<PAGE> 1
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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 April 30, 1998
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 1-6196
PIEDMONT NATURAL GAS COMPANY, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
North Carolina 56-0556998
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1915 Rexford Road, Charlotte, North Carolina 28211
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 704-364-3120
----------------------------
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.
Class Outstanding at June 4, 1998
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Common Stock, no par value 30,510,927
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Page 1 of 11 pages
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PIEDMONT NATURAL GAS COMPANY, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
----------------------------------------------------------------
<TABLE>
<CAPTION>
April 30, October 31,
1998 1997
ASSETS Unaudited Audited
---------- ----------
<S> <C> <C>
Utility Plant, at original cost $1,289,833 $1,256,772
Less accumulated depreciation 362,473 342,418
---------- ----------
Utility plant, net 927,360 914,354
---------- ----------
Other Physical Property (net of accumulated
depreciation of $16,930 in 1998 and $15,947 in 1997) 26,591 27,382
---------- ----------
Current Assets:
Cash and cash equivalents 62,282 5,210
Restricted cash 25,316 21,385
Receivables (less allowance for doubtful
accounts of $3,107 in 1998 and $2,027 in 1997) 62,007 32,367
Gas in storage 22,071 47,676
Deferred cost of gas 7,360 7,327
Refundable income taxes 2,068 7,115
Other 9,250 11,076
---------- ----------
Total current assets 190,354 132,156
---------- ----------
Deferred Charges and Other Assets 23,030 24,264
---------- ----------
Total $1,167,335 $1,098,156
========== ==========
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock equity:
Common stock $ 272,070 $ 262,576
Retained earnings 214,841 157,250
---------- ----------
Total common stock equity 486,911 419,826
Long-term debt 381,000 381,000
---------- ----------
Total capitalization 867,911 800,826
---------- ----------
Current Liabilities:
Current maturities of long-term debt and
sinking fund requirements 10,000 10,000
Notes payable 0 25,000
Accounts payable 62,738 65,103
Deferred income taxes 3,508 10,276
Taxes accrued 14,603 11,041
Refunds due customers 44,884 15,097
Other 17,451 19,012
---------- ----------
Total current liabilities 153,184 155,529
---------- ----------
Deferred Credits and Other Liabilities 146,240 141,801
---------- ----------
Total $1,167,335 $1,098,156
========== ==========
</TABLE>
See notes to condensed consolidated financial statements.
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<PAGE> 3
PIEDMONT NATURAL GAS COMPANY, INC. AND SUBSIDIARIES
Condensed Statements of Consolidated Income (Unaudited)
(in thousands except per share amounts)
-------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Six Months Twelve Months
Ended Ended Ended
April 30 April 30 April 30
------------------- ------------------- -------------------
1998 1997 1998 1997 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Operating Revenues $261,477 $259,306 $574,732 $571,839 $778,411 $758,262
Cost of Gas 147,496 150,187 337,658 344,350 453,974 451,698
-------- -------- -------- -------- -------- --------
Margin 113,981 109,119 237,074 227,489 324,437 306,564
-------- -------- -------- -------- -------- --------
Other Operating Expenses:
Operations 25,958 26,233 51,523 53,207 109,005 107,168
Maintenance 3,389 4,163 6,761 8,500 14,421 17,047
Depreciation 10,491 9,663 20,981 19,391 40,777 37,400
General taxes 8,811 9,229 20,301 20,652 32,531 33,271
Income taxes 22,406 20,208 47,588 42,729 36,823 30,654
-------- -------- -------- -------- -------- --------
Total other operating expenses 71,055 69,496 147,154 144,479 233,557 225,540
-------- -------- -------- -------- -------- --------
Operating Income 42,926 39,623 89,920 83,010 90,880 81,024
Other Income, Net 951 1,111 3,476 3,673 3,864 3,490
-------- -------- -------- -------- -------- --------
Income Before Utility Interest Charges 43,877 40,734 93,396 86,683 94,744 84,514
Utility Interest Charges 8,414 8,460 16,684 17,097 33,543 32,914
-------- -------- -------- -------- -------- --------
Net Income $ 35,463 $ 32,274 $ 76,712 $ 69,586 $ 61,201 $ 51,600
======== ======== ======== ======== ======== ========
Average Shares of Common Stock Outstanding:
Basic 30,414 29,807 30,343 29,725 30,189 29,537
Diluted 30,696 29,971 30,637 29,892 30,465 29,702
Earnings Per Share:
Basic $ 1.17 $ 1.08 $ 2.53 $ 2.34 $ 2.03 $ 1.75
Diluted $ 1.16 $ 1.08 $ 2.50 $ 2.33 $ 2.01 $ 1.74
Cash Dividends Declared Per Share
of Common Stock $ 0.325 0.305 $ 0.63 0.595 $ 1.24 1.175
</TABLE>
See notes to condensed consolidated financial statements.
-3-
<PAGE> 4
PIEDMONT NATURAL GAS COMPANY, INC. AND SUBSIDIARIES
Condensed Statements of Consolidated Cash Flows (Unaudited)
(in thousands)
-----------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Six Months Twelve Months
Ended Ended Ended
April 30 April 30 April 30
------------------- ------------------- -------------------
1998 1997 1998 1997 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Cash Flows from Operating Activities:
Net income $ 35,463 $ 32,274 $ 76,712 $ 69,586 $ 61,201 $ 51,600
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 11,549 11,013 23,089 22,107 44,950 42,158
Other, net 88 2,845 2,010 4,593 6,876 7,799
Change in operating assets and liabilities 53,265 58,684 26,016 52,669 5,275 10,334
--------- --------- --------- --------- --------- ---------
Net cash provided by operating activities 100,365 104,816 127,827 148,955 118,302 111,891
--------- --------- --------- --------- --------- ---------
Cash Flows from Investing Activities:
Utility construction expenditures (17,237) (22,998) (33,795) (43,937) (81,891) (94,544)
Other (26) (274) (336) (410) (1,520) (2,351)
--------- --------- --------- --------- --------- ---------
Net cash used in investing activities (17,263) (23,272) (34,131) (44,347) (83,411) (96,895)
--------- --------- --------- --------- --------- ---------
Cash Flows from Financing Activities:
Increase (Decrease) in bank loans, net (30,000) (26,000) (25,000) (39,000) -- --
Issuance of long-term debt -- -- -- -- -- 40,000
Retirement of long-term debt -- -- -- -- (10,000) (7,000)
Issuance of common stock through dividend
reinvestment and employee stock plans 3,809 3,715 7,497 7,216 14,701 16,272
Dividends paid (9,883) (9,090) (19,121) (17,687) (37,441) (34,714)
--------- --------- --------- --------- --------- ---------
Net cash provided by (used in)
financing activities (36,074) (31,375) (36,624) (49,471) (32,740) 14,558
--------- --------- --------- --------- --------- ---------
Net Increase in Cash and Cash Equivalents 47,028 50,169 57,072 55,137 2,151 29,554
Cash and Cash Equivalents at Beginning of Period 15,254 9,962 5,210 4,994 60,131 30,577
--------- --------- --------- --------- --------- ---------
Cash and Cash Equivalents at End of Period $ 62,282 $ 60,131 $ 62,282 $ 60,131 $ 62,282 $ 60,131
========= ========= ========= ========= ========= =========
Cash Paid During the Period for:
Interest $ 5,123 $ 5,438 $ 16,615 $ 16,118 $ 33,821 $ 32,899
Income taxes $ 44,061 $ 33,740 $ 46,576 $ 34,279 $ 46,933 $ 66,395
</TABLE>
See notes to condensed consolidated financial statements.
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<PAGE> 5
PIEDMONT NATURAL GAS COMPANY, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
1. The condensed consolidated financial statements have not been audited
by independent auditors. These financial statements should be read in
conjunction with the Notes to Consolidated Financial Statements
included in the Company's 1997 Annual Report.
2. In the opinion of the Company, the accompanying unaudited condensed
consolidated financial statements include all adjustments (consisting
only of normal recurring accruals) necessary to present fairly the
financial position of the Company at April 30, 1998, and October 31,
1997, and the results of its operations and its cash flows for the
three months, six months and twelve months ended April 30, 1998 and
1997.
3. The Company's business is seasonal in nature. The results of operations
for the three-month and six-month periods ended April 30, 1998, are not
necessarily indicative of the results to be expected for the full year.
4. Basic earnings per share are computed based on the weighted average
number of shares of Common Stock outstanding during each period.
Effective January 1, 1998, the Company adopted Statement of Financial
Accounting Standards No. 128, "Earnings Per Share". A reconciliation of
basic and diluted earnings per share is presented below:
<TABLE>
<CAPTION>
Three Months Six Months Twelve Months
Ended Ended Ended
April 30 April 30 April 30
-------------------- -------------------- --------------------
(in thousands except per share amounts)
1998 1997 1998 1997 1998 1997
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Income $35,463 $32,274 $76,712 $69,586 $61,201 $51,600
======= ======= ======= ======= ======= =======
Average Shares of Common Stock
Outstanding for Basic Earnings Per Share 30,414 29,807 30,343 29,725 30,189 29,537
Contingently Issuable Shares Under
the Long-Term Incentive Plan 282 164 294 167 276 165
------- ------- ------- ------- ------- -------
Average Shares of Dilutive Stock 30,696 29,971 30,637 29,892 30,465 29,702
======= ======= ======= ======= ======= =======
Earnings Per Share:
Basic $ 1.17 $ 1.08 $ 2.53 $ 2.34 $ 2.03 $ 1.75
Diluted $ 1.16 $ 1.08 $ 2.50 $ 2.33 $ 2.01 $ 1.74
</TABLE>
-5-
<PAGE> 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Financial Condition
The Company finances its current cash requirements through internally generated
cash, the issuance of new common stock through dividend reinvestment and
employee stock purchase plans and committed bank lines of credit totaling $75
million. In addition, the Company sells common stock and long-term debt to cover
cash requirements when market or other conditions warrant such long-term
financing.
Because of the seasonal nature of the natural gas business, a substantial
portion of the annual earnings are realized in the winter period, which is the
first six months of the fiscal year. Injections of natural gas into storage
occur during periods of warm weather (principally April 1 through October 31)
for withdrawal from storage during periods of cold weather (principally November
1 through March 31). Due to this seasonality and the demand for gas during the
winter season, inventory of stored gas decreased and receivables increased from
October 31, 1997, to April 30, 1998.
The Company has a substantial capital expansion program to sustain its
approximately 6% current annual growth in customer base. The capital expansion
program is dependent on the continuing ability to generate the necessary funds
required for this growth. Utility construction expenditures for the three, six
and twelve months ended April 30, 1998, were $17.7 million, $34.8 million and
$83.4 million, respectively, compared with $23.4 million, $44.8 million and $96
million, respectively, for similar prior periods.
At April 30, 1998, capitalization consisted of long-term debt of 44% and common
equity of 56%.
Results of Operations
Margin for the three months ended April 30, 1998, increased $4.9 million
compared with the same period last year due to regulatory-approved changes and
increased volumes of gas sold or transported, including secondary market
transactions. Delivered volumes of natural gas (system throughput) for the
current three-month period increased over the similar prior period by 2.7
million dekatherms, a 6% increase. Volumes from secondary market sales increased
over the similar prior period by 1.7 million dekatherms, a 16% increase. Weather
for the three months ended April 30, 1998, was 9% colder than the similar prior
period. The weather normalization adjustment (WNA), in effect from November 1
through March 31, increased operating revenues by $5.8 million for the three
months ended April 30, 1998, compared with an increase of $8.9 million for the
similar prior period.
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<PAGE> 7
Margin for the six months ended April 30, 1998, increased $9.6 million compared
with the similar prior period due to regulatory-approved changes and increased
volumes of gas sold or transported, including secondary market transactions.
System throughput for the current six months increased over the similar prior
period by 5.5 million dekatherms, a 6% increase. Volumes from secondary market
sales increased over the similar prior period by 7.2 million dekatherms, a 48%
increase. Weather for the six months ended April 30, 1998, was 2% colder than
the similar prior period. The WNA increased operating revenues by $5 million in
the current six-month period, compared with an increase of $10.6 million for the
similar prior period.
Margin for the twelve months ended April 30, 1998, increased $17.9 million
compared with the similar prior period due to regulatory-approved changes and
increased volumes of gas sold or transported, including secondary market
transactions. System throughput for the current twelve months increased over the
similar prior period by 8.9 million dekatherms, a 7% increase. Volumes from
secondary market sales increased over the similar prior period by 7.3 million
dekatherms, a 30% increase. Weather for the twelve months ended April 30, 1998,
was 4% colder than the similar prior period. The WNA increased operating
revenues by $5 million in the current twelve-month period, compared with an
increase of $10.6 million for the similar prior period.
The Company's rate schedules include gas cost recovery provisions that permit
the recovery of prudently incurred gas costs. Annual prudence reviews covering a
historical twelve-month period are required in North Carolina and South Carolina
but are not required in Tennessee. Rates in all three states are revised
periodically without formal rate proceedings to reflect changes in the cost of
gas. Charges to cost of gas are based on the amount recoverable under approved
rate schedules. The net of any over- or under-recoveries of gas costs is charged
or credited to cost of gas and included in refunds due customers in the
financial statements.
Operations and maintenance expenses for the three months, six months and twelve
months ended April 30, 1998, decreased from similar prior periods primarily due
to decreases in rental payments, advertising, office supplies and employee
benefit costs. These decreases were partially offset by increases in outside
labor, and for the twelve-month period, by increases in payroll and the
provision for uncollectibles.
Depreciation expense for the three months, six months and twelve months ended
April 30, 1998, increased over similar prior periods due to the growth of plant
in service.
General taxes for the three months, six months and twelve months ended April 30,
1998, decreased from similar prior periods
-7-
<PAGE> 8
primarily due to decreases in gross receipts taxes, partially offset by
increases in payroll taxes. The decrease in the three-month period also included
a decrease in franchise taxes from the similar prior period.
Other income for the three months and six months ended April 30, 1998, decreased
from similar prior periods primarily due to decreases in earnings from
merchandise activities and energy marketing services. The decrease in the
three-month period was partially offset by an increase in earnings from propane
operations. The six-month period was decreased further by a decrease in earnings
from propane operations. Other income for the twelve months ended April 30,
1998, increased over the similar prior period due to increases in earnings from
propane operations and jobbing activities as well as increases in interest
income and income from the performance incentive plan in Tennessee. The increase
in the twelve-month period was partially offset by decreases in earnings from
energy marketing services and merchandise operations.
Utility interest charges for the three months and six months ended April 30,
1998, decreased from similar prior periods primarily due to decreases in
interest on long-term debt due to lower balances outstanding and interest on
short-term debt due to lower balances outstanding but at slightly higher
interest rates. The decrease in the three-month and six-month periods was
partially offset by an increase in interest on refunds due customers due to
higher balances outstanding. Utility interest charges for the twelve months
ended April 30, 1998, increased over the similar prior period due to increases
in interest from higher balances outstanding on long-term debt and refunds due
customers. The increase in the twelve-month period was partially offset by a
decrease in interest on short-term debt due to lower amounts outstanding during
the period.
-8-
<PAGE> 9
PART II. OTHER INFORMATION
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits -
12 Computation of Ratio of Earnings to Fixed Charges.
27.498 Financial Data Schedule (for Securities and Exchange
Commission use only).
27.497 Financial Data Schedule (for Securities and Exchange
Commission use only).
27.197 Financial Data Schedule (for Securities and Exchange
Commission use only).
27.797 Financial Data Schedule (for Securities and Exchange
Commission use only).
27.1097 Financial Data Schedule (for Securities and Exchange
Commission use only).
27.1096 Financial Data Schedule (for Securities and Exchange
Commission use only).
27.1095 Financial Data Schedule (for Securities and Exchange
Commission use only).
(b) Reports on Form 8-K -
None.
-9-
<PAGE> 10
SIGNATURES
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.
PIEDMONT NATURAL GAS COMPANY, INC.
(Registrant)
Date June 11, 1998 /s/ David J. Dzuricky
--------------- --------------------------
David J. Dzuricky
Senior Vice President-Finance
(Principal Financial Officer)
Date June 11, 1998 /s/ Barry L. Guy
--------------- ---------------------
Barry L. Guy
Vice President and Controller
(Principal Accounting Officer)
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<PAGE> 1
Exhibit 12
PIEDMONT NATURAL GAS COMPANY, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
For Fiscal Years Ended October 31, 1993 through 1997
and Twelve Months Ended April 30, 1998
(in thousands except ratio amounts)
<TABLE>
<CAPTION>
April 30,
1998 1997 1996 1995 1994 1993
-------- -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Earnings:
Net income from
continuing operations $ 61,201 $ 54,074 $ 48,562 $ 40,310 $35,506 $37,534
Income taxes 39,386 34,650 30,928 25,442 21,407 23,427
Fixed charges 38,162 39,263 37,009 35,651 29,736 26,715
-------- -------- -------- -------- ------- -------
Total Adjusted Earnings $138,749 $127,987 $116,499 $101,403 $86,649 $87,676
======== ======== ======== ======== ======= =======
Fixed Charges:
Interest $ 36,507 $ 36,949 $ 34,511 $ 33,224 $27,671 $24,870
Amortization of debt
expense 319 346 345 336 334 192
One-third of rental expense 1,336 1,968 2,153 2,091 1,731 1,653
-------- -------- -------- -------- ------- -------
Total Fixed Charges $ 38,162 $ 39,263 $ 37,009 $ 35,651 $29,736 $26,715
======== ======== ======== ======== ======= =======
Ratio of Earnings to Fixed
Charges 3.64 3.26 3.15 2.84 2.91 3.28
======== ======== ======== ======== ======= =======
</TABLE>
-11-
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PIEDMONT
NATURAL GAS COMPANY FINANCIAL STATEMENTS DATED APRIL 30, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> APR-30-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 927,360
<OTHER-PROPERTY-AND-INVEST> 26,591
<TOTAL-CURRENT-ASSETS> 190,354
<TOTAL-DEFERRED-CHARGES> 23,030
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 1,167,335
<COMMON> 272,070
<CAPITAL-SURPLUS-PAID-IN> 0
<RETAINED-EARNINGS> 214,841
<TOTAL-COMMON-STOCKHOLDERS-EQ> 486,911
0
0
<LONG-TERM-DEBT-NET> 381,000
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 10,000
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 289,424
<TOT-CAPITALIZATION-AND-LIAB> 1,167,335
<GROSS-OPERATING-REVENUE> 574,732
<INCOME-TAX-EXPENSE> 47,588
<OTHER-OPERATING-EXPENSES> 437,224
<TOTAL-OPERATING-EXPENSES> 484,812
<OPERATING-INCOME-LOSS> 89,920
<OTHER-INCOME-NET> 3,476
<INCOME-BEFORE-INTEREST-EXPEN> 93,396
<TOTAL-INTEREST-EXPENSE> 16,684
<NET-INCOME> 76,712
0
<EARNINGS-AVAILABLE-FOR-COMM> 76,712
<COMMON-STOCK-DIVIDENDS> 19,121
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 127,827
<EPS-PRIMARY> 2.53
<EPS-DILUTED> 2.50
</TABLE>
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PIEDMONT
NATURAL GAS COMPANY FINANCIAL STATEMENTS DATED APRIL 30, 1997 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> APR-30-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 886,708
<OTHER-PROPERTY-AND-INVEST> 26,265
<TOTAL-CURRENT-ASSETS> 187,641
<TOTAL-DEFERRED-CHARGES> 19,558
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 1,120,172
<COMMON> 255,373
<CAPITAL-SURPLUS-PAID-IN> 0
<RETAINED-EARNINGS> 191,082
<TOTAL-COMMON-STOCKHOLDERS-EQ> 446,455
0
0
<LONG-TERM-DEBT-NET> 391,000
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 10,000
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 272,717
<TOT-CAPITALIZATION-AND-LIAB> 1,120,172
<GROSS-OPERATING-REVENUE> 571,839
<INCOME-TAX-EXPENSE> 42,729
<OTHER-OPERATING-EXPENSES> 446,100
<TOTAL-OPERATING-EXPENSES> 488,829
<OPERATING-INCOME-LOSS> 83,010
<OTHER-INCOME-NET> 3,673
<INCOME-BEFORE-INTEREST-EXPEN> 86,683
<TOTAL-INTEREST-EXPENSE> 17,097
<NET-INCOME> 69,586
0
<EARNINGS-AVAILABLE-FOR-COMM> 69,586
<COMMON-STOCK-DIVIDENDS> 17,687
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 148,955
<EPS-PRIMARY> 2.34
<EPS-DILUTED> 2.33
</TABLE>
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PIEDMONT
NATURAL GAS COMPANY FINANCIAL STATEMENTS DATED JANUARY 31, 1997 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> JAN-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 873,041
<OTHER-PROPERTY-AND-INVEST> 26,633
<TOTAL-CURRENT-ASSETS> 209,059
<TOTAL-DEFERRED-CHARGES> 18,770
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 1,127,503
<COMMON> 251,658
<CAPITAL-SURPLUS-PAID-IN> 0
<RETAINED-EARNINGS> 167,898
<TOTAL-COMMON-STOCKHOLDERS-EQ> 419,556
0
0
<LONG-TERM-DEBT-NET> 391,000
<SHORT-TERM-NOTES> 26,000
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 10,000
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 280,947
<TOT-CAPITALIZATION-AND-LIAB> 1,127,503
<GROSS-OPERATING-REVENUE> 312,533
<INCOME-TAX-EXPENSE> 22,521
<OTHER-OPERATING-EXPENSES> 246,625
<TOTAL-OPERATING-EXPENSES> 269,146
<OPERATING-INCOME-LOSS> 43,387
<OTHER-INCOME-NET> 2,562
<INCOME-BEFORE-INTEREST-EXPEN> 45,949
<TOTAL-INTEREST-EXPENSE> 8,637
<NET-INCOME> 37,312
0
<EARNINGS-AVAILABLE-FOR-COMM> 37,312
<COMMON-STOCK-DIVIDENDS> 8,597
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 44,139
<EPS-PRIMARY> 1.26
<EPS-DILUTED> 1.26
</TABLE>
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PIEDMONT
NATURAL GAS COMPANY FINANCIAL STATEMENTS DATED JULY 31, 1997 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> JUL-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 903,312
<OTHER-PROPERTY-AND-INVEST> 26,284
<TOTAL-CURRENT-ASSETS> 138,605
<TOTAL-DEFERRED-CHARGES> 21,918
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 1,090,119
<COMMON> 259,228
<CAPITAL-SURPLUS-PAID-IN> 0
<RETAINED-EARNINGS> 176,168
<TOTAL-COMMON-STOCKHOLDERS-EQ> 435,396
0
0
<LONG-TERM-DEBT-NET> 389,000
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 10,000
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 255,723
<TOT-CAPITALIZATION-AND-LIAB> 1,090,119
<GROSS-OPERATING-REVENUE> 675,836
<INCOME-TAX-EXPENSE> 39,312
<OTHER-OPERATING-EXPENSES> 549,822
<TOTAL-OPERATING-EXPENSES> 589,134
<OPERATING-INCOME-LOSS> 86,702
<OTHER-INCOME-NET> 2,840
<INCOME-BEFORE-INTEREST-EXPEN> 89,542
<TOTAL-INTEREST-EXPENSE> 25,733
<NET-INCOME> 63,809
0
<EARNINGS-AVAILABLE-FOR-COMM> 63,809
<COMMON-STOCK-DIVIDENDS> 26,825
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 154,877
<EPS-PRIMARY> 2.14
<EPS-DILUTED> 2.12
</TABLE>
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PIEDMONT
NATURAL GAS COMPANY FINANCIAL STATEMENTS DATED OCTOBER 31, 1997 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 914,354
<OTHER-PROPERTY-AND-INVEST> 27,382
<TOTAL-CURRENT-ASSETS> 132,156
<TOTAL-DEFERRED-CHARGES> 24,264
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 1,098,156
<COMMON> 262,576
<CAPITAL-SURPLUS-PAID-IN> 0
<RETAINED-EARNINGS> 157,250
<TOTAL-COMMON-STOCKHOLDERS-EQ> 419,826
0
0
<LONG-TERM-DEBT-NET> 381,000
<SHORT-TERM-NOTES> 25,000
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 10,000
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 262,330
<TOT-CAPITALIZATION-AND-LIAB> 1,098,156
<GROSS-OPERATING-REVENUE> 775,517
<INCOME-TAX-EXPENSE> 31,948
<OTHER-OPERATING-EXPENSES> 659,583
<TOTAL-OPERATING-EXPENSES> 691,531
<OPERATING-INCOME-LOSS> 83,986
<OTHER-INCOME-NET> 4,084
<INCOME-BEFORE-INTEREST-EXPEN> 88,070
<TOTAL-INTEREST-EXPENSE> 33,996
<NET-INCOME> 54,074
0
<EARNINGS-AVAILABLE-FOR-COMM> 54,074
<COMMON-STOCK-DIVIDENDS> 36,008
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 139,455
<EPS-PRIMARY> 1.81
<EPS-DILUTED> 1.79
</TABLE>
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PIEDMONT
NATURAL GAS COMPANY FINANCIAL STATEMENTS DATED OCTOBER 31, 1996 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> OCT-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 862,029
<OTHER-PROPERTY-AND-INVEST> 27,072
<TOTAL-CURRENT-ASSETS> 157,987
<TOTAL-DEFERRED-CHARGES> 19,998
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 1,067,086
<COMMON> 246,907
<CAPITAL-SURPLUS-PAID-IN> 0
<RETAINED-EARNINGS> 139,184
<TOTAL-COMMON-STOCKHOLDERS-EQ> 386,091
0
0
<LONG-TERM-DEBT-NET> 391,000
<SHORT-TERM-NOTES> 39,000
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 10,000
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 240,995
<TOT-CAPITALIZATION-AND-LIAB> 1,067,086
<GROSS-OPERATING-REVENUE> 685,055
<INCOME-TAX-EXPENSE> 27,609
<OTHER-OPERATING-EXPENSES> 582,817
<TOTAL-OPERATING-EXPENSES> 610,426
<OPERATING-INCOME-LOSS> 74,629
<OTHER-INCOME-NET> 5,000
<INCOME-BEFORE-INTEREST-EXPEN> 79,629
<TOTAL-INTEREST-EXPENSE> 31,067
<NET-INCOME> 48,562
0
<EARNINGS-AVAILABLE-FOR-COMM> 48,562
<COMMON-STOCK-DIVIDENDS> 33,393
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 58,924
<EPS-PRIMARY> 1.67
<EPS-DILUTED> 1.66
</TABLE>
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PIEDMONT
NATURAL GAS COMPANY FINANCIAL STATEMENTS DATED OCTOBER 31, 1995 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 801,316
<OTHER-PROPERTY-AND-INVEST> 26,299
<TOTAL-CURRENT-ASSETS> 117,285
<TOTAL-DEFERRED-CHARGES> 19,995
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 964,895
<COMMON> 230,964
<CAPITAL-SURPLUS-PAID-IN> 0
<RETAINED-EARNINGS> 124,015
<TOTAL-COMMON-STOCKHOLDERS-EQ> 354,979
0
0
<LONG-TERM-DEBT-NET> 361,000
<SHORT-TERM-NOTES> 13,500
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 7,000
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 228,416
<TOT-CAPITALIZATION-AND-LIAB> 964,895
<GROSS-OPERATING-REVENUE> 505,223
<INCOME-TAX-EXPENSE> 22,511
<OTHER-OPERATING-EXPENSES> 417,400
<TOTAL-OPERATING-EXPENSES> 439,911
<OPERATING-INCOME-LOSS> 65,312
<OTHER-INCOME-NET> 4,476
<INCOME-BEFORE-INTEREST-EXPEN> 69,788
<TOTAL-INTEREST-EXPENSE> 29,478
<NET-INCOME> 40,310
0
<EARNINGS-AVAILABLE-FOR-COMM> 40,310
<COMMON-STOCK-DIVIDENDS> 30,564
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 90,885
<EPS-PRIMARY> 1.45
<EPS-DILUTED> 1.44
</TABLE>
