CHARLOTTE, N.C., June 8, 2011 /PRNewswire/ -- Piedmont Natural Gas
(NYSE: PNY) today announced results for its second quarter ended
April 30, 2011. For the
quarter, the Company's net income was $47.4
million and diluted earnings per share were $.66 compared with net income of $46.8 million and diluted earnings per share of
$.65 for the same period in 2010.
For the six months ended April 30,
2011, net income was $131.8
million and diluted earnings per share were $1.82, compared with net income of $160.6 million and diluted earnings per share of
$2.20 for the same period in 2010,
which included the sale of one-half of the Company's then-current
30% membership interest in SouthStar.
Piedmont's chairman, president
and chief executive officer, Thomas E.
Skains commented on the results, "We are pleased with our
results through the first six months of 2011 and remain focused on
providing customers safe and reliable natural gas service. We
continue to deliver the message that natural gas is clean,
efficient, domestic, and abundant, and take advantage of the growth
opportunities in our markets."
Utility margin increased by $4.3
million for the second quarter and by $11.3 million for the six months ended
April 30, 2011, primarily due to
residential customer growth, increases in volumes and services to
industrial and power generation customers, and wholesale market
activity, compared to the same periods in 2010.
Operations and maintenance expenses increased by $1.4 million for the second quarter and by
$.5 million for the six months ended
April 30, 2011, compared to the same
periods in 2010. The increase in O&M expenses for both periods
is primarily due to increases in contracted labor services and
transportation related expenses, partially offset by lower utility
expense.
Pre-tax income from equity method investments was $12.4 million for the three months ended
April 30, 2011, as compared with
$13.3 million for the same period in
2010. For the six months ended April
30, pre-tax income from equity method investments was
$20.1 million compared with
$25.1 million for the same period in
2010. The decrease in both periods was primarily due to a
decrease in earnings from the Company's investment in SouthStar
Energy Services.
FISCAL 2011 EARNINGS GUIDANCE REAFFIRMED
Piedmont Natural Gas reaffirms its fiscal year 2011 earnings
guidance of $1.50 to $1.60 per
diluted share.
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
8 at 11:00 a.m. Eastern Daylight
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
|
|
Summary of Operations
|
|
(in thousands except per share
amounts and degree days)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
April
30
|
|
%
Increase
|
|
|
|
2011
|
|
2010
|
|
(Decrease)
|
|
|
|
Unaudited
|
|
|
|
Operating Revenues
|
|
$392,567
|
|
$472,846
|
|
-17%
|
|
Cost of Gas
|
|
219,636
|
|
304,168
|
|
-28%
|
|
Margin
|
|
172,931
|
|
168,678
|
|
3%
|
|
Operations and Maintenance
Expenses
|
|
58,936
|
|
57,503
|
|
3%
|
|
Depreciation
|
|
25,425
|
|
24,483
|
|
4%
|
|
General Taxes
|
|
9,464
|
|
8,758
|
|
8%
|
|
Utility Income Taxes
|
|
26,179
|
|
25,709
|
|
2%
|
|
Operating Income
|
|
52,927
|
|
52,225
|
|
1%
|
|
Other Income (Expense),
net
|
|
7,344
|
|
7,611
|
|
-4%
|
|
Utility Interest
Charges
|
|
12,863
|
|
13,011
|
|
-1%
|
|
Net Income
|
|
47,408
|
|
46,825
|
|
1%
|
|
Average Shares of Common
Stock:
|
|
|
|
|
|
|
|
Basic
|
|
71,824
|
|
71,788
|
|
-%
|
|
Diluted
|
|
72,061
|
|
72,118
|
|
-%
|
|
Earnings Per Share of Common
Stock:
|
|
|
|
|
|
|
|
Basic
|
|
$0.66
|
|
$0.65
|
|
2%
|
|
Diluted
|
|
$0.66
|
|
$0.65
|
|
2%
|
|
System Throughput -
Dekatherms
|
|
65,577
|
|
66,687
|
|
-2%
|
|
Gas Customers Billed in
April
|
|
978
|
|
972
|
|
1%
|
|
System Average Degree Days --
Actual
|
|
1,074
|
|
1,319
|
|
-19%
|
|
System Average Degree Days --
Normal
|
|
1,200
|
|
1,207
|
|
-1%
|
|
Percent Normal Degree
Days
|
|
90%
|
|
109%
|
|
-
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
April
30
|
|
%
Increase
|
|
|
|
2011
|
|
2010
|
|
(Decrease)
|
|
|
|
Unaudited
|
|
|
|
Operating Revenues
|
|
$1,044,623
|
|
$1,146,582
|
|
-9%
|
|
Cost of Gas
|
|
641,686
|
|
754,962
|
|
-15%
|
|
Margin
|
|
402,937
|
|
391,620
|
|
3%
|
|
Operations and Maintenance
Expenses
|
|
109,994
|
|
109,542
|
|
-%
|
|
Depreciation
|
|
50,472
|
|
48,838
|
|
3%
|
|
General Taxes
|
|
20,561
|
|
17,343
|
|
19%
|
|
Utility Income Taxes
|
|
78,114
|
|
75,871
|
|
3%
|
|
Operating Income
|
|
143,796
|
|
140,026
|
|
3%
|
|
Other Income (Expense),
net
|
|
11,932
|
|
44,863
|
|
-73%
|
|
Utility Interest
Charges
|
|
23,880
|
|
24,315
|
|
-2%
|
|
Net Income
|
|
131,848
|
|
160,574
|
|
-18%
|
|
Average Shares of Common
Stock:
|
|
|
|
|
|
|
|
Basic
|
|
72,012
|
|
72,492
|
|
-1%
|
|
Diluted
|
|
72,279
|
|
72,842
|
|
-1%
|
|
Earnings Per Share of Common
Stock:
|
|
|
|
|
|
|
|
Basic
|
|
$1.83
|
|
$2.22
|
|
-18%
|
|
Diluted
|
|
$1.82
|
|
$2.20
|
|
-18%
|
|
System Throughput -
Dekatherms
|
|
163,420
|
|
151,409
|
|
8%
|
|
Gas Customers Billed in
April
|
|
978
|
|
972
|
|
1%
|
|
System Average Degree Days --
Actual
|
|
3,352
|
|
3,369
|
|
-1%
|
|
System Average Degree Days --
Normal
|
|
3,065
|
|
3,065
|
|
-%
|
|
Percent Normal Degree
Days
|
|
109%
|
|
110%
|
|
-
|
|
|
|
|
|
|
|
|
|
|
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 53,000 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 Company