CHARLOTTE, N.C., Dec. 23, 2010 /PRNewswire-FirstCall/ -- Piedmont
Natural Gas (NYSE: PNY) today announced results for its fiscal year
ended October 31, 2010. For the
year, the Company reported record net income of $142 million and diluted earnings per share of
$1.96 compared with net income of
$123 million and diluted earnings per
share of $1.67 for 2009.
Results for 2010 include the gain on Piedmont's sale of half 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 $30.3 million
or $0.42 per diluted share.
Commenting on the Company's fiscal year 2010 results, Piedmont
Chairman, President and Chief Executive Officer, Thomas E. Skains said, "We are pleased to
announce another year of record earnings for our shareholders.
Piedmont continues to grow its core gas utility business and
added 11,000 new customers to its distribution systems this year
even during weak economic times. We monetized a portion of
our equity ownership in unregulated retail gas marketing for an
attractive gain and are pursuing large utility capital expansions
to serve natural gas fired power generation growth in our home
state of North Carolina. As
we look ahead, we will continue to focus on business process
improvements, high quality customer service and long term growth
and shareholder value as key components of our overall business
strategy."
System throughput in 2010 totaled 253 million dekatherms,
compared with 217 million dekatherms for the previous year.
The increase was largely due to weather in 2010 that was 6%
colder than normal and 4% colder than 2009, and an increase in
deliveries to industrial customers (up 11%) and power generation
customers (up 59%).
Margin decreased by $9 million
from the previous year primarily due to warmer weather in the
shoulder months of April and October and changes in adjustments to
regulatory gas cost accounts. Margin from industrial
customers increased 6% from 2009 to 2010. Operations and
maintenance expenses for the year increased $11.7 million from the previous year primarily
due to increased payroll, pension and contract labor expense.
Pre-tax income from equity method investments decreased
$4.6 million year to year primarily
due to lower earnings contributions from SouthStar at the new 15%
ownership interest following the transaction with AGLR on
January 1, 2010.
FISCAL 2011 EARNINGS GUIDANCE REAFFIRMED
Piedmont Natural Gas reaffirms its fiscal year 2011 earnings
guidance of $1.50 to $1.60 per
diluted share issued on November 1,
2010.
DIVIDEND
At its regular quarterly meeting of the Company's Board of
Directors on December 16, 2010,
Piedmont Natural Gas announced the declaration of a quarterly
dividend on Common Stock of $0.28 per
share, payable January 18, 2011, to
holders of record at the close of business on December 27, 2010.
CONFERENCE CALL
In conjunction with this year-end earnings release, you are
invited to listen to the conference call that will be broadcast
live over the Internet on Wednesday, January
5, 2011, at 10:00 a.m. Eastern
Time. 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
|
|
|
|
2010
|
|
2009
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
$1,552,295
|
|
$1,638,116
|
|
(5)%
|
|
Cost of Gas
|
|
999,703
|
|
1,076,542
|
|
(7)%
|
|
Margin
|
|
552,592
|
|
561,574
|
|
(2)%
|
|
Operations and Maintenance
Expenses
|
|
219,829
|
|
208,105
|
|
6%
|
|
Depreciation
|
|
98,494
|
|
97,425
|
|
1%
|
|
General Taxes
|
|
33,909
|
|
34,590
|
|
(2)%
|
|
Utility Income Taxes
|
|
62,082
|
|
70,079
|
|
(11)%
|
|
Operating Income
|
|
138,278
|
|
151,375
|
|
(9)%
|
|
Other Income (Expense),
net
|
|
47,387
|
|
18,124
|
|
161%
|
|
Utility Interest
Charges
|
|
43,711
|
|
46,675
|
|
(6)%
|
|
Net Income
|
|
141,954
|
|
122,824
|
|
16%
|
|
Average Shares of Common
Stock:
|
|
|
|
|
|
|
|
Basic
|
|
72,275
|
|
73,171
|
|
(1) %
|
|
Diluted
|
|
72,525
|
|
73,461
|
|
(1) %
|
|
Earnings Per Share of Common
Stock:
|
|
|
|
|
|
|
|
Basic
|
|
$1.96
|
|
$1.68
|
|
17%
|
|
Diluted
|
|
$1.96
|
|
$1.67
|
|
17%
|
|
System Throughput -
Dekatherms
|
|
252,615
|
|
216,874
|
|
16%
|
|
Gas Customers Billed in
October
|
|
947
|
|
938
|
|
1 %
|
|
System Average Degree Days -
Actual
|
|
3,535
|
|
3,413
|
|
4%
|
|
System Average Degree Days -
Normal
|
|
3,321
|
|
3,324
|
|
-%
|
|
Percent Normal Degree
Days
|
|
106%
|
|
103%
|
|
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 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