Atmos Energy Corporation Reports Earnings for Fiscal 2025 First Quarter; Affirms Fiscal 2025 Guidance

Rhea-AI Summary

Atmos Energy (NYSE: ATO) reported consolidated results for Q1 FY2025, with earnings per diluted share of $2.23 on net income of $351.9 million. The company's capital expenditures reached $891.2 million, with 86% dedicated to safety and reliability initiatives.

The company maintains a strong financial position with 60.3% equity capitalization and $5.2 billion in available liquidity. ATO implemented $150.5 million in annualized regulatory outcomes and reaffirmed its fiscal 2025 EPS guidance range of $7.05-$7.25.

The Board of Directors declared a quarterly dividend of $0.87 per common share, setting the indicated annual dividend for fiscal 2025 at $3.48, representing an 8.1% increase from fiscal 2024. Capital expenditure guidance for fiscal 2025 is projected at approximately $3.7 billion.

Positive

• EPS of $2.23 with net income of $351.9 million in Q1 FY2025
• Strong liquidity position with $5.2 billion available
• 8.1% increase in annual dividend to $3.48
• Implemented $150.5 million in annualized regulatory outcomes
• 86% of $891.2 million capital expenditures focused on safety and reliability

Negative

• None.

Insights

Financial Analyst

Atmos Energy's Q1 FY2025 results demonstrate robust financial execution and strategic positioning in the utilities sector. The reported EPS of $2.23 and net income of $351.9 million reflect the company's ability to generate consistent returns while maintaining significant infrastructure investments.

The $891.2 million capital expenditure, with 86% allocated to safety and reliability, represents a strategic approach to infrastructure modernization that typically yields stable regulatory returns. This investment strategy, combined with the successful implementation of $150.5 million in regulatory outcomes, showcases the company's ability to effectively navigate the regulatory environment and secure necessary rate adjustments.

The dividend increase of 8.1% to $3.48 annually is particularly noteworthy as it significantly outpaces inflation and positions ATO among the more attractive dividend growth utilities. This increase, supported by a strong balance sheet with 60.3% equity capitalization and $5.2 billion in available liquidity, indicates management's confidence in sustainable long-term cash flow generation.

The reaffirmed FY2025 guidance of $7.05-$7.25 EPS, coupled with planned capital expenditures of $3.7 billion, suggests a clear growth trajectory. This substantial capital program, primarily focused on system modernization and safety improvements, should drive rate base growth and support future earnings expansion through regulated returns.

DALLAS--(BUSINESS WIRE)-- Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its first fiscal quarter ended December 31, 2024. This news release should be read in conjunction with our Form 10-Q and earnings slides which are concurrently being posted at www.atmosenergy.com.

Fiscal Year Highlights

• Earnings per diluted share of $2.23 on net income of $351.9 million.
• Capital expenditures were $891.2 million; approximately 86% focused on safety and reliability.
• Strong financial profile with 60.3% equity capitalization and $5.2 billion in available liquidity.
• Implemented $150.5 million in annualized regulatory outcomes.

Outlook

• Fiscal 2025 earnings per diluted share guidance reaffirmed in the range of $7.05 - $7.25 per diluted share.
• Fiscal 2025 capital expenditure guidance expected to be approximately $3.7 billion.
• The company's Board of Directors has declared a quarterly dividend of $0.87 per common share. The indicated annual dividend for fiscal 2025 is $3.48, which represents an 8.1% increase over fiscal 2024.

"Our first quarter results reflect the continued execution of our proven strategy by all of our 5,300 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 and our communities,” Akers concluded.

Conference Call to be Webcast February 5, 2025

Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2025 first quarter financial results on Wednesday, February 5, 2025, at 9:00 a.m. Eastern Time. The domestic telephone number is 800-715-9871 and the international telephone number is 646-307-1963. The conference ID is 15904. 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, adverse weather, 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; failure of technology that affects the Company's business operations; 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 legislation to reduce or eliminate greenhouse gas emissions or fossil fuels; 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, a natural gas-only distributor, is an S&P 500 company headquartered in Dallas. We safely deliver reliable, efficient, and abundant natural gas to over 3.3 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.

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Analysts and Media Contact:

Dan Meziere (972) 855-3729

Source: Atmos Energy Corporation

FAQ

What is Atmos Energy's (ATO) earnings per share for Q1 2025?

Atmos Energy reported earnings of $2.23 per diluted share for Q1 FY2025.

How much did Atmos Energy (ATO) increase its dividend for fiscal 2025?

Atmos Energy increased its annual dividend by 8.1% to $3.48 per share for fiscal 2025.

What is Atmos Energy's (ATO) capital expenditure guidance for 2025?

Atmos Energy expects capital expenditures of approximately $3.7 billion for fiscal 2025.

What is Atmos Energy's (ATO) EPS guidance range for fiscal 2025?

Atmos Energy reaffirmed its fiscal 2025 EPS guidance range of $7.05-$7.25 per diluted share.

How much liquidity does Atmos Energy (ATO) have available?

Atmos Energy has $5.2 billion in available liquidity with a 60.3% equity capitalization.