Atmos Energy Corporation Reports Earnings for Fiscal 2023 Third Quarter; Reaffirms Fiscal 2023 Guidance
Highlights
-
Earnings per diluted share was
for the nine months ended June 30, 2023;$5.33 per diluted share for the third fiscal quarter.$0.94 -
Consolidated net income was
for the nine months ended June 30, 2023;$767.3 million for the third fiscal quarter.$137.8 million -
Capital expenditures totaled
for the nine months ended June 30, 2023, with approximately 86 percent of capital spending related to system safety and reliability investments.$2.08 billion
Outlook
-
Earnings per diluted share for fiscal 2023 is expected to be in the range of
to$6.00 per diluted share.$6.10 -
Capital expenditures are expected to approximate
in fiscal 2023.$2.8 billion -
The company's Board of Directors has declared a quarterly dividend of
per common share. The indicated annual dividend for fiscal 2023 is$0.74 , which represents an$2.96 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
Results for the Three Months Ended June 30, 2023
Consolidated operating income increased
Distribution operating income increased
Pipeline and storage operating income increased
Results for the Nine Months Ended June 30, 2023
Consolidated operating income increased
Distribution operating income increased
Pipeline and storage operating income increased
Capital expenditures increased
For the nine months ended June 30, 2023, the company generated operating cash flow of
Our equity capitalization ratio at June 30, 2023 increased to
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
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
This news release should be read in conjunction with the attached unaudited financial information.
Atmos Energy Corporation
|
||||||||
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
|
||||||||
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/
Analysts and Media Contact:
Dan Meziere (972) 855-3729
Source: Atmos Energy Corporation