CHARLOTTE, N.C., March 9,
2016 /PRNewswire/ -- Piedmont Natural Gas (NYSE: PNY) today
announced results for its first fiscal quarter ended
January 31, 2016. For the quarter, the Company reported net
income of $97.8 million, or
$1.20 per diluted share, compared to
net income of $93 million, or
$1.18 per diluted share for the same
period in 2015. Adjusted for merger-related expenses incurred
during the Company's first quarter, net income was $104.8 million, or $1.29 per diluted share, increases of 13% and 9%,
respectively, over the prior year.
Piedmont Natural Gas Chairman, President, and CEO, Thomas E. Skains, commented on the results, "We
are pleased with our operating fundamentals and financial results
for the first quarter of the new year, even as we experienced
winter weather that was 21 percent warmer than normal and 25
percent warmer than last year. Adjusted for after-tax
merger-related expenses, net income increased 13 percent compared
to the same period last year. The margin stabilizing features of
our retail natural gas tariffs have proven once again to be
beneficial to both our customers and our shareholders. In addition,
our customer growth remains healthy with 4,700 gross customer
additions during the first quarter and our employees are focused on
profitable investments and disciplined expense control. All in all,
we are off to a good start in fiscal year 2016."
Margin for the three months ended January 31, 2016 was
$286.2 million, an increase of
$16.2 million from the prior year's
quarter. 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.
Operations and maintenance (O&M) expenses totaled
$71.3 million during the three months
ended January 31, 2016, an increase of $5.2 million from the same period in 2015. The
increase in O&M expenses for the three month period is
primarily due to higher equity incentive plan accruals, including
$4.3 million incremental expense from
the acceleration and payment of certain equity incentive awards in
connection with the Duke Energy acquisition, additional employees
and merit increases, and $1.5 million
in integration expenses related to the proposed Duke Energy
acquisition.
DIVIDEND INCREASED FOR THIRTY-EIGHTH CONSECUTIVE YEAR
The Board of Directors on March 9
approved an increase in the Company's quarterly dividend on Common
Stock. The new quarterly dividend of 34 cents per share will be payable on
April 15, 2016 to holders of record
at the close of business on March 25,
2016.
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.
Summary of
Operations
|
|
|
|
|
(in thousands except
per share amounts and degree days)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
January 31
|
|
% Increase
(Decrease)
|
|
|
2016
|
|
2015
|
|
|
|
(Unaudited)
|
|
|
Operating
Revenues
|
|
$
|
461,337
|
|
|
$
|
607,271
|
|
|
(24)
|
%
|
Cost of
Gas
|
|
175,088
|
|
|
337,201
|
|
|
(48)
|
%
|
Margin
|
|
286,249
|
|
|
270,070
|
|
|
6
|
%
|
Operations and
Maintenance Expenses
|
|
71,300
|
|
|
66,150
|
|
|
8
|
%
|
Depreciation
|
|
33,686
|
|
|
31,893
|
|
|
6
|
%
|
General
Taxes
|
|
9,922
|
|
|
9,997
|
|
|
(1)
|
%
|
Utility Income
Taxes
|
|
61,909
|
|
|
56,272
|
|
|
10
|
%
|
Operating
Income
|
|
109,432
|
|
|
105,758
|
|
|
3
|
%
|
Other Income
(Expense), net
|
|
5,426
|
|
|
4,931
|
|
|
10
|
%
|
Utility Interest
Charges
|
|
17,068
|
|
|
17,711
|
|
|
(4)
|
%
|
Net Income
|
|
97,790
|
|
|
92,978
|
|
|
5
|
%
|
|
|
|
|
|
|
|
Average Shares of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
80,963
|
|
|
78,620
|
|
|
3
|
%
|
Diluted
|
|
81,266
|
|
|
78,945
|
|
|
3
|
%
|
|
|
|
|
|
|
|
Earnings Per Share of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
$
|
1.21
|
|
|
$
|
1.18
|
|
|
3
|
%
|
Diluted
|
|
$
|
1.20
|
|
|
$
|
1.18
|
|
|
2
|
%
|
|
|
|
|
|
|
|
System Throughput -
Dekatherms
|
|
137,992
|
|
|
140,787
|
|
|
(2)
|
%
|
Gas Customers Billed
in January
|
|
1,038
|
|
|
1,023
|
|
|
1
|
%
|
System Average Degree
Days – Actual
|
|
1,455
|
|
|
1,945
|
|
|
(25)
|
%
|
System Average Degree
Days – Normal
|
|
1,840
|
|
|
1,838
|
|
|
—
|
%
|
Percent Normal Degree
Days
|
|
(21)
|
%
|
|
6
|
%
|
|
n/a
|
|
|
|
|
|
|
|
Non-GAAP
Reconciliation of Merger-Related Expenses
|
|
$ in thousands
except per share amounts
|
|
|
2016
|
|
|
GAAP net
income
|
$
|
97,790
|
|
After-tax
merger-related expenses
|
$
|
7,050
|
|
|
|
Adjusted net
income
|
$
|
104,840
|
|
Average basic shares
outstanding (in thousands)
|
80,963
|
|
Average diluted
shares outstanding (in thousands)
|
81,266
|
|
Adjusted basic
EPS
|
$
|
1.29
|
|
Adjusted diluted
EPS
|
$
|
1.29
|
|
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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SOURCE Piedmont Natural Gas