1. Duke Energy Corp. (DUK) Rating: Buy Patrick Matchell Fall 2005

2. Company Overview Company is comprised of 6 divisions –Franchise Electric (34%) –Natural Gas Transmission (32%) –Duke Energy North America (DNEA) (13%) –Field Services (50 / 50 JV) (12%) –International Energy (6%) –Crescent Resources (3%) % = percent of total assets

3. Business Environment Still recovering from Enron collapse and deregulation. Consolidation to increase due to repeal of Public Utility Holding Company Act of 1935. Industry wide repair of highly leveraged balance sheets.

4. Current Events June 2005 - June 2005 - Announced merger with Cinergy Announced merger with Cinergy July 2005 - July 2005 - Energy Bill passed allowing over $14 billion in tax credits July 2005 - July 2005 - Duke power customers set record for use of electricity

5. Investment Highlights Growth rate for next quarter is at 56.5% –Industry average at 6.8% Increased dividend by 13% in June –Yield currently over 4% Over $1 billion in cash reserves Selling assets with high risk and negative returns (DENA Segment) Continuing to acquire

7. More Investment Highlights Upward revision of earnings –Revised EPS of $1.65 from $1.60 Increasing liquidity by repaying LTD Leader in low carbon technologies 5 Star S&P Rating

8. Key Price Drivers Q3 Earnings results Price of DENA asset sales Completion of Cinergy merger Further strategic acquisitions IPO of master limited partnership Impact from Hurricanes

9. Technical Analysis

10. Entry / Exit Entry price: between $27.50 – 28.50 Entry time: next 10 -15 days; before earnings Target Price (12 Month): $35 - $36 (estimated 2006 EPS $1.75 x 20 P/E Multiple) Holding Period Return: Approximately 29.5% (including dividends) (including dividends)