Piedmont Natural Gas Initiates Fiscal Year 2016 Earnings Guidance

Nov 02, 2015, 07:40 ET from Piedmont Natural Gas

CHARLOTTE, N.C., Nov. 2, 2015 /PRNewswire/ -- Piedmont Natural Gas (NYSE: PNY) is initiating earnings guidance in the range of $1.92 - $2.02 per diluted share for its fiscal year ending October 31, 2016 before any merger-related adjustments.  This guidance for fiscal year 2016 reflects the following assumptions:

  • Higher utility margin due to:
    • Expected margin increases under the Integrity Management Riders (IMRs) in North Carolina and Tennessee;
    • A $1.7 million margin increase in South Carolina under the annual rate stabilization adjustment;
    • Gross utility customer additions of 1.6-2.0% in the Company's three state market area;
    • Partially offset by lower wholesale secondary marketing margin due to an assumption of normal weather and additional wholesale pipeline capacity into our markets.
  • O&M expense increases of less than 2% from fiscal year 2015 due primarily to higher payroll
  • Higher depreciation expense and general taxes due to additional utility plant in service.
  • Increased contributions from joint venture equity method investments due to increased allowance for funds used during construction (AFUDC) from the Constitution Pipeline and Atlantic Coast Pipeline projects.
  • Utility AFUDC of about $13 million reflecting forecasted utility capital expenditure levels and project schedules.
  • Utility capital expenditures (including AFUDC) in the range of $500-$600 million, including approximately $280 million related to system integrity projects, as well as net contributions of an additional $110 million to fund the Company's joint venture equity interests in the Constitution Pipeline and Atlantic Coast Pipeline projects.
  • Higher interest expense primarily due to the full-year impact of the Company's $150 million long-term debt issuance in fiscal year 2015.
  • Issuance of both new long-term debt and equity in fiscal year 2016 to maintain the Company's long term targeted capital ratios of 50% - 60% debt and 40% - 50% equity.

SOURCE Piedmont Natural Gas