News Release
May 4, 2005

DUKE ENERGY REPORTS FIRST QUARTER 2005 RESULTS

  • Reported basic earnings per share of 91 cents versus 34 cents in previous year; 44 cents in ongoing basic EPS versus 34 cents in prior year’s quarter
  • Field Services results led by strong operations and one-time gains
  • Improved operations and minimized mark-to-market movement help DENA cut losses significantly
  • Reduced debt lowers interest expense by $63 million

CHARLOTTE, N.C. – Duke Energy today reported first quarter 2005 basic earnings per share (EPS) of $0.91, or $868 million in net income, compared to $0.34 per share in first quarter 2004, or $311 million. On a diluted basis, first quarter 2005 earnings were $0.88 per share, compared to $0.33 in first quarter 2004.

Ongoing basic EPS for first quarter 2005, which excludes special items, was $0.44 versus $0.34 in first quarter 2004. On a diluted basis, ongoing EPS for first quarter 2005 was $0.43 compared to $0.32 in first quarter 2004.

“It was a great quarter and reflects the actions we took last year to strengthen all our businesses,” said Paul Anderson, Duke Energy chairman of the board and chief executive officer. “The effort we undertook to cut debt in 2004 is showing real results as we reduced interest expense by $63 million.”

Anderson said that Duke Energy North America continued to reduce losses while Field Services had a strong quarter, and International Energy increased its earnings.

Special items impacting basic EPS for the quarter include:

 
Pre-Tax Amount
Tax Effect
2005
EPS Impact
2004
EPS Impact
($ in Millions)        
         

First quarter 2005

       
  • Gain on sale of TEPPCO GP, net of minority interest of $343 million
$791 
($293)
$0.52 
-- 
  • Gain on sale of TEPPCO L.P. units
97 
(36)
0.07 
-- 
  • Loss on de-designation of Field Services’ hedges as a result of the announced transaction with ConocoPhillips
(118)
44 
(0.08)
-- 
  • Mark-to-market losses on de-designated 2005 Field Services’ hedges
(54)
19 
(0.03)
-- 
  • Mutual insurance liability adjustment
(28)
10 
(0.02)
-- 
  • Gain on sale of Grays Harbor
21 
(8)
0.01 
-- 
First quarter 2004
 
 
 
 
  • Gain on sale of Australian assets
$256 
($18)
-- 
$0.26 
  • Net loss on sale of DENA assets, primarily anticipated sale of southeast U.S. plants
(359)
126
-- 
(0.26)
  • Gains on sale of other assets, including Caribbean Nitrogen Co.
14 
(5)
-- 
0.01 
  • Charge related to planned sale of Cantarell investment
(13)
-- 
(0.01)
Total basic EPS impact
$0.47 
$0.00 
  Basic EPS, as reported
$0.91 
$0.34 
  Basic EPS, ongoing *
$0.44 
$0.34 
* Includes results from operations in International Energy and Field Services that have been discontinued.        

BUSINESS UNIT RESULTS

Franchised Electric
First quarter 2005 segment EBIT for Franchised Electric was $336 million, compared to 2004 segment EBIT of $424 million. The decrease was driven by milder winter weather compared to 2004 and higher operating and maintenance expenses resulting from the timing of planned power plant maintenance and outages.

Earnings were also lower due to Duke Power’s bulk power marketing (BPM) profit-sharing program, which did not begin in North Carolina and South Carolina until second quarter 2004. Regulatory amortization expenses for the quarter were $85 million versus $69 million in first quarter 2004.

The impact of continued economic development activity led to industrial sales rising approximately 6 percent from the previous year’s quarter. Franchised Electric also had almost 45,000, or about 2 percent, more customers than in first quarter 2004.

Natural Gas Transmission
Duke Energy Gas Transmission (DEGT) reported first quarter 2005 segment EBIT of $407 million, compared to $398 million in first quarter 2004. The increase was due primarily to U.S. business expansions and the strengthening Canadian currency. This was partially offset by the implementation of a new earnings-sharing mechanism at Union Gas in Canada.

The favorable Canadian currency impacts on DEGT’s EBIT were partially offset in Duke Energy’s consolidated net income by currency impacts on Canadian interest and taxes.

Field Services
The Field Services business segment, which currently represents Duke Energy's 70-percent interest in Duke Energy Field Services (DEFS), reported first quarter 2005 segment EBIT from continuing operations of $921 million compared to $91 million from continuing operations in first quarter 2004.

The increase was due to pre-tax gains realized on the sale of DEFS’ TEPPCO GP of about $791 million, net of minority interest of about $343 million, and the sale of Duke Energy’s TEPPCO LP units of $97 million. Also during the quarter, as a result of the anticipated deconsolidation of DEFS, Field Services recognized a net charge of $118 million related to the de-designation of hedges from accrual to mark-to- market accounting.

Ongoing EBIT for Field Services for first quarter 2005, absent special items, was $151 million versus $91 million in first quarter 2004. Ongoing results for the quarter were positively impacted by higher commodity prices, partially offset by higher operating costs.

Duke Energy North America
Duke Energy North America (DENA) reported a segment EBIT loss of $35 million in first quarter 2005, compared to segment EBIT loss of $557 million in first quarter 2004.

The improved results were driven by the absence of a $359 million pre-tax loss on the sale of assets recorded in first quarter 2004 and the absence of an $87 million mark-to-market loss, net of minority interest of $6 million, during the same quarter. The significant reduction in mark-to-market losses is the direct result of the successful efforts made over the last year to decrease the earnings volatility associated with this portfolio.

Results in first quarter 2005 also benefited from higher gross margins from energy generation, lower operating and depreciation expenses and a $21 million pre-tax gain on the sale of DENA’s Grays Harbor facility in Washington.

International Energy
For first quarter 2005, Duke Energy International (DEI) reported segment EBIT from continuing operations of $68 million, compared to $29 million in first quarter 2004. The increase was positively affected by strong results in Brazil, Guatemala and Peru; continued positive results at National Methanol; and the absence of a
$13 million charge related to the sale of DEI’s ownership share of the Cantarell plant in Mexico in first quarter 2004.

Crescent Resources
Crescent Resources reported first quarter 2005 segment EBIT of $52 million, compared to $60 million in the previous year’s quarter. The difference was primarily due to lower commercial sales in first quarter 2005 which were partially offset by higher residential lot and land sales.

Other
Other, which includes the cost of corporate governance, DukeNet Communications, the company’s 50-percent interest in Duke/Fluor Daniel, Duke Energy Merchants, Duke Energy’s captive insurance company Bison Insurance Co. Limited (Bison) and the change in value of the de-designated hedges from Field Services, reported an EBIT loss of $169 million in first quarter 2005, compared to a loss of $5 million in first quarter 2004. Included in this quarter’s results is the change in the mark-to-market value of the hedges from Field Services from the time of the de-designation at Feb. 22, 2005, to the end of the quarter. Of this amount, approximately $54 million relates to the 2005 contracts and approximately $56 million relates to the 2006 contracts. Additionally, there was a $28 million charge in first quarter 2005 for a mutual insurance liability adjustment incurred by Bison.

Ongoing EBIT loss for Other for first quarter 2005, absent special items, was $87 million versus a loss of $19 million for first quarter 2004. This difference is primarily due to the $56 million of mark-to-market losses on the de-designated hedges for 2006 from the date of de-designation to the end of the quarter.

Discontinued Operations
The operations reported as discontinued showed a first quarter 2005 gain of
$1 million, compared to $246 million in 2004, which included a $238 million gain, net of tax, on the sale of the Australian assets.

INTEREST EXPENSE

Interest expense was $293 million for first quarter 2005, compared to $356 million for first quarter 2004 due to the company’s aggressive efforts to reduce overall debt.

INCOME TAX

First quarter 2005 income tax expense from continuing operations was $447 million, compared to $33 million in first quarter 2004. The increase was due to higher pretax earnings, primarily as a result of the gains realized on the sale of DEFS’ TEPPCO GP and Duke Energy's TEPPCO LP units.

LIQUIDITY AND CAPITAL RESOURCES

Duke Energy's consolidated capital structure at the end of first quarter 2005, including short-term debt, was 50 percent debt, 45 percent common equity and 5 percent minority interests. The company had approximately $2.07 billion in cash, cash equivalents and short-term investments at the end of first quarter 2005.

ADDITIONAL INFORMATION

Additional information, including EPS reconciliation data and a schedule for Duke Energy Field Services gas volume and margin by contract type can be obtained at Duke Energy’s first quarter 2005 earnings information Web site at: http://www.duke-energy.com/investors/.

NON-GAAP FINANCIAL MEASURES

The primary performance measure used by management to evaluate segment performance is segment EBIT from continuing operations, which at the segment level represents all profits from continuing operations (both operating and non-operating) before deducting interest and taxes, and is net of the minority interest expense related to those profits. Management believes segment EBIT from continuing operations, which is the GAAP measure used to report segment results, is a good indicator of each segment’s operating performance as it represents the results of our ownership interests in continuing operations without regard to financing methods or capital structures.

Duke Energy’s management uses ongoing basic and diluted EPS, which are non-GAAP financial measures as they represent basic and diluted EPS adjusted for the impact of special items, as two of the measures 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 ongoing basic and diluted EPS provides useful information to investors, as it allows them to more accurately compare the company’s ongoing performance across all periods. Ongoing basic EPS is also the basis used for employee incentive bonuses. The most directly comparable GAAP measures for ongoing basic and diluted EPS are reported basic and diluted EPS, which include the impact of special items. Due to the forward-looking nature of ongoing basic and diluted EPS for future periods, information to reconcile such non-GAAP financial measure 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.

Duke Energy also uses ongoing segment EBIT as a measure of historical and anticipated future segment performance. When used for future periods, ongoing segment EBIT may also include any amounts that may be reported as discontinued operations. Ongoing segment EBIT is a non-GAAP financial measure as it represents reported segment EBIT adjusted for special items. Management believes that the presentation of ongoing segment EBIT provides useful information to investors, as it allows them to more accurately compare a segment’s ongoing performance across all periods. The most directly comparable GAAP measure for ongoing segment EBIT is reported segment EBIT, which represents EBIT from continuing operations, including any special items. Due to the forward-looking nature of forecasted ongoing segment EBIT and related growth rates for future periods, information to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures is not available at this time as the company is unable to forecast any special items or any amounts that may be reported as discontinued operations for future periods.

Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in the Americas. 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: 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 http://www.duke-energy.com/investors/ or by dialing 800/946-0786 in the United States or 719/457-2662 outside the United States. The confirmation code is 5588174. Please call in five to 10 minutes prior to the scheduled start time. A replay of the conference call will be available until May 13, 2005, midnight ET, by dialing 888/203-1112 with a confirmation code of 5588174. The international replay number is 719/457-0820, confirmation code 5588174. A replay and transcript also will be available by accessing the investors' section of the company’s Web site. The presentation may include certain non-GAAP financial measures as defined under SEC rules. In such event, a reconciliation of those measures to the most directly comparable GAAP measures will be available on our investor relations Web site at: http://www.duke-energy.com/investors/publications/gaap/.

This release includes statements that do not directly or exclusively relate to historical facts. Such statements are "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. Those statements represent Duke Energy’s intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside Duke Energy’s control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. Those factors include: the effect of accounting pronouncements issued periodically by accounting standard-setting bodies; the outcomes of litigation and regulatory investigations, proceedings or inquiries and other contingencies; the level of creditworthiness of counterparties to Duke Energy’s transactions; the amount of collateral required to be posted from time to time in Duke Energy’s transactions; opportunities for Duke Energy’s business units, including the timing and success of efforts to develop domestic and international power, pipeline, gathering, liquefied natural gas, processing and other infrastructure projects.

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. Information contained in this release is unaudited, and is subject to change.

Media Contact: Randy Wheeless
Phone: 704/382-8379
24 Hour Phone: 704/382-8333
Email: crwheele@duke-energy.com
Analyst Contact: Julie Dill
Phone: 980/373-4332

 

MARCH 2005
QUARTERLY HIGHLIGHTS
(Unaudited)
     
 
Three Months Ended
 
March 31,
 
(In millions, except where noted)
2005
2004

COMMON STOCK DATA    
 Earnings Per Share (from continuing operations)    
  Basic
$0.91 
$0.07 
  Diluted
$0.88 
$0.07 
 Earnings Per Share (from discontinued operations)
  Basic
$- 
$0.27 
  Diluted
$- 
$0.26 
 Earnings Per Share
  Basic
$0.91 
$0.34 
  Diluted
$0.88 
$0.33 
 Dividends Per Share
$0.275 
$0.275 
 Weighted-Average Shares Outstanding
  Basic
954 
912 
  Diluted
990 
947 
 

INCOME
Operating Revenues
$5,749 
$5,636 
 

Total Reportable Segment EBIT
1,749 
445 
Other EBIT
(169)
(5)
Interest Expense
293 
356 
Interest Income and Other (a)
(27)
(14)
Income Tax Expense from Continuing Operations
447 
33 
Income from Discontinued Operations
246 
 

Net Income
868 
311 
Dividends and Premiums on Redemption of Preferred and Preference Stock
 

Earnings Available for Common Stockholders
$866 
$309 
 

 

CAPITALIZATION
  Common Equity
45%
37%
  Preferred Stock
0%
0%
 

 Total Common Equity and Preferred Securities
45%
37%
 
 Minority Interests
5%
5%
 Total Debt
50%
58%
     

Total Debt
$18,590 
$21,798 
Book Value Per Share
$17.76 
$15.28 
Actual Shares Outstanding
928 
914 

CAPITAL AND INVESTMENT EXPENDITURES
 Franchised Electric
$227 
$262 
 Natural Gas Transmission
96 
154 
 Field Services
49 
25 
 Duke Energy North America
 International Energy
 Crescent
140 
162 
 Other
18 
 

Total Capital and Investment Expenditures
$522 
$638 
 

     

EBIT BY BUSINESS SEGMENT
 Franchised Electric
$336 
$424 
 Natural Gas Transmission
407 
398 
 Field Services
921 
91 
 Duke Energy North America
(35)
(557)
 International Energy
68 
29 
 Crescent
52 
60 
 

Total reportable segment EBIT
1,749 
445 
 Other EBIT
(169)
(5)
 Interest expense
(293)
(356)
 Interest Income and Other (a)
27 
14 
 

Consolidated earnings from continuing operations before income taxes
$1,314 
$98 
 


(a) Other includes foreign currency remeasurement gains and losses and additional minority interest not allocated to the segment results.


MARCH 2005
QUARTERLY HIGHLIGHTS
(Unaudited)
     
 
Three Months Ended
 
March 31,
 
(In millions, except where noted)
2005
2004

FRANCHISED ELECTRIC    
  Operating Revenues
$1,265 
$1,271 
  Operating Expenses
931 
851 
  Gains on Sales of Other Assets, net
  Other Income, net of expenses
 

  EBIT
$336 
$424 
 

 
  Sales, GWh
21,163 
21,963 
 

NATURAL GAS TRANSMISSION
  Operating Revenues
$1,175 
$1,038 
  Operating Expenses
776 
638 
  Gains on Sales of Other Assets, net
  Other Income, net of expenses
14 
  Minority Interest Expense
 

  EBIT
$407 
$398 
 

 
  Proportional Throughput, TBtu
1,056 
1,089 
 

FIELD SERVICES (a)
  Operating Revenues
$2,674 
$2,353 
  Operating Expenses
2,586 
2,228 
  Gains on Sales of Other Assets, net
  Other Income, net of expenses
1,251 
18 
  Minority Interest Expense
420 
52 
 

  EBIT
$921 
$91 
 

 
  Natural Gas Gathered and Processed/Transported, TBtu/day (b)
7.1 
7.2 
  Natural Gas Liquids Production, MBbl/d (b)
365 
353 
  Average Natural Gas Price per MMBtu
$6.27 
$5.69 
  Average Natural Gas Liquids Price per Gallon
$0.73 
$0.59 
 

DUKE ENERGY NORTH AMERICA
  Operating Revenues
$468 
$624 
  Operating Expenses
538 
841 
  Gains (Loss) on Sales of Other Assets, net
28 
(352)
  Other Income (Expense), net
(2)
  Minority Interest Benefit
(6)
(14)
 

  EBIT
$(35)
$(557)
 

 
  Actual Plant Production, GWh (c)
3,956 
5,461 
  Proportional MW Capacity in Operation
9,890 
15,821 
 

INTERNATIONAL ENERGY (a)
  Operating Revenues
$168 
$154 
  Operating Expenses
119 
131 
  Other Income, net of expenses
21 
  Minority Interest Expense
 

  EBIT
$68 
$29 
 

 
  Sales, GWh
4,535 
4,564 
  Proportional MW Capacity in Operation
4,139 
4,121 
 
 

CRESCENT
  Operating Revenues
$65 
$38 
  Operating Expenses
52 
36 
  Gains on Sales of Investments in Commercial and Multi-Family Real Estate
42 
59 
  Minority Interest Expense
 

  EBIT
$52 
$60 
 

 
 

OTHER
  Operating Revenues
$40 
$344 
  Operating Expenses
210 
387 
  Gains on Sales of Other Assets, net
14 
  Other Income, net of expenses
24 
 

  EBIT
$(169)
$(5)
 

     

(a) Certain prior year amounts have been reclassified due to discontinued operations.    
(b) Represents 100% of joint venture volumes.    
(c) Represents 100% of GWh.    
     
Note: See GAAP reconciliation associated with the 2005 first quarter Earnings Release on the Investor Relations Web site at http://www.duke-energy.com/investors/publications/gaap/.


DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except per-share amounts)
         
     
Three Months Ended
     
March 31, 
     
     
2005
2004
     

         
Operating Revenues
$5,749 
$5,636 
Operating Expenses
5,106 
4,925 
Gains on Sales of Investments in Commercial and Multi-Family Real Estate
42 
59 
Gains (Losses) on Sales of Other Assets, net
33 
(338)
     

Operating Income
718 
432 
     

 
Other Income and Expenses
1,305 
60 
Interest Expense
293 
356 
Minority Interest Expense
416 
38 
     

 
Earnings From Continuing Operations Before Income Taxes
1,314 
98 
Income Tax Expense from Continuing Operations
447 
33 
     

 
Income From Continuing Operations
867 
65 
Income From Discontinued Operations, net of tax
246 
     

 
Net Income
868 
311 
 
Dividends and Premiums on Redemption of Preferred and Preference Stock
     

 
Earnings Available For Common Stockholders
$866 
$309 
     

 
Common Stock Data
  Weighted-average shares outstanding
    Basic
954 
912 
    Diluted
990 
947 
  Earnings per share (from continuing operations)
    Basic
$0.91 
$0.07 
    Diluted
$0.88 
$0.07 
  Earnings per share (from discontinued operations)
    Basic
$- 
$0.27 
    Diluted
$- 
$0.26 
  Earnings per share
    Basic
$0.91 
$0.34 
    Diluted
$0.88 
$0.33 
  Dividends per share
$0.275 
$0.275 


DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)
       
   
March 31, 
December 31, 
   
2005
2004
 

ASSETS    
     
Current Assets
$8,277 
$7,971 
Investments and Other Assets
11,732 
11,533 
Net Property, Plant and Equipment
33,391 
33,506 
Regulatory Assets and Deferred Debits
2,508 
2,460 
 
  Total Assets
$55,908 
$55,470 
 

 
 
LIABILITIES AND COMMON STOCKHOLDERS' EQUITY
 
Current Liabilities
$7,121 
$7,538 
Long-term Debt
16,934 
16,932 
Deferred Credits and Other Liabilities
13,338 
12,939 
Minority Interests
1,897 
1,486 
Preferred and preference stock without sinking fund requirements
134 
134 
Common Stockholders' Equity
16,484 
16,441 
 

 
  Total Liabilities and Common Stockholders' Equity
$55,908 
$55,470 
 



DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
           
       
Three Months Ended
March 31,
       
       
       
2005
2004
 

CASH FLOWS FROM OPERATING ACTIVITIES    
  Net income
$868 
$311 
  Adjustments to reconcile net income to net cash provided by
    operating activities
(68)
759 
 

      Net cash provided by operating activities
800 
1,070 
 

 
CASH FLOWS FROM INVESTING ACTIVITIES
      Net cash provided by (used in) investing activities
989 
(326)
 

     
CASH FLOWS FROM FINANCING ACTIVITIES
      Net cash used in financing activities
(1,320)
(476)
 

       
  Changes in cash and cash equivalents associated with assets held for sale
(1)
(31)
 

       
  Net increase in cash and cash equivalents
468 
237 
  Cash and cash equivalents at beginning of period
533 
397 
 

  Cash and cash equivalents at end of period
$1,001 
$634 
 



Supplemental Disclosures
Quarter Ended March 31, 2005

                           
                           
Duke Energy Corporation                          

         
1Q05
               
         
               
                           
Mark-to-market Portfolio (in millions)        
$(368)
               
                           
Daily Earnings at Risk (DER) (in millions)                      
                           
95% Confidence Level, One-Day Holding Period, Two-Tailed                          
  as of 03/31/2005        
$4 
  (a)            
                           
                           
(a) This figure excludes effects of the February 22, 2005 de-designation of certain hedges of Field Services' commodity risk, which have been retained as undesignated derivatives.
                           
                           
Duke Energy North America                          

(in millions unless stated otherwise)    
 
Q-T-D March 31, 2005
   
                           
Total Gross Margin                
$59 
       
                 
       
Reconciliation to Segment EBIT:                
       
  Plant depreciation                
(39)
       
  Plant operating and maintenance expenses                
(54)
       
  General and administrative and other expenses              
(36)
       
  Minority interest                
       
  Other income, net                
       
  Gain on sales of other assets, net              
28 
       
                 
       
DENA Segment EBIT                
$(35)
       
                 
       
                           
                           
Owned Assets - Contracted Level    
Remaining 2005
 
2006
     
 
     
Millions
         
Millions
       
 
MWs
MWh
% Contracted
MWh
% Contracted
Region
Capacity
Available
Capacity
Energy
Available
Capacity
(c)
Energy
 
 
 
 
 
 
 
  East
4,615
28
(b)
16%
6%
37
(b)
11%
7%
  West
5,275
26
37%
34%
34
12%
34%
 
 
         
       
Total
9,890
54
26%
20%
71
11%
20%
                           
                           
(b) East capacity includes 5 million MWh from peaking facilities in 2005 and 6.5 million in 2006 and excludes plants where we own a non-controlling equity interest only.
(c) Capacity does not include Regulatory Must Run ("RMR) elections for 2006, scheduled to occur in late 2005.


Supplemental Disclosures
Quarter Ended March 31, 2005
 
Terms of Reference

 
MWs Capacity
Represents the official rated capacity of DENA’s percentage ownership of its merchant assets excluding Bayside which has been classified as discontinued operations.
 
Millions MWhs Available
Represents the amount of electric power capable of being generated from owned merchant assets, after adjusting for scheduled maintenance and outage factors. For simple cycle facilities, only peak demand periods were included in this calculation.
 
% Contracted:
Capacity: Volumes contracted under tolls as well as Regulatory Must Run (“RMR”) and Canadian facilities.
 
Energy: Volumes sold as forward power hedges.


Duke Energy Corporation
Quarterly Highlights
Supplemental Franchised Electric Information
March 31, 2005
               
               
               
               
     
Year To Date Ended
         
March 31,
   
     
             
%
     
2005
2004
Inc.(Dec.)
     
 
 
GWH Sales              
  Residential  
6,924
7,031
(1.5%)
  General Service  
5,887
5,797
1.6%
     
  Industrial - Textile  
1,575
1,615
(2.5%)
  Industrial - Other  
4,370
3,997
9.3%
   
 
 
    Total Industrial  
5,945
5,612
5.9%
     
     
  Other Energy Sales  
67
66
1.5%
  Regular Resale  
343
352
(2.6%)
     
   
 
 
    Total Regular Sales Billed  
19,166
18,858
1.6%
     
  Special Sales (A)  
2,191
3,023
(27.5%)
     
   
 
 
      Total Electric Sales  
21,357
21,881
(2.4%)
     
Unbilled Revenue  
(545)
(251)
(117.1%)
     
   
 
 
  Total Duke Power Electric Sales  
20,812
21,630
(3.8%)
     
Nantahala Electric Sales  
351
333
5.4%
     
   
 
 
  Total DP Consolidated Electric Sales  
21,163
21,963
(3.6%)
   
 
 
     
     
Average Number of Customers    
  Residential  
1,829,808
1,794,657
2.0%
  General Service  
308,116
301,873
2.1%
     
  Industrial - Textile  
816
875
(6.7%)
  Industrial - Other  
6,679
6,695
(0.2%)
   
 
 
     
    Total Industrial  
7,495
7,570
(1.0%)
     
     
  Other Energy Sales  
13,177
11,463
15.0%
  Regular Resale  
15
15
0.0%
   
 
 
     
    Total Regular Sales  
2,158,611
2,115,578
2.0%
     
  Special Sales (A)  
38
41
(7.3%)
   
 
 
     
  Total Duke Power Electric Sales  
2,158,649
2,115,619
2.0%
     
  Nantahala Electric Sales  
67,607
66,243
2.1%
   
 
 
     
  Total DP Average Number of Customers  
2,226,256
2,181,862
2.0%
   
 
 
     
     
  (A) Excludes sales to Nantahala Power and Light Company  
     
Heating and Cooling Degree Days  
  Actual  
  Heating Degree Days  
1,713
1,872
(8.5%)
  Cooling Degree Days  
-
7
(100.0%)
     
  Variance from Normal  
  Heating Degree Days  
0.6%
12.1%
n/a
  Cooling Degree Days  
(90.3%)
134.3%
n/a


DUKE ENERGY CORPORATION
ONGOING TO REPORTED EARNINGS RECONCILIATION
March 2005 Year-to-date
(Dollars in Millions)
   
   
   
   
                                           
               
Special Items (Note 1)
   
               
   
                                           
             
Ongoing Earnings
Gain on sale of Grays Harbor
Mutual insurance liability adjustment
Gains on sales of equity investments
Field Services hedge de-designation, net
MTM change on de-designated Field Services hedges for 2005, net
Total
Reported Earnings
             
 
 
 
 
 
 
 
                                           
SEGMENT EARNINGS BEFORE INTEREST
AND TAXES FROM CONTINUING OPERATIONS
                               
                                           
                                           
Franchised Electric  
$336 
$-
$-
$-
$-
$-
$-
$336 
             
Gas Transmission  
407 
-
-
-
-
-
-
407 
             
Field Services  
151 
-
-
888 
A
(118)
B
-
770 
921 
             
Duke Energy North America  
(56)
21 
C
-
-
-
-
21 
(35)
             
International Energy  
68 
-
-
-
-
-
-
68 
             
Crescent            
52 
-
-
-
-
-
-
52 
             
             
 
 
 
 
 
 
 
Total reportable segment EBIT  
958 
21 
-
888 
(118)
-
791 
1,749 
             
Other  
(87)
-
(28)
D
-
-
(54)
E
(82)
(169)
             
 
 
 
 
 
 
 
             
Total reportable segment EBIT and other EBIT  
$871 
$21 
$(28)
$888 
$(118)
$(54)
$709 
$1,580 
             
 
 
 
 
 
 
 
             
             
             
EARNINGS FOR COMMON  
             
Total reportable segment EBIT and other EBIT  
$871 
$21 
$(28)
$888 
$(118)
$(54)
$709 
$1,580 
Interest Income  
15 
-
-
-
-
-
-
15 
Interest Expense  
(293)
-
-
-
-
-
-
(293)
Minority Interest - Interest Expense  
12 
-
-
-
-
-
-
12 
Income taxes on continuing operations
(183)
(8)
10 
(329)
44 
19 
(264)
(447)
Discontinued operations, net of taxes
-
-
-
-
-
-
Trust Preferred/Preferred Dividends
(2)
-
-
-
-
-
-
(2)
             
 
 
 
 
 
 
 
             
Total Earnings for Common
421 
13 
(18)
559 
(74)
(35)
445 
866 
             
 
 
 
 
 
 
 
             
EARNINGS PER SHARE, BASIC
$0.44 
$0.01 
$(0.02)
$0.59 
$(0.08)
$(0.03)
$0.47 
$0.91 
             
 
 
 
 
 
 
 
             
EARNINGS PER SHARE, DILUTED
$0.43 
$0.01 
$(0.02)
$0.56 
$(0.07)
$(0.03)
$0.45 
$0.88 
             
 
 
 
 
 
 
 
                                           
Note 1 - Amounts for special items are entered net of minority interest
                                           
A - Gain on sale of investment in units of TEPPCO LP, $97 million, and TEPPCO GP, $791 million net of $343 million of minority interest
                                           
B - De-designation of hedges due to proposed sell of 19.7% interest in DEFS to ConocoPhillips. $125 million loss recorded in Impairment and other charges on the Consolidated Statements of Operations, reduced by $7 million of hedge settlements recorded in Non-regulated electric, natural gas liquids and other on the Consolidated Statements of Operations.
                                           
C - Recorded in Gains (Losses) on Sales of Other Assets, net on the Consolidated Statements of Operations
                                           
D - Recorded in Operation, maintenance and other on the Consolidated Statements of Operations
 
E - Recorded in Non-regulated electric, natural gas liquids and other on the Consolidated Statements of Operations
 
 
Weighted Average Shares (reported and ongoing) - in millions                
  Basic   954                                    
  Diluted   990                                    


DUKE ENERGY
ONGOING TO REPORTED EARNINGS RECONCILIATION
March 2004 Year-to-Date
(Dollars in Millions)
 
         
Special Items (Note 1)
   
         
   
                                 
       
Ongoing Earnings
Loss on sale of Southeast assets
Cantarell Charge
Gains (losses) on sales of other assets, net
Gain on sale of Asia Pacific assets
Total
Reported Earnings
       
 
 
 
 
 
 
                                 
SEGMENT EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS                            
                                 
                                 
Franchised Electric      
$424 
$-
$-
$-
$-
$-
$424 
       
Gas Transmission      
398 
-
-
-
-
-
398 
       
Field Services      
91 
-
-
-
-
-
91 
       
Duke Energy North America      
(198)
(359)
A
-
-
-
(359)
(557)
       
International Energy      
42 
-
(13)
B
-
-
(13)
29 
       
Crescent      
60 
-
-
-
-
-
60 
       
       
 
 
 
 
 
 
Total reportable segment EBIT      
817 
(359)
(13)
-
-
(372)
445 
       
Other      
(19)
-
-
14 
C
-
14 
(5)
       
 
 
 
 
 
 
       
Total reportable segment EBIT and other EBIT      
$798 
$(359)
$(13)
$14 
$-
$(358)
$440 
       
 
 
 
 
 
 
       
       
       
EARNINGS FOR COMMON
       
Total reportable segment EBIT and other EBIT      
$798 
$(359)
$(13)
$14 
$-
$(358)
$440 
Foreign Currency Translation Losses      
(4)
-
-
-
-
-
(4)
Interest Income      
-
-
-
-
-
Interest Expense      
(356)
-
-
-
-
-
(356)
Minority Interest - Interest Expense      
11 
-
-
-
-
-
11 
Income taxes on continuing operations      
(159)
126 
(5)
-
126 
(33)
Discontinued operations, net of taxes      
-
-
-
238 
D
238 
246 
Trust Preferred/Preferred Dividends      
(2)
-
-
-
-
-
(2)
       
 
 
 
 
 
 
       
Total Earnings for Common
303 
(233)
(8)
238 
309 
       
 
 
 
 
 
 
       
EARNINGS PER SHARE, BASIC      
$0.34 
$(0.26)
$(0.01)
$0.01 
$0.26 
$-
$0.34 
       
 
 
 
 
 
 
       
EARNINGS PER SHARE, DILUTED      
$0.32 
$(0.24)
$(0.01)
$0.01 
$0.25 
$0.01 
$0.33 
       
 
 
 
 
 
 
                                 
Note 1 - Amounts for special items are entered net of minority interest
                                 
A - $(353) million recorded in Gains (Losses) on Sales of Other Assets, net on the Consolidated Statements of
     Operations and $(6) million recorded in Operation, maintenance and other on the Consolidated Statements of
     Operations
                                 
B - Recorded in Operation, maintenance and other on the Consolidated Statements of Operations
                                 
C - Primarily gain on sale of Caribbean Nitrogen Co.
                                 
D - Recorded in Discontinued Operations on the Consolidated Statements of Operations
                                 
Weighted Average Shares (reported and ongoing) - in millions                
        Basic  
912
                   
        Diluted  
947