CHARLOTTE, N.C., Dec. 21, 2012 /PRNewswire/ -- Piedmont
Natural Gas (NYSE: PNY) today announced results for its fiscal year
ended October 31, 2012. For the
year, the Company reported net income of $119.8 million and diluted earnings per share of
$1.66 compared with net income of
$113.6 million and diluted earnings
per share of $1.57 for 2011.
Commenting on the Company's fiscal year 2012 results, Piedmont
Chairman, President and Chief Executive Officer, Thomas E. Skains said, "It was an excellent year
for our Company – a year of significant strategic, operational and
financial success. After a winter that was the warmest in
more than 35 years, our employees rallied to focus on operational
and financing efficiencies, expense discipline and margin
growth. We generated a notable improvement in the growth of
our core gas utility business with the addition of over 13,000 new
customers to our distribution systems, up 26 percent from our
customer additions in 2011. We also successfully executed the
largest capital expansion program in the Company's history,
investing over $550 million for core
customer growth, expansion to serve new power generation facilities
and system infrastructure and pipeline integrity management
programs. With a strong finish in 2012, we look forward to
the opportunities ahead in the new year."
System throughput in 2012 totaled 324 million dekatherms,
compared with 280 million dekatherms for the previous year.
The increase was largely due to an 82 percent increase in volumes
delivered to power generation customers, partially offset by a
decrease in volumes delivered to residential, commercial, and
industrial customers due to weather in 2012 that was 19 percent
warmer than normal and 27 percent warmer than 2011.
Utility margin was up $1.8 million
from the previous year primarily due to customer growth in the
Company's residential and commercial markets, increased base rates
in Tennessee and increased
services in its power generation markets, partially offset by the
impact of warmer weather in the Company's residential, commercial,
industrial and secondary markets. Operations and maintenance
expenses for the year increased $17.2
million from the previous year primarily due to higher
employee benefit expenses in pension and medical plans, higher
payroll expenses and increased contract labor expenses incurred in
process improvement and pipeline integrity programs.
Utility interest charges were $21.1
million in 2012 compared to $44.0
million in 2011. The reduction in interest charges was due
to higher capitalization of borrowing costs to AFUDC (allowance for
funds used during construction) as the result of increased project
construction expenditures, and the Company's financing activities
to minimize the cost of debt.
Pre-tax income from equity method investments was $23.9 million in 2012 compared with $24.0 million in 2011. Warmer weather in the
markets served by SouthStar Energy impacted results, but were
mostly offset by improved performance from Cardinal Pipeline due to
a major expansion project for its customers.
FISCAL 2013 EARNINGS GUIDANCE REAFFIRMED
Piedmont Natural Gas reaffirms its fiscal year 2013 earnings
guidance of $1.67 to $1.77 per
diluted share issued on November 13,
2012.
DIVIDEND
At its regular quarterly meeting of the Company's Board of
Directors on December 13, 2012,
Piedmont Natural Gas announced the declaration of a quarterly
dividend on Common Stock of $.30 per
share, payable December 31, 2012, to
holders of record at the close of business on December 24, 2012.
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 Thursday, January
3, 2013, 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
|
|
|
2012
|
|
2011
|
|
(Decrease)
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$1,122,780
|
|
$1,433,905
|
|
(22)%
|
Cost of
Gas
|
|
547,334
|
|
860,266
|
|
(36)%
|
Margin
|
|
575,446
|
|
573,639
|
|
-%
|
Operations
and Maintenance Expenses
|
|
242,599
|
|
225,351
|
|
8%
|
Depreciation
|
|
103,192
|
|
102,829
|
|
-%
|
General
Taxes
|
|
34,831
|
|
38,380
|
|
(9)%
|
Utility
Income Taxes
|
|
69,101
|
|
64,068
|
|
8%
|
Operating
Income
|
|
125,723
|
|
143,011
|
|
(12)%
|
Other
Income (Expense), net
|
|
14,221
|
|
14,549
|
|
(2)%
|
Utility
Interest Charges
|
|
20,097
|
|
43,992
|
|
(54)%
|
Net
Income
|
|
119,847
|
|
113,568
|
|
6%
|
Average
Shares of Common Stock:
|
|
|
|
|
|
|
Basic
|
|
71,977
|
|
72,056
|
|
-
%
|
Diluted
|
|
72,278
|
|
72,266
|
|
-
%
|
Earnings
Per Share of Common Stock:
|
|
|
|
|
|
|
Basic
|
|
$1.67
|
|
$1.58
|
|
6%
|
Diluted
|
|
$1.66
|
|
$1.57
|
|
6%
|
System
Throughput - Dekatherms
|
|
324,300
|
|
279,761
|
|
16%
|
Gas
Customers Billed in October
|
|
969
|
|
958
|
|
1%
|
System
Average Degree Days - Actual
|
|
2,668
|
|
3,662
|
|
(27)%
|
System
Average Degree Days - Normal
|
|
3,310
|
|
3,318
|
|
-%
|
Percent
Normal Degree Days
|
|
81%
|
|
110%
|
|
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
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, industrial and power generation utility
customers in portions of North
Carolina, South Carolina
and Tennessee, including 51,600
customers served by municipalities who are wholesale customers. Our
subsidiaries are invested in joint venture, energy-related
businesses, including unregulated retail natural gas marketing, and
regulated interstate natural gas transportation and storage and
intrastate natural gas transportation businesses. More information
about Piedmont Natural Gas is available on the Internet at
http://www.piedmontng.com/.
SOURCE Piedmont Natural Gas