QUOTE AND NEWS
TheStreet.com  Sep 16  Comment 
NEW YORK (TheStreet) -- Duke Energy Corp.a was aupgraded to "outperform" from "market perform" at Wells Fargo aciting valuation, the company's strategic actions and its belief the upper end of five year earnings growth guidance is...
TheStreet.com  Sep 15  Comment 
NEW YORK (TheStreet) --aDuke Energy was gaining 0.4% to $73.39 Monday after announcing a $500 million commitment to expand a solar power project in North Carolina and a new service agreement with Pattern Energy . The energy company plans to...
Benzinga  Sep 15  Comment 
Duke Energy Renewable Services today announced it has signed a long-term agreement to service Pattern Energy Group Inc.'s 283-megawatt (MW) Gulf Wind energy project in Armstrong, Texas. Duke Energy Renewable Services will supply operations and...
StreetInsider.com  Sep 15  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Duke+Energy+%28DUK%29+Plans+%24500M+Solar+Power+Expansion+in+North+Carolina/9831493.html for the full story.
Jutia Group  Sep 15  Comment 
[PR Newswire] - CHARLOTTE, N.C., Sept. 15, 2014 /PRNewswire/ -- Duke Energy today announced a $500 million commitment to a major expansion of solar power in North Carolina. This culminates the company's request for proposals (RFP) issued in...
Jutia Group  Sep 11  Comment 
[PR Newswire] - CHARLOTTE, N.C., Sept. 11, 2014 /PRNewswire/ -- Duke Energy has been named to the Dow Jones Sustainability Index (DJSI) for North America for the ninth consecutive year. "Being listed on the Dow Jones ... Read more on this. Duke...
SeekingAlpha  Sep 10  Comment 
By Mitu Anand: Duke Energy's (NYSE:DUK) performance has not been up to the mark in 2014. The utility company's shares have taken a beating so far, declining close to 30%. However, the company's results indicate growth, and its valuation is also...
SeekingAlpha  Sep 8  Comment 
By Horizon Investments: The U.S. electric utility sector has outperformed the broad market so far in 2014. The outperformance of the utility sector is mainly because of a drop in treasury yields since the start of 2014, and also because of utility...
SeekingAlpha  Sep 7  Comment 
By Apex Financial Consultants: Duke Energy Corporation (NYSE:DUK) has announced it will own a 40% stake in Atlantic Pipeline Venture and build its Los Vientos V wind power project in Texas. The projects are yet another step towards Duke's...
SeekingAlpha  Sep 7  Comment 
By IAEResearch: Duke Energy (NYSE:DUK) has been on an upward trend over the last twelve months - the stock has gained more than 15% during the period - this is a considerable gain for a mature company. Duke Energy also has a solid dividend yield...




 

is one of the five largest electric utility companies in the United States, providing 28,000 megawhats of electricity to 3.9 million customers in North Carolina, South Carolina, Indiana, Ohio and Kentucky[1][2] - enough electricity to power over 20 million homes. Duke is unusual among electric utilities in that it produces only 1/3 of its electricity from coal. This effectively insulates it against increases in coal prices and means its power generation portfolio is more diverse than that of its peers.

==Business Overview==8============d

Business & Financial Metrics[3]

In 2009, Duke generated a net income of $1.08 billion on revenues of $12.73 billion. This represents a 20.1% decrease in net income and a 3.6% decrease in total revenues from 2008, when the company earned $1.36 billion on $13.21 billion in revenue.

Business Segments[4]

U.S. Franchised Electric and Gas (85.6% of EBIT)

U.S. Franchised Electric and Gas (now U.S. Franchised Electric post Spectra spin-off), operates in North Carolina, South Carolina, Indiana, Ohio and Kentucky.

Commercial Power (1.0% of EBIT)

Owns and operates unregulated power plants primarily within the Midwest. Develops, owns and operates electric generation sources that serve large energy consumers, municipalities, utilities and industrial facilities.

Duke Energy International (13.5% of EBIT)

Operations are located in Central and South America with approximately 4,000 MW of generation, primarily hydroelectric, in six countries: Argentina, Brazil, Ecuador, El Salvador, Guatemala and Peru.

IMAGE:DUK-Segments2009.jpg[4]

Key Trends/Forces

Rising Fossil Fuel Prices

Prices for fossil fuels, the key energy input for many of Duke’s electrical generation plants, have risen steadily over the past few years with the price of oil approximately quadrupling since the year 2000.[5] The booming overseas growth from industrializing counties such as China and India have pushed fossil fuel demand and prices new to new heights. To hedge against a sustained high energy price environment, Duke Energy, other utility companies and the government, have been forced to look at alternate means of energy production which are cost effective and clean. Duke which only produces 56% of its energy from coal, is already well below the industry average in its use of fossil fuels.

Nuclear Power & Electricity Generation

The key difference between nuclear and fossil plants is the cost structure. Nuclear plants require very large capital investments (to construct the plant) but little expenditure for fuel because it takes relatively little uranium to power a plant. On the other hand, fossil fuel plants require relatively little capital investment but have high fuel costs because they require large amounts of coal, oil or gas. In the past, low fossil fuel prices gave given fossil fuel plants a cost advantage over nuclear plants. The cost advantage, compounded by the stigmas of nuclear energy (the not in my backyard phenomenon) has prevented new nuclear construction for almost 30 years.[6] Record fossil fuel prices have begun to reverse this trend. The possibility and implications of peak oil may reinforce this reversal. Already, nuclear utilities such as Duke Energy, Exelon and Entergy have begun filing for permits for construction of new nuclear plants.

Of course, it is critical to remember that a substantial portion of Duke Energy's business remains vulnerable to rising energy prices and could see a negative impact on earnings if fossil fuel prices continue to rise.

In all, the legislative environment is favorable for Duke Energy. Increasing concern over global warming makes US carbon emission legislation likely in the short to midterm. Because a significant portion of Duke's portfolio is in nuclear energy any legislation based on carbon trading markets will allow Duke to offset emissions at its carbon based plants with carbon credits from its renewable and nuclear plants.

Global Warming and Environmentalism

Over the past few years, global warming has moved from the fringes to become one of the single greatest single challenges facing the world today. A growing body of scientific evidence ties carbon dioxide emissions to rising temperatures. As a result of growing popular awareness of the risks of global warming, many large corporations have stepped up their efforts to project greener images. Additionally, many expect the U.S. government to enact more stringent legislation limiting carbon emissions. Environmental awareness is another key trend driving the renaissance of nuclear energy. Compared to their fossil fuel peers, nuclear energy plants have negligible emissions. Duke operates a number of hydroelectric, alternative and renewable energy plants. The company recently began to push for higher efficiency standards and other environmentally friendly state policies in the areas it operates, probably hoping that a paradigm shift will facilitate a shift towards renewable energy, ultimately benefiting the company.

Competition

Duke's competitors include:

References

  1. [Segments]
  2. DUK's Energy Business Segments
  3. DUK 2009 10-K pg. 33  
  4. 4.0 4.1 DUK 2009 10-K pg. 39  
  5. NYTimes (9/13/07) - Crude Oil Price Closes above $80
  6. Scientific American (9/26/07) - Nuclear Power Reborn
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