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.

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SOURCE Piedmont Natural Gas