CHARLOTTE, N.C., Sept. 9, 2011 /PRNewswire/ -- Charlotte-based Piedmont Natural Gas (NYSE:
PNY) today announced results for its third quarter ended
July 31, 2011. For the quarter,
the Company reported a seasonal loss of $8.7
million or ($.12) per diluted
share compared with a loss of $9.5
million or ($.13) per diluted
share for the same period in 2010.
For the nine months ended July 31,
2011, net income was $123.1
million and diluted earnings per share were $1.70, compared with net income of $151.1 million and diluted earnings per share of
$2.08 for the same period in 2010
which included the sale of one-half of the Company's then-current
30% ownership interest in SouthStar Energy Services.
Utility margin increased by $4.1
million for the third quarter and by $15.4 million for the nine months ended
July 31, 2011 compared to the same
periods in 2010. The increase in margin is primarily due to
increases in volumes and services to industrial and power
generation customers, adjustments to regulatory gas cost accounts
and for the nine months, residential growth and wholesale marketing
activity.
Operations and maintenance expenses decreased by $1.9 million for the third quarter and by
$1.5 million for the nine months
ended July 31, 2011, compared to the
same periods in 2010. For the three months ended July 31, 2011, the decrease in O&M expenses
is primarily due to lower payroll and contract labor. For the nine
months ended July 31, 2011, the
decrease in O&M expenses is primarily due to lower payroll and
lower utility expenses, partially offset by increased vehicle and
transportation expenses.
Pre-tax income from equity method investments was $2.4 million for the three months ended
July 31, 2011, compared with
$2.6 million for the same period in
2010. For the nine months ended July 31,
2011, pre-tax income from equity method investments was
$22.5 million compared with
$27.7 million for the same period in
2010. The decrease in both periods was primarily due to a decrease
in earnings from SouthStar and for the nine month period to the
recording of earnings and losses at the after-sale ownership
percentage of 15%.
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 this third-quarter earnings release, you are
invited to listen to the conference call that will be broadcast
live over the Internet on Friday, September
9, 2011, at 9:30 a.m. Eastern
Time, hosted by Chairman, President and Chief Executive
Officer Thomas E. Skains. Log
on to the web at 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 Investors section.
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Piedmont Natural Gas Company,
Inc.
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Summary of Operations
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(in thousands except per share
amounts and degree days)
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Three Months
Ended
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July
31
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%
Increase
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2011
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2010
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(Decrease)
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(Unaudited)
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(Unaudited)
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Operating Revenues
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$197,274
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$211,603
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(7)%
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Cost of Gas
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115,311
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133,706
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(14)%
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Margin
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81,963
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77,897
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5%
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Operations and Maintenance
Expenses
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53,351
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55,295
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(4)%
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Depreciation
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26,128
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24,691
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6%
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General Taxes
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9,206
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8,753
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5%
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Utility Income Taxes
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(7,111)
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(7,371)
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4%
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Operating Income
(Loss)
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389
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(3,471)
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111%
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Other Income (Expense),
net
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2,286
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1,791
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28%
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Utility Interest
Charges
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11,378
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7,838
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45%
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Net Loss
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(8,703)
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(9,518)
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9%
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Average Shares of Common
Stock:
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Basic
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72,007
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71,968
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- %
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Diluted
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72,007
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71,968
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- %
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Earnings Per Share of Common
Stock:
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Basic
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($0.12)
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($0.13)
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8%
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Diluted
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($0.12)
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($0.13)
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8%
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System Throughput -
Dekatherms
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60,243
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52,897
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14%
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Gas Customers Billed in
July
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960
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955
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1 %
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System Average Degree Days -
Actual
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58
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24
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142%
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System Average Degree Days -
Normal
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50
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51
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(2)%
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Percent Normal Degree
Days
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116%
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47%
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-
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Nine Months Ended
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July
31
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%
Increase
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2011
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2010
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(Decrease)
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(Unaudited)
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(Unaudited)
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Operating Revenues
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$1,241,897
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$1,358,185
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(9)%
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Cost of Gas
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756,997
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888,667
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(15)%
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Margin
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484,900
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469,518
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3%
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Operations and Maintenance
Expenses
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163,344
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164,838
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(1)%
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Depreciation
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76,601
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73,529
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4%
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General Taxes
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29,767
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26,096
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14%
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Utility Income Taxes
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71,003
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68,499
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4%
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Operating Income
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144,185
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136,556
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6%
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Other Income
(Expense)
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14,219
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46,653
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(70)%
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Utility Interest
Charges
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35,259
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32,152
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10%
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Net Income
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$123,145
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$151,057
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(19)%
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Average Shares of Common
Stock:
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Basic
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72,010
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72,315
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- %
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Diluted
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72,235
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72,668
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(1) %
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Earnings Per Share of Common
Stock:
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Basic
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$1.71
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$2.09
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(18)%
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Diluted
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$1.70
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$2.08
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(18)%
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System Throughput -
Dekatherms
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223,663
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204,306
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10%
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Gas Customers Billed in
July
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960
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955
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1%
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System Average Degree Days -
Actual
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3,410
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3,393
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1%
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System Average Degree Days -
Normal
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3,115
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3,116
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- %
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Percent Normal Degree
Days
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110%
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109%
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-
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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