CHARLOTTE, N.C., June 7 /PRNewswire-FirstCall/ — Charlotte-based Piedmont Natural Gas (NYSE: PNY) announced results for its second fiscal quarter ended April 30, 2005. For the quarter, the Company reported net income of $39.6 million and $0.52 diluted earnings per share, compared with $41.3 million and $0.54 for the same period in 2004.
For the six months ended April 30, 2005, net income was $110.9 million and diluted earnings per share were $1.44, compared with $115.9 million and $1.60 for the prior six-month period. Earnings in the prior year six-month period include $4.6 million, or $.06 per diluted share, of one-time joint venture gains that were reported in the first quarter of 2004.
Utility margin in the second quarter declined from the prior year’s quarter primarily due to reduced throughput in the Company’s core markets – residential, commercial and industrial – reflecting warmer weather and continued customer conservation driven by high wholesale natural gas prices. Operations and maintenance expenses increased from the prior-year quarter primarily due to increases in payroll costs, including vested vacation pay, and employee benefit costs, partially offset by decreases in uncollectibles and other operations and maintenance expenses.
Net income from joint venture activities was $9 million for the quarter, compared with $7.7 million for the same quarter of the prior year. The Company’s interest in SouthStar Energy Services LLC, which is primarily engaged in the unregulated retail natural gas market in Georgia, contributed $8.2 million to net income and $0.11 per diluted share in the second quarter, compared with $6.6 million and $0.09 for the same quarter of the prior year. Two other joint ventures, Pine Needle LNG and Cardinal Pipeline, contributed combined diluted earnings per share of $0.01 in the second quarters of 2005 and the prior year.
Dividend Declared
At the Company’s regular quarterly meeting of its Board of Directors held today, a quarterly dividend on Common Stock of 23 cents per share was declared, payable July 15, 2005, to holders of record at the close of business on June 24, 2005.
Fiscal 2005 Earnings Guidance
Piedmont Natural Gas reaffirms its guidance for fiscal year 2005 earnings from continuing operations in the range of $1.23 to $1.30 per diluted share. Guidance reflects actual results for the first six months of fiscal year 2005 and expected performance for the balance of the year assuming normal weather, a stable economy and no general rate case activity impacting 2005 earnings.
Conference Call
In conjunction with the second quarter earnings release, you are invited to listen to the conference call that will be broadcast live over the Internet on Monday, June 13, 2005, at 2:30 p.m. Eastern Daylight Time, hosted by Chairman, President and Chief Executive Officer Thomas E. Skains. Simply log on to the web at www.piedmontng.com and click on Investor Relations, then on Presentations. The conference call will be archived on the website.
Piedmont Natural Gas
Summary of Operations
(in thousands except per share amounts and degree days)
Three Months Ended
April 30
April 30
% Increase
2005
2004
(Decrease)
(Unaudited)
(Unaudited)
Operating Revenues
$
508,035
$
482,398
5
%
Cost of Gas
367,378
336,543
9
%
Margin
140,657
145,855
-4
%
Operations and Maintenance Expenses
52,324
50,539
4
%
Depreciation
20,989
20,210
4
%
General Taxes
7,332
7,421
-1
%
Utility Income Taxes
19,098
21,781
-12
%
Operating Income
40,914
45,904
-11
%
Other Income (Expense), net
10,017
7,713
30
%
Utility Interest Charges
11,201
12,324
-9
%
Income Before Minority Interest
39,730
41,293
-4
%
Less Minority Interest
98
34
188
%
Net Income
$
39,632
$
41,259
-4
%
Average Shares of Common Stock:
Basic
76,703
76,163
1
%
Diluted
76,915
76,334
1
%
Earnings Per Share of Common Stock:
Basic
$
0.52
$
0.54
-4
%
Diluted
$
0.52
$
0.54
-4
%
System Throughput — Dekatherms
59,535
57,953
3
%
Gas Customers Billed in April
903
879
3
%
System Average Degree Days — Actual
1,256
1,277
-2
%
System Average Degree Days — Normal
1,236
1,229
1
%
Percent Normal Degree Days
102
%
104
%
-2
%
Six Months Ended
April 30
April 30
% Increase
2005
2004
(Decrease)
(Unaudited)
(Unaudited)
Operating Revenues
$
1,188,591
$
1,101,183
8
%
Cost of Gas
845,314
758,848
11
%
Margin
343,277
342,335
0
%
Operations and Maintenance Expenses
102,577
100,211
2
%
Depreciation
41,737
40,663
3
%
General Taxes
15,773
13,423
18
%
Utility Income Taxes
63,357
64,785
-2
%
Operating Income
119,833
123,253
-3
%
Other Income (Expense), net
14,081
16,208
-13
%
Utility Interest Charges
23,006
23,535
-2
%
Income Before Minority Interest
110,908
115,926
-4
%
Less Minority Interest
(1
)
45
-102
%
Net Income
$
110,909
$
115,881
-4
%
Average Shares of Common Stock:
Basic
76,706
72,158
6
%
Diluted
76,920
72,346
6
%
Earnings Per Share of Common Stock:
Basic
$
1.45
$
1.61
-10
%
Diluted
$
1.44
$
1.60
-10
%
System Throughput — Dekatherms
131,335
131,445
0
%
Gas Customers Billed in April
903
879
3
%
System Average Degree Days — Actual
3,013
3,186
-5
%
System Average Degree Days — Normal
3,176
3,154
1
%
Percent Normal Degree Days
95
%
101
%
-6
%
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 risks and uncertainties that could cause actual results to differ materially from those suggested by the statements. Factors that may make the actual results differ from anticipated results include, but are not limited to, economic conditions; competition from other providers of similar products; 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” and variations of such words and similar expressions are intended to identify forward-looking statements. 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 filings with the SEC on Forms 10-K and Forms 10-Q, which are available on the SEC’s website at www.sec.gov or on our website at www.piedmontng.com .
Media Contact: David L. Trusty of Piedmont Natural Gas 704-731-4391, or david.trusty@piedmontng.com
Investor Contact: Headen B. Thomas of Piedmont Natural Gas 704-731-4438, or headen.thomas@piedmontng.com
About Piedmont Natural Gas
Piedmont Natural Gas is an energy services company primarily engaged in the distribution of natural gas to 960,000 residential, commercial and industrial utility customers in North Carolina, South Carolina and Tennessee, including 60,000 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, intrastate natural gas transportation and regulated natural gas distribution. More information about Piedmont Natural Gas is available on the Internet at www.piedmontng.com .
SOURCE Piedmont Natural Gas
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