For the quarter that ended Dec. 31, 2012, Duke Energy reported a net income of $435 million, or $0.62 per share on a diluted basis. These results include the impact of the Charlotte-based company’s acquisition of Progress Energy, which more than doubled the net income of its United States Franchised Electric and Gas Division. As a result of the merger, Duke has been in the process of establishing a business entity that is larger and offers five utilities to more than seven million customers in six different states.
The growth in Duke’s Electric and Gas division helped to offset revenue decreases in other business lines. Earnings were also impacted by the $91 million cost of completing the Progress Energy merger. Acquisition costs reduced earnings per share by $0.06.
The fourth quarter earnings were also impacted by Duke Energy’s settlement with North Carolina regulatory agencies, including the $17 million charge to earnings for a cost recovery settlement for the Edwardsport Integrated Gasification Combined Cycle Station. As part of these settlements, Jim Rogers, the chief executive officer of Duke Energy, will retire at the end of this year.
Duke Energy’s acquisition of Progress Energy is an example of a business adapting to a changing environment and growing its business through acquisition and consolidation. Business mergers and acquisitions, including the creation of new corporate entities, can have significant impact on a company’s revenues. A corporate attorney with transactional experience as well as experience in forming corporations and other types of business entities may be an invaluable asset as a business responds to an ever-changing business landscape.
Source:Fox Business, “Duke Energy 4Q Gains Fueled by Acquisition“, Matthew Rocco, Feb. 13, 2013