Duke Energy Corporation (NYSE:DUK) Q3 2016 Earnings Conference Call - Final Transcript
Nov 04, 2016 • 10:00 am ET
Good day, and welcome to the Duke Energy Third Quarter Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Mike Callahan. Please go ahead, sir.
Thank you, Rachael. Good morning, everyone, and thank you for joining Duke Energy's third quarter 2016 earnings review and business update. Leading our call today is Lynn Good, Chairman, President and CEO, along with Steve Young, Executive Vice President and Chief Financial Officer.
Today's discussion will include forward-looking information and the use of non-GAAP financial measures. Slide 2 presents the Safe Harbor statement, which accompanies our presentation materials. A reconciliation of non-GAAP financial measures can be found on duke-energy.com and in today's materials. Please note the appendix for today's presentation includes supplemental information and additional disclosures.
As summarized on Slide 3, Lynn will cover the key milestones we reached in the quarter as we near the completion of our portfolio transition and provide a brief overview of our new business segments. She will also discuss our third quarter financial and operational highlights and provide an update on our growth initiatives. Steve will then provide an overview of our third quarter financial results, and lower growth trends as well as an update on regulatory activity. He will also provide insight into our expectations for 2017 before closing before closing with our key investor considerations.
With that, I'll turn the call over to Lynn.
Good morning, everyone, and thank you for joining us today. We have a strong third quarter at Duke Energy. Delivering very solid financial results and demonstrating significant progress in the execution of our business portfolio transition. We closed the Piedmont Natural Gas acquisition and we also announce the sale of our Latin American assets. This transition of our business portfolio strengthens our franchise of high quality stable and growing energy infrastructure businesses.
Starting on Slide 4, let me begin with our business portfolio transition. On October 3rd, we closed the Piedmont Natural Gas acquisition following approval by the North Carolina Utilities Commission. We're delighted to bring Piedmont's industry leading expertise into our company as we expand our natural gas platform. Supporting our transition to a lower carbon future and growing investments and important natural gas infrastructure. We've worked with and admired Piedmont for many years and our post-closing integration efforts are well underway.
In addition on October 10th, we announced agreements with the China Three Gorges Corporation and I Squared Capital to sell our Latin American generation assets. China Three Gorges will buy our assets in Brazil for approximately $1.2 billion including the assumption of debt. We expect to complete the transaction in 2 to 4 months once we've received required approvals in Brazil and China. We're making good progress. In fact to this morning the Brazilian anti-trust agency preliminarily approved the transactions without any restrictions.
This begins a 15 day statutory objection period and if no objections are filed the approval will become final. I Squared Capital will buy our remaining assets