For the nine months ended July 31, 2009, net income was $127.1 million and diluted earnings per share were $1.73, compared with net income of $123.2 million and diluted earnings per share of $1.67 for the same period in 2008.
Utility margin increased by $3.8 million for the third quarter and by $6.1 million for the nine months ended July 31, 2009 compared to the same periods in 2008. The increase in margin is due to the Company's 2008 general rate case in North Carolina and continued customer growth across its three-state service area. Operations and maintenance expenses were essentially flat compared with the same periods in 2008.
Revised Fiscal 2009 Earnings Guidance
In light of its year to date performance and its forward-looking assessment of the fourth fiscal quarter, Piedmont Natural Gas is narrowing its fiscal 2009 earnings guidance to a range of $1.50 to $1.60 per diluted share with emphasis on the upper end of the range. 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 financing requirements. Changes in market conditions which the Company cannot reasonably anticipate could cause earnings for the year to differ from this guidance.
Chairman, President and Chief Executive Officer Thomas E. Skains commented, "This fiscal year has been a challenging one as our employees have worked through the very difficult economic conditions brought on by the global recession. By sticking to the fundamentals of maximizing profitable growth opportunities, implementing ongoing cost management and business process improvement programs, spending our capital resources prudently and providing quality customer service, we are poised to achieve another year of record earnings per share for our shareholders."
Conference Call
In conjunction with this third-quarter earnings release, you are invited to listen to the conference call that will be broadcast live over the Internet on Wednesday, September 9, 2009, at 9:00 a.m. Eastern Time, hosted by Chairman, President and Chief Executive Officer Thomas E. Skains. Log on to the web at 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 Company, Inc.
Summary of Operations
(in thousands except per share amounts and degree days)
Three Months Ended July 31
------------------ ------- % Increase
2009 2008 (Decrease)
---- ---- ----------
(Unaudited) (Unaudited)
Operating Revenues $180,201 $354,709 (49)%
Cost of Gas 99,362 277,689 (64)%
Margin 80,839 77,020 5%
Operations and Maintenance
Expenses 50,124 49,738 1%
Depreciation 24,488 23,581 4%
General Taxes 8,841 7,928 12%
Utility Income Taxes (4,199) (6,846) 39%
Operating Income (Loss) 1,585 2,619 (39)%
Other Income (Expense), net 2,162 2,530 (15)%
Utility Interest Charges 11,047 12,827 (14)%
Net Loss (7,300) (7,678) 5%
Average Shares of Common
Stock:
Basic 72,983 73,368 (1)%
Diluted 72,983 73,368 (1)%
Earnings Per Share of
Common Stock:
Basic ($0.10) ($0.10) - %
Diluted ($0.10) ($0.10) - %
System Throughput -
Dekatherms 36,895 38,931 (5)%
Gas Customers Billed in
July 942 943 - %
System Average Degree Days
- Actual 43 35 23%
System Average Degree Days
- Normal 51 53 (4)%
Percent Normal Degree Days 84% 66% -
Nine Months Ended July 31
----------------- ------- % Increase
2009 2008 (Decrease)
---- ---- ----------
(Unaudited) (Unaudited)
Operating Revenues $1,415,276 $1,777,357 (20)%
Cost of Gas 943,802 1,312,031 (28)%
Margin 471,474 465,326 1%
Operations and Maintenance
Expenses 154,200 155,598 (1)%
Depreciation 72,937 69,179 5%
General Taxes 26,235 25,080 5%
Utility Income Taxes 73,035 69,092 6%
Operating Income 145,067 146,377 (1)%
Other Income (Expense) 18,006 18,316 (2)%
Utility Interest Charges 35,972 41,479 (13)%
Net Income $127,101 $123,214 3%
Average Shares of Common
Stock:
Basic 73,180 73,355 - %
Diluted 73,476 73,628 - %
Earnings Per Share of
Common Stock:
Basic $1.74 $1.68 4%
Diluted $1.73 $1.67 4%
System Throughput -
Dekatherms 170,879 165,947 3%
Gas Customers Billed in
July 942 943 - %
System Average Degree Days
- Actual 3,191 2,953 8%
System Average Degree Days
- Normal 3,119 3,148 (1)%
Percent Normal Degree Days 102% 94% -
SOURCE Piedmont Natural Gas
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