 7.3 7.4
Natural Gas Liquids Production,
MBbl/d (b) 370 353 363 353
Average Natural Gas Price per MMBtu $ 7.11 $ 4.58 $ 6.14 $ 5.39
Average Natural Gas Liquids Price per
Gallon $ 0.80 $ 0.54 $ 0.68 $ 0.53
- -------------------------------------------------------------------------------------------------
DUKE ENERGY NORTH AMERICA
Operating Revenues $ 549 $ 822 $ 2,361 $ 4,321
Operating Expenses 628 3,923 2,690 7,767
Gains (Loss) on Sales of Other Assets,
net 126 (124) (248) (208)
Other Income (Expense), net 7 (1) 12 206
Minority Interest Benefit (23) (62) (30) (107)
---------- ---------- ---------- ----------
EBIT $ 77 $ (3,164) $ (535) $ (3,341)
---------- ---------- ---------- ----------
Actual Plant Production, GWh (c) 4,288 5,376 21,884 24,046
Proportional MW Capacity in Operation 9,890 15,820
- -------------------------------------------------------------------------------------------------
INTERNATIONAL ENERGY (a)
Operating Revenues $ 172 $ 105 $ 619 $ 597
Operating Expenses 124 87 462 426
Loss on Sales of Other Assets, net (4) (2) (3) -
Other Income, net of expenses 18 26 78 57
Minority Interest Expense 1 2 10 13
---------- ---------- ---------- ----------
EBIT $ 61 $ 40 $ 222 $ 215
---------- ---------- ---------- ----------
Sales, GWh 4,688 4,022 17,776 16,374
Proportional MW Capacity in Operation 4,139 4,121
- -------------------------------------------------------------------------------------------------
CRESCENT (a)
Operating Revenues $ 220 $ 142 $ 437 $ 284
Operating Expenses 219 105 393 231
Gains on Sales of Investments in
Commercial and Multi-Family Real
Estate 43 37 192 84
Other Income, net of expenses 3 - 3 -
Minority Interest (Benefit) Expense (3) 2 (1) 3
---------- ---------- ---------- ----------
EBIT $ 50 $ 72 $ 240 $ 134
---------- ---------- ---------- ----------
- -------------------------------------------------------------------------------------------------
OTHER (a)
Operating Revenues $ 215 $ 377 $ 1,144 $ 1,628
Operating Expenses 243 466 1,257 1,933
Gains on Sales of Other Assets, net - - 4 -
Other Income, net of expenses 7 22 32 33
---------- ---------- ---------- ----------
EBIT $ (21) $ (67) $ (77) $ (272)
---------- ---------- ---------- ----------
(a) Certain prior year amounts have been reclassified due to discontinued
operations.
(b) Represents 100% of joint venture volumes.
(c) Represents 100% of GWh.
Note: See GAAP reconciliation associated with the 2004 fourth quarter Earnings
Release on the Investor Relations Web site at
http://www.duke-energy.com/investors/publications/gaap/.
DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except per-share amounts)
Years Ended
December 31,
-----------------------
2004 2003
---------- ----------
Operating Revenues $ 22,503 $ 22,080
Operating Expenses 19,456 22,818
Gains on Sales of Investments in
Commercial and Multi-Family Real Estate 192 84
Losses on Sales of Other Assets, net (225) (199)
---------- ----------
Operating Income (Loss) 3,014 (853)
---------- ----------
Other Income and Expenses 302 584
Interest Expense 1,349 1,380
Minority Interest Expense 195 61
---------- ----------
Earnings (Loss) From Continuing
Operations Before Income Taxes 1,772 (1,710)
Income Tax Expense (Benefit) from
Continuing Operations 540 (707)
---------- ----------
Income (Loss) From Continuing Operations 1,232 (1,003)
Income (Loss) From Discontinued
Operations, net of tax 258 (158)
---------- ----------
Income (Loss) Before Cumulative Effect
of Change in Accounting Principle 1,490 (1,161)
Cumulative Effect of Change in
Accounting Principle, net of tax and
minority interest - (162)
---------- ----------
Net Income (Loss) 1,490 (1,323)
Dividends and Premiums on Redemption
of Preferred and Preference Stock 9 15
---------- ----------
Earnings (Loss) Available For Common
Stockholders $ 1,481 $ (1,338)
========== ==========
Common Stock Data
Weighted-average shares outstanding
Basic 931 903
Diluted 966 903
Earnings (Loss) per share (from continuing
operations)
Basic $ 1.31 $ (1.13)
Diluted $ 1.27 $ (1.13)
Earnings (Loss) per share (from
discontinued operations)
Basic $ 0.28 $ (0.17)
Diluted $ 0.27 $ (0.17)
Earnings (Loss) per share (before
cumulative effect of change in
accounting principle)
Basic $ 1.59 $ (1.30)
Diluted $ 1.54 $ (1.30)
Earnings (Loss) per share
Basic $ 1.59 $ (1.48)
Diluted $ 1.54 $ (1.48)
Dividends per share $ 1.10 $ 1.10
DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)
December 31,
-----------------------
2004 2003
---------- ----------
ASSETS
Current Assets $ 7,971 $ 7,675
Investments and Other Assets 10,513 12,316
Net Property, Plant and Equipment 33,506 33,848
Regulatory Assets and Deferred
Debits 2,460 2,366
---------- ----------
Total Assets $ 54,450 $ 56,205
========== ==========
LIABILITIES AND COMMON STOCKHOLDERS' EQUITY
Current Liabilities $ 7,488 $ 7,698
Long-term Debt 16,932 20,622
Deferred Credits and Other Liabilities 11,969 12,302
Minority Interests 1,486 1,701
Preferred and preference stock
without sinking fund requirements 134 134
Common Stockholders' Equity 16,441 13,748
---------- ----------
Total Liabilities and Common
Stockholders' Equity $ 54,450 $ 56,205
========== ==========
DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
Years Ended
December 31,
-----------------------
2004 2003
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 1,490 $ (1,323)
Adjustments to reconcile net income
to net cash provided by
operating activities 2,649 4,725
---------- ----------
Net cash provided by
operating activities 4,139 3,402
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing ---------- ----------
activities (208) (404)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash used in financing ---------- ----------
activities (3,278) (2,657)
---------- ----------
Net increase (decrease) in cash and
cash equivalents associated with
assets held for sale 39 (55)
---------- ----------
Net increase in cash and cash
equivalents 692 286
Cash and cash equivalents at
beginning of year 1,160 874
---------- ----------
Cash and cash equivalents at end of
year $ 1,852 $ 1,160
========== ==========
Supplemental Disclosures
Quarter Ended December 31, 2004
Duke Energy Corporation
- --------------------------------------------------------------------------------
4Q04
----------
Mark-to-market Portfolio (in millions) $ (250)
Daily Earnings at Risk (DER) (in millions)
95% Confidence Level, One-Day Holding Period, Two-Tailed
As of 12/31/2004 $ 6
Duke Energy North America
- --------------------------------------------------------------------------------
(in millions unless stated otherwise) Q-T-D December 31, 2004
Proprietary Structured Owned
Merchant Energy Gross Margin Trading Contracts Assets Total
- ------------------------------------- ----------- ---------- ---------- ----------
Mark-to-market gross
margin (loss) $ 4 $ (8) $ 3 $ (1)
Accrual gross
margin N/A 3 78 81
----------- ---------- ---------- ----------
Total Gross Margin $ 4 $ (5) $ 81 80
----------- ---------- ----------
Reconciliation to Segment EBIT:
Plant depreciation (39)
Plant operating and maintenance expenses (73)
General and administrative and other expenses (47)
Minority interest 23
Other income (expense), net 7
Gains on sales of other assets, net 126
----------
DENA Segment EBIT $ 77
==========
Owned Assets - Contracted Level
- --------------------------------------------------------------------------------
2005 2006
Millions % Contracted % Contracted
Capacity Under MWs MWh ------------------ -------------------
Contract Capacity Available Capacity Energy Capacity(b) Energy
- -------------- -------- --------- -------- ------ ----------- ------
East 4,615 37(a) 17% 8% 11% 7%
West 5,275 34 25% 31% 1% 42%
-------- -------
Total 9,890 71 21% 19% 6% 24%
(a) East capacity includes 7 million MWh from peaking facilities but does not
include any capacity for plants where we own an equity interest only.
(b) Capacity does not include Regulatory Must Run ("RMR") elections for 2006,
scheduled to occur in September 2005.
Supplemental Disclosures
Quarter Ended December 31, 2004
Terms of Reference
- --------------------------------------------------------------------------------
MWs Capacity
Represents the official rated capacity of DENA's percentage ownership of its
merchant assets excluding Bayside which has been classified as discontinued
operations.
Millions MWhs Available
Represents the amount of electric power capable of being generated from owned
merchant assets, after adjusting for scheduled maintenance and outage factors.
For simple cycle facilities, only peak demand periods were included in this
calculation.
% Contracted:
Capacity: Volumes contracted under tolls as well as volumes from Regulatory Must
Run ("RMR") facilities and Canadian facilities.
Energy: Volumes sold as forward power hedges.
Owned Assets
Represents activity around energy assets owned or leased, including hedges of
power sales and fuel purchase requirements and tolls, transmission,
transportation and storage contracts that hedge owned assets. Normal purchases
and sales associated with such assets are included in the Merchant Energy Gross
Margin table. Economic hedges of Owned Assets that do not meet hedge accounting
standards will still be classified as Owned Assets in the Merchant Energy Gross
Margin table.
Proprietary Trading
Standardized contracts entered into to take a market view, capture market price
changes or put capital at risk.
Structured Contracts
Contracts not associated with owned or leased assets and involving significant
tailoring of terms to meet customer needs, and associated hedges. Disqualified
hedges previously categorized as owned assets are also in this category.
Contract types include tolls, transmission, transportation and storage
contracts, except those that qualify as hedges of Owned Assets. Economic hedges
of Structured Contracts that do not meet hedge accounting standards will still
be classified as Structured Contracts in the Merchant Energy Gross Margin table.
Duke Energy Corporation
Quarterly Highlights
Supplemental Franchised Electric Information
December 31, 2004
Quarter Ended
December 31,
---------------------------------------
%
2004 2003 Inc.(Dec.)
----------- ----------- -----------
GWH Sales
Residential 5,074 5,036 0.8%
General Service 5,788 5,686 1.8%
Industrial - Textile 1,757 1,761 (0.2)%
Industrial - Other 4,523 4,220 7.2%
----------- ----------- -----------
Total Industrial 6,280 5,981 5.0%
Other Energy Sales 68 66 3.0%
Regular Resale 335 326 2.8%
----------- ----------- -----------
Total Regular Sales Billed 17,545 17,095 2.6%
Special Sales (A) 541 1,383 (60.9)%
----------- ----------- -----------
Total Electric Sales 18,086 18,478 (2.1)%
Unbilled Revenue 342 402 (14.9)%
----------- ----------- -----------
Total Duke Power Electric Sales 18,428 18,880 (2.4)%
Nantahala Electric Sales 326 327 (0.3)%
----------- ----------- -----------
Total DP Consolidated Electric
Sales 18,754 19,207 (2.4)%
=========== =========== ===========
Average Number of Customers
Residential 1,817,814 1,786,074 1.8%
General Service 306,806 301,089 1.9%
Industrial - Textile 828 895 (7.5)%
Industrial - Other 6,701 6,726 (0.4)%
----------- ----------- -----------
Total Industrial 7,529 7,621 (1.2)%
Other Energy Sales 12,900 11,465 12.5%
Regular Resale 15 16 (6.3)%
----------- ----------- -----------
Total Regular Sales 2,145,064 2,106,265 1.8%
Special Sales (A) 22 37 (40.5)%
----------- ----------- -----------
Total Duke Power Electric Sales 2,145,086 2,106,302 1.8%
Nantahala Electric Sales 67,537 66,164 2.1%
----------- ----------- -----------
Total DP Average Number of
Customers 2,212,623 2,172,466 1.8%
=========== =========== ===========
(A) Excludes Sales to Nantahala
Power and Light Company
Heating and Cooling Degree Days
Actual
Heating Degree Days 1,165 1,242 (6.2)%
Cooling Degree Days 40 24 66.7%
Variance from Normal
Heating Degree Days (7.2)% (1.7)% n/a
Cooling Degree Days 58.8% (4.9)% n/a
Duke Energy Corporation
Quarterly Highlights
Supplemental Franchised Electric Information
December 31, 2004
Year To Date
December 31,
---------------------------------------
%
2004 2003 Inc.(Dec.)
----------- ----------- -----------
GWH Sales
Residential 24,543 23,355 5.1%
General Service 24,775 23,933 3.5%
Industrial - Textile 7,147 7,562 (5.5)%
Industrial - Other 17,938 17,083 5.0%
----------- ----------- -----------
Total Industrial 25,085 24,645 1.8%
Other Energy Sales 267 268 (0.4)%
Regular Resale 1,467 1,377 6.5%
----------- ----------- -----------
Total Regular Sales Billed 76,137 73,578 3.5%
Special Sales (A) 5,385 7,622 (29.3)%
----------- ----------- -----------
Total Electric Sales 81,522 81,200 0.4%
Unbilled Revenue (56) 412 (113.6)%
----------- ----------- -----------
Total Duke Power Electric Sales 81,466 81,612 (0.2)%
Nantahala Electric Sales 1,242 1,216 2.1%
----------- ----------- -----------
Total DP Consolidated Electric
Sales 82,708 82,828 (0.1)%
=========== =========== ===========
Average Number of Customers
Residential 1,805,232 1,776,415 1.6%
General Service 304,706 298,633 2.0%
Industrial - Textile 852 911 (6.5)%
Industrial - Other 6,681 6,806 (1.8)%
----------- ----------- -----------
Total Industrial 7,533 7,717 (2.4)%
Other Energy Sales 12,177 11,375 7.1%
Regular Resale 15 16 (6.3)%
----------- ----------- -----------
Total Regular Sales 2,129,663 2,094,156 1.7%
Special Sales (A) 34 38 (10.5)%
----------- ----------- -----------
Total Duke Power Electric Sales 2,129,697 2,094,194 1.7%
Nantahala Electric Sales 66,995 65,607 2.1%
----------- ----------- -----------
Total DP Average Number of
Customers 2,196,692 2,159,801 1.7%
=========== =========== ===========
(A) Excludes Sales to Nantahala
Power and Light Company
Heating and Cooling Degree Days
Actual
Heating Degree Days 3,259 3,346 (2.6)%
Cooling Degree Days 1,440 1,158 24.4%
Variance from Normal
Heating Degree Days 2.6% 4.8% n/a
Cooling Degree Days (0.8)% (19.1)% n/a
DUKE ENERGY CORPORATION
TWELVE MONTHS ENDED DECEMBER 31, 2004
ONGOING BASIC EARNINGS PER SHARE
(amounts in millions, except EPS)
PRE-TAX AMOUNT TAX EFFECT BASIC EPS IMPACT
--------------- ---------- ----------------
Special Items:
First Quarter 2004
------------------
- Gain on sale of Australian assets $ 256 $ (18) $ 0.26
- Net loss on sale of DENA assets, primarily anticipated sale of
southeast U.S. plants (359) 134 (0.25)
- Gains on sale of other assets, including Caribbean Nitrogen Co. 14 (5) 0.01
- Charge related to planned sale of Cantarell investment (13) 5 (0.01)
----------------
subtotal first quarter 2004 0.01
----------------
Second Quarter 2004
-------------------
- Enron settlement (net of minority interest of $5 million) 130 (46) 0.09
- True up on net gain on sale of International Energy Assets 38 (9) 0.03
- California and western U.S. energy markets settlement (105) 37 (0.07)
- Net losses on asset sales (net of minority interests of $6 million) (8) 3 0.00
- Interest on related litigation reserve (12) 4 (0.01)
----------------
subtotal second quarter 2004 0.04
----------------
Third Quarter 2004
------------------
- Tax benefit from restructuring 0 48 0.05
- Asset impairments, losses on asset sales and write down of equity
investment at DEFS (net of minority interest of $26 million) (42) 16 (0.03)
- Net gains on asset sales 4 (2) 0.00
- Tax true up on sale of Australian assets 0 5 0.01
----------------
subtotal third quarter 2004 0.03
----------------
Fourth Quarter 2004
-------------------
- Adjustment to captive insurance reserve 64 (22) 0.04
- Net gain on sales of equity investments 10 (3) 0.01
- Loss on asset exchanges (7) 2 0.00
- Early contract termination charges (20) 7 (0.01)
- Net gains on asset sales (net of minority interest of $20 million) 148 (51) 0.10
----------------
subtotal fourth quarter 2004 0.14
----------------
Impact of changes in shares outstanding (0.01)
----------------
Total Basic EPS impact of special items year-to-date 0.21
Year-to-date Basic EPS, as reported 1.59
----------------
Year-to-date Basic EPS, ongoing $ 1.38
================
DUKE ENERGY CORPORATION
TWELVE MONTHS ENDED DECEMBER 31, 2003
ONGOING BASIC EARNINGS PER SHARE
(amounts in millions, except EPS)
PRE-TAX AMOUNT TAX EFFECT BASIC EPS IMPACT
--------------- ---------- ----------------
Special Items:
First Quarter 2003
------------------
- Cumulative effect of change in accounting principle $ (256) $ 94 $ (0.18)
- Net gains on asset sales 16 (5) 0.01
----------------
subtotal first quarter 2003 (0.17)
----------------
Second Quarter 2003
-------------------
- Net gains on asset sales (net of minority interest expense
of $8 million) 229 (83) 0.16
----------------
subtotal second quarter 2003 0.16
----------------
Third Quarter 2003
------------------
- Tax benefit on 2002 goodwill impairment of International
Energy European gas trading 0 52 $ 0.06
- Net loss on asset sales (71) 28 (0.05)
- DENA goodwill write-off (254) 90 (0.18)
- Severance cost associated with work force reduction (105) 37 (0.08)
- Settlement with the S. C. Public Service Commission (46) 18 (0.03)
- Settlement with the Commodity Futures Trading Commission
(net of minority interest of $11 million) (17) 0 (0.02)
----------------
subtotal third quarter 2003 (0.30)
----------------
Fourth Quarter 2003
-------------------
- DENA plant impairments and DETM charges (net of minority
interest of $51 million) (2,826) 1,046 (1.97)
- DENA redesignation of hedging contracts to mark-to-market (262) 97 (0.18)
- Charges and impairments for Australia and Europe (292) 69 (0.25)
- Severance cost associated with work force reduction (48) 18 (0.03)
- Tax adjustments -- 23 0.03
- DEI reserves and charges for environmental settlements in
Brazil (26) 10 (0.02)
- Write-off of risk management system (51) 19 (0.04)
- Net gains on asset sales (net of minority interest of $1
million) 15 (6) 0.01
----------------
subtotal fourth quarter 2003 (2.45)
----------------
Total Basic EPS impact of special items year-to-date (2.76)
Year-to-date Basic EPS, as reported (1.48)
----------------
Year-to-date Basic EPS, ongoing $ 1.28
================
DUKE ENERGY
REPORTED TO ONGOING SEGMENT EBIT RECONCILIATION
December 2003 Quarter and Year-to-date
(Dollars in Millions)
SPECIAL ITEMS
----------------------------------------------------------------------
DENA
DENA PLANT REDESIGNATION
GAINS (LOSSES) IMPAIRMENTS OF HEDGING
ONGOING ON SALES OF AND DETM DENA GOODWILL CONTRACTS TO
EARNINGS ASSETS CHARGES WRITE-OFF MARK-TO-MARKET
--------- -------------- ----------- ------------- --------------
EARNINGS BEFORE INTEREST AND TAXES
FROM CONTINUING OPERATIONS
December 2003 Quarter-to-Date
- -----------------------------
Franchised Electric $ 226 $ 3 $ - $ - $ -
Gas Transmission 303 16 D - - -
Field Services 58 (3) A - - -
Duke Energy North America (77) 6 (2,826) B,G - (262) H
International Energy 68 (2) - - -
Crescent 72 - - - -
December 2003 Year-to-Date
- --------------------------
Franchised Electric $ 1,505 $ 6 $ - $ - $ -
Gas Transmission 1,253 93 E - - -
Field Services 183 8 A,F - - -
Duke Energy North America (72) 100 (2,826) B,G (254) (262) H
International Energy 244 - - - -
Crescent 134 - - - -
SPECIAL ITEMS
-----------------------------------------------------------------------------
SEVERANCE AND SETTLEMENT
RELATED COSTS WITH THE
ASSOCIATED SETTLEMENT COMMODITY
ENVIRONMENTAL WITH WORK WITH THE S.C. FUTURES
SETTLEMENTS IN FORCE PUBLIC SERVICE TRADING REPORTED
BRAZIL REDUCTION COMMISSION COMMISSION TOTAL SEGMENT EBIT
-------------- ------------- -------------- ---------- --------- ------------
EARNINGS BEFORE INTEREST AND TAXES
FROM CONTINUING OPERATIONS
December 2003 Quarter-to-Date
- -----------------------------
Franchised Electric $ - $ (32) $ - $ - $ (29) $ 197
Gas Transmission - (11) - - 5 308
Field Services - (4) - - (7) 51
Duke Energy North America - (5) - - (3,087) (3,164)
International Energy (26) - - - (28) 40
Crescent - - - - - 72
December 2003 Year-to-Date
- --------------------------
Franchised Electric $ - $ (78) $ (30) $ - $ (102) $ 1,403
Gas Transmission - (29) - - 64 1,317
Field Services - (4) - - 4 187
Duke Energy North America - (10) - (17) C (3,269) (3,341)
International Energy (26) (3) - - (29) 215
Crescent - - - - - 134
A - Including minority interest benefit of $1 million.
B - Net of minority interest of $51 million.
C - Net of minority interest of $11 million.
D - $13 million recorded in gains (losses) on sales and impairments of equity
investments and $3 million recorded in gains (losses) on sales of other
assets, net.
E - $89 million recorded in gains (losses) on sales and impairments of equity
investments and $4 million recorded in gains (losses) on sales of other
assets, net.
F - $11 million recorded in gains (losses) on sales and impairments of equity
investments and $(3) million, net of minority interest benefit of
$1 million, recorded in gains (losses) on sales of other assets.
G - $(2,641) million recorded in impairments and other related charges,
$(76) million recorded in gains (losses) on sales of other assets, net
(net of minority interest of $51 million), and $(109) million recorded in
operation and maintenance expense.
H - Recorded in impairment and other related charges.
DUKE ENERGY
REPORTED TO ONGOING SEGMENT AND OTHER EBIT RECONCILIATION
December 2004 Quarter and Year-to-date
(Dollars in Millions)
Special Items
---------------------------------------------------------------------
Gains
Gains (Losses)on Impairment Early Enron/
(Losses) Sales of and Other Contract California
Ongoing on Sales Equity Related Termination Settlements,
Earnings of Assets Investments Charges Charges net
-------- --------- ----------- ---------- ----------- ------------
EARNINGS BEFORE INTEREST AND TAXES
FROM CONTINUING OPERATIONS
December 2004 Quarter-to-Date
- -----------------------------
EBIT BY BUSINESS SEGMENT
Franchised Electric $ 252 $ - $ - $ - $ - $ -
Gas Transmission 321 4 11 - - -
Field Services 128 - - - - -
Duke Energy North America (50) 146 A - 1 (20) B -
International Energy 64 (3) - - - -
Crescent 50 - - - - -
Other (80) - (1) - - -
December 2004 Year-to-Date
- --------------------------
Franchised Electric $ 1,464 $ 3 $ - $ - $ - $ -
Gas Transmission 1,278 16 16 - - -
Field Services 404 1 D (16) E (10) F - 1 B
Duke Energy North America (288) (228) G - (2) (20) B 3 B,H
International Energy 236 (2) 1 (13) B - -
Crescent 240 - - - - -
Other (164) 4 2 - - 21 B
Special Items
-------------------------------------------
Adjustment to
Captive Reported
Loss on Asset Insurance Segment
Exchanges Reserves Total EBIT
-------------- ------------- --------- --------
EARNINGS BEFORE INTEREST AND TAXES
FROM CONTINUING OPERATIONS
December 2004 Quarter-to-Date
- -----------------------------
EBIT BY BUSINESS SEGMENT
Franchised Electric $ - $ - $ - $ 252
Gas Transmission - - 15 336
Field Services - - - 128
Duke Energy North America - - 127 77
International Energy - - (3) 61
Crescent - - - 50
Other (4) C 64 B 59 (21)
December 2004 Year-to-Date
- --------------------------
Franchised Electric $ - $ - $ 3 $ 1,467
Gas Transmission - - 32 1,310
Field Services - - (24) 380
Duke Energy North America - - (247) (535)
International Energy - - (14) 222
Crescent - - - 240
Other (4) C 64 B 87 (77)
A - Including minority interest benefit of $20 million.
B - Recorded in operation and maintenance expense.
C - Recorded in other income and expenses, net.
D - Net of minority interest of $1 million.
E - Including minority interest benefit of $7 million.
F - Net of minority interest of $12 million.
G - $(222) million recorded in gains (losses) on sales of other assets, net
(including minority interest benefit of $26 million) and $(6) million
recorded in operation and maintenance expense.
H - Net of minority interest of $5 million.
SOURCE Duke Energy
-0- 02/02/2005
/CONTACT: Media, Randy Wheeless, +1-704-382-8379, or 24-Hour,
+1-704-382-8333, or Analysts, Julie Dill, +1-980-373-4332, both of Duke Energy/
/Photo: http://www.newscom.com/cgi-bin/prnh/20040414/DUKEENERGYLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com /
/Company News On-Call: http://www.prnewswire.com/comp/257451.html /
/Web site: http://www.duke-energy.com
http://www.duke-energy.com/investors
http://www.duke-energy.com/investors/publications/gaap /
(DUK)