CHARLOTTE, N.C., June 7, 2012 /PRNewswire/ -- Piedmont
Natural Gas (NYSE: PNY) today announced results for its second
fiscal quarter ended April 30, 2012.
For the quarter, the Company reported net income of $50.2 million, or $.70 per diluted share, compared to net income of
$47.4 million, or $.66 per diluted share for the same period in
2011.
For the six months ended April 30,
2012, net income was $126.4
million and diluted earnings per share were $1.75, compared with net income of $131.8 million and diluted earnings per share of
$1.82 for the same period in
2011.
Utility margin decreased by $1.0
million for the second quarter and by $10.8 million for the first six months, primarily
due to weather that was 28 and 21 percent warmer than normal,
respectively, and 19 and 27 percent warmer than last year,
respectively, resulting in lower volume deliveries to weather
sensitive retail markets and reduced opportunities in the secondary
wholesale markets. These decreases were partially offset by
increased margins from power generation customers and by continued
customer growth.
Piedmont's chairman, president
and chief executive officer, Thomas E.
Skains commented on the results, "Our financial results
through the first six months of 2012 reflect the challenges posed
by substantially warmer than normal weather throughout our service
area. At the same time, we are encouraged by our increasing gains
in new residential and commercial customers and our efforts to
control our costs of operating the business. We are also
pleased to initiate our natural gas delivery service to the
Progress Energy Wayne County project as scheduled on June 1, 2012."
Customer additions compared to the same period in 2011 increased
by 22 percent in the Company's residential market and by 15 percent
in our commercial market. Residential gains were driven
primarily by additions from new home construction as well as
increased activity in residential conversion markets. Growth
in the commercial markets was a result of both increased
construction activity and customer conversions.
Operations and maintenance expenses increased by $1.6 million for the second quarter and by
$8.9 million for the six months ended
April 30, 2012, compared to the same
periods in 2011. The increase in O&M expenses for both
periods is primarily due to expected increases in pension and
medical coverage expenses. Pre-tax income from Piedmont's joint ventures was $11.7 million for the second quarter, as compared
to $12.4 million for the same period
in 2011. Through the first two quarters of 2012, pre-tax
income from equity method investments was $17.9 million compared with $20.1 million for the same period in 2011.
The decrease is primarily due to reduced customer usage related to
warmer weather in the markets served by SouthStar Energy
Services.
Utility interest charges for the quarter were $5.7 million compared to $12.9 million for the same period in 2011.
The decrease is primarily due to an increase in AFUDC related to
the construction of the power generation delivery projects as well
as a lower weighted average cost of long-term debt.
Gross utility construction expenditures during the first half of
2012 totaled $220.3 million, an
increase of approximately $130.8
million over the same period of 2011. The increase is
primarily due to the Company's construction of new transmission and
compression facilities to serve new natural gas fired power
generation facilities in North Carolina. Piedmont anticipates expenditures of
$250 - $270 million, including
allowance for funds used during construction (AFUDC), during the
current fiscal year for power generation delivery projects.
Company Completes Wayne County Power Generation Delivery
Project; Continues Work on Sutton Project
On June 1, 2012, Piedmont Natural
Gas completed and placed into service its Wayne County power generation delivery project
for Progress Energy. Construction of the 38 mile, 20-inch
transmission pipeline and associated compression facilities began
in February 2010.
Piedmont also continues to
construct transmission and compression facilities for Progress
Energy's Sutton Plant site near
Wilmington, NC. That project
is on track to be put into service by June of 2013. Both the
Wayne County and Sutton projects
are supported by long-term service agreements with Progress
Energy.
Company Announces Quarterly Dividend
At its regular quarterly meeting of the Company's Board of
Directors, the Company today announced the declaration of a
quarterly dividend on Common Stock of 30
cents per share, payable July 13,
2012, to holders of record at the close of business on
June 22, 2012.
Fiscal 2012 Earnings Guidance Reaffirmed at Lower End of
Range
As a result of substantially warmer than normal weather during
the Company's first and second fiscal quarters, Piedmont Natural
Gas reaffirms its fiscal year 2012 earnings guidance of
$1.58 to $1.68 per diluted share with
emphasis toward the lower end of the range.
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 Friday, June 8
at 2:00 p.m. Eastern Daylight Time,
hosted by Chairman, President and CEO Thomas E. Skains. Log onto the web at
www.piedmontng.com and click on 'For Investors'. The conference
call will be archived on the Presentation page of the website
within the 'For Investors' section.
Piedmont
Natural Gas
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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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April
30
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%
Increase
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2012
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2011
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(Decrease)
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Unaudited
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Operating
Revenues
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$308,432
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$392,567
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-21%
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Cost of
Gas
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136,481
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219,636
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-38%
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Margin
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171,951
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172,931
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-1%
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Operations
and Maintenance Expenses
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60,511
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58,936
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3%
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Depreciation
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25,269
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25,425
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-1%
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General
Taxes
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9,299
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9,464
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-2%
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Utility
Income Taxes
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28,090
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26,179
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7%
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Operating
Income
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48,782
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52,927
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-8%
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Other
Income (Expense), net
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7,073
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7,344
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-4%
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Utility
Interest Charges
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5,663
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12,863
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-56%
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Net
Income
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50,192
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47,408
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6%
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Average
Shares of Common Stock:
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Basic
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71,731
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71,824
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-%
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Diluted
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72,026
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72,061
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-%
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Earnings
Per Share of Common Stock:
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Basic
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$0.70
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$0.66
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6%
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Diluted
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$0.70
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$0.66
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6%
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System
Throughput - Dekatherms
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80,200
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65,577
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22%
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Gas
Customers Billed in April
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984
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978
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1%
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System
Average Degree Days -- Actual
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865
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1,074
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-19%
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System
Average Degree Days -- Normal
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1,194
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1,200
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-1%
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Percent
Normal Degree Days
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72%
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90%
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-
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Six
Months Ended
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April
30
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%
Increase
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2012
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2011
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(Decrease)
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Unaudited
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Operating
Revenues
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$780,272
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$1,044,623
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-25%
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Cost of
Gas
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388,085
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641,686
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-40%
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Margin
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392,187
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402,937
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-3%
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Operations
and Maintenance Expenses
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118,908
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109,994
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8%
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Depreciation
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51,447
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50,472
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2%
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General
Taxes
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17,920
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20,561
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-13%
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Utility
Income Taxes
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75,311
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78,114
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-4%
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Operating
Income
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128,601
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143,796
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-11%
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Other
Income (Expense), net
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10,686
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11,932
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-10%
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Utility
Interest Charges
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12,868
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23,880
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-46%
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Net
Income
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126,419
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131,848
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-4%
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Average
Shares of Common Stock:
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Basic
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71,931
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72,012
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-%
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Diluted
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72,226
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72,279
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-%
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Earnings
Per Share of Common Stock:
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Basic
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$1.76
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$1.83
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-4%
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Diluted
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$1.75
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$1.82
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-4%
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System
Throughput - Dekatherms
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170,429
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163,420
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4%
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Gas
Customers Billed in April
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984
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978
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1%
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System
Average Degree Days -- Actual
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2,433
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3,352
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-27%
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System
Average Degree Days -- Normal
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3,063
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3,065
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-%
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Percent
Normal Degree Days
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79%
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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
place undue reliance on these forward-looking statements when
making investment decisions. The words "expect," "believe,"
"project," "anticipate," "intend," "should," "could," "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