Nicor Inc. (NYSE:GAS) reported better-than-expected fourth quarter results as heating demand driven by colder weather boosted the results of the natural gas utility.
Fourth quarter EPS was $1.05, compared with analysts’ estimates of $0.67, and EPS for the year was $2.63, compared with estimates of $2.27. Compared with 2007 earnings, Nicor’s fourth quarter is down by 14% and the full year is down by 12%.
The company is seeking a rate increase in Illinois, and a preliminary ruling has proposed an increase to the rate base of 7.57% ($68.8 million), which was less than the 9.27% ($140.4 million) that Nicor had sought. The company expects a final ruling by March 25th, after the state has a chance to review comments.
Nicor’s outlook for 2009 depends “significantly on the gas distribution business’ pending rate case.” The company estimates 2009 EPS of $2.45-$2.65, if the rate case is finalized at the currently proposed rate. The lowered outlook for 2009 “reflects lower expected results in the company’s gas distribution and shipping businesses and higher results in its other energy-related businesses.”
Nicor shares opened nearly 7% higher this morning, at $31.44. Go figure.
Paul Ausick
February 25, 2009
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