Duke Energy Revises Ongoing Earnings, CapEx Estimates



    CHARLOTTE, N.C., Sept. 11 /CNW/ -- Duke Energy (NYSE:   DUK) today
announced it has increased its ongoing earnings per share (EPS) growth outlook
to a range of 5 to 7 percent compound annual growth rate for the next five
years primarily as a result of higher projected capital expenditures.
    
    (Logo:  http://www.newscom.com/cgi-bin/prnh/20040414/DUKEENERGYLOGO )
    
    The revised estimate is off a base of the company's 2007 employee
incentive EPS target of $1.15 on an ongoing diluted basis. The company had
previously estimated ongoing earnings growth in a range of 4 to 6 percent
through 2009.
    During a New York City analyst conference and webcast, the company said
that with normal weather, it still anticipates exceeding the 2007 employee
incentive target.
    The company outlined an investment plan of approximately $4.5 billion per
year in average capital expenditures from 2008 to 2012. Capital expenditures
were previously estimated at $3.5 billion per year from 2007 through 2009.
    "The revised capital estimate is driven by planning for the approximately
$23 billion in infrastructure investments we will make over the next five
years and the expectation of timely recovery of those investments," said Jim
Rogers, chairman, president and chief executive officer.
    He noted that the majority of the capital investments will be in Duke's
regulated U.S. Franchised Electric and Gas business to meet increasing
customer demand, reduce emissions, upgrade distribution systems and pay for
nuclear fuel.
    "We are meeting head-on the dual challenges of growing power demand and
environmental constraints with a cohesive strategy that we believe balances
the interests of our investors and customers," Rogers said.
    To view a replay the conference webcast, please go to
www.duke-energy.com/investors.
    Duke Energy, one of the largest electric power companies in the United
States, supplies and delivers energy to approximately 4 million U.S.
customers. The company has nearly 37,000 megawatts of electric generating
capacity in the Midwest and the Carolinas, and natural gas distribution
services in Ohio and Kentucky. In addition, Duke Energy has more than 4,000
megawatts of electric generation in Latin America, and is a joint-venture
partner in a U.S. real estate company.
    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.
    
    Non-GAAP Financial Measures
    
    Duke Energy's management uses ongoing diluted EPS, which is a non-GAAP
financial measure as it represents diluted EPS from continuing operations,
adjusted for the impact of special items, as a measure 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 anticipated ongoing diluted EPS and related
forecasted compound annual growth rate percentages provides useful information
to investors, as it allows them to more accurately compare the company's
ongoing performance across periods. Ongoing diluted EPS is also used as a
basis for employee incentive bonuses.
    The most directly comparable GAAP measure for ongoing diluted EPS is
reported diluted EPS from continuing operations, which includes the impact of
special items. Due to the forward-looking nature of ongoing diluted EPS for
future periods, information to reconcile such non-GAAP financial measures 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.
    
    Forward-Looking Statement
    
    This 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. Forward-looking statements are based on management's
beliefs and assumptions. These forward-looking statements are identified by
terms and phrases such as "anticipate," "believe," "intend," "estimate,"
"expect," "continue," "should," "could," "may," "plan," "project," "predict,"
"will," "potential," "forecast," and similar expressions. Forward-looking
statements involve risks and uncertainties that may cause actual results to be
materially different from the results predicted. Factors that could cause
actual results to differ materially from those indicated in any forward-
looking statement include, but are not limited to: State, federal and foreign
legislative and regulatory initiatives, including costs of compliance with
existing and future environmental requirements; state, federal and foreign
legislation and regulatory initiatives that affect cost and investment
recovery, or have an impact on rate structures; costs and effects of legal and
administrative proceedings, settlements, investigations and claims;
industrial, commercial and residential growth in Duke Energy Corporation's
(Duke Energy) service territories; additional competition in electric markets
and continued industry consolidation; political and regulatory uncertainty in
other countries in which Duke Energy conducts business; the influence of
weather and other natural phenomena on Duke Energy operations, including the
economic, operational and other effects of hurricanes, ice storms and
tornadoes; the timing and extent of changes in commodity prices, interest
rates and foreign currency exchange rates; unscheduled generation outages,
unusual maintenance or repairs and electric transmission system constraints;
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;
declines in the market prices of equity securities and resultant cash funding
requirements for Duke Energy's defined benefit pension plans; the level of
credit worthiness of counterparties to Duke Energy's transactions; employee
workforce factors, including the potential inability to attract and retain key
personnel; growth in opportunities for Duke Energy's business units, including
the timing and success of efforts to develop domestic and international power
and other projects; the performance of electric generation and of projects
undertaken by Duke Energy's non-regulated businesses; the effect of accounting
pronouncements issued periodically by accounting standard-setting bodies; and
the ability to successfully complete merger, acquisition or divestiture plans.
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.

    
    MEDIA CONTACT        Mark Craft
    Phone:               513-419-5943
    24-Hour:             704-382-8333
    

    
    ANALYST CONTACT      Sean Trauschke
    Phone:               980-373-7905
    




For further information:

For further information: Mark Craft, +1-513-419-5943, +1-704-382-8333 -
24  hour, or Sean Trauschke, +1-980-373-7905, both for Duke Energy Web Site:
http://www.duke-energy.com                 
http://www.duke-energy.com/investors

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