Mon, Oct. 10, 7:15 AM
- Duke Energy (NYSE:DUK) agrees to sell its Brazilian business to China Three Gorges Corp. for ~$1,2B in cash, including debt.
- DUK says it is the latest example of its strategy of exiting its international energy business and focusing on its core domestic regulated business.
- China Three Gorges is the world´s largest producer of hydroelectric power, with an installed capacity of ~100 GW, both under operation and construction.
Fri, Sep. 30, 6:12 PM
- Duke Energy (NYSE:DUK) confirms it will sell some if its ownership stake in the Atlantic Coast Pipeline to Dominion Resources (NYSE:D) on Monday, when it closes its $4.9B acquisition of Piedmont Natural Resources.
- The proposed deal cleared its final hurdle yesterday when the North Carolina Utilities Commission approved the transaction.
- DUK has owned 40% of the proposed 600-mile pipeline, but under the deal that formed the joint venture in 2014, Dominion must be the largest owner; the original ownership breakdown was D with 45%, DUK with 40%, PNY at 10% and AGL Resources, which has since been bought by Southern Co., with 5%.
- Dominion says it will follow through with a previously announced plan to purchase a 3% stake from DUK, which will then give it 48% of the project and DUK 47%.
Fri, Jan. 15, 6:58 PM
- Four consumer and environmental groups agree to stop fighting Duke Energy's (NYSE:DUK) Edwardsport coal gasification plant in Indiana and join the company's settlement reached with other parties in September.
- In addition to absorbing $87.5M in operating costs of the plant since it began operations in June 2013, DUK says it will stop burning coal within seven years at its New Albany power plant, provide energy assistance for needy customers, and spend $500K for solar projects at churches, schools and other community sites.
- If the settlement is accepted by the Indiana Utility Regulatory Commission, litigation related to the plant effectively would end.
- Separately, DUK files for approval with the North Carolina Utilities Commission of its $4.9B acquisition of Piedmont Natural Gas (NYSE:PNY).
Dec. 22, 2015, 11:25 AM
- Duke Energy (DUK +0.4%) says the FTC has granted antitrust approval for its proposed $4.9B acquisition of Piedmont Natural Gas (PNY +0.3%), clearing a key condition needed for completion of the deal.
- The deal still requires approval by PNY shareholders and the North Carolina Utilities Commission; the two companies continue to target closing by the end of 2016.
Oct. 27, 2015, 6:21 PM
- Duke Energy's (NYSE:DUK) $4.9B deal to buy Piedmont Natural Gas (NYSE:PNY) includes a $250M breakup fee DUK would pay PNY if it fails to obtain approval from regulators including the North Carolina Utilities Commission - a hefty 5.1% of the deal total, and double the fee PNY would have to pay if its board gets cold feet or finds a better deal.
- The fee could be a reflection that PNY understands the regulatory risks inherent in utility deals, says the University of Chicago's Steven Kaplan, who thinks PNY is "worried" and wants a promise from DUK that the deal will be worth the likely interim disruption.
Oct. 26, 2015, 3:31 PM
- Duke Energy (DUK -2%) is paying too much for Piedmont Natural Gas (PNY +36.7%) in "almost any reasonable scenario," Citigroup’s Praful Mehta asserts.
- DUK is paying ~$4.9B, a $1.4B premium (~40%) vs. PNY's Oct. 23 closing price and close to 4x book value, and "no synergy bridge gets you to $1.4B," Mehta says, also noting the premium is relative to a 52-week high stock price for PNY.
- Mehta considers the deal "a red flag" on management's direction: "Firstly, is there a meaningful problem in the growth profile of the underlying business (LatAm)? Secondly, would management rather destroy value to hold on to a growth target that may not be achievable rather than realign growth targets?"
Oct. 26, 2015, 7:12 AM
- The all-cash deal works out to $60 per share for Piedmont (NYSE:PNY), about a 40% premium to Friday's $42.21 close. Duke (NYSE:DUK) will also assume roughly $1.8B in PNY existing net debt, bringing the total enterprise value to $6.7B.
- The two hope to close the deal by year-end 2016.
- A conference call is set for 8:30 ET.
Aug. 22, 2014, 7:18 AM
- Certain Midwest generation assets are being purchased from Duke Energy (NYSE:DUK) for $2.8B, and others from Energy Capital Partners for $3.45B.
- In total 12.5 megawatts of coal and gas generation is being acquired, nearly doubling Dynegy's (NYSE:DYN) existing portfolio to almost 26K megawatts.
- Dynegy has synergy targets of more than $40M per year, $200M in collateral efficiencies, and nearly $500M in present value cash tax savings.
- 2015 adjusted EBITDA and free cash flow accretion per share is expected to by about 125% and 220%, respectively (assuming both deals close this year).
- Financing: Roughly $5B in unsecured debt issuance, $1.25B in equity and equity-linked securities, including $200M in stock issued to ECP, and $950M in incremental revolving credit facilities.
- Conference call at 8:30 ET
Apr. 30, 2014, 2:20 PM
- Exelon's (EXC -4.1%) $6.8B purchase of Pepco (POM +17.3%) helps it overtake Duke Energy (DUK) as the biggest U.S. power distribution company, but investors and analysts aren't enamored with the deal.
- Wells Fargo's Neil Kalton question EXC's wisdom in increasing the company's regulated exposure at a time when power markets appear to be recovering.
- EXC is effectively reducing its relative exposure to wholesale generation, whose share of profits will dip to 35%-40% as a result of taking on POM's regulated assets, and it's paying 22x 2014 estimated earnings to do so, WSJ's Liam Denning calculates.
- Oh, by the way: The deal "smells bad," FMHR trader Jon Najarian says on CNBC, pointing to unusual options activity ahead of the announcement.
Feb. 18, 2014, 8:54 AM
- Duke Energy (DUK): Net profit rose 58% to $688M as the company's regulated utilities and international operations grew strongly.
- Duke achieved lower costs through synergies from the 2012 merger with Progress Energy and recovered infrastructure expenses through higher customer rates.
- Regulated utilities adjusted income +22% to $607M; international energy +21% to $108M; commercial power adjusted loss $3M vs break-even a year earlier.
- Forecasts 2014 adjusted EPS of $4.45-4.60 vs consensus of $4.57. (PR)
- Duke said yesterday that it plans to sell its Midwest commercial generation business, including holdings in 13 power plants, due to "volatile returns." As a result Duke will take a pretax impairment charge of $1-2B on its Q1 results. (PR)
- Shares are flat.
Jul. 19, 2012, 11:56 AM
More on Bill Johnson: believes that from January-May, Duke (DUK) "explored every avenue to get out of the merger short of violating the merger agreement." Says Duke stalled on the completing the merger with Progress to run out the clock, as it was costing an expensive $220M to mitigate FERC's concerns. "We were having to drag them every step of the way," Johnson says.| Jul. 19, 2012, 11:56 AM | 2 Comments
Jul. 19, 2012, 10:56 AM
Bill Johnson rejects criticism of his leadership style, a major reason given for his ouster as Duke Energy's (DUK -0.54%) CEO after the completion of its acquisition of Progress. Johnson, who has been testifying to the North Carolina Utilities Commission, also says problems at a Florida nuclear power plant, cited as another factor, had been known about for a long time.| Jul. 19, 2012, 10:56 AM | 1 Comment
Jul. 11, 2012, 5:05 AM
Duke Energy (DUK) fired Bill Johnson after its merger with Progress Energy partly because of his autocratic leadership style, CEO Jim Rogers told a hearing of the N. Carolina Utilities Commission yesterday. There were also concerns about Progress' nuclear assets and the utility's poor performance since the deal was announced 18 months ago.| Jul. 11, 2012, 5:05 AM | 10 Comments
Jul. 10, 2012, 12:39 PM
Bernstein reiterates its "Outperform" rating on Duke Energy (DUK +0.9%) despite saying it expects "Duke to face a months-long legal and regulatory quagmire" over the utility's ouster of Bill Johnson as CEO. Bernstein expects the stock to "be materially discounted," which could therefore make it attractive. Current CEO Jim Rogers was due to appear before a N. Carolina hearing today about the coup.| Jul. 10, 2012, 12:39 PM | 2 Comments
Jul. 10, 2012, 6:19 AM
Duke Energy (DUK) CEO Jim Rogers is today due to appear before a hearing of the N. Carolina Utilities Commission about the ouster of Bill Johnson just hours after the closure of Duke's acquisition of Progress Energy. The commission, which has said it might not have authorized the deal had it known about the "management structure," has the power to rescind its approval, although this is seen as unlikely.| Jul. 10, 2012, 6:19 AM
Jul. 8, 2012, 3:48 AM
The N. Carolina Utilities Commission said late Friday that it is investigating the shock ouster of Bill Johnson as the CEO of the merged Duke-Progress Energy (DUK), saying it might not have approved the deal had it known about the new "management structure." The state's AG is asking for documents to ascertain whether consumers were misled. Former Progress directors are furious.| Jul. 8, 2012, 3:48 AM | 8 Comments