PNY Piedmont Natural Gas Company, Inc.

CHARLOTTE, N.C., March 11 /PRNewswire-FirstCall/ -- Piedmont Natural Gas today announced results for its first fiscal quarter ended January 31, 2010. For the quarter, the Company reported net income of $113.7 million, or $1.55 per diluted share, compared to net income of $80.9 million, or $1.10 per diluted share for the same period in 2009. Results for the quarter include the gain on Piedmont's sale of one-half of its 30 percent ownership interest in SouthStar Energy Services (SouthStar) to AGL Resources (AGLR) on January 1, 2010 for $57.5 million. The after-tax gain on the transaction was $30.2 million, or $.41 per diluted share for the first quarter. Piedmont retains a 15 percent ownership and earnings interest in SouthStar from and after January 1. Margin for the quarter was $222.9 million, an increase of $2.3 million from the prior year's quarter. The increase in margin is primarily attributable to gas cost adjustments, residential customer growth, and improved volumes from industrial customers. Operations and maintenance expenses totaled $52.0 million during the first quarter, an increase of $1.3 million from the first quarter of 2009. The increase in O&M expenses is primarily due to higher labor and employee benefit expenses. Pre-tax income from Piedmont's joint venture operations was $11.8 million for the quarter, an increase of $2 million over the prior year's quarter. The increase is primarily due to stronger results from SouthStar largely resulting from its lower of cost or market storage inventory adjustment made during the first quarter of 2009 and the retail pricing plan mix chosen by SouthStar's customers. "In this time of continuing economic challenge, we are very pleased with our performance through the first quarter of the year. We continue to experience customer growth even as new construction activity remains constrained in the current market environment," commented Chairman, President and CEO, Thomas E. Skains. "We remain focused on our plan of improving our business processes, providing excellent customer service, exploring new growth opportunities in an ever-changing energy environment, and delivering long-term shareholder value," he concluded. DIVIDEND INCREASED FOR 32nd CONSECUTIVE YEAR As previously announced, the Board of Directors on February 26 approved an increase in the Company's quarterly dividend on Common Stock for the 32nd consecutive year. The new quarterly dividend of 28 cents per share reflects a 3.7 percent increase and will be payable on April 15 to holders of record at the close of business on March 25. FISCAL 2010 EARNINGS GUIDANCE REAFFIRMED Piedmont Natural Gas reaffirms its fiscal year 2010 earnings guidance of $1.90 to $2.00 per diluted share. The Company's fiscal year 2010 guidance includes the gain in the first quarter from its sale of one-half of its ownership interest in SouthStar to AGLR. CONFERENCE CALL In conjunction with the first-quarter earnings release, you are invited to listen to the conference call that will broadcast live over the Internet on Thursday, March 11 at 10 a.m. Eastern Time, hosted by Chairman, President and CEO Thomas E. Skains. Log onto the web at http://www.piedmontng.com/ and click on Investor Relations, then on Presentations. The conference call will be archived on the Presentation page of the website within the Investor Relations section. Summary of Operations (in thousands except per share amounts and degree days) ------------------------------------------------------- Three Months Ended January 31 % Increase --------------------------- ------------------------ ---------- 2010 2009 (Decrease) ------------------------ ---------- (Unaudited) Operating Revenues $673,736 $779,644 (14%) Cost of Gas 450,794 558,961 (19%) Margin 222,942 220,683 1% Operations and Maintenance Expenses 52,039 50,725 3% Depreciation 24,355 24,142 1% General Taxes 8,585 8,737 (2%) Utility Income Taxes 50,162 48,948 3% Operating Income 87,801 88,131 -% Other Income (Expense), net 37,252 5,758 547% Utility Interest Charges 11,304 13,013 (13%) Net Income 113,749 80,876 41% Average Shares of Common Stock: Basic 73,173 73,319 -% Diluted 73,545 73,646 -% Earning Per Share of Common Stock: Basic $1.55 $1.10 41% Diluted $1.55 $1.10 41% System Throughput - Dekatherms 84,722 76,531 11% Gas Customers Billed in January 971 965 1% System Ave. Degree Days - Actual 2,050 1,944 6% System Ave. Degree Days - Normal 1,858 1,856 -% Percent Normal Degree Days 110% 95% 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 future events, risks, uncertainties and other factors 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, weather conditions, rate of customer growth, the cost and availability of natural gas, competition from other energy providers, new legislation and regulations and application of existing laws and regulations, economic and capital market conditions, the cost and availability of labor and materials 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. More information about the risks and uncertainties relating to these forward-looking statements may be found in Piedmont's latest Forms 10-K and 10-Q, 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 61,000 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 CONTACT: Investors, Nick Giaimo, +1-704-731-4952,nick.giaimo@piedmontng.com, or Media, David L. Trusty, +1-704-731-4391,david.trusty@piedmontng.com Web Site: http://www.piedmontng.com/

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