Piedmont Natural Gas reported results for its fiscal year ended October 31, 2011. For the year, the Company reported net income of $113.6 million and diluted earnings per share of $1.57 compared with net income of $142 millionand diluted earnings per share of $1.96 for 2010. Results for 2010 include the gain on Piedmont's sale of one-half of its 30 percent ownership interest in SouthStar Energy Services to AGL Resources on January 1, 2010 for $57.5 million. The after-tax gain on the transaction was $30.3 million or$0.42 per diluted share.

Commenting on the Company's fiscal year 2011 results, Piedmont Chairman, President and Chief Executive Officer, Thomas E. Skains said, "We are pleased to announce today another year of solid financial results, positive growth in our core utility business through the addition of approximately 10,500 new customers, and continuing progress in our large utility capital expansion plans to serve natural gas fired power generation growth within our home state of North Carolina. We look forward to the coming year as we focus on strategies to promote the benefits of clean-burning and domestically abundant natural gas, provide excellent customer service, and enhance shareholder value by expanding our core natural gas and complementary energy-related businesses."

System throughput in 2011 totaled 280 million dekatherms, compared with 253 million dekatherms for the previous year. The increase was largely due to weather in 2011 that was 10 percent colder than normal and 4 percent colder than 2010, a 10 percent increase in natural gas deliveries to industrial customers and a 33 percent increase in deliveries to power generation customers.

Margin increased by $21 million from the previous year primarily due to increased volumes and services to industrial and power generation customers and residential and commercial customer growth. Operations and maintenance expenses for the year increased $5.5 million from the previous year primarily due to increased vehicle and transportation expenses, higher materials expense and a regulatory disallowance of some prior years' franchise fees in one of our jurisdictions.

Pre-tax income from equity method investments decreased $4.8 million year to year primarily due to lower earnings contributions from SouthStar at the lower 15 percent ownership interest during the entire fiscal year 2011.

FISCAL 2012 EARNINGS GUIDANCE REAFFIRMED

Piedmont Natural Gas reaffirms its fiscal year 2012 earnings guidance of $1.58 to $1.68 per diluted share issued on November 1, 2011.

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