Duke announced in September that it planned to divest its energy business outside the American Midwest as part of a restructuring. While BarCap will take on most of Duke's portfolio, Duke will keep derivatives associated with its power generation assets, as well as various contracts associated with gas transportation.
Payment is due by January 3 next year. The $700 million represents the difference between the portfolio and current market prices, as well as transaction costs. The underlying contracts will transfer to Barclays over the next several months, Duke said, adding that the rest of its energy assets will be divested by September next year.
Paul Anderson, Duke Energy's chairman and chief executive, said: “With Barclays acquiring the lion’s share of DENA’s book and assuming the associated risks, we’ve achieved a significant strategic objective in just two months, well ahead of our initial schedule."
The week on Risk.net, March 10-16 2018Receive this by email