Atmos Energy Corporation Reports Earnings for Fiscal 2021 Second Quarter; Affirms Fiscal 2021 Guidance
Atmos Energy Corporation (NYSE: ATO) reported strong financial results for its second fiscal quarter ended March 31, 2021, with earnings per diluted share of $4.01 over six months, and $2.30 for the quarter. The consolidated net income reached $514.4 million for six months and $296.8 million for the quarter. The company invested $845.7 million in capital expenditures, focusing 87% on system safety and reliability. For fiscal 2021, earnings guidance remains at $4.90 to $5.10 per share, and the quarterly dividend was declared at $0.625, reflecting an 8.7% increase over the previous year.
- Earnings per diluted share rose to $4.01 for six months and $2.30 for the quarter.
- Consolidated net income increased to $514.4 million for six months and $296.8 million for the quarter.
- Capital expenditures totaled $845.7 million, with 87% directed towards safety and reliability.
- Quarterly dividend declared at $0.625, an 8.7% increase over fiscal 2020.
- Earnings guidance for fiscal 2021 remains strong at $4.90 to $5.10.
- Negative operating cash flow of $1.4 billion, a decrease of $2.036 billion year-over-year.
- Equity capitalization ratio declined from 60.0% to 51.7% due to increased debt from Winter Storm Uri.
- Increased bad debt expense impacting distribution segment's operating income.
Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its second fiscal quarter ended March 31, 2021.
Highlights
-
Earnings per diluted share was
$4.01 for the six months ended March 31, 2021;$2.30 per diluted share for the second fiscal quarter. -
Consolidated net income was
$514.4 million for the six months ended March 31, 2021;$296.8 million for the second fiscal quarter. -
Capital expenditures totaled
$845.7 million for the six months ended March 31, 2021, with approximately 87 percent of capital spending related to system safety and reliability investments.
Outlook
-
Earnings per diluted share for fiscal 2021 is expected to be in the previously announced range of
$4.90 t o$5.10 . -
Capital expenditures are expected to be in the range of
$2.0 billion to$2.2 billion in fiscal 2021. -
The company's Board of Directors has declared a quarterly dividend of
$0.62 5 per common share. The indicated annual dividend for fiscal 2021 is$2.50 , which represents an8.7% increase over fiscal 2020.
"Our operating and financial performance for the first six months of the fiscal year reflects our employees’ continued ability to execute at the highest levels on all facets of our business,” said Kevin Akers, President and Chief Executive Officer of Atmos Energy. ”Their dedication and resilience leaves us well positioned for a successful fiscal 2021,” Akers concluded.
Results for the Three Months Ended March 31, 2021
Consolidated operating income increased
Distribution operating income increased
Pipeline and storage operating income increased
Results for the Six Months Ended March 31, 2021
Consolidated operating income increased
Distribution operating income increased
Pipeline and storage operating income increased
Additionally, our year-to-date results reflect a reduction in our annual effective tax rate related to the refund of excess deferred taxes, primarily to APT customers, which has been or will be offset by a corresponding decrease in revenues over the remainder of the fiscal year. As a result, our consolidated effective tax rate declined from
Capital expenditures decreased
For the six months ended March 31, 2021, the company generated negative operating cash flow of
Our equity capitalization ratio at March 31, 2021 was
Conference Call to be Webcast May 6, 2021
Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2021 second quarter financial results on Thursday, May 6, 2021, at 10:00 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; the impact of greenhouse gas emissions or other legislation or regulations intended to address climate change; 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; adverse weather conditions; the impact of climate change; the inability to continue to hire, train and retain operational, technical and managerial personnel; 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; 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; 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; increased costs of providing health care benefits, along with pension and postretirement health care benefits and increased funding requirements; and the outbreak of COVID-19 and its impact on business and economic conditions.
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 March 31 |
||||||
(000s except per share) |
|
2021 |
|
2020 |
||||
Operating revenues |
|
|
|
|
||||
Distribution segment |
|
$ |
1,282,674 |
|
|
$ |
933,005 |
|
Pipeline and storage segment |
|
154,168 |
|
|
146,237 |
|
||
Intersegment eliminations |
|
(117,769 |
) |
|
(101,577 |
) |
||
|
|
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FAQ
What were Atmos Energy's earnings for the second quarter of 2021?
Atmos Energy reported earnings per diluted share of $2.30 for the second fiscal quarter ended March 31, 2021.
What is the earnings outlook for Atmos Energy in fiscal 2021?
Atmos Energy expects earnings per diluted share for fiscal 2021 to be in the range of $4.90 to $5.10.
How much did Atmos Energy invest in capital expenditures for the six months ended March 31, 2021?
The company invested a total of $845.7 million in capital expenditures, focusing on system safety and reliability.
What is the declared dividend for Atmos Energy in fiscal 2021?
Atmos Energy declared a quarterly dividend of $0.625 per common share, an increase of 8.7% over the previous year.
What was the consolidated net income for Atmos Energy for the second quarter of 2021?
The consolidated net income for the second fiscal quarter ended March 31, 2021, was $296.8 million.
Atmos Energy Corporation
NYSE:ATOATO RankingsATO Latest NewsATO Stock Data
23.37B
154.59M
0.31%
100.07%
3.13%
Utilities - Regulated Gas
Natural Gas Distribution
United States of America
DALLAS
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