HAPPY LABOR DAY! :: Monday, September 1, 2014

- published 8/21 (Larry) old link: http://www1.cfnc.org/applications/NC_Community_College/apply.html?application_id=1527

Click for Franklin, North Carolina Forecast

News State / Region Duke, Progress Energy merger complete

Duke now the largest electric power company in U.S.

Duke Energy Corporation Tuesday confirmed the closing of its previously announced merger with Progress Energy Inc., effective July 2, 2012.

The new company will be known as Duke Energy and will remain headquartered in Charlotte, with substantial operations in Raleigh, N.C. Duke Energy will trade on the New York Stock Exchange under the symbol DUK.

In accordance with the terms of the merger agreement, Progress Energy Inc. has become a wholly owned direct subsidiary of Duke Energy, creating the country’s largest electric utility as measured by enterprise value, market capitalization, generation assets, customers and numerous other criteria.

Duke Energy also announced the newly constituted board of directors has appointed Jim Rogers as president and chief executive officer of the combined company, effective immediately. Rogers will also maintain his responsibilities as chairman of the company’s board. Bill Johnson has resigned as president and chief executive officer of the combined company, by mutual agreement.

“The new Duke Energy will be better able to serve our 7.1 million customers’ energy needs in a safe, reliable, affordable and increasingly clean manner,” said Rogers, chairman, president and chief executive officer of Duke Energy. “As a combined organization, we will work to deliver benefits to our customers, create value for our shareholders, and enhance the career opportunities of our employees.”

Rogers continued, “Over the last several months, team members from Duke Energy and Progress Energy worked diligently to ensure we hit the ground running today – day one. I’d also like to thank the regulatory and legal teams that were instrumental in getting us over the finish line.”

“I look forward to working together with the executives from Progress and all employees of the combined company to ensure we are constantly striving to improve our levels of safety, operational excellence and customer satisfaction,” he added. “I am committed to the successful execution of our strategy and am pleased to move forward as one company.”

“Having served as CEO of Duke and its predecessor companies for more than 23 years, Jim Rogers is well-suited to lead the integration effort and to drive our combined businesses forward,” said Ann Maynard Gray, lead director of Duke Energy’s board of directors. “The board of directors looks forward to working with Jim and the rest of the executive team to enhance our position as a utility with financial strength and a greater ability to meet the needs of our customers.

“Bill Johnson has been instrumental in helping us close the merger with Progress Energy, and we wish him well in his future endeavors,” said Gray.

2012 Earnings Guidance

On a stand alone basis, Duke Energy had an adjusted diluted earnings per share (EPS) guidance range for 2012 of $1.40 to $1.45. Due to the effect of the 1-for-3 reverse stock split, which was completed in connection with this merger transaction, this guidance range is the equivalent of $4.20 to $4.35 per share. The combined company continues to target a 2012 adjusted diluted EPS guidance range of $4.20 to $4.35.

The new Duke Energy has approximately $49 billion in market capitalization, total assets of more than $100 billion, and 7.1 million electric customers in the Carolinas, Florida, Indiana, Kentucky and Ohio. The regulated utilities will comprise a higher proportion of Duke Energy’s post-merger business mix.

Duke Energy’s major commercial operations include Duke Energy International, which operates power plants in Central and South America; Duke Energy Renewables, which develops and owns wind and solar projects in the U.S.; and Duke Energy’s Midwest generation and Duke Energy Retail, which generate, market and sell electricity in the Midwest.

Under the terms of the merger agreement, each share of Progress Energy common stock has been converted into the right to receive 0.87083 shares of Duke Energy common stock (which reflects the impact of the 1-for-3 reverse stock split that occurred immediately prior to the closing of the merger).

The reverse stock split is designed to reduce the number of outstanding Duke Energy shares.

When the merger was announced on Jan. 10, 2011, the transaction value totaled $26 billion, including Progress Energy’s debt. Today, based on Duke Energy’s share price and including Progress Energy’s debt, the transaction is valued at about $32 billion.

A fact sheet detailing the new Duke Energy can be found at http://www.duke-energy.com/pdfs/de-factsheet.pdf.

About Duke Energy

Duke Energy is the largest electric power holding company in the United States with more than $100 billion in total assets. Its regulated utility operations serve approximately 7.1 million electric customers located in six states in the Southeast and Midwest. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.





Share
published: 10/18/2013
Macon County News is now on:
Find the Macon County News on Facebook! and Find the Macon County News on twitter!
Facebook   Twitter