Return of investment capital



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| FINANCIAL STATEMENTS |  |

PIEDMONT NATURAL GAS COMPANY, INC.Condensed Consolidated Statements of Cash Flows(Unaudited)

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|  | Nine Months Ended |
|  | September 30, |
| (in millions) | 2022 |  | 2021 |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |  |
| Net income | $ | 180  |  |  | $ | 175  |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| Depreciation and amortization | 168  |  |  | 152  |  |
| Equity component of AFUDC | (7) |  |  | (19) |  |
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| Impairment of assets and other charges | 1  |  |  | 10  |  |
| Deferred income taxes | 13  |  |  | 10  |  |
| Equity in earnings from unconsolidated affiliates | (5) |  |  | (7) |  |
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| Contributions to qualified pension plans | (2) |  |  | —  |  |
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| Provision for rate refunds | (3) |  |  | (3) |  |
| (Increase) decrease in |  |  |  |
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| Receivables | 198  |  |  | 151  |  |
| Receivables from affiliated companies | 1  |  |  | (1) |  |
| Inventory | (26) |  |  | —  |  |
| Other current assets | (91) |  |  | 7  |  |
| Increase (decrease) in |  |  |  |
| Accounts payable | 24  |  |  | (55) |  |
| Accounts payable to affiliated companies | (5) |  |  | (48) |  |
| Taxes accrued | (18) |  |  | 17  |  |
| Other current liabilities | 23  |  |  | (32) |  |
| Other assets | (8) |  |  | 3  |  |
| Other liabilities | (3) |  |  | 2  |  |
| Net cash provided by operating activities | 440  |  |  | 362  |  |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |  |
| Capital expenditures | (598) |  |  | (628) |  |
| Contributions to equity method investments | (8) |  |  | (9) |  |
| Return of investment capital | —  |  |  | 1  |  |
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| Other | (17) |  |  | (23) |  |
| Net cash used in investing activities | (623) |  |  | (659) |  |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |  |
| Proceeds from the issuance of long-term debt | 394  |  |  | 347  |  |
| Payments for the redemption of long-term debt | —  |  |  | (160) |  |
| Notes payable to affiliated companies | (210) |  |  | (215) |  |
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| Capital contributions from parent | —  |  |  | 325  |  |
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| Other | (1) |  |  | —  |  |
| Net cash provided by financing activities | 183  |  |  | 297  |  |
| Net increase in cash and cash equivalents | —  |  |  | —  |  |
| Cash and cash equivalents at beginning of period | —  |  |  | —  |  |
| Cash and cash equivalents at end of period | $ | —  |  |  | $ | —  |  |
| Supplemental Disclosures: |  |  |  |
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| Significant non-cash transactions: |  |  |  |
| Accrued capital expenditures | $ | 163  |  |  | $ | 115  |  |
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See Notes to Condensed Consolidated Financial Statements41
