<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from .........to ..........
Commission file number 0-82
NORTH CAROLINA NATURAL GAS CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 56-0646235
------------------ -----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 Rowan Street, Fayetteville, North Carolina 28301-4993
----------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(910) 483-0315
---------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes [ X ] No [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common Stock, $2.50 par value 6,494,118
----------------------------- ----------------
Class Number of Shares
<PAGE> 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
NORTH CAROLINA NATURAL GAS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
ASSETS
December 31, September 30,
1995 1995
------------ -------------
Gas Utility Plant $269,313 $265,289
Less-Accumulated Depreciation and
Amortization (88,734) (86,493)
------- -------
Utility Plant, net 180,579 178,796
------- -------
Nonutility Property 5,552 5,675
Less-Accumulated Depreciation (2,270) (2,589)
------- -------
Nonutility Plant, net 3,282 3,086
------- -------
Current Assets:
Cash 419 1,639
Unrestricted Temporary Cash Investments 5,000 -
Restricted Temporary Cash Investments 5,368 4,785
Accounts Receivable, Less Reserve 23,279 12,952
Inventories, at Average Cost -
Gas in Storage 7,036 7,207
Materials, Supplies & Merchandise 3,601 3,679
Deferred Gas Cost-Unbilled Volumes 3,020 328
Other Current Assets 572 272
------- -------
Total Current Assets 48,295 30,862
------- -------
Investment in Exploration Ventures 87 87
Deferred Charges and Other Assets 2,292 2,049
------- -------
Total Assets $234,535 $214,880
======= =======
(The accompanying notes are an integral part of these balance sheets.)
<PAGE> 3
NORTH CAROLINA NATURAL GAS CORPORATION AND SUBSIDIARIES
Condensed Balance Sheets (Unaudited)
(in thousands)
CAPITALIZATION AND LIABILITIES
December 31, September 30,
1995 1995
------------ -------------
Capitalization:
Stockholders' Investment:
Common Stock, Par Value $2.50; Shares
Outstanding 12/31/95, 6,494;
09/30/95, 6,477 $ 16,235 $ 16,193
Capital in Excess of Par Value 27,851 27,513
Retained Earnings 51,363 49,072
------- -------
Total Stockholders' Investment 95,449 92,778
------- -------
Long-Term Debt 65,000 62,000
------- -------
Total Capitalization 160,449 154,778
------- -------
Current Liabilities:
Current Maturities of Long-Term Debt 2,000 2,000
Notes Payable 4,000 -
Accounts Payable 22,842 12,390
Restricted Supplier Refunds 5,368 4,785
Refunds Payable to Customers 763 3,646
Taxes Payable 3,632 1,871
Other Current Liabilities 5,490 5,880
------- -------
Total Current Liabilities 44,095 30,572
------- -------
Other Credits:
Deferred Income Taxes 21,021 20,584
Unamortized Investment Tax Credits 2,870 2,920
Regulatory Liability Related to Income Taxes 3,243 3,300
Postretirement and Postemployment
Benefit Liability 1,831 1,646
Other 1,026 1,080
------- -------
Total Other Credits 29,991 29,530
------- -------
Total Capitalization and Liabilities $234,535 $214,880
======= =======
(The accompanying notes are an integral part of these balance sheets.)
<PAGE> 4
NORTH CAROLINA NATURAL GAS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
For the Three Months Ended December 31, 1995 and 1994
(in thousands except per share amounts)
1995 1994
------ ------
Operating Revenues $ 46,808 $ 34,415
Cost of Gas 30,288 19,979
------- -------
Gross Margin 16,520 14,436
------- -------
Operating Expenses and Taxes:
Operations and Maintenance 5,075 4,964
Depreciation 2,262 1,931
General Taxes 2,083 1,642
Income Taxes 2,146 1,810
------- -------
Total Operating Expenses and Taxes 11,566 10,347
------- -------
Operating Income 4,954 4,089
Other Income, Net 658 294
------- -------
Income Before Utility Interest Charges 5,612 4,383
Utility Interest Charges 1,345 1,067
------- -------
Net Income $ 4,267 $ 3,316
======= =======
Average Common Shares Outstanding 6,480 6,369
======= =======
Earnings Per Share $.66 $.52
======= =======
Dividends Declared Per Share $.305 $.29
======= =======
(The accompanying notes are an integral part of these statements.)
<PAGE> 5
NORTH CAROLINA NATURAL GAS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
For the Twelve Months Ended December 31, 1995 and 1994
(in thousands except per share amounts)
1995 1994
------ ------
Operating Revenues $158,066 $152,669
Cost of Gas 98,064 98,273
------- -------
Gross Margin 60,002 54,396
------- -------
Operating Expenses and Taxes:
Operations and Maintenance 21,181 19,507
Depreciation 8,380 7,502
General Taxes 7,537 7,254
Income Taxes 6,803 6,072
------- -------
Total Operating Expenses and Taxes 43,901 40,335
------- -------
Operating Income 16,101 14,061
Other Income, Net 1,386 779
------- -------
Income Before Utility Interest Charges 17,487 14,840
Utility Interest Charges 4,727 4,067
------- -------
Net Income $ 12,760 $ 10,773
======= =======
Average Common Shares Outstanding 6,438 6,348
======= =======
Earnings Per Share $1.98 $1.70
======= =======
Dividends Declared Per Share $1.22 $1.16
======= =======
(The accompanying notes are an integral part of these statements.)
<PAGE> 6
NORTH CAROLINA NATURAL GAS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
For the Three Months Ended December 31, 1995 and 1994
(in thousands)
1995 1994
------ ------
Cash Flows From Operating Activities:
Net Income $4,267 $3,316
Adjustments to reconcile net income to
net cash provided by (used in) operating
activities:
Depreciation and amortization 2,339 2,031
Change in deferred income taxes and
deferred investment tax credits, net 331 334
Change in other current assets and
liabilities (4,426) (1,328)
Other 130 167
------ ------
Net cash provided by operating activities 2,641 4,520
------ ------
Cash Flows From Investing Activities:
Property additions (3,920) (8,221)
Other, net (345) (90)
------ ------
Net cash used in investing activities (4,265) (8,311)
------ ------
Cash Flows From Financing Activities:
Increase (decrease) in notes payable (23,000) 6,000
Issuance of long-term debt 30,000 -
Cash dividends paid (1,976) (1,846)
Issuance of common stock through
dividend revestment and employee stock
purchase plans 380 300
------ ------
Net cash provided by financing activities 5,404 4,454
------ ------
Net increase in cash and temporary
cash investments 3,780 663
Cash and temporary cash investments,
beginning of period 1,639 158
------ ------
Cash and temporary cash investments,
end of period $ 5,419 $ 821
====== ======
Interest, net of amounts capitalized $ 1,992 $ 2,081
Income taxes, net of refunds 13 1
(The accompanying notes are an integral part of these statements.)
<PAGE> 7
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1995
Note 1: The condensed financial statements included in this report reflect
only normal recurring adjustments which are, in the opinion of management,
necessary to a fair statement of the results for the periods shown. Because
of the seasonal nature of the Company's business, the results of operations
for the three-month period ended December 31, 1995 are not necessarily
indicative of the results for the full year. These financial statements
have been prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain information
and footnote disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations, although the
Company believes that the disclosures are adequate to make the information
presented not misleading. It is suggested that these condensed financial
statements be read in conjunction with the financial statements and the notes
thereto included in the Company's annual report for the fiscal year ended
September 30, 1995.
Note 2: Long-Term Debt at December 31, 1995:
Amount Due
Within
Issue One Year Total
- ----- ---------- -------
7.15% Senior Notes, due 11/10/15 $ - $30,000,000
9.21% Debentures, Series C,
due 11/15/11 - 25,000,000
8 3/4% Debentures, Series B,
due 06/15/01 2,000,000 12,000,000
---------- ----------
Long-Term Debt $ 2,000,000 $67,000,000
========== ==========
Note 3: During the three months ended December 31, 1995, the Company
received additonal supplier refunds of $523,920 from Transco and Columbia.
Upon order of the NCUC, the Company has invested all of these funds in U.S.
Treasury securities until such time as the Commission orders the funds
transferred to an Expansion Fund administered by the Commission pursuant
to legislation passed in July 1991 which encourages the expansion of Natural
Gas service into unserved areas of the State, including substantial portions
of the Company's franchised service territory.
<PAGE> 8
At December 31, 1995, $5,368,000 in temporary cash investments are restricted
for transfer to the Expansion Fund which was established for the Company by
Order of the NCUC dated February 8, 1993. On April 30, 1993 and October 19,
1994 the Company transferred $3.8 million and $6.6 million, respectively, to
the Expansion Fund administered by the Commission pursuant to the Order. At
December 31, 1995, a total of $11.7 million is in the Expansion Fund and is
available to the Company only upon application to the NCUC for an expansion
project approved by the NCUC.
<PAGE> 9
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(1) Material Changes in Financial Condition
Current cash requirements are financed primarily through internally
generated cash, the issuance of new common stock through dividend
reinvestment, employee stock purchase and key employee stock option plans
along with committed bank lines of credit totaling $25 million plus the cost
of gas in storage. At December 31, 1995, loans totaling $4 million were
outstanding under the lines of credit compared to $27 million outstanding
at September 30, 1995. On November 10, 1995, the Company issued, in a
private placement, $30 million of 7.15% Senior Notes, due 2015. This
financing was used to repay all of the short-term debt then outstanding.
Construction spending was $3.9 million for the three months ended
December 31, 1995, compared to $8.2 million for the same period in 1994. This
decrease was caused by nonrecurring expenditures for system strengthening
and the Mt. Olive expansion project in 1994. Construction expenditures for
the remainder of the fiscal year 1996 are projected at $18 million.
Management believes that the Company's lines of credit and cash provided from
operating activities will be sufficient to satisfy the Company's anticipated
short-term cash requirements during the remainder of fiscal year 1996.
Net cash provided by operating activities decreased $1,879,000 for the
three months ended December 31, 1995, as compared to the same period last
year. This decrease was due primarily to (1) an increase in customer accounts
receivable caused by higher gas consumption of residential and commercial
customers, and (2) a decrease in refunds payable to customers caused by the
actual cost of gas being higher than the cost of gas underlying the Company's
sales rates as gas prices, driven by colder weather, have increased
substantially during the 1995 quarter.
Net cash provided by financing activities increased $950,000 for the
three months ended December 31, 1995, as compared to the same period last
year. The primary reason for this increase was the private placement of
$30 million Senior Notes reduced by the net repayment of short-term debt in
the amount of $23 million in the 1995 quarter compared to net borrowings of
$6 million in the 1994 quarter.
(2) Material Changes in Results of Operations
Net income increased to $4.3 million for the three months ended December
31, 1995 from $3.3 million for the three months ended December 31, 1994, while
earnings per share increased to $.66 in the 1995 quarter from $.52 in the 1994
quarter. For the twelve months ended December 31, 1995, net income increased
to $12.8 million from $10.8 million for the twelve months ended December 31,
1994. Earnings per share for the twelve months ended December 31, 1995
increased to $1.98 from $1.70 for the prior year.
<PAGE> 10
Several significant factors had a favorable impact on results of
operations for the quarter and twelve months ended December 31, 1995
compared to the same periods in 1994. These factors were (1) a general
rate increase effective November 1, 1995 (see Part II, Item 5, for more
information); (2) significantly higher natural gas sales and transportation
volumes driven by above-average customer growth, increased demand from
industrial customers during the first nine months of the year and, during
the fourth quarter, weather that was 34% colder than 1994; (3) a 5.2%
increase in the customer base which resulted in increased facilities charges
as well as increased sales volumes; (4) higher earnings realized by the
Company's propane division in the fourth quarter driven by a 45% increase
in gallons sold compared to the 1994 quarter; and (5) higher earnings from
subsidiaries due to increased sales and margins from gas marketing
activities, principally in the fourth quarter.
Gross margins increased $2,084,000 and $5,606,000, respectively, for
the three months and twelve months periods compared to the same periods in
1994. The chart below compares margins for the three month and twelve month
periods by customer class (000's omitted):
GROSS MARGIN BY CUSTOMER CLASS
3 Months 12 Months
1995 1994 1995 1994
Residential $ 5,193 $ 4,047 $18,400 $16,534
Commercial 3,001 2,380 10,587 9,319
Industrial 6,052 5,965 24,084 22,340
Municipal 2,274 2,044 6,931 6,203
------- ------ ------ ------
Total $16,520 $14,436 $60,002 $54,396
====== ====== ====== ======
Gross margins increased for all customer classes for both the
three month and twelve month periods. Residential, commercial and municipal
margins increased because of the November 1, 1995 general rate increase,
continued strong customer growth throughout 1995 and additional sales and
transportation volumes resulting from the customer growth and weather that
was 34% colder in the 1995 quarter compared to 1994 and 11% colder for
calendar year 1995 compared to 1994. However, the Company's Weather
Normalization Adjustment ratemaking mechanism mitigates somewhat the
increases in margin due to colder-than-normal weather.
Gross margin for the industrial class was up $1.7 million for the
twelve months period because of substantial increases in sales and
transportation volumes to electric power generation and process gas users
for the first nine months of 1995. Gross margin for the quarter was up
only slightly because total industrial sales and transportation volumes
declined (see table on page 11) due to weather-related curtailments of low
margin boiler fuel customers; however, sales and transportation volumes to
the higher margin process gas users increased in the 1995 quarter compared
to 1994, providing a net increase in industrial margin.
<PAGE> 11
The chart below shows sales and transportation throughput volumes
(in thousands of dekatherms) by customer class for both the three month
and twelve month periods for 1995 and 1994:
THROUGHPUT VOLUMES (Mdt) BY CUSTOMER CLASS
3 Months 12 Months
1995 1994 1995 1994
Residential 1,519 1,126 5,960 5,715
Commercial 1,232 961 4,789 4,494
Industrial 7,361 7,533 33,528 28,934
Municipal 2,930 2,340 8,855 7,878
------ ------ ------ ------
Total 13,042 11,960 53,132 47,021
====== ====== ====== ======
The following chart shows the same total throughput volumes
classified by sales and transportation:
THROUGHPUT VOLUMES (Mdt) BY TYPE OF SERVICE
3 Months 12 Months
1995 1994 1995 1994
Sales 10,897 7,733 37,878 32,593
Transportation 2,145 4,227 15,254 14,428
------ ------ ------ ------
Total 13,042 11,960 53,132 47,021
====== ====== ====== ======
For the calendar year 1995, both sales and transportation volumes
increased because of the substantial increase in demand for gas in the
Company's service area from all customer classes. However, in the fourth
quarter of 1995 transportation volumes decreased while sales volumes
increased because (1) the rising price of natural gas caused some customers
to switch to sales service from transportation service; (2) more
weather-induced curtailments of the larger industrial boiler fuel customers
who use heavy oil as an alternative fuel; and (3) much colder weather caused
residential, commercial and municipal sales volumes to increase significantly.
The Company earns the same profit margin on transportation of
customer-owned gas as it earns from sales transactions to those customers.
However, changes in the mix of transportation and sales volumes can have
significant impacts on operating revenues and cost of gas, because the
commodity cost of gas associated with transportation volumes is paid by
the customer directly to the customer's supplier and is, therefore, not
incurred nor billed by the Company.
<PAGE> 12
Operating revenues increased $12,393,000 for the three months ended
December 31, 1995 from the three months ended December 31, 1994, but
increased only $5,397,000 for the calendar year 1995 compared to calendar
year 1994. The primary factors causing the substantial increase in the
three month period were (1) the 3.1 million dekatherm increase in sales
volumes; (2) significantly higher natural gas commodity prices during the
1995 quarter compared to 1994; and (3) the general rate increase. The
increase in operating revenues for the full calendar year 1995 was
substantially less than the increase in the quarter because commodity gas
prices during the first nine months of the year were approximately 30%
lower in 1995 compared to the first nine months of 1994. The Company is
allowed to recover 100% of its prudently incurred gas costs, and customers
received the benefit of the substantially lower gas prices.
Cost of gas increased $10,309,000 for the quarter ended December 31,
1995 compared to the 1994 quarter due to increased quantities purchased
related to the higher sales volumes and a commodity price increase of 20%
from the 1994 quarter. For the entire calendar year 1995, however, cost of
gas was flat because, even though sales volumes were up 5.3 million
dekatherms, the commodity price reductions during the first nine months of
the year compared to 1994 offset the volume increase.
Operations and maintenance expenses increased $1,674,000 for calendar
year 1995 from 1994 but the increase in the quarter was only $111,000.
Salaries and wages represent approximately 50% of the Company's operations
and maintenance expenses, and they increased approximately 8% during
calendar year 1995 due to the hiring of additional employees related to the
Company's growth and wage and salary increases to existing employees. The
second largest factor was the increased expense of higher provisions for
postretirement and postemployment benefit obligations related to FAS 106
and FAS 112, respectively. Such provisions were approximately $346,000
greater in the first nine months of calendar 1995 than in 1994.
Additionally, the Company incurred substantially higher costs for electric
power for its LNG plant and gas used in compressors because of the
additional throughput volumes, particularly in the fourth quarter, and
the requirement to fill the LNG tank nearly to capacity during the summer
and fall of 1995.
The rate of increase in operations and maintenance expenses declined
in the three months ended December 31, 1995 principally because of a
nonrecurring reduction in group medical insurance costs, together with
planned reductions in maintenance, demonstration and selling expenses and
travel-related expenses. Management expects that on a going-forward basis,
operations and maintenance expenses will increase at a rate somewhat greater
than the overall inflation rate because of the Company's ongoing customer
growth rate of 5-6% annually.
Depreciation expense increased in both the quarter and calendar year
1995 compared to the 1994 periods because of (1) the addition of utility
plant in service, primarily transmission and distribution plant, related
to system expansion and customer growth; and (2) an increase in the
depreciation rate which became effective concurrently with the Company's
general rate case, November 1, 1995.
<PAGE> 13
General taxes increased in both the quarter and the calendar year
1995 compared to 1994. The most significant tax is the state gross
receipts tax which is based on revenues and, therefore, it tracks the
change in revenues. Also, higher property and payroll taxes affected both
the quarter and the calendar year 1995.
Income taxes increased $336,000 and $731,000, respectively, for the
three month and twelve months periods compared to 1994. These increases
were caused by an increase in operating income.
Other income, net, increased in both the calendar year and quarter
ended December 31, 1995 due primarily to increased revenues from the
Company's propane division and increased revenues generated by increased
sales of natural gas at higher margins by two of the Company's subsidiaries,
NCNG Exploration and Cape Fear Energy Corporation, primarily during the
fourth quarter.
Utility interest charges increased $278,000 and $660,000, respectively,
for the quarter and twelve months ended December 31, 1995 as compared to the
1994 periods. The increase in the quarter was due to increased interest
expenses on long-term debt related to the November 10, 1995 issuance of
$30,000,000 principal amount of 7.15% Senior Notes, offset somewhat by
repayment of all short-term debt then outstanding. The calendar year
increase was caused by an increase in interest expense on short-term debt
because of greater short-term borrowings for the first ten months of 1995
compared to 1994, partially offset by an increase in allowance for funds used
during construction because of more construction work in progress during 1995.
<PAGE> 14
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in the Rights of the Company's Security Holders
None.
Item 3. Default Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
(a) Date of the meeting or of the action without a meeting:
January 9, 1996
(b) Whether the meeting was an annual or a special meeting:
Annual Meeting
(c) Names of each director elected at the meeting and the number
of votes cast for, against or withheld, and abstentions:
Paul A. DelaCourt For: 4,795,412
Against or Withheld: 37,877
Abstentions: 13,718
Frank B. Holding, Jr. For: 4,797,068
Against or Withheld: 36,221
Abstentions: 13,718
John O. McNairy For: 4,798,444
Against or Withheld: 34,845
Abstentions: 13,718
<PAGE> 15
(d) Name of each other director whose term of office as director
continued after the meeting:
George T. Clark, Jr.
James E. S. Hynes
Robert T. Johnson
William H. Prestage
Richard F. Waid
Calvin B. Wells
(e) Brief description of each matter voted upon and the number
of votes cast for, against or withheld, and abstentions:
None.
Item 5. Other Information
On October 27, 1995, the NCUC issued its Order granting a general
rate increase amounting to $4,205,000 in annual revenues effective November
1, 1995. The Commission's Order approved, in all material respects, the
Stipulation of Settlement reached among the Company, the Public Staff of
the NCUC, the Carolina Utility Customers Association, Inc. and other
intervenors in the rate case. The Order provides for a rate of return on
net investment of 10.09% but, pursuant to the Stipulation of Settlement,
did not state separately the rate of return on common equity nor the capital
structure used to calculate revenue requirements. The Order provides for
significant rate design changes by increasing residential and commercial
rates while reducing industrial sales and transportation rates to recognize,
among other things, the differences in costs of serving the various customer
classes. The Order establishes several new rate schedules, including an
economic development rate to assist in attracting new industry to the
Company's service area and a rate to provide standby, on-peak gas supply
service to industrial customers whose gas would otherwise be interrupted.
Also as part of the October 27, 1995 rate Order, the NCUC approved:
- Continuation of the Weather Normalization Adjustment (WNA) mechanism
originally approved in 1991.
- Establishment of the Price Sensitive Volume Adjustment (PSVA)
mechanism to replace the Industrial Sales Tracker (IST) effective
November 1, 1995. The PSVA, while narrower in scope than the IST,
protects the Company against loss of load from eight large,
fuel-switchable cusotmers using heavy fuel oil as an alternative
fuel while providing that all actual margins earned on deliveries of
gas to such customers shall be flowed through to all other customers.
- An increase in depreciation rates for certain distribution plant.
The increased depreciation rates account for approximately $750,000
of the $4.2 million annual revenue increase.
<PAGE> 16
- The accounting for and recovery in rates of costs associated
with environmental assessment and remediation of a former manufactured
gas plant (MGP) site. The NCUC found that NCNG acted in a reasonable
and prudent manner in responding to the 1991 North Carolina Department
of Environmental Health and Natural Resources Division of Environmental
Management's Notice of Violation of Water Quality Standards as a
result of MGP by-products at the Kinston site. Accordingly, the NCUC
approved the Company's proposal to recover an annualized amount of
MGP costs based on amounts expended, net of recoveries from third
parties, through December 31, 1995.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 - Financial Data Schedule
(b) Reports on Form 8-K
None.
<PAGE> 17
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
NORTH CAROLINA NATURAL GAS CORPORATION
--------------------------------------
(Registrant)
Date: February 14, 1996 /s/ Gerald A. Teele
--------------------------------------
Gerald A. Teele
Senior Vice President, Treasurer and
Chief Financial Officer
(Principal Financial Officer)
Date: February 14, 1996 /s/ Charles W. Siska, Jr.
---------------------------------------
Charles W. Siska, Jr.
Controller
(Principal Accounting Officer)
<PAGE> 18
NORTH CAROLINA NATURAL GAS CORPORATION AND SUBSIDIARIES
INDEX OF EXHIBITS
The following exhibit is filed as part of this Form 10-Q for the
period ended December 31, 1995:
Exhibit
Number
27 - Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> UT
<CIK> 0000072596
<NAME> NORTH CAROLINA NATURAL GAS CORPORATION
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> DEC-31-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 180,579
<OTHER-PROPERTY-AND-INVEST> 3,282
<TOTAL-CURRENT-ASSETS> 48,295
<TOTAL-DEFERRED-CHARGES> 2,379
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 234,535
<COMMON> 16,235
<CAPITAL-SURPLUS-PAID-IN> 27,851
<RETAINED-EARNINGS> 51,363
<TOTAL-COMMON-STOCKHOLDERS-EQ> 95,449
0
0
<LONG-TERM-DEBT-NET> 65,000
<SHORT-TERM-NOTES> 4,000
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 2,000
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 68,086
<TOT-CAPITALIZATION-AND-LIAB> 234,535
<GROSS-OPERATING-REVENUE> 46,808
<INCOME-TAX-EXPENSE> 2,146
<OTHER-OPERATING-EXPENSES> 39,708
<TOTAL-OPERATING-EXPENSES> 41,854
<OPERATING-INCOME-LOSS> 4,954
<OTHER-INCOME-NET> 658
<INCOME-BEFORE-INTEREST-EXPEN> 5,612
<TOTAL-INTEREST-EXPENSE> 1,345
<NET-INCOME> 4,267
0
<EARNINGS-AVAILABLE-FOR-COMM> 4,267
<COMMON-STOCK-DIVIDENDS> 1,976
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 2,641
<EPS-PRIMARY> $0.66
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