CHARLOTTE, N.C., Sept. 5,
2014 /PRNewswire/ -- Piedmont Natural Gas (NYSE: PNY) today
announced results for its third fiscal quarter ended July 31,
2014. For the quarter, the Company reported a seasonal loss of
$7.3 million, or $.09 per diluted share, compared to a loss of
$2.3 million, or $.03 per diluted share for the same period in
2013. For the nine months ended July 31, 2014, net
income was $152.8 million and diluted
earnings per share were $1.96,
compared with net income of $139.4
million and diluted earnings per share of $1.86 for the same period in
2013.
Margin for the quarter was $104.8
million, an increase of $7.8
million from the prior year's quarter. Margin for the nine
months ended July 31, 2014 was $577.9
million, an increase of $65.4
million from the prior year period. The increase in margin
is primarily attributable to customer growth, regulatory rate
adjustments and increased transportation services in the power
generation markets, and in the nine-month period, supplemented by
higher margin sales from secondary market activity related to
colder-than-normal weather and increased wholesale market
volatility and increased volume deliveries in the retail markets
due to colder weather.
Operations and maintenance expenses totaled $68.6 million during the third quarter of 2014,
an increase of $5.7 million from the
third quarter of 2013. Operations and maintenance expenses totaled
$199.4 million during the nine months
ended July 31, 2014, an increase of $15.6 million from the same period in 2013. The
increase in O&M expenses for both periods is due to increases
in payroll primarily from additional employees and incentive
accruals, contract labor, approved amortization of regulatory
assets and a higher level of bad debt from colder weather and
higher customer consumption this past winter.
Pre-tax income from Piedmont's
energy-related joint ventures increased 38% for the quarter and 26%
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 markets in Illinois, partially offset by higher operating
and general and administrative expenses.
Utility interest charges for the quarter were $13.1 million compared to $5.7 million for the same period in 2013.
Utility interest charges for the nine months ended July 31,
2014 were $35.8 million compared to
$13.5 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 this year, a decrease in AFUDC as a result of lower
utility project construction expenditures compared to the prior
year and an increase in interest expense on amounts due to
customers.
Company Announces Quarterly Dividend
At its regular quarterly meeting of the Company's Board of
Directors, the Board of Directors today announced the declaration
of a quarterly dividend on Common Stock of 32 cents per share, payable on October 15, 2014 to holders of record at the
close of business on September 24,
2014.
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 third-quarter earnings release, you are
invited to listen to the conference call that will broadcast live
over the Internet on Monday, September 8,
2014 at 10 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.
Summary of
Operations
|
|
|
|
|
|
|
(in thousands except
per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
July 31
|
|
|
% Increase
(Decrease)
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
164,187
|
|
|
$
|
162,943
|
|
|
1%
|
Cost of
Gas
|
|
59,340
|
|
|
65,943
|
|
|
(10)%
|
Margin
|
|
104,847
|
|
|
97,000
|
|
|
8%
|
Operations and
Maintenance Expenses
|
|
68,605
|
|
|
62,950
|
|
|
9%
|
Depreciation
|
|
29,960
|
|
|
28,599
|
|
|
5%
|
General
Taxes
|
|
9,352
|
|
|
8,307
|
|
|
13%
|
Utility Income
Taxes
|
|
(6,324)
|
|
|
(3,447)
|
|
|
(83)%
|
Operating
Income
|
|
3,254
|
|
|
591
|
|
|
451%
|
Other Income
(Expense), net
|
|
2,527
|
|
|
2,819
|
|
|
(10)%
|
Utility Interest
Charges
|
|
13,125
|
|
|
5,703
|
|
|
130%
|
Net Income
|
|
(7,344)
|
|
|
(2,293)
|
|
|
(220)%
|
|
|
|
|
|
|
|
Average Shares of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
78,185
|
|
|
75,774
|
|
|
3%
|
Diluted
|
|
78,185
|
|
|
75,774
|
|
|
3%
|
Earnings Per Share of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.09)
|
|
|
$
|
(0.03)
|
|
|
200%
|
Diluted
|
|
$
|
(0.09)
|
|
|
$
|
(0.03)
|
|
|
200%
|
System Throughput -
Dekatherms
|
|
86,767
|
|
|
83,112
|
|
|
4%
|
Gas Customers Billed
in July
|
|
998,850
|
|
|
985,034
|
|
|
1%
|
System Average Degree
Days - Actual
|
|
33
|
|
|
77
|
|
|
(57)%
|
System Average Degree
Days - Normal
|
|
49
|
|
|
49
|
|
|
—%
|
Percent Normal Degree
Days
|
|
(33)%
|
|
|
57%
|
|
|
n/a
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
July 31
|
|
|
% Increase
(Decrease)
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,284,167
|
|
|
$
|
1,078,229
|
|
|
19%
|
Cost of
Gas
|
|
706,285
|
|
|
565,749
|
|
|
25%
|
Margin
|
|
577,882
|
|
|
512,480
|
|
|
13%
|
Operations and
Maintenance Expenses
|
|
199,437
|
|
|
183,869
|
|
|
8%
|
Depreciation
|
|
87,947
|
|
|
82,168
|
|
|
7%
|
General
Taxes
|
|
27,958
|
|
|
26,903
|
|
|
4%
|
Utility Income
Taxes
|
|
89,668
|
|
|
81,232
|
|
|
10%
|
Operating
Income
|
|
172,872
|
|
|
138,308
|
|
|
25%
|
Other Income
(Expense), net
|
|
15,650
|
|
|
14,594
|
|
|
7%
|
Utility Interest
Charges
|
|
35,754
|
|
|
13,482
|
|
|
165%
|
Net Income
|
|
152,768
|
|
|
139,420
|
|
|
10%
|
|
|
|
|
|
|
|
Average Shares of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
77,715
|
|
|
74,521
|
|
|
4%
|
Diluted
|
|
78,027
|
|
|
74,987
|
|
|
4%
|
Earnings Per Share of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
$
|
1.97
|
|
|
$
|
1.87
|
|
|
5%
|
Diluted
|
|
1.96
|
|
|
$
|
1.86
|
|
|
5%
|
System Throughput -
Dekatherms
|
|
327,128
|
|
|
299,943
|
|
|
9%
|
Gas Customers Billed
in July
|
|
998,850
|
|
|
985,034
|
|
|
1%
|
System Average Degree
Days - Actual
|
|
3,391
|
|
|
3,186
|
|
|
6%
|
System Average Degree
Days - Normal
|
|
3,070
|
|
|
3,078
|
|
|
—%
|
Percent Normal Degree
Days
|
|
10%
|
|
|
4%
|
|
|
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