In the news release, Piedmont Natural Gas Reports Second Quarter
Results, issued 08-Jun-2010 by
Piedmont Natural Gas over PR Newswire, we are advised by the
company that the second paragraph, second sentence, should read
"Results for the six months ended April 30,
2010 include the gain on Piedmont's sale of one-half of its 30 percent
ownership interest in SouthStar Energy Services..." rather than
"the six months ended April 30, 2009"
as originally issued inadvertently. The complete, corrected release
follows:
Piedmont Natural Gas Reports Second Quarter Results
CHARLOTTE, N.C., June 8 /PRNewswire-FirstCall/ -- Charlotte-based Piedmont Natural Gas (NYSE:
PNY) today announced results for its second quarter ended
April 30, 2010. For the
quarter, the Company's net income was $46.8
million and diluted earnings per share were $0.65 compared with net income of $53.5 million and diluted earnings per share of
$0.73 for the same period in 2009.
For the six months ended April 30,
2010, net income was $160.6
million and diluted earnings per share were $2.20, compared with net income of $134.4 million and diluted earnings per share of
$1.83 for the same period in 2009.
Results for the six months ended April
30, 2010 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 six
months. Piedmont retains a 15
percent ownership and earnings interest in SouthStar from and after
January 1.
Utility margin decreased by $1.3
million for the second quarter, primarily due to period to
period changes in adjustments to regulatory gas cost accounts,
partially offset by higher margins from increased volumes delivered
to industrial customers. Margin increased by $1 million for the six months ended April 30, 2010, primarily due to increased
volumes delivered to industrial customers and residential customer
growth.
Operations and maintenance expenses increased by $4.2 million for the second quarter and by
$5.5 million for the six months ended
April 30, 2010, compared to the same
periods in 2009. The increase in O&M expenses for both periods
was primarily due to increases in payroll expense and, in the case
of the second quarter, higher pension expense.
Pre-tax income from equity method investments was $13.3 million for the three months ended
April 30, 2010, as compared with
$17.8 million for the same period in
2009. For the six months ended April
30, pre-tax income from equity method investments was
$25.1 million compared with
$27.6 million for the same period in
2009. The decrease in both periods was primarily due to a
decrease in earnings from SouthStar due to our lower 15% ownership
interest as discussed above.
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, forecasted gross customer
additions of 1.0 to 1.2 percent in the Company's utility service
areas and forecasted 2010 utility capital expenditures of
$224 million, including ongoing
pipeline infrastructure expansions to serve new power generation
customers in North Carolina.
Commenting on the Company's results and earnings guidance,
Piedmont Natural Gas Chairman, President and Chief Executive
Officer Thomas E. Skains said, "Our
operating performance through the first two quarters of the year is
going according to plan and we are pleased to reaffirm our earnings
guidance for fiscal year 2010. Even in a soft new
construction market, we continue to add new residential, commercial
and industrial customers to our distribution systems and are now
focused as well on a growing natural gas power generation market in
North Carolina. We continue
to maintain our emphasis on quality customer service and business
process improvements. We believe these strategies will
deliver long-term value to our shareholders."
CONFERENCE CALL
In conjunction with the second-quarter earnings release, you are
invited to listen to the conference call that will broadcast live
over the Internet on Wednesday, June
9 at 11:00 a.m. Eastern Time,
hosted by Chairman, President and CEO Thomas E. Skains. Log onto the web at
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.
Piedmont Natural Gas
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|
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|
Summary of Operations
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|
|
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(in thousands except per share amounts
and degree days)
|
|
|
|
|
|
|
|
Three Months Ended
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April
30
|
%
Increase
|
|
|
2010
|
|
2009
|
(Decrease)
|
|
|
Unaudited
|
|
|
Operating Revenues
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$472,846
|
|
$455,432
|
4%
|
|
Cost of Gas
|
304,168
|
|
285,479
|
7%
|
|
Margin
|
168,678
|
|
169,953
|
-1%
|
|
Operations and Maintenance
Expenses
|
57,503
|
|
53,352
|
8%
|
|
Depreciation
|
24,483
|
|
24,306
|
1%
|
|
General Taxes
|
8,758
|
|
8,657
|
1%
|
|
Utility Income Taxes
|
25,709
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|
28,287
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-9%
|
|
Operating Income
|
52,225
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|
55,351
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-6%
|
|
Other Income (Expense), net
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7,611
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|
10,086
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-25%
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Utility Interest Charges
|
13,011
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|
11,912
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9%
|
|
Net Income
|
46,825
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|
53,525
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-13%
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|
Average Shares of Common
Stock:
|
|
|
|
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|
Basic
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71,788
|
|
73,239
|
-2%
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|
Diluted
|
72,118
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|
73,514
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-2%
|
|
Earnings Per Share of Common
Stock:
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|
|
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Basic
|
$0.65
|
|
$0.73
|
-11%
|
|
Diluted
|
$0.65
|
|
$0.73
|
-11%
|
|
System Throughput -
Dekatherms
|
66,687
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|
57,453
|
16%
|
|
Gas Customers Billed in
April
|
972
|
|
965
|
1%
|
|
System Average Degree Days --
Actual
|
1,319
|
|
1,204
|
10%
|
|
System Average Degree Days --
Normal
|
1,207
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|
1,212
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-%
|
|
Percent Normal Degree Days
|
109%
|
|
99%
|
-
|
|
|
|
|
|
|
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Six Months Ended
|
April
30
|
%
Increase
|
|
|
2010
|
|
2009
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(Decrease)
|
|
|
Unaudited
|
|
|
Operating Revenues
|
$1,146,582
|
|
$1,235,076
|
-7%
|
|
Cost of Gas
|
754,962
|
|
844,440
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-11%
|
|
Margin
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391,620
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|
390,636
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-%
|
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Operations and Maintenance
Expenses
|
109,542
|
|
104,077
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5%
|
|
Depreciation
|
48,838
|
|
48,448
|
1%
|
|
General Taxes
|
17,343
|
|
17,394
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-%
|
|
Utility Income Taxes
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75,871
|
|
77,235
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-2%
|
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Operating Income
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140,026
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|
143,482
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-2%
|
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Other Income (Expense), net
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44,863
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|
15,844
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183%
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Utility Interest Charges
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24,315
|
|
24,925
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-2%
|
|
Net Income
|
160,574
|
|
134,401
|
20%
|
|
Average Shares of Common
Stock:
|
|
|
|
|
|
Basic
|
72,492
|
|
73,280
|
-1%
|
|
Diluted
|
72,842
|
|
73,582
|
-1%
|
|
Earnings Per Share of Common
Stock:
|
|
|
|
|
|
Basic
|
$2.22
|
|
$1.83
|
21%
|
|
Diluted
|
$2.20
|
|
$1.83
|
20%
|
|
System Throughput -
Dekatherms
|
151,409
|
|
133,984
|
13%
|
|
Gas Customers Billed in
April
|
972
|
|
965
|
1%
|
|
System Average Degree Days --
Actual
|
3,369
|
|
3,148
|
7%
|
|
System Average Degree Days --
Normal
|
3,065
|
|
3,068
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-%
|
|
Percent Normal Degree Days
|
110%
|
|
103%
|
-
|
|
|
|
|
|
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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 52,000 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.
SOURCE Piedmont Natural Gas