Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Atmos Energy Corporation Reports Earnings for Fiscal 2023 First Quarter; Affirms Fiscal 2023 Guidance By: Atmos Energy Corporation via Business Wire February 07, 2023 at 16:36 PM EST Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its first fiscal quarter ended December 31, 2022. Highlights Earnings per diluted share was $1.91 for the three months ended December 31, 2022. Consolidated net income was $271.9 million for the three months ended December 31, 2022. Capital expenditures totaled $795.7 million for the three months ended December 31, 2022, with approximately 88 percent of capital spending related to system safety and reliability investments. Outlook Earnings per diluted share for fiscal 2023 is expected to be in the range of $5.90 to $6.10. Capital expenditures are expected to approximate $2.7 billion in fiscal 2023. The company's Board of Directors has declared a quarterly dividend of $0.74 per common share. The indicated annual dividend for fiscal 2023 is $2.96, which represents an 8.8% increase over fiscal 2022. “Our first quarter results, reflect the dedication, focus and effort of all 4,800 Atmos Energy employees as we continued modernizing our natural gas distribution, transmission, and storage systems on our journey to be the safest provider of natural gas services," said Kevin Akers, President and CEO of Atmos Energy. "We remain well positioned to achieve our fiscal 2023 earnings per share guidance," Akers concluded. Results for the Three Months Ended December 31, 2022 Consolidated operating income increased $45.3 million to $321.2 million for the three months ended December 31, 2022, compared to $275.9 million in the prior year, primarily due to rate outcomes in both segments and customer growth in our distribution segment, partially offset by increased operation and maintenance and higher depreciation and property tax expenses due to increased capital investments. Distribution operating income increased $41.3 million to $231.8 million for the three months ended December 31, 2022, compared with $190.5 million in the prior-year quarter, primarily due to a $57.5 million increase in rates, a $5.7 million decrease in refunds of excess deferred taxes to customers and customer growth of $2.4 million, partially offset by a $13.2 million increase in operation and maintenance expense driven primarily by pipeline system maintenance and increased administrative costs and a $16.0 million increase in depreciation and property tax expenses. Pipeline and storage operating income increased $4.0 million to $89.4 million for the three months ended December 31, 2022, compared with $85.4 million in the prior year. Key operating drivers for this segment include a $21.0 million increase from our GRIP filing approved in fiscal 2022, partially offset by a $12.6 million increase in operation and maintenance expense driven primarily by system maintenance spending and a $4.4 million increase in depreciation and property tax expenses. Capital expenditures increased $111.5 million to $795.7 million for the three months ended December 31, 2022, compared with $684.2 million in the prior year, due to increased system modernization and expansion spending. For the three months ended December 31, 2022, the company generated operating cash flow of $188.9 million, compared to $61.8 million in the prior-year quarter. The year-over-year increase primarily reflects working capital changes, including the timing of payments for natural gas purchases and deferred gas cost recoveries and the positive effects of successful rate case outcomes achieved in the prior year. Our equity capitalization ratio at December 31, 2022 decreased to 52.9%, from 53.6% at September 30, 2022, due to $220.0 million in equity issuances under our forward equity agreements, partially offset by the issuance of $500 million of 5.75% senior notes and $300 million of 5.45% senior notes in October 2022. Excluding the $2.2 billion of incremental financing issued to pay for the purchased gas costs incurred during Winter Storm Uri, our equity capitalization ratio was 60.0% and 61.3% at December 31, 2022 and September 30, 2022. Conference Call to be Webcast February 8, 2023 Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2023 first quarter financial results on Wednesday, February 8, 2023, at 9:00 a.m. Eastern Time. The domestic telephone number is 877-407-3088 and the international telephone number is 201-389-0927. Kevin Akers, President and Chief Executive Officer, and Chris Forsythe, Senior Vice President and Chief Financial Officer, will participate in the conference call. The conference call will be webcast live on the Atmos Energy website at www.atmosenergy.com. A playback of the call will be available on the website later that day. Forward-Looking Statements The matters discussed in this news release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this news release are forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this news release or any of the company’s other documents or oral presentations, the words “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “goal”, “intend”, “objective”, “plan”, “projection”, “seek”, “strategy” or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in this presentation, including the risks relating to regulatory trends and decisions, the company’s ability to continue to access the credit and capital markets, and the other factors discussed in the company’s reports filed with the Securities and Exchange Commission. These risks and uncertainties include the following: federal, state and local regulatory and political trends and decisions, including the impact of rate proceedings before various state regulatory commissions; increased federal regulatory oversight and potential penalties; possible increased federal, state and local regulation of the safety of our operations; possible significant costs and liabilities resulting from pipeline integrity and other similar programs and related repairs; the inherent hazards and risks involved in distributing, transporting and storing natural gas; the availability and accessibility of contracted gas supplies, interstate pipeline and/or storage services; increased competition from energy suppliers and alternative forms of energy; failure to attract and retain a qualified workforce; natural disasters, terrorist activities or other events and other risks and uncertainties discussed herein, all of which are difficult to predict and many of which are beyond our control; increased dependence on technology that may hinder the Company's business if such technologies fail; the threat of cyber-attacks or acts of cyber-terrorism that could disrupt our business operations and information technology systems or result in the loss or exposure of confidential or sensitive customer, employee or Company information; the impact of new cybersecurity compliance requirements; adverse weather conditions; the impact of greenhouse gas emissions or other legislation or regulations intended to address climate change; the impact of climate change; the capital-intensive nature of our business; our ability to continue to access the credit and capital markets to execute our business strategy; market risks beyond our control affecting our risk management activities, including commodity price volatility, counterparty performance or creditworthiness and interest rate risk; the concentration of our operations in Texas; the impact of adverse economic conditions on our customers; changes in the availability and price of natural gas; and increased costs of providing health care benefits, along with pension and postretirement health care benefits and increased funding requirements. Accordingly, while we believe these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. Further, the company undertakes no obligation to update or revise any of our forward-looking statements whether as a result of new information, future events or otherwise. About Atmos Energy Atmos Energy Corporation, an S&P 500 company headquartered in Dallas, is the country’s largest natural gas-only distributor. We safely deliver reliable, affordable, efficient and abundant natural gas to more than 3 million distribution customers in over 1,400 communities across eight states located primarily in the South. As part of our vision to be the safest provider of natural gas services, we are modernizing our business and infrastructure while continuing to invest in safety, innovation, environmental sustainability and our communities. Atmos Energy manages proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas. Find us online at http://www.atmosenergy.com, Facebook, Twitter, Instagram and YouTube. This news release should be read in conjunction with the attached unaudited financial information. Atmos Energy Corporation Financial Highlights (Unaudited) Statements of Income Three Months Ended December 31 (000s except per share) 2022 2021 Operating revenues Distribution segment $ 1,440,426 $ 972,422 Pipeline and storage segment 186,629 162,918 Intersegment eliminations (143,046 ) (122,554 ) 1,484,009 1,012,786 Purchased gas cost Distribution segment 881,915 496,799 Pipeline and storage segment (858 ) (3,411 ) Intersegment eliminations (142,808 ) (122,225 ) 738,249 371,163 Operation and maintenance expense 185,016 159,110 Depreciation and amortization 146,020 127,856 Taxes, other than income 93,538 78,796 Operating income 321,186 275,861 Other non-operating income 21,191 8,702 Interest charges 36,760 19,851 Income before income taxes 305,617 264,712 Income tax expense 33,757 15,503 Net income $ 271,860 $ 249,209 Basic net income per share $ 1.92 $ 1.86 Diluted net income per share $ 1.91 $ 1.86 Cash dividends per share $ 0.74 $ 0.68 Basic weighted average shares outstanding 141,820 133,682 Diluted weighted average shares outstanding 141,937 133,689 Three Months Ended December 31 Summary Net Income by Segment (000s) 2022 2021 Distribution $ 194,468 $ 179,571 Pipeline and storage 77,392 69,638 Net income $ 271,860 $ 249,209 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Condensed Balance Sheets December 31, September 30, (000s) 2022 2022 Net property, plant and equipment $ 17,971,668 $ 17,240,239 Cash and cash equivalents 171,597 51,554 Accounts receivable, net 826,416 363,708 Gas stored underground 323,678 357,941 Other current assets 2,306,072 2,274,490 Total current assets 3,627,763 3,047,693 Goodwill 731,257 731,257 Deferred charges and other assets 1,035,473 1,173,800 $ 23,366,161 $ 22,192,989 Shareholders' equity $ 9,836,274 $ 9,419,091 Long-term debt 6,551,795 5,760,647 Total capitalization 16,388,069 15,179,738 Accounts payable and accrued liabilities 574,723 496,019 Other current liabilities 755,687 720,157 Short-term debt — 184,967 Current maturities of long-term debt 2,201,484 2,201,457 Total current liabilities 3,531,894 3,602,600 Deferred income taxes 2,075,596 1,999,505 Regulatory excess deferred taxes 345,799 385,213 Deferred credits and other liabilities 1,024,803 1,025,933 $ 23,366,161 $ 22,192,989 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Condensed Statements of Cash Flows Three Months Ended December 31 (000s) 2022 2021 Cash flows from operating activities Net income $ 271,860 $ 249,209 Depreciation and amortization 146,020 127,856 Deferred income taxes 29,693 11,813 Other (17,508 ) (12,689 ) Changes in other assets and liabilities (241,165 ) (314,365 ) Net cash provided by operating activities 188,900 61,824 Cash flows from investing activities Capital expenditures (795,660 ) (684,180 ) Debt and equity securities activities, net (2,472 ) 2,374 Other, net 5,621 2,058 Net cash used in investing activities (792,511 ) (679,748 ) Cash flows from financing activities Net decrease in short-term debt (184,967 ) — Proceeds from issuance of long-term debt, net of premium/discount 797,258 596,142 Net proceeds from equity issuances 220,000 261,943 Issuance of common stock through stock purchase and employee retirement plans 3,779 3,918 Cash dividends paid (104,552 ) (90,411 ) Debt issuance costs (7,864 ) (6,386 ) Net cash provided by financing activities 723,654 765,206 Net increase in cash and cash equivalents 120,043 147,282 Cash and cash equivalents at beginning of period 51,554 116,723 Cash and cash equivalents at end of period $ 171,597 $ 264,005 Three Months Ended December 31 Statistics 2022 2021 Consolidated distribution throughput (MMcf as metered) 140,678 108,142 Consolidated pipeline and storage transportation volumes (MMcf) 142,076 136,067 Distribution meters in service 3,460,006 3,412,929 Distribution average cost of gas $ 8.81 $ 7.14 View source version on businesswire.com: https://www.businesswire.com/news/home/20230207006071/en/Contacts Analysts and Media Contact: Dan Meziere (972) 855-3729 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Atmos Energy Corporation Reports Earnings for Fiscal 2023 First Quarter; Affirms Fiscal 2023 Guidance By: Atmos Energy Corporation via Business Wire February 07, 2023 at 16:36 PM EST Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its first fiscal quarter ended December 31, 2022. Highlights Earnings per diluted share was $1.91 for the three months ended December 31, 2022. Consolidated net income was $271.9 million for the three months ended December 31, 2022. Capital expenditures totaled $795.7 million for the three months ended December 31, 2022, with approximately 88 percent of capital spending related to system safety and reliability investments. Outlook Earnings per diluted share for fiscal 2023 is expected to be in the range of $5.90 to $6.10. Capital expenditures are expected to approximate $2.7 billion in fiscal 2023. The company's Board of Directors has declared a quarterly dividend of $0.74 per common share. The indicated annual dividend for fiscal 2023 is $2.96, which represents an 8.8% increase over fiscal 2022. “Our first quarter results, reflect the dedication, focus and effort of all 4,800 Atmos Energy employees as we continued modernizing our natural gas distribution, transmission, and storage systems on our journey to be the safest provider of natural gas services," said Kevin Akers, President and CEO of Atmos Energy. "We remain well positioned to achieve our fiscal 2023 earnings per share guidance," Akers concluded. Results for the Three Months Ended December 31, 2022 Consolidated operating income increased $45.3 million to $321.2 million for the three months ended December 31, 2022, compared to $275.9 million in the prior year, primarily due to rate outcomes in both segments and customer growth in our distribution segment, partially offset by increased operation and maintenance and higher depreciation and property tax expenses due to increased capital investments. Distribution operating income increased $41.3 million to $231.8 million for the three months ended December 31, 2022, compared with $190.5 million in the prior-year quarter, primarily due to a $57.5 million increase in rates, a $5.7 million decrease in refunds of excess deferred taxes to customers and customer growth of $2.4 million, partially offset by a $13.2 million increase in operation and maintenance expense driven primarily by pipeline system maintenance and increased administrative costs and a $16.0 million increase in depreciation and property tax expenses. Pipeline and storage operating income increased $4.0 million to $89.4 million for the three months ended December 31, 2022, compared with $85.4 million in the prior year. Key operating drivers for this segment include a $21.0 million increase from our GRIP filing approved in fiscal 2022, partially offset by a $12.6 million increase in operation and maintenance expense driven primarily by system maintenance spending and a $4.4 million increase in depreciation and property tax expenses. Capital expenditures increased $111.5 million to $795.7 million for the three months ended December 31, 2022, compared with $684.2 million in the prior year, due to increased system modernization and expansion spending. For the three months ended December 31, 2022, the company generated operating cash flow of $188.9 million, compared to $61.8 million in the prior-year quarter. The year-over-year increase primarily reflects working capital changes, including the timing of payments for natural gas purchases and deferred gas cost recoveries and the positive effects of successful rate case outcomes achieved in the prior year. Our equity capitalization ratio at December 31, 2022 decreased to 52.9%, from 53.6% at September 30, 2022, due to $220.0 million in equity issuances under our forward equity agreements, partially offset by the issuance of $500 million of 5.75% senior notes and $300 million of 5.45% senior notes in October 2022. Excluding the $2.2 billion of incremental financing issued to pay for the purchased gas costs incurred during Winter Storm Uri, our equity capitalization ratio was 60.0% and 61.3% at December 31, 2022 and September 30, 2022. Conference Call to be Webcast February 8, 2023 Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2023 first quarter financial results on Wednesday, February 8, 2023, at 9:00 a.m. Eastern Time. The domestic telephone number is 877-407-3088 and the international telephone number is 201-389-0927. Kevin Akers, President and Chief Executive Officer, and Chris Forsythe, Senior Vice President and Chief Financial Officer, will participate in the conference call. The conference call will be webcast live on the Atmos Energy website at www.atmosenergy.com. A playback of the call will be available on the website later that day. Forward-Looking Statements The matters discussed in this news release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this news release are forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this news release or any of the company’s other documents or oral presentations, the words “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “goal”, “intend”, “objective”, “plan”, “projection”, “seek”, “strategy” or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in this presentation, including the risks relating to regulatory trends and decisions, the company’s ability to continue to access the credit and capital markets, and the other factors discussed in the company’s reports filed with the Securities and Exchange Commission. These risks and uncertainties include the following: federal, state and local regulatory and political trends and decisions, including the impact of rate proceedings before various state regulatory commissions; increased federal regulatory oversight and potential penalties; possible increased federal, state and local regulation of the safety of our operations; possible significant costs and liabilities resulting from pipeline integrity and other similar programs and related repairs; the inherent hazards and risks involved in distributing, transporting and storing natural gas; the availability and accessibility of contracted gas supplies, interstate pipeline and/or storage services; increased competition from energy suppliers and alternative forms of energy; failure to attract and retain a qualified workforce; natural disasters, terrorist activities or other events and other risks and uncertainties discussed herein, all of which are difficult to predict and many of which are beyond our control; increased dependence on technology that may hinder the Company's business if such technologies fail; the threat of cyber-attacks or acts of cyber-terrorism that could disrupt our business operations and information technology systems or result in the loss or exposure of confidential or sensitive customer, employee or Company information; the impact of new cybersecurity compliance requirements; adverse weather conditions; the impact of greenhouse gas emissions or other legislation or regulations intended to address climate change; the impact of climate change; the capital-intensive nature of our business; our ability to continue to access the credit and capital markets to execute our business strategy; market risks beyond our control affecting our risk management activities, including commodity price volatility, counterparty performance or creditworthiness and interest rate risk; the concentration of our operations in Texas; the impact of adverse economic conditions on our customers; changes in the availability and price of natural gas; and increased costs of providing health care benefits, along with pension and postretirement health care benefits and increased funding requirements. Accordingly, while we believe these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. Further, the company undertakes no obligation to update or revise any of our forward-looking statements whether as a result of new information, future events or otherwise. About Atmos Energy Atmos Energy Corporation, an S&P 500 company headquartered in Dallas, is the country’s largest natural gas-only distributor. We safely deliver reliable, affordable, efficient and abundant natural gas to more than 3 million distribution customers in over 1,400 communities across eight states located primarily in the South. As part of our vision to be the safest provider of natural gas services, we are modernizing our business and infrastructure while continuing to invest in safety, innovation, environmental sustainability and our communities. Atmos Energy manages proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas. Find us online at http://www.atmosenergy.com, Facebook, Twitter, Instagram and YouTube. This news release should be read in conjunction with the attached unaudited financial information. Atmos Energy Corporation Financial Highlights (Unaudited) Statements of Income Three Months Ended December 31 (000s except per share) 2022 2021 Operating revenues Distribution segment $ 1,440,426 $ 972,422 Pipeline and storage segment 186,629 162,918 Intersegment eliminations (143,046 ) (122,554 ) 1,484,009 1,012,786 Purchased gas cost Distribution segment 881,915 496,799 Pipeline and storage segment (858 ) (3,411 ) Intersegment eliminations (142,808 ) (122,225 ) 738,249 371,163 Operation and maintenance expense 185,016 159,110 Depreciation and amortization 146,020 127,856 Taxes, other than income 93,538 78,796 Operating income 321,186 275,861 Other non-operating income 21,191 8,702 Interest charges 36,760 19,851 Income before income taxes 305,617 264,712 Income tax expense 33,757 15,503 Net income $ 271,860 $ 249,209 Basic net income per share $ 1.92 $ 1.86 Diluted net income per share $ 1.91 $ 1.86 Cash dividends per share $ 0.74 $ 0.68 Basic weighted average shares outstanding 141,820 133,682 Diluted weighted average shares outstanding 141,937 133,689 Three Months Ended December 31 Summary Net Income by Segment (000s) 2022 2021 Distribution $ 194,468 $ 179,571 Pipeline and storage 77,392 69,638 Net income $ 271,860 $ 249,209 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Condensed Balance Sheets December 31, September 30, (000s) 2022 2022 Net property, plant and equipment $ 17,971,668 $ 17,240,239 Cash and cash equivalents 171,597 51,554 Accounts receivable, net 826,416 363,708 Gas stored underground 323,678 357,941 Other current assets 2,306,072 2,274,490 Total current assets 3,627,763 3,047,693 Goodwill 731,257 731,257 Deferred charges and other assets 1,035,473 1,173,800 $ 23,366,161 $ 22,192,989 Shareholders' equity $ 9,836,274 $ 9,419,091 Long-term debt 6,551,795 5,760,647 Total capitalization 16,388,069 15,179,738 Accounts payable and accrued liabilities 574,723 496,019 Other current liabilities 755,687 720,157 Short-term debt — 184,967 Current maturities of long-term debt 2,201,484 2,201,457 Total current liabilities 3,531,894 3,602,600 Deferred income taxes 2,075,596 1,999,505 Regulatory excess deferred taxes 345,799 385,213 Deferred credits and other liabilities 1,024,803 1,025,933 $ 23,366,161 $ 22,192,989 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Condensed Statements of Cash Flows Three Months Ended December 31 (000s) 2022 2021 Cash flows from operating activities Net income $ 271,860 $ 249,209 Depreciation and amortization 146,020 127,856 Deferred income taxes 29,693 11,813 Other (17,508 ) (12,689 ) Changes in other assets and liabilities (241,165 ) (314,365 ) Net cash provided by operating activities 188,900 61,824 Cash flows from investing activities Capital expenditures (795,660 ) (684,180 ) Debt and equity securities activities, net (2,472 ) 2,374 Other, net 5,621 2,058 Net cash used in investing activities (792,511 ) (679,748 ) Cash flows from financing activities Net decrease in short-term debt (184,967 ) — Proceeds from issuance of long-term debt, net of premium/discount 797,258 596,142 Net proceeds from equity issuances 220,000 261,943 Issuance of common stock through stock purchase and employee retirement plans 3,779 3,918 Cash dividends paid (104,552 ) (90,411 ) Debt issuance costs (7,864 ) (6,386 ) Net cash provided by financing activities 723,654 765,206 Net increase in cash and cash equivalents 120,043 147,282 Cash and cash equivalents at beginning of period 51,554 116,723 Cash and cash equivalents at end of period $ 171,597 $ 264,005 Three Months Ended December 31 Statistics 2022 2021 Consolidated distribution throughput (MMcf as metered) 140,678 108,142 Consolidated pipeline and storage transportation volumes (MMcf) 142,076 136,067 Distribution meters in service 3,460,006 3,412,929 Distribution average cost of gas $ 8.81 $ 7.14 View source version on businesswire.com: https://www.businesswire.com/news/home/20230207006071/en/Contacts Analysts and Media Contact: Dan Meziere (972) 855-3729
Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its first fiscal quarter ended December 31, 2022. Highlights Earnings per diluted share was $1.91 for the three months ended December 31, 2022. Consolidated net income was $271.9 million for the three months ended December 31, 2022. Capital expenditures totaled $795.7 million for the three months ended December 31, 2022, with approximately 88 percent of capital spending related to system safety and reliability investments. Outlook Earnings per diluted share for fiscal 2023 is expected to be in the range of $5.90 to $6.10. Capital expenditures are expected to approximate $2.7 billion in fiscal 2023. The company's Board of Directors has declared a quarterly dividend of $0.74 per common share. The indicated annual dividend for fiscal 2023 is $2.96, which represents an 8.8% increase over fiscal 2022. “Our first quarter results, reflect the dedication, focus and effort of all 4,800 Atmos Energy employees as we continued modernizing our natural gas distribution, transmission, and storage systems on our journey to be the safest provider of natural gas services," said Kevin Akers, President and CEO of Atmos Energy. "We remain well positioned to achieve our fiscal 2023 earnings per share guidance," Akers concluded. Results for the Three Months Ended December 31, 2022 Consolidated operating income increased $45.3 million to $321.2 million for the three months ended December 31, 2022, compared to $275.9 million in the prior year, primarily due to rate outcomes in both segments and customer growth in our distribution segment, partially offset by increased operation and maintenance and higher depreciation and property tax expenses due to increased capital investments. Distribution operating income increased $41.3 million to $231.8 million for the three months ended December 31, 2022, compared with $190.5 million in the prior-year quarter, primarily due to a $57.5 million increase in rates, a $5.7 million decrease in refunds of excess deferred taxes to customers and customer growth of $2.4 million, partially offset by a $13.2 million increase in operation and maintenance expense driven primarily by pipeline system maintenance and increased administrative costs and a $16.0 million increase in depreciation and property tax expenses. Pipeline and storage operating income increased $4.0 million to $89.4 million for the three months ended December 31, 2022, compared with $85.4 million in the prior year. Key operating drivers for this segment include a $21.0 million increase from our GRIP filing approved in fiscal 2022, partially offset by a $12.6 million increase in operation and maintenance expense driven primarily by system maintenance spending and a $4.4 million increase in depreciation and property tax expenses. Capital expenditures increased $111.5 million to $795.7 million for the three months ended December 31, 2022, compared with $684.2 million in the prior year, due to increased system modernization and expansion spending. For the three months ended December 31, 2022, the company generated operating cash flow of $188.9 million, compared to $61.8 million in the prior-year quarter. The year-over-year increase primarily reflects working capital changes, including the timing of payments for natural gas purchases and deferred gas cost recoveries and the positive effects of successful rate case outcomes achieved in the prior year. Our equity capitalization ratio at December 31, 2022 decreased to 52.9%, from 53.6% at September 30, 2022, due to $220.0 million in equity issuances under our forward equity agreements, partially offset by the issuance of $500 million of 5.75% senior notes and $300 million of 5.45% senior notes in October 2022. Excluding the $2.2 billion of incremental financing issued to pay for the purchased gas costs incurred during Winter Storm Uri, our equity capitalization ratio was 60.0% and 61.3% at December 31, 2022 and September 30, 2022. Conference Call to be Webcast February 8, 2023 Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2023 first quarter financial results on Wednesday, February 8, 2023, at 9:00 a.m. Eastern Time. The domestic telephone number is 877-407-3088 and the international telephone number is 201-389-0927. Kevin Akers, President and Chief Executive Officer, and Chris Forsythe, Senior Vice President and Chief Financial Officer, will participate in the conference call. The conference call will be webcast live on the Atmos Energy website at www.atmosenergy.com. A playback of the call will be available on the website later that day. Forward-Looking Statements The matters discussed in this news release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this news release are forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this news release or any of the company’s other documents or oral presentations, the words “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “goal”, “intend”, “objective”, “plan”, “projection”, “seek”, “strategy” or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in this presentation, including the risks relating to regulatory trends and decisions, the company’s ability to continue to access the credit and capital markets, and the other factors discussed in the company’s reports filed with the Securities and Exchange Commission. These risks and uncertainties include the following: federal, state and local regulatory and political trends and decisions, including the impact of rate proceedings before various state regulatory commissions; increased federal regulatory oversight and potential penalties; possible increased federal, state and local regulation of the safety of our operations; possible significant costs and liabilities resulting from pipeline integrity and other similar programs and related repairs; the inherent hazards and risks involved in distributing, transporting and storing natural gas; the availability and accessibility of contracted gas supplies, interstate pipeline and/or storage services; increased competition from energy suppliers and alternative forms of energy; failure to attract and retain a qualified workforce; natural disasters, terrorist activities or other events and other risks and uncertainties discussed herein, all of which are difficult to predict and many of which are beyond our control; increased dependence on technology that may hinder the Company's business if such technologies fail; the threat of cyber-attacks or acts of cyber-terrorism that could disrupt our business operations and information technology systems or result in the loss or exposure of confidential or sensitive customer, employee or Company information; the impact of new cybersecurity compliance requirements; adverse weather conditions; the impact of greenhouse gas emissions or other legislation or regulations intended to address climate change; the impact of climate change; the capital-intensive nature of our business; our ability to continue to access the credit and capital markets to execute our business strategy; market risks beyond our control affecting our risk management activities, including commodity price volatility, counterparty performance or creditworthiness and interest rate risk; the concentration of our operations in Texas; the impact of adverse economic conditions on our customers; changes in the availability and price of natural gas; and increased costs of providing health care benefits, along with pension and postretirement health care benefits and increased funding requirements. Accordingly, while we believe these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. Further, the company undertakes no obligation to update or revise any of our forward-looking statements whether as a result of new information, future events or otherwise. About Atmos Energy Atmos Energy Corporation, an S&P 500 company headquartered in Dallas, is the country’s largest natural gas-only distributor. We safely deliver reliable, affordable, efficient and abundant natural gas to more than 3 million distribution customers in over 1,400 communities across eight states located primarily in the South. As part of our vision to be the safest provider of natural gas services, we are modernizing our business and infrastructure while continuing to invest in safety, innovation, environmental sustainability and our communities. Atmos Energy manages proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas. Find us online at http://www.atmosenergy.com, Facebook, Twitter, Instagram and YouTube. This news release should be read in conjunction with the attached unaudited financial information. Atmos Energy Corporation Financial Highlights (Unaudited) Statements of Income Three Months Ended December 31 (000s except per share) 2022 2021 Operating revenues Distribution segment $ 1,440,426 $ 972,422 Pipeline and storage segment 186,629 162,918 Intersegment eliminations (143,046 ) (122,554 ) 1,484,009 1,012,786 Purchased gas cost Distribution segment 881,915 496,799 Pipeline and storage segment (858 ) (3,411 ) Intersegment eliminations (142,808 ) (122,225 ) 738,249 371,163 Operation and maintenance expense 185,016 159,110 Depreciation and amortization 146,020 127,856 Taxes, other than income 93,538 78,796 Operating income 321,186 275,861 Other non-operating income 21,191 8,702 Interest charges 36,760 19,851 Income before income taxes 305,617 264,712 Income tax expense 33,757 15,503 Net income $ 271,860 $ 249,209 Basic net income per share $ 1.92 $ 1.86 Diluted net income per share $ 1.91 $ 1.86 Cash dividends per share $ 0.74 $ 0.68 Basic weighted average shares outstanding 141,820 133,682 Diluted weighted average shares outstanding 141,937 133,689 Three Months Ended December 31 Summary Net Income by Segment (000s) 2022 2021 Distribution $ 194,468 $ 179,571 Pipeline and storage 77,392 69,638 Net income $ 271,860 $ 249,209 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Condensed Balance Sheets December 31, September 30, (000s) 2022 2022 Net property, plant and equipment $ 17,971,668 $ 17,240,239 Cash and cash equivalents 171,597 51,554 Accounts receivable, net 826,416 363,708 Gas stored underground 323,678 357,941 Other current assets 2,306,072 2,274,490 Total current assets 3,627,763 3,047,693 Goodwill 731,257 731,257 Deferred charges and other assets 1,035,473 1,173,800 $ 23,366,161 $ 22,192,989 Shareholders' equity $ 9,836,274 $ 9,419,091 Long-term debt 6,551,795 5,760,647 Total capitalization 16,388,069 15,179,738 Accounts payable and accrued liabilities 574,723 496,019 Other current liabilities 755,687 720,157 Short-term debt — 184,967 Current maturities of long-term debt 2,201,484 2,201,457 Total current liabilities 3,531,894 3,602,600 Deferred income taxes 2,075,596 1,999,505 Regulatory excess deferred taxes 345,799 385,213 Deferred credits and other liabilities 1,024,803 1,025,933 $ 23,366,161 $ 22,192,989 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Condensed Statements of Cash Flows Three Months Ended December 31 (000s) 2022 2021 Cash flows from operating activities Net income $ 271,860 $ 249,209 Depreciation and amortization 146,020 127,856 Deferred income taxes 29,693 11,813 Other (17,508 ) (12,689 ) Changes in other assets and liabilities (241,165 ) (314,365 ) Net cash provided by operating activities 188,900 61,824 Cash flows from investing activities Capital expenditures (795,660 ) (684,180 ) Debt and equity securities activities, net (2,472 ) 2,374 Other, net 5,621 2,058 Net cash used in investing activities (792,511 ) (679,748 ) Cash flows from financing activities Net decrease in short-term debt (184,967 ) — Proceeds from issuance of long-term debt, net of premium/discount 797,258 596,142 Net proceeds from equity issuances 220,000 261,943 Issuance of common stock through stock purchase and employee retirement plans 3,779 3,918 Cash dividends paid (104,552 ) (90,411 ) Debt issuance costs (7,864 ) (6,386 ) Net cash provided by financing activities 723,654 765,206 Net increase in cash and cash equivalents 120,043 147,282 Cash and cash equivalents at beginning of period 51,554 116,723 Cash and cash equivalents at end of period $ 171,597 $ 264,005 Three Months Ended December 31 Statistics 2022 2021 Consolidated distribution throughput (MMcf as metered) 140,678 108,142 Consolidated pipeline and storage transportation volumes (MMcf) 142,076 136,067 Distribution meters in service 3,460,006 3,412,929 Distribution average cost of gas $ 8.81 $ 7.14 View source version on businesswire.com: https://www.businesswire.com/news/home/20230207006071/en/