CHARLOTTE, N.C., June 6, 2014 /PRNewswire/ -- Piedmont Natural Gas
(NYSE: PNY) today announced results for its second fiscal quarter
ended April 30, 2014. For the
quarter, the Company reported net income of $62.5 million, or $.80 per diluted share, compared to net income of
$55.8 million, or $.74 per diluted share for the same period in
2013.
For the six months ended April 30,
2014, net income was $160.1
million and diluted earnings per share were $2.06, compared with net income of $141.7 million and diluted earnings per share of
$1.91 for the same period in
2013.
Margin for the quarter was $211.5
million, an increase of $27.7
million from the prior year's quarter. Margin for the six
months ended April 30, 2014 was
$473 million, an increase of
$57.6 million from the prior year
period. The increase in margin is primarily attributable to
customer growth, regulatory rate adjustments, increased
transportation services in the power generation markets, and higher
margin sales from secondary market activity.
Operations and maintenance expenses totaled $70.2 million during the second quarter of 2014,
an increase of $5.2 million from the
same period in 2013. Operations and maintenance expenses totaled
$130.8 million during the six months
ended April 30, 2014, an increase of
$9.9 million from the same period in
2013. The increase in O&M expenses is primarily due to
increases in payroll and approved amortization of regulatory
assets, partially offset by a decrease in employee benefits
expense.
Pre-tax income from Piedmont's
joint ventures increased 15% for the quarter and 24% percent for
the year-to-date compared to the same period in 2013 primarily due
to improved performance at SouthStar Energy from the expansion into
the unregulated retail natural gas markets in Illinois and favorable customer mix and price
spreads in the Georgia
markets.
Utility interest charges for the quarter were $12 million compared to $3.3 million for the same period in 2013.
Utility interest charges for the six months ended April 30, 2014 were $22.6
million compared to $7.8
million for the same period in 2013. The increase is
primarily due to an increase in interest expense on long-term debt
primarily due to higher amounts outstanding in 2014 and a decrease
in AFUDC as a result of lower utility project construction
expenditures compared to the prior year.
REVISED FISCAL 2014 EARNINGS GUIDANCE REAFFIRMED
Piedmont Natural Gas reaffirms its revised fiscal year 2014
earnings guidance of $1.80 to $1.90
per diluted share, with emphasis at the upper end of the range.
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 Friday, June 6,
2014 at 11:30 a.m. Eastern Daylight
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.
Summary of
Operations
|
(in thousands except
per share amounts and degree days)
|
Three Months
Ended
|
|
April 30
|
|
% Increase
|
|
|
2014
|
|
2013
|
|
(Decrease)
|
|
|
(Unaudited)
|
|
|
|
|
Operating
Revenues
|
|
$
|
462,247
|
|
|
$
|
399,411
|
|
|
|
16%
|
Cost of
Gas
|
|
|
250,724
|
|
|
|
215,555
|
|
|
|
16%
|
Margin
|
|
|
211,523
|
|
|
|
183,856
|
|
|
|
15%
|
Operations and
Maintenance Expenses
|
|
|
70,193
|
|
|
|
65,037
|
|
|
|
8%
|
Depreciation
|
|
|
28,344
|
|
|
|
26,867
|
|
|
|
6%
|
General
Taxes
|
|
|
9,497
|
|
|
|
9,068
|
|
|
|
5%
|
Utility Income
Taxes
|
|
|
36,190
|
|
|
|
31,380
|
|
|
|
15%
|
Operating
Income
|
|
|
67,299
|
|
|
|
51,504
|
|
|
|
31%
|
Other Income
(Expense), net
|
|
|
7,268
|
|
|
|
7,608
|
|
|
|
(5%)
|
Utility Interest
Charges
|
|
|
12,027
|
|
|
|
3,322
|
|
|
|
262%
|
Net Income
|
|
|
62,540
|
|
|
|
55,790
|
|
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares of
Common Stock:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
77,982
|
|
|
|
75,463
|
|
|
|
3%
|
Diluted
|
|
|
78,291
|
|
|
|
75,904
|
|
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning Per Share of
Common Stock:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
.80
|
|
|
$
|
.74
|
|
|
|
8%
|
Diluted
|
|
$
|
.80
|
|
|
$
|
.74
|
|
|
|
8%
|
System Throughput —
Dekatherms
|
|
|
103,222
|
|
|
|
108,884
|
|
|
|
(5%)
|
Gas Customers Billed
in January
|
|
|
1,014
|
|
|
|
1,000
|
|
|
|
1%
|
System Average Degree
Days — Actual
|
|
|
1,294
|
|
|
|
1,418
|
|
|
|
(9%)
|
System Average Degree
Days — Normal
|
|
|
1,178
|
|
|
|
1,180
|
|
|
|
-%
|
Percent Normal Degree
Days
|
|
|
110%
|
|
|
|
120%
|
|
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
April 30
|
|
% Increase
|
|
|
2014
|
|
2013
|
|
(Decrease)
|
|
|
(Unaudited)
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,119,980
|
|
|
$
|
915,286
|
|
|
|
22%
|
Cost of
Gas
|
|
|
646,945
|
|
|
|
499,806
|
|
|
|
29%
|
Margin
|
|
|
473,035
|
|
|
|
415,480
|
|
|
|
14%
|
Operations and
Maintenance Expenses
|
|
|
130,832
|
|
|
|
120,919
|
|
|
|
8%
|
Depreciation
|
|
|
57,987
|
|
|
|
53,569
|
|
|
|
8%
|
General
Taxes
|
|
|
18,606
|
|
|
|
18,596
|
|
|
|
-%
|
Utility Income
Taxes
|
|
|
95,992
|
|
|
|
84,679
|
|
|
|
13%
|
Operating
Income
|
|
|
169,618
|
|
|
|
137,717
|
|
|
|
23%
|
Other Income
(Expense), net
|
|
|
13,123
|
|
|
|
11,775
|
|
|
|
11%
|
Utility Interest
Charges
|
|
|
22,629
|
|
|
|
7,779
|
|
|
|
191%
|
Net Income
|
|
|
160,112
|
|
|
|
141,713
|
|
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares of
Common Stock:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
77,477
|
|
|
|
73,884
|
|
|
|
5%
|
Diluted
|
|
|
77,802
|
|
|
|
74,301
|
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning Per Share of
Common Stock:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.07
|
|
|
$
|
1.92
|
|
|
|
8%
|
Diluted
|
|
$
|
2.06
|
|
|
$
|
1.91
|
|
|
|
8%
|
System Throughput —
Dekatherms
|
|
|
240,361
|
|
|
|
216,832
|
|
|
|
11%
|
Gas Customers Billed
in January
|
|
|
1,014
|
|
|
|
1,000
|
|
|
|
1%
|
System Average Degree
Days — Actual
|
|
|
3,358
|
|
|
|
3,109
|
|
|
|
8%
|
System Average Degree
Days — Normal
|
|
|
3,021
|
|
|
|
3,029
|
|
|
|
-%
|
Percent Normal Degree
Days
|
|
|
111%
|
|
|
|
103%
|
|
|
|
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," "may,"
"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