CHARLOTTE, N.C., Nov. 1, 2013 /PRNewswire/ -- Piedmont
Natural Gas (NYSE: PNY) is initiating earnings guidance in the
range of $1.73 - $1.83 per diluted
share for its fiscal year ending October
31, 2014. This guidance for fiscal year 2014 reflects
the following assumptions:
- Higher utility margin due to:
- The settlement of a North
Carolina rate case, which is pending before the North
Carolina Utilities Commission (NCUC);
- An Integrity Management Rider (IMR) in North Carolina, which is pending before the
NCUC as part of the North Carolina
rate case settlement;
- An IMR in Tennessee, which is
pending before the Tennessee Regulatory Authority;
- Gross utility customer additions of about 1.5% in the Company's
three state market area; and
- The full year impact of the Sutton power generation delivery
project that went into service in fiscal year 2013.
- Higher Operations and Maintenance (O&M) expense of about 3%
due to increased regulatory asset amortizations under the
North Carolina rate case
settlement and higher utility operations expense to support
pipeline integrity, safety and compliance programs.
- Higher depreciation expense due to additional utility plant in
service, partially offset by lower depreciation rates under the
North Carolina rate case
settlement.
- Increased contributions from joint venture equity method
investments as a result of SouthStar's expansion into Illinois, increased Allowance for Funds Used
During Construction (AFUDC) at Constitution Pipeline, and the
full-year impact of a higher ownership percentage of Pine Needle
LNG.
- Capital expenditures in the range of $425 - $475 million, including approximately
$250 million related to system
integrity projects, as well as an additional $55 million to fund the Company's joint venture
equity interest in the Constitution Pipeline project.
- Lower AFUDC of about $12 million
reflecting forecasted capital expenditure levels and project
schedules.
- Higher interest expense primarily due to the full-year impact
of the Company's $300 million
long-term debt issuance in fiscal year 2013.
- The issuance of new long-term debt and equity capital over
fiscal years 2014 and 2015, at such amounts to support the
Company's capital investment program and maintain the Company's
long term targeted capital ratios of 45% - 50% long-term debt and
50% - 55% equity.
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," "guidance," 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 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