Issuing its guidance for the company’s first fiscal year with recently acquired North Carolina Natural Gas (NCNG) under its wing, Charlotte, NC-based Piedmont Natural Gas said it expects fiscal year 2004 earnings guidance of between $2.25-2.40 per diluted share.

In addition to reflecting the recent acquisition and integration of NCNG, Piedmont’s guidance also factors in two rate case approvals that will become effective on November 1, the first day of Piedmont’s fiscal year 2004. The approved rate cases increase margins by $10.3 million for Piedmont’s Tennessee operations and $29.4 million for the recently acquired NCNG division.

“We expect the NCNG acquisition to be accretive during fiscal year 2004 in the range of $0.15 to $0.20 per share,” said Piedmont CEO Thomas E. Skains. “At closing on September 30, 2003, we financed the NCNG purchase price through a short-term $450 million commercial paper program. We intend to issue long-term securities, approximately $250 million of debt and approximately $200 million of equity, early in fiscal year 2004 to realign our capital structure to our traditional strong ratios.”

The company noted that its guidance also includes management’s assessment of the potential negative impacts that high wholesale natural gas prices may have on its earnings. These negative impacts include fuel switching in the competitive industrial markets, increased uncollectibles from customers and increased gas inventory carrying costs. Piedmont’s management estimates that these negative impacts could total between $0.10-0.15 per share for fiscal year 2004.

Piedmont said its 2004 fiscal year earnings guidance is based on a utility capital expenditure budget of $102 million, of which $23 million relates to ongoing operations for the new NCNG division. The company’s capital budget assumes a customer growth rate between 3 and 3.5% and a relatively stable interest rate and economic environment.

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