-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Bc+FWeuPCeecmI3EMrPUkjaCKoal7nGKeANKVE9EcQ3jT543mwjHUu2iAQCw/hZU mby9IxlYfOn+nQyuz6HZHw== 0000950168-00-001138.txt : 20000501 0000950168-00-001138.hdr.sgml : 20000501 ACCESSION NUMBER: 0000950168-00-001138 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20000420 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DUKE ENERGY CORP CENTRAL INDEX KEY: 0000030371 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 560205520 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-04928 FILM NUMBER: 613433 BUSINESS ADDRESS: STREET 1: 526 SOUTH CHURCH STREET CITY: CHARLOTTE STATE: NC ZIP: 28201-1006 BUSINESS PHONE: 7045946200 MAIL ADDRESS: STREET 1: 422 S CHURCH ST CITY: CHARLOTTE STATE: NC ZIP: 28242 FORMER COMPANY: FORMER CONFORMED NAME: DUKE POWER CO /NC/ DATE OF NAME CHANGE: 19920703 8-K 1 DUKE ENERGY FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ------------------ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): April 20, 2000 DUKE ENERGY CORPORATION (Exact Name of Registrant as Specified in Charter)
NORTH CAROLINA 1-4928 56-0205520 (State or Other Jurisdiction of (Commission File No.) (IRS Employer Identification No.) Incorporation)
526 South Church Street Charlotte, North Carolina 28202-1904 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 704-594-6200 ------------------ ITEM 5. OTHER EVENTS. On April 20, 2000, Duke Energy Corporation (the "registrant") announced its earnings for the first quarter of 2000, through a press release and a financial bulletin distributed to members of the financial community. Copies of the registrant's press release and financial bulletin are filed herewith as Exhibits 99.1 and 99.2 respectively, and are incorporated by reference herein. The registrant has begun disclosing financial results for its segments entitled North American Wholesale Energy and International Energy. These segments were formerly combined into the segment known as Global Asset Development. The registrant plans to use the new segment formulation in its future financial reporting. The registrant issued a financial bulletin on April 26, 2000, setting forth certain quarterly financial results for the 1999 fiscal year and for the quarter ended March 31, 2000 for the North American Wholesale Energy and International Energy segments. That financial bulletin is filed herewith as Exhibit 99.3 and is incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. The following exhibits are filed herewith: 99.1 Press release of registrant dated April 20, 2000 99.2 Financial bulletin of registrant dated April 20, 2000 99.3 Financial bulletin of registrant dated April 26, 2000 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DUKE ENERGY CORPORATION By: --------------------------- Ellen T. Ruff Vice President and General Counsel, Corporate and Electric Operations Dated: April 28, 2000 EXHIBIT INDEX EXHIBIT DESCRIPTION ------- ----------- 99.1 Press release of registrant dated April 20, 2000 99.2 Financial bulletin of registrant dated April 20, 2000 99.3 Financial bulletin of registrant dated April 26, 2000 EX-99.1 2 PRESS RELEASE EXHIBIT 99.1 April 20, 2000 CONTACT: Danny Gibbs Phone: 704/373-6680 24-Hour: 704/382-8333 DUKE ENERGY EARNINGS UP 28 PERCENT; SURPASS EXPECTATIONS HIGHLIGHTS o EARNINGS PER SHARE: $1.06 IN 2000 VS. $0.83 IN 1999 o REVENUES INCREASE 73 PERCENT TO $7.2 BILLION o ENERGY SERVICES EBIT UP 380 PERCENT; FIELD SERVICES EBIT UP 475 PERCENT o NATURAL GAS TRANSMISSION EBIT UP MORE THAN 10 PERCENT o RESIDENTIAL, COMMERCIAL SALES INCREASE DUKE POWER EBIT MORE THAN 8 PERCENT CHARLOTTE, N.C. -- Duke Energy (NYSE: DUK) today reported earnings of $388 million, or $1.06 per share, for first quarter, up 28 percent from $302 million, or $0.83 per share, excluding an extraordinary gain, for first quarter 1999. Revenues for the quarter increased 73 percent over the prior-year quarter to $7.2 billion, due to strong performance in key business segments, including North American Wholesale Energy, International Energy, Field Services, Natural Gas Transmission and Franchised Electric. Earnings before interest and taxes (EBIT) for the quarter were $859 million, a 26 percent increase over EBIT of $683 million in first quarter last year. Richard B. Priory, Duke Energy's chairman, president and chief executive officer, noted that first quarter earnings exceeded projections. "Our first quarter results are proof positive that our integrated strategy is on track to deliver exceptional value to customers and shareholders," Priory said. "We are combining our expertise - more - -2- in operations, asset management and market knowledge to deliver high-impact energy services to our customers." The $0.83 earnings per share for first quarter 1999 excludes a $660 million extraordinary gain, or $1.82 per share, on the sale of Midwest Pipelines in March 1999. For the quarter, Duke Energy's Energy Services group, which include the fast-growing North American Wholesale Energy and International Energy segments, had EBIT of $187 million, a 380 percent increase over the $39 million earned in the same period in 1999. Operating results for the company's North American Wholesale Energy segment - Duke Energy North America - include $63 million from the sale of the company's remaining interest in the Hidalgo Energy Facility, reflecting an aggressive portfolio management strategy designed to capture market premiums. The increase for the International Energy segment - Duke Energy International - is attributable to new earnings from acquisitions in Latin America and Australia and $54 million from the sale of two liquefied natural gas vessels. "Earnings from our Energy Services businesses are on track to achieve 40 percent to 50 percent growth this year," Priory said. The company's additional Energy Services segments - Trading and Marketing and Other Energy Services - reported strong earnings as well. The Trading and Marketing segment, comprised of Duke Energy Merchants, contributed first quarter EBIT of $22 million, a 22 percent increase over the $18 million earned in first quarter last year. The increase is largely due to additional earnings from new acquisitions and new businesses, and decreased operating costs. - more - - 3 - The Other Energy Services segment, which is comprised of Duke Solutions, Duke Engineering & Services and Duke/Fluor Daniel, reported first quarter EBIT of $7 million, a $12 million increase over first quarter 1999. The positive results are due to earnings from new projects and decreased operating expenses. Field Services, which includes natural gas gathering and processing, accounted for EBIT of $69 million, a 475 percent increase over the $12 million earned in first quarter last year. The growth was due to higher natural gas liquids (NGL) prices, volume increases and operating profits stemming from the acquisition of UPFuels on March 31, 1999. The Natural Gas Transmission segment reported strong first quarter results with EBIT totaling $152 million, a 10 percent increase over the $138 million earned in first quarter 1999, excluding $70 million attributable to the Midwest Pipelines, which were sold in first quarter 1999. The increase was driven by market expansion projects and acquisitions. The company's Franchised Electric segment, Duke Power, also realized EBIT growth during the quarter. Earnings of $441 million were 8 percent above the $407 million reported in the same quarter last year, due to residential and commercial customer growth. "Our Franchised Electric and Natural Gas Transmission segments provide Duke Energy solid, diverse platforms from which we will continue to grow," Priory said. The positive first quarter results illustrate the strength of Duke Energy's integrated network of energy businesses, as well as its skilled management of assets to capture maximum value for shareholders. "Our strong first quarter earnings are due in part to the agile management of our portfolio of energy assets, as we continue to aggressively acquire and divest to take advantage of market cycles and maximize the effectiveness of our capital," Priory said. - more - - 4 - The Duke Ventures segment, which includes Crescent Resources, DukeNet Communications and Duke Capital Partners, reported first quarter EBIT of $17 million, a 31 percent increase over the $13 million earned in first quarter 1999. The increase is primarily due to decreased operating losses of DukeNet Communications. Additional first quarter performance information for the company's reporting segments as well as key earnings drivers can be found on Duke Energy's web site at www.duke-energy.com. Duke Energy, a diversified multi-national energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses -- generating revenues of nearly $22 billion in 1999. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 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. This press release includes 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. Although Duke Energy believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the commodity prices for oil, gas, coal electricity and interest rates, the extent of success in connecting natural gas supplies to gathering and processing systems and in connecting and expanding gas and electric markets, the performance of electric generation, pipeline and gas processing facilities, the timing and success of efforts to develop domestic and international power, pipeline, gathering, processing and other infrastructure projects and conditions of the capital markets and equity markets during the periods covered by the forward-looking statements. ### EX-99.2 3 FINANCIAL BULLETIN Exhibit 99.2 April 20, 2000 TO: Members of the Financial Community SUBJECT: 2000 First Quarter Results DUKE ENERGY EARNINGS PER SHARE Duke Energy Corporation earned $1.06 per share for the first quarter of 2000. Earnings per share for the first quarter last year were $0.83, excluding the extraordinary gain of $1.82 on the sale of the Midwest Pipelines. Earnings before interest and taxes (EBIT) for the first quarter of 2000 were $859 million, a 26% increase over the same period last year. Strong earnings results for the quarter were driven by significant growth in the Energy Services and Field Services business segments. The Energy Services group as a whole increased its EBIT by 380%. This substantial earnings growth resulted from both acquisitions and strategic sales of assets. Also contributing to the strong growth was Field Services, which saw a 475% growth in EBIT, benefiting from much improved natural gas liquids (NGL) prices and the acquisition of UPFuels last year. Duke Ventures grew its earnings by 31%, while the Northeast Pipelines increased earnings more than 10% as a result of increased earnings from expansion projects. Franchised Electric benefited from strong sales to residential and commercial customers this quarter to increase its EBIT by more than 8%. A detailed reconciliation of Earnings per Share for the first quarter is attached. FIELD SERVICES EBIT for the first quarter of 2000 was $69 million, up from $12 million last year. The significant growth in EBIT is primarily a result of the UPFuels acquisition and several other asset purchases since the first quarter of 1999. Field Services continued to enjoy strong NGL prices, which averaged $0.50 per gallon this quarter compared to $0.23 for the first quarter last year. During the quarter, Field Services acquired by transfer from Duke Energy the general partnership interest and responsibility of TEPPCO Partners, L.P. On March 31, 2000, Field Services completed the combination of its assets with Phillips Petroleum's gas gathering, processing and marketing unit to form a new company, also called Duke Energy Field Services (DEFS). Field Services also closed on March 31 the acquisition of gathering and processing assets in Central Oklahoma from Conoco Inc. and Mitchell Energy & Development Corporation. 1 An analysis of Field Services' margins by contract type is attached. NORTH AMERICAN WHOLESALE ENERGY North American Wholesale Energy, which is primarily Duke Energy North America (DENA), reported EBIT of $56 million for the first quarter of 2000, compared to $27 million for the same period last year. The $63 million gain on the sale of the Hidalgo generation facility was partially offset by reduced earnings from the California generation facilities and increased development costs. Duke Energy North America continued to demonstrate its ability to actively manage its energy portfolio to capture market premiums and recycle capital to achieve higher expected returns. Proceeds from the sale of its remaining 78.5 percent ownership in the Hidalgo Energy Project have been deployed to three new construction projects, the Hinds and Attala projects in Mississippi and the McClain project in Oklahoma. These three projects are expected to be in operation by June 2001. INTERNATIONAL ENERGY International Energy, comprised of the regional energy businesses of Duke Energy International (DEI), reported first quarter EBIT of $102 million. EBIT for the first quarter of 1999 was $(1) million. The significant increase in EBIT was attributable to new earnings from acquisitions in Australia and Latin America and a $54 million gain on sale of the LNG ships. During the quarter, DEI continued to build its regional energy business in Latin America by acquiring an additional 51% of Paranapanema, a Brazilian generating company, and closing on the purchase of generating assets in Argentina. In Australia, construction on the Eastern Gas Pipeline is more than 75% complete and still on track to be in service by September 2000. DEI also announced its first acquisition in Europe by purchasing from ExxonMobil, its natural gas marketing company in the Netherlands. DEI plans to expand its European operations into both gas and power trading in the near future. TRADING AND MARKETING Trading and Marketing reported EBIT of $22 million, an increase of $4 million compared to the first quarter last year. This quarter's positive results were largely due to increased earnings from new acquisitions and new businesses, partially offset by lower financial trading margins. Duke Energy Merchants continued to grow its commodity portfolio by acquiring Northridge Energy, a West Coast refined products trader. DEM also made equity investments in Canadian 88, securing additional equity gas, and Agrifos Fertilizer, adding another commodity to the trading portfolio. Trading and Marketing continued to expand its long-term origination business by entering into agreements with Irving Oil, Detroit Edison and Northeast Utilities. 2 OTHER ENERGY SERVICES Other Energy Services, comprised of Duke/Fluor Daniel, Duke Engineering & Services (DE&S), and DukeSolutions, reported first quarter EBIT of $7 million, a $12 million increase over the same period last year. Earnings growth resulted from increased earnings from new projects and decreased operating expenses. DukeSolutions turned earnings positive at the end of the first quarter. DE&S signed contracts this quarter to provide engineering services to Texas Utilities' Comanche Peak Nuclear Station and operation services at the High Flux Isotope Reactor at the Oak Ridge National Laboratory. Duke/Fluor Daniel has more than 10,000 MW under contract with both Duke Energy businesses and outside parties, maintaining its leadership position in the fossil-fuel generation construction business. NATURAL GAS TRANSMISSION Natural Gas Transmission's EBIT for the first quarter of 2000 was $152 million. EBIT for the first quarter of 1999 was $138 million, excluding $70 million attributable to the Midwest Pipelines, which were sold in the first quarter of 1999. The $14 million increase primarily resulted from additional earnings from the East Tennessee acquisition and successful market expansion projects. During the quarter, Duke Energy acquired the East Tennessee Natural Gas Company, which will integrate with the Texas Eastern system. The gas demand in this region is growing at a faster pace than the national average and East Tennessee is well positioned to serve this growing market for both consumers and electric generation. Also during the quarter, Duke Energy entered into a 50/50 partnership with The Williams Cos. to jointly develop, construct and operate the Buccaneer Gas Pipeline Project to serve the growing Florida market. This pipeline will cross the Gulf of Mexico from Alabama to Central Florida. FRANCHISED ELECTRIC EBIT for Franchised Electric was $441 million for the first quarter of 2000, a $34 million increase over last year primarily driven by increased sales to new and existing retail customers. Electric Transmission is included with Duke Power for financial reporting purposes. Increased sales to retail customers boosted total kilowatt-hour sales for the quarter by 5.2%. Sales to general service and residential customers increased 5.7% and 4.5%, respectively. Total industrial sales declined slightly, by 0.2%, during the quarter. The average number of customers for the quarter increased 2.6%. Heating degree hours were 3.7% lower than in the first quarter last year. Nuclear outage days for the first quarter of 2000 totaled 45, compared to 26 for the same period last year. Capacity utilization of our nuclear facilities was 94%, compared to 98% last year. 3 DUKE VENTURES The Duke Ventures business segment, comprised of Crescent Resources, DukeNet Communications and Duke Capital Partners, reported EBIT of $17 million for the first quarter of 2000, an increase of $4 million over the same period last year. The increase in EBIT is primarily due to reduced operating losses for the PCS business at DukeNet Communications. During the quarter, Duke Energy announced the formation of Duke Capital Partners, a wholly owned finance company that will provide lending, investment banking and asset management services to the wholesale and commercial energy markets. The new entity will focus on serving the financing needs of customers and partners of Duke Energy businesses. Also during the quarter, DukeNet Communications, the telecommunications business of Duke Energy, announced plans to expand its 11,500-mile fiber optic cable network to a national network through interconnect agreements to deliver bandwidth capacity to major commercial customers. CONFERENCE CALL NOTICE Today at 2:00 p.m. EDST, Rick Priory, Chairman, President and CEO, and Rich Osborne, Executive Vice President and Chief Financial Officer, will hold a conference call to review First Quarter 2000 earnings. A question and answer session will follow. Please dial (800/946-0712) or for international callers (719/457-2641) with confirmation code 852156. Please call at least 5 to 10 minutes prior to 2:00 p.m. EDST. A playback of the call will be available through May 1, 2000 and can be heard by calling (888/203-1112) or (719/457-0820) for international callers with the code for both being 852156. In addition, you will be able to participate in a live webcast of today's conference call. Go to the company's website, www.duke-energy.com and follow the instructions. By accessing the website, interested parties may see slides and listen to the audio of the conference call but will be unable to ask questions. You must dial into the conference call number listed above if you would like the opportunity to participate in the question and answer portion of the conference call. If you have any questions about these or other matters, please call John Arensdorf (704/382-5087) or me (704/382-8695). Sue Becht Vice President, Investor Relations 4 DUKE ENERGY CORPORATION RECONCILIATION OF CONSOLIDATED EARNINGS 1ST QTR -------- 1999 EARNINGS PER SHARE $ 2.65 *Extraordinary gain on sale of Midwest Pipelines (1.82) -------- 1999 EPS BEFORE EXTRAORDINARY ITEM 0.83 1999 RECONCILING ITEMS: - ----------------------- 1Q Earnings from Midwest Pipelines (0.12) 1Q Gain on sale of Mecklenburg Cogen facility (0.01) 2000 RECONCILING ITEMS: - ----------------------- Franchised Electric: Increased electric sales, net of fuel and purchased power 0.06 Gas Transmission: Increased earnings from expansion projects 0.03 Field Services: Increased in NGL pricing, net of hedging 0.05 Increased earnings from acquisitions 0.05 Trading and Marketing: Increased earnings from new business 0.05 Decreased financial trading margins (0.04) North American Monetization of power positions 0.12 Wholesale Energy: Decreased earnings from California assets (0.03) Increased development costs (0.02) International Energy: Increased earnings from new acquisitions 0.08 Gain on sale of LNG ships 0.09 Other Energy Services: Increased earnings from new projects 0.01 Decreased operating expenses 0.01 Duke Ventures: Reduced operating loss at DukeNet Communications 0.01 Other Items: Increased interest expense (0.09) Increased interest on trust preferred securities (0.02) Decrease in Minority Interest Expense 0.02 Other reconciling items, net (0.02) -------- FIRST QUARTER 2000 EARNINGS PER SHARE $ 1.06 ======== DUKE ENERGY FIELD SERVICES GAS VOLUME / MARGIN BY CONTRACT TYPE
BASIS OF PRESENTATION: Margins for POP (Percentage of Proceeds) and Keepwhole contracts are stated on the basis of the natural gas feedstock used in our processing activity. 2000 1999 1999 1999 1999 Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 ----- ----- ----- ----- ----- CONTRACT TYPE: POP: Gas Volume - TBtu/d 2.1 2.1 2.2 2.2 1.2 (Long NGL/Long gas) Margin (Dollars in Millions) $ 78.7 $ 70.3 $ 66.5 $ 49.0 $ 23.2 Margin/MMbtu $ 0.40 $ 0.36 $ 0.32 $ 0.25 $ 0.21 KEEPWHOLE: Gas Volume - TBtu/d 1.8 1.7 1.5 1.5 1.0 (Long NGL/Short gas) Margin (Dollars in Millions) $ 57.4 $ 38.4 $ 31.7 $ 20.1 $ 6.0 Margin/MMbtu $ 0.35 $ 0.24 $ 0.23 $ 0.15 $ 0.07 FEE: GAS Gas Volume - TBtu/d 4.7 4.5 4.5 4.6 2.5 (Primarily gathering Margin (Dollars in Millions) $ 49.0 $ 47.4 $ 47.3 $ 45.4 $ 26.5 & transport) Margin/MMbtu $ 0.12 $ 0.12 $ 0.11 $ 0.11 $ 0.12 FEE: NGL NGL Volume - MBbl/day (7) 175.4 164.8 170.3 159.6 30.2 (NGL transport & Margin (Dollars in Millions) $ 11.4 $ 12.0 $ 15.8 $ 11.1 $ 1.9 fractionation) Margin/Gallon $ 0.02 $ 0.02 $ 0.02 $ 0.02 $ 0.02 NGL MARKETING Margin (Dollars in Millions) $ 19.9 $ 4.9 $ 4.6 $ 5.3 $ 1.1 OTHER: Margin (Dollars in Millions) (4),(5) $ 8.3 $ 6.8 $ 1.7 $ 0.6 $ 6.5 ------- ------- ------- ------- ------- TOTAL MARGIN $ 224.6 $ 179.8 $ 167.5 $ 131.5 $ 65.2 Direct Operating and G&A Expense $ (77.8) $ (73.6) $ (69.0) $ (63.6) $ (45.0) DD&A $ (37.3) $ (38.9) $ (34.8) $ (35.5) $ (19.8) Other Income (6) $ (40.8) $ (19.6) $ (15.2) $ 3.6 $ 11.4 ------- ------- ------- ------- ------- EBIT - Field Services $ 68.7 $ 47.7 $ 48.5 $ 36.0 $ 12.0 Total Gas Volume per above (TBtu/d) 8.6 8.3 8.2 8.3 4.7 Volumes Doublecounted (TBtu/d) (2.6) (2.4) (2.4) (3.0) (1.3) ------- ------- ------- ------- ------- Reported Gas Volumes (TBtu/d) 6.0 5.9 5.8 5.3 3.4 NYMEX HENRY HUB (1) $ 2.52 $ 2.59 $ 2.59 $ 2.14 $ 1.75 WGHTD AVG NGL PRICE (2) $ 0.50 $ 0.41 $ 0.40 $ 0.31 $ 0.23 FRAC SPREAD (3) $ 3.32 $ 2.20 $ 2.07 $ 1.49 $ 0.95 FOOTNOTES: (1) Represents last day closing of Nymex Henry Hub. (2) Represents monthly average Belvieu and Conway pricing weighted with the Company's NGL component mix. (3) Represents the difference between an average mmbtu price of five representative pipeline indices and the Company's weighted average NGL price per gallon converted to an Mmbtu price equivalent. (4) The margins associated with the Company's joint ventures are allocated to the proper Contract Type above; the Operating, G&A, and Depreciation expenses associated with these joint ventures are included in "Other". (5) "Other" includes Condensate Sales, Helium Margin, Operating Costs /G&A/Depreciation related to Joint Ventures, and other miscellaneous items. (6) "Other Income" includes earnings from TEPPCO, risk management activity, and gain/(loss) on asset sales. (7) This volume represents equity and third party volumes transported on the Company's liquid pipeline assets and fractionated volume associated with our 'non-operating' interest in certain facilities at Mont Belvieu.
MARCH 2000 QUARTERLY HIGHLIGHTS (UNAUDITED) THREE MONTHS ENDED MARCH 31, -------------------------------- (IN MILLIONS, EXCEPT WHERE NOTED) 2000 1999 - ------------------------------------------------------------------------------------------------------------------- COMMON STOCK DATA Earnings Per Share (before extraordinary item) Basic $ 1.06 $ 0.83 Dilutive 1.06 0.83 Earnings Per Share Basic 1.06 2.65 Dilutive 1.06 2.64 Dividends Per Share 0.55 0.55 Actual Shares Outstanding 367 364 Weighted Average Shares Outstanding Basic 367 363 Dilutive 367 364 - ------------------------------------------------------------------------------------------------------------------- INCOME Operating Revenues $ 7,236 $ 4,178 Earnings Before Interest and Taxes (EBIT) 859 683 Interest Expense 185 132 Minority Interests (a) 31 35 Income Taxes 250 209 Extraordinary Gain - 660 Net Income 393 967 Preferred Stock Dividends and Redemption Premiums 5 5 Earnings Available for Common Stockholders $ 388 $ 962 - ------------------------------------------------------------------------------------------------------------------- CAPITALIZATION Common Equity 41% 51% Minority Interest 5% 1% Preferred Stock 1% 2% Trust Preferred Securities 6% 5% Total Debt 47% 41% - ------------------------------------------------------------------------------------------------------------------- SEC Fixed Charges Coverage 4.2 4.6 Total Debt $ 10,787 $ 7,230 Book Value Per Share 25.18 24.07 - ------------------------------------------------------------------------------------------------------------------- CAPITAL AND INVESTMENT EXPENDITURES Franchised Electric $ 177 $ 125 Natural Gas Transmission 428 42 Field Services 128 1,445 Trading and Marketing 97 5 North American Wholesale Energy 238 86 International Energy 447 296 Other Energy Services 11 8 Duke Ventures 64 64 - ------------------------------------------------------------------------------------------------------------------- EBIT BY BUSINESS SEGMENT Franchised Electric $ 441 $ 407 Natural Gas Transmission 152 208 Field Services 69 12 Trading and Marketing 22 18 North American Wholesale Energy 56 27 International Energy 102 (1) Other Energy Services 7 (5) Duke Ventures 17 13 Other Operations (13) (17) ------------- ------------ Total Segment EBIT 853 662 EBIT attributable to Minority Interests 6 21 ------------- ------------ Total EBIT $ 859 $ 683 ============= ============ - -------------------------------------------------------------------------------------------------------------------
(a) Includes expense related to the Trust Preferred Securities of $27 million and $18 million for the three months ended March 31, 2000 and 1999, respectively. MARCH 2000 QUARTERLY HIGHLIGHTS (unaudited) Three Months Ended March 31, ---------------------------- (In millions, except where noted) 2000 1999 - -------------------------------------------------------------------------------- FRANCHISED ELECTRIC Operating Revenues $ 1,115 $ 1,061 Operating Expenses 693 675 Other Income (Expenses) 19 21 ----------- ----------- EBIT $ 441 $ 407 ----------- ----------- Sales, GWh 20,554 19,537 - -------------------------------------------------------------------------------- NATURAL GAS TRANSMISSION Operating Revenues $ 286 $ 402 Operating Expenses 146 202 Other Income (Expenses) 12 8 ----------- ----------- EBIT $ 152 $ 208 ----------- ----------- Throughput, TBtu 505 811 - -------------------------------------------------------------------------------- FIELD SERVICES Operating Revenues $ 1,466 $ 344 Operating Expenses 1,393 332 Other Income (Expenses) (4) - ----------- ----------- EBIT $ 69 $ 12 ----------- ----------- Natural Gas Gathered and Processed/ Transported, TBtu/day 6.0 3.4 Natural Gas Liquids Production, MBbl/d 231.2 107.6 Natural Gas Marketed, TBtu/day 0.5 0.4 Average Natural Gas Price per MMBtu $ 2.52 $ 1.75 Average Natural Gas Liquids Price per Gallon $ 0.50 $ 0.23 - -------------------------------------------------------------------------------- TRADING AND MARKETING Operating Revenues $ 4,431 $ 2,286 Operating Expenses 4,414 2,257 Other Income (Expenses) 2 4 Minority Interest Expense (Benefit) (3) 15 ----------- ----------- EBIT $ 22 $ 18 ----------- ----------- Natural Gas Marketed, TBtu/day 12.0 11.0 Electricity Marketed, GWh 50,353 21,837 - -------------------------------------------------------------------------------- NORTH AMERICAN WHOLESALE ENERGY Operating Revenues $ 142 $ 81 Operating Expenses 84 53 Other Income (Expenses) 2 3 Minority Interest Expense 4 4 ----------- ----------- EBIT $ 56 $ 27 ----------- ----------- Proportional MW Capacity Owned (a) 6,889 5,012 Estimated Proportional Investment In Project Net Assets (a) $ 1,606(b) $ 1,502(b) - -------------------------------------------------------------------------------- INTERNATIONAL ENERGY Operating Revenues $ 154 $ 45 Operating Expenses 115 48 Other Income (Expenses) 68 4 Minority Interest Expense 5 2 ----------- ----------- EBIT $ 102 $ (1) ----------- ----------- Proportional MW Capacity Owned (a) 4,205 906 Proportional Maximum Pipeline Capacity, MMcf/d (a) 332 332 Estimated Proportional Investment in Project Net Assets (a) $ 2,882(c) $ 588(c) - -------------------------------------------------------------------------------- OTHER ENERGY SERVICES Operating Revenues $ 275 $ 154 Operating Expenses 268 159 ----------- ----------- EBIT $ 7 $ (5) ----------- ----------- - -------------------------------------------------------------------------------- DUKE VENTURES Operating Revenues $ 34 $ 26 Operating Expenses 17 13 ----------- ----------- EBIT $ 17 $ 13 ----------- ----------- - -------------------------------------------------------------------------------- (a) Includes under construction or under contract. (b) Includes total proportional estimated costs to complete projects under construction or contract of $542 million and $490 million as of March 31, 2000 and 1999, respectively. (c) Includes total proportional estimated costs to complete projects under construction or under contract of $90 million and $259 million as of March 31, 2000 and 1999, respectively. EX-99.3 4 FINANCIAL BULLETIN April 26, 2000 TO: Members of the Financial Community SUBJECTS: Global Asset Development EBIT by segment Many of you have inquired about the 1999 quarterly EBIT numbers for North American Wholesale Energy and International Energy. During 1999 these segments were reported together as Global Asset Development. Starting with the first quarter of 2000 we now are reporting these segments separately. In order to help you with your analysis, the following is a breakout by quarter for 1999. North American International ($ in millions) Wholesale Energy Energy Total ---------------- ------ ----- First Quarter 1999 $ 27 $ (1) $ 26 Second Quarter 1999 $ 14 $ 6 $ 20 Third Quarter 1999 $ 90 $ 19 $ 109 Fourth Quarter 1999 $ 8 $ 18 $ 26 Year Ended 12/31/99 $ 139 $ 42 $ 181 First Quarter 2000 $ 56 $ 102 $ 158 If you have questions about this or other matters please give me a call at (704) 382-8695 or call John Arensdorf at (704) 382-5087. Sue Becht Vice President, Investor Relations SAB/mep -----END PRIVACY-ENHANCED MESSAGE-----