CHARLOTTE, N.C., Nov. 3, 2014 /PRNewswire/ -- Piedmont Natural Gas
(NYSE: PNY) is initiating earnings guidance in the range of
$1.82 - $1.92 per diluted share for
its fiscal year ending October 31,
2015. This guidance for fiscal year 2015 reflects the
following assumptions:
- Higher utility margin due to:
- The full year impact of the 2013 North Carolina rate case
settlement which went into effect on January
1, 2014;
- Expected margin increases under the Integrity Management Rider
(IMR) in North Carolina effective
February 1, 2015 and the IMR in
Tennessee, effective January 1, 2015 due to substantial system
integrity capital investments.
- Gross utility customer additions of 1.6% in the Company's
three state market area;
- Partially offset by lower wholesale secondary marketing margin
due to an assumption of normal weather for the winter of 2014-2015
as well as a reduction in margin in South
Carolina under the annual rate stabilization
adjustment.
- Operations and Maintenance (O&M) expense increases of less
than 2% from fiscal year 2014 due primarily to higher utility
operations expense to support pipeline integrity, safety and
compliance programs.
- Higher depreciation expense due to additional utility plant in
service.
- Increased contributions from joint venture equity method
investments due mostly to increased allowance for funds used during
construction (AFUDC) from the Constitution Pipeline and Atlantic
Coast Pipeline projects.
- Utility AFUDC of about $13
million reflecting forecasted utility capital expenditure
levels and project schedules.
- Utility capital expenditures in the range of $450 - $550 million, including approximately
$250 million related to system
integrity projects, as well as an additional $75-$125 million to fund the Company's joint
venture equity interest in the Constitution Pipeline and Atlantic
Coast Pipeline projects.
- Higher interest expense primarily due to the full-year impact
of the Company's $250 million
long-term debt issuance in fiscal year 2014.
- Issuance of both new long-term debt and equity in fiscal year
2015 to maintain the Company's long term targeted capital ratios of
50% - 60% total debt and 40% - 50% 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