Duk Duke Energy Essay

EXPANSIONS AND GROWTH: Before the 2000's Duke Energy was known for a steady cash flow, strong balance sheet, and good credit, but it was disregarded because it was not risk taking with innovative growth strategies. Over 30 years ago Duke Energy learned that it is important for a company to position itself in case of a downfall. For this reason, Duke Energy was able to survive the setbacks the company has faced. Duke Energy has noted what it has potential to grow in and what is unchanging. The water industry was an instance where the company decided to sell out because it had limited potential. Rick Priory stated Duke Energy is defined by what it does not do. Duke Energy remains focused rather than being drawn into new fads. The trend Duke Energy has followed is investing in solid companies with steady returns (McNulty, Plodding Duke).

In January 2011 statements were released that Duke Energy was considering buying Progress Energy for over 13 billion. The merger was up in the air as to if it would go through due to state regulators that had blocked several mergers in the past. The merger was past, and the deal was considered a stock-based transaction making the newly merged company worth 36 billion. Progress had a market value of 13.1 billion and Duke Energy had a market value of 23.6 prior to the merger. Moreover, Progress Energy served roughly 3 million customers, while Duke Energy served around 4 million. With the merger of the corporations Duke Energy almost doubled in size. Although the deal expanded the size of Duke Energy and gave them more power it also lowered prices for customers. This is because by combining the delivery systems and lowering fuel cost the company is able to save roughly $150 million yearly (Crooks, Duke Energy