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[5] What is the company’s future outlook?
Not even a crystal ball can guarantee a perfect answer here, but there are signs to look for: a demonstrated track record, strong competitive positioning and the market’s capacity for growth.
A year ago, Duke Energy increased its earnings growth goal to 10 to 15 percent compounded annually, from a base of $2.10 per share in 2000. We outpaced that pledge in 2001, and we expect to achieve the high end of that range in 2002.
After a turbulent year, the U.S. energy market remains resilient and healthy. Despite the exodus of key energy players in 2001, our industry – larger than any one company – remains strong. Customers take flight to quality, and companies like Duke Energy – with size, scope and a reputation for dependability – have an opportunity to forge new customer relationships.
The energy market continues to function efficiently and effectively. Buyers and sellers who trade electronically are moving to strong and stable energy trading platforms like the InterContinental Exchange, which Duke Energy helped create in 2000.
We also have confidence in the growth potential of the energy market, even in current economic conditions. Reliable, efficient, affordable energy is key to global economic growth. The U.S. Energy Information Agency predicts that world energy consumption will increase by more than 50 percent by the year 2020. Even in a stalled economy, U.S. energy demand continues to grow by 1 to 2 percent annually.
For our part, we’re building and acquiring thousands of megawatts of electric generation and thousands of miles of natural gas pipeline to serve North American and global energy markets. We’re also adding capacity to store natural gas, produce natural gas liquids and transport petroleum products.
We’ve developed 12,000 megawatts of gas-fired power generation in the U.S. since 1997, including six new facilities brought on line for last summer’s peak – an unprecedented accomplishment. We’re building 11 more facilities to begin operation this summer, and generating facilities at five more locations are under construction for 2003.
We’re also judiciously expanding our international operations – building generation capacity to meet growing demand in Latin America, extending our pipeline system in Australia, and pursuing new investments in liberalizing markets in Europe.
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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
