CHARLOTTE, N.C., July 19, 2021 /PRNewswire/ -- Below is Duke
Energy's (NYSE: DUK) statement in response to Elliott Management's
announcement today:
The new Elliott Management letter to the Board of Directors is
the latest attempt to push its short-term agenda at the expense of
long-term shareholder value as well as the interests of Duke
Energy's employees and the communities it serves.
Duke Energy remains open to value-creating ideas in the
company's pursuit of continuous operational improvement and
frequently engages with shareholders for their input, including a
good faith engagement with Elliott over the last 12 months.
However, Elliott has again failed to provide any concrete and
specific ideas to increase shareholder value, choosing instead to
launch public attacks supported by cherry-picked data and anonymous
sources. Duke remains focused on
delivering long-term value and growth to customers and investors in
all jurisdictions.
This announcement is similar to earlier Elliott plans that
failed to gain support. Elliott first proposed a preferential
equity scheme in which the company would issue up to $7 billion of deeply discounted equity to Elliott
and its hedge fund allies, which would materially dilute
Duke's existing shareholders. After
that was rejected by the Duke Energy Board, Elliott then publicly
advocated for an illogical, complex three-way breakup of the
company.
Elliott's "shrink-the-company" break-up proposal collapsed
immediately because it was financially unsound and ran counter to
the strategic direction of the entire industry. Over the past
several months, Duke Energy's management team has been in active
dialogue with the equity analyst community and institutional
shareholders. Our largest investors, as well as analysts, public
officials, and other stakeholders were near universal in their
rejection of the hedge fund's unsound plan.
Now, Elliott is taking aim at Duke Energy's leadership to find a
way to force a shareholder-value-destroying plan that has no
support.
Duke Energy's management team and Board are focused on executing
on its long-term strategy, which enjoys broad and deep shareholder
and stakeholder support, and continuing to deliver customer
benefits and create jobs in the communities the company serves.
Duke Energy and its Board will always advocate for the best
long-term interests of its shareholders and other stakeholders over
any narrow special or short-term interest.
Elliott's attempt to undermine Duke Energy's leadership team
ignores the diverse and experienced professional talent that drives
this company and is silent on the significant accomplishments it
has achieved.
Duke Energy is now leading the largest, most ambitious clean
energy transition in North
America, in collaboration with all stakeholders across all
of Duke's service territories. As a
result of successfully positioning the company for this transition,
coupled with disciplined top tier cost efficiency and operational
excellence, Duke Energy's Total Shareholder Return (TSR) over the
last several years has outperformed peers across the regulated
utility industry and Duke is currently
trading at a premium valuation. Duke Energy's 3-year Total
Shareholder Return of 47% exceeds that of the UTY Index (43%) and
the S&P Utility Index (40%), as of July
16, 2021.
The management team has completed a multi-year transformation of
Duke Energy's business portfolio, including divesting its
international business, reducing its commercial business exposure
and executing the highly successful acquisition of Piedmont Natural
Gas, which has generated outstanding results.
In addition, the company has recently achieved several milestone
events that provide certainty for growth, including landmark
settlements with North Carolina to
close all coal ash basins and the pending sale of a minority stake
in Duke Energy Indiana at an attractive valuation that satisfies
the company's equity needs while allowing the company to increase
its long-term adjusted EPS growth rate to 5% to 7% through
2025.
Duke's Board of Directors has
overseen the company's strong track record of delivering value to
its customers, communities, and shareholders, and is committed to
best practices in corporate governance.
During the past five years, the Board has consistently refreshed
its members and has successfully implemented key strategic
initiatives. Nine out of 13 directors were first appointed in the
last five years. The number of women represented on Duke Energy's
Board has doubled to four since 2017. The average tenure on the
Board is 4.7 years, compared to 6.8 years in the peer set disclosed
in Duke's proxy. Each current Board
member has served in senior leadership roles across multiple
industries, and seven have deep operational experience in the
utility industry.
Duke Energy will continue running the business in the best
long-term interests of all shareholders and stakeholders, and not
those of a single hedge fund focused only on the short-term and
with a decidedly mixed track record in its other interventions in
the utility sector. The management team has the full support of the
Board, and the company will continue to focus on its long-term
strategy of operational excellence, which has helped keep rates
below the national average, and the execution of its five-year,
$59 billion capital plan.
Duke Energy
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in
Charlotte, N.C., is one of
America's largest energy holding companies. Its electric utilities
serve 7.9 million customers in North
Carolina, South Carolina,
Florida, Indiana, Ohio
and Kentucky, and collectively own
51,000 megawatts of energy capacity. Its natural gas unit serves
1.6 million customers in North
Carolina, South Carolina,
Tennessee, Ohio and Kentucky. The company employs 27,500
people.
Duke Energy is executing an aggressive clean energy strategy to
create a smarter energy future for its customers and communities –
with goals of at least a 50 percent carbon reduction by 2030 and
net-zero carbon emissions by 2050. The company is a top U.S.
renewable energy provider, on track to operate or purchase 16,000
megawatts of renewable energy capacity by 2025. The company also is
investing in major electric grid upgrades and expanded battery
storage, and exploring zero-emitting power generation technologies
such as hydrogen and advanced nuclear.
Duke Energy was named to Fortune's 2021 "World's Most Admired
Companies" list and Forbes' "America's Best Employers" list. More
information is available at duke-energy.com. The Duke
Energy News Center contains news releases, fact sheets, photos
and videos. Duke Energy's illumination features stories
about people, innovations, community topics and environmental
issues. Follow Duke Energy
on Twitter, LinkedIn, Instagram and Facebook.
Non-GAAP financial information
This release references the long-term range of annual growth of
5% - 7% through 2025 off the midpoint of 2021 forecasted adjusted
EPS guidance range of $5.15. The 5% -
7% annual growth rate increased from 4% - 6%. The forecasted
adjusted EPS is a non-GAAP financial measure as it represents basic
EPS available to Duke Energy Corporation common stockholders (GAAP
reported EPS), adjusted for the per share impact of special items.
Special items represent certain charges and credits, which
management believes are not indicative of Duke Energy's ongoing
performance. Due to the forward-looking nature of this non-GAAP
financial measure for future periods, information to reconcile it
to the most directly comparable GAAP financial measure is not
available at this time, as management is unable to project all
special items for future periods, such as legal settlements, the
impact of regulatory orders or asset impairments.
Cautionary language concerning forward-looking
statements
This document includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements are based on management's beliefs and assumptions. These
forward-looking statements are identified by terms and phrases such
as "anticipate," "believe," "intend," "estimate," "expect,"
"continue," "should," "could," "may," "plan," "project," "predict,"
"will," "potential," "forecast," "target," "outlook," "guidance,"
and similar expressions. Various factors may cause actual results
to be materially different than the suggested outcomes within
forward-looking statements; accordingly, there is no assurance that
such results will be realized. These risks and uncertainties are
identified and discussed in Duke Energy's most recent Annual Report
on Form 10-K and subsequent quarterly reports on Form 10-Q filed
with the Securities and Exchange Commission ("SEC") and available
at the SEC's website at www.sec.gov. In light of these risks,
uncertainties and assumptions, the events described in the
forward-looking statements might not occur or might occur to a
different extent or at a different time than Duke Energy has
described. Duke Energy expressly disclaims an obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
Media contact: Neil Nissan
800.559.3853
Analysts contact: Jack
Sullivan
980.373.3564
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SOURCE Duke Energy