Presentation on theme: "1 10/11/2014 3:12:16 AM Forward Looking Statement Note: The cash flow information set forth below is based on various assumptions and is subject to the."— Presentation transcript:
1 10/11/2014 3:12:16 AM Forward Looking Statement Note: The cash flow information set forth below is based on various assumptions and is subject to the inherent uncertainties in predicting future results and conditions. These assumptions include that TECO Coal will successfully complete the contemplated second sale of its synthetic fuel facilities, (which will require reaching a definitive agreement and satisfying all closing conditions); TECO Coal will successfully operate its synthetic fuel production facilities in a manner qualifying for Section 29 federal income tax credits (which could be impacted by changes in law, regulation or administration); and Tampa Electric will successfully recover all its fuel transportation costs. The company’s cash flow forecast assumes that the remarketing of the Trust Preferred debt securities issued by TECO Capital Trust II is neutral to cash flow. If any of these assumptions are not realized, the company’s expected cash flow would be reduced. Other factors that could cause actual results to differ materially from those projected below include the following: general economic conditions, particularly those in Tampa Electric’s service area affecting energy sales; weather variations affecting energy sales and operating costs; commodity price changes affecting the competitive positions of Tampa Electric and Peoples Gas System, as will as margins at TECO Wholesale Generation and TECO Coal; energy prices and other factors affecting TECO Wholesale Generation’s investments in merchant power plants; regulatory actions affecting Tampa Electric, Peoples Gas System or TECO Wholesale Generation; changes in and compliance with environmental regulations that may impose additional costs or curtail some activities; TECO Wholesale Generation’s ability to successfully operate its projects and complete the contemplated transfer of the Union and Gila River facilities; the ability of TECO Energy’s subsidiaries to operate equipment without undue accidents, breakdowns or failures; and interest rates, credit ratings and other factors that could impact TECO Energy’s ability to obtain access to sufficient capital on satisfactory terms. Some of these factors and others are discussed more fully under “Investment Considerations” in the company’s Annual Report on Form 10-K for the period ended December 31, 2003.
2 10/11/2014 3:12:16 AM Cash flow from operating activities$329$250$1,110 Proceeds from asset sales246110110 Synfuel proceeds3560250 Capital expenditure / investments(675) (280)(970) Total cash flow from investing activities(394)(110)(610) Dividends(165)(140)(460) Issuance of common stock1371040 Repayment of long-term debt(526)(90)(150) Issuance of long-term debt655120120 Short-term debt, net(323) (40)40 Other financing activities(16)60230 Cash flow from financing activities(238)(80)(180) Change in cash(303)60320 Beginning cash411108108 Ending cash$108$168$428 Future Expectations Cash Flows – TECO Energy Consolidated ($ Millions) Cumulative 20032004 Est.‘04-’06 Est.
3 10/11/2014 3:12:16 AM Cash flow from operating activities$477$1,210 Capital expenditures, net(300) (760) Dividends to parent(152)(540) Return of capital to parent(158)— Repayment of long-term debt(80)(20) Issuance of long-term debt250— Short-term debt, net(10)80 Cash flow from financing activities(150)(480) Change in cash27(30) Beginning cash734 Ending cash$34$4 Future Expectations Cash Flows – Regulated Operations ($ Millions) Cumulative 2003‘04-’06 Est.
4 10/11/2014 3:12:16 AM Future Expectations Cash Flow – Parent Only ($ Millions) Cash flow from operations: Taxes / interest collected from subsidiaries$286$ 790 Tax payments(46)(30) Interest payments(213)(620) O&M / other(17)10 Cash flow from operating activities10150 Cash flow from investing activities: Non-recurring return of capital158— Dividends295800 Advances (to) / from subsidiaries(742)(100) Cash flows from investing activities(289)700 Cash flow from financing activities: Dividends to shareholders(165)(460) Common stock13740 Proceeds from long-term debt297— Change in short-term debt(313)(40) Equity contract adjustment payment(20)(20) Cash flows from financing activities(64)(480) Net (decrease) increase in cash and cash equivalents(343)370 Cash and cash equivalents at beginning of period37128 Cash and cash equivalents at end of period$ 28$ 398 Cumulative 2003‘04-’06 Est.