CHARLOTTE, N.C., June 5, 2015 /PRNewswire/ -- Piedmont Natural Gas
(NYSE: PNY) today announced results for its second fiscal quarter
ended April 30, 2015. For the quarter, the Company reported
net income of $66.4 million, or
$.84 per diluted share, compared to a
net income of $62.5 million, or
$0.80 per diluted share for the same
period in 2014.
For the six months ended April 30, 2015, net income was
$159.4 million and diluted earnings
per share were $2.02, compared with
net income of $160.1 million and
diluted earnings per share of $2.06
for the same period in 2014.
Margin for the quarter was $225.6
million, an increase of $14.1
million from the prior year's quarter. The increase is
primarily due to integrity management rider (IMR) rate adjustments
in Tennessee and North Carolina, customer growth in all three
states and higher margin sales and volumes in secondary market
activity. Margin for the six months ended April 30, 2015 was
$495.7 million, an increase of
$22.7 million from the prior year
period. The increase is primarily attributable to the 2014 general
rate case in North Carolina, IMR
rate adjustments in Tennessee and
North Carolina and customer growth
in all three states, partially offset by lower secondary
market margin sales and lower industrial customer margin from
changes in cost allocation and rate design under the North Carolina general rate case.
Operations and maintenance expenses totaled $71.4 million during the second quarter of 2015,
an increase of $1.2 million from the
second quarter of 2014. Operations and maintenance expenses totaled
$137.6 million during the six months
ended April 30, 2015, an increase of $6.7 million from the same period in 2014. The
increase for O&M expenses for the quarter is primarily due to
higher employee benefit expenses and the increase for the six month
period is primarily due to increased contract labor, higher
employee benefits, and approved regulatory asset amortizations.
Pre-tax income from Piedmont's
joint ventures increased 10.3% for the quarter compared to same
period in 2014 primarily due to an increase in Constitution
Pipeline's income from higher capitalized interest associated with
greater capital expenditures for the project. Pre-tax income from
Piedmont's joint ventures
decreased 0.8% for the six month period primarily due to a decrease
in SouthStar Energy's income from decreases in the value of hedged
derivatives, partially offset by an increase in Constitution
Pipeline's income from higher capitalized interest associated with
increased capital expenditures for the project.
Utility interest charges for the quarter were $18.1 million compared to $12 million for the same period in 2014. Utility
interest charges for the six month period were $35.8 million compared to $22.6 million for the same period in 2014. The
increase in utility interest charges for both periods is primarily
due to a decrease in the allowance for funds used during
construction (AFUDC) as a result of lower utility project
construction expenditures compared to prior periods, an increase in
interest expense on long-term debt primarily due to higher amounts
of debt outstanding in 2015, and an increase in interest expense on
higher amounts due to customers in 2015.
DIVIDEND DECLARED
At the Company's regular quarterly meeting of its Board of
Directors held today, a quarterly dividend on Common Stock of
33 cents per share was declared,
payable on July 15, 2015 to holders
of record at the close of business on June
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 second-quarter earnings release, you are
invited to listen to the conference call that will broadcast live
over the Internet on Monday, June 8,
2015 at 9:30 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
|
|
April 30
|
|
% Increase
(Decrease)
|
|
|
2015
|
|
2014
|
|
|
|
(Unaudited)
|
|
|
Operating
Revenues
|
|
$
|
424,924
|
|
|
$
|
462,247
|
|
|
(8)%
|
|
Cost of
Gas
|
|
199,303
|
|
|
250,724
|
|
|
(21)%
|
|
Margin
|
|
225,621
|
|
|
211,523
|
|
|
7
|
%
|
Operations and
Maintenance Expenses
|
|
71,424
|
|
|
70,193
|
|
|
2
|
%
|
Depreciation
|
|
31,689
|
|
|
28,344
|
|
|
12
|
%
|
General
Taxes
|
|
10,976
|
|
|
9,497
|
|
|
16
|
%
|
Utility Income
Taxes
|
|
36,409
|
|
|
36,190
|
|
|
1
|
%
|
Operating
Income
|
|
75,123
|
|
|
67,299
|
|
|
12
|
%
|
Other Income
(Expense), net
|
|
9,360
|
|
|
7,268
|
|
|
29
|
%
|
Utility Interest
Charges
|
|
18,081
|
|
|
12,027
|
|
|
50
|
%
|
Net Income
|
|
66,402
|
|
|
62,540
|
|
|
6
|
%
|
|
|
|
|
|
|
|
Average Shares of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
78,818
|
|
|
77,982
|
|
|
1
|
%
|
Diluted
|
|
79,115
|
|
|
78,291
|
|
|
1
|
%
|
|
|
|
|
|
|
|
Earnings Per Share of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
$
|
0.84
|
|
|
$
|
0.80
|
|
|
5
|
%
|
Diluted
|
|
$
|
0.84
|
|
|
$
|
0.80
|
|
|
5
|
%
|
|
|
|
|
|
|
|
System Throughput -
Dekatherms
|
|
125,132
|
|
|
103,222
|
|
|
21
|
%
|
Gas Customers Billed
in April
|
|
1,028
|
|
|
1,014
|
|
|
1
|
%
|
System Average Degree
Days – Actual
|
|
1,322
|
|
|
1,294
|
|
|
2
|
%
|
System Average Degree
Days – Normal
|
|
1,176
|
|
|
1,178
|
|
|
—
|
%
|
Percent Normal Degree
Days
|
|
12
|
%
|
|
10
|
%
|
|
n/a
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
April 30
|
|
% Increase
(Decrease)
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,032,196
|
|
|
$
|
1,119,980
|
|
|
(8)%
|
|
Cost of
Gas
|
|
536,505
|
|
|
646,945
|
|
|
(17)%
|
|
Margin
|
|
495,691
|
|
|
473,035
|
|
|
5
|
%
|
Operations and
Maintenance Expenses
|
|
137,574
|
|
|
130,832
|
|
|
5
|
%
|
Depreciation
|
|
63,583
|
|
|
57,987
|
|
|
10
|
%
|
General
Taxes
|
|
20,972
|
|
|
18,606
|
|
|
13
|
%
|
Utility Income
Taxes
|
|
92,680
|
|
|
95,992
|
|
|
(3)%
|
|
Operating
Income
|
|
180,882
|
|
|
169,618
|
|
|
7
|
%
|
Other Income
(Expense), net
|
|
14,291
|
|
|
13,123
|
|
|
9
|
%
|
Utility Interest
Charges
|
|
35,793
|
|
|
22,629
|
|
|
58
|
%
|
Net Income
|
|
159,380
|
|
|
160,112
|
|
|
—
|
%
|
|
|
|
|
|
|
|
Average Shares of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
78,717
|
|
|
77,477
|
|
|
2
|
%
|
Diluted
|
|
79,048
|
|
|
77,802
|
|
|
2
|
%
|
|
|
|
|
|
|
|
Earnings Per Share of
Common Stock:
|
|
|
|
|
|
|
Basic
|
|
$
|
2.02
|
|
|
$
|
2.07
|
|
|
(2)%
|
|
Diluted
|
|
2.02
|
|
|
$
|
2.06
|
|
|
(2)%
|
|
|
|
|
|
|
|
|
System Throughput -
Dekatherms
|
|
265,920
|
|
|
240,361
|
|
|
11
|
%
|
Gas Customers Billed
in April
|
|
1,028
|
|
|
1,014
|
|
|
1
|
%
|
System Average Degree
Days - Actual
|
|
3,267
|
|
|
3,358
|
|
|
(3)%
|
|
System Average Degree
Days - Normal
|
|
3,015
|
|
|
3,021
|
|
|
—
|
%
|
Percent Normal Degree
Days
|
|
8
|
%
|
|
11
|
%
|
|
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-second-quarter-2015-results-300095032.html
SOURCE Piedmont Natural Gas