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 Third Quarter; Reaffirms Fiscal 2023 Guidance By: Atmos Energy Corporation via Business Wire August 02, 2023 at 16:36 PM EDT Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its third fiscal quarter ended June 30, 2023. Highlights Earnings per diluted share was $5.33 for the nine months ended June 30, 2023; $0.94 per diluted share for the third fiscal quarter. Consolidated net income was $767.3 million for the nine months ended June 30, 2023; $137.8 million for the third fiscal quarter. Capital expenditures totaled $2.08 billion for the nine months ended June 30, 2023, with approximately 86 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 $6.00 to $6.10 per diluted share. Capital expenditures are expected to approximate $2.8 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. "The dedication of our employees coupled with the exceptional customer service they provide to our more than 3 million customers continues to position us to achieve fiscal 2023 earnings in the range of $6.00 to $6.10 per diluted share," said Kevin Akers, President and Chief Executive Officer of Atmos Energy. Results for the Three Months Ended June 30, 2023 Consolidated operating income increased $14.7 million to $169.3 million for the three months ended June 30, 2023, from $154.6 million in the prior-year quarter. Rate case outcomes in both segments and customer growth in our distribution segment were partially offset by higher operation and maintenance expense and higher depreciation and property tax expenses due to increased capital investments. Distribution operating income increased $5.6 million to $71.7 million for the three months ended June 30, 2023, compared with $66.1 million in the prior-year quarter. The increase primarily reflects a net $29.1 million increase in rates, a $3.5 million increase due to net customer growth, partially offset by a $4.7 million increase in operation and maintenance expense driven primarily by line locates and other pipeline system maintenance activities and a $16.8 million increase in depreciation and property tax expenses. Pipeline and storage operating income increased $9.0 million to $97.6 million for the three months ended June 30, 2023, compared with $88.5 million in the prior-year quarter. This increase is primarily attributable to a $22.6 million increase in rates, due to the GRIP filings approved in May 2022 and May 2023, partially offset by an $8.0 million increase in operation and maintenance expense driven primarily by system maintenance spending and a $6.4 million increase in depreciation and property tax expenses. Results for the Nine Months Ended June 30, 2023 Consolidated operating income increased $97.5 million to $913.1 million for the nine months ended June 30, 2023, compared to $815.6 million in the prior year, primarily due to rate outcomes in both segments, increased weather and consumption and customer growth in our distribution segment and increased through system revenues in our pipeline and storage segment that were partially offset by increased operation and maintenance expense and higher depreciation and property tax expenses due to increased capital investments. Distribution operating income increased $70.9 million to $638.8 million for the nine months ended June 30, 2023, compared with $567.9 million in the prior year, primarily due to a net $139.0 million increase in rates, a $12.5 million increase in consumption, a $14.6 million increase in customer growth, including increased industrial load, and a $10.0 million decrease in refunds of excess deferred taxes to customers, which is substantially offset in income tax expense, partially offset by a $47.7 million increase in operation and maintenance expense driven primarily by line locates and other pipeline system maintenance activities and increased administrative costs and a $50.5 million increase in depreciation and property tax expenses. Pipeline and storage operating income increased $26.6 million to $274.3 million for the nine months ended June 30, 2023, compared with $247.7 million in the prior year. Key operating drivers for this segment include a $64.6 million increase from our GRIP filings approved in fiscal 2022 and 2023 and an $8.0 million increase in through system revenues, partially offset by a $22.1 million increase in operation and maintenance expense driven primarily by timing of system maintenance spending and a $17.0 million increase in depreciation and property tax expenses. Capital expenditures increased $357.5 million to $2.08 billion for the nine months ended June 30, 2023, compared with $1.73 billion in the prior year, due to increased system modernization and expansion spending. For the nine months ended June 30, 2023, the company generated operating cash flow of $3.22 billion, compared to $929.3 million in the prior year. The year-over-year increase primarily reflects the receipt of $2.02 billion from the Texas Natural Gas Securitization Finance Corporation in March 2023 related to gas costs incurred during Winter Storm Uri. Our equity capitalization ratio at June 30, 2023 increased to 61.8%, from 53.6% at September 30, 2022, due to the repayment at maturity of $2.2 billion of Winter Storm Uri financing and $671.6 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 61.3% at September 30, 2022. Conference Call to be Webcast August 3, 2023 Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2023 third quarter financial results on Thursday, August 3, 2023, at 10:00 a.m. Eastern Time. The domestic telephone number is 888-350-3846 and the international telephone number is 646-960-0251. The conference ID is 9958104. 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 June 30 (000s except per share) 2023 2022 Operating revenues Distribution segment $ 616,067 $ 773,311 Pipeline and storage segment 208,225 183,412 Intersegment eliminations (161,559 ) (140,294 ) 662,733 816,429 Purchased gas cost Distribution segment 206,048 390,559 Pipeline and storage segment (194 ) (1,347 ) Intersegment eliminations (161,304 ) (140,053 ) 44,550 249,159 Operation and maintenance expense 195,049 182,325 Depreciation and amortization 150,726 134,231 Taxes, other than income 103,155 96,127 Operating income 169,253 154,587 Other non-operating income 16,170 13,263 Interest charges 31,334 26,190 Income before income taxes 154,089 141,660 Income tax expense 16,282 13,113 Net income $ 137,807 $ 128,547 Basic net income per share $ 0.94 $ 0.92 Diluted net income per share $ 0.94 $ 0.92 Cash dividends per share $ 0.74 $ 0.68 Basic weighted average shares outstanding 146,051 139,881 Diluted weighted average shares outstanding 146,067 140,227 Three Months Ended June 30 Summary Net Income by Segment (000s) 2023 2022 Distribution $ 59,639 $ 57,401 Pipeline and storage 78,168 71,146 Net income $ 137,807 $ 128,547 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Statements of Income Nine Months Ended June 30 (000s except per share) 2023 2022 Operating revenues Distribution segment $ 3,556,703 $ 3,356,279 Pipeline and storage segment 579,278 510,077 Intersegment eliminations (448,266 ) (387,322 ) 3,687,715 3,479,034 Purchased gas cost Distribution segment 1,896,986 1,881,212 Pipeline and storage segment (431 ) (3,075 ) Intersegment eliminations (447,545 ) (386,437 ) 1,449,010 1,491,700 Operation and maintenance expense 574,781 504,787 Depreciation and amortization 445,063 395,461 Taxes, other than income 305,784 271,506 Operating income 913,077 815,580 Other non-operating income 54,767 27,178 Interest charges 105,464 74,969 Income before income taxes 862,380 767,789 Income tax expense 95,042 65,034 Net income $ 767,338 $ 702,755 Basic net income per share $ 5.33 $ 5.13 Diluted net income per share $ 5.33 $ 5.12 Cash dividends per share $ 2.22 $ 2.04 Basic weighted average shares outstanding 143,938 136,799 Diluted weighted average shares outstanding 143,998 137,055 Nine Months Ended June 30 Summary Net Income by Segment (000s) 2023 2022 Distribution $ 542,581 $ 505,823 Pipeline and storage 224,757 196,932 Net income $ 767,338 $ 702,755 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Condensed Balance Sheets June 30, September 30, (000s) 2023 2022 Net property, plant and equipment $ 19,018,341 $ 17,240,239 Cash and cash equivalents 56,237 51,554 Restricted cash and cash equivalents 1,876 — Cash and cash equivalents and restricted cash and cash equivalents 58,113 51,554 Accounts receivable, net 330,827 363,708 Gas stored underground 211,041 357,941 Other current assets 288,945 2,274,490 Total current assets 888,926 3,047,693 Securitized intangible asset, net 93,600 — Goodwill 731,257 731,257 Deferred charges and other assets 1,039,405 1,173,800 $ 21,771,529 $ 22,192,989 Shareholders' equity $ 10,602,381 $ 9,419,091 Long-term debt, net 6,553,618 5,760,647 Securitized long-term debt 89,027 — Total capitalization 17,245,026 15,179,738 Accounts payable and accrued liabilities 327,890 496,019 Other current liabilities 698,918 720,157 Short-term debt — 184,967 Current maturities of long-term debt 1,540 2,201,457 Current maturities of securitized long-term debt 5,973 — Total current liabilities 1,034,321 3,602,600 Deferred income taxes 2,205,291 1,999,505 Regulatory excess deferred taxes 277,506 385,213 Deferred credits and other liabilities 1,009,385 1,025,933 $ 21,771,529 $ 22,192,989 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Condensed Statements of Cash Flows Nine Months Ended June 30 (000s) 2023 2022 Cash flows from operating activities Net income $ 767,338 $ 702,755 Depreciation and amortization 445,063 395,461 Deferred income taxes 75,407 40,899 Other (38,360 ) (15,941 ) Change in Winter Storm Uri current regulatory asset 2,021,889 — Changes in other assets and liabilities (49,829 ) (193,858 ) Net cash provided by operating activities 3,221,508 929,316 Cash flows from investing activities Capital expenditures (2,083,486 ) (1,726,039 ) Debt and equity securities activities, net (7,302 ) 3,594 Other, net 13,469 7,876 Net cash used in investing activities (2,077,319 ) (1,714,569 ) Cash flows from financing activities Net decrease in short-term debt (184,967 ) — Proceeds from issuance of long-term debt, net of premium/discount 797,258 798,802 Proceeds from issuance of securitized debt by AEK 95,000 — Net proceeds from equity issuances 671,630 675,320 Issuance of common stock through stock purchase and employee retirement plans 11,660 11,670 Proceeds from term loan 2,020,000 — Repayment of term loan (2,020,000 ) — Repayment of long-term debt (2,200,000 ) (200,000 ) Cash dividends paid (319,074 ) (279,256 ) Debt issuance costs (7,864 ) (8,196 ) Securitized debt issuance costs (1,273 ) — Other — (1,735 ) Net cash provided by (used in) financing activities (1,137,630 ) 996,605 Net increase in cash and cash equivalents and restricted cash and cash equivalents 6,559 211,352 Cash and cash equivalents and restricted cash and cash equivalents at beginning of period 51,554 116,723 Cash and cash equivalents and restricted cash and cash equivalents at end of period $ 58,113 $ 328,075 Three Months Ended June 30 Nine Months Ended June 30 Statistics 2023 2022 2023 2022 Consolidated distribution throughput (MMcf as metered) 75,272 79,314 377,058 376,754 Consolidated pipeline and storage transportation volumes (MMcf) 172,266 146,422 440,015 411,884 Distribution meters in service 3,478,231 3,430,476 3,478,231 3,430,476 Distribution average cost of gas $ 4.96 $ 8.69 $ 7.31 $ 7.33 View source version on businesswire.com: 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Atmos Energy Corporation Reports Earnings for Fiscal 2023 Third Quarter; Reaffirms Fiscal 2023 Guidance By: Atmos Energy Corporation via Business Wire August 02, 2023 at 16:36 PM EDT Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its third fiscal quarter ended June 30, 2023. Highlights Earnings per diluted share was $5.33 for the nine months ended June 30, 2023; $0.94 per diluted share for the third fiscal quarter. Consolidated net income was $767.3 million for the nine months ended June 30, 2023; $137.8 million for the third fiscal quarter. Capital expenditures totaled $2.08 billion for the nine months ended June 30, 2023, with approximately 86 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 $6.00 to $6.10 per diluted share. Capital expenditures are expected to approximate $2.8 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. "The dedication of our employees coupled with the exceptional customer service they provide to our more than 3 million customers continues to position us to achieve fiscal 2023 earnings in the range of $6.00 to $6.10 per diluted share," said Kevin Akers, President and Chief Executive Officer of Atmos Energy. Results for the Three Months Ended June 30, 2023 Consolidated operating income increased $14.7 million to $169.3 million for the three months ended June 30, 2023, from $154.6 million in the prior-year quarter. Rate case outcomes in both segments and customer growth in our distribution segment were partially offset by higher operation and maintenance expense and higher depreciation and property tax expenses due to increased capital investments. Distribution operating income increased $5.6 million to $71.7 million for the three months ended June 30, 2023, compared with $66.1 million in the prior-year quarter. The increase primarily reflects a net $29.1 million increase in rates, a $3.5 million increase due to net customer growth, partially offset by a $4.7 million increase in operation and maintenance expense driven primarily by line locates and other pipeline system maintenance activities and a $16.8 million increase in depreciation and property tax expenses. Pipeline and storage operating income increased $9.0 million to $97.6 million for the three months ended June 30, 2023, compared with $88.5 million in the prior-year quarter. This increase is primarily attributable to a $22.6 million increase in rates, due to the GRIP filings approved in May 2022 and May 2023, partially offset by an $8.0 million increase in operation and maintenance expense driven primarily by system maintenance spending and a $6.4 million increase in depreciation and property tax expenses. Results for the Nine Months Ended June 30, 2023 Consolidated operating income increased $97.5 million to $913.1 million for the nine months ended June 30, 2023, compared to $815.6 million in the prior year, primarily due to rate outcomes in both segments, increased weather and consumption and customer growth in our distribution segment and increased through system revenues in our pipeline and storage segment that were partially offset by increased operation and maintenance expense and higher depreciation and property tax expenses due to increased capital investments. Distribution operating income increased $70.9 million to $638.8 million for the nine months ended June 30, 2023, compared with $567.9 million in the prior year, primarily due to a net $139.0 million increase in rates, a $12.5 million increase in consumption, a $14.6 million increase in customer growth, including increased industrial load, and a $10.0 million decrease in refunds of excess deferred taxes to customers, which is substantially offset in income tax expense, partially offset by a $47.7 million increase in operation and maintenance expense driven primarily by line locates and other pipeline system maintenance activities and increased administrative costs and a $50.5 million increase in depreciation and property tax expenses. Pipeline and storage operating income increased $26.6 million to $274.3 million for the nine months ended June 30, 2023, compared with $247.7 million in the prior year. Key operating drivers for this segment include a $64.6 million increase from our GRIP filings approved in fiscal 2022 and 2023 and an $8.0 million increase in through system revenues, partially offset by a $22.1 million increase in operation and maintenance expense driven primarily by timing of system maintenance spending and a $17.0 million increase in depreciation and property tax expenses. Capital expenditures increased $357.5 million to $2.08 billion for the nine months ended June 30, 2023, compared with $1.73 billion in the prior year, due to increased system modernization and expansion spending. For the nine months ended June 30, 2023, the company generated operating cash flow of $3.22 billion, compared to $929.3 million in the prior year. The year-over-year increase primarily reflects the receipt of $2.02 billion from the Texas Natural Gas Securitization Finance Corporation in March 2023 related to gas costs incurred during Winter Storm Uri. Our equity capitalization ratio at June 30, 2023 increased to 61.8%, from 53.6% at September 30, 2022, due to the repayment at maturity of $2.2 billion of Winter Storm Uri financing and $671.6 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 61.3% at September 30, 2022. Conference Call to be Webcast August 3, 2023 Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2023 third quarter financial results on Thursday, August 3, 2023, at 10:00 a.m. Eastern Time. The domestic telephone number is 888-350-3846 and the international telephone number is 646-960-0251. The conference ID is 9958104. 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 June 30 (000s except per share) 2023 2022 Operating revenues Distribution segment $ 616,067 $ 773,311 Pipeline and storage segment 208,225 183,412 Intersegment eliminations (161,559 ) (140,294 ) 662,733 816,429 Purchased gas cost Distribution segment 206,048 390,559 Pipeline and storage segment (194 ) (1,347 ) Intersegment eliminations (161,304 ) (140,053 ) 44,550 249,159 Operation and maintenance expense 195,049 182,325 Depreciation and amortization 150,726 134,231 Taxes, other than income 103,155 96,127 Operating income 169,253 154,587 Other non-operating income 16,170 13,263 Interest charges 31,334 26,190 Income before income taxes 154,089 141,660 Income tax expense 16,282 13,113 Net income $ 137,807 $ 128,547 Basic net income per share $ 0.94 $ 0.92 Diluted net income per share $ 0.94 $ 0.92 Cash dividends per share $ 0.74 $ 0.68 Basic weighted average shares outstanding 146,051 139,881 Diluted weighted average shares outstanding 146,067 140,227 Three Months Ended June 30 Summary Net Income by Segment (000s) 2023 2022 Distribution $ 59,639 $ 57,401 Pipeline and storage 78,168 71,146 Net income $ 137,807 $ 128,547 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Statements of Income Nine Months Ended June 30 (000s except per share) 2023 2022 Operating revenues Distribution segment $ 3,556,703 $ 3,356,279 Pipeline and storage segment 579,278 510,077 Intersegment eliminations (448,266 ) (387,322 ) 3,687,715 3,479,034 Purchased gas cost Distribution segment 1,896,986 1,881,212 Pipeline and storage segment (431 ) (3,075 ) Intersegment eliminations (447,545 ) (386,437 ) 1,449,010 1,491,700 Operation and maintenance expense 574,781 504,787 Depreciation and amortization 445,063 395,461 Taxes, other than income 305,784 271,506 Operating income 913,077 815,580 Other non-operating income 54,767 27,178 Interest charges 105,464 74,969 Income before income taxes 862,380 767,789 Income tax expense 95,042 65,034 Net income $ 767,338 $ 702,755 Basic net income per share $ 5.33 $ 5.13 Diluted net income per share $ 5.33 $ 5.12 Cash dividends per share $ 2.22 $ 2.04 Basic weighted average shares outstanding 143,938 136,799 Diluted weighted average shares outstanding 143,998 137,055 Nine Months Ended June 30 Summary Net Income by Segment (000s) 2023 2022 Distribution $ 542,581 $ 505,823 Pipeline and storage 224,757 196,932 Net income $ 767,338 $ 702,755 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Condensed Balance Sheets June 30, September 30, (000s) 2023 2022 Net property, plant and equipment $ 19,018,341 $ 17,240,239 Cash and cash equivalents 56,237 51,554 Restricted cash and cash equivalents 1,876 — Cash and cash equivalents and restricted cash and cash equivalents 58,113 51,554 Accounts receivable, net 330,827 363,708 Gas stored underground 211,041 357,941 Other current assets 288,945 2,274,490 Total current assets 888,926 3,047,693 Securitized intangible asset, net 93,600 — Goodwill 731,257 731,257 Deferred charges and other assets 1,039,405 1,173,800 $ 21,771,529 $ 22,192,989 Shareholders' equity $ 10,602,381 $ 9,419,091 Long-term debt, net 6,553,618 5,760,647 Securitized long-term debt 89,027 — Total capitalization 17,245,026 15,179,738 Accounts payable and accrued liabilities 327,890 496,019 Other current liabilities 698,918 720,157 Short-term debt — 184,967 Current maturities of long-term debt 1,540 2,201,457 Current maturities of securitized long-term debt 5,973 — Total current liabilities 1,034,321 3,602,600 Deferred income taxes 2,205,291 1,999,505 Regulatory excess deferred taxes 277,506 385,213 Deferred credits and other liabilities 1,009,385 1,025,933 $ 21,771,529 $ 22,192,989 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Condensed Statements of Cash Flows Nine Months Ended June 30 (000s) 2023 2022 Cash flows from operating activities Net income $ 767,338 $ 702,755 Depreciation and amortization 445,063 395,461 Deferred income taxes 75,407 40,899 Other (38,360 ) (15,941 ) Change in Winter Storm Uri current regulatory asset 2,021,889 — Changes in other assets and liabilities (49,829 ) (193,858 ) Net cash provided by operating activities 3,221,508 929,316 Cash flows from investing activities Capital expenditures (2,083,486 ) (1,726,039 ) Debt and equity securities activities, net (7,302 ) 3,594 Other, net 13,469 7,876 Net cash used in investing activities (2,077,319 ) (1,714,569 ) Cash flows from financing activities Net decrease in short-term debt (184,967 ) — Proceeds from issuance of long-term debt, net of premium/discount 797,258 798,802 Proceeds from issuance of securitized debt by AEK 95,000 — Net proceeds from equity issuances 671,630 675,320 Issuance of common stock through stock purchase and employee retirement plans 11,660 11,670 Proceeds from term loan 2,020,000 — Repayment of term loan (2,020,000 ) — Repayment of long-term debt (2,200,000 ) (200,000 ) Cash dividends paid (319,074 ) (279,256 ) Debt issuance costs (7,864 ) (8,196 ) Securitized debt issuance costs (1,273 ) — Other — (1,735 ) Net cash provided by (used in) financing activities (1,137,630 ) 996,605 Net increase in cash and cash equivalents and restricted cash and cash equivalents 6,559 211,352 Cash and cash equivalents and restricted cash and cash equivalents at beginning of period 51,554 116,723 Cash and cash equivalents and restricted cash and cash equivalents at end of period $ 58,113 $ 328,075 Three Months Ended June 30 Nine Months Ended June 30 Statistics 2023 2022 2023 2022 Consolidated distribution throughput (MMcf as metered) 75,272 79,314 377,058 376,754 Consolidated pipeline and storage transportation volumes (MMcf) 172,266 146,422 440,015 411,884 Distribution meters in service 3,478,231 3,430,476 3,478,231 3,430,476 Distribution average cost of gas $ 4.96 $ 8.69 $ 7.31 $ 7.33 View source version on businesswire.com: https://www.businesswire.com/news/home/20230802624022/en/Contacts Analysts and Media Contact: Dan Meziere (972) 855-3729
Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its third fiscal quarter ended June 30, 2023. Highlights Earnings per diluted share was $5.33 for the nine months ended June 30, 2023; $0.94 per diluted share for the third fiscal quarter. Consolidated net income was $767.3 million for the nine months ended June 30, 2023; $137.8 million for the third fiscal quarter. Capital expenditures totaled $2.08 billion for the nine months ended June 30, 2023, with approximately 86 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 $6.00 to $6.10 per diluted share. Capital expenditures are expected to approximate $2.8 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. "The dedication of our employees coupled with the exceptional customer service they provide to our more than 3 million customers continues to position us to achieve fiscal 2023 earnings in the range of $6.00 to $6.10 per diluted share," said Kevin Akers, President and Chief Executive Officer of Atmos Energy. Results for the Three Months Ended June 30, 2023 Consolidated operating income increased $14.7 million to $169.3 million for the three months ended June 30, 2023, from $154.6 million in the prior-year quarter. Rate case outcomes in both segments and customer growth in our distribution segment were partially offset by higher operation and maintenance expense and higher depreciation and property tax expenses due to increased capital investments. Distribution operating income increased $5.6 million to $71.7 million for the three months ended June 30, 2023, compared with $66.1 million in the prior-year quarter. The increase primarily reflects a net $29.1 million increase in rates, a $3.5 million increase due to net customer growth, partially offset by a $4.7 million increase in operation and maintenance expense driven primarily by line locates and other pipeline system maintenance activities and a $16.8 million increase in depreciation and property tax expenses. Pipeline and storage operating income increased $9.0 million to $97.6 million for the three months ended June 30, 2023, compared with $88.5 million in the prior-year quarter. This increase is primarily attributable to a $22.6 million increase in rates, due to the GRIP filings approved in May 2022 and May 2023, partially offset by an $8.0 million increase in operation and maintenance expense driven primarily by system maintenance spending and a $6.4 million increase in depreciation and property tax expenses. Results for the Nine Months Ended June 30, 2023 Consolidated operating income increased $97.5 million to $913.1 million for the nine months ended June 30, 2023, compared to $815.6 million in the prior year, primarily due to rate outcomes in both segments, increased weather and consumption and customer growth in our distribution segment and increased through system revenues in our pipeline and storage segment that were partially offset by increased operation and maintenance expense and higher depreciation and property tax expenses due to increased capital investments. Distribution operating income increased $70.9 million to $638.8 million for the nine months ended June 30, 2023, compared with $567.9 million in the prior year, primarily due to a net $139.0 million increase in rates, a $12.5 million increase in consumption, a $14.6 million increase in customer growth, including increased industrial load, and a $10.0 million decrease in refunds of excess deferred taxes to customers, which is substantially offset in income tax expense, partially offset by a $47.7 million increase in operation and maintenance expense driven primarily by line locates and other pipeline system maintenance activities and increased administrative costs and a $50.5 million increase in depreciation and property tax expenses. Pipeline and storage operating income increased $26.6 million to $274.3 million for the nine months ended June 30, 2023, compared with $247.7 million in the prior year. Key operating drivers for this segment include a $64.6 million increase from our GRIP filings approved in fiscal 2022 and 2023 and an $8.0 million increase in through system revenues, partially offset by a $22.1 million increase in operation and maintenance expense driven primarily by timing of system maintenance spending and a $17.0 million increase in depreciation and property tax expenses. Capital expenditures increased $357.5 million to $2.08 billion for the nine months ended June 30, 2023, compared with $1.73 billion in the prior year, due to increased system modernization and expansion spending. For the nine months ended June 30, 2023, the company generated operating cash flow of $3.22 billion, compared to $929.3 million in the prior year. The year-over-year increase primarily reflects the receipt of $2.02 billion from the Texas Natural Gas Securitization Finance Corporation in March 2023 related to gas costs incurred during Winter Storm Uri. Our equity capitalization ratio at June 30, 2023 increased to 61.8%, from 53.6% at September 30, 2022, due to the repayment at maturity of $2.2 billion of Winter Storm Uri financing and $671.6 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 61.3% at September 30, 2022. Conference Call to be Webcast August 3, 2023 Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2023 third quarter financial results on Thursday, August 3, 2023, at 10:00 a.m. Eastern Time. The domestic telephone number is 888-350-3846 and the international telephone number is 646-960-0251. The conference ID is 9958104. 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 June 30 (000s except per share) 2023 2022 Operating revenues Distribution segment $ 616,067 $ 773,311 Pipeline and storage segment 208,225 183,412 Intersegment eliminations (161,559 ) (140,294 ) 662,733 816,429 Purchased gas cost Distribution segment 206,048 390,559 Pipeline and storage segment (194 ) (1,347 ) Intersegment eliminations (161,304 ) (140,053 ) 44,550 249,159 Operation and maintenance expense 195,049 182,325 Depreciation and amortization 150,726 134,231 Taxes, other than income 103,155 96,127 Operating income 169,253 154,587 Other non-operating income 16,170 13,263 Interest charges 31,334 26,190 Income before income taxes 154,089 141,660 Income tax expense 16,282 13,113 Net income $ 137,807 $ 128,547 Basic net income per share $ 0.94 $ 0.92 Diluted net income per share $ 0.94 $ 0.92 Cash dividends per share $ 0.74 $ 0.68 Basic weighted average shares outstanding 146,051 139,881 Diluted weighted average shares outstanding 146,067 140,227 Three Months Ended June 30 Summary Net Income by Segment (000s) 2023 2022 Distribution $ 59,639 $ 57,401 Pipeline and storage 78,168 71,146 Net income $ 137,807 $ 128,547 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Statements of Income Nine Months Ended June 30 (000s except per share) 2023 2022 Operating revenues Distribution segment $ 3,556,703 $ 3,356,279 Pipeline and storage segment 579,278 510,077 Intersegment eliminations (448,266 ) (387,322 ) 3,687,715 3,479,034 Purchased gas cost Distribution segment 1,896,986 1,881,212 Pipeline and storage segment (431 ) (3,075 ) Intersegment eliminations (447,545 ) (386,437 ) 1,449,010 1,491,700 Operation and maintenance expense 574,781 504,787 Depreciation and amortization 445,063 395,461 Taxes, other than income 305,784 271,506 Operating income 913,077 815,580 Other non-operating income 54,767 27,178 Interest charges 105,464 74,969 Income before income taxes 862,380 767,789 Income tax expense 95,042 65,034 Net income $ 767,338 $ 702,755 Basic net income per share $ 5.33 $ 5.13 Diluted net income per share $ 5.33 $ 5.12 Cash dividends per share $ 2.22 $ 2.04 Basic weighted average shares outstanding 143,938 136,799 Diluted weighted average shares outstanding 143,998 137,055 Nine Months Ended June 30 Summary Net Income by Segment (000s) 2023 2022 Distribution $ 542,581 $ 505,823 Pipeline and storage 224,757 196,932 Net income $ 767,338 $ 702,755 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Condensed Balance Sheets June 30, September 30, (000s) 2023 2022 Net property, plant and equipment $ 19,018,341 $ 17,240,239 Cash and cash equivalents 56,237 51,554 Restricted cash and cash equivalents 1,876 — Cash and cash equivalents and restricted cash and cash equivalents 58,113 51,554 Accounts receivable, net 330,827 363,708 Gas stored underground 211,041 357,941 Other current assets 288,945 2,274,490 Total current assets 888,926 3,047,693 Securitized intangible asset, net 93,600 — Goodwill 731,257 731,257 Deferred charges and other assets 1,039,405 1,173,800 $ 21,771,529 $ 22,192,989 Shareholders' equity $ 10,602,381 $ 9,419,091 Long-term debt, net 6,553,618 5,760,647 Securitized long-term debt 89,027 — Total capitalization 17,245,026 15,179,738 Accounts payable and accrued liabilities 327,890 496,019 Other current liabilities 698,918 720,157 Short-term debt — 184,967 Current maturities of long-term debt 1,540 2,201,457 Current maturities of securitized long-term debt 5,973 — Total current liabilities 1,034,321 3,602,600 Deferred income taxes 2,205,291 1,999,505 Regulatory excess deferred taxes 277,506 385,213 Deferred credits and other liabilities 1,009,385 1,025,933 $ 21,771,529 $ 22,192,989 Atmos Energy Corporation Financial Highlights, continued (Unaudited) Condensed Statements of Cash Flows Nine Months Ended June 30 (000s) 2023 2022 Cash flows from operating activities Net income $ 767,338 $ 702,755 Depreciation and amortization 445,063 395,461 Deferred income taxes 75,407 40,899 Other (38,360 ) (15,941 ) Change in Winter Storm Uri current regulatory asset 2,021,889 — Changes in other assets and liabilities (49,829 ) (193,858 ) Net cash provided by operating activities 3,221,508 929,316 Cash flows from investing activities Capital expenditures (2,083,486 ) (1,726,039 ) Debt and equity securities activities, net (7,302 ) 3,594 Other, net 13,469 7,876 Net cash used in investing activities (2,077,319 ) (1,714,569 ) Cash flows from financing activities Net decrease in short-term debt (184,967 ) — Proceeds from issuance of long-term debt, net of premium/discount 797,258 798,802 Proceeds from issuance of securitized debt by AEK 95,000 — Net proceeds from equity issuances 671,630 675,320 Issuance of common stock through stock purchase and employee retirement plans 11,660 11,670 Proceeds from term loan 2,020,000 — Repayment of term loan (2,020,000 ) — Repayment of long-term debt (2,200,000 ) (200,000 ) Cash dividends paid (319,074 ) (279,256 ) Debt issuance costs (7,864 ) (8,196 ) Securitized debt issuance costs (1,273 ) — Other — (1,735 ) Net cash provided by (used in) financing activities (1,137,630 ) 996,605 Net increase in cash and cash equivalents and restricted cash and cash equivalents 6,559 211,352 Cash and cash equivalents and restricted cash and cash equivalents at beginning of period 51,554 116,723 Cash and cash equivalents and restricted cash and cash equivalents at end of period $ 58,113 $ 328,075 Three Months Ended June 30 Nine Months Ended June 30 Statistics 2023 2022 2023 2022 Consolidated distribution throughput (MMcf as metered) 75,272 79,314 377,058 376,754 Consolidated pipeline and storage transportation volumes (MMcf) 172,266 146,422 440,015 411,884 Distribution meters in service 3,478,231 3,430,476 3,478,231 3,430,476 Distribution average cost of gas $ 4.96 $ 8.69 $ 7.31 $ 7.33 View source version on businesswire.com: 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