Duke Energy Continues Strong Performance; Posts First Quarter Earnings of 74 Cents a Share

* Ongoing earnings per share up 51 percent: 74 cents in 2001, vs.

split-adjusted 49 cents in 2000

* Revenues increase 126 percent to $16.5 billion

* Energy Services EBIT up 208 percent on domestic and international '

expansion

* Field Services EBIT up 71 percent with earnings from acquisitions

* Natural Gas Transmission EBIT up 11 percent



Apr 20, 2001, 01:00 ET from Duke Energy Corporation

    CHARLOTTE, N.C., April 17 /PRNewswire/ -- Building on its positive
 momentum from 2000, Duke Energy (NYSE:   DUK) today announced ongoing first-
 quarter 2001 earnings of 74 cents per share - a 51-percent increase over the
 49 cents per share reported in first quarter 2000.  Including one-time
 charges, basic earnings for first quarter 2001 were 61 cents per share - up
 15 percent versus the 53 cents reported in first quarter last year.  All 2000
 numbers are adjusted for a Jan. 26, 2001, 2-for-1 stock split.
     Revenues for the quarter increased 126 percent over the prior-year quarter
 to $16.5 billion, due to rapid expansion of the company's North American and
 international competitive energy businesses.  Overall earnings before interest
 and taxes (EBIT) were $1.27 billion for the quarter, a 48-percent increase
 from first quarter 2000.
     "Duke Energy is converting smart strategy to bottom-line results," said
 Richard B. Priory, chairman, president and chief executive officer of Duke
 Energy.  "We are aggressively executing our strategy -- creating energy
 solutions for customers and positive results for shareholders."
     The one-time charge for the quarter was a cumulative adjustment for a
 change in Financial Accounting Standards due to the adoption of FAS 133, which
 resulted in a 13 cent charge to first-quarter earnings, or $96 million after
 tax. Last year there was a one-time gain on the sale of LNG ships by
 International Energy ($54 million of EBIT, or 4 cents per share).
     During the quarter, Duke Energy was recognized by several national
 publications for its performance.  The company rose on the widely followed
 Fortune 500 -- ranking 17th on the list of the nation's largest companies.
 Duke Energy was also named the Most Admired Company in its industry by
 Fortune.  Duke Energy was 19th in the Business Week 50 -- a ranking of the
 best-performing companies in the Standard & Poor's 500.
     In its rankings, Fortune noted Duke Energy was in the Top 10 in five-year
 and 10-year revenue growth -- illustrating the company's consistent execution
 and performance over the past decade.
     In March, Duke Energy successfully completed its concurrent public
 offerings of 28.75 million shares of common stock and $875 million of Equity
 Units -- the largest combined equity and equity-linked transaction of all time
 by a U.S. energy company in the secondary market.  The proceeds from this
 offering will be used for the repayment of short-term debt and investment in
 the company's competitive businesses.
 
     Business Unit Results
     Due to a change in the method for allocating corporate costs at Duke
 Energy, 2000 EBIT numbers for the business units have been re-stated and are
 slightly different from those reported last year.  This change did not affect
 the overall EBIT for the company.
     Duke Energy's Energy Services businesses, which include North American
 Wholesale Energy, International Energy and the Other Energy Services business
 segments, delivered EBIT of $428 million for first quarter -- a 208-percent
 increase over ongoing earnings in first quarter 2000.
     North American Wholesale Energy, comprised of Duke Energy North America
 (DENA) and Duke Energy Merchants (DEM), continued to demonstrate the success
 of its merchant strategies by reporting quarterly EBIT of $348 million, a
 stellar 324-percent increase over first quarter 2000.
     DENA continued to expand its North American energy business during the
 quarter.  It has more than 13,600 megawatts of capacity in operation or under
 construction and plans to construct between 10 and 12 new merchant facilities
 every year through 2003.  In first quarter, DENA announced plans to build more
 than 4,100 megawatts of new power generation capacity in time for summer 2002.
 DENA expects to announce plans for another 2,000 megawatts of capacity in
 second quarter.
     During the quarter, a number of significant long-term natural gas and
 power contracts were originated with wholesale customers around assets owned
 and controlled by DENA.  These contracts allow customers to take advantage of
 DENA's risk management and physical optimization skills, while also locking in
 the value associated with DENA's assets.  Through these origination efforts,
 and DENA's short-term trading and optimization, its trading and marketing
 business contributed solid results for the quarter.
     Throughout the first quarter of this year, Duke Energy has conducted its
 business in California to supply the maximum possible electricity to meet the
 needs of the state while limiting the company's exposure to less creditworthy
 counterparties.  The company has managed the balance of questionable
 receivables to a lower level today and is confident that the $110 million
 reserve taken in fourth quarter 2000 is conservative and appropriate.  No
 additional reserve has been taken.
     The company continues to aggressively work with senior state government
 officials and other stakeholders to develop solutions to California's
 electricity crisis.  DENA announced in March that it had signed a memorandum
 of understanding with the California Department of Water Resources (CDWR) for
 long-term power sales to the state totaling about $4 billion over a
 nine-year period.  Discussions continue with CDWR to finalize the transaction.
     DEM announced it had entered a 10-year transmix processing agreement with
 Kinder Morgan Energy Partners, L.P. (KMP) at KMP facilities in Pennsylvania,
 Illinois and Virginia.  DEM will market the product after processing by KMP.
 The transaction is another example of DEM's growing marketing efforts in the
 refined products business line.
     International Energy, comprised of the Latin American, Asia Pacific and
 European regional businesses of Duke Energy International (DEI), delivered
 EBIT of $76 million for the quarter.  Absent the 2000 gain on the LNG ships,
 EBIT for International Energy rose 52 percent for the quarter.  Overall
 revenues for International Energy were up 141 percent.
     In Latin America, DEI strengthened its network of energy businesses by
 further integrating energy assets with trading and marketing activities.
 Strong performance in Brazil and Central America drove increased EBIT in Latin
 America.  In Asia Pacific, DEI continued to move forward with construction of
 the Tasmania Natural Gas Pipeline, selecting a prime contractor and pipe
 supplier.  When completed in 2002, the pipeline will connect with the Eastern
 Gas Pipeline, which began operations in 2000, further integrating DEI's
 Australian gas and power assets.
     DEI also achieved strong performance from its regional operations in
 Europe.  Since launching its European operations just one year ago, DEI has
 expanded its regional natural gas trading operations as it concentrates on
 building gas and power trading capabilities across the continent.
     "Our domestic and international businesses have succeeded in building
 energy platforms around the globe - leveraging Duke Energy's operational
 strength and the company's superior knowledge in the energy industry," Priory
 said.
    Other Energy Services, comprised of DukeSolutions, Duke Engineering &
 Services and Duke/Fluor Daniel, reported EBIT of $4 million versus $7 million
 in 2000.
     The Natural Gas Transmission segment reported first quarter EBIT of $175
 million, an 11-percent increase over the $158 million in first quarter 2000.
 Results benefited from new businesses acquired last year - the East Tennessee
 Natural Gas Company and Market Hub Partners.
     Also during the quarter, Natural Gas Transmission and a subsidiary of the
 Williams Cos. closed on the purchase of the Gulfstream Natural Gas System from
 Coastal Corp.  The gas pipeline will provide natural gas to customers in
 Florida beginning in June 2002.
     "Our Natural Gas Transmission unit is continuing to push ahead with new
 projects and ventures - delivering positive results as they build the
 infrastructure needed to meet the nation's growing demand for natural gas,"
 said Priory.
     The Field Services business segment, which represents Duke Energy's
 majority interest in Duke Energy Field Services (DEFS), reported EBIT of
 $123 million - 71 percent higher than last year's quarter. Results were
 positively affected by the combination of Duke Energy's gas gathering and
 processing businesses with Phillips Petroleum's GPM Gas Corp. and the
 acquisition of assets from Conoco.  DEFS is continuing to pursue operational
 efficiencies as a result of these combinations.  EBIT also benefited from
 higher prices for natural gas liquids.
     EBIT from Duke Energy's franchised electric business was basically flat at
 $460 million versus $465 million for first quarter 2000.  Lower industrial
 sales and increased nuclear outage costs dampened earnings.  These factors
 were partially offset by increases in residential and commercial sales and the
 addition of more than 40,000 new customers.  Total revenues for the business
 unit were $1.16 billion, up 4 percent from the prior-year quarter.
     Residential sales rose 8.5 percent versus last year's quarter and
 commercial sales increased 5.3 percent during the quarter. Industrial sales
 decreased 5.6 percent during the quarter.
     The Duke Ventures business segment, comprised of Crescent Resources,
 DukeNet Communications and Duke Capital Partners, reported EBIT of $7 million
 for first quarter 2000 versus $18 million from the same period last year.
 The decrease in EBIT is primarily due to lower property sales at Crescent
 Resources.
     Duke Energy, a diversified multinational energy company, creates value for
 customers and shareholders through an integrated network of energy assets and
 expertise.  Duke Energy manages a dynamic portfolio of natural gas and
 electric supply, delivery and trading businesses   -- generating revenues of
 more than $49 billion in 2000.  Duke Energy, headquartered in Charlotte, N.C.,
 is a Fortune 100 company traded on the New York Stock Exchange under the
 symbol DUK.  More information about the company is available on the Internet
 at: www.duke-energy.com.
 
     An earnings conference call is scheduled for 10 a.m. ET on Wednesday,
 April 18.  Richard B. Priory, Duke Energy's chairman, president and chief
 executive officer, and Robert Brace, executive vice president and chief
 financial officer, will discuss highlights.  The conference call can be
 accessed via Duke Energy's Web site at http://www.duke-energy.com or by
 dialing 800/946-0782 in the United States or 719/457-2657 outside the United
 States. The confirmation code is 443532.  Please call in 5 to 10 minutes prior
 to the scheduled start time.  A replay of the conference call will be
 available through April 30, 2001, by dialing 888/203-1112 with a confirmation
 code of 443532.  The international replay number is 719/457-0820, confirmation
 code 443532.  A replay also will be available on Duke Energy's Web site by
 accessing the "investors" tab.  Also on the site is the most recent Financial
 Bulletin to the investment community.
 
     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.  Although Duke Energy believes that its expectations are
 based on reasonable assumptions, it can give no assurance that its goals will
 be achieved.  Important factors that could cause actual results to differ
 materially from those in the forward-looking statements herein include
 regulatory developments, the timing and extent of changes in commodity prices
 for oil, gas, coal, electricity and interest rates, the extent of success in
 connecting natural gas supplies to gathering and processing systems and in
 connecting and expanding gas and electric markets, the performance of electric
 generation, pipeline and gas processing facilities, the timing and success of
 efforts to develop domestic and international power, pipeline, gathering,
 processing and other infrastructure projects and conditions of the capital
 markets and equity markets during the periods covered by the forward-looking
 statements.
 
                                    MARCH 2001
                               QUARTERLY HIGHLIGHTS
                                    (unaudited)
 
                                                        Three Months Ended
                                                              March 31,
     (In millions, except where noted)                 2001            2000 (a)
     COMMON STOCK DATA
       Earnings Per Share  (before
        cumulative effect of change in
        accounting principle)
          Basic                                        0.74              0.53
          Diluted                                      0.73              0.53
       Earnings Per Share
          Basic                                        0.61              0.53
          Diluted                                      0.60              0.53
       Dividends Per Share                            0.275             0.275
       Weighted Average Shares Outstanding
          Basic                                         745               733
          Diluted                                       752               735
 
     INCOME
       Operating Revenues                           $16,491            $7,290
       Earnings Before Interest and Taxes
        (EBIT)                                        1,269               859
       Interest Expense                                 228               185
       Minority Interests (b)                           160                31
       Income Taxes                                     327               250
       Cumulative Effect of Change in
        Accounting Principle, net of tax                 96                --
       Net Income                                       458               393
       Preferred Stock Dividends and
        Redemption Premiums                               4                 5
       Earnings Available for Common
        Stockholders                                   $454              $388
 
     CAPITALIZATION
       Common Equity and Minority Interest              46%               46%
       Preferred Stock                                   1%                1%
       Trust Preferred Securities                        5%                6%
       Total Debt                                       48%               47%
 
     SEC Fixed Charges Coverage                         4.3               4.2
     Total Debt                                     $13,090           $10,787
     Book Value Per Share                             13.11             12.59
     Actual Shares Outstanding                          771               735
     CAPITAL AND INVESTMENT EXPENDITURES
       Franchised Electric                             $177              $177
       Natural Gas Transmission                          79               428
       Field Services                                    46               128
       North American Wholesale Energy                  518               335
       International Energy                              23               447
       Other Energy Services                              5                11
       Duke Ventures                                    174                64
 
     EBIT BY BUSINESS SEGMENT (c)
       Franchised Electric                             $460              $465
       Natural Gas Transmission                         175               158
       Field Services                                   123                72
       North American Wholesale Energy                  348                82
       International Energy                              76               104
       Other Energy Services                              4                 7
       Duke Ventures                                      7                18
       Other Operations                                 (55)              (53)
     Total Segment EBIT                               1,138               853
       EBIT attributable to Minority
        Interests                                       131                 6
     Total EBIT                                      $1,269              $859
 
 
     (a) Share information has been restated to reflect the two-for-one stock
         split effective January 26, 2001.
     (b) Includes expense related to preferred securities of subsidiaries of
         $46 million and $27 million for the three months ended March 31, 2001
         and 2000, respectively.
     (c) Prior year amounts restated to conform to current year corporate
         cost allocation.
 
                                     MARCH 2001
                                QUARTERLY HIGHLIGHTS
                                    (unaudited)
 
                                                         Three Months Ended
                                                               March 31,
     (In millions, except where noted)                  2001           2000 (d)
     FRANCHISED ELECTRIC
       Operating Revenues                             $1,157            $1,115
       Operating Expenses                                748               669
       Other Income                                       51                19
       EBIT                                             $460              $465
 
       Sales, GWh                                     19,362            20,554
 
     NATURAL GAS TRANSMISSION
       Operating Revenues                               $282              $286
       Operating Expenses                                107               140
       Other Income                                       --                12
       EBIT                                             $175              $158
 
       Throughput, TBtu                                  511               505
 
     FIELD SERVICES
       Operating Revenues                             $3,398            $1,466
       Operating Expenses                              3,219             1,390
       Other Income (Expenses)                            --                (4)
       Minority Interest Expense                          56                --
       EBIT                                             $123               $72
 
       Natural Gas Gathered and
        Processed/Transported, TBtu/day                  8.2               6.0
       Natural Gas Liquids Production,
        MBbl/d                                         371.1             231.2
       Natural Gas Marketed, TBtu/day                    1.6               0.5
       Average Natural Gas Price per MMBtu             $7.09             $2.52
       Average Natural Gas Liquids Price
        per Gallon                                     $0.60             $0.50
 
     NORTH AMERICAN WHOLESALE ENERGY
       Operating Revenues                            $12,015            $4,573
       Operating Expenses                             11,589             4,494
       Other Income (Expenses)                           (10)                4
       Minority Interest Expense                          68                 1
       EBIT                                             $348               $82
 
       Natural Gas Marketed, TBtu/day                   13.6              12.0
       Electricity Marketed, GWh                      60,685            50,353
       Proportional MW Capacity Owned  (a)            10,054             6,889
       Estimated Proportional Investment
        in Project Net Assets (a) (b)                 $4,139            $1,606
 
     INTERNATIONAL ENERGY
       Operating Revenues                               $502              $208
       Operating Expenses                                428               113
       Other Income                                        9                14
       Minority Interest Expense                           7                 5
       EBIT                                              $76              $104
 
       Proportional MW Capacity Owned (a)              4,847             4,205
       Proportional Maximum Pipeline
        Capacity, MMcf/d (a)                             363               332
       Estimated Proportional Investment
        in Project Net Assets (a) (c)                 $2,908            $2,882
 
     OTHER ENERGY SERVICES
       Operating Revenues                               $118              $275
       Operating Expenses                                114               268
       EBIT                                               $4                $7
 
     DUKE VENTURES
       Operating Revenues                                $37               $34
       Operating Expenses                                 30                16
       EBIT                                               $7               $18
 
 
     (a) Amount is as of the period end and includes projects under
         construction or under contract.
     (b) Includes total proportional estimated costs to complete projects under
         construction or under contract of $526 million and $542 million
         as of March 31, 2001 and 2000, respectively.
     (c) Includes total proportional estimated costs to complete projects under
         construction or under contract of $124 million and $90 million
         as of March 31, 2001 and 2000, respectively.
     (d) Prior year amounts restated to conform to current year corporate cost
         allocation.
 
 

SOURCE Duke Energy Corporation
    CHARLOTTE, N.C., April 17 /PRNewswire/ -- Building on its positive
 momentum from 2000, Duke Energy (NYSE:   DUK) today announced ongoing first-
 quarter 2001 earnings of 74 cents per share - a 51-percent increase over the
 49 cents per share reported in first quarter 2000.  Including one-time
 charges, basic earnings for first quarter 2001 were 61 cents per share - up
 15 percent versus the 53 cents reported in first quarter last year.  All 2000
 numbers are adjusted for a Jan. 26, 2001, 2-for-1 stock split.
     Revenues for the quarter increased 126 percent over the prior-year quarter
 to $16.5 billion, due to rapid expansion of the company's North American and
 international competitive energy businesses.  Overall earnings before interest
 and taxes (EBIT) were $1.27 billion for the quarter, a 48-percent increase
 from first quarter 2000.
     "Duke Energy is converting smart strategy to bottom-line results," said
 Richard B. Priory, chairman, president and chief executive officer of Duke
 Energy.  "We are aggressively executing our strategy -- creating energy
 solutions for customers and positive results for shareholders."
     The one-time charge for the quarter was a cumulative adjustment for a
 change in Financial Accounting Standards due to the adoption of FAS 133, which
 resulted in a 13 cent charge to first-quarter earnings, or $96 million after
 tax. Last year there was a one-time gain on the sale of LNG ships by
 International Energy ($54 million of EBIT, or 4 cents per share).
     During the quarter, Duke Energy was recognized by several national
 publications for its performance.  The company rose on the widely followed
 Fortune 500 -- ranking 17th on the list of the nation's largest companies.
 Duke Energy was also named the Most Admired Company in its industry by
 Fortune.  Duke Energy was 19th in the Business Week 50 -- a ranking of the
 best-performing companies in the Standard & Poor's 500.
     In its rankings, Fortune noted Duke Energy was in the Top 10 in five-year
 and 10-year revenue growth -- illustrating the company's consistent execution
 and performance over the past decade.
     In March, Duke Energy successfully completed its concurrent public
 offerings of 28.75 million shares of common stock and $875 million of Equity
 Units -- the largest combined equity and equity-linked transaction of all time
 by a U.S. energy company in the secondary market.  The proceeds from this
 offering will be used for the repayment of short-term debt and investment in
 the company's competitive businesses.
 
     Business Unit Results
     Due to a change in the method for allocating corporate costs at Duke
 Energy, 2000 EBIT numbers for the business units have been re-stated and are
 slightly different from those reported last year.  This change did not affect
 the overall EBIT for the company.
     Duke Energy's Energy Services businesses, which include North American
 Wholesale Energy, International Energy and the Other Energy Services business
 segments, delivered EBIT of $428 million for first quarter -- a 208-percent
 increase over ongoing earnings in first quarter 2000.
     North American Wholesale Energy, comprised of Duke Energy North America
 (DENA) and Duke Energy Merchants (DEM), continued to demonstrate the success
 of its merchant strategies by reporting quarterly EBIT of $348 million, a
 stellar 324-percent increase over first quarter 2000.
     DENA continued to expand its North American energy business during the
 quarter.  It has more than 13,600 megawatts of capacity in operation or under
 construction and plans to construct between 10 and 12 new merchant facilities
 every year through 2003.  In first quarter, DENA announced plans to build more
 than 4,100 megawatts of new power generation capacity in time for summer 2002.
 DENA expects to announce plans for another 2,000 megawatts of capacity in
 second quarter.
     During the quarter, a number of significant long-term natural gas and
 power contracts were originated with wholesale customers around assets owned
 and controlled by DENA.  These contracts allow customers to take advantage of
 DENA's risk management and physical optimization skills, while also locking in
 the value associated with DENA's assets.  Through these origination efforts,
 and DENA's short-term trading and optimization, its trading and marketing
 business contributed solid results for the quarter.
     Throughout the first quarter of this year, Duke Energy has conducted its
 business in California to supply the maximum possible electricity to meet the
 needs of the state while limiting the company's exposure to less creditworthy
 counterparties.  The company has managed the balance of questionable
 receivables to a lower level today and is confident that the $110 million
 reserve taken in fourth quarter 2000 is conservative and appropriate.  No
 additional reserve has been taken.
     The company continues to aggressively work with senior state government
 officials and other stakeholders to develop solutions to California's
 electricity crisis.  DENA announced in March that it had signed a memorandum
 of understanding with the California Department of Water Resources (CDWR) for
 long-term power sales to the state totaling about $4 billion over a
 nine-year period.  Discussions continue with CDWR to finalize the transaction.
     DEM announced it had entered a 10-year transmix processing agreement with
 Kinder Morgan Energy Partners, L.P. (KMP) at KMP facilities in Pennsylvania,
 Illinois and Virginia.  DEM will market the product after processing by KMP.
 The transaction is another example of DEM's growing marketing efforts in the
 refined products business line.
     International Energy, comprised of the Latin American, Asia Pacific and
 European regional businesses of Duke Energy International (DEI), delivered
 EBIT of $76 million for the quarter.  Absent the 2000 gain on the LNG ships,
 EBIT for International Energy rose 52 percent for the quarter.  Overall
 revenues for International Energy were up 141 percent.
     In Latin America, DEI strengthened its network of energy businesses by
 further integrating energy assets with trading and marketing activities.
 Strong performance in Brazil and Central America drove increased EBIT in Latin
 America.  In Asia Pacific, DEI continued to move forward with construction of
 the Tasmania Natural Gas Pipeline, selecting a prime contractor and pipe
 supplier.  When completed in 2002, the pipeline will connect with the Eastern
 Gas Pipeline, which began operations in 2000, further integrating DEI's
 Australian gas and power assets.
     DEI also achieved strong performance from its regional operations in
 Europe.  Since launching its European operations just one year ago, DEI has
 expanded its regional natural gas trading operations as it concentrates on
 building gas and power trading capabilities across the continent.
     "Our domestic and international businesses have succeeded in building
 energy platforms around the globe - leveraging Duke Energy's operational
 strength and the company's superior knowledge in the energy industry," Priory
 said.
    Other Energy Services, comprised of DukeSolutions, Duke Engineering &
 Services and Duke/Fluor Daniel, reported EBIT of $4 million versus $7 million
 in 2000.
     The Natural Gas Transmission segment reported first quarter EBIT of $175
 million, an 11-percent increase over the $158 million in first quarter 2000.
 Results benefited from new businesses acquired last year - the East Tennessee
 Natural Gas Company and Market Hub Partners.
     Also during the quarter, Natural Gas Transmission and a subsidiary of the
 Williams Cos. closed on the purchase of the Gulfstream Natural Gas System from
 Coastal Corp.  The gas pipeline will provide natural gas to customers in
 Florida beginning in June 2002.
     "Our Natural Gas Transmission unit is continuing to push ahead with new
 projects and ventures - delivering positive results as they build the
 infrastructure needed to meet the nation's growing demand for natural gas,"
 said Priory.
     The Field Services business segment, which represents Duke Energy's
 majority interest in Duke Energy Field Services (DEFS), reported EBIT of
 $123 million - 71 percent higher than last year's quarter. Results were
 positively affected by the combination of Duke Energy's gas gathering and
 processing businesses with Phillips Petroleum's GPM Gas Corp. and the
 acquisition of assets from Conoco.  DEFS is continuing to pursue operational
 efficiencies as a result of these combinations.  EBIT also benefited from
 higher prices for natural gas liquids.
     EBIT from Duke Energy's franchised electric business was basically flat at
 $460 million versus $465 million for first quarter 2000.  Lower industrial
 sales and increased nuclear outage costs dampened earnings.  These factors
 were partially offset by increases in residential and commercial sales and the
 addition of more than 40,000 new customers.  Total revenues for the business
 unit were $1.16 billion, up 4 percent from the prior-year quarter.
     Residential sales rose 8.5 percent versus last year's quarter and
 commercial sales increased 5.3 percent during the quarter. Industrial sales
 decreased 5.6 percent during the quarter.
     The Duke Ventures business segment, comprised of Crescent Resources,
 DukeNet Communications and Duke Capital Partners, reported EBIT of $7 million
 for first quarter 2000 versus $18 million from the same period last year.
 The decrease in EBIT is primarily due to lower property sales at Crescent
 Resources.
     Duke Energy, a diversified multinational energy company, creates value for
 customers and shareholders through an integrated network of energy assets and
 expertise.  Duke Energy manages a dynamic portfolio of natural gas and
 electric supply, delivery and trading businesses   -- generating revenues of
 more than $49 billion in 2000.  Duke Energy, headquartered in Charlotte, N.C.,
 is a Fortune 100 company traded on the New York Stock Exchange under the
 symbol DUK.  More information about the company is available on the Internet
 at: www.duke-energy.com.
 
     An earnings conference call is scheduled for 10 a.m. ET on Wednesday,
 April 18.  Richard B. Priory, Duke Energy's chairman, president and chief
 executive officer, and Robert Brace, executive vice president and chief
 financial officer, will discuss highlights.  The conference call can be
 accessed via Duke Energy's Web site at http://www.duke-energy.com or by
 dialing 800/946-0782 in the United States or 719/457-2657 outside the United
 States. The confirmation code is 443532.  Please call in 5 to 10 minutes prior
 to the scheduled start time.  A replay of the conference call will be
 available through April 30, 2001, by dialing 888/203-1112 with a confirmation
 code of 443532.  The international replay number is 719/457-0820, confirmation
 code 443532.  A replay also will be available on Duke Energy's Web site by
 accessing the "investors" tab.  Also on the site is the most recent Financial
 Bulletin to the investment community.
 
     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.  Although Duke Energy believes that its expectations are
 based on reasonable assumptions, it can give no assurance that its goals will
 be achieved.  Important factors that could cause actual results to differ
 materially from those in the forward-looking statements herein include
 regulatory developments, the timing and extent of changes in commodity prices
 for oil, gas, coal, electricity and interest rates, the extent of success in
 connecting natural gas supplies to gathering and processing systems and in
 connecting and expanding gas and electric markets, the performance of electric
 generation, pipeline and gas processing facilities, the timing and success of
 efforts to develop domestic and international power, pipeline, gathering,
 processing and other infrastructure projects and conditions of the capital
 markets and equity markets during the periods covered by the forward-looking
 statements.
 
                                    MARCH 2001
                               QUARTERLY HIGHLIGHTS
                                    (unaudited)
 
                                                        Three Months Ended
                                                              March 31,
     (In millions, except where noted)                 2001            2000 (a)
     COMMON STOCK DATA
       Earnings Per Share  (before
        cumulative effect of change in
        accounting principle)
          Basic                                        0.74              0.53
          Diluted                                      0.73              0.53
       Earnings Per Share
          Basic                                        0.61              0.53
          Diluted                                      0.60              0.53
       Dividends Per Share                            0.275             0.275
       Weighted Average Shares Outstanding
          Basic                                         745               733
          Diluted                                       752               735
 
     INCOME
       Operating Revenues                           $16,491            $7,290
       Earnings Before Interest and Taxes
        (EBIT)                                        1,269               859
       Interest Expense                                 228               185
       Minority Interests (b)                           160                31
       Income Taxes                                     327               250
       Cumulative Effect of Change in
        Accounting Principle, net of tax                 96                --
       Net Income                                       458               393
       Preferred Stock Dividends and
        Redemption Premiums                               4                 5
       Earnings Available for Common
        Stockholders                                   $454              $388
 
     CAPITALIZATION
       Common Equity and Minority Interest              46%               46%
       Preferred Stock                                   1%                1%
       Trust Preferred Securities                        5%                6%
       Total Debt                                       48%               47%
 
     SEC Fixed Charges Coverage                         4.3               4.2
     Total Debt                                     $13,090           $10,787
     Book Value Per Share                             13.11             12.59
     Actual Shares Outstanding                          771               735
     CAPITAL AND INVESTMENT EXPENDITURES
       Franchised Electric                             $177              $177
       Natural Gas Transmission                          79               428
       Field Services                                    46               128
       North American Wholesale Energy                  518               335
       International Energy                              23               447
       Other Energy Services                              5                11
       Duke Ventures                                    174                64
 
     EBIT BY BUSINESS SEGMENT (c)
       Franchised Electric                             $460              $465
       Natural Gas Transmission                         175               158
       Field Services                                   123                72
       North American Wholesale Energy                  348                82
       International Energy                              76               104
       Other Energy Services                              4                 7
       Duke Ventures                                      7                18
       Other Operations                                 (55)              (53)
     Total Segment EBIT                               1,138               853
       EBIT attributable to Minority
        Interests                                       131                 6
     Total EBIT                                      $1,269              $859
 
 
     (a) Share information has been restated to reflect the two-for-one stock
         split effective January 26, 2001.
     (b) Includes expense related to preferred securities of subsidiaries of
         $46 million and $27 million for the three months ended March 31, 2001
         and 2000, respectively.
     (c) Prior year amounts restated to conform to current year corporate
         cost allocation.
 
                                     MARCH 2001
                                QUARTERLY HIGHLIGHTS
                                    (unaudited)
 
                                                         Three Months Ended
                                                               March 31,
     (In millions, except where noted)                  2001           2000 (d)
     FRANCHISED ELECTRIC
       Operating Revenues                             $1,157            $1,115
       Operating Expenses                                748               669
       Other Income                                       51                19
       EBIT                                             $460              $465
 
       Sales, GWh                                     19,362            20,554
 
     NATURAL GAS TRANSMISSION
       Operating Revenues                               $282              $286
       Operating Expenses                                107               140
       Other Income                                       --                12
       EBIT                                             $175              $158
 
       Throughput, TBtu                                  511               505
 
     FIELD SERVICES
       Operating Revenues                             $3,398            $1,466
       Operating Expenses                              3,219             1,390
       Other Income (Expenses)                            --                (4)
       Minority Interest Expense                          56                --
       EBIT                                             $123               $72
 
       Natural Gas Gathered and
        Processed/Transported, TBtu/day                  8.2               6.0
       Natural Gas Liquids Production,
        MBbl/d                                         371.1             231.2
       Natural Gas Marketed, TBtu/day                    1.6               0.5
       Average Natural Gas Price per MMBtu             $7.09             $2.52
       Average Natural Gas Liquids Price
        per Gallon                                     $0.60             $0.50
 
     NORTH AMERICAN WHOLESALE ENERGY
       Operating Revenues                            $12,015            $4,573
       Operating Expenses                             11,589             4,494
       Other Income (Expenses)                           (10)                4
       Minority Interest Expense                          68                 1
       EBIT                                             $348               $82
 
       Natural Gas Marketed, TBtu/day                   13.6              12.0
       Electricity Marketed, GWh                      60,685            50,353
       Proportional MW Capacity Owned  (a)            10,054             6,889
       Estimated Proportional Investment
        in Project Net Assets (a) (b)                 $4,139            $1,606
 
     INTERNATIONAL ENERGY
       Operating Revenues                               $502              $208
       Operating Expenses                                428               113
       Other Income                                        9                14
       Minority Interest Expense                           7                 5
       EBIT                                              $76              $104
 
       Proportional MW Capacity Owned (a)              4,847             4,205
       Proportional Maximum Pipeline
        Capacity, MMcf/d (a)                             363               332
       Estimated Proportional Investment
        in Project Net Assets (a) (c)                 $2,908            $2,882
 
     OTHER ENERGY SERVICES
       Operating Revenues                               $118              $275
       Operating Expenses                                114               268
       EBIT                                               $4                $7
 
     DUKE VENTURES
       Operating Revenues                                $37               $34
       Operating Expenses                                 30                16
       EBIT                                               $7               $18
 
 
     (a) Amount is as of the period end and includes projects under
         construction or under contract.
     (b) Includes total proportional estimated costs to complete projects under
         construction or under contract of $526 million and $542 million
         as of March 31, 2001 and 2000, respectively.
     (c) Includes total proportional estimated costs to complete projects under
         construction or under contract of $124 million and $90 million
         as of March 31, 2001 and 2000, respectively.
     (d) Prior year amounts restated to conform to current year corporate cost
         allocation.
 
 SOURCE  Duke Energy Corporation