Atmos collected $271.9 million in consolidated net income across its multi-state system during the three months ending December 31, 2022, the gas utility reports.
Atmos also reports consolidated capital expenditures totaling $795.7 million for the same quarter, with approximately 88 percent of that spending relating to system safety and reliability investments. In total, capital expenditures should approximate $2.7 billion in fiscal 2023, according to the company.
Speaking with financial analysts February 7, Atmos executives also revealed that they continue awaiting proceeds from state-authorized securitization financing in Texas from Winter Storm Uri. Until that securitization financing is complete, the company anticipates refinancing the storm-related debt though term loans, existing credit facilities and cash — and passing along carrying cost to ratepayers, according to information provided to financial analysts.
“We are deferring all those financing costs into a regulatory asset and then we’ll address with the (Texas Railroad) Commission the appropriate recovery of those costs,” said Atmos chief financial officer Christopher T. Forsythe.
Company officials also announced the following first quarter financial results during their call with analysts:
- The company’s consolidated operating income increased $45.3 million to $321.2 million during the quarter. The income increase was primarily due to rate increases and customer growth.
- Distribution operating income increased $41.3 million to $231.8 million, as compared with $190.5 million in the prior-year quarter. Atmos credited the quarterly increase to a $57.5 million increase in rates, a $5.7 million decrease in refunds of excess deferred taxes to customers and customer growth of $2.4 million.
- Pipeline and storage operating income increased $4 million to $89.4 million, compared with $85.4 million from the prior-year quarter. Atmos listed a $21 million increase from the Gas Reliability Infrastructure Program approved during fiscal 2022 as a key driver for revenues in this sector.
- Regarding recent rate-setting developments, Atmos officials implemented during the quarter a $81.4 million Rate Review Mechanism settlement with cities in its Mid-Tex division, and a $7.3 million RRM settlement with cities in its West Texas division. Officials said a rate proceeding remains pending under the Dallas Area Rate Review Mechanism process. The potential value of that DARR proceeding is $19.7 million, and new rates under it should be in place by the end of the fiscal year.
About Atmos Energy
Atmos Energy, headquartered in Dallas, is the country’s largest natural gas-only distributor. The company claims more than 3 million distribution customers in more than 1,400 communities across eight states, primarily in the South. You can read more about its recent quarterly report, here.