CHARLOTTE, N.C., June 7, 2013 /PRNewswire/ -- Piedmont Natural Gas
(NYSE: PNY) today announced results for its second fiscal quarter
ended April 30, 2013. For the
quarter, the Company reported net income of $55.8 million, or $.74 per diluted share, compared to net income of
$50.2 million, or $.70 per diluted share for the same period in
2012.
For the six months ended April 30,
2013, net income was $141.7
million and diluted earnings per share were $1.91, compared with net income of $126.4 million and diluted earnings per share of
$1.75 for the same period in
2012.
Margin for the second quarter was $183.9
million, an increase of $11.9
million from the prior year's quarter. Margin for the six
months ended April 30, 2013 was
$415.5 million, an increase of
$23.3 million from the prior year
period. The increase in margin is primarily attributable to
customer growth, new rates in Tennessee, increased volume deliveries in the
residential, commercial, and industrial markets due to colder
weather, and increased transportation services in the power
generation markets.
Operations and maintenance expenses totaled $65 million during the second quarter of 2013, an
increase of $4.5 million from the
second quarter of 2012. The increase in O&M expenses for the
quarter is primarily due to increases in contract labor expenses
related to pipeline integrity and maintenance programs, employee
benefits expense, regulatory expense amortizations, and
transportation expense. Operations and maintenance expenses
totaled $120.9 million during the six
months ended April 30, 2013, an
increase of $2 million from the same
period in 2012. The increase in O&M expenses for the six month
period is primarily due to increases in contract labor expenses
related to pipeline integrity and maintenance programs, regulatory
expense amortizations, and transportation expense, partially offset
by a decrease in employee benefits expense.
Pre-tax income from Piedmont's
joint ventures was up 7% for the quarter and 9% for the six month
period primarily due to improved performance at SouthStar Energy
from increased customer usage related to colder weather.
Utility interest charges for the quarter were $3.3 million compared to $5.7 million for the same period in 2012.
Utility interest charges for the six months ended April 30, 2013 were $7.8
million compared to $12.9
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, higher interest income from
increased amounts due from customers, and lower short-term interest
expense, all partially offset by an increase in interest expense on
long-term debt, primarily due to higher amounts outstanding in
2013.
Company Announces Quarterly Dividend
At its regular quarterly meeting of the Board of Directors, the
Company today announced the declaration of a quarterly dividend on
Common Stock of 31 cents per share,
payable on July 15, 2013 to holders
of record at the close of business on June
24, 2013.
FISCAL 2013 EARNINGS GUIDANCE REAFFIRMED
Piedmont Natural Gas reaffirms its fiscal year 2013 earnings
guidance of $1.67 to $1.77 per
diluted share.
CONFERENCE CALL
In conjunction with the second-quarter earnings release, you are
invited to listen to the conference call that will broadcast live
over the Internet on Tuesday, June 11,
2013 at 10:00 a.m. Eastern
Time, hosted by Chairman, President and CEO Thomas E. Skains. Log onto the web at
www.piedmontng.com and click on For Investors. The conference call
will be archived on the Presentation page of the website within the
For Investors section.
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Summary of
Operations
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(in thousands except
per share amounts and degree days)
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Three Months
Ended
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April 30
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% Increase
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2013
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2012
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(Decrease)
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(Unaudited)
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Operating
Revenues
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$
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399,411
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$
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308,432
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29
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%
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Cost of
Gas
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215,555
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136,481
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58
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%
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Margin
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183,856
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171,951
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7
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%
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Operations and
Maintenance Expenses
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65,037
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60,511
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7
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%
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Depreciation
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26,867
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25,269
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6
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%
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General
Taxes
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9,068
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9,299
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(2%)
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Utility Income
Taxes
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31,380
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28,090
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12
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%
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Operating
Income
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51,504
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48,782
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6
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%
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Other Income
(Expense), net
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7,608
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7,073
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8
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%
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Utility Interest
Charges
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3,322
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5,663
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(41%)
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Net Income
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55,790
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50,192
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11
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%
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Average Shares of
Common Stock:
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Basic
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75,463
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71,731
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5
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%
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Diluted
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75,904
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72,026
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5
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%
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Earnings Per Share of
Common Stock:
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Basic
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$
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.74
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$
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.70
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6
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%
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Diluted
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$
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.74
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$
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.70
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6
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%
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System Throughput —
Dekatherms
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108,884
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81,946
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33
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%
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Gas Customers Billed
in January
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1,000
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984
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2
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%
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System Average Degree
Days — Actual
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1,418
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865
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64
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%
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System Average Degree
Days — Normal
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1,180
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1,194
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(1%)
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Percent Normal Degree
Days
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120
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%
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72
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%
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n/a
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Six Months
Ended
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April 30
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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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915,286
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$
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780,272
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17
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%
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Cost of
Gas
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499,806
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388,085
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29
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%
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Margin
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415,480
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392,187
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6
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%
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Operations and
Maintenance Expenses
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120,919
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118,908
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2
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%
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Depreciation
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53,569
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51,447
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4
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%
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General
Taxes
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18,596
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17,920
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4
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%
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Utility Income
Taxes
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84,679
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75,311
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12
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%
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Operating
Income
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137,717
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128,601
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7
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%
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Other Income
(Expense), net
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11,775
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10,686
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10
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%
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Utility Interest
Charges
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7,779
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12,868
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(40%)
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Net Income
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141,713
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126,419
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12
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%
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Average Shares of
Common Stock:
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Basic
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73,884
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71,931
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3
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%
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Diluted
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74,301
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72,226
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3
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%
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Earnings Per Share of
Common Stock:
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Basic
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$
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1.92
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$
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1.76
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9
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%
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Diluted
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$
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1.91
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$
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1.75
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9
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%
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System Throughput —
Dekatherms
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216,832
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172,911
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25
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%
|
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Gas Customers Billed
in January
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1,000
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984
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2
|
%
|
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System Average Degree
Days — Actual
|
|
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3,109
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|
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2,433
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28
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%
|
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System Average Degree
Days — Normal
|
|
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3,029
|
|
|
|
3,063
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|
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(1%)
|
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Percent Normal Degree
Days
|
|
|
103
|
%
|
|
|
79
|
%
|
|
|
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. 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