Piedmont Natural Gas Company Inc. (PNY, Financial) filed Quarterly Report for the period ended 2011-01-31.
Piedmont Natural Gas Company Inc. has a market cap of $2.16 billion; its shares were traded at around $29.87 with a P/E ratio of 19.4 and P/S ratio of 1.4. The dividend yield of Piedmont Natural Gas Company Inc. stocks is 3.7%. Piedmont Natural Gas Company Inc. had an annual average earning growth of 5.9% over the past 10 years.
As of January 31, 2011, we had $10 million available for letters of credit under our three-year revolving syndicated credit facility, of which $3.5 million were issued and outstanding. The letters of credit are used to guarantee claims from self-insurance under our general and automobile liability policies. As of January 31, 2011, unused lines of credit available under our three-year revolving syndicated credit facility, including the issuance of the letters of credit, totaled $331 million.
Net cash provided by operating activities was $21.2 million and $50.9 million for the three months ended January 31, 2011 and 2010, respectively. Net cash provided by operating activities reflects a $29.3 million decrease in net income for 2011 compared with 2010 including the gain on the sale of half of our interest in SouthStar included in 2010 as discussed in Results of Operations above. The effect of changes in working capital on net cash provided by operating activities is described below:
decoupling mechanism in North Carolina provides for the collection of our approved margin from residential and commercial customers independent of consumption patterns. The margin decoupling mechanism reduced margin by $27.9 million and $15.5 million in the three months ended January 31, 2011 and 2010, respectively. Our gas costs are recoverable through PGA procedures and are not affected by the WNA or the margin decoupling mechanism.
Cash Flows from Investing Activities. Net cash provided by (used in) investing activities was ($40.4) million and $23.2 million for the three months ended January 31, 2011 and 2010, respectively. Net cash used in investing activities was primarily for utility construction expenditures. Gross utility construction expenditures for the three months ended January 31, 2011 were $38.2 million as compared to $33.9 million in the same prior period primarily due to expending $11.5 million for the construction of power generation projects in 2011 as compared with $1.9 million expended for these projects in the same prior period.
approved by the NCUC in May 2010, calls for us to construct 38 miles of 20-inch transmission pipeline along with compression facilities to provide natural gas delivery service to the plant by June 2012; we began construction in February 2010. Our investment in the pipeline and compression facilities is estimated at $88.7 million and is supported by a long-term service agreement. We have incurred $7.4 million on this project as of January 31, 2011. To provide the additional delivery service, we have executed an agreement with Cardinal to expand our firm capacity requirement by 149,000 dekatherms per day to serve this facility. This will require Cardinal to spend as much as $53.1 million to expand its system. As a 21.49% equity venture partner of Cardinal, we will invest as much as $11.4 million in Cardinals system expansion. Capital contributions related to this system expansion were made in January 2011 and will continue on a periodic basis through September 2012. As of January 31, 2011, our contributions to date related to this system expansion were $1.6 million. For further information regarding this agreement, see Note 8 to the consolidated financial statements.
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Piedmont Natural Gas Company Inc. has a market cap of $2.16 billion; its shares were traded at around $29.87 with a P/E ratio of 19.4 and P/S ratio of 1.4. The dividend yield of Piedmont Natural Gas Company Inc. stocks is 3.7%. Piedmont Natural Gas Company Inc. had an annual average earning growth of 5.9% over the past 10 years.
Highlight of Business Operations:
Short-Term Borrowings. On January 25, 2011, we replaced our existing $450 million five-year revolving syndicated credit facility with a new $650 million three-year revolving syndicated credit facility. The new facility expires in January 2014 and has an option to expand up to $850 million. The three-year revolving syndicated credit facility has the same financial covenant as our previous syndicated credit facility and also has additional provisions regarding defaulting lenders and replacements of lenders. We pay an annual fee of $30,000 plus fifteen basis points for any unused amount up to $650 million. During the three months ended January 31, 2011, short-term bank borrowings ranged from $238 million to $426 million, and interest rates ranged from .51% to 1.16%.As of January 31, 2011, we had $10 million available for letters of credit under our three-year revolving syndicated credit facility, of which $3.5 million were issued and outstanding. The letters of credit are used to guarantee claims from self-insurance under our general and automobile liability policies. As of January 31, 2011, unused lines of credit available under our three-year revolving syndicated credit facility, including the issuance of the letters of credit, totaled $331 million.
Net cash provided by operating activities was $21.2 million and $50.9 million for the three months ended January 31, 2011 and 2010, respectively. Net cash provided by operating activities reflects a $29.3 million decrease in net income for 2011 compared with 2010 including the gain on the sale of half of our interest in SouthStar included in 2010 as discussed in Results of Operations above. The effect of changes in working capital on net cash provided by operating activities is described below:
decoupling mechanism in North Carolina provides for the collection of our approved margin from residential and commercial customers independent of consumption patterns. The margin decoupling mechanism reduced margin by $27.9 million and $15.5 million in the three months ended January 31, 2011 and 2010, respectively. Our gas costs are recoverable through PGA procedures and are not affected by the WNA or the margin decoupling mechanism.
Cash Flows from Investing Activities. Net cash provided by (used in) investing activities was ($40.4) million and $23.2 million for the three months ended January 31, 2011 and 2010, respectively. Net cash used in investing activities was primarily for utility construction expenditures. Gross utility construction expenditures for the three months ended January 31, 2011 were $38.2 million as compared to $33.9 million in the same prior period primarily due to expending $11.5 million for the construction of power generation projects in 2011 as compared with $1.9 million expended for these projects in the same prior period.
approved by the NCUC in May 2010, calls for us to construct 38 miles of 20-inch transmission pipeline along with compression facilities to provide natural gas delivery service to the plant by June 2012; we began construction in February 2010. Our investment in the pipeline and compression facilities is estimated at $88.7 million and is supported by a long-term service agreement. We have incurred $7.4 million on this project as of January 31, 2011. To provide the additional delivery service, we have executed an agreement with Cardinal to expand our firm capacity requirement by 149,000 dekatherms per day to serve this facility. This will require Cardinal to spend as much as $53.1 million to expand its system. As a 21.49% equity venture partner of Cardinal, we will invest as much as $11.4 million in Cardinals system expansion. Capital contributions related to this system expansion were made in January 2011 and will continue on a periodic basis through September 2012. As of January 31, 2011, our contributions to date related to this system expansion were $1.6 million. For further information regarding this agreement, see Note 8 to the consolidated financial statements.
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