CHARLOTTE, N.C., Sept. 3, 2015 /PRNewswire/ -- Piedmont
Natural Gas (NYSE: PNY) today announced results for its third
fiscal quarter ended July 31, 2015. For the quarter, the
Company reported a seasonal loss of $8.3
million, or $(0.10) per
diluted share, compared to a seasonal loss of $7.3 million, or $(0.09) per diluted share for the same period in
2014.
For the nine months ended July 31, 2015, net income was
$151.1 million and diluted earnings
per share were $1.91, compared with
net income of $152.8 million and
diluted earnings per share of $1.96
for the same period in 2014.
Margin for the quarter was $111.6
million, an increase of $6.7
million from the prior year's quarter. The increase is
primarily due to rate adjustments in Tennessee and North
Carolina and customer growth. Margin for the nine months
ended July 31, 2015 was $607.3
million, an increase of $29.4
million from the prior year period. The increase in margin
is primarily attributable to rate adjustments in Tennessee and North
Carolina and customer growth, partially offset by lower
margin sales from secondary market activity.
Operations and maintenance expenses totaled $69.6 million during the third quarter of 2015,
an increase of $1.0 million from the
third quarter of 2014. Operations and maintenance expenses totaled
$207.2 million during the nine months
ended July 31, 2015, an increase of $7.7 million from the same period in 2014. The
increase in O&M expenses for both periods is primarily due to
increased contract labor, higher employee payroll and benefits, and
approved regulatory amortization, partially offset by a decrease in
bad debt expense.
Pre-tax income from Piedmont's
joint ventures increased 2% for the nine months ended July 31,
2015, compared to same period in 2014. The increase was primarily
due to higher capitalized interest associated with increased
capital expenditures for the Constitution Pipeline project as
development progresses, partially offset by a decrease in SouthStar
Energy's income, primarily from decreases in the value of hedged
derivatives and lower usage due to warmer weather, partially offset
by favorable margins in Georgia,
Illinois and Ohio.
Utility interest charges for the quarter were $16.7 million compared to $13.1 million for the same period in 2014.
Utility interest charges for the nine months ended July 31,
2015 were $52.5 million compared to
$35.8 million for the same period in
2014. The increase in utility interest charges for both periods is
primarily due to a decrease in capitalized interest recorded as
income and an increase in long-term debt outstanding in 2015, and
for the nine months, an increase in regulatory interest expense on
net amounts due to customers.
COMPANY ANNOUNCES QUARTERLY DIVIDEND
At its regular quarterly meeting of the Company's Board of
Directors on September 2, 2015, the
Board of Directors announced the declaration of a quarterly
dividend on Common Stock of 33 cents
per share, payable October 15, 2015,
to holders of record at the close of business on September 24, 2015.
FISCAL 2015 EARNINGS GUIDANCE REAFFIRMED
Piedmont Natural Gas reaffirms its fiscal year 2015 earnings
guidance of $1.82 to $1.92 per
diluted share.
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 Tuesday, September 8,
2015 at 10:00 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
|
|
July 31
|
|
% Increase
(Decrease)
|
|
|
2015
|
|
2014
|
|
|
|
(Unaudited)
|
|
|
Operating
Revenues
|
|
$
|
158,266
|
|
|
$
|
164,187
|
|
|
(4)
|
%
|
Cost of
Gas
|
|
46,694
|
|
|
59,340
|
|
|
(21)
|
%
|
Margin
|
|
111,572
|
|
|
104,847
|
|
|
6
|
%
|
Operations and
Maintenance Expenses
|
|
69,587
|
|
|
68,605
|
|
|
1
|
%
|
Depreciation
|
|
32,317
|
|
|
29,960
|
|
|
8
|
%
|
General
Taxes
|
|
11,532
|
|
|
9,352
|
|
|
23
|
%
|
Utility Income
Taxes
|
|
(7,097)
|
|
|
(6,324)
|
|
|
(12)
|
%
|
Operating
Income
|
|
5,233
|
|
|
3,254
|
|
|
61
|
%
|
Other Income
(Expense), net
|
|
3,181
|
|
|
2,527
|
|
|
26
|
%
|
Utility Interest
Charges
|
|
16,674
|
|
|
13,125
|
|
|
27
|
%
|
Net Income
|
|
(8,260)
|
|
|
(7,344)
|
|
|
(12)
|
%
|
|
|
|
|
|
|
|
Average Shares of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
79,039
|
|
|
78,185
|
|
|
1
|
%
|
Diluted
|
|
79,039
|
|
|
78,185
|
|
|
1
|
%
|
|
|
|
|
|
|
|
Earnings Per Share of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.10)
|
|
|
$
|
(0.09)
|
|
|
(11)
|
%
|
Diluted
|
|
$
|
(0.10)
|
|
|
$
|
(0.09)
|
|
|
(11)
|
%
|
|
|
|
|
|
|
|
System Throughput -
Dekatherms
|
|
104,914
|
|
|
86,767
|
|
|
21
|
%
|
Gas Customers Billed
in April
|
|
1,014
|
|
|
999
|
|
|
2
|
%
|
System Average Degree
Days – Actual
|
|
12
|
|
|
33
|
|
|
(64)
|
%
|
System Average Degree
Days – Normal
|
|
47
|
|
|
49
|
|
|
(4)
|
%
|
Percent Normal Degree
Days
|
|
(74)
|
%
|
|
(33)
|
%
|
|
n/a
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
July 31
|
|
% Increase
(Decrease)
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,190,462
|
|
|
$
|
1,284,167
|
|
|
(7)
|
%
|
Cost of
Gas
|
|
583,199
|
|
|
706,285
|
|
|
(17)
|
%
|
Margin
|
|
607,263
|
|
|
577,882
|
|
|
5
|
%
|
Operations and
Maintenance Expenses
|
|
207,162
|
|
|
199,437
|
|
|
4
|
%
|
Depreciation
|
|
95,900
|
|
|
87,947
|
|
|
9
|
%
|
General
Taxes
|
|
32,504
|
|
|
27,958
|
|
|
16
|
%
|
Utility Income
Taxes
|
|
85,583
|
|
|
89,668
|
|
|
(5)
|
%
|
Operating
Income
|
|
186,114
|
|
|
172,872
|
|
|
8
|
%
|
Other Income
(Expense), net
|
|
17,472
|
|
|
15,650
|
|
|
12
|
%
|
Utility Interest
Charges
|
|
52,466
|
|
|
35,754
|
|
|
47
|
%
|
Net Income
|
|
151,120
|
|
|
152,768
|
|
|
(1)
|
%
|
|
|
|
|
|
|
|
Average Shares of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
78,826
|
|
|
77,715
|
|
|
1
|
%
|
Diluted
|
|
79,175
|
|
|
78,027
|
|
|
1
|
%
|
|
|
|
|
|
|
|
Earnings Per Share of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
$
|
1.92
|
|
|
$
|
1.97
|
|
|
(3)
|
%
|
Diluted
|
|
1.91
|
|
|
$
|
1.96
|
|
|
(3)
|
%
|
|
|
|
|
|
|
|
System Throughput -
Dekatherms
|
|
370,834
|
|
|
327,128
|
|
|
13
|
%
|
Gas Customers Billed
in April
|
|
1,014
|
|
|
999
|
|
|
2
|
%
|
System Average Degree
Days - Actual
|
|
3,279
|
|
|
3,391
|
|
|
(3)
|
%
|
System Average Degree
Days - Normal
|
|
3,062
|
|
|
3,070
|
|
|
—
|
%
|
Percent Normal Degree
Days
|
|
7
|
%
|
|
10
|
%
|
|
n/a
|
Forward-Looking Statements
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 risks and uncertainties that could cause actual
results to differ materially from those projected in the
statements. Factors that may make the actual results differ
materially 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, operational interruptions to our gas distribution and
transmission activities, change in number of outstanding shares,
cybersecurity breaches or failure of technology systems, inability
to complete necessary or desirable pipeline expansion or
infrastructure projects, costs of providing pension benefits, 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," "may," "should," "could,"
"assume," "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/.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/piedmont-natural-gas-reports-third-quarter-2015-results-300137574.html
SOURCE Piedmont Natural Gas