8-KRegulation FD

Duke Energy CORP 8-K Report, Regulation FD Disclosure (Jun 1, 2010)

Filed June 1, 2010For Securities:DUKDUKBDUK-PA

Summary

Duke Energy Corporation (DUK) filed an 8-K on June 1, 2010, primarily to disclose information regarding upcoming meetings with analysts and investors. The key takeaway for investors is that management will reaffirm the company's previously issued 2010 earnings per share (EPS) guidance range of $1.25 to $1.30 on an adjusted diluted basis. This reaffirms the company's financial outlook for the year as presented to the market. The filing also provides a detailed explanation of the non-GAAP financial measure used for this EPS guidance – adjusted diluted EPS. It clarifies that this measure excludes "special items" and "mark-to-market impacts of economic hedges" in the Commercial Power segment. Management believes these exclusions provide a better reflection of recurring operational performance, though it acknowledges that special items can recur and reconciliations to GAAP measures are not available for future periods due to their unpredictable nature.

Key Highlights

  • 1Reaffirmation of 2010 adjusted diluted EPS guidance range of $1.25 to $1.30.
  • 2Management to meet with analysts and investors during the weeks of May 31 and June 7, 2010.
  • 3Disclosure of upcoming investor and analyst meetings is the primary purpose of the 8-K.
  • 4Explanation of 'adjusted diluted EPS' as a non-GAAP measure.
  • 5Exclusion of 'special items' from adjusted EPS, which management views as non-recurring but acknowledges potential for recurrence.
  • 6Exclusion of 'mark-to-market impacts of economic hedges' in the Commercial Power segment for adjusted EPS.
  • 7Rationale provided for excluding mark-to-market impacts to better match hedging costs with underlying asset performance.

Frequently Asked Questions

The primary purpose of this 8-K filing is to inform investors and analysts that Duke Energy management will be meeting with them in the weeks of May 31 and June 7, 2010, and will reaffirm the company's 2010 earnings per share (EPS) guidance.

Duke Energy is reaffirming its 2010 adjusted diluted EPS guidance range of $1.25 to $1.30.

Adjusted diluted EPS is a non-GAAP financial measure used by Duke Energy. It represents diluted EPS from continuing operations, adjusted to exclude the per-share impact of 'special items' (which management believes are non-recurring) and the 'mark-to-market impacts of economic hedges' within the Commercial Power segment. Management uses this to present what it believes is a clearer view of ongoing operational performance.

Duke Energy excludes these items because management believes they do not represent recurring operational performance. Special items are charges or credits that may not happen regularly, and mark-to-market adjustments relate to derivative contracts that are not eligible for hedge accounting. The company aims to provide a view of earnings that better reflects the core business operations.