$17.17
-0.10 (-0.57%)
Duke Energy Corp (DUK)
CAPS Rating:
An energy company with an integrated network of energy assets. The company manages a portfolio of natural gas and electric supply, delivery and trading businesses.
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Duke is one of the nation's most efficient electric power producers due to their excess nuclear capacity. Lower fuel costs equals low cost power. With the purchase of Cincinnati Power in 2006, they bought a cash producer where they can sell their excess low cost capacity at retail power rates to their "new" customers. Customers in Ohio and Indiana still get their power for the same price as before while Duke makes more money...a win-win-win.
The third "win" is for the shareholders. This is an improvement since Duke is no longer forced to sell excess capacity at wholesale rates to other power companies. Instead, they receive higher prices for their power by selling direct to their new customer base. The net result should accrue to outstanding earnings growth and share price increases.