CHARLOTTE, N.C., Dec. 23, 2013 /PRNewswire/ -- Piedmont Natural
Gas (NYSE: PNY) today announced results for its fiscal year ended
October 31, 2013. For the year,
the Company reported net income of $134.4
million and diluted earnings per share of $1.78 compared with net income of $119.8 million and diluted earnings per share of
$1.66 for 2012.
Commenting on the Company's fiscal year 2013 results, Piedmont
Chairman, President and Chief Executive Officer, Thomas E. Skains said, "We are pleased with our
solid financial and operating performance in 2013. We
executed a record $672 million
capital expansion program in 2013 in support of customer growth,
power generation delivery projects, system integrity programs and
joint venture opportunities. We completed our large Sutton
Pipeline project providing natural gas delivery service to a new
state-of-the-art gas-fired power generation facility near
Wilmington, North Carolina,
enhanced the safety, security and reliability of our pipeline
systems, and added 14,274 new customers in our three-state service
area, up 7.5 percent from our customer additions in 2012. In 2013,
we also continued to improve our business processes, enhance our
customer service, and implement sustainable business practices, all
of which will serve us well in the years ahead."
System throughput in 2013 totaled 387.6 million dekatherms,
compared with 324.3 million dekatherms in 2012. The increase
was largely due to a 26 percent increase in volumes delivered to
power generation customers, coupled with a 22 percent increase in
volumes delivered to weather sensitive residential, commercial and
industrial customers. Overall, weather during 2013 was 2
percent colder than normal and 25 percent colder than 2012.
Utility margin increased $46
million from the prior year primarily due to increased
transportation services from new contracts for power generation
customers, customer growth and higher volumes from residential,
commercial and industrial customers due to colder weather.
Operations and maintenance expenses increased $10.5 million from the previous year primarily
due to higher costs incurred for contract labor related to process
improvement and pipeline integrity programs, payroll, bad debt
expense and regulatory amortizations, partially offset by a
decrease in employee benefits costs.
Utility interest charges were $24.9
million in 2013 compared to $20.1
million in 2012. The increase in interest charges was due to
increases in long-term debt, partially offset by an increase in
capitalized interest income and lower balances of short-term debt
at lower interest rates.
Pre-tax income from equity method investments was $26.1 million in 2013 compared with $23.9 million in 2012. The increase was primarily
due to the first year of the Company's investment activity in the
Constitution Pipeline project and colder weather and new markets
served by the Company's SouthStar Energy joint venture.
FISCAL 2014 EARNINGS GUIDANCE REAFFIRMED
Piedmont Natural Gas reaffirms its fiscal year 2014 earnings
guidance of $1.73 to $1.83 per
diluted share issued on November 1,
2013.
DIVIDEND
At its regular quarterly meeting of the Company's Board of
Directors on December 12, 2013,
Piedmont Natural Gas announced the declaration of a quarterly
dividend on Common Stock of $.31 per
share, payable January 15, 2014, to
holders of record at the close of business on December 24, 2013.
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 Friday, January 3,
2014, 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
|
|
|
2013
|
|
2012
|
|
(Decrease)
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$1,278,229
|
|
$1,122,780
|
|
14%
|
Cost of
Gas
|
|
656,739
|
|
547,334
|
|
20%
|
Margin
|
|
621,490
|
|
575,446
|
|
8%
|
Operations and
Maintenance Expenses
|
|
253,120
|
|
242,599
|
|
4%
|
Depreciation
|
|
112,207
|
|
103,192
|
|
9%
|
General
Taxes
|
|
34,635
|
|
34,831
|
|
(1)%
|
Utility Income
Taxes
|
|
77,334
|
|
69,101
|
|
12%
|
Operating
Income
|
|
144,194
|
|
125,723
|
|
15%
|
Other Income
(Expense), net
|
|
15,161
|
|
14,221
|
|
7%
|
Utility Interest
Charges
|
|
24,938
|
|
20,097
|
|
24%
|
Net Income
|
|
134,417
|
|
119,847
|
|
12%
|
Average Shares of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
74,884
|
|
71,977
|
|
4%
|
Diluted
|
|
75,333
|
|
72,278
|
|
4%
|
Earnings Per Share of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
$1.80
|
|
$1.67
|
|
8%
|
Diluted
|
|
$1.78
|
|
$1.66
|
|
7%
|
System Throughput -
Dekatherms
|
|
387,600
|
|
324,300
|
|
20%
|
Gas Customers Billed
in October
|
|
980
|
|
969
|
|
1%
|
System Average Degree
Days - Actual
|
|
3,336
|
|
2,668
|
|
25%
|
System Average Degree
Days - Normal
|
|
3,276
|
|
3,310
|
|
(1)%
|
Percent Normal Degree
Days
|
|
102%
|
|
81%
|
|
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,"
"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 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, regulated interstate
natural gas transportation and storage, and regulated 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