CHARLOTTE, N.C., June 5 /PRNewswire-FirstCall/ -- Charlotte-based Piedmont Natural Gas today announced results for its second quarter ended April 30, 2009. For the quarter, the Company's net income was $53.5 million and diluted earnings per share were $.73 compared with net income of $48.6 million and diluted earnings per share of $.66 for the same period in 2008.
For the six months ended April 30, 2009, net income was $134.4 million and diluted earnings per share were $1.83, compared with net income of $130.9 million and diluted earnings per share of $1.78 for the same period in 2008.
Utility margin increased by $8.7 million for the second quarter and by $2.3 million for the six months ended April 30, 2009 compared to the same periods in 2008. The increase in margin is due to period to period changes in adjustments to regulatory gas cost accounts, an increase in rates attributable to the Company's 2008 general rate case in North Carolina, and growth in the Company's residential and commercial customer base. These increases were partially offset by decreases in margin from industrial customers as a result of lower volume deliveries due to the economic downturn. Operations and maintenance expenses for the quarter remained flat compared with the same period in 2008 and continue to be positively impacted from the Company's ongoing focus on its operating cost structures and process improvement initiatives.
Pre-tax income from equity method investments was $17.8 million for the three months ended April 30, 2009, as compared with $17.7 million for the same period in 2008. For the six months ended April 30, pre-tax income from equity method investments was $27.6 million compared with $26.4 million for the same period in 2008. The fiscal year-to-date increase is primarily due to stronger results from the Company's interest in SouthStar Energy.
Chairman, President and Chief Executive Officer Thomas E. Skains commented on the Company's results, "We are pleased with our operating performance through the first two quarters of this year. Despite a weakened economy and softness in residential and commercial new construction activity, we believe our continued emphasis on business process improvements, cost management programs, and quality customer service is sound and is delivering long-term value to our shareholders."
Fiscal 2009 Earnings Guidance Reaffirmed
Piedmont Natural Gas reaffirms its fiscal 2009 guidance range of $1.45 to $1.60 per diluted share. The Company's earnings guidance includes management's assessment of overall market conditions, customer growth rates and demand, ongoing business process improvement and cost management programs, capital expenditures and long-term financing requirements. Changes in market conditions which the Company cannot reasonably anticipate could cause earnings for the year to differ from this guidance.
Conference Call
In conjunction with this second-quarter earnings release, you are invited to listen to the conference call that will be broadcast live over the Internet on Tuesday, June 9, 2009, at 2:30 p.m. Eastern Time, hosted by Chairman, President and Chief Executive Officer Thomas E. Skains. Log on to the web at http://www.piedmontng.com/ and click on Investors, then on Presentations. The conference call will be archived on the Presentations page of the website within the Investors section.
Piedmont Natural Gas Summary of Operations (in thousands except per share amounts and degree days) Three Months Ended April 30 ------------------ -------- % Increase 2009 2008 (Decrease) ---- ---- ---------- Unaudited Operating Revenues $455,432 $634,178 -28% Cost of Gas 285,479 472,897 -40% Margin 169,953 161,281 5% Operations and Maintenance Expenses 53,352 53,282 -% Depreciation 24,306 22,893 6% General Taxes 8,657 8,407 3% Utility Income Taxes 28,287 24,877 14% Operating Income 55,351 51,822 7% Other Income (Expense), net 10,086 10,315 -2% Utility Interest Charges 11,912 13,513 -12% Net Income 53,525 48,624 10% Average Shares of Common Stock: Basic 73,239 73,418 -% Diluted 73,514 73,677 -% Earnings Per Share of Common Stock: Basic $0.73 $0.66 11% Diluted $0.73 $0.66 11% System Throughput - Dekatherms 57,453 54,462 5% Gas Customers Billed in April 965 963 -% System Average Degree Days -- Actual 1,204 1,163 4% System Average Degree Days -- Normal 1,212 1,226 -1% Percent Normal Degree Days 99% 95% - Six Months Ended April 30 ---------------- -------- % Increase 2009 2008 (Decrease) ---- ---- ---------- Unaudited Operating Revenues $1,235,076 $1,422,648 -13% Cost of Gas 844,440 1,034,341 -18% Margin 390,636 388,307 1% Operations and Maintenance Expenses 104,077 105,859 -2% Depreciation 48,448 45,598 6% General Taxes 17,394 17,153 1% Utility Income Taxes 77,235 75,938 2% Operating Income 143,482 143,759 -% Other Income (Expense), net 15,844 15,785 -% Utility Interest Charges 24,925 28,651 -13% Net Income 134,401 130,893 3% Average Shares of Common Stock: Basic 73,280 73,348 -% Diluted 73,582 73,617 -% Earnings Per Share of Common Stock: Basic $1.83 $1.78 3% Diluted $1.83 $1.78 3% System Throughput - Dekatherms 133,984 127,016 5% Gas Customers Billed in April 965 963 -% System Average Degree Days -- Actual 3,148 2,918 8% System Average Degree Days -- Normal 3,068 3,095 -1% Percent Normal Degree Days 103% 94% - 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, rate of customer growth, new legislation and regulations and application of existing laws and regulations, economic and capital market conditions, the cost and availability of natural gas, weather conditions and other uncertainties, all of which are difficult to predict and some of which are beyond our control. For these reasons, you should not rely on these forward-looking statements when making investment decisions. The words "expect," "believe," "project," "anticipate," "intend," "should," "could," "will," "assume," "can," "estimate," "forecast," "future," "indicate," "outlook," "plan," "predict," "seek," "target," "would," 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 and industrial utility customers in North Carolina, South Carolina and Tennessee, including 61,000 customers served by municipalities who are wholesale customers. Our subsidiaries are invested in joint venture, energy-related businesses, including unregulated retail natural gas marketing, interstate natural gas storage and intrastate natural gas transportation.
Additional information about Piedmont is available on the Internet at http://www.piedmontng.com/.
CONTACT: David L. Trusty, +1-704-731-4391, david.trusty@piedmontng.com, or Investor Relations, John Sutphin, +1-704-731-4314, john.sutphin@piedmontng.com, both of Piedmont Natural Gas Company
Piedmont Natural Gas Company
CONTACT: David L. Trusty, +1-704-731-4391, david.trusty@piedmontng.com,
or Investor Relations, John Sutphin, +1-704-731-4314,
john.sutphin@piedmontng.com, both of Piedmont Natural Gas Company
Web Site: http://www.piedmontng.com/
