Atmos credited rate case outcomes, increased customer consumption and increased customer growth in its distribution segment for the higher revenues.
Atmos Energy received consolidated net income of $629.5 million for the six months ending March 31, an increase from the corresponding prior-year period.
In addition, the company made capital expenditures of $1.42 billion during that six-month period, with the expectation that capital expenditures will reach $2.7 billion during the entirety of the fiscal year.
Both outcomes were reported by Atmos during a May 4 call with investment analysts. Company executives also detailed during the call recent rate-case outcomes and financial results for the three months and six months ending March 31. Some of those details are as follows:
Results for the Three Months Ending March 31, 2023
The company reported consolidated operating income of $422.6 million for the three-month period ending March 31. That’s an increase of $37.5 million from the $385.1 million it reported during the corresponding prior-year period. Atmos credited rate case outcomes, increased customer consumption and increased customer growth in its distribution segment for the higher revenues.
In addition, the company reported distribution operating income of $335.3 million for the quarter. That’s up by $24 million over the $311.3 million from the corresponding prior-year period. Atmos credited a net $52.5 million increase in rates for the revenue change, as well as $14.9 million from consumption and a $5.8 million increase from customer growth. Offsets included increases in operation and maintenance expenses, administrative costs and bad debt expenses associated with higher rates.
Pipeline and storage operating income increased $13.5 million to $87.3 million for the quarter, up from $73.8 million in the prior-year quarter. The company attributed much of the increase to a $21 million change in rates from a Gas Reliability Infrastructure Program filing approved by the Texas Railroad Commission during fiscal 2022.
Results for the Six Months Ending March 31, 2023
Atmos reported an $82.8 million increase in consolidated operating income for the six months ending March 31, bringing the total for that period to $743.8 million.
The company also reported a $65.3 million increase in distribution operating income during the six-month period, bringing the total to $567.1 million. That’s compared with $501.8 million from the corresponding period in 2023.
Pipeline and storage operating income increased $17.5 million to $176.7 million for the six-month period. That’s compared with $159.2 million in the prior-year period. Contributing to the change was a $42 million increase from a GRIP filing approved in fiscal 2022.
Key Rate Activity
The company reported the following rate activity — both completed and in-progress — through May 3:
- $81 million — Mid-Tex Cities Rate Revenue Mechanism
- $7.3 million — West Texas Cities RRM
- $113.8 Million — Mid-Tex Cities RRM (In Progress)
- $84.8 million — Atmos Pipeline Texas Gas Reliability Infrastructure Program (In Progress)
- $19.7 million — Mid-Tex Dallas Area Rate Review (In Progress)
- $18.8 million — Mid-Tex GRIPs (In Progress)
- $9 million — West Texas GRIPs (In Progress)
About Atmos Energy
Headquartered in Dallas, Atmos Energy is the country’s largest natural gas-only distributor with more than 3 million distribution customers in over 1,400 communities across eight states, primarily in the South. For more information about the utility’s quarterly report, follow this link.