CHARLOTTE, N.C., Nov. 1, 2010 /PRNewswire-FirstCall/ --
Charlotte based Piedmont Natural
Gas (NYSE: PNY) is initiating its earnings guidance for the fiscal
year ending October 31, 2011 in the
range of $1.50 to $1.60 per diluted
share.
The guidance for the fiscal year 2011 reflects the following
assumptions:
- Margin growth from gross customer additions of 1.2% in the
Company's North Carolina,
South Carolina and Tennessee markets,
- A $1.0 million annual margin
increase effective November 1, 2010
pursuant to a settlement approved in the Company's 2010 South
Carolina Rate Stabilization Act proceeding,
- A 2.3% increase in O&M expense primarily driven by payroll,
pension and medical costs,
- Utility capital expenditures of $313
million, including $148
million for pipeline infrastructure investments to serve the
Wayne and Sutton power generation projects in North Carolina which will increase the
Company's Allowance For Funds Used During Construction
(AFUDC),
- A fifteen percent ownership interest in SouthStar Energy
Services for the entire year,
- Open market share purchases to offset the Company's Dividend
Reinvestment Program and other stock based programs with no
permanent reduction in shares outstanding for fiscal year
2011,
- A new revolving credit agreement in place in the first quarter
of fiscal year 2011, replacing the current facility which will
expire in April 2011,
- The call of the Company's 6.25% 30-year Insured Quarterly notes
in June, 2011 to be refinanced with lower cost long-term debt,
and
- No additional long-term debt issuance during fiscal year
2011.
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