News Summary
Duke Energy has announced an agreement to sell a 19.7% indirect equity interest in its Florida utility to Brookfield Asset Management for $6 billion. The deal, pending regulatory approval, will allow Duke Energy to maintain an 80.3% interest in its Florida operations. Proceeds will be directed towards enhancing its capital plan and reducing debt. Duke Energy projects continued growth in earnings per share and customer base despite a dip in electric sales. This strategic move is aimed at modernizing infrastructure and enhancing financial stability.
Florida – Duke Energy has entered into an agreement to sell a 19.7% indirect equity interest in its Florida utility to Brookfield Asset Management for $6 billion. The all-cash transaction requires regulatory approval before its formal completion.
The deal will see payments from Brookfield, an infrastructure investor with over $200 billion in assets, made in stages starting next year and continuing through 2028. Despite this major financial shift, Duke Energy will maintain an 80.3% interest in Duke Energy Florida following the sale. The company reassured stakeholders that there will be no immediate changes to its workforce, operations, or leadership within Florida.
The proceeds from this significant transaction will support several major financial strategies for Duke Energy. The company plans to allocate $2 billion to enhance its five-year capital plan, increasing the total to $87 billion. The remaining $4 billion from the sale will be directed towards reducing holding company debt, thereby strengthening its financial position.
Duke Energy’s initiatives following this deal are aimed at modernizing the electrical grid, increasing generation capacity, and improving operational resiliency in Florida, with more than $16 billion earmarked for these improvements by 2029. CEO Harry Sideris highlighted the deal as a crucial measure for reinforcing Duke Energy’s credit profile, which will facilitate broader investments across the company’s portfolio.
Additionally, Duke Energy has recently taken steps to finance its expansion by announcing the sale of its Tennessee division of Piedmont Natural Gas for $2.48 billion. This move aligns with the company’s goal of investing significantly in utility infrastructure and expansion projects.
Financial performance figures also indicate a positive outlook for Duke Energy. The company’s second-quarter earnings exceeded analysts’ forecasts, with anticipated earnings per share for the year ranging from $6.17 to $6.42. Duke Energy projects a consistent 5% to 7% annual increase in earnings per share through 2029, underlining its commitment to sustainable financial growth.
The customer base for Duke Energy has also experienced growth, with a 1.5% increase in average customer count reported in recent quarterly results. However, electric sales dipped by 1.3%, a trend offset by rising prices. Following the announcement of the Brookfield Investment, Duke Energy’s stock rose more than 1% to approximately $116, marking a record level and a significant 51% increase over the past five years.
Duke Energy Florida, which serves 2 million customers across central and western Florida, is recognized as a vertically integrated utility company. The company operates the largest transmission and distribution system in the U.S., encompassing around 320,000 miles of power lines. The ambit of the Brookfield investment also reflects the strategic interest in essential infrastructure assets that foster economic growth and provide stable cash flows, even through fluctuating market conditions.
As the deal progresses, regulatory approvals are required, which will include reviews by the Federal Energy Regulatory Commission and the Committee on Foreign Investment in the United States. These processes will ensure that the transaction meets all required standards before completion, paving the way for Duke Energy’s continued expansion in Florida.
Deeper Dive: News & Info About This Topic
- Duke Energy News Release
- Wikipedia: Duke Energy
- PR Newswire
- Google Search: Duke Energy Florida
- Business North Carolina
- Google Scholar: Duke Energy Florida
- Florida Politics
- Encyclopedia Britannica: Duke Energy
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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.
