News Summary
Duke Energy has reached an agreement to sell a 19.7% equity interest in its Florida utility to Brookfield Asset Management for $6 billion. The transaction aims to enhance Duke’s investment in the region and expand generation capacity amidst rising electricity demand. Duke will retain an 80.3% ownership stake and intends to utilize the proceeds to finance capital expansion and reduce debt. This move comes as Duke reported an earnings forecast reaffirming significant growth through 2029, while also maintaining stable operations within the utility services.
Florida – Duke Energy has finalized an agreement to sell a 19.7% equity interest in its electric utility serving approximately 2 million customers in Florida to Brookfield Asset Management for $6 billion. This deal is structured as a staggered cash investment commencing next year and continuing through 2028.
Duke Energy plans to utilize $2 billion of the proceeds to enhance its five-year capital plan, elevating the amount to $87 billion. The remaining $4 billion will be directed towards reducing holding company debt. Despite this sell-off, Duke will maintain an 80.3% ownership stake in Duke Energy Florida and will operate the utility with no changes to its workforce, operations, or leadership.
The primary aim of this investment is to expand generation capacity in Florida, anticipating an increase in electricity demand. This transaction will boost Duke’s total investment in Florida to over $16 billion by 2029. Investments will support grid modernization, elevate capacity, and improve resilience against outages.
This agreement significantly bolsters Duke Energy’s overall credit profile, enabling further investments throughout its operations. In the second quarter, Duke Energy’s earnings surpassed analysts’ expectations, leading the company to reaffirm its earnings per share (EPS) outlook of between $6.17 and $6.42 for the year, compared to $5.71 in the previous year. The company also anticipates achieving an annual earnings per share growth of 5% to 7% through 2029.
Duke Energy’s stock saw positive movement, rising over 1% to around $116, marking a record level with shares appreciating 51% over the past five years. In comparison, the S&P 500 Index has seen an 88% rise in the same period. Notably, more than 90% of Duke’s business income is derived from regulated utilities, with profit margins regulated by state commissions.
For the recent quarter, Duke reported a 4.7% increase in revenue, reaching $7.17 billion, and a 1.5% rise in customer numbers. However, the electric sales volume dipped by 1.3%. This transaction is pending regulatory approval and follows another arrangement where Duke agreed to sell its Tennessee division of Piedmont Natural Gas for around $2.48 billion. From the Tennessee sale, $800 million will be allocated to debt reduction, with the balance earmarked for financing expansion in generating capacity.
Duke Energy operates the largest transmission and distribution system in the United States, covering approximately 320,000 miles of power lines. The investment by Brookfield amounts to 29 times the expected 2024 earnings of the parent company, reflecting a premium over public share values. Brookfield Asset Management currently manages more than $200 billion in assets across various sectors, including utilities, transportation, data, and oil and gas.
Deeper Dive: News & Info About This Topic
- Florida Politics: Duke Energy Florida Equity Sale
- PR Newswire: Duke Energy Partners with Brookfield
- Duke Energy News: Second Quarter 2025 Financial Results
- Bloomberg: Brookfield Buys Stake in Duke Energy
- Sustainability Magazine: Inside Duke Energy’s $87bn Capital Plan
- Wikipedia: Duke Energy
- Google Search: Duke Energy Florida
- Google Scholar: Duke Energy
- Encyclopedia Britannica: Duke Energy
- Google News: Duke Energy Florida
Author: STAFF HERE PETERSBURG WRITER
ST PETERSBURG STAFF WRITER The ST PETERSBURG STAFF WRITER represents the experienced team at HEREStPetersburg.com, your go-to source for actionable local news and information in St Petersburg, Pinellas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Grand Prix of St. Petersburg, Localtopia, and SHINE Mural Festival. Our coverage extends to key organizations like the St. Petersburg Area Chamber of Commerce and St. Pete Downtown Partnership, plus leading businesses in finance, manufacturing, and healthcare that power the local economy such as Raymond James Financial, Jabil, and Bayfront Health St. Petersburg. As part of the broader HERE network, including HEREJacksonville.com, HEREOrlando.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
