Duke-Energy 04 Stat_Supplement

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  • 1. CONTENTS 2 CONSOLIDATED DATA 28 FIELD SERVICES 2 Financial Highlights 29 Segment Earnings Before Interest and Taxes from Continuing Operations 3 Earnings Before Interest and Taxes from Continuing Operations by Business Segment 30 Segment Balance Sheets 4 Consolidating Statement of Operations 32 Operating Statistics 5 Consolidated Statements of Operations 33 DUKE ENERGY NORTH AMERICA 6 Consolidating Balance Sheet 34 Segment Earnings Before Interest and Taxes from Continuing Operations 8 Consolidated Balance Sheets 35 Segment Balance Sheets 10 Consolidated Statements of Cash Flows 37 Operating Statistics 11 Capital and Investment Expenditures by Business Segment 38 INTERNATIONAL ENERGY 12 Long-Term Debt 39 Segment Earnings Before Interest and Taxes 15 Preferred and Preference Stock without from Continuing Operations Sinking Fund Requirements 40 Segment Balance Sheets 16 Capitalization 42 Operating Statistics 17 FRANCHISED ELECTRIC 43 CRESCENT RESOURCES 18 Segment Earnings Before Interest and Taxes 44 Segment Earnings Before Interest and Taxes 19 Segment Balance Sheets from Continuing Operations 21 Operating Statistics 45 Segment Balance Sheets 47 Operating Statistics 23 NATURAL GAS TRANSMISSION 24 Segment Earnings Before Interest and Taxes 25 Segment Balance Sheets 27 Operating Statistics Contents
  • 2. Duke Energy Corporation FINANCIAL HIGHLIGHTS Years ended December 31 2004 2003 2002 2001 2000 (In millions, except per share amounts) COMMON STOCK DATA a Earnings (loss) per share (from continuing operations) $ 1.31 Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1.13) $ 1.53 $ 2.59 $ 2.42 $ 1.27 Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1.13) $ 1.53 $ 2.57 $ 2.41 Earnings (loss) per share (from discontinued operations) $ 0.28 Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (0.17) $ (0.31) $ (0.01 ) $ (0.03) $ 0.27 Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (0.17) $ (0.31) $ (0.01) $ (0.03) Earnings (loss) per share (before cumulative effect of change in accounting principle) $ 1.59 Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1.30) $ 1.22 $ 2.58 $ 2.39 $ 1.54 Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1.30) $ 1.22 $ 2.56 $ 2.38 Earnings (loss) per share $ 1.59 Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1.48) $ 1.22 $ 2.45 $ 2.39 $ 1.54 Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1.48) $ 1.22 $ 2.44 $ 2.38 957 Shares outstanding at year end . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 911 895 777 739 931 Weighted average shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . 903 836 767 736 $1,065 Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,051 $ 938 $ 871 $ 828 $ 1.10 Dividends paid (per share) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.10 $ 1.10 $ 1.10 $ 1.10 $17.18 Book value (per share) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15.09 $16.70 $16.33 $ 13.60 Historical Reference b Market price (per share) $26.16 High . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21.57 $40.00 $47.74 $ 44.97 $18.85 Low . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12.21 $16.42 $32.22 $ 23.19 $25.33 Close . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20.45 $19.54 $39.26 $ 42.63 a Amounts prior to 2001 were restated to reflect the two-for-one common stock split effective January 26, 2001. b As of 2001, data reflects the intra-day high and low stock price. 2 Consolidated Data
  • 3. Duke Energy Corporation EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS BY BUSINESS SEGMENT Consolidated Earnings (Loss) EBIT Interest Expense, from Continuing Franchised Natural Gas Field Duke Energy International Minority Interest Operations before Electric Transmission Services North America Energy Crescent Expense & Other Income Taxes (In millions) 2004 QUARTERS ENDED $ (558 )a March 31 . . . . . . . . . . . . . . . $ 424 $ 398 $ 91 $ 29 $ 60 $ (347 ) $ 97 June 30 . . . . . . . . . . . . . . . . 338 311 95 (37 ) 68 87 (321) 541 Sept 30 . . . . . . . . . . . . . . . . 453 265 66 (17 ) 64 43 (345) 529 Dec 31 . . . . . . . . . . . . . . . . 252 336 128 77 61 50 (299) 605 Total . . . . . . . . . . . . . . . . . . $1,467 $1,310 $380 $ (535 ) $222 $240 $(1,312) $ 1,772 2003 QUARTERS ENDED $ 587 March 31 . . . . . . . . . . . . . . . $ 454 $ 423 $ 29 $ 23 $ 40 $ 1 $ (383) 597 June 30 . . . . . . . . . . . . . . . . 316 306 55 211 91 21 (403) (17) Sept 30 . . . . . . . . . . . . . . . . 436 280 52 (411 )b 44 40 (458) (2,877) Dec 31 . . . . . . . . . . . . . . . . . 197 308 51 (3,164 )c 40 72 (381 ) $(1,710) Total . . . . . . . . . . . . . . . . . . $1,403 $1,317 $187 $(3,341 ) $215 $134 $(1,625 ) 2002 QUARTERS ENDED $ 538 March 31 . . . . . . . . . . . . . . . $ 384 $ 266 $ 36 $ 54 $ 49 $ 2 $ (253) 715 June 30 . . . . . . . . . . . . . . . . 388 313 43 196 61 23 (309) 357 Sept 30 . . . . . . . . . . . . . . . . 575 288 21 (107 ) (31) 16 (405 ) 296 Dec 31 . . . . . . . . . . . . . . . . . 248 294 48 26 23 117 (460 ) $ 1,906 Total . . . . . . . . . . . . . . . . . . $1,595 $1,161 $148 $ 169 $102 $158 $(1,427) 2001 QUARTERS ENDED $ 873 March 31 . . . . . . . . . . . . . . . $ 459 $ 175 $124 $ 384 $ 56 $ 3 $ (328 ) 667 June 30 . . . . . . . . . . . . . . . . 358 141 84 272 61 31 (280) 1,264 Sept 30 . . . . . . . . . . . . . . . . 607 142 70 654 52 50 (311 ) 343 Dec 31 . . . . . . . . . . . . . . . . . 202 149 55 177 67 83 (390 ) $ 3,147 Total . . . . . . . . . . . . . . . . . . $1,626 $ 607 $333 $ 1,487 $236 $167 $(1,309 ) a Includes an approximate $360 million charge associated with the sale of DENA’s Southeast Plants b Includes a $254 million goodwill writeoff c Includes $2,903 million of impairments (related to DENA’s plants and redesignation of power contracts to mark-to-market) 3 Consolidated Data
  • 4. Duke Energy Corporation CONSOLIDATING STATEMENT OF OPERATIONS Year Ended Natural December 31, Franchised Gas Field Duke Energy International Eliminations/ 2004 (In millions) Electric Transmission Services North America Energy Crescent Other Adjustments OPERATING REVENUES a $14,275 Non-regulated electric, natural gas, natural gas liquids and other . . . . . . . . . $ — $ — $10,104 $2,294 $619 $437 $1,144 $(323 ) 5,111 Regulated electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,069 — — 67 — — — (25 ) 3,117 Regulated natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 3,290 — — — — — (173 ) 22,503 Total operating revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,069 3,290 10,104 2,361 619 437 1,144 (521 ) OPERATING EXPENSES 11,335 Natural gas and petroleum products purchased . . . . . . . . . . . . . . . . . . . . . — 758 8,614 1,398 4 — 946 (385 ) 3,568 Operation, maintenance and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,264 701 550 419 164 343 264 (137 ) 2,098 Fuel used in electric generation and purchased power . . . . . . . . . . . . . . . . 1,206 — — 665 228 — — (1 ) 1,851 Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 863 418 298 173 58 2 39 — 539 Property and other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 156 47 34 8 6 8 — 65 Impairment and other related charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 22 1 — 42 — — 19,456 Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,613 2,033 9,531 2,690 462 393 1,257 (523 ) GAINS ON SALES OF INVESTMENTS IN COMMERCIAL AND MULTI-FAMILY REAL ESTATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 192 — — — — 192 — — GAINS (LOSSES) ON SALES OF OTHER ASSETS, NET . . . . . . . . . . . . . . . (225 ) 3 17 2 (248 ) (3 ) — 4 — OPERATING INCOME (LOSS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,014 1,459 1,274 575 (577 ) 154 236 (109 ) 2 OTHER INCOME AND EXPENSES 161 Equity in earnings of unconsolidated affiliates . . . . . . . . . . . . . . . . . . . . . . — 25 60 5 51 3 17 — (4 ) Gains (Losses) on sales and impairments of equity investments . . . . . . . . . . — 16 (23 ) — 2 — 1 — 145 Other income and expenses, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 17 — 7 25 — 14 74 302 Total other income and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 58 37 12 78 3 32 74 MINORITY INTEREST EXPENSE (BENEFIT) b . . . . . . . . . . . . . . . . . . . . . . — 22 232 (30 ) 10 (1 ) — EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS (EBIT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,467 $1,310 $ 380 $ (535 ) $222 $240 $ (77) INTEREST EXPENSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,349 MINORITY INTEREST EXPENSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES . . 1,772 INCOME TAX EXPENSE FROM CONTINUING OPERATIONS . . . . . . . . . . . 540 INCOME FROM CONTINUING OPERATIONS . . . . . . . . . . . . . . . . . . . . . . 1,232 DISCONTINUED OPERATIONS (10 ) Net operating loss, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 Net gain on dispositions, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . INCOME FROM DISCONTINUED OPERATIONS . . . . . . . . . . . . . . . . . . . . 258 NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,490 DIVIDENDS AND PREMIUMS ON REDEMPTION OF PREFERRED AND PREFERENCE STOCK . . . . . . . . . . . . . . . . . . . . . . . . 9 EARNINGS AVAILABLE FOR COMMON STOCKHOLDERS . . . . . . . . . . . . . $ 1,481 a Presentation does not reflect certain immaterial reclassifications that were made in the Form 10-Q for the quarter ended March 31, 2005. b Includes minority interest expense (benefit) related to EBIT and excludes minority interest expense (benefit) related to interest and taxes. 4 Consolidated Data
  • 5. Duke Energy Corporation CONSOLIDATED STATEMENTS OF OPERATIONS Years ended December 31 2004 2003 2002 2001 (In millions) OPERATING REVENUES a $14,275 Non-regulated electric, natural gas, natural gas liquids and other .............................................................. $14,178 $8,780 $11,879 5,111 Regulated electric ................................................................................................................................ 4,960 4,880 5,088 3,117 Regulated natural gas .......................................................................................................................... 2,942 2,200 922 22,503 Total operating revenues........................................................................................................................ 22,080 15,860 17,889 OPERATING EXPENSES 11,335 Natural gas and petroleum products purchased ...................................................................................... 11,419 5,360 6,865 3,568 Operation, maintenance and other.......................................................................................................... 3,796 3,304 3,706 2,098 Fuel used in electric generation and purchased power .............................................................................. 2,075 2,191 2,022 1,851 Depreciation and amortization................................................................................................................ 1,792 1,506 1,252 539 Property and other taxes........................................................................................................................ 526 533 430 65 Impairment and other related charges .................................................................................................... 2,956 364 — Impairments of goodwill ........................................................................................................................ — 254 — 36 19,456 Total operating expenses........................................................................................................................ 22,818 13,258 14,311 GAINS ON SALES OF INVESTMENTS IN COMMERCIAL AND MULTI-FAMILY REAL ESTATE ...................... 192 84 106 106 (LOSSES) GAINS ON SALES OF OTHER ASSETS, NET............................................................................ (225 ) (199 ) 32 238 OPERATING INCOME (LOSS)................................................................................................................ 3,014 (853 ) 2,740 3,922 OTHER INCOME AND EXPENSES 161 Equity in earnings of unconsolidated affiliates .......................................................................................... 123 218 164 (4 ) (Losses) Gains on sales and impairments of equity investments ................................................................ 279 32 — 145 Other income and expenses, net ............................................................................................................ 182 129 147 302 Total other income and expenses............................................................................................................ 584 379 311 INTEREST EXPENSE............................................................................................................................ 1,349 1,380 1,097 760 MINORITY INTEREST EXPENSE b ........................................................................................................ 195 61 116 326 EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES ...................................... 1,772 (1,710 ) 1,906 3,147 INCOME TAX EXPENSE (BENEFIT) FROM CONTINUING OPERATIONS.................................................... 540 (707 ) 611 1,149 INCOME (LOSS) FROM CONTINUING OPERATIONS .............................................................................. 1,232 (1,003 ) 1,295 1,998 DISCONTINUED OPERATIONS Net operating loss, net of tax .............................................................................................................. (10 ) (27 ) (261 ) (4 ) Net gain (loss) on dispositions, net of tax.............................................................................................. 268 (131 ) — — INCOME (LOSS) FROM DISCONTINUED OPERATIONS .......................................................................... 258 (158 ) (261 ) (4 ) INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE .................... 1,490 (1,161 ) 1,034 1,994 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX AND MINORITY INTEREST — (162 ) — (96 ) NET INCOME (LOSS) .......................................................................................................................... 1,490 (1,323 ) 1,034 1,898 DIVIDENDS AND PREMIUMS ON REDEMPTION OF PREFERRED AND PREFERENCE STOCK .................. 9 15 13 14 EARNINGS (LOSS) AVAILABLE FOR COMMON STOCKHOLDERS ............................................................ $1,481 $(1,338 ) $1,021 $1,884 a Presentation does not reflect certain immaterial reclassifications that were made in the Form 10-Q for the quarter ended March 31, 2005. b Minority Interest Expense includes dividends of $55 million in 2003, $108 million in 2002 and $108 million in 2001 related to trust preferred securities. 5 Consolidated Data
  • 6. Duke Energy Corporation CONSOLIDATING BALANCE SHEET - ASSETS Natural December 31, Franchised Gas Field Duke Energy International Eliminations/ 2004 Electric Transmission Services North America Energy Crescent Other Adjustments (In millions) CURRENT ASSETS $ 533 Cash and cash equivalents . . . . . . . . . . . . . . . $ 14 $ (44 ) $ 59 $ 57 $ 301 $ 25 $ 124 $ (3 ) 1,319 Short-term investments . . . . . . . . . . . . . . . . . . 185 — 265 1 — — 868 — 3,237 Receivables, net . . . . . . . . . . . . . . . . . . . . . . . 1,015 638 1,300 446 603 95 (265 ) (595 ) 942 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405 324 74 98 34 — 7 — 40 Assets held for sale . . . . . . . . . . . . . . . . . . . . . — — — 18 22 — — — Unrealized gains on mark-to-market 962 and hedging transactions . . . . . . . . . . . . . . . . — 7 59 868 — — 30 (2 ) 938 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 45 17 338 18 — 105 402 7,971 Total current assets . . . . . . . . . . . . . . . . . . . . . 1,632 970 1,774 1,826 978 120 869 (198 ) INVESTMENTS AND OTHER ASSETS 1,292 Investments in unconsolidated affiliates . . . . . . . — 772 157 152 167 20 24 — Investments and advances in (from) subsidiaries 12,439 10,983 10,832 4,275 (79 ) 772 22,621 (61,843 ) — 1,374 Nuclear decommissioning trust funds . . . . . . . . 1,374 — — — — — — — 4,148 Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 3,398 498 — 245 7 — — 232 Notes receivable . . . . . . . . . . . . . . . . . . . . . . . — 57 — 52 68 55 — — Unrealized gains (losses) on mark-to-market 1,379 and hedging transactions . . . . . . . . . . . . . . . . 2 — (9 ) 1,294 — — 92 — 84 Assets held for sale . . . . . . . . . . . . . . . . . . . . . — — 37 47 — — — — Investments in residential, commercial and 1,128 multi-family real estate, net . . . . . . . . . . . . . . — — — — — 1,104 24 — 1,896 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,077 (10 ) 96 45 198 9 481 — 11,533 Total investments and other assets . . . . . . . . . . 14,892 15,200 11,611 5,865 599 1,967 23,242 (61,843 ) PROPERTY, PLANT AND EQUIPMENT 46,806 Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,950 13,309 6,146 3,917 2,189 — 295 — 13,300 Less accumulated depreciation and amortization 7,830 2,521 1,890 548 371 — 140 — 33,506 Net property, plant and equipment . . . . . . . . . . 13,120 10,788 4,256 3,369 1,818 — 155 — REGULATORY ASSETS AND DEFERRED DEBITS 297 Deferred debt expense . . . . . . . . . . . . . . . . . . . 231 53 — — — — 13 — 1,269 Regulatory asset related to income taxes . . . . . . 376 893 — — — — — — 894 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 701 185 — 4 — — 7 (3 ) 2,460 Total regulatory assets and deferred debits . . . . 1,308 1,131 — 4 — — 20 (3 ) TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . 55,470 30,952 28,089 17,641 11,064 3,395 2,087 24,286 (62,044 ) (12,753 ) (10,983 ) (10,831 ) (4,327 ) (66 ) (772 ) (22,457 ) 62,189 — Intercompany balances . . . . . . . . . . . . . . . . . . REPORTABLE SEGMENT ASSETS . . . . . . . . . . $55,470 $18,199 $17,106 $ 6,810 $6,737 $3,329 $1,315 $ 1,829 $ 145 6 Consolidated Data
  • 7. Duke Energy Corporation CONSOLIDATING BALANCE SHEET - LIABILITIES AND COMMON STOCKHOLDERS’ EQUITY Natural December 31, Franchised Gas Field Duke Energy International Eliminations/ 2004 Electric Transmission Services North America Energy Crescent Other Adjustments (In millions) CURRENT LIABILITIES $ 2,414 Accounts payable . . . . . . . . . . . . . . . . . . . . . . $ 444 $ 209 $ 1,175 $ 546 $ 35 $ (1 ) $ 203 $ (197 ) 68 Notes payable and commercial paper . . . . . . . . — 213 — — — — 146 (291 ) 273 Taxes accrued (prepaid) . . . . . . . . . . . . . . . . . . 9 231 75 (475 ) 212 9 (338 ) 550 287 Interest accrued . . . . . . . . . . . . . . . . . . . . . . . 75 87 59 14 1 1 67 (17 ) 30 Liabilities associated with assets held for sale . . — — — 5 25 — — — 1,832 Current maturities of long-term debt and preferred stock 506 157 607 121 61 11 369 — Unrealized losses on mark-to-market and 819 hedging transactions . . . . . . . . . . . . . . . . . . . — 3 84 542 — — 191 (1) 1,815 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347 425 275 332 53 147 154 82 7,538 Total current liabilities . . . . . . . . . . . . . . . . . . . 1,381 1,325 2,275 1,085 387 167 792 126 LONG-TERM DEBT 16,932 Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . 5,646 5,396 1,649 75 513 23 3,630 — Intercompany debt . . . . . . . . . . . . . . . . . . . . . 10 3,178 — 3,452 — — 7,463 (14,103 ) — 16,932 Total long-term debt . . . . . . . . . . . . . . . . . . . . 5,656 8,574 1,649 3,527 513 23 11,093 (14,103 ) DEFERRED CREDITS AND OTHER LIABILITIES 5,228 Deferred income taxes . . . . . . . . . . . . . . . . . . . 2,223 1,980 933 549 96 — (264 ) (289 ) 154 Investment tax credit . . . . . . . . . . . . . . . . . . . . 154 — — — — — — — Unrealized losses (gains) on mark-to-market 971 and hedging transactions . . . . . . . . . . . . . . . . 22 — (27 ) 886 — — 90 — 14 Liabilities associated with assets held for sale . . — — — 14 — — — — 1,926 Asset retirement obligations . . . . . . . . . . . . . . . 1,864 6 55 1 — — — — 4,646 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,211 639 56 41 56 28 656 (41 ) 12,939 Total deferred credits and other liabilities . . . . . 7,474 2,625 1,017 1,491 152 28 482 (330 ) MINORITY INTERESTS . . . . . . . . . . . . . . . . . . — 1,486 354 850 94 132 59 (3 ) — PREFERRED AND PREFERENCE STOCK WITHOUT SINKING FUND REQUIREMENTS . . — 134 — — — — — 134 — COMMON STOCKHOLDERS’ EQUITY 11,252 Common stock . . . . . . . . . . . . . . . . . . . . . . . . 11,252 3 1 120 124 1 11,253 (11,502 ) Additional paid-in capital . . . . . . . . . . . . . . . . . — 9,393 9,190 5,614 2,974 545 454 (28,170 ) — 4,539 Retained earnings (deficit) . . . . . . . . . . . . . . . . 5,189 4,761 2,589 (1,115 ) (415 ) 1,264 (569 ) (7,165 ) — 650 Accumulated other comprehensive income (loss) 1,054 70 248 (472 ) — 650 (900 ) 16,441 Total common stockholders’ equity . . . . . . . . . . 16,441 15,211 11,850 4,867 2,211 1,810 11,788 (47,737 ) TOTAL LIABILITIES AND COMMON STOCKHOLDERS’ EQUITY . . . . . . . . . . . . . . 55,470 30,952 28,089 17,641 11,064 3,395 2,087 24,286 (62,044 ) (12,753 ) (10,983 ) (10,831 ) (4,327 ) (66 ) (772 ) (22,457 ) 62,189 — Intercompany balances . . . . . . . . . . . . . . . . . . REPORTABLE SEGMENT LIABILITIES AND COMMON STOCKHOLDERS’ EQUITY . . . . . . . $18,199 $17,106 $ 6,810 $6,737 $3,329 $1,315 $ 1,829 $ 145 $55,470 7 Consolidated Data
  • 8. Duke Energy Corporation CONSOLIDATED BALANCE SHEETS - ASSETS December 31 2004 2003 2002 2001 2000 (In millions) CURRENT ASSETS $ 533 Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 397 $ 382 $ 290 $ 622 1,319 Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763 492 — — 3,237 Receivables, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,953 4,861 5,301 8,648 942 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 941 971 863 659 40 Assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361 — — — 962 Unrealized gains on mark-to-market and hedging transactions . . . . . . . . . . . . . . . 1,566 2,144 2,326 11,038 938 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 694 887 667 1,466 7,971 Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,675 9,737 9,447 22,433 INVESTMENTS AND OTHER ASSETS 1,292 Investments in unconsolidated affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,398 2,015 1,480 1,387 1,374 Nuclear decommissioning trust funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 925 708 716 717 4,148 Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,962 3,747 1,730 1,566 232 Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260 589 576 462 1,379 Unrealized gains on mark-to-market and hedging transactions . . . . . . . . . . . . . . . 1,857 2,480 3,117 4,218 84 Assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,444 — — — 1,128 Investments in residential, commercial and multi-family real estate, net . . . . . . . . 1,353 1,440 1,253 1,150 1,896 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,137 1,645 1,612 1,447 11,533 Total investments and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,336 12,624 10,484 10,947 PROPERTY, PLANT AND EQUIPMENT 46,806 Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,987 47,368 38,345 33,501 13,300 Less accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . 12,139 11,266 9,936 9,075 33,506 Net property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,848 36,102 28,409 24,426 REGULATORY ASSETS AND DEFERRED DEBITS 297 Deferred debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 263 203 208 1,269 Regulatory asset related to income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,152 936 510 506 894 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 939 460 571 756 2,460 Total regulatory assets and deferred debits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,366 1,659 1,284 1,470 TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $55,470 $57,225 $60,122 $49,624 $59,276 8 Consolidated Data
  • 9. Duke Energy Corporation CONSOLIDATED BALANCE SHEETS - LIABILITIES AND COMMON STOCKHOLDERS’ EQUITY December 31 2004 2003 2002 2001 2000 (In millions) CURRENT LIABILITIES $ 2,414 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,317 $ 3,637 $ 4,231 $ 7,733 68 Notes payable and commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 915 1,603 1,826 273 Taxes accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 156 443 261 287 Interest accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304 310 239 208 30 Liabilities associated with assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . 651 — — — 1,832 Current maturities of long-term debt and preferred stock . . . . . . . . . . . . . . . . . 1,200 1,331 274 470 819 Unrealized losses on mark-to-market and hedging transactions . . . . . . . . . . . . 1,283 1,918 1,519 11,070 1,815 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,849 1,770 2,146 1,769 7,538 Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,748 10,037 10,455 23,337 LONG-TERM DEBT, Including debt to affiliates of $876 at 2003 . . . . . . . . . . 16,932 20,622 20,221 12,321 10,717 DEFERRED CREDITS AND OTHER LIABILITIES 5,228 Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,120 4,834 4,307 3,851 154 Investment tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 176 189 211 971 Unrealized losses on mark-to-market and hedging transactions . . . . . . . . . . . . 1,754 1,548 2,212 3,581 14 Liabilities associated with assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . 737 — — — 1,926 Asset retirement obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,707 — — — 4,646 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,789 4,893 3,564 3,435 12,939 Total deferred credits and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,272 11,451 10,272 11,078 GUARANTEED PREFERRED BENEFICIAL INTERESTS IN SUBORDINATED NOTES OF DUKE ENERGY CORPORATION OR SUBSIDIARIES . . . . . . . . . . — — 1,408 1,407 1,406 MINORITY INTERESTS IN FINANCING SUBSIDIARY . . . . . . . . . . . . . . . . . . — — — 1,025 1,025 MINORITY INTERESTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,486 1,701 1,904 1,221 1,410 PREFERRED AND PREFERENCE STOCK Preferred and preference stock with sinking fund requirements a . . . . . . . . . . . — — 23 25 38 134 Preferred and preference stock without sinking fund requirements . . . . . . . . . . 134 134 209 209 134 Total preferred and preference stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 157 234 247 COMMON STOCKHOLDERS’ EQUITY 11,252 Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,519 9,236 6,217 4,797 4,539 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,060 6,417 6,292 5,379 650 Accumulated other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . 169 (709 ) 180 (120 ) 16,441 Total common stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,748 14,944 12,689 10,056 TOTAL LIABILITIES AND COMMON STOCKHOLDERS’ EQUITY . . . . . . . . . . . $55,470 $57,225 $60,122 $49,624 $59,276 a Reclassified to Long-Term Debt as a result of the adoption of Statement of Financial Accounting Standards No. 150, “Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity” which was effective July 1, 2003. 9 Consolidated Data
  • 10. Duke Energy Corporation CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended December 31 2004 2003 2002 (In millions) CASH FLOWS FROM OPERATING ACTIVITIES $ 1,490 Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1,323 ) $ 1,034 Adjustments to reconcile net income (loss) to net cash provided by operating activities: 2,037 Depreciation and amortization (including amortization of nuclear fuel) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,987 1,692 Cumulative effect of change in accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 162 — (201 ) Gains on sales of investments in commercial and multi-family real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (103 ) (106 ) (193 ) Gains on sales of equity investments and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (86 ) (81 ) 194 Impairment charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,495 545 867 Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (534 ) 495 92 Purchased capacity levelization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 175 (278 ) Contribution to company-sponsored pension plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (192 ) (9 ) (Increase) decrease in 216 Net realized and unrealized mark-to-market and hedging transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15 ) 596 (188 ) Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,126 12 (48 ) Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30 ) 134 (35 ) Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (77 ) (335 ) Increase (decrease) in (5 ) Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,047 ) 798 188 Taxes accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (168 ) (332 ) 116 Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 (194 ) (322 ) Capital expenditures for residential real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (196 ) (179 ) 268 Cost of residential real estate sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 117 (305 ) Other, assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (249 ) 205 246 Other, liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 (368 ) NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,139 3,396 4,199 CASH FLOWS FROM INVESTING ACTIVITIES (2,055 ) Capital expenditures, net of refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,242 ) (4,745 ) (46 ) Investment expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (153 ) (584 ) — Acquisition of Westcoast Energy Inc., net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (1,707 ) (64,594 ) Purchases of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (40,032 ) (12,393 ) 64,092 Proceeds from sales and maturities of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,641 11,859 1,542 Net proceeds from the sales of equity investments and other assets, and sales of and collections on notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,966 516 606 Proceeds from the sales of commercial and multi-family real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 169 (309 ) Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (162 ) (69 ) NET CASH USED IN INVESTING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (764 ) (668 ) (6,954 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the: 153 Issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,009 5,114 1,704 Issuance of common stock and common stock related to employee benefit plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277 1,323 Payments for the redemption of: (3,646 ) Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,849 ) (1,837 ) (176 ) Preferred stock of a subsidiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38 ) — — Preferred and preference stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (88 ) Guaranteed preferred beneficial interests in subordinated notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (250 ) — (67 ) Notes payable and commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,702 ) (1,067 ) (1,477 ) Distributions to minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,508 ) (2,260 ) 1,277 Contributions from minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,432 2,535 (1,065 ) Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,051 ) (938 ) 19 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 64 NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,278 ) (2,657 ) 2,846 CHANGES IN CASH AND CASH EQUIVALENTS ASSOCIATED WITH ASSETS HELD FOR SALE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 (55 ) — CHANGE IN CASH AND CASH EQUIVALENTS 136 Net increase in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 91 397 Cash and cash equivalents at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381 290 CASH AND CASH EQUIVALENTS AT END OF YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 533 $ 397 $ 381 Supplemental Disclosures Cash paid for interest, net of amount capitalized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,323 $ 1,324 $ 1,011 Cash (refunded) paid for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (339 ) $ (18 ) $ 344 Significant non-cash transactions: Debt retired in connection with disposition of businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 840 $ 387 $ — Note receivable from sale of southeast plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 48 $ — $ — Remarketing of senior notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,625 $ — $ — Acquisition of Westcoast Energy Inc. Fair value of assets acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 9,254 Liabilities assumed, including debt and minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 8,047 Issuance of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1,702 Capital lease obligations related to property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 117 10 Consolidated Data
  • 11. Duke Energy Corporation CAPITAL AND INVESTMENT EXPENDITURES BY BUSINESS SEGMENT a Years ended December 31 2004 2003 2002 2001 2000 (In millions) $1,020 Franchised Electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 997 $1,269 $1,115 $ 661 533 Natural Gas Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 766 2,878 748 973 213 Field Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 309 587 376 22 Duke Energy North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277 2,013 3,213 1,735 28 International Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 412 442 980 Crescent b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 568 290 275 452 550 Other c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 (21) 136 461 328 — Cash acquired in acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (77) (17) (100) TOTAL CAPITAL AND INVESTMENT EXPENDITURES . . . . . . . . . . . . . . . $2,423 $2,591 $7,215 $7,001 $5,503 a Amounts include the acquisition of Westcoast Energy Inc. (Westcoast) in 2002. b Amounts include capital expenditures for residential real estate included in operating cash flows of $322 million in 2004, $196 million in 2003, $179 million in 2002, $230 million in 2001 and $113 million in 2000. c Amounts include deferral of the consolidation of 50% of the profit earned by Duke/Fluor Daniel for the construction of Duke Energy North America’s merchant generation plants, which is associated with Duke Energy’s share of ownership. 11 Consolidated Data
  • 12. Duke Energy Corporation LONG-TERM DEBT AS OF 12/31/2004 Redemption Date of Next Next Price at Redemption Redemption 2010 and (In millions) Year Due 12/31/04 (%) Price Change Price (%) 2005 2006 2007 2008 2009 Beyond Total DUKE ENERGY CORPORATION UNCONSOLIDATED First and Refunding Mortgage Bonds: 3.75% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 $— $— $— $500 — $— $500 4.50% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 200 200 5.30% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2015 — — — — — 500 500 a 8.95% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2027 — — — — — 14 14 Subtotal, First and Refunding Mortgage Bonds . . . . . . . . . . . . . . . . . — — — 500 — 714 1,214 Pollution Control Bonds: Series 1999 (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2012 100.000 — — — — — 20 20 Series 1990 (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2014 100.000 — — — — — 40 40 Series 1993 (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2017 100.000 — — — — — 77 77 Series 1999 (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2017 100.000 — — — — — 35 35 Subtotal, Pollution Control Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — 172 172 Notes: Senior Unsecured Note (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . 2005 100.000 250 — — — — — 250 Senior Unsecured Note (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . 2005 250 — — — — — 250 4.611% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2007 — — 110 — — — 110 4.20% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 — — — 300 — — 300 5.375% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009 — — — — 200 — 200 7.375% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 300 300 5.625% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2012 — — — — — 400 400 6.25% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2012 — — — — — 750 750 a 6.90% - 9.210% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2011-2016 5 5 5 5 5 20 45 6.60% Retail Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2022 4/1/2006 100.000 — — — — — 250 250 1.75% Convertible Senior Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . 2023 — — — — — 770 770 6.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2028 — — — — — 300 300 6.45% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2032 — — — — — 350 350 Subtotal, Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505 5 115 305 205 3,140 4,275 Accounts Receivable Securitization . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 300 — — — — 300 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 1 1 1 1 2 3 9 Commercial Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — 150 150 Fair Value Hedge Carrying Value Adjustment . . . . . . . . . . . . . . . . . . . . — 6 5 5 5 22 43 Unamortized Debt Discount/Premium . . . . . . . . . . . . . . . . . . . . . . . . . — (1 ) (1 ) (1 ) (1 ) (7 ) (11) Subtotal, Duke Energy Corporation Unconsolidated . . . . . . . . . . . . . . 506 311 120 810 211 4,194 6,152 DUKE CAPITAL LLC UNCONSOLIDATED Notes: 6.25% Note A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005 250 — — — — — 250 4.302% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 400 — — — — 400 4.331% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 350 — — — — 350 7.50% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009 — — — — 500 — 500 4.37% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009 — — — — 148 — 148 6.25% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2013 — — — — — 500 500 5.50% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2014 — — — — — 149 149 5.668% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2014 — — — — — 408 408 6.75% Note B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2018 — — — — — 150 150 8.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2019 — — — — — 500 500 6.75% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2032 — — — — — 240 240 Subtotal, Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 750 — — 648 1,947 3,595 Duke/Fluor Daniel Loan (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . . 17 — — — — — 17 Fair Value Hedge Carrying Value Adjustment . . . . . . . . . . . . . . . . . . . . — — — — 41 (11 ) 30 Unamortized Debt Discount/Premium . . . . . . . . . . . . . . . . . . . . . . . . — — — — — (1 ) (1) Subtotal, Duke Capital LLC Unconsolidated . . . . . . . . . . . . . . . . . . . . 267 750 — — 689 1,935 3,641 a Private Placement 12 Consolidated Data
  • 13. Duke Energy Corporation LONG-TERM DEBT (CONTINUED) Redemption Date of Next Next Price at Redemption Redemption 2010 and (In millions) Year Due 12/31/04 (%) Price Change Price (%) 2005 2006 2007 2008 2009 Beyond Total PANENERGY CORP Bonds: 8.625% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2025 4/15/2005 104.030 — — — — — 100 100 Notes: 7.25% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005 100 — — — — — 100 7.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 150 — — — — 150 Unamortized Debt Discount/Premium . . . . . . . . . . . . . . . . . . . . . . . . — — — — 2 — 2 Subtotal, PanEnergy Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 150 — — 2 100 352 TEXAS EASTERN TRANSMISSION Notes: 5.25% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2007 — — 300 — — — 300 7.30% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 300 300 Medium-term, Series A, 7.92% - 9.07% . . . . . . . . . . . . . . . . . . . . . 2012 — — — — — 20 20 7.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2032 — — — — — 450 450 Subtotal, Texas Eastern Transmission . . . . . . . . . . . . . . . . . . . . . . . . — — 300 — — 770 1,070 DUKE ENERGY FIELD SERVICES, LLC 7.50% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005 600 — — — — — 600 5.75% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 300 — — — — 300 7.875% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 800 800 6.875% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2011 — — — — — 250 250 8.125% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2030 — — — — — 300 300 Capitalized Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 — — — — 2 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 — — — — — 5 Fair Value Hedge Carrying Value Adjustment . . . . . . . . . . . . . . . . . . . 2 — — — — 5 7 Unamortized Debt Discount/Premium . . . . . . . . . . . . . . . . . . . . . . . . — — — — — (8 ) (8) Subtotal, Duke Energy Field Services . . . . . . . . . . . . . . . . . . . . . . . . 608 301 — — — 1,347 2,256 WESTCOAST ENERGY INC. 6.450% Series V . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 104 — — — — 104 5.70% MTN Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 — — — 124 — — 124 12.55% Series L . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 83 83 7.20% MTN Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 124 124 8.30% Series P . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2013 — — — — — 83 83 8.50% Series U . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2015 — — — — — 104 104 8.50% Series O . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2018 — — — — — 124 124 9.90% Series S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2020 — — — — — 83 83 8.85% Series T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2025 — — — — — 124 124 8.80% MTN Series 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2025 — — — — — 21 21 7.30% Series W . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2026 — — — — — 104 104 6.75% MTN Series 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2027 — — — — — 124 124 7.15% MTN Series 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2031 — — — — — 165 165 Synthetic Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 168 — — — — 168 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — 24 24 Subtotal, Westcoast Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 272 — 124 — 1,163 1,559 13 Consolidated Data
  • 14. Duke Energy Corporation LONG-TERM DEBT (CONTINUED) Redemption Date of Next Next Price at Redemption Redemption 2010 and (In millions) Year Due 12/31/04 (%) Price Change Price (%) 2005 2006 2007 2008 2009 Beyond Total UNION GAS LIMITED 8.85% Series 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005 83 — — — — — 83 7.80% Series 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 62 — — — — 62 5.19% MTN Series 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2007 — — 165 — — — 165 5.70% MTN Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 — — — 83 — — 83 13.50% Series 1983 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 100.000 1 1 1 2 — — 5 10.75% Series 1989 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009 2 2 2 3 22 — 31 7.20% MTN Series 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 153 153 11.55% 1988 Series II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 3 4 4 3 3 30 47 6.65% MTN Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2011 — — — — — 207 207 10.625% Series 1989 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2011 7/12/2007 100.000 — — — — — 104 104 7.90% Series 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2014 — — — — — 124 124 11.50% Series 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2015 — — — — — 124 124 9.70% 1992 Series II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2017 — — — — — 104 104 8.75% Series 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2018 — — — — — 104 104 8.65% Series 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2018 — — — — — 62 62 8.65% Series 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2025 — — — — — 104 104 Subtotal, Union Gas Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 69 172 91 25 1,116 1,562 MARITIMES & NORTHEAST PIPELINE Term Bank Loans (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009 64 64 64 64 184 — 440 7.7% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2019 — — — — — 240 240 6.9% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2019 — — — — — 215 215 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 4 4 4 — 18 Subtotal, Maritimes & Northeast Pipeline . . . . . . . . . . . . . . . . . . . . . 67 67 68 68 188 455 913 DUKE ENERGY NORTH AMERICA Capitalized Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009-2032 117 12 12 14 14 18 187 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 — — — — 9 Subtotal, Duke Energy North America . . . . . . . . . . . . . . . . . . . . . . . . 121 17 12 14 14 18 196 INTERNATIONAL ENERGY Unsecured Bank Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005 13 — — — — — 13 Senior Unsecured Notes (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . 2008 7 7 8 1 — — 23 3.75% Senior Unsecured Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 — — — 40 — — 40 5.873% Term Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 — 1 1 — — — 2 6.0% - 10.0% Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2017 37 41 45 49 55 235 462 Senior Unsecured Term Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010-2024 4 3 3 3 2 18 33 Subtotal, International Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 52 57 93 57 253 573 CRI Construction and Mortgage Loans . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2011 12 1 10 1 10 — 34 a Algonquin Gas Transmission, 5.69% Notes . . . . . . . . . . . . . . . . . . . . 2012 — — — — — 300 300 a East Tennessee Natural Gas, 5.71% Notes . . . . . . . . . . . . . . . . . . . . 2012 — — — — — 150 150 Other Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Various 1 1 1 1 1 1 6 Subtotal, Duke Capital LLC Consolidated . . . . . . . . . . . . . . . . . . . . . 1,326 1,680 620 392 986 7,608 12,612 Consolidated Long-term Debt Scheduled Maturities . . . . . . . . . . . . . . . . $1,832 $1,991 $740 $1,202 $1,197 $11,802 $18,764 a Private Placement 14 Consolidated Data
  • 15. Duke Energy Corporation PREFERRED AND PREFERENCE STOCK WITHOUT SINKING FUND REQUIREMENTS Redemption Date of Next Next December 31, Price at Redemption Redemption 2004 Year Due 12/31/04 (%) Price Change Price (%) (In millions) PREFERRED AND PREFERENCE STOCK Without Sinking Fund Requirements 4.50% Series C a . . . . . . . . . . . . . . . . . . . . . . . . . Perpetual 101.00 n/a n/a $ 18 7.85% Series S . . . . . . . . . . . . . . . . . . . . . . . . . . Perpetual 103.14 9/16/2005 102.75 30 7.00% Series W . . . . . . . . . . . . . . . . . . . . . . . . . . Perpetual 103.15 3/16/2005 102.80 25 7.04% Series Y . . . . . . . . . . . . . . . . . . . . . . . . . . . Perpetual 103.17 6/16/2005 102.82 30 6.375% Preferred Stock A, 1993 . . . . . . . . . . . . . . Perpetual 25.72 12/16/2005 25.64 31 TOTAL PREFERRED AND PREFERENCE STOCK WITHOUT SINKING FUND REQUIREMENTS $134 a Redemption price is not subject to change. 15 Consolidated Data
  • 16. Duke Energy Corporation CAPITALIZATION December 31 2004 (In millions) 2003 2002 2001 2000 CAPITALIZATION AND CURRENT DEBT Notes Payable and Commercial Paper . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68 —% $ 130 —% $ 915 2% $ 1,603 5% $ 1,826 6% Current Maturities of Long Term Debt and Preferred Stock . . . . . . . . . . . 1,832 5% 1,200 3% 1,331 3% 274 1% 470 2% a Long-Term Debt ........................................ 16,932 46% 20,622 55% 20,221 50% 12,321 40% 10,717 40% Guaranteed Preferred Beneficial Interests in Subordinated Notes of Duke Energy Corporation or Subsidiaries . . . . . . . . . . . . . . . . — —% — —% 1,408 3% 1,407 5% 1,406 5% Minority Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,486 4% 1,701 5% 1,904 5% 2,246 7% 2,435 9% Preferred and Preference Stock: Preferred & preference stock with sinking fund requirements . . . . . . . . . . — — 23 25 38 Preferred & preference stock without sinking fund requirements . . . . . . . . 134 134 134 209 209 Total preferred and preference stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 —% 134 —% 157 1% 234 1% 247 1% Common Stock: Balance at the beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,519 9,236 6,217 4,797 4,603 Dividend reinvestment and employee benefits . . . . . . . . . . . . . . . . . . . 108 283 342 329 194 1,625 b 2,677 b 1,091 b Other capital stock transactions, net . . . . . . . . . . . . . . . . . . . . . . . . . . — — Balance at the end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,252 9,519 9,236 6,217 4,797 Retained Earnings: Balance at the beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,060 6,417 6,292 5,379 4,397 Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,490 (1,323 ) 1,034 1,898 1,776 Dividend reinvestment and employee benefits . . . . . . . . . . . . . . . . . . . 20 (6 ) — — — Common stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,018 ) (993 ) (905 ) (973 ) (809) Preferred and preference stock dividends and premiums on redemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9 ) (15 ) (13 ) (14 ) (19) Other capital stock transactions, net . . . . . . . . . . . . . . . . . . . . . . . . . . (4 ) (20 ) 9 2 34 Balance at the end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,539 4,060 6,417 6,292 5,379 Accumulated Other Comprehensive Income (loss) . . . . . . . . . . . . . . . . . 650 169 (709 ) 180 (120 ) Total Common Stockholders’ Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,441 45% 13,748 37% 14,944 36% 12,689 41% 10,056 37% TOTAL CAPITALIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,893 100% $37,535 100% $40,880 100% $30,774 100% $27,157 100% COVERAGE RATIOS —c Fixed charges - using SEC guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 2.2 3.9 3.7 a Includes debt to affiliates of $876 million at 2003. b Reflects equity offerings in 2004, 2002 and 2001 and the issuance of $1,702 million of stock related to the acquisition of Westcoast in 2002. c Earnings were inadequate to cover fixed charges by $1,707 million for the year ended December 31, 2003. 16 Consolidated Data
  • 17. FRANCHISED ELECTRIC 2004 AT A GLANCE VA EBIT $1,467 million NC TOTAL GENERATING SC CAPABILITY (NET MW) GA Summer 18,414 Winter 18,469 NC PRINCIPAL OFFICERS RUTH G. SHAW President and Chief Executive Officer, Duke Power HENRY B. BARRON, JR. Electric Lines Group Vice President, Nuclear Generation and 100 Kilovolt Chief Nuclear Officer 230 Kilovolt SC 500 Kilovolt MYRON L. CALDWELL Group Vice President and Chief Financial Officer Generating Facilities Nuclear THEOPOLIS HOLEMAN Fossil Group Vice President, Power Delivery Hydro Combustion Turbine WILLIAM F. HALL, III Group Vice President, Fossil and Hydro Generation SANDRA P MEYER . Group Vice President, Customer Service, Sales and Marketing CLARENCE L. RAY, JR. Group Vice President, Procurement, Construction and Environmental Health and Safety ELLEN T. RUFF Group Vice President, Power Policy and Planning, External Relations 17 Franchised Electric
  • 18. Franchised Electric SEGMENT EARNINGS BEFORE INTEREST AND TAXES Years ended December 31 2004 2003 2002 2001 (In millions) TOTAL REGULATED ELECTRIC REVENUES .................................................................... $5,069 $4,875 $4,888 $4,746 OPERATING EXPENSES 1,264 Operation, maintenance and other .................................................................................. 1,312 1,227 1,126 1,206 Fuel used in electric generation and purchased power ...................................................... 1,192 1,219 1,206 863 Depreciation and amortization ........................................................................................ 748 614 588 280 Property and other taxes ................................................................................................ 273 269 265 3,613 Total operating expenses ................................................................................................ 3,525 3,329 3,185 GAINS ON SALES OF OTHER ASSETS, NET .................................................................. 3 6 — — OPERATING INCOME .................................................................................................. 1,459 1,356 1,559 1,561 TOTAL OTHER INCOME, NET OF EXPENSES a .............................................................. 8 47 36 65 REPORTABLE SEGMENT EBIT ...................................................................................... $1,467 $1,403 $1,595 $1,626 a Includes equity allowance for funds used during construction of $16 million for 2004, $40 million for 2003, $39 million for 2002 and $22 million for 2001. Excludes debt allowance for funds used during construction of $7 million for 2004, $14 million for 2003, $18 million for 2002 and $10 million for 2001 which is included in interest expense on the Consolidated Statement of Operations. 18 Franchised Electric
  • 19. Franchised Electric SEGMENT BALANCE SHEETS - ASSETS December 31 2004 2003 2002 2001 (In millions) CURRENT ASSETS $ 14 Cash and cash equivalents ............................................................................................ $ (7) $ 17 $ — 185 Short-term investments.................................................................................................. 155 1 — 1,015 Receivables, net .......................................................................................................... 2,938 898 — 405 Inventory .................................................................................................................... 393 363 406 Unrealized gains on mark-to-market and hedging transactions .......................................... — 1 — — 13 Other .......................................................................................................................... 14 4 226 1,632 Total current assets ...................................................................................................... 3,494 1,283 632 INVESTMENTS AND OTHER ASSETS 12,439 Investments and advances in subsidiaries........................................................................ 8,708 10,714 10,042 1,374 Nuclear decommissioning trust funds .............................................................................. 925 708 716 2 Unrealized gains on mark-to-market and hedging transactions .......................................... 6 15 9 1,077 Other .......................................................................................................................... 1,093 12 6 14,892 Total investments and other assets.................................................................................. 10,732 11,449 10,773 PROPERTY, PLANT AND EQUIPMENT 20,950 Cost ............................................................................................................................ 20,326 19,298 18,174 7,830 Less accumulated depreciation and amortization .............................................................. 7,676 7,243 7,886 13,120 Net property, plant and equipment.................................................................................. 12,650 12,055 10,288 REGULATORY ASSETS AND DEFERRED DEBITS 231 Deferred debt expense .................................................................................................. 207 195 166 376 Regulatory asset related to income taxes ........................................................................ 381 383 489 701 Other .......................................................................................................................... 672 285 418 1,308 Total regulatory assets and deferred debits ...................................................................... 1,260 863 1,073 TOTAL ASSETS ............................................................................................................ 30,952 28,136 25,650 22,766 (12,753) Intercompany balances .................................................................................................. (10,896) (11,008) (8,573) REPORTABLE SEGMENT ASSETS ................................................................................ $ 18,199 $ 17,240 $ 14,642 $14,193 19 Franchised Electric
  • 20. Franchised Electric SEGMENT BALANCE SHEETS - LIABILITIES AND STOCKHOLDERS’ EQUITY December 31 2004 (In millions) 2003 2002 2001 CURRENT LIABILITIES $ 444 Accounts payable.......................................................................................................... $ 365 $ 505 $ 1,872 Notes payable and commercial paper.............................................................................. — 78 238 143 9 Taxes accrued (prepaid) ................................................................................................ (71) 217 353 75 Interest accrued ............................................................................................................ 76 75 49 506 Current maturities of long-term debt................................................................................ 6 6 7 Unrealized losses on mark-to-market and hedging transactions .......................................... — 2 — — 347 Other .......................................................................................................................... 359 168 297 1,381 Total current liabilities .................................................................................................. 815 1,209 2,721 LONG-TERM DEBT ...................................................................................................... 5,656 6,957 4,703 3,208 DEFERRED CREDITS AND OTHER LIABILITIES 2,223 Deferred income taxes .................................................................................................. 2,032 1,581 2,079 154 Investment tax credit .................................................................................................... 165 175 187 — Nuclear decommissioning costs externally funded ............................................................ — 708 716 22 Unrealized losses on mark-to-market and hedging transactions .......................................... 22 10 14 1,864 Asset retirement obligations .......................................................................................... 1,631 — — 3,211 Other .......................................................................................................................... 2,766 1,718 551 7,474 Total deferred credits and other liabilities ........................................................................ 6,616 4,192 3,547 GUARANTEED PREFERRED BENEFICIAL INTERESTS IN SUBORDINATED NOTES OF DUKE ENERGY CORPORATION OR SUBSIDIARIES...................................... — — 602 601 EQUITY ...................................................................................................................... 16,441 13,748 14,944 12,689 TOTAL LIABILITIES AND EQUITY .................................................................................. 30,952 28,136 25,650 22,766 (12,753) Intercompany balances .................................................................................................. (10,896) (11,008) (8,573) REPORTABLE SEGMENT LIABILITIES AND EQUITY........................................................ $ 18,199 $ 17,240 $ 14,642 $14,193 20 Franchised Electric
  • 21. Franchised Electric OPERATING STATISTICS December 31 2004 2003 2002 2001 SOURCES OF ELECTRIC ENERGY (GWH) Generated - net output: 44,638 Coal .......................................................................................................................................... 43,696 43,561 41,796 39,218 Nuclear ...................................................................................................................................... 40,256 41,155 39,922 1,503 Hydro ........................................................................................................................................ 2,101 317 224 129 Oil & gas .................................................................................................................................. 106 98 139 85,488 Total generation .......................................................................................................................... 86,159 85,131 82,081 2,158 Purchased power and net interchange .......................................................................................... 1,585 4,102 3,050 87,646 Total sources of energy ................................................................................................................ 87,744 89,233 85,131 4,938 Less: Line loss and company usage.............................................................................................. 4,916 5,450 5,446 TOTAL GWH SOURCES .............................................................................................................. 82,708 82,828 83,783 79,685 ELECTRIC ENERGY SALES (GWH) 25,151 Residential.................................................................................................................................. 23,947 24,466 23,272 25,204 General service .......................................................................................................................... 24,355 24,242 23,666 Industrial: 7,147 Textile ........................................................................................................................................ 7,562 8,443 8,829 18,063 Other ........................................................................................................................................ 17,202 17,816 18,074 7,194 Other energy and wholesale.......................................................................................................... 9,340 8,706 6,979 82,759 Total GWh sales billed ................................................................................................................ 82,406 83,673 80,820 (51) Unbilled GWh sales .................................................................................................................... 422 110 (1,135) TOTAL GWH SALES.................................................................................................................... 82,708 82,828 83,783 79,685 Total Capability - Net MW a (time of peak) 18,414 Summer .................................................................................................................................... 18,807 18,438 17,912 18,469 Winter........................................................................................................................................ 18,521 18,438 17,912 Peak Load - MW b 15,407 Summer .................................................................................................................................... 15,594 16,724 16,165 14,345 Winter........................................................................................................................................ 14,056 13,666 12,863 Nuclear Capacity Factor (%) c ...................................................................................................... 90 91 95 92 System Load Factor (%) b ............................................................................................................ 61 59 57 57 a Includes 12.5% of Catawba. b Excludes the portion of the demand of the other joint owners of the Catawba Nuclear Station met by their retained ownership. c Includes 100% of Catawba. 21 Franchised Electric
  • 22. Franchised Electric OPERATING STATISTICS December 31 2004 2003 2002 2001 REVENUES FROM GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRICITY (IN MILLIONS) $1,886 Residential revenues...................................................................................................... $1,777 $1,794 $1,700 1,519 General service revenues .............................................................................................. 1,455 1,430 1,386 Industrial revenues: 293 Textile revenues .......................................................................................................... 309 335 353 775 Other revenues .......................................................................................................... 738 751 759 351 Other energy and wholesale revenues.............................................................................. 431 343 367 4,824 Total revenues billed...................................................................................................... 4,710 4,653 4,565 –– Unbilled revenues ........................................................................................................ 27 8 (66) 9 Other electric revenues .................................................................................................. (25) 28 72 TOTAL REVENUES FROM GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRICITY ................................................................................ $4,833 $4,712 $4,689 $4,571 AVERAGE NUMBER OF CUSTOMERS (IN THOUSANDS) 1,865 Residential .................................................................................................................. 1,835 1,799 1,803 312 General service ............................................................................................................ 306 299 295 Industrial: 1 Textile........................................................................................................................ 1 1 1 7 Other ........................................................................................................................ 7 7 7 8 Total industrial ........................................................................................................ 8 8 8 12 Other energy ................................................................................................................ 11 11 11 TOTAL AVERAGE NUMBER OF CUSTOMERS ................................................................ 2,197 2,160 2,117 2,117 22 Franchised Electric
  • 23. NATURAL GAS TRANSMISSION Major Offices 2004 AT A GLANCE BC Processing Storage Union Gas Service Area EBIT $1,310 million BC Pipeline & THROUGHPUT 3,332 TBtu Field Services STORAGE CAPACITY 258 Bcf CALGARY VANCOUVER PRINCIPAL OFFICERS Maritimes & NE BOSTON MARTHA B. WYRSH Union Gas President and Chief Executive Officer, Algonquin CHATHAM Duke Energy Gas Transmission GREGORY P BILINSKI . Texas Eastern Group Vice President, Operations and Technical Services NASHVILLE GUY G. BUCKLEY East Tennessee Group Vice President, East Tennessee and Gulfstream ALAN N. HARRIS HOUSTON Group Vice President and Chief Financial Officer, Duke Energy Gas Transmission Gulfstream GREGORY J. RIZZO Group Vice President, Duke Energy Gas Transmission DOUG HAUGHEY President, DEGT West 23 Natural Gas Transmission
  • 24. Natural Gas Transmission SEGMENT EARNINGS BEFORE INTEREST AND TAXES Years Ended December 31 2002c 2004 (In millions) 2003 2001 TOTAL REGULATED NATURAL GAS REVENUES ............................................................ $3,290 $3,197 $2,464 $1,060 OPERATING EXPENSES 758 Natural gas and petroleum products purchased................................................................ 768 409 — 701 Operation, maintenance and other .................................................................................. 661 533 300 418 Depreciation and amortization ........................................................................................ 393 324 141 156 Property and other taxes ................................................................................................ 147 154 63 2,033 Total operating expenses ................................................................................................ 1,969 1,420 504 GAINS ON SALES OF OTHER ASSETS, NET .................................................................. 17 7 — — OPERATING INCOME .................................................................................................. 1,274 1,235 1,044 556 OTHER INCOME AND EXPENSES 25 Equity in earnings of unconsolidated affiliates .................................................................. 27 106 45 16 Gains on sales and impairments of equity investments...................................................... 90 32 — Other income and expenses, net a .................................................................................. 17 8 10 6 58 Total other income and expenses .................................................................................... 125 148 51 MINORITY INTEREST EXPENSE b ................................................................................ 22 43 31 — REPORTABLE SEGMENT EBIT ...................................................................................... $1,310 $1,317 $1,161 $ 607 a Includes equity allowance for funds used during construction of $9 million for 2004, $33 million for 2003, $16 million for 2002 and $6 million for 2001. Excludes debt allowance for funds used during construction of $7 million for 2004, $21 million for 2003, $9 million for 2002 and $1 million for 2001 which is included in interest expense on the Consolidated Statement of Operations. b Includes minority interest expense related to EBIT and excludes minority interest expense related to interest and taxes. c In March 2002, Duke Energy acquired Westcoast. The majority of the acquisition was allocated to the Natural Gas Transmission segment. 24 Natural Gas Transmission
  • 25. Natural Gas Transmission SEGMENT BALANCE SHEETS - ASSETS December 31 2002a 2004 (In millions) 2003 2001 CURRENT ASSETS $ (44) Cash and cash equivalents ............................................................................................ $ 113 $ 63 $ — 638 Receivables, net .......................................................................................................... 446 556 — 324 Inventory .................................................................................................................... 236 153 29 7 Unrealized gains on mark-to-market and hedging transactions .......................................... 2 — — 45 Other .......................................................................................................................... 78 59 77 970 Total current assets ...................................................................................................... 875 831 106 INVESTMENTS AND OTHER ASSETS 772 Investments in unconsolidated affiliates .......................................................................... 792 1,235 653 10,983 Investments and advances in subsidiaries........................................................................ 3,235 2,778 1,803 3,398 Goodwill ...................................................................................................................... 3,224 2,760 481 57 Notes receivable .......................................................................................................... 28 22 — (10) Other .......................................................................................................................... 3 99 169 15,200 Total investments and other assets.................................................................................. 7,282 6,894 3,106 PROPERTY, PLANT AND EQUIPMENT 13,309 Cost ............................................................................................................................ 12,564 11,212 5,318 2,521 Less accumulated depreciation and amortization .............................................................. 2,133 1,808 1,471 10,788 Net property, plant and equipment.................................................................................. 10,431 9,404 3,847 REGULATORY ASSETS AND DEFERRED DEBITS 53 Deferred debt expense .................................................................................................. 60 64 30 893 Regulatory asset related to income taxes ........................................................................ 772 553 21 185 Other .......................................................................................................................... 206 221 130 1,131 Total regulatory assets and deferred debits ...................................................................... 1,038 838 181 TOTAL ASSETS ............................................................................................................ 28,089 19,626 17,967 7,240 (10,983) Intercompany balances .................................................................................................. (3,240) (2,778) (2,193) REPORTABLE SEGMENT ASSETS ................................................................................ $ 17,106 $16,386 $15,189 $ 5,047 a In March 2002, Duke Energy acquired Westcoast. The majority of the acquisition was allocated to the Natural Gas Transmission segment. 25 Natural Gas Transmission
  • 26. Natural Gas Transmission SEGMENT BALANCE SHEETS - LIABILITIES AND EQUITY December 31 2002a 2004 (In millions) 2003 2001 CURRENT LIABILITIES $ 209 Accounts payable.......................................................................................................... $ 233 $ 159 $ 270 213 Notes payable and commercial paper.............................................................................. 12 181 — 231 Taxes accrued .............................................................................................................. 232 450 325 87 Interest accrued ............................................................................................................ 91 84 13 157 Current maturities of long-term debt................................................................................ 389 238 134 3 Unrealized losses on mark-to-market and hedging transactions .......................................... 19 13 — 425 Other .......................................................................................................................... 515 324 129 1,325 Total current liabilities .................................................................................................. 1,491 1,449 871 LONG-TERM DEBT ...................................................................................................... 8,574 6,881 7,222 2,321 DEFERRED CREDITS AND OTHER LIABILITIES 1,980 Deferred income taxes .................................................................................................. 1,775 1,474 829 — Investment tax credit .................................................................................................... — 1 2 — Unrealized losses on mark-to-market and hedging transactions .......................................... — 9 — 6 Asset retirement obligations .......................................................................................... 30 — — 639 Other .......................................................................................................................... 646 643 213 2,625 Total deferred credits and other liabilities ........................................................................ 2,451 2,127 1,044 MINORITY INTERESTS ................................................................................................ 354 530 560 — PREFERRED AND PREFERENCE STOCK WITHOUT SINKING FUND REQUIREMENTS ........................................................................................................ — 109 — — EQUITY ...................................................................................................................... 15,211 8,164 6,609 3,004 TOTAL LIABILITIES AND EQUITY .................................................................................. 28,089 19,626 17,967 7,240 (10,983) Intercompany balances .................................................................................................. (3,240) (2,778) (2,193) REPORTABLE SEGMENT LIABILITIES AND EQUITY........................................................ $ 17,106 $16,386 $15,189 $ 5,047 a In March 2002, Duke Energy acquired Westcoast. The majority of the acquisition was allocated to the Natural Gas Transmission segment. 26 Natural Gas Transmission
  • 27. Natural Gas Transmission OPERATING STATISTICS December 31 2002a 2004 2003 2001 Throughput, trillion British thermal units (TBtu) a ............................................................ 3,332 3,362 3,160 1,781 258 Storage capacity, billion cubic feet (Bcf) .......................................................................... 257 254 101 a Represents share of capacity owned by DEGT. 27 Natural Gas Transmission
  • 28. FIELD SERVICES BRITISH 2004 AT A GLANCE ALBERTA COLUMBIA SASKATCHEWAN EBIT $380 million Calgary NATURAL GAS GATHERED AND PROCESSED / TRANSPORTED 7.3 TBtu/d NGL PRODUCTION 363 MBbl/d ND MT ID SD PRINCIPAL OFFICERS NE UT WILLIAM H. EASTER, III Chairman, President and Chief Executive Officer, CO Duke Energy Field Services MARK A. BORER Group Vice President, Marketing and Corporate Development MICHAEL J. BRADLEY Duke Energy Group Vice President, Gathering and Processing Field Services Offices ROSE M. ROBESON NGL Terminals Vice President and Chief Financial Officer Operating Areas 28 Field Services
  • 29. Field Services SEGMENT EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS Years Ended December 31 2004 (In millions) 2003 2002 2001 TOTAL NON-REGULATED NATURAL GAS, NATURAL GAS LIQUIDS AND OTHER REVENUES ............................................................................................ $10,104 $8,595 $5,952 $8,284 OPERATING EXPENSES 8,614 Natural gas and petroleum products purchased................................................................ 7,439 4,924 7,088 550 Operation, maintenance and other .................................................................................. 584 490 438 298 Depreciation and amortization ........................................................................................ 293 281 265 47 Property and other taxes ................................................................................................ 44 44 44 22 — Impairment and other related charges ............................................................................ 78 — 9,531 Total operating expenses ................................................................................................ 8,360 5,817 7,835 GAINS (LOSSES) ON SALES OF OTHER ASSETS, NET .................................................... 2 (4) — — OPERATING INCOME .................................................................................................. 575 231 135 449 OTHER INCOME AND EXPENSES 60 Equity in earnings of unconsolidated affiliates .................................................................. 56 60 45 (23) (Losses) Gains on sales and impairments of equity investments ........................................ 11 — — 37 Total other income and expenses .................................................................................... 67 60 45 MINORITY INTEREST EXPENSE a ................................................................................ 232 111 47 161 REPORTABLE SEGMENT EBIT FROM CONTINUING OPERATIONS .................................. $ 380 $ 187 $ 148 $ 333 a Includes minority interest expense related to EBIT and excludes minority interest expense related to interest and taxes. 29 Field Services
  • 30. Field Services SEGMENT BALANCE SHEETS - ASSETS December 31 2004 (In millions) 2003 2002 2001 CURRENT ASSETS $ 59 Cash and cash equivalents ............................................................................................ $ 43 $ 8 $ — 265 — Short-term investments.................................................................................................. — — 1,300 Receivables, net .......................................................................................................... 858 845 911 74 Inventory .................................................................................................................... 45 86 83 59 Unrealized gains on mark-to-market and hedging transactions .......................................... 89 209 244 17 Other .......................................................................................................................... 19 45 113 1,774 Total current assets ...................................................................................................... 1,054 1,193 1,351 INVESTMENTS AND OTHER ASSETS 157 Investments in unconsolidated affiliates .......................................................................... 194 239 252 10,832 Investments and advances in (from) subsidiaries .............................................................. (17) (277) (573) 498 Goodwill ...................................................................................................................... 493 481 571 Notes receivable .......................................................................................................... — 1 2 64 (9) Unrealized (losses) gains on mark-to-market and hedging transactions .............................. 29 47 64 37 — Assets held for sale ...................................................................................................... — — 96 Other .......................................................................................................................... 188 172 177 11,611 Total investments and other assets.................................................................................. 888 664 555 PROPERTY, PLANT AND EQUIPMENT 6,146 Cost ............................................................................................................................ 6,042 6,019 5,788 1,890 Less accumulated depreciation and amortization .............................................................. 1,579 1,377 1,096 4,256 Net property, plant and equipment.................................................................................. 4,463 4,642 4,692 REGULATORY ASSETS AND DEFERRED DEBITS............................................................ — — — 2 TOTAL ASSETS ............................................................................................................ 17,641 6,405 6,499 6,600 (10,831) Intercompany balances .................................................................................................. 12 294 513 REPORTABLE SEGMENT ASSETS ................................................................................ $ 6,810 $6,417 $6,793 $7,113 30 Field Services
  • 31. Field Services SEGMENT BALANCE SHEETS - LIABILITIES AND EQUITY December 31 2004 (In millions) 2003 2002 2001 CURRENT LIABILITIES $ 1,175 Accounts payable.......................................................................................................... $ 672 $ 679 $ 676 Notes payable and commercial paper.............................................................................. — 22 232 213 75 Taxes accrued (prepaid) ................................................................................................ 10 (188) (122) 59 Interest accrued ............................................................................................................ 59 59 57 607 — Current maturities of long-term debt and preferred stock .................................................. — — 84 Unrealized losses on mark-to-market and hedging transactions .......................................... 178 348 79 275 Other .......................................................................................................................... 152 121 243 2,275 Total current liabilities .................................................................................................. 1,093 1,251 1,146 LONG-TERM DEBT ...................................................................................................... 1,649 2,263 2,256 2,252 DEFERRED CREDITS AND OTHER LIABILITIES 933 Deferred income taxes .................................................................................................. 814 764 833 (27) Unrealized (gains) losses on mark-to-market and hedging transactions .............................. 38 49 16 55 Asset retirement obligations .......................................................................................... 45 — — 56 Other .......................................................................................................................... 28 63 47 1,017 Total deferred credits and other liabilities ........................................................................ 925 876 896 MINORITY INTERESTS ................................................................................................ 850 952 928 1,039 EQUITY ...................................................................................................................... 11,850 1,172 1,188 1,267 TOTAL LIABILITIES AND EQUITY .................................................................................. 17,641 6,405 6,499 6,600 (10,831) Intercompany balances .................................................................................................. 12 294 513 REPORTABLE SEGMENT LIABILITIES AND EQUITY........................................................ $ 6,810 $6,417 $6,793 $7,113 31 Field Services
  • 32. Field Services OPERATING STATISTICS December 31 2004 2003 2002 2001 Natural gas gathered and processed/transported, TBtu/d a ................................................ 7.3 7.4 7.9 8.2 NGL production, MBbl/d b ............................................................................................ 363 353 379 390 Average natural gas price per MMBtu c .......................................................................... $6.14 $5.39 $3.22 $4.27 Average NGL price per gallon d ...................................................................................... $0.68 $0.53 $0.38 $0.45 a Trillion British thermal units per day b Thousand barrels per day c Million British thermal units d Does not reflect results of commodity hedges 32 Field Services
  • 33. DUKE ENERGY NORTH AMERICA McMahon 2004 AT A GLANCE EBIT $(535) million Calgary PLANT PRODUCTION 21,884 GWh NET PROPORTIONAL CAPACITY Fort Frances Grays Harbor Bayside IN OPERATION 9,890 MW Maine Independence Bridgeport PRINCIPAL OFFICERS Oakland Lee Washington Fayette Vermillion Moss Landing ROBERT B. EVANS Hanging Rock Morro Bay President and Chief Executive Officer, Duke Energy Americas St. Francis Griffith CURTIS H. DAVIS South Bay Arlington Valley Group Vice President, Energy Generation Luna C. GREGORY HARPER Group Vice President, Energy Marketing and Management Houston Head Office Major Offices LON C. MITCHELL, JR. Operating Facilities Group Vice President and Chief Financial Officer Construction Deferred 33 Duke Energy North America
  • 34. Duke Energy North America SEGMENT EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS Years Ended December 31 2004 (In millions) 2003 2002 2001 OPERATING REVENUES $2,294 Non-regulated electric, natural gas, natural gas liquids, and other ...................................... $ 4,215 $1,552 $2,663 67 Regulated electric ........................................................................................................ 106 — 351 2,361 Total operating revenues ................................................................................................ 4,321 1,552 3,014 OPERATING EXPENSES 1,398 Natural gas and petroleum products purchased................................................................ 3,023 — 1 419 Operation, maintenance and other .................................................................................. 621 435 918 665 Fuel used in electric generation and purchased power ...................................................... 677 634 722 173 Depreciation and amortization ........................................................................................ 251 190 103 34 Property and other taxes ................................................................................................ 38 41 24 2,903a 1 Impairment and other related charges ............................................................................ 207 — Impairments of goodwill ................................................................................................ — 254 — — 2,690 Total operating expenses ................................................................................................ 7,767 1,507 1,768 (LOSSES) GAINS ON SALES OF OTHER ASSETS, NET .................................................... (248) (208) — 229 OPERATING (LOSS) INCOME ........................................................................................ (577) (3,654) 45 1,475 OTHER INCOME AND EXPENSES 5 Equity in earnings of unconsolidated affiliates .................................................................. 20 44 54 Gains on sales and impairments of equity investments...................................................... — 178 — — 7 Other income and expenses, net .................................................................................... 8 37 2 12 Total other income and expenses .................................................................................... 206 81 56 MINORITY INTEREST (BENEFIT) EXPENSE b ................................................................ (30) (107) (43) 44 REPORTABLE SEGMENT EBIT FROM CONTINUING OPERATIONS .................................. $ (535) $(3,341) $ 169 $1,487 a Includes impairments related to DENA’s plants and redesignation of power contracts to mark-to-market. b Includes minority interest (benefit) expense related to EBIT and excludes minority interest benefit related to interest and taxes. 34 Duke Energy North America
  • 35. Duke Energy North America SEGMENT BALANCE SHEETS - ASSETS December 31 2004 (In millions) 2003 2002 2001 CURRENT ASSETS $ 57 Cash and cash equivalents ............................................................................................ $ 58 $ 51 $ 75 1 Short-term investments.................................................................................................. 1 — — 446 Receivables, net .......................................................................................................... 759 1,390 2,818 98 Inventory .................................................................................................................... 171 220 203 18 — Assets held for sale ...................................................................................................... — — 868 Unrealized gains on mark-to-market and hedging transactions .......................................... 1,378 1,454 1,770 338 Other .......................................................................................................................... 305 737 119 1,826 Total current assets ...................................................................................................... 2,672 3,852 4,985 INVESTMENTS AND OTHER ASSETS 152 Investments in unconsolidated affiliates .......................................................................... 178 339 315 4,275 Investments and advances in (from) subsidiaries .............................................................. (119) 2,038 937 — Goodwill ...................................................................................................................... — 100 91 52 Notes receivable .......................................................................................................... 1 49 44 1,294 Unrealized gains on mark-to-market and hedging transactions .......................................... 1,735 2,270 2,579 47 Assets held for sale ...................................................................................................... 164 — — 45 Other .......................................................................................................................... 99 76 (362) 5,865 Total investments and other assets.................................................................................. 2,058 4,872 3,604 PROPERTY, PLANT AND EQUIPMENT 3,917 Cost ............................................................................................................................ 4,771 7,548 5,512 548 Less accumulated depreciation and amortization .............................................................. 385 430 245 3,369 Net property, plant and equipment.................................................................................. 4,386 7,118 5,267 REGULATORY ASSETS AND DEFERRED DEBITS............................................................ 4 5 6 2 TOTAL ASSETS ............................................................................................................ 11,064 9,121 15,848 13,858 (4,327) Intercompany balances .................................................................................................. 63 (2,361) 249 REPORTABLE SEGMENT ASSETS ................................................................................ $ 6,737 $9,184 $13,487 $14,107 35 Duke Energy North America
  • 36. Duke Energy North America SEGMENT BALANCE SHEETS - LIABILITIES AND EQUITY December 31 2004 (In millions) 2003 2002 2001 CURRENT LIABILITIES $ 546 Accounts payable.......................................................................................................... $ 1,032 $ 1,960 $ 2,819 Notes payable and commercial paper.............................................................................. — 35 35 — (475) Taxes (prepaid) accrued ................................................................................................ (411) 416 585 14 Interest accrued ............................................................................................................ 455 348 211 5 — Liabilities associated with assets held for sale .................................................................. — — 121 Current maturities of long-term debt................................................................................ 17 17 15 542 Unrealized losses on mark-to-market and hedging transactions .......................................... 976 988 1,114 332 Other .......................................................................................................................... 366 426 1,025 1,085 Total current liabilities .................................................................................................. 2,470 4,190 5,769 LONG-TERM DEBT ...................................................................................................... 3,527 6,589 6,796 2,930 DEFERRED CREDITS AND OTHER LIABILITIES 549 Deferred income taxes .................................................................................................. (575) 646 330 886 Unrealized losses on mark-to-market and hedging transactions .......................................... 1,502 1,301 1,744 14 — Liabilities associated with assets held for sale .................................................................. — — 1 Asset retirement obligations .......................................................................................... 1 — — 41 Other .......................................................................................................................... 95 100 125 1,491 Total deferred credits and other liabilities ........................................................................ 1,023 2,047 2,199 MINORITY INTERESTS IN FINANCING SUBSIDIARY ...................................................... — — — 1,025 MINORITY INTERESTS ................................................................................................ 94 64 246 (18) EQUITY ...................................................................................................................... 4,867 (1,025) 2,569 1,953 TOTAL LIABILITIES AND EQUITY .................................................................................. 11,064 9,121 15,848 13,858 (4,327) Intercompany balances .................................................................................................. 63 (2,361) 249 REPORTABLE SEGMENT LIABILITIES AND EQUITY........................................................ $ 6,737 $ 9,184 $13,487 $14,107 36 Duke Energy North America
  • 37. Duke Energy North America OPERATING STATISTICS December 31 2004 2003 2002 2001 Actual plant production, gigawatt-hours a, b .................................................................... 21,884 24,046 24,962 20,516 9,890 Net proportional megawatt capacity in operation .............................................................. 15,820 14,157 6,799 a Includes plant production from plants accounted for under the equity method. b Excludes discontinued operations. 37 Duke Energy North America
  • 38. INTERNATIONAL ENERGY 2004 AT A GLANCE EBIT $222 million SALES 17,776 GWh NET PROPORTIONAL CAPACITY IN OPERATION 4,139 MW Houston National Methanol Co. Mexico City Guatemala PRINCIPAL OFFICERS 328 MW Guatemala City San Salvador ROBERT B. EVANS Acajutla President and Chief Executive Officer, Duke Energy Americas El Salvador Corani, Bolivia 324 MW 126 MW RICHARD K. McGEE Lima Electroquil President, Duke Energy International Ecuador 180 MW Sao Paulo MICKEY J. PETERS Egenor Paranapanema Group Vice President, Regional Operations Peru Brazil Buenos 2,307 MW 540 MW Aires LON C. MITCHELL, JR. Aguaytia Group Vice President and Chief Financial Officer Peru Hidroelectrica 160 MW Cerros Colorados JOHN P ENLOE . Argentina Offices 576 MW Vice President, Commercial Operations and Development Operating Plants HECTOR GUTIERREZ Vice President, Regional Operations JOSEPH NAPOLI Vice President, Regional Operations A. LAINE POWELL Vice President, Regional Operations 38 International Energy
  • 39. International Energy SEGMENT EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS Years Ended December 31 2004 (In millions) 2003 2002 2001 TOTAL NON-REGULATED ELECTRIC, NATURAL GAS, NATURAL GAS LIQUIDS AND OTHER REVENUES........................................................ $619 $597 $743 $684 OPERATING EXPENSES 4 Natural gas and petroleum products purchased................................................................ 52 83 66 164 Operation, maintenance and other .................................................................................. 107 159 180 228 Fuel used in electric generation and purchased power ...................................................... 205 338 131 58 Depreciation and amortization ........................................................................................ 57 54 62 8 Property and other taxes ................................................................................................ 5 7 19 — Impairment and other related charges ............................................................................ — 75 — 462 Total operating expenses ................................................................................................ 426 716 458 (LOSSES) GAINS ON SALES OF OTHER ASSETS, NET .................................................... (3) — — 9 OPERATING INCOME .................................................................................................. 154 171 27 235 OTHER INCOME AND EXPENSES 51 Equity in earnings of unconsolidated affiliates .................................................................. 27 63 35 2 — — — Gains on sales and impairments of equity investments...................................................... 25 Other income and expenses, net .................................................................................... 30 22 (11) 78 Total other income and expenses .................................................................................... 57 85 24 MINORITY INTEREST EXPENSE a ................................................................................ 10 13 10 23 REPORTABLE SEGMENT EBIT FROM CONTINUING OPERATIONS .................................. $222 $215 $102 $236 a Includes minority interest expense related to EBIT and excludes minority interest expense related to interest and taxes. 39 International Energy
  • 40. International Energy SEGMENT BALANCE SHEETS - ASSETS December 31 2004 (In millions) 2003 2002 2001 CURRENT ASSETS $ 301 Cash and cash equivalents ............................................................................................ $ 67 $ 91 $ 203 603 Receivables, net .......................................................................................................... 344 980 395 34 Inventory .................................................................................................................... 28 42 33 22 Assets held for sale ...................................................................................................... 346 — — Unrealized (losses) gains on mark-to-market and hedging transactions .............................. — (2) 396 270 18 Other .......................................................................................................................... 21 67 50 978 Total current assets ...................................................................................................... 804 1,576 951 INVESTMENTS AND OTHER ASSETS 167 Investments in unconsolidated affiliates .......................................................................... 147 122 165 (79) Investments and advances from subsidiaries .................................................................... (258) (375) (334) 245 Goodwill ...................................................................................................................... 238 246 427 68 Notes receivable .......................................................................................................... 128 104 161 — Unrealized gains on mark-to-market and hedging transactions .......................................... — 111 205 Assets held for sale ...................................................................................................... — 1,216 — — 198 Other .......................................................................................................................... 261 924 286 599 Total investments and other assets.................................................................................. 1,732 1,132 910 PROPERTY, PLANT AND EQUIPMENT 2,189 Cost ............................................................................................................................ 2,016 3,014 3,148 371 Less accumulated depreciation and amortization .............................................................. 264 299 230 1,818 Net property, plant and equipment.................................................................................. 1,752 2,715 2,918 TOTAL REGULATORY ASSETS AND DEFERRED DEBITS ................................................ — — 6 3 TOTAL ASSETS ............................................................................................................ 3,395 4,288 5,429 4,782 (66) Intercompany balances .................................................................................................. 262 374 333 REPORTABLE SEGMENT ASSETS ................................................................................ $3,329 $4,550 $5,803 $5,115 40 International Energy
  • 41. International Energy SEGMENT BALANCE SHEETS - LIABILITIES AND EQUITY December 31 2004 (In millions) 2003 2002 2001 CURRENT LIABILITIES $ 35 Accounts payable.......................................................................................................... $ 25 $ 582 $ 292 — Notes payable and commercial paper.............................................................................. — 182 299 212 Taxes accrued (prepaid) ................................................................................................ 58 (60) 15 1 Interest accrued ............................................................................................................ 3 10 13 25 Liabilities associated with assets held for sale .................................................................. 651 — — 61 Current maturities of long-term debt................................................................................ 95 116 50 Unrealized losses on mark-to-market and hedging transactions .......................................... — 2 413 251 53 Other .......................................................................................................................... 60 140 129 387 Total current liabilities .................................................................................................. 894 1,383 1,049 LONG-TERM DEBT ...................................................................................................... 513 476 1,351 914 DEFERRED CREDITS AND OTHER LIABILITIES 96 Deferred income taxes .................................................................................................. 123 291 157 — Unrealized losses on mark-to-market and hedging transactions .......................................... — 92 181 Liabilities associated with assets held for sale .................................................................. — 737 — — 56 Other .......................................................................................................................... 68 469 132 152 Total deferred credits and other liabilities ........................................................................ 928 852 470 MINORITY INTERESTS ................................................................................................ 132 124 147 181 EQUITY ...................................................................................................................... 2,211 1,866 1,696 2,168 TOTAL LIABILITIES AND EQUITY .................................................................................. 3,395 4,288 5,429 4,782 (66) Intercompany balances .................................................................................................. 262 374 333 REPORTABLE SEGMENT LIABILITIES AND EQUITY........................................................ $3,329 $4,550 $5,803 $5,115 41 International Energy
  • 42. International Energy OPERATING STATISTICS December 31 2004 2003 2002 2001 17,776 Sales, GWh .................................................................................................................. 16,374 18,350 15,749 Net proportional megawatt capacity in operationa ............................................................ 4,139 4,121 3,917 3,968 a Excludes discontinued operations. 42 International Energy
  • 43. CRESCENT RESOURCES 2004 AT A GLANCE Lake James EBIT $240 million Nashville Charlotte RESIDENTIAL LOTS SOLD 2,473 Lake Keowee COMMERCIAL SQUARE FOOTAGE SOLD 2.1 million Columbia MULTI-FAMILY UNITS SOLD 273 Atlanta SURPLUS (LEGACY) LAND SOLD 9,087 acres Hilton Head Jacksonville OPERATING MANAGEMENT ARTHUR W. FIELDS Orlando President and Chief Executive Officer, Crescent Resources FRED A. BYERS Tampa Senior Vice President, Commercial Development JAMES M. SHORT, JR. Senior Vice President, Land Management H. THOMAS WEBB, III Senior Vice President, Residential Development JAMES C. SMITH Vice President, Multi-family Development ROBERT W. MCGEE Chief Financial Officer 43 Crescent Resources
  • 44. Crescent Resources SEGMENT EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS Years Ended December 31 2004 (In millions) 2003 2002 2001 OPERATING REVENUES .............................................................................................. $437 $284 $226 $213 OPERATING EXPENSES 343 Operation, maintenance and other .................................................................................. 219 162 134 2 Depreciation and amortization ........................................................................................ 6 8 11 6 Property and other taxes ................................................................................................ 6 7 6 42 — Impairment and other related charges ............................................................................ — — 393 Total operating expenses ................................................................................................ 231 177 151 GAINS ON SALES OF INVESTMENTS IN COMMERCIAL AND MULTI-FAMILY REAL ESTATE.............................................................................. 192 84 106 106 OPERATING INCOME .................................................................................................. 236 137 155 168 OTHER INCOME AND EXPENSES 3 — Equity in earnings of unconsolidated affiliates .................................................................. — 2 — Other income and expenses, net .................................................................................... — 1 (1) 3 — Total other income and expenses .................................................................................... 1 1 MINORITY INTEREST (BENEFIT) EXPENSE a ................................................................ (1) 3 (2) 2 REPORTABLE SEGMENT EBIT FROM CONTINUING OPERATIONS .................................. $240 $134 $158 $167 a Includes minority interest (benefit) expense related to EBIT and excludes minority interest (benefit) expense related to interest and taxes. 44 Crescent
  • 45. Crescent Resources SEGMENT BALANCE SHEETS - ASSETS December 31 2004 (In millions) 2003 2002 2001 CURRENT ASSETS $ 25 Cash and cash equivalents ............................................................................................ $ 18 $ 21 $ 16 95 Receivables .................................................................................................................. 171 87 161 120 Total current assets ...................................................................................................... 189 108 177 INVESTMENTS AND OTHER ASSETS 20 Investments in unconsolidated affiliates .......................................................................... 15 17 24 772 Investments and advances in (from) subsidiaries .............................................................. 133 (49) (52) 7 Goodwill ...................................................................................................................... 7 6 — 55 Notes receivable .......................................................................................................... 102 109 140 Investments in residential, commercial and multi-family real estate (net of 1,104 accumulated depreciation of $15 in 2004, $32 in 2003 and 2002, and $20 in 2001) ...... 1,331 1,440 1,253 9 Other .......................................................................................................................... 10 5 6 1,967 Total investments and other assets.................................................................................. 1,598 1,528 1,371 TOTAL ASSETS ............................................................................................................ 2,087 1,787 1,636 1,548 (772) Intercompany balances .................................................................................................. (134) 49 53 REPORTABLE SEGMENT ASSETS ................................................................................ $1,315 $1,653 $1,685 $1,601 45 Crescent
  • 46. Crescent Resources SEGMENT BALANCE SHEETS - LIABILITIES AND EQUITY December 31 2004 (In millions) 2003 2002 2001 CURRENT LIABILITIES $ (1) Accounts payable.......................................................................................................... $ (1) $ (1) $ 58 9 Taxes accrued .............................................................................................................. 9 7 4 1 Interest accrued ............................................................................................................ 1 2 4 11 Current maturities of long-term debt................................................................................ 11 13 41 147 Other .......................................................................................................................... 109 103 20 167 Total current liabilities .................................................................................................. 129 124 127 LONG-TERM DEBT ...................................................................................................... 23 22 45 32 DEFERRED CREDITS AND OTHER LIABILITIES ............................................................ 28 45 34 33 MINORITY INTERESTS ................................................................................................ 59 30 21 19 EQUITY ...................................................................................................................... 1,810 1,561 1,412 1,337 TOTAL LIABILITIES AND EQUITY .................................................................................. 2,087 1,787 1,636 1,548 (772) Intercompany balances .................................................................................................. (134) 49 53 REPORTABLE SEGMENT LIABILITIES AND EQUITY........................................................ $1,315 $1,653 $1,685 $1,601 46 Crescent
  • 47. Crescent Resources OPERATING STATISTICS December 31 2004 2003 2002 2001 2,473 Residential lots sold ...................................................................................................... 2,060 1,221 1,075 2.1 Commercial square footage sold, in millions .................................................................... 1.7 1.2 3.1 273 Multi-family units sold .................................................................................................. 950 — — 9,087 Surplus (legacy) land sold, acres .................................................................................... 5,088 10,982 11,402 Duke Energy is an Equal Opportunity Employer. This report is published solely to inform shareholders and is not to be considered an offer, or the solicitation of an offer, to buy or sell securities. Published July 12, 2005. © 2005 Duke Energy Corporation. All Rights Reserved. 47 Crescent