Exhibit 99
DUKE ENERGY REPORTS FIRST QUARTER 2005 RESULTS
- Reported basic earnings per share of 91 cents versus 34 cents in previous
year; 44 cents in ongoing basic EPS versus 34 cents in prior year's
quarter
- Field Services results led by strong operations and one-time gains
- Improved operations and minimized mark-to-market movement help DENA cut
losses significantly
- Reduced debt lowers interest expense by $63 million
CHARLOTTE, N.C., May 4 /PRNewswire-FirstCall/ -- Duke Energy (NYSE: DUK)
today reported first quarter 2005 basic earnings per share (EPS) of $0.91, or
$868 million in net income, compared to $0.34 per share in first quarter 2004,
or $311 million. On a diluted basis, first quarter 2005 earnings were $0.88 per
share, compared to $0.33 in first quarter 2004.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040414/DUKEENERGYLOGO )
Ongoing basic EPS for first quarter 2005, which excludes special items,
was $0.44 versus $0.34 in first quarter 2004. On a diluted basis, ongoing EPS
for first quarter 2005 was $0.43 compared to $0.32 in first quarter 2004.
"It was a great quarter and reflects the actions we took last year to
strengthen all our businesses," said Paul Anderson, Duke Energy chairman of the
board and chief executive officer. "The effort we undertook to cut debt in 2004
is showing real results as we reduced interest expense by $63 million."
Anderson said that Duke Energy North America continued to reduce losses
while Field Services had a strong quarter, and International Energy increased
its earnings.
Special items impacting basic EPS for the quarter include:
2005 2004
Pre-Tax Tax EPS EPS
($ in Millions) Amount Effect Impact Impact
- -------------------------------------------- ------------ ------------ ------------ ------------
First quarter 2005
- - Gain on sale of TEPPCO GP, net of
minority interest of $343 million $ 791 $ (293) $ 0.52 --
- - Gain on sale of TEPPCO L.P. units 97 (36) 0.07 --
- - Loss on de-designation of Field Services'
hedges as a result of the announced
transaction with ConocoPhillips (118) 44 (0.08) --
- - Mark-to-market losses on de-designated
2005 Field Services' hedges (54) 19 (0.03) --
- - Mutual insurance liability adjustment (28) 10 (0.02) --
- - Gain on sale of Grays Harbor 21 (8) 0.01 --
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) 126 -- (0.26)
- - 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)
Total basic EPS impact $ 0.47 $ 0.00
Basic EPS, as reported $ 0.91 $ 0.34
Basic EPS, ongoing * $ 0.44 $ 0.34
* Includes results from operations in International Energy and Field
Services that have been discontinued.
BUSINESS UNIT RESULTS
Franchised Electric
First quarter 2005 segment EBIT for Franchised Electric was $336 million,
compared to 2004 segment EBIT of $424 million. The decrease was driven by milder
winter weather compared to 2004 and higher operating and maintenance expenses
resulting from the timing of planned power plant maintenance and outages.
Earnings were also lower due to Duke Power's bulk power marketing (BPM)
profit-sharing program, which did not begin in North Carolina and South Carolina
until second quarter 2004. Regulatory amortization expenses for the quarter were
$85 million versus $69 million in first quarter 2004.
The impact of continued economic development activity led to industrial
sales rising approximately 6 percent from the previous year's quarter.
Franchised Electric also had almost 45,000, or about 2 percent, more customers
than in first quarter 2004.
Natural Gas Transmission
Duke Energy Gas Transmission (DEGT) reported first quarter 2005 segment EBIT
of $407 million, compared to $398 million in first quarter 2004. The increase
was due primarily to U.S. business expansions and the strengthening Canadian
currency. This was partially offset by the implementation of a new
earnings-sharing mechanism at Union Gas in Canada.
The favorable Canadian currency impacts on DEGT's EBIT were partially offset
in Duke Energy's consolidated net income by currency impacts on Canadian
interest and taxes.
Field Services
The Field Services business segment, which currently represents Duke
Energy's 70-percent interest in Duke Energy Field Services (DEFS), reported
first quarter 2005 segment EBIT from continuing operations of $921 million
compared to $91 million from continuing operations in first quarter 2004.
The increase was due to pre-tax gains realized on the sale of DEFS' TEPPCO
GP of about $791 million, net of minority interest of about $343 million, and
the sale of Duke Energy's TEPPCO LP units of $97 million. Also during the
quarter, as a result of the anticipated deconsolidation of DEFS, Field Services
recognized a net charge of $118 million related to the de-designation of hedges
from accrual to mark-to-market accounting.
Ongoing EBIT for Field Services for first quarter 2005, absent special
items, was $151 million versus $91 million in first quarter 2004. Ongoing
results for the quarter were positively impacted by higher commodity prices,
partially offset by higher operating costs.
Duke Energy North America
Duke Energy North America (DENA) reported a segment EBIT loss of $35 million
in first quarter 2005, compared to segment EBIT loss of $557 million in first
quarter 2004.
The improved results were driven by the absence of a $359 million pre-tax
loss on the sale of assets recorded in first quarter 2004 and the absence of an
$87 million mark-to-market loss, net of minority interest of $6 million, during
the same quarter. The significant reduction in mark-to-market losses is the
direct result of the successful efforts made over the last year to decrease the
earnings volatility associated with this portfolio.
Results in first quarter 2005 also benefited from higher gross margins from
energy generation, lower operating and depreciation expenses and a $21 million
pre-tax gain on the sale of DENA's Grays Harbor facility in Washington.
International Energy
For first quarter 2005, Duke Energy International (DEI) reported segment
EBIT from continuing operations of $68 million, compared to $29 million in first
quarter 2004. The increase was positively affected by strong results in Brazil,
Guatemala and Peru; continued positive results at National Methanol; and the
absence of a $13 million charge related to the sale of DEI's ownership share of
the Cantarell plant in Mexico in first quarter 2004.
Crescent Resources
Crescent Resources reported first quarter 2005 segment EBIT of $52 million,
compared to $60 million in the previous year's quarter. The difference was
primarily due to lower commercial sales in first quarter 2005 which were
partially offset by higher residential lot and land sales.
Other
Other, which includes the cost of corporate governance, DukeNet
Communications, the company's 50-percent interest in Duke/Fluor Daniel, Duke
Energy Merchants, Duke Energy's captive insurance company Bison Insurance Co.
Limited (Bison) and the change in value of the de-designated hedges from Field
Services, reported an EBIT loss of $169 million in first quarter 2005, compared
to a loss of $5 million in first quarter 2004. Included in this quarter's
results is the change in the mark-to-market value of the hedges from Field
Services from the time of the de-designation at Feb. 22, 2005, to the end of the
quarter. Of this amount, approximately $54 million relates to the 2005 contracts
and approximately $56 million relates to the 2006 contracts. Additionally, there
was a $28 million charge in first quarter 2005 for a mutual insurance liability
adjustment incurred by Bison.
Ongoing EBIT loss for Other for first quarter 2005, absent special items,
was $87 million versus a loss of $19 million for first quarter 2004. This
difference is primarily due to the $56 million of mark-to-market losses on the
de-designated hedges for 2006 from the date of de-designation to the end of the
quarter.
Discontinued Operations
The operations reported as discontinued showed a first quarter 2005 gain of
$1 million, compared to $246 million in 2004, which included a $238 million
gain, net of tax, on the sale of the Australian assets.
INTEREST EXPENSE
Interest expense was $293 million for first quarter 2005, compared to $356
million for first quarter 2004 due to the company's aggressive efforts to reduce
overall debt.
INCOME TAX
First quarter 2005 income tax expense from continuing operations was $447
million, compared to $33 million in first quarter 2004. The increase was due to
higher pretax earnings, primarily as a result of the gains realized on the sale
of DEFS' TEPPCO GP and Duke Energy's TEPPCO LP units.
LIQUIDITY AND CAPITAL RESOURCES
Duke Energy's consolidated capital structure at the end of first quarter
2005, including short-term debt, was 50 percent debt, 45 percent common equity
and 5 percent minority interests. The company had approximately $2.07 billion in
cash, cash equivalents and short-term investments at the end of first quarter
2005.
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 first quarter 2005 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 and diluted EPS, which are
non-GAAP financial measures as they represent basic and diluted EPS adjusted for
the impact of special items, as two of the measures to evaluate operations of
the company. Special items represent certain charges and credits which
management believes will not be recurring on a regular basis. Management
believes that the presentation of ongoing basic and diluted 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
measures for ongoing basic and diluted EPS are reported basic and diluted EPS,
which include the impact of special items. Due to the forward-looking nature of
ongoing basic and diluted EPS for future periods, information to reconcile such
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. When used for future periods, ongoing
segment EBIT may also include any amounts that may be reported as discontinued
operations. Ongoing segment EBIT is a non-GAAP financial measure as it
represents reported segment EBIT adjusted for special items. Management believes
that the presentation of ongoing segment EBIT 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.
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:
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 800/946-0786 in the
United States or 719/457-2662 outside the United States. The confirmation code
is 5588174. Please call in five to 10 minutes prior to the scheduled start time.
A replay of the conference call will be available until May 13, 2005, midnight
ET, by dialing 888/203-1112 with a confirmation code of 5588174. The
international replay number is 719/457-0820, confirmation code 5588174. 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/publications/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 which 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. Those
factors include: the effect of accounting pronouncements issued periodically by
accounting standard-setting bodies; the outcomes of litigation and regulatory
investigations, proceedings or inquiries and other contingencies; 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; 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.
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.
MARCH 2005
QUARTERLY HIGHLIGHTS
(Unaudited)
Three Months Ended
March 31,
----------------------------
(In millions, except where noted) 2005 2004
- -------------------------------------------- ------------ ------------
COMMON STOCK DATA
Earnings Per Share (from
continuing operations)
Basic $ 0.91 $ 0.07
Diluted $ 0.88 $ 0.07
Earnings Per Share (from
discontinued operations)
Basic $ - $ 0.27
Diluted $ - $ 0.26
Earnings Per Share
Basic $ 0.91 $ 0.34
Diluted $ 0.88 $ 0.33
Dividends Per Share $ 0.275 $ 0.275
Weighted-Average Shares Outstanding
Basic 954 912
Diluted 990 947
- ---------------------------------------------------------------------------
INCOME
Operating Revenues $ 5,749 $ 5,636
============ ============
Total Reportable Segment EBIT 1,749 445
Other EBIT (169) (5)
Interest Expense 293 356
Interest Income and Other (a) (27) (14)
Income Tax Expense from Continuing
Operations 447 33
Income from Discontinued Operations 1 246
------------ ------------
Net Income 868 311
Dividends and Premiums on Redemption
of Preferred and Preference Stock 2 2
------------ ------------
Earnings Available for Common
Stockholders $ 866 $ 309
============ ============
- ---------------------------------------------------------------------------
CAPITALIZATION
Common Equity 45% 37%
Preferred Stock 0% 0%
------------ ------------
Total Common Equity and Preferred
Securities 45% 37%
Minority Interests 5% 5%
Total Debt 50% 58%
- ---------------------------------------------------------------------------
Total Debt $ 18,590 $ 21,798
Book Value Per Share $ 17.76 $ 15.28
Actual Shares Outstanding 928 914
- ---------------------------------------------------------------------------
CAPITAL AND INVESTMENT EXPENDITURES
Franchised Electric $ 227 $ 262
Natural Gas Transmission 96 154
Field Services 49 25
Duke Energy North America 3 9
International Energy 4 8
Crescent 140 162
Other 3 18
------------ ------------
Total Capital and Investment
Expenditures $ 522 $ 638
============ ============
- ---------------------------------------------------------------------------
EBIT BY BUSINESS SEGMENT
Franchised Electric $ 336 $ 424
Natural Gas Transmission 407 398
Field Services 921 91
Duke Energy North America (35) (557)
International Energy 68 29
Crescent 52 60
------------ ------------
Total reportable segment EBIT 1,749 445
Other EBIT (169) (5)
Interest expense (293) (356)
Interest Income and Other (a) 27 14
------------ ------------
Consolidated earnings from continuing
operations before income taxes $ 1,314 $ 98
============ ============
(a) Other includes foreign currency remeasurement gains and losses and
additional minority interest not allocated to the segment results.
MARCH 2005
QUARTERLY HIGHLIGHTS
(Unaudited)
Three Months Ended
March 31,
----------------------------
(In millions, except where noted) 2005 2004
- -------------------------------------------- ------------ ------------
FRANCHISED ELECTRIC
Operating Revenues $ 1,265 $ 1,271
Operating Expenses 931 851
Gains on Sales of Other Assets,
net 1 -
Other Income, net of expenses 1 4
------------ ------------
EBIT $ 336 $ 424
------------ ------------
Sales, GWh 21,163 21,963
- ---------------------------------------------------------------------------
NATURAL GAS TRANSMISSION
Operating Revenues $ 1,175 $ 1,038
Operating Expenses 776 638
Gains on Sales of Other Assets,
net 2 -
Other Income, net of expenses 14 6
Minority Interest Expense 8 8
------------ ------------
EBIT $ 407 $ 398
------------ ------------
Proportional Throughput, TBtu 1,056 1,089
- ---------------------------------------------------------------------------
FIELD SERVICES (a)
Operating Revenues $ 2,674 $ 2,353
Operating Expenses 2,586 2,228
Gains on Sales of Other Assets,
net 2 -
Other Income, net of expenses 1,251 18
Minority Interest Expense 420 52
------------ ------------
EBIT $ 921 $ 91
------------ ------------
Natural Gas Gathered and
Processed/Transported, TBtu/day (b) 7.1 7.2
Natural Gas Liquids Production,
MBbl/d (b) 365 353
Average Natural Gas Price per
MMBtu $ 6.27 $ 5.69
Average Natural Gas Liquids Price
per Gallon $ 0.73 $ 0.59
- ---------------------------------------------------------------------------
DUKE ENERGY NORTH AMERICA
Operating Revenues $ 468 $ 624
Operating Expenses 538 841
Gains (Loss) on Sales of Other
Assets, net 28 (352)
Other Income (Expense), net 1 (2)
Minority Interest Benefit (6) (14)
------------ ------------
EBIT $ (35) $ (557)
------------ ------------
Actual Plant Production, GWh (c) 3,956 5,461
Proportional MW Capacity in
Operation 9,890 15,821
- ---------------------------------------------------------------------------
INTERNATIONAL ENERGY (a)
Operating Revenues $ 168 $ 154
Operating Expenses 119 131
Other Income, net of expenses 21 9
Minority Interest Expense 2 3
------------ ------------
EBIT $ 68 $ 29
------------ ------------
Sales, GWh 4,535 4,564
Proportional MW Capacity in
Operation 4,139 4,121
- ---------------------------------------------------------------------------
CRESCENT
Operating Revenues $ 65 $ 38
Operating Expenses 52 36
Gains on Sales of Investments in
Commercial and Multi-Family Real
Estate 42 59
Minority Interest Expense 3 1
------------ ------------
EBIT $ 52 $ 60
------------ ------------
- ---------------------------------------------------------------------------
OTHER
Operating Revenues $ 40 $ 344
Operating Expenses 210 387
Gains on Sales of Other Assets,
net - 14
Other Income, net of expenses 1 24
------------ ------------
EBIT $ (169) $ (5)
------------ ------------
(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 2005 first 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)
Three Months Ended
March 31,
----------------------------
2005 2004
------------ ------------
Operating Revenues $ 5,749 $ 5,636
Operating Expenses 5,106 4,925
Gains on Sales of Investments in
Commercial and Multi-Family Real
Estate 42 59
Gains (Losses) on Sales of Other
Assets, net 33 (338)
------------ ------------
Operating Income 718 432
------------ ------------
Other Income and Expenses 1,305 60
Interest Expense 293 356
Minority Interest Expense 416 38
------------ ------------
Earnings From Continuing Operations
Before Income Taxes 1,314 98
Income Tax Expense from Continuing
Operations 447 33
------------ ------------
Income From Continuing Operations 867 65
Income From Discontinued Operations,
net of tax 1 246
------------ ------------
Net Income 868 311
Dividends and Premiums on Redemption
of Preferred and Preference Stock 2 2
------------ ------------
Earnings Available For Common
Stockholders $ 866 $ 309
============ ============
Common Stock Data
Weighted-average shares outstanding
Basic 954 912
Diluted 990 947
Earnings per share (from continuing
operations)
Basic $ 0.91 $ 0.07
Diluted $ 0.88 $ 0.07
Earnings per share (from
discontinued operations)
Basic $ - $ 0.27
Diluted $ - $ 0.26
Earnings per share
Basic $ 0.91 $ 0.34
Diluted $ 0.88 $ 0.33
Dividends per share $ 0.275 $ 0.275
DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)
March 31, December 31,
2005 2004
------------ ------------
ASSETS
Current Assets $ 8,277 $ 7,971
Investments and Other Assets 11,732 11,533
Net Property, Plant and Equipment 33,391 33,506
Regulatory Assets and Deferred
Debits 2,508 2,460
------------ ------------
Total Assets $ 55,908 $ 55,470
============ ============
LIABILITIES AND COMMON STOCKHOLDERS'
EQUITY
Current Liabilities $ 7,121 $ 7,538
Long-term Debt 16,934 16,932
Deferred Credits and Other
Liabilities 13,338 12,939
Minority Interests 1,897 1,486
Preferred and preference stock
without sinking fund requirements 134 134
Common Stockholders' Equity 16,484 16,441
------------ ------------
Total Liabilities and Common
Stockholders' Equity $ 55,908 $ 55,470
============ ============
DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
Three Months Ended
March 31,
----------------------------
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 868 $ 311
Adjustments to reconcile net income
to net cash provided by
operating activities (68) 759
------------ ------------
Net cash provided by
operating activities 800 1,070
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash provided by (used
in) investing activities 989 (326)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash used in financing
activities (1,320) (476)
------------ ------------
Changes in cash and cash
equivalents associated with assets
held for sale (1) (31)
------------ ------------
Net increase in cash and cash
equivalents 468 237
Cash and cash equivalents at
beginning of period 533 397
------------ ------------
Cash and cash equivalents at end of
period $ 1,001 $ 634
============ ============
Supplemental Disclosures
Quarter Ended March 31, 2005
Duke Energy Corporation
- --------------------------------------------------------------------------------
1Q05
------------
Mark-to-market Portfolio (in millions) $ (368)
- --------------------------------------
Daily Earnings at Risk (DER) (in millions)
- ------------------------------------------
95% Confidence Level, One-Day Holding Period,
Two-Tailed as of 03/31/2005 $ 4(a)
(a) This figure excludes effects of the February 22, 2005 de-designation of
certain hedges of Field Services' commodity risk, which have been
retained as undesignated derivatives.
Duke Energy North America
- --------------------------------------------------------------------------------
Q-T-D
March 31,
(in millions unless stated otherwise) 2005
- -------------------------------------------------- ------------
Total Gross Margin $ 59
Reconciliation to
Segment EBIT:
Plant depreciation (39)
Plant operating and maintenance expenses (54)
General and administrative and other expenses (36)
Minority interest 6
Other income, net 1
Gain on sales of other assets, net 28
------------
DENA Segment EBIT $ (35)
============
Owned Assets - Contracted Level
- -------------------------------
Remaining 2005 2006
--------------------------------- ---------------------------------
Millions % Contracted Millions % Contracted
MWs MWh -------------------- MWh --------------------
Region Capacity Available Capacity Energy Available Capacity (c) Energy
- ---------- -------- --------- -------- -------- --------- -------- --------
East 4,615 28(b) 16% 6% 37(b) 11% 7%
West 5,275 26 37% 34% 34 12% 34%
-------- --------- ---------
Total 9,890 54 26% 20% 71 11% 20%
(b) East capacity includes 5 million MWh from peaking facilities in 2005 and
6.5 million in 2006 and excludes plants where we own a non- controlling
equity interest only.
(c) Capacity does not include Regulatory Must Run ("RMR") elections for
2006, scheduled to occur in late 2005.
Supplemental Disclosures
Quarter Ended March 31, 2005
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 Regulatory Must Run
("RMR") and Canadian facilities.
Energy: Volumes sold as forward power hedges.
Duke Energy Corporation
Quarterly Highlights
Supplemental Franchised Electric Information
March 31, 2005
Year To Date Ended
March 31,
------------------------------------------
%
2005 2004 Inc.(Dec.)
------------ ------------ ------------
GWH Sales
Residential 6,924 7,031 (1.5)%
General Service 5,887 5,797 1.6%
Industrial - Textile 1,575 1,615 (2.5)%
Industrial - Other 4,370 3,997 9.3%
------------ ------------ ------------
Total Industrial 5,945 5,612 5.9%
Other Energy Sales 67 66 1.5%
Regular Resale 343 352 (2.6)%
------------ ------------ ------------
Total Regular Sales Billed 19,166 18,858 1.6%
Special Sales (A) 2,191 3,023 (27.5)%
------------ ------------ ------------
Total Electric Sales 21,357 21,881 (2.4)%
Unbilled Revenue (545) (251) (117.1)%
------------ ------------ ------------
Total Duke Power Electric Sales 20,812 21,630 (3.8)%
Nantahala Electric Sales 351 333 5.4%
------------ ------------ ------------
Total DP Consolidated Electric
Sales 21,163 21,963 (3.6)%
============ ============ ============
Average Number of Customers
Residential 1,829,808 1,794,657 2.0%
General Service 308,116 301,873 2.1%
Industrial - Textile 816 875 (6.7)%
Industrial - Other 6,679 6,695 (0.2)%
------------ ------------ ------------
Total Industrial 7,495 7,570 (1.0)%
Other Energy Sales 13,177 11,463 15.0%
Regular Resale 15 15 0.0%
------------ ------------ ------------
Total Regular Sales 2,158,611 2,115,578 2.0%
Special Sales (A) 38 41 (7.3)%
------------ ------------ ------------
Total Duke Power Electric Sales 2,158,649 2,115,619 2.0%
Nantahala Electric Sales 67,607 66,243 2.1%
------------ ------------ ------------
Total DP Average Number of
Customers 2,226,256 2,181,862 2.0%
============ ============ ============
(A) Excludes sales to Nantahala
Power and Light Company
Heating and Cooling Degree Days
Actual
Heating Degree Days 1,713 1,872 (8.5)%
Cooling Degree Days - 7 (100.0)%
Variance from Normal
Heating Degree Days 0.6% 12.1% n/a
Cooling Degree Days (90.3)% 134.3% n/a
DUKE ENERGY CORPORATION
ONGOING TO REPORTED EARNINGS RECONCILIATION
March 2005 Year-to-date
(Dollars in Millions)
Special Items (Note 1)
-------------------------------------
Gain Mutual Gains on
on sale insurance sales of
Ongoing of Grays liability equity
Earnings Harbor adjustment investments
---------- ---------- ---------- -----------
SEGMENT EARNINGS BEFORE
INTEREST AND TAXES FROM
CONTINUING OPERATIONS
Franchised Electric $ 336 $ - $ - $ -
Gas Transmission 407 - - -
Field Services 151 - - 888A
Duke Energy North America (56) 21C - -
International Energy 68 - - -
Crescent 52 - - -
---------- ---------- ---------- -----------
Total reportable
segment EBIT 958 21 - 888
Other (87) - (28)D -
---------- ---------- ---------- -----------
Total reportable
segment EBIT and
other EBIT $ 871 $ 21 $ (28) $ 888
========== ========== ========== ===========
EARNINGS FOR COMMON
Total reportable segment
EBIT and other EBIT $ 871 $ 21 $ (28) $ 888
Interest Income 15 - - -
Interest Expense (293) - - -
Minority Interest -
Interest Expense 12 - - -
Income taxes on
continuing operations (183) (8) 10 (329)
Discontinued operations,
net of taxes 1 - - -
Trust Preferred/
Preferred Dividends (2) - - -
---------- ---------- ---------- -----------
Total Earnings for Common 421 13 (18) 559
========== ========== ========== ==========
EARNINGS PER SHARE,
BASIC $ 0.44 $ 0.01 $ (0.02) $ 0.59
========== ========== ========== ===========
EARNINGS PER SHARE,
DILUTED $ 0.43 $ 0.01 $ (0.02) $ 0.56
========== ========== ========== ===========
DUKE ENERGY CORPORATION
ONGOING TO REPORTED EARNINGS RECONCILIATION (Continued)
March 2005 Year-to-date
(Dollars in Millions)
Special Items (Note 1)
-----------------------------------------------------
Field MTM change on
Services de-designated
hedge Field Services
de-designation, hedges for Reported
net 2005, net Total Earnings
--------------- --------------- --------------- ---------------
SEGMENT EARNINGS BEFORE
INTEREST AND TAXES FROM
CONTINUING OPERATIONS
Franchised Electric $ - $ - $ - $ 336
Gas Transmission - - - 407
Field Services (118)B - 770 921
Duke Energy North America - - 21 (35)
International Energy - - - 68
Crescent - - - 52
--------------- --------------- --------------- ---------------
Total reportable
segment EBIT (118) - 791 1,749
Other - (54)E (82) (169)
--------------- --------------- --------------- ---------------
Total reportable
segment EBIT and
other EBIT $ (118) $ (54) $ 709 $ 1,580
=============== =============== =============== ===============
EARNINGS FOR COMMON
Total reportable segment
EBIT and other EBIT $ (118) $ (54) $ 709 $ 1,580
Interest Income - - - 15
Interest Expense - - - (293)
Minority Interest -
Interest Expense - - - 12
Income taxes on
continuing operations 44 19 (264) (447)
Discontinued operations,
net of taxes - - - 1
Trust Preferred/Preferred
Dividends - - - (2)
--------------- --------------- --------------- ---------------
Total Earnings for Common (74) (35) 445 866
=============== =============== =============== ===============
EARNINGS PER SHARE,
BASIC $ (0.08) $ (0.03) $ 0.47 $ 0.91
=============== =============== =============== ===============
EARNINGS PER SHARE,
DILUTED $ (0.07) $ (0.03) $ 0.45 $ 0.88
=============== =============== =============== ===============
Note 1 - Amounts for special items are entered net of minority interest
A - Gain on sale of investment in units of TEPPCO LP, $97 million, and
TEPPCO GP, $791 million net of $343 million of minority interest
B - De-designation of hedges due to proposed sell of 19.7% interest in
DEFS to ConocoPhillips. $125 million loss recorded in Impairment and
other charges on the Consolidated Statements of Operations, reduced by
$7 million of hedge settlements recorded in Non-regulated electric,
natural gas liquids and other on the Consolidated Statements of
Operations
C - Recorded in Gains (Losses) on Sales of Other Assets, net on the
Consolidated Statements of Operations
D - Recorded in Operation, maintenance and other on the Consolidated
Statements of Operations
E - Recorded in Non-regulated electric, natural gas liquids and other on
the Consolidated Statements of Operations
Weighted Average Shares (reported and ongoing) - in millions
Basic 954
Diluted 990
DUKE ENERGY
ONGOING TO REPORTED EARNINGS RECONCILIATION
March 2004 Year-to-Date
(Dollars in Millions)
Special Items (Note 1)
------------------------------------
Gains
(losses)
Loss on on sales
sale of of other
Ongoing Southeast Cantarell assets,
Earnings assets Charge net
---------- ---------- ---------- ----------
SEGMENT EARNINGS BEFORE INTEREST AND
TAXES FROM CONTINUING OPERATIONS
Franchised Electric $ 424 $ - $ - $ -
Gas Transmission 398 - - -
Field Services 91 - - -
Duke Energy North America (198) (359)A - -
International Energy 42 - (13)B -
Crescent 60 - - -
---------- ---------- ---------- ----------
Total reportable segment EBIT 817 (359) (13) -
Other (19) - - 14 C
---------- ---------- ---------- ----------
Total reportable segment EBIT
and other EBIT $ 798 $ (359) $ (13) $ 14
========== ========== ========== ==========
EARNINGS FOR COMMON
Total reportable segment EBIT and
other EBIT $ 798 $ (359) $ (13) $ 14
Foreign Currency Translation Losses (4) - - -
Interest Income 7 - - -
Interest Expense (356) - - -
Minority Interest - Interest Expense 11 - - -
Income taxes on continuing
operations (159) 126 5 (5)
Discontinued operations, net of
taxes 8 - - -
Trust Preferred/Preferred Dividends (2) - - -
---------- ---------- ---------- ----------
Total Earnings for Common 303 (233) (8) 9
========== ========== ========== ==========
EARNINGS PER SHARE, BASIC $ 0.34 $ (0.26) $ (0.01) $ 0.01
========== ========== ========== ==========
EARNINGS PER SHARE, DILUTED $ 0.32 $ (0.24) $ (0.01) $ 0.01
========== ========== ========== ==========
DUKE ENERGY
ONGOING TO REPORTED EARNINGS RECONCILIATION (Continued)
March 2004 Year-to-Date
(Dollars in Millions)
Special Items (Note 1)
------------------------------
Gain on sale of
Asia Pacific Reported
assets Total Earnings
--------------- ------------ ------------
SEGMENT EARNINGS BEFORE INTEREST
AND TAXES FROM CONTINUING OPERATIONS
Franchised Electric $ - $ - $ 424
Gas Transmission - - 398
Field Services - - 91
Duke Energy North America - (359) (557)
International Energy - (13) 29
Crescent - - 60
--------------- ------------ ------------
Total reportable segment EBIT - (372) 445
Other - 14 (5)
--------------- ------------ ------------
Total reportable segment EBIT
and other EBIT $ - $ (358) $ 440
=============== ============ ============
EARNINGS FOR COMMON
Total reportable segment EBIT and
other EBIT $ - $ (358) $ 440
Foreign Currency Translation Losses - - (4)
Interest Income - - 7
Interest Expense - - (356)
Minority Interest - Interest
Expense - - 11
Income taxes on continuing
operations - 126 (33)
Discontinued operations, net of
taxes 238D 238 246
Trust Preferred/Preferred
Dividends - - (2)
--------------- ------------ ------------
Total Earnings for Common 238 6 309
=============== ============ ============
EARNINGS PER SHARE, BASIC $ 0.26 $ - $ 0.34
=============== ============ ============
EARNINGS PER SHARE, DILUTED $ 0.25 $ 0.01 $ 0.33
=============== ============ ============
Note 1 - Amounts for special items are entered net of minority interest
A - $(353) million recorded in Gains (Losses) on Sales of Other Assets,
net on the Consolidated Statements of Operations and $(6) million
recorded in Operation, maintenance and other on the Consolidated
Statements of Operations
B - Recorded in Operation, maintenance and other on the Consolidated
Statements of Operations
C - Primarily gain on sale of Caribbean Nitrogen Co.
D - Recorded in Discontinued Operations on the Consolidated Statements of
Operations
Weighted Average Shares (reported and ongoing) - in millions
Basic 912
Diluted 947
MEDIA CONTACT: Randy Wheeless
Phone: 704/382-8379
24-Hour: 704/382-8333
ANALYST CONTACT: Julie Dill
Phone: 980/373-4332
SOURCE Duke Energy
-0- 05/04/2005
/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/
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