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                                                                    EXHIBIT 99.1


PRESS RELEASE

               PIEDMONT NATURAL GAS COMMENTS ON EARNINGS ESTIMATES

CHARLOTTE, NC - August 7, 2001 - Piedmont Natural Gas (NYSE:PNY) today said that
its earnings for the fiscal year ending October 31, 2001, are predicted to be in
the $2.00 to $2.10 per share range, as compared with the $1.87 reported for the
prior year before the effect of a gain on transfer of propane assets. This
projection is less than had been predicted for the current fiscal year. The
Charlotte-based natural gas distributor estimates earnings per share between
$2.10 and $2.20 for the fiscal year ending October 31, 2002.

The Company's business is seasonal and it normally reports losses for both the
third and fourth fiscal quarters. For the three months ended July 31, 2001, the
Company expects to report a third quarter loss between ($0.35) and ($0.40) per
share compared with ($0.32) for the similar prior period, due primarily to the
effects of weather and reduced customer consumption patterns. Third and fourth
quarter margin represents approximately 27% of the Company's annual margin.

"General economic conditions and higher wholesale natural gas costs have
adversely affected our near-term utility operating performance," commented Ware
Schiefer, President and CEO. "As a result, our charge-offs for non-paying
customers have been higher than normal this year. Many of our customers have
also been conserving and consuming less natural gas than normal in response to
the economic slow-down and higher gas costs. Some industrial load was lost this
past winter to lower-priced industrial fuels. Cooler-than-normal summer weather
in our area has also caused a reduction in the volumes of natural gas delivered
for electric power generation."

"On the positive side, the steady decline in wholesale gas costs since last
winter's peak is encouraging and bodes well for our business and our customers.
Industrial customers who switched to other fuels earlier in the year are coming
back to natural gas as we regain our traditional competitive price advantage.
Despite higher gas costs and a weaker economy this year, Piedmont continues to
experience strong customer growth. Although down slightly from traditional
levels, our 4.5% customer addition growth rate is still three times the national
average."

"Additionally, residential customers who have been disconnected generally clear
their outstanding balances in time to reconnect service for the winter heating
season. By then, wholesale gas costs are expected to be well below those of last
year, and winter gas service should be more affordable for all classes of
customers," he said.

The Company has also taken steps to mitigate the impact of higher wholesale gas
costs on its investors and customers. "We have implemented additional cost
controls that will keep operating expenses in line while we continue to grow,"
said Schiefer. "We also implemented



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programs to assist customers who have had a difficult time paying their gas
bills." Last winter, the Company allowed customers to sign up for its Equal
Payment Plan program anytime, rather than only in early summer. Individualized
payment plans were offered to customers unable to pay their bills on time. A
credit card and bank account payment-by-phone option was initiated to assist
customers and avoid greater charge-offs.

Piedmont will release financial results for the 2001 third fiscal quarter during
market hours on August 24. The Company will host a conference call on August 27
at 2:30 p.m. ET to review results for the quarter. You may access the live
broadcast by visiting the Investor Relations area of the Piedmont website at
www.piedmontng.com and clicking on the webcast link.

This news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements involve risks
and uncertainties, including, but not limited to, those that are discussed in
SEC reports filed by Piedmont Natural Gas. The statements contained in this news
release are based on Piedmont's current estimates, and actual results may differ
materially. More information about the risks and uncertainties relating to these
forward-looking statements may be found in Piedmont's SEC filings, which are
available free of charge on the SEC's website at www.sec.gov.

Piedmont Natural Gas is an energy and services company primarily engaged in the
transportation, distribution and sale of natural gas to over 700,000
residential, commercial and industrial customers in North Carolina, South
Carolina and Tennessee. The Charlotte-based company is the second-largest
natural gas utility in the Southeast. An unregulated subsidiary of the Company
is an equity participant in a venture that markets natural gas to an additional
570,000 customers in Georgia, the first state in the venture's eight-state
region to deregulate retail natural gas service. Another unregulated subsidiary
is an equity participant in Heritage Propane Partners, L.P., the nation's
fourth-largest propane distributor serving more than 500,000 customers in
twenty-eight states.



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