DUKE ENERGY’S SECOND QUARTER EARNINGS RISE 14 PERCENT

CHARLOTTE, N.C. -- Duke Energy (NYSE: DUK) today reported earnings of $0.88 per share for the second quarter of 2000, a 14-percent increase over the $0.77 per share earned in the same period last year, due primarily to the success of its high-growth energy businesses.

Gas and electric businesses contributed to the overall strong performance, as wholesale and retail energy operations showed increased quarter-over-quarter earnings. Total revenues for the quarter increased 133 percent over last year to $10.9 billion. Earnings before interest and taxes (EBIT) totaled $837 million, a 47-percent increase over the $568 million earned in 1999.

Richard B. Priory, Duke Energy’s chairman, president and chief executive officer, said the second-quarter results keep the company on course toward achieving earnings at the high end of its target growth range for the year.

"The strong earnings performance this quarter confirms our commitment to deliver outstanding value to investors," Priory said. "A solid strategy, executed with excellence by all our business lines, has transformed Duke Energy into a leader in delivering operational and financial results."

In the second quarter, the company’s high-growth Energy Services businesses, which include the North American Wholesale Energy, International Energy and Other Energy Services business segments, posted EBIT of $199 million for the quarter, a 665-percent increase over the same period last year. Year-to-date EBIT totaled $386 million versus $65 million in 1999, a 494-percent increase.

The North American Wholesale Energy business segment reported second quarter EBIT of $106 million, a 293-percent gain over the same period last year. The increase is due primarily to the strength and volatility of natural gas and electricity prices, availability of merchant generation facilities and solid trading results by Duke Energy North America (DENA). DENA also brought an unprecedented four generation facilities online in June, adding 2,300 megawatts of new capacity in time to help meet summer demand for electricity in the Midwest, Northeast and Texas. Earnings also grew as a result of new business initiatives at Duke Energy Merchants.

The International Energy business segment, comprised of the Asia Pacific, Latin America and Europe regional subsidiaries of Duke Energy International (DEI), delivered EBIT of $84 million, or approximately 1,580 percent over the $5 million earned in the year-ago quarter, primarily due to the strong performance of DEI’s Latin American business and continued solid results from Asia Pacific.

The Other Energy Services business segment, comprised of Duke/Fluor Daniel, DukeSolutions and Duke Engineering & Services, reported second quarter EBIT of $9 million, a $15 million increase over the same quarter last year. The increase is due to new business and improved gross margins across all three businesses.

"Our Energy Services business group is the fastest growing earnings engine in our portfolio," Priory said. "And like an efficiently running engine, Energy Services is hitting on all cylinders, leveraging Duke Energy’s core commercial, development, construction, operation, risk management and trading skills to build integrated regional energy businesses around the world."

Field Services, the company’s natural gas gathering and processing business segment, reported second quarter EBIT of $68 million, an 89-percent increase over the $36 million earned last year. The increase is primarily attributable to the first-quarter combination of Duke Energy's gas gathering and processing business with Phillips Petroleum's Gas Processing and Marketing unit into a new company, named Duke Energy Field Services. Also contributing to the growth were strong commodity prices and the acquisition of gathering and processing assets in central Oklahoma from Conoco Inc. and Mitchell Energy & Development Corp. in the first quarter.

The Natural Gas Transmission segment reported second quarter EBIT of $121 million, a $3 million increase over the same period last year, excluding a $28 million benefit from the successful completion of Texas Eastern’s environmental clean-up program in the second quarter of 1999. Second-quarter earnings increased as a result of expansion projects, particularly the connection to electric generation projects, and from the completion of the East Tennessee Natural Gas Company acquisition during the first quarter.

The Franchised Electric business segment, comprised of Duke Power and Electric Transmission, reported second quarter EBIT of $365 million, a 14-percent increase over the $319 million earned last year, primarily due to growth in customers and warm weather. The increase was partially offset by storm-damage costs incurred in May.

The Duke Ventures business segment, comprised of Crescent Resources, DukeNet Communications and Duke Capital Partners, reported second-quarter EBIT of $13 million, an $11 million decrease from the $24 million earned in the same period last year. The decrease is the result of a decline in Crescent Resources’ land sales - primarily due to the 1999 sale of land in the Jocassee region to the state of North Carolina - and residential developed lot sales. The results were partially offset by earnings from DukeNet Communications, Duke Energy’s telecommunications business.

For the first two quarters, the company earned $1.94 per share, a 21-percent increase over the $1.60 per share before extraordinary items earned in the first half of 1999. Year-to-date revenue increased 105 percent over last year to $18.2 billion. Year-to-date EBIT totaled $1.7 billion, a 36-percent increase over the same period last year.

"Duke Energy’s integration strategy continues to show strong results," Priory said. "Our immersion in regional growth markets means we’re able to convert gas supply, storage, pipelines, power generation, risk management and trading capabilities into lower costs for customers and increased earnings for investors."

Duke Energy, a diversified multinational 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.

Duke Energy Earnings Conference Call: Richard J. Osborne, Duke Energy’s chief financial officer, will discuss second quarter earnings during a conference call scheduled for 2 p.m. EDT Wednesday. Media representatives are invited to listen to the conference by visiting Duke Energy’s web site at www.duke-energy.com or by dialing 800/967-7140 in the United States or 719/457-2629 outside the United States. The confirmation code is 852164. Please call in 5-10 minutes prior to the scheduled start time. A replay of the conference will be available through Tuesday, Aug. 1, on Duke Energy’s web site or by calling 888/203-1112 in the United States or 719/457-0820 outside the United States. The access code is 852164.

This document 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.

June 2000 QUARTERLY HIGHLIGHTS (unaudited)

	Three Months Ended		Six Months Ended
	June 30,		June 30,

(In millions, except where noted)	2000	1999	2000	1999

COMMON STOCK DATA
Earnings Per Share (before extraordinary item)
Basic	$0.88	$0.77	$1.94	$1.60
Dilutive	0.88	0.77	1.93	1.60
Earnings Per Share
Basic	0.88	0.77	1.94	3.42
Dilutive	0.88	0.77	1.93	3.41
Dividends Per Share	1.10	1.10	1.65	1.65
Actual Shares Outstanding	368	365	367	365
Weighted Average Shares Outstanding
Basic	368	364	367	364
Dilutive	369	365	368	365


INCOME
Operating Revenues	$10,926	$4,691	$18,216	$8,869
Earnings Before Interest and Taxes (EBIT)	837	568	1,696	1,251
Interest Expense	228	120	413	252
Minority Interests (a)	89	33	120	68
Income Taxes	191	127	441	336
Extraordinary Gain	-	-	-	660
Net Income	329	288	722	1,255
Preferred Stock Dividends and Redemption Premiums	5	5	10	10
Earnings Available for Common Stockholders	$324	$283	$712	$1,245


CAPITALIZATION
Common Equity			37%	50%
Minority Interest			5%	1%
Preferred Stock			1%	2%
Trust Preferred Securities			6%	7%
Total Debt			51%	40%

SEC Fixed Charges Coverage			3.5	4.3
Total Debt			$13,042	$7,083
Book Value Per Share			25.41	24.32


CAPITAL AND INVESTMENT EXPENDITURES
Franchised Electric	$114	$178	$291	$303
Natural Gas Transmission	39	65	467	107
Field Services	87	92	215	1,537
North American Wholesale Energy	491	262	826	353
International Energy	383	20	830	316
Other Energy Services	5	2	16	10
Duke Ventures	100	98	164	162


EBIT BY BUSINESS SEGMENT
Franchised Electric	$365	$319	$806	$726
Natural Gas Transmission	121	146	273	354
Field Services	68	36	137	48
North American Wholesale Energy (b)	106	27	184	72
International Energy	84	5	186	4
Other Energy Services	9	(6)	16	(11)
Duke Ventures	13	24	30	37
Other Operations	(6)	1	(19)	(16)

Total Segment EBIT	760	552	1,613	1,214
EBIT attributable to Minority Interests	77	16	83	37

Total EBIT	$837	$568	$1,696	$1,251



(a) Includes expense related to the Trust Preferred Securities of $27 million and $18 million for the three months ended and $54 million and $36 million for the six months ended June 30, 2000 and 1999, respectively.
(b) Includes the segment that was previously known as Trading and Marketing.

June 2000 QUARTERLY HIGHLIGHTS (unaudited)

	Three Months Ended		Six Months Ended
	June 30,		June 30,

(In millions, except where noted)	2000	1999	2000		1999

FRANCHISED ELECTRIC
Operating Revenues	$1,158	$1,095	$2,273		$2,156
Operating Expenses	813	796	1,506		1,471
Other Income (Expenses)	20	20	39		41

EBIT	$365	$319	$806		$726


Sales, GWh	20,661	19,787	41,215		39,323


NATURAL GAS TRANSMISSION
Operating Revenues	$281	$260	$567		$662
Operating Expenses	162	116	308		318
Other Income (Expenses)	2	2	14		10

EBIT	$121	$146	$273		$354


Throughput, TBtu	372	340	877		1,151


FIELD SERVICES
Operating Revenues	$2,155	$782	$3,621		$1,126
Operating Expenses	2,044	747	3,437		1,079
Other Income (Expenses)	-	1	(4)		1
Minority Interest Expense	43	-	43		-

EBIT	$68	$36	$137		$48


Natural Gas Gathered and Processed/Transported, TBtu/day	8.0	5.3	7.0		4.4
Natural Gas Liquids Production, MBbl/d	401.5	214.0	316.3		161.1
Natural Gas Marketed, TBtu/day	0.5	0.5	0.5		0.4
Average Natural Gas Price per MMBtu	$3.47	$2.14	$2.99		$1.95
Average Natural Gas Liquids Price per Gallon	$0.47	$0.30	$0.49		$0.27


NORTH AMERICAN WHOLESALE ENERGY
Operating Revenues	$7,062	$2,605	$11,635		$4,972
Operating Expenses	6,920	2,575	11,418		4,885
Other Income (Expenses)	(8)	11	(4)		18
Minority Interest Expense	28	14	29		33

EBIT	$106	$27	$184		$72


Natural Gas Marketed, TBtu/day	11.2	10.0	11.6		10.5
Electricity Marketed, GWh	58,198	22,179	108,551		44,016

Proportional MW Capacity Owned^a	NA	NA	8,473		6,225
^{Estimated Proportional Investment in Project Net Assets^a}	NA	NA	^$2,618	(b)	^$1,951	(b)


INTERNATIONAL ENERGY
Operating Revenues	^$249	^$55	^$457		^$100
Operating Expenses	173	51	288		99
Other Income (Expenses)	14	3	28		7
Minority Interest Expense	6	2	11		4

EBIT	^$84	^$5	^$186		^$4


Proportional MW Capacity Owned a	NA	NA	4,370		906
Proportional Maximum Pipeline Capacity, MMcf/d a	NA	NA	321		321
Estimated Proportional Investment in Project Net Assets a	NA	NA	^$2,963	(c)	^$608	(c)


OTHER ENERGY SERVICES
Operating Revenues	^$138	^$159	^$413		^$313
Other Income (Expenses)	129	165	397		324

EBIT	^$9	^$(6)	^$16		^$(11)



DUKE VENTURES
Operating Revenues	^$33	^$37	^$67		^$63
Operating Expenses	20	13	37		26

EBIT	^$13	^$24	^$30		^$37



(a) Includes under construction or under contract.
(b) Includes total proportional estimated costs to complete projects under construction or under contract of $546 million and $666 million as of June 30, 2000 and 1999, respectively.
(c) Includes total proportional estimated costs to complete projects under construction or under contract of $303 million and $254 million as of June 30, 2000 and 1999, respectively.

Contact:	Paul Mason
Phone:	704/373-4512
24 Hour Phone:	704/382-8333
Email:	pemason@duke-energy.com