Duke Energy 2009 Annual Report Download - page 8

DUKE ENERGY CORPORATION / 2009 ANNUAL REPORT 7
COMPARISON OF 2009 TOTAL SHAREHOLDER RETURN
(12 months ended Dec. 31, 2009)
Our total shareholder return — the change in stock price plus dividends — was up 22 percent for the year. That
compares favorably with the Philadelphia Utility Index (made up of 20 peer companies, including Duke Energy),
which was up only 10 percent in 2009. Over the past three years, Duke Energy has achieved a positive
4 percent shareholder return, while the utility index dropped nearly 5 percent.
people. Even though our injury rate trended to the lowest it’s
ever been, any injuries or fatalities are unacceptable. I have
challenged all of our employees and contractors to redouble
their efforts in this area.
For the fourth year in a row, Duke Energy was named
to the Dow Jones Sustainability Index for North American
companies in the electric utility sector. Early in 2010,
Corporate Knights magazine named us one of the 100 most
sustainable companies in the world. And, in March 2010,
we were named one of the 100 Best Corporate Citizens for
the second consecutive year by Corporate Responsibility
(CR) magazine.
I invite you to review our 2009|2010 Sustainability
Report, available on www.duke-energy.com, to learn more
about our commitment to do business in ways that are good
for people, the planet and profits.
2010 OUTLOOK
In the latter half of 2009, it seemed that the economy might
be stabilizing. However, with double-digit unemployment in
several of our jurisdictions, we expect economic growth for
the next few years to be anemic. Our 2009 year-end results
and our current economic projections lead us to a 2010
earnings outlook range of $1.25 to $1.30 EPS on an adjusted
diluted basis. This range puts us on track to grow long-term
adjusted diluted EPS at a compound annual growth rate of
4 to 6 percent, from a 2009 base year.
In 2010, we will need to fund about $3.5 billion to
complete our construction programs and address the negative
cash flow impacts of the ongoing economic downturn.
Externally, we expect to issue approximately $2.3 billion in
new debt securities and raise approximately $400 million of
new equity through our DRIP and other internal stock plans.
The remainder will come from the utilization of cash we real-
ized from prefunding some of our 2010 financing needs in
2009. The equity we plan to issue will help maintain our
strong balance sheet.
We are committed to growing the dividend, but at a
slower rate than our growth in earnings. Over time, our
payout ratio will trend downward to levels more consistent
with our industry peers. Subject to board approval, we
estimate a 2 percent dividend increase in 2010.
IS THE ENERGY WE PROVIDE AFFORDABLE?
The first question we ask when we consider making a
long-term investment to achieve our mission is: Will it
provide affordable energy for our customers? Given our
long lead times for construction, we must consider both
present and future affordability.
We are investing today in more efficient coal-fired
plants and other technologies to maintain the fuel flexibility
of our generation fleet. This will help to mitigate the impact
of future price spikes for any one fuel, and smooth out
customer bills. Replacing some of our oldest coal-fired
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