Piedmont Natural Gas Initiates Fiscal Year 2010 Earnings Guidance

• Press Release
• Source: Piedmont Natural Gas
• On 6:12 pm EST, Monday November 2, 2009

CHARLOTTE, N.C., Nov. 2 /PRNewswire-FirstCall/ -- Charlotte based Piedmont Natural Gas (NYSE: PNY - News) is initiating its earnings guidance for the fiscal year ending October 31, 2010 in the range of $1.90 to $2.00 per diluted share.

The guidance for fiscal year 2010 reflects:

• A one time gain of $0.42 per share on the previously announced sale of one-half of the Company's 30% ownership interest in SouthStar Energy Services (SouthStar) to AGL Resources. The transaction is scheduled to close on January 1, 2010,

• Earnings sharing from SouthStar in the Company's first fiscal quarter at the current rate of approximately 25%. The remainder of the fiscal year would reflect the new ownership and earnings sharing arrangement of 15%,

• Margin growth from gross customer additions of 1.3% in the Company's North Carolina, South Carolina and Tennessee service areas,

• A $1.1 million annual margin increase effective November 1, 2009 pursuant to a settlement agreement filed in the Company's 2009 South Carolina Rate Stabilization Act proceeding,

• The continuation of the Company's business process improvement programs offset by approximately $2.0 million in expenses related to a corporate repositioning program to update the Company's brand, internet web site and associated sales and marketing communication channels for its customers, shareholders and the public, and an estimated $2.5 million increase in pension expense under FAS 87,

• Utility capital expenditures of $195.4 million, including $46.3 million for pipeline infrastructure to serve two gas-fired power generation projects in North Carolina that were deferred from last year's capital program at the request of the customers. No capital expenditures will be made in fiscal year 2010 related to the Company's deferred Robeson LNG storage project. Capital expenditures for the recently announced $85 million Wayne County project with Progress Energy will not affect capital expenditures until fiscal years 2011 and 2012,

• A common stock repurchase program to permanently reduce shares outstanding by one million shares. The Company's typical program of making open market share purchases to satisfy requirement for its Dividend Reinvestment Program and other stock based programs will also continue, and

• No new long-term debt issuance during fiscal year 2010.

Forward Looking Statement

This press release contains forward-looking statements. These statements are based on management's current expectations and information currently available and are believed to be reasonable and are made in good faith. However, the forward-looking statements are subject to future events, risks, uncertainties and other factors that could cause actual results to differ materially from those projected in the statements. Factors that may make the actual results differ from anticipated results include, but are not limited to, weather conditions, rate of customer growth, the cost and availability of natural gas, competition from other energy providers, new legislation and regulations and application of existing laws and regulations, economic and capital market conditions, the cost and availability of labor and materials and other uncertainties, all of which are difficult to predict and some of which are beyond our control. For these reasons, you should not rely on these forward-looking statements when making investment decisions. The words "expect," "believe," "project," "anticipate," "intend," "should," "could," "will," "assume," "can," "estimate," "forecast," "future," "indicate," "outlook," "plan," "predict," "seek," "target," "would," and variations of such words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only as of the date they are made and we do not undertake any obligation to update publicly any forward-looking statement, either as a result of new information, future events or otherwise. More information about the risks and uncertainties relating to these forward-looking statements may be found in Piedmont's latest Forms 10-K and 10-Q, which are available on the SEC's website at http://www.sec.gov.

About Piedmont Natural Gas

Piedmont Natural Gas is an energy services company primarily engaged in the distribution of natural gas to more than one million residential, commercial and industrial utility customers in North Carolina, South Carolina and Tennessee, including 61,000 customers served by municipalities who are wholesale customers. Our subsidiaries are invested in joint venture, energy-related businesses, including unregulated retail natural gas marketing, interstate natural gas storage and intrastate natural gas transportation. Additional information about Piedmont is available on the Internet at http://www.piedmontng.com.

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