News Release
April 11, 2003

DUKE ENERGY WILL EXIT PROPRIETARY TRADING AT ITS NORTH AMERICAN MERCHANT ENERGY BUSINESS

CHARLOTTE, N.C.  – Duke Energy announced today that it will discontinue proprietary trading at its North American merchant energy businesses, Duke Energy North America (DENA) and Duke Energy Merchants (DEM).

 

“As we continue to focus our resources on the most profitable segments of our enterprise, we have decided to discontinue participation in the proprietary trading operation at DENA and DEM,” said Fred Fowler, president and chief operating officer of Duke Energy. “The closure of these proprietary trading groups will reduce our risk profile and collateral needs and is consistent with our strategy of sizing our business to market realities.”

 

The company had pursued interests in crude oil, natural gas and power proprietary trading in the United States as well as the proprietary trading of crude oil in Europe. Gross margin from proprietary trading has historically represented less than 10 percent of the overall merchant energy gross margin.

 

“Our proprietary trading operations had already been scaled back in recent months," said Robert T. Ladd, president of DENA. “By exiting proprietary trading, we can further align our trading and marketing efforts more closely around our contractual and physical assets, which include generation, gas transportation and storage.”

 

Duke Energy is a diversified multinational energy company with an integrated network of energy assets and expertise. The company manages a dynamic portfolio of natural gas and supply, delivery and trading businesses – meeting the energy needs of customers throughout North America and in key markets around the world. Duke Energy, headquartered in Charlotte, N.C., 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.

 

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 forward-looking statements herein include legislative and regulatory developments; the outcomes of litigation and regulatory proceedings or inquiries; the effectiveness of the company's risk management and internal controls systems; the timing and extent of changes in 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; conditions of the capital markets and equity markets during the periods covered by the forward-looking statements; and other factors discussed in Duke Energy's filings with the Securities and Exchange Commission.

 

 

 

Contact: Terry Francisco
Phone: 704/373-6680
24 Hour Phone: 704/382-8333
Email: thfrancisco@duke-energy.com
Contact: Kate Perez
Phone: 713/373-6680
24 Hour Phone: 704/382-8333
Email: kcperez@duke-energy.com