Duke Energy: Sales mix
After the Piedmont acquisition, contributions from gas operations nearly doubled last year, which could bode well for Duke Energy’s (DUK) longer-term earnings growth. Gas distribution offers much higher growth potential than electric operations due to the latter’s sluggish demand growth in the last few years.
Duke Energy completed its Piedmont acquisition in October last year, so notably, the contribution from its gas operations this year might substantially increase.
Also, Duke Energy’s relatively lower contribution from commercial power operations facilitates earnings stability and better predictability.
Peer Southern Company (SO) also generates more than 90% of its business from traditional electric operations. Southern Company’s contribution from gas operations also increased significantly last year after its acquisition of AGL Resources.
You can learn more about Southern Company in Why Southern Company Stock Has Underperformed Its Peers.