Atmos Energy Corporation
CEO : Mr. John Kevin Akers
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2023 Q3 | -18.8% YoY | 9.5% | 2.2% | 2023-08-03 |
Chris Forsythe says,
Financial Results
- Fiscal year-to-date diluted earnings per share of $5.33 compared to $5.12 per diluted share in the prior year period.
Key Themes Driving Financial Results
- Regulatory outcomes reflecting increased safety and reliability spending.
- Continued strong customer growth and higher O&M spending.
Regulatory Outcomes and Customer Growth Impact
- Fiscal ’22 and ’23 regulatory outcomes increased operating income by approximately $204 million.
- Higher consumption, residential customer growth, and rising industrial load in the distribution segment increased operating income by an additional $27 million.
O&M Spending
- Consolidated O&M increased by $70 million year-to-date.
- Distribution O&M increased $48 million or 12.6% year-to-date.
- O&M increase in the distribution segment moderated somewhat in the third fiscal quarter, increasing approximately 3.5% quarter-over-quarter.
- Higher levels of O&M spending driven by higher service orders to support growing service territory, primarily in Texas.
Consolidated Capital Spending
- Consolidated capital spending increased 21% or $358 million to $2.1 billion.
- 86% of capital spending dedicated to improving the safety and reliability of the system.
- Increased spending on APT for Line S-2 and Line PC projects to enhance the safety, reliability, versatility, and supply diversification of the system.
- Higher spending in the distribution segment to support safety, reliability, and customer growth.
Guidance
- Reaffirming fiscal ’23 guidance in the range of $6 to $6.10 per share.
- Expected capital spending to approximate $2.8 billion, largely reflecting higher spending for system expansion in the distribution segment.
Financial Position
- Equity capitalization of 61.8%.
- $3.1 billion of liquidity, including $590 million of net proceeds from existing foreign sales agreement.
- Completed $95 million securitization process in Kansas.
Kevin Akers says,
Customer Growth
- Fiscal year performance reflects strong customer growth, driven by robust employment trends, particularly in Texas.
- Added nearly 64,000 new customers for the 12 months ended June 30, with over 48,000 located in Texas.
Industrial Demand
- Added 10 new industrial customers during the third quarter, with an anticipated annual load of approximately 8 Bcf once operational.
- Added 41 new industrial customers fiscal year-to-date, with an anticipated annual load of approximately 16 Bcf once operational.
Energy Assistance
- Customer Advocacy team and customer support agents helped over 55,000 customers receive about $23 million in funding assistance during the first nine months of fiscal year.
Employment Trends
- According to the Texas Workforce Commission, the state experienced record employment with nearly 14.4 million employed for the 12 months ended May 31.
- Dallas-Fort Worth Metroplex projected to add one million people by 2028, leading to increased demand for natural gas.
Sustainability and Strategy
- Continued focus on long-term sustainability and executing proven investment, regulatory, and financing strategy.
- Positioned well for another successful year in fiscal 2023.
Q & A sessions,
Fiscal Year-to-Date Financial Results
- Announced fiscal year-to-date diluted earnings per share of $5.33 compared to $5.12 per diluted share in the prior year period.
- Third quarter and fiscal year-to-date financial results were in line with expectations.
- Driven by regulatory outcomes reflecting increased safety and reliability spending, continued strong customer growth, and higher O&M spending.
Regulatory Outcomes and Operating Income
- Fiscal ’22 and ’23 regulatory outcomes increased operating income by approximately $204 million.
- Higher consumption, residential customer growth, and rising industrial load in the distribution segment increased operating income by an additional $27 million.
- Partially offset by a $70 million increase in consolidated O&M.
O&M Spending
- Distribution O&M increased $48 million or 12.6% year-to-date.
- Rate of O&M increase in the distribution segment moderated somewhat during the third fiscal quarter, with O&M increasing approximately 3.5% quarter-over-quarter.
- Higher levels of O&M spending driven by service orders to support growing service territory, primarily in Texas.
Consolidated Capital Spending
- Consolidated capital spending increased 21% or $358 million to $2.1 billion, with 86% dedicated to improving the safety and reliability of the system.
- Higher spending on APT projects to enhance the safety, reliability, versatility, and supply diversification of the system.
- Spending in the distribution segment increased due to higher safety reliability spending and higher spending to support customer growth.
Guidance and Capital Spending
- Reaffirmed fiscal ’23 guidance in the range of $6 to $6.10.
- Capital spending expected to approximate $2.8 billion, reflecting higher spending per system expansion in the distribution segment.
No bad stock 