Duke Energy announced a definitive agreement for Brookfield to acquire a 19.7% indirect equity interest in Duke Energy Florida for a total of $6 billion in cash. The investment, made through Brookfield’s Super-Core Infrastructure strategy, will support Duke Energy’s efforts to modernize its energy infrastructure and drive growth initiatives.
This all-cash transaction is a strategic financing move that will strengthen Duke Energy’s balance sheet and fund its capital needs. $2 billion of the proceeds will be allocated to increase Duke Energy’s five-year capital plan to $87 billion, with the remaining $4 billion dedicated to reducing holding company debt.
Duke Energy Florida is a vertically integrated electric utility that serves 2 million customers. The new investment will help fund a $4 billion increase in Duke Energy Florida’s five-year capital plan, bringing total investment in the state to more than $16 billion by 2029. This capital will primarily be used for grid modernization, resiliency projects, and enhancements to generation capacity to support its growing customer base.
Brookfield will acquire its interest in phases, with the first closing expected in early 2026. Duke Energy will retain an 80.3% interest and continue to operate Duke Energy Florida, with Brookfield receiving certain rights consistent with its ownership share.
Advisors: JP Morgan Securities is serving as Duke Energy’s financial advisor. Skadden, Arps, Slate, Meagher & Flom is serving as Duke Energy’s legal advisor. RBC Capital Markets is serving as Brookfield’s financial advisor. Kirkland & Ellis is serving as Brookfield’s legal advisor.
KEY QUOTES:
“For more than a century, we’ve had the privilege of serving extraordinary Florida communities, which are now some of the most dynamic and fastest growing in the nation. We’re pleased to have Brookfield, a highly regarded infrastructure investor, as a long-term partner in Duke Energy Florida. This significant transaction at a compelling valuation best positions Duke Energy to unlock additional capital investments in Duke Energy Florida during this unprecedented growth period. It also materially strengthens Duke Energy’s overall credit profile, which in turn enables us to invest in our energy modernization plans across our entire footprint – all while helping keep prices as low as possible for our customers.”
Harry Sideris, president and chief executive officer
“We are delighted to partner with Duke Energy in a critical business and premier regulated utility like Duke Energy Florida through Brookfield’s Super-Core Infrastructure strategy. We look forward to supporting the continued growth of Duke Energy Florida’s regulated asset base and, accordingly, ensuring excellent service delivery for its customers. This transaction underscores our patient strategy of partnering with leading corporates and investing in essential infrastructure assets that underpin economic growth, and that generate stable long-term cash flows across market cycles.”
Sam Pollock, chief executive officer of Brookfield’s infrastructure group
“Duke Energy’s commitment to our customers and communities is unwavering, driving us to continuously find innovative ways to meet the moment for our customers. This exciting partnership allows us to do just that. This partnership will create value for all of our communities as we invest in generation, transmission and distribution enhancements that increase reliability, maintain affordability and support future economic development in our state.”
Melissa Seixas, Duke Energy Florida state president
