News Release
January 28, 2003

DUKE ENERGY REPORTS 2002 AND FOURTH QUARTER RESULTS

CHARLOTTE, N.C. -- Duke Energy reported 2002 earnings of $1.22 per share, or $1.03 billion in net income, compared to $2.45 per share, or $1.9 billion in 2001. Before certain charges disclosed in its third and fourth quarters, ongoing 2002 EPS was $1.88, or $1.57 billion in net income, compared with 2001 ongoing EPS of $2.64, or $2.03 billion in net income.

"Our regulated power and natural gas businesses remained strong in 2002, but we suffered from the effects of the sharp downturn in the energy merchant sector," said Richard B. Priory, chairman and chief executive officer. "To manage the impact of the merchant downturn and a sluggish economy, we have cut costs and downsized across the enterprise.

"Our watchword in 2003 is discipline. We are focused on operational efficiency, cash generation and capital management to preserve our financial strength. We have realigned our businesses to address current market realities and restructured our management team to lead effectively through these tough times. Both of these changes will position us well for growth with the inevitable recovery of the market."

In the fourth quarter of 2002, Duke Energy reported a loss of 6 cents per share, or a $52 million net loss, compared with earnings of 29 cents per share, or $225 million in net income, in the fourth quarter of 2001. Ongoing EPS for the fourth quarter of 2002 was 32 cents, or $290 million in net income before charging certain items primarily related to the company’s merchant energy and Franchised Electric businesses. This compares to ongoing EPS of 35 cents in the fourth quarter of 2001, or $271 million in net income.

As previously indicated, there are certain charges in fourth quarter 2002 reported results that are not ongoing in nature. The charges are as follows:

Fourth Quarter 2002 Items EBIT Impact
(million $)
EPS Impact (cents)
Impairment of goodwill at Duke Energy International for European gas trading*
194
22
Expenses at Franchised Electric associated with December 2002 ice storm
89
6
Severance charges, including corporate-level severance of $18 million
70
4
Asset impairments at Field Services*
28
2
Information technology system write-off at Duke Energy North America*
24
2
Previously announced settlement with North Carolina Utility Commission and Public Service Commission of South Carolina
19
1
Demobilization costs at Duke Energy North America
10
1
TOTAL
434
38

* Non-cash items
Of the $434 million in charges described above, $246 million are non-cash items.

Fourth quarter 2001 results included charges of $79 million, or 6 cents per share, related to the Enron bankruptcy and refinement of estimating factors used to calculate unbilled kilowatt-hour sales at Franchised Electric.

Earnings before interest and taxes (EBIT) were $393 million in the fourth quarter of 2002, compared with $571 million in the fourth quarter of 2001. EBIT for 2002 was $2.87 billion, compared with $4.26 billion in 2001. Excluding certain charges, 2002 ongoing EBIT was $3.62 billion. Ongoing EBIT in 2001 was $4.34 billion. The reduction is primarily due to substantially lower results at Duke Energy North America.

Earlier this month, Duke Energy announced that it expects 2003 ongoing EPS of between $1.35 and $1.60, excluding the effects of changes in accounting principles that were adopted Jan. 1, 2003, and will be taken in first quarter 2003.

These accounting changes include (1) a one-time charge as a result of the implementation of EITF 02-03, which changes the timing of earnings recognition for certain energy trading contracts, and (2) a small, one-time charge for the implementation of SFAS 143, "Accounting for Asset Retirement Obligations."

BUSINESS UNIT RESULTS

Natural Gas Transmission
The Natural Gas Transmission segment reported fourth quarter 2002 EBIT of $307 million, a 107-percent increase over the $148 million in the fourth quarter of 2001. Results included earnings from Westcoast Energy, acquired in March 2002, which contributed $154 million to fourth quarter 2002 EBIT. Included in Natural Gas Transmission's fourth quarter results were $9 million in severance costs.

EBIT for Natural Gas Transmission in 2002 was $1.17 billion, compared to $608 million in 2001. Westcoast Energy contributed $416 million to Gas Transmission’s 2002 results. The company expects EBIT of approximately $1.2 billion for Natural Gas Transmission in 2003.

Franchised Electric
Fourth quarter 2002 EBIT from Franchised Electric was $249 million, compared to $203 million for fourth quarter 2001. Included in these results are charges in fourth quarter 2002 of $89 million for expenses related to the December 2002 ice storm, $19 million for a previously announced settlement agreement with the North Carolina Utilities Commission and the Public Service Commission of South Carolina, and $14 million for severance costs. These charges were more than offset by favorable weather conditions and lower operating expenses at its power plants. Last year’s fourth quarter EBIT included a charge of $36 million for a refinement in the estimating factors used to calculate unbilled kilowatt-hour sales. EBIT for Franchised Electric in 2002 was $1.61 billion compared to $1.63 billion in 2001.

The company expects EBIT of approximately $1.6 billion for Franchised Electric in 2003, as a slow economy negatively impacts sales to industrial customers, and the company begins to amortize costs related to the 2002 clean air legislation in North Carolina.

Duke Energy North America
DENA, which includes Duke Energy's 60-percent share in Duke Energy Trading & Marketing, reported EBIT of $22 million in the fourth quarter of 2002, compared to EBIT of $177 million in the fourth quarter of 2001. Results in the fourth quarter of 2002 include charges of $24 million for an information technology system write-off, $10 million in plant demobilization costs and $7 million in severance charges. In the fourth quarter of 2001, DENA took a charge of $12 million related to the Enron bankruptcy.

DENA’s 2002 EBIT was $165 million compared to $1.49 billion in 2001. The 2002 results were below 2001 primarily due to low price volatility levels, reduced spark spreads, decreased market liquidity and asset write-downs.

The company expects EBIT from DENA of approximately $200 million in 2003.

Field Services
The Field Services business segment, which represents Duke Energy's 70-percent interest in Duke Energy Field Services (DEFS), reported fourth quarter 2002 EBIT of $27 million compared to $54 million in the fourth quarter of 2001. Results were negatively impacted by asset impairments of approximately $28 million and increased costs, primarily due to higher operating, maintenance and other expenses. Field Services benefited during the fourth quarter from relatively strong Natural Gas Liquids (NGL) prices, which were partially offset by higher natural gas prices.

EBIT in 2002 for Field Services was $126 million compared to $336 million in 2001.

The company expects EBIT of approximately $200 million from Field Services in 2003.

Duke Ventures
The Duke Ventures business segment, comprised of Crescent Resources, DukeNet Communications and Duke Capital Partners, reported EBIT of $121 million in the fourth quarter of 2002, compared to $89 million in the fourth quarter of 2001. Results were positively affected by increased residential and commercial land sales at Crescent Resources.

EBIT for Duke Ventures in 2002 was $204 million compared to $183 million in 2001.

International Energy
For fourth quarter 2002, Duke Energy International (DEI) reported an EBIT loss of $211 million, compared to fourth quarter 2001 positive EBIT of $68 million. The decline in EBIT is principally due to a $194 million impairment of goodwill at the company’s European gas trading and marketing business, originally recorded in connection with the company’s acquisition of Mobil Europe Gas Inc. (MEGAS) in 2000. The impairment is due to the company’s revised market outlook for the European natural gas trading market. Included in DEI's fourth quarter results were $4 million in severance costs. Other factors contributing to the fourth quarter decline in EBIT included (1) losses in Europe related in part to difficult market conditions and the company’s decision to exit power trading there, (2) a $22 million increase in reserves associated with non-performance by the supplier under a liquefied natural gas contract and (3) weak performance in Brazil.

DEI reported an EBIT loss of $102 million for 2002, compared to a positive EBIT of $286 million in 2001.

The company expects EBIT of approximately $250 million from International Energy in 2003.

Other Energy Services
Other Energy Services, including Duke/Fluor Daniel (D/FD) and Duke Energy Merchants (DEM), reported an EBIT loss of $29 million for fourth quarter 2002 versus an EBIT loss of $47 million in fourth quarter 2001. Fourth quarter 2002 EBIT was impacted by negative results at DEM and $18 million of severance charges at D/FD. Fourth quarter 2001 results included a charge of $24 million at DEM due to the Enron bankruptcy.

EBIT for Other Energy Services in 2002 was $63 million compared to an EBIT loss of $149 million in 2001.

INTEREST EXPENSE

Interest expense was $341 million for fourth quarter 2002, compared to $179 million for fourth quarter 2001. Interest expense for 2002 was $1.11 billion, compared to $785 million in 2001. These increases were primarily due to debt acquired in conjunction with the Westcoast Energy acquisition. Interest expense for 2003 is expected to be approximately $1.4 billion.

CASH FLOW

For 2002, cash flow provided by operations was $4.7 billion, compared to $4.6 billion in 2001. In 2003, Duke Energy expects cash flow from operations, including normal asset sales at Crescent Resources and divestitures at other business units, to more than adequately fund capital expenditures of approximately $3.2 billion and the approximately $1 billion needed to fund the $1.10 per share dividend. The company's business plans for 2003 fully support the dividend at this level.

LIQUIDITY AND CAPITAL RESOURCES

Duke Energy's consolidated capital structure as of Dec. 31, 2002, including short-term debt, was 55 percent debt, 36 percent common equity, 5 percent minority interests and 4 percent preferred securities.

Under various credit facilities, Duke Energy, Duke Capital and other subsidiaries had the ability to borrow up to $5.6 billion as of Dec. 31, 2002. The companies had borrowings and letters of credit outstanding under these programs of approximately $2.7 billion as of Dec. 31, 2002, resulting in unused capacity of approximately $2.9 billion. The company also had approximately $850 million in cash and cash equivalents at Dec. 31, 2002.

TRADING AND RISK MANAGEMENT DISCLOSURE TABLES

Last year Duke Energy played a leading role in the formation of the Committee of Chief Risk Officers (CCRO). The committee is composed of chief risk officers from more than 30 leading companies that are active in both physical and financial energy trading and marketing. The mission of the CCRO is to define industry best practices for risk management and develop common measures to provide enhanced transparency for evaluating energy trading activity and risk estimation. Duke Energy supports the CCRO as a platform to establish industry practices that benefit market participants, investors and consumers.

In November, the CCRO released a white paper that addressed risk management disclosures. The CCRO put forth recommended disclosures that seek to assist in quick and efficient comparisons of a company’s performance with others in the industry.

Duke Energy is introducing enhanced information to investors regarding the activities and risks involved in DENA’s energy trading and risk management activities, in line with the recommendations of the CCRO. The tables are listed below.

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.

An earnings conference call for analysts is scheduled for 10 a.m. ET today. The conference call can be accessed via the investors' section of Duke Energy's Web site or by dialing 800/946-0783 in the United States or 719/457-2658 outside the United States. The confirmation code is 776876. Please call in 5 to10 minutes prior to the scheduled start time. A replay of the conference call will be available through Feb. 9 by dialing 888/203-1112 with a confirmation code of 776876. The international replay number is 719/457-0820. A replay and transcript also will be available by accessing the investors' section of the company's Web site.

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: 704/382-8333

 

Duke Energy Corporation
Additional Disclosures
Year Ended December 31, 2002
     
     
 
4Q02
3Q02
 

Total mark-to-market portfolio value ($ in billions)
0.4 
0.7 
 
Unrealized Mark-to-Market margin (loss) ($ in millions)
(65)
(161)
 
Daily earnings at risk - average for period ($ in millions)
11 
12 

 

Duke Energy North America
Additional Disclosures
Year Ended December 31, 2002
               
Merchant Plant-Owned Assets Production & Hedging Information
2003
2004
2005
       




       
Estimated available production
(in millions of MWH)
89 
99 
108 
       
 % Combined cycle
79%
81%
80%
       
 % Peaker units
21%
19%
20%
       
 
       
Estimated production (in millions of MWH)
28 
34 
42 
       
 Combined cycle
27 
32 
39 
       
 Peaker units
       
 
       
Hedges
       
 Estimated production hedged
102%
79%
64%
       
 Averaged price hedged ($/MWH)
$51
$44
$39
       
               
               
Maturity/Source of Fair Value for Energy Contract Net Assets ($ in millions)
2003
2004
2005
2006
2007
Over 5 Years
Total Fair Value








               
Proprietary Trading/Structured Contracts              
 Actively quoted prices & other external sources
85 
117 
(9)
(1)
(1)
191 
 Modeled
23 
(3)
39 
67 
55 
209 
390 
 






Total
108 
114 
30 
66 
54 
209 
581 
 






 
Owned Assets
 Actively quoted prices & other external sources
311 
190 
50 
551 
 Modeled
10 
64 
70 
48 
86 
278 
 






Total
311 
200 
114 
70 
48 
86 
829 
 






 
Total - All Sources
1,410 
               
               
               
               
Portfolio Valuation ($ in billions)
4Q02
3Q02
         



         
               
Merchant generation portfolio
5.2
5.3
         
               
               
Realization Period
(cumulative percentages)
2003
2004
2005
       




       
               
Merchant generation portfolio
10%
19%
30%
       

 

DECEMBER 2002
QUARTERLY HIGHLIGHTS
         
 
Three Months Ended December 31,
Twelve Months Ended December 31,
 
 

(In millions, except where noted)
2002
2001
2002
2001

COMMON STOCK DATA        

 Earnings Per Share
 (before cumulative effect
 of change in accounting principle)

       
  Basic
$(0.06)
$0.29 
$1.22 
$2.58 
  Diluted
$(0.06)
$0.28 
$1.22 
$2.56 
 Earnings Per Share
  Basic
$(0.06)
$0.29 
$1.22 
$2.45 
  Diluted
$(0.06)
$0.28 
$1.22 
$2.44 
 Dividends Per Share
$0.275 
$0.275 
$1.100 
$1.100 
 Weighted Average Shares Outstanding
  Basic
892 
776 
836 
767 
  Diluted
893 
781 
838 
773 
 

INCOME
 Operating Revenues
$4,000 
$3,849 
$15,186 
$18,525 
 



 Earnings Before Interest and
 Taxes (EBIT)
393 
571 
2,869 
4,256 
 Interest Expense
341 
179 
1,110 
785 
 Minority Interests (a)
(1)
60 
107 
327 
 Income Taxes
105 
107 
618 
1,150 
 Cumulative Effect of Change in
 Accounting Principle, Net of Tax
96 
 



 Net (Loss) Income
(52)
225 
1,034 
1,898 
 Preferred Stock Dividends and
 Redemption Premiums
13 
14 
 



 Earnings Available for Common  Stockholders
$(55)
$223 
$1,021 
$1,884 
 



 

CAPITALIZATION
  Common Equity
36%
41%
  Preferred Stock
1%
1%
  Trust Preferred Securities
3%
5%
     

 Total Common Equity and
 Preferred Securities
40%
47%
 
 Minority Interest
5%
7%
 Total Debt
55%
46%
 

 Fixed Charges Coverage, using
 SEC guidelines
2.0 
3.8 
 Total Debt
$22,465 
$14,185 
 Book Value Per Share
$16.72 
$16.33 
 Actual Shares Outstanding
895 
777 

CAPITAL AND INVESTMENT EXPENDITURES
  Franchised Electric
$402 
$365 
$1,269 
$1,115 
  Natural Gas Transmission (b)
370 
224 
2,878 
748 
  Field Services
59 
132 
309 
587 
  Duke Energy North America (c)
255 
783 
2,013 
3,213 
  International Energy
62 
178 
412 
442 
  Other Energy Services (c)
12 
32 
72 
  Duke Ventures
76 
218 
459 
773 
  Other Operations (d)
(33)
(23)
90 
  Cash acquired in acquisitions
(11)
(77)
(17)
 



 Total Capital and Investment
 Expenditures
$1,196 
$1,908 
$7,272 
$7,023 
 



 

EBIT BY BUSINESS SEGMENT
  Franchised Electric
$249 
$203 
$1,608 
$1,631 
  Natural Gas Transmission
307 
148 
1,174 
608 
  Field Services
27 
54 
126 
336 
  Duke Energy North America
22 
177 
165 
1,487 
  International Energy
(211)
68 
(102)
286 
  Other Energy Services
(29)
(47)
63 
(149)
  Duke Ventures
121 
89 
204 
183 
  Other Operations
(81)
(160)
(406)
(357)
 



 Total Segment EBIT
405 
532 
2,832 
4,025 
  EBIT Attributable to Minority
  Interests
(12)
39 
37 
231 
 



 Total EBIT
$393 
$571 
$2,869 
$4,256 
 




         
         
(a) Includes expense related to preferred securities of subsidiaries of $27 million and $36 million for the three months ended and $130 and $161 million for the twelve months ended December 31, 2002 and 2001, respectively.
(b) Twelve months ended December 31, 2002 amount includes $1.7 billion (net of cash acquired) paid to Westcoast Energy shareholders related to the acquisition.
(c) Prior to June 30, 2002, the Duke Energy North America business segment was combined with Duke Energy Merchants Holdings, LLC (DEM) to form a segment called North American Wholesale Energy. During 2002, management combined DEM with the Other Energy Services segment.
(d) Other Operations includes corporate, net of elimination of intersegment capital expenditures.
Note: Prior year information has been restated to conform to current year presentation
         

 

DECEMBER 2002
QUARTERLY HIGHLIGHTS
 
 
Three Months Ended December 31,
Twelve Months Ended December 31,
 
 

(In millions, except where noted)
2002
2001
2002
2001

FRANCHISED ELECTRIC
 Operating Revenues
$1,153 
$1,004 
$4,888 
$4,746
 Operating Expenses
895 
818 
3,329 
3,185
 Other (Expenses) Income
(9)
17 
49 
70
 



 EBIT
$249 
$203 
$1,608 
$1,631
 



 
 Sales, GWh
20,593 
17,536 
83,783 
79,685
 

NATURAL GAS TRANSMISSION
 Operating Revenues
$779 
$288 
$2,602 
$1,105
 Operating Expenses
466 
141 
1,420 
504
 Other Income
23 
7
 Minority Interest Expense
10 
31 
-
 



 EBIT
$307 
$148 
$1,174 
$608
 



 
 Proportional Throughput, TBtu
983 
451 
3,160 
1,781
 

FIELD SERVICES
 Operating Revenues
$1,377 
$1,691 
$4,712 
$8,078
 Operating Expenses
1,343 
1,621 
4,551 
7,581
 Other Income
1
 Minority Interest Expense
22 
36 
162
 



 EBIT
$27 
$54 
$126 
$336
 



 
 Natural Gas Gathered and  Processed/Transported, TBtu/day
8.2 
8.7 
8.3 
8.6
 Natural Gas Liquids Production, MBbl/d
391.6 
402.9 
391.9 
397.2
 Natural Gas Marketed, TBtu/day
1.6 
1.6 
1.6 
1.6
 Average Natural Gas Price per MMBtu
$3.98 
$2.45 
$3.22 
$4.27
 Average Natural Gas Liquids Price
 per Gallon
$0.45 
$0.31 
$0.38 
$0.45
 

DUKE ENERGY NORTH AMERICA
 Operating Revenues
$417 
$485 
$1,596 
$3,297
 Operating Expenses
453 
301 
1,507 
1,768
 Other Income
30 
33 
2
 Minority Interest (Benefit) Expense
(28)
10 
(43)
44
 



 EBIT
$22 
$177 
$165 
$1,487
 



 
 Natural Gas Marketed, TBtu/day
14.7 
12.2 
16.8 
12.3
 Electricity Marketed and Traded, GWh
150,629 
135,567 
546,245 
334,517
 Proportional MW Capacity in Operation
14,156 
6,799
 Estimated Proportional Investment in  Operating Project Net Assets
$4,663 
$2,036
 

INTERNATIONAL ENERGY
 Operating Revenues
$178 
$268 
$937 
$830
 Operating Expenses
402 
198 
1,081 
557
 Other Income
12 
57 
36
 Minority Interest (Benefit) Expense
(1)
15 
23
 



 EBIT
$(211)
$68 
$(102)
$286
 



 
 Sales, GWh (a)
5,860 
5,014 
21,443 
18,896
 Natural Gas Marketed, TBtu/day
4.2 
2.9 
4.2 
2.7
 Electricity Marketed and Traded, GWh
32,848 
6,094 
95,591 
12,719
 Proportional MW Capacity in Operation
4,792 
4,568
 Proportional Maximum Pipeline Capacity  in Operation, MMcf/d
363 
255
 Estimated Proportional Investment in  Operating Project Net Assets
$2,935 
$2,995
 

OTHER ENERGY SERVICES
 Operating Revenues
$(82)
$171 
$405 
$531
 Operating Expenses
(53)
219 
359 
685
 Other Income
17 
5
 



 EBIT
$(29)
$(47)
$63 
$(149)
 



 

DUKE VENTURES
 Operating Revenues
$323 
$253 
$547 
$646
 Operating Expenses
202 
162 
346 
461
 Other Income
-
 Minority Interest (Benefit) Expense
(2)
2
 



 EBIT
$121 
$89 
$204 
$183
 



 
 

(a) Represents GWh sold by the operating assets to consumers, industrial users, etc.

 

DUKE ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per-share amounts)
           
           
     
Years Ended December 31,
     
     
2002
2001
     

 
Operating Revenues          
 Sales of natural gas and petroleum products  
$4,056 
$6,170 
 
 Generation, transmission and distribution of electricity  
7,075 
7,222 
 
 Transportation and storage of natural gas  
1,560 
994 
 
 Trading and marketing net margin  
1,084 
2,409 
 
 Other  
1,411 
1,730 
 
     

 
  Total operating revenues
15,186 
18,525 
 
     

 
     
 
Operating Expenses    
 
 Natural gas and petroleum products purchased  
3,926 
6,489 
 
 Net interchange and purchased power  
643 
451 
 
 Operation and maintenance  
4,168 
4,135 
 
 Fuel used in electric generation  
1,606 
1,583 
 
 Depreciation and amortization  
1,571 
1,336 
 
 Property and other taxes  
535 
431 
 
     

 
  Total operating expenses
12,449 
14,425 
 
     

 
     
 
Operating Income    
2,737 
4,100 
 
     
 
Other Income and Expenses  
132 
156 
 
Interest Expense    
1,110 
785 
 
Minority Interest Expense    
107 
327 
 
     

 
     
 
Earnings Before Income Taxes  
1,652 
3,144 
 
Income Taxes    
618 
1,150 
 
     

 
     
 
Income Before Cumulative Effect of Change
in Accounting Principle
1,034 
1,994 
 
Cumulative Effect of Change in Accounting Principle,
net of tax
(96)
 
     

 
     
 
Net Income    
1,034 
1,898 
 
     
 
Preferred and Preference Stock Dividends  
13 
14 
 
     

 
     
 
Earnings Available For Common Stockholders  
$1,021 
$1,884 
 
     

 
     
 
Common Stock Data    
 
 Weighted-average shares outstanding  
836 
767 
 
 Earnings per share (before cumulative effect of
 change in accounting principle)
 
 
  Basic
$1.22 
$2.58 
 
  Diluted
$1.22 
$2.56 
 
 Earnings per share
 
  Basic
$1.22 
$2.45 
 
  Diluted
$1.22 
$2.44 
 
 Dividends per share  
$1.10 
$1.10 
 

 

DUKE ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(In millions)
       
       
 
December 31,
 
 
2002
2001
 

ASSETS    
     
Current Assets    
 Cash and cash equivalents
$857 
$290 
 Receivables
6,766 
5,301 
 Inventory
1,134 
1,017 
 Unrealized gains on mark-to-market and hedging transactions
2,144 
2,326 
 Other
951 
667 
 

  Total current assets
11,852 
9,601 
 

 
Investments and Other Assets
 Investments in affiliates
2,066 
1,480 
 Nuclear decommissioning trust funds
708 
716 
 Goodwill, net of accumulated amortization
3,651 
1,730 
 Notes receivable
589 
576 
 Unrealized gains on mark-to-market and hedging transactions
2,480 
3,117 
 Other
1,737 
1,612 
 

  Total investments and other assets
11,231 
9,231 
 

 
Property, Plant and Equipment
 Cost
48,788 
39,464 
 Less accumulated depreciation and amortization
12,458 
11,049 
   

  Net property, plant and equipment  
36,330 
28,415 
   

   
Regulatory Assets and Deferred Debits  
 Deferred debt expense
263 
203 
 Regulatory asset related to income taxes
417 
510 
 Other
980 
571 
   

  Total regulatory assets and deferred debits  
1,660 
1,284 
   

   
Total Assets  
$61,073 
$48,531 
   

       
Certain 2001 amounts have been reclassified to conform with the 2002 presentation.
       

 

DUKE ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(In millions)
         
         
     
December 31,
     
     
2002
2001
     

LIABILITIES AND COMMON STOCKHOLDERS' EQUITY        
         
Current Liabilities        
 Accounts payable  
$5,590 
$4,231 
 Notes payable and commercial paper  
915 
1,603 
 Taxes accrued  
156 
443 
 Interest accrued  
310 
239 
 Current maturities of long-term debt and preferred stock  
1,331 
274 
 Unrealized losses on mark-to-market and hedging transactions  
1,918 
1,519 
 Other  
1,770 
2,146 
 

  Total current liabilities
11,990 
10,455 
     

     
Long-term Debt    
20,221 
12,321 
     

     
Deferred Credits and Other Liabilities    
 Deferred income taxes  
5,104 
4,307 
 Investment tax credit  
176 
189 
 Nuclear decommissioning costs externally funded  
708 
716 
 Environmental cleanup liabilities  
32 
85 
 Unrealized losses on mark-to-market and hedging transactions  
1,548 
2,212 
 Other  
2,867 
1,670 
 

  Total deferred credits and other liabilities
10,435 
9,179 
     

     
Commitments and Contingencies  
     
Guaranteed Preferred Beneficial Interests in Subordinated  
Notes of Duke Energy Corporation or Subsidiaries  
1,408 
1,407 
     

     
Minority Interest in Financing Subsidiary  
1,025 
     

     
Minority Interests    
1,904 
1,221 
     

     
Preferred and Preference Stock  
 Preferred and preference stock with sinking fund requirements  
23 
25 
 Preferred and preference stock without sinking fund requirements  
134 
209 
 

  Total preferred and preference stock
157 
234 
     

     
Common Stockholders' Equity  
 Common stock, no par, 2 billion shares authorized; 895 million
 and 777 million shares outstanding at December 31, 2002
 and 2001, respectively
9,236 
6,217 
 Retained earnings  
6,417 
6,292 
 Accumulated other comprehensive income (loss)  
(695)
180 
 

  Total common stockholders' equity
14,958 
12,689 
     

     
Total Liabilities and Common Stockholders' Equity  
$61,073 
$48,531 
     

         
Certain 2001 amounts have been reclassified to conform with the 2002 presentation.
         

 

DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
       
Years Ended
December 31,
       
       
       
2002
2001
 

CASH FLOWS FROM OPERATING ACTIVITIES    
 Net income
$1,034 
$1,898 
 Adjustments to reconcile net income to net cash provided by   operating activities:  
 
  Depreciation and amortization  
1,695 
1,450 
  Changes in working capital and other  
1,927 
1,247 
 

   Net cash provided by operating activities
4,656 
4,595 
       
CASH FLOWS USED IN INVESTING ACTIVITIES    
(6,935)
(6,281)
       
CASH FLOWS FROM FINANCING ACTIVITIES    
2,846 
1,354 
 

       
 Net increase (decrease) in cash and cash equivalents    
567 
(332)
 Cash and cash equivalents at beginning of year    
290 
622 
 

 Cash and cash equivalents at end of year    
$857 
$290