Piedmont Natural Gas Reports Record Results for Fiscal Year 2008
December 29 2008 - 9:14AM
PR Newswire (US)
CHARLOTTE, N.C., Dec. 29 /PRNewswire-FirstCall/ -- Piedmont Natural
Gas (NYSE:PNY) today announced results for its fiscal year ended
October 31, 2008. For the fiscal year, the Company reported record
net income and earnings per share of $110 million and $1.49 per
diluted share, respectively. These results compare with net income
of $104.4 million, or $1.40 per diluted share, for the 2007 fiscal
year. Chairman, President and CEO Thomas E. Skains commented, "In
2008, we continued our track record of solid financial performance
and dividend growth for shareholders. Although not at the upper end
of our guidance range, our earnings per diluted share of $1.49 were
at record levels due to top line margin growth from continued
customer growth and expense reductions from ongoing cost management
programs." System throughput for fiscal year 2008 totaled 210.3
million dekatherms, compared with 206 million dekatherms for the
previous year. The increase was primarily due to colder weather and
customer growth. Weather for the year was 5% warmer than normal but
7% colder than 2007. For the year, margin increased by 5% compared
to the prior year. The increase in margin was positively influenced
by 2% growth in gross customer additions in the Company's service
area and net adjustments resulting from regulatory gas cost
accounting reviews. Operations and maintenance expenses for the
year decreased $3.7 million from the previous fiscal year primarily
as a result of lower pension expense accruals resulting from the
Company's restructuring of its defined benefit pension program.
Included in Other Income are results from the Company's interest in
SouthStar Energy Services, which contributed $18.3 million pre-tax
income in fiscal 2008 compared with $28.2 million pre-tax income
for the prior year. Results in the fourth quarter of 2008 were
impacted by a pre-tax reduction of $4.5 million as a result of a
lower of cost or market accounting adjustment to lower the value of
SouthStar's gas inventory due to declining wholesale natural gas
prices. The Company's interest in Hardy Storage, which completed
its first full year of operations in fiscal 2008, contributed $4.6
million pre-tax income compared with $3.8 million pre-tax income
for the prior year. In concluding his review of 2008 results, Mr.
Skains commented, "Our financial results reflect the value that our
customers place on natural gas as a clean, efficient and reliable
source of energy for their homes and businesses and their
confidence in Piedmont to provide them with quality customer
service." Mr. Skains added, "Piedmont ends 2008 in a financially
strong position with an excellent balance sheet and access to
credit markets. In this difficult and uncertain economic climate,
we are sustained by the financial health of the Company and
opportunities for growth that will maintain Piedmont's
attractiveness as a sound investment for the future." FISCAL 2009
EARNINGS GUIDANCE REAFFIRMED Piedmont Natural Gas reaffirms its
fiscal year 2009 earnings guidance of $1.55 to $1.65 per diluted
share. DIVIDEND At its regular quarterly meeting of the Company's
Board of Directors on December 18, 2008, Piedmont Natural Gas
announced the declaration of a quarterly dividend on Common Stock
of 26 cents per share, payable January 15, 2009, to holders of
record at the close of business on December 26, 2008. CONFERENCE
CALL In conjunction with this fourth-quarter earnings release, you
are invited to listen to the conference call that will be broadcast
live over the Internet on Monday, January 5, 2009, at 2:30 p.m.
Eastern Time, hosted by Chairman, President and Chief Executive
Officer Thomas E. Skains. Log on to the web at
http://www.piedmontng.com/ and click on Investors, then on
Presentations. The conference call will be archived on the
Presentations page of the website within the Investor Relations
section. Piedmont Natural Gas Summary of Operations (in thousands
except per share amounts and degree days) Twelve Months Ended
October 31 % Increase 2008 2007 (Decrease) Operating Revenues
$2,089,108 $1,711,292 22% Cost of Gas 1,536,135 1,187,127 29%
Margin 552,973 524,165 5% Operations and Maintenance Expenses
210,757 214,442 (2)% Depreciation 93,121 88,654 5% General Taxes
33,170 32,407 2% Utility Income Taxes 62,814 51,315 22% Operating
Income (Loss) 153,111 137,347 11% Other Income (Expense), net
16,169 24,312 (33)% Utility Interest Charges 59,273 57,272 3% Net
Income 110,007 104,387 5% Average Shares of Common Stock: Basic
73,334 74,250 (1)% Diluted 73,612 74,472 (1)% Earnings Per Share of
Common Stock: Basic $1.50 $1.41 6% Diluted $1.49 $1.40 6% System
Throughput - Dekatherms 210,251 206,004 2% Gas Customers Billed in
October 936 923 1% System Average Degree Days - Actual 3,195 2,977
7% System Average Degree Days - Normal 3,358 3,388 (1)% Percent
Normal Degree Days 95% 88% n/a Forward-Looking Statement This press
release contains forward-looking statements. These statements are
based on management's current expectations and information
currently available and are believed to be reasonable and are made
in good faith. However, the forward-looking statements are subject
to risks and uncertainties that could cause actual results to
differ materially from those projected in the statements. Factors
that may make the actual results differ from anticipated results
include, but are not limited to, regulatory issues, customer
growth, economic and capital market conditions, the cost and
availability of natural gas, competition from other energy
providers, weather conditions and other uncertainties, all of which
are difficult to predict and some of which are beyond our control.
For these reasons, you should not rely on these forward-looking
statements when making investment decisions. The words "expect,"
"believe," "project," "anticipate," "intend," "should," "could,"
"will," "assume," "can," "estimate," "forecast," "future,"
"indicate," "outlook," "plan," "predict," "seek," "target,"
"would," and variations of such words and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements are only as of the date they are made and we do not
undertake any obligation to update publicly any forward-looking
statement, either as a result of new information, future events or
otherwise except as required by applicable laws and regulations.
More information about the risks and uncertainties relating to
these forward-looking statements may be found in Piedmont's latest
Form 10-K and its other filings with the SEC, which are available
on the SEC's website at http://www.sec.gov/ . About Piedmont
Natural Gas Piedmont Natural Gas is an energy services company
primarily engaged in the distribution of natural gas to more than
one million residential, commercial and industrial utility
customers in North Carolina, South Carolina and Tennessee,
including 62,000 customers served by municipalities who are
wholesale customers. Our subsidiaries are invested in joint
venture, energy-related businesses, including unregulated retail
natural gas marketing, interstate natural gas storage and
intrastate natural gas transportation. More information about
Piedmont Natural Gas is available on the Internet at
http://www.piedmontng.com/ . DATASOURCE: Piedmont Natural Gas
Company CONTACT: Investors, John Sutphin, +1-704-731-4314, , Media,
David L. Trusty, +1-704-731-4391, , both of Piedmont Natural Gas
Web site: http://www.piedmontng.com/
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