CHARLOTTE, N.C., Dec. 23,
2015 /PRNewswire/ -- Piedmont Natural Gas (NYSE: PNY) today
announced results for its fiscal year ended October 31, 2015.
For the year, the Company reported net income of $137 million, or $1.73 per diluted share, compared with net income
of $143.8 million, or $1.84 per diluted share for 2014. Adjusted
for merger-related expenses incurred during the Company's fourth
quarter, net income and earnings per diluted share were
$148 million and $1.87, respectively, increases of 2.9% and 1.6%
over the prior year.
Commenting on the Company's fiscal year 2015 results, Piedmont
Chairman, President and Chief Executive Officer, Thomas E. Skains said, "We are pleased with our
solid financial and operating performance in 2015. During the
year, we experienced strong customer growth through the addition of
slightly more than 17,000 new customers. This is an increase
of approximately 5% compared to our prior year growth rate and
reflects an overall customer addition growth rate of 1.7%. We
also made investments of approximately $485
million in support of utility customer growth and system
infrastructure, integrity management programs, and non-utility
joint venture opportunities." Skains continued, "In
addition to these results, our customer service performance in 2015
was outstanding and we achieved national recognition in residential
customer satisfaction and utility brand trust surveys. As we
look ahead to 2016 and the closing of our merger agreement with
Duke Energy, we are excited about the future opportunities for our
customers and our employees in the new Piedmont Natural Gas."
System throughput in 2015 totaled 471.5 million dekatherms,
compared with 410.7 million dekatherms in 2014. The increase was
largely due to a 30 percent increase in volumes delivered to power
generation customers. Overall, weather during 2015 was 6 percent
colder than normal and 3 percent warmer than 2014.
Margin was $727.3 million, an
increase of $37.1 million from the
prior year. The increase in margin is primarily attributable to
integrity management rider rate adjustments in North Carolina and Tennessee as well as customer growth in all
three states, partially offset by lower margin sales from secondary
market transactions.
Operations and maintenance expenses increased $23.6 million from the previous year to a total
of $294.5 million. This
includes $15.8 million related to the
proposed Duke Energy acquisition, $8.6
million of which is in contract labor and $7.2 million in equity plan accruals from a
higher stock price at October 31,
2015. The remaining increase in O&M was primarily due to
other additional contract labor, employee benefits, payroll and
increased regulatory amortization, partially offset by lower bad
debt expense.
Utility interest charges were $68.6
million in 2015 compared to $54.7
million in 2014. The increase was primarily due to an
increase in long-term debt outstanding in the current year and a
decrease in capitalized interest recorded as income.
Pre-tax income from equity method investments was $34.5 million in 2015 compared with $32.8 million in 2014. The increase was primarily
due to higher capitalized interest associated with increased
capital expenditures for the Constitution pipeline project,
partially offset by a decrease in SouthStar's income from lower
value of hedged derivatives and less usage in Georgia and Illinois due to warmer weather, partially
offset by favorable margins in Georgia, Illinois and Ohio.
FISCAL 2016 EARNINGS GUIDANCE REAFFIRMED
Piedmont Natural Gas reaffirms its fiscal year 2016 earnings
guidance of $1.92 to $2.02 per
diluted share before any merger-related expenses.
DIVIDEND
At the Company's regular quarterly meeting of its Board of
Directors on December 11, 2015, a quarterly dividend on Common
Stock of $.33 cents per share,
payable on January 15, 2016 to holders of record at the close
of business on December 24, 2015.
Summary of
Operations
|
|
|
|
|
(in thousands except
per share amounts and degree days)
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
October
31
|
|
% Increase
|
|
|
2015
|
|
2014
|
|
(Decrease)
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,371,718
|
|
|
$
|
1,469,988
|
|
|
(7)
|
%
|
Cost of
Gas
|
|
644,424
|
|
|
779,780
|
|
|
(17)
|
%
|
Margin
|
|
727,294
|
|
|
690,208
|
|
|
5
|
%
|
Operations and
Maintenance
|
|
294,517
|
|
|
270,877
|
|
|
9
|
%
|
Depreciation
|
|
128,704
|
|
|
118,996
|
|
|
8
|
%
|
General
Taxes
|
|
42,110
|
|
|
37,294
|
|
|
13
|
%
|
Utility Income
Taxes
|
|
76,934
|
|
|
83,176
|
|
|
(8)
|
%
|
Operating
Income
|
|
185,029
|
|
|
179,865
|
|
|
3
|
%
|
Other Income
(Expense), net
|
|
20,613
|
|
|
18,622
|
|
|
11
|
%
|
Utility Interest
Charges
|
|
68,631
|
|
|
54,686
|
|
|
26
|
%
|
Net Income
|
|
137,011
|
|
|
143,801
|
|
|
(5)
|
%
|
|
|
|
|
|
|
|
Average Shares of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
78,942
|
|
|
77,883
|
|
|
1
|
%
|
Diluted
|
|
79,231
|
|
|
78,193
|
|
|
1
|
%
|
Earnings Per Share of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
$
|
1.74
|
|
|
$
|
1.85
|
|
|
(6)
|
%
|
Diluted
|
|
$
|
1.73
|
|
|
$
|
1.84
|
|
|
(6)
|
%
|
System Throughput -
Dekatherms
|
|
471,523
|
|
|
410,702
|
|
|
15
|
%
|
Gas Customers Billed
in October
|
|
1,012
|
|
|
993
|
|
|
2
|
%
|
System Average Degree
Days Actual
|
|
3,449
|
|
|
3,543
|
|
|
(3)
|
%
|
System Average Degree
Days Normal
|
|
3,257
|
|
|
3,265
|
|
|
—
|
%
|
Percent Normal Degree
Days
|
|
106
|
%
|
|
109
|
%
|
|
n/a
|
|
Non-GAAP
Reconciliation of Merger-Related Expenses
$ in
thousands
|
|
|
|
|
2015
|
GAAP net
income
|
$
137,011
|
After-tax merger
related expenses
|
$
10,910
|
|
|
Adjusted net
income
|
$
147,921
|
Average basic shares
outstanding (in thousands)
|
78,942
|
Average diluted
shares outstanding (in thousands)
|
79,231
|
Adjusted basic
EPS
|
$
1.87
|
Adjusted diluted
EPS
|
$
1.87
|
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/.
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visit:http://www.prnewswire.com/news-releases/piedmont-natural-gas-reports-results-for-fiscal-year-2015-300196782.html
SOURCE Piedmont Natural Gas