Atmos Energy Corporation Reports Earnings for Fiscal 2024 First Quarter; Affirms Fiscal 2024 Guidance
- Earnings per diluted share of $2.08 on net income of $311.3 million.
- Capital expenditures were $769.7 million with 82% focused on safety and reliability.
- 60.2% equity capitalization and $3.2 billion in available liquidity.
- Fiscal 2024 earnings per diluted share guidance reaffirmed in the range of $6.45 - $6.65.
- Quarterly dividend increased 8.8% to $0.805 per common share.
- Annual dividend for fiscal 2024 is $3.22.
- None.
Insights
Atmos Energy Corporation's recent financial results demonstrate a robust fiscal position, with a notable earnings per diluted share (EPS) of $2.08 and net income of $311.3 million. The company's commitment to capital reinvestment, particularly the $769.7 million focused on safety and reliability, is a strong indicator of its long-term strategic planning. The substantial equity capitalization at 60.2% suggests a conservative capital structure that could provide resilience against market volatility.
Furthermore, the 8.8% increase in the quarterly dividend to $0.805 per share, with an indicated annual dividend of $3.22 for fiscal 2024, reflects a confidence in cash flow stability and a commitment to shareholder returns. This is likely to be well-received by investors looking for consistent income. The reaffirmed EPS guidance for fiscal 2024 also provides a clear expectation for future performance, which is crucial for investor confidence.
Atmos Energy's strategic focus on modernizing its natural gas distribution, transmission and storage systems aligns with industry trends towards enhancing infrastructure reliability and safety. The company's investment in these areas, constituting 82 percent of its capital expenditures, is an essential component of customer retention and regulatory compliance, potentially reducing operational risks and future liabilities.
The company's ability to secure $161.9 million in annualized regulatory outcomes, including the settlement of Atmos Pipeline – Texas' general rate case, indicates adept regulatory management and an environment conducive to stable revenue streams. This is particularly relevant in the utility sector, where regulatory dynamics can significantly impact financial performance.
Atmos Energy's positioning within the natural gas sector is strengthened by its recent financial outcomes. The company's ongoing investment in infrastructure and the resultant reliability and safety enhancements are critical in a sector that is increasingly focused on operational excellence and regulatory compliance. The commitment to providing safe natural gas services is not only a corporate responsibility but also a competitive advantage that can lead to sustained customer trust and regulatory support.
The company's projected annual earnings per share growth in the six to eight percent range suggests a stable and growing demand for natural gas services, despite the broader energy market's volatility and the ongoing transition to renewable energy sources. This growth trajectory may reflect the essential role that natural gas is expected to play as a transition fuel in the shift towards a lower-carbon economy.
Fiscal Year to Date Highlights
-
Earnings per diluted share of
$2.08 $311.3 million -
Capital expenditures were
$769.7 million -
Strong financial profile with
60.2% equity capitalization and$3.2 billion -
Implemented
$161.9 million Texas' general rate case.
Outlook
-
Fiscal 2024 earnings per diluted share guidance reaffirmed in the range of
$6.45 $6.65 -
Fiscal 2024 capital expenditures are expected to approximate
$2.9 billion -
The company's Board of Directors increased the quarterly dividend
8.8% to$0.80 5$3.22
"Our first quarter results reflect the continued execution of our proven strategy by all of our 5,000 dedicated employees of operating safely and reliably while we modernize our natural gas distribution, transmission, and storage systems," said Kevin Akers, president and chief executive officer of Atmos Energy Corporation. "This strategy, along with our employees' continued focus on our vision to be the safest provider of natural gas services, continues to benefit our customers, our communities, and it positions us to continue delivering annual earnings per share growth in the six to eight percent range,” Akers concluded.
Conference Call to be Webcast February 7, 2024
Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2024 first quarter financial results on Wednesday, February 7, 2024, at 9:00 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. The conference call will be webcast live on the Atmos Energy website at www.investors.atmosenergy.com/events-and-presentations. 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 release, 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240206240155/en/
Analysts and Media Contact:
Dan Meziere (972) 855-3729
Source: Atmos Energy Corporation
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