PNY Piedmont Natural Gas Company, Inc.

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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