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[2] How does the company make money?
Our integrated business model – combining natural gas and power assets with trading and marketing – is what differentiates Duke Energy. Our generating facilities, gas processing plants, pipelines and wires are more than just steel, concrete and machinery – they are the building blocks of value and growth. Our trading and marketing skills help us mitigate risk, navigate changing commodity cycles and economic conditions, and protect and enhance the value of our assets. By linking hard assets with trading and marketing capabilities, we increase – manyfold – our ability to deliver strong and consistent shareholder value.
Our portfolio of assets is fluid and flexible. We buy, build, manage and sell energy assets and products in much the same way investors manage their investment portfolios: We strive to buy low and sell high! Our practice of acquiring and selling positions is critical to capturing value and aligning our business with market realities, so you’ll continue to see movement within the Duke Energy portfolio.
We build our businesses, plants and pipelines in the pathways of growth, developing the systems and facilities to efficiently connect supply and demand. It’s like the secret of ice hockey great Wayne Gretsky’s success – “skating where the puck is going to be.” We build for tomorrow’s growth.
The $8 billion acquisition of Westcoast Energy is the latest milestone in that grow-forward strategy. Westcoast is a natural gas pipeline, storage and distribution company based in Vancouver, British Columbia. It’s the perfect fit for Duke Energy – ideally positioned, linking complementary assets, and advancing our long-term earnings potential.
With the addition of Westcoast’s network, Duke Energy will have unparalleled access to North America’s major natural gas supply basins and markets. Westcoast also brings an impressive network of gas gathering and processing services and gas storage capacity, as well as a talented team that will complement our own.
In financial terms, the Westcoast acquisition will be immediately accretive to earnings upon closing, and will spur future growth in our gas transmission and other businesses. We retain our strong balance sheet and financial flexibility with the acquisition, consistent with our commitment to maintain solid creditworthiness.
Operational excellence. Portfolio diversity. The overlay of energy trading and origination. Strategic acquisitions and divestitures. Financial strength. Those are our business model basics. When you put them together, you get sustainable growth and shareholder value.
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[2] |
How does the company make money? |
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[3] | How has the company performed? |
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[4] | How does the company manage its risk? |
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[5] | What is the company's future outlook? |
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[6] | What about the company’s character? |
RICHARD B. PRIORY
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Duke Energy Field Services is the number one natural gas liquids producer in North America, twice as large as our nearest competitor. |
