CHARLOTTE, N.C., March 6, 2013 /PRNewswire/ -- Piedmont
Natural Gas (NYSE: PNY) today announced results for its first
fiscal quarter ended January 31,
2013. For the quarter, the Company reported net income of
$85.9 million, or $1.18 per diluted share, compared to net income
of $76.2 million, or $1.05 per diluted share for the same period in
2012.
Margin for the quarter was $231.6
million, an increase of $11.4
million from the prior year's quarter. The increase in
margin is primarily attributable to customer growth and increased
volume deliveries in the residential, commercial, and industrial
markets due to 8 percent colder weather, increased transportation
services in the power generation markets and increased secondary
market activity.
Piedmont's Chairman, President
and CEO, Thomas E. Skains, commented
on the results, "We are pleased with our performance during the
first quarter of fiscal year 2013. Customer additions
throughout our three-state service area improved by 9 percent over
the first quarter of last year. We continue to see positive signs
of recovery and growth in our core markets. We are also well
on track to execute our 2013 capital expansion program by
completing our Sutton power generation delivery project on schedule
by June 2013 and making good progress
on our system integrity and reliability programs. Our strong
first quarter performance is evidence of the value our customers
place on natural gas to meet their energy needs in an affordable,
clean and reliable fashion."
Operations and maintenance expenses totaled $55.9 million during the first quarter of 2013, a
decrease of $2.5 million from the
first quarter of 2012. The decrease in O&M expenses for the
quarter is primarily due to decreases in employee benefit expenses,
partially offset by increases in contract labor expenses related to
pipeline integrity and maintenance programs.
Pre-tax income from Piedmont's
joint ventures was up 14 percent compared to the same period in
2012 due to improved performance at SouthStar Energy and Cardinal
Pipeline.
Utility interest charges for the quarter were $4.5 million compared to $7.2 million for the same period in 2012.
The decrease is primarily due to an increase in AFUDC as a result
of increased project construction expenditures, and decreases in
interest expense resulting from increased amounts due from
customers and lower short-term interest expense, partially offset
by an increase in interest expense on long-term debt primarily due
to higher amounts outstanding in 2013.
DIVIDEND INCREASED FOR THIRTY-FIFTH CONSECUTIVE YEAR
As previously announced, the Board of Directors on March 6 approved an increase in the Company's
quarterly dividend on Common Stock. The new quarterly dividend of
31 cents per share will be payable on
April 15, 2013 to holders of record
at the close of business on March 25,
2013.
FISCAL 2013 EARNINGS GUIDANCE REAFFIRMED
Piedmont Natural Gas reaffirms its fiscal year 2013 earnings
guidance of $1.67 to $1.77 per
diluted share.
CONFERENCE CALL
In conjunction with the first-quarter earnings release, you are
invited to listen to the conference call that will broadcast live
over the Internet on Thursday, March 7,
2013 at 10:00 a.m. Eastern
Time, hosted by Chairman, President and CEO Thomas E. Skains. Log onto the web at
www.piedmontng.com and click on Investor Relations, then on
Presentations. The conference call will be archived on the
Presentation page of the website within the Investor Relations
section.
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Summary of
Operations
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(in
thousands except per share amounts and degree days)
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Three
Months Ended
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January
31
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%
Increase
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2013
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2012
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(Decrease)
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(Unaudited)
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Operating
Revenues
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$
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515,875
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$
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471,840
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9%
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Cost of
Gas
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284,252
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251,603
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13%
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Margin
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231,623
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220,237
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5%
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Operations
and Maintenance Expenses
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55,882
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58,397
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(4%)
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Depreciation
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26,701
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26,178
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2%
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General
Taxes
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9,528
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8,622
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11%
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Utility
Income Taxes
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53,299
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47,221
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13%
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Operating
Income
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86,213
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79,819
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8%
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Other
Income (Expense), net
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4,167
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3,614
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15%
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Utility
Interest Charges
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4,457
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7,206
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(38%)
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Net
Income
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85,923
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76,227
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13%
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Average
Shares of Common Stock:
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Basic
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72,356
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72,126
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-%
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Diluted
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72,725
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72,433
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-%
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Earning
Per Share of Common Stock:
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Basic
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$
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1.19
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$
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1.06
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12%
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Diluted
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$
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1.18
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$
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1.05
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12%
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System
Throughput — Dekatherms
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107,948
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90,965
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19%
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Gas
Customers Billed in January
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995
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983
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1%
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System
Average Degree Days — Actual
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1,691
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1,568
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8%
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System
Average Degree Days — Normal
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1,849
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1,869
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(1%)
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Percent
Normal Degree Days
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91%
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84%
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n/a
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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, industrial and power generation utility
customers in portions of North
Carolina, South Carolina
and Tennessee, including 52,400
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