The effect of tax refunds led to year-over-year income decreases from various sectors, the company reports.
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Bolstered by $32.2 million in rate increases, Atmos Energy has collected $190.5 million in operating income from its multi-state distribution sectors during the first quarter of the 2022 fiscal year, according to a company filing.
A $4.3 million increase from customer growth also contributed to that multi-state distribution income, according to the company. Separately, Atmos reports $85.4 million in pipeline and storage operating income for the first fiscal quarter — income that comes in part by $14.5 million in rate increases.
However, the effect of tax refunds led to year-over-year income decreases from various sectors, the company reports.
Atmos Energy serves more than 3 million distribution customers across eight states, including 2 million customers in Texas. Its Mid-Tex division covers Dallas, Fort Worth and a large swath of central and north Texas. Atmos also operates a West Texas division and a Texas pipeline division.
During a February 9 call with financial analysts, Chief Executive Officer Kevin Akers and Chief Financial Officer Chris Forsythe reported consolidated net income of $249.2 million for the first fiscal quarter, which ended December 31, 2021. The executives reported system-wide capital expenditures of $684.2 million for the quarter, with approximately 88 percent of that spending relating to system safety and reliability investments.
Looking forward, the company projects capital expenditures in the range of $2.4 billion to $2.5 billion in fiscal 2022.
HIGHLIGHTS
Other highlights of the company’s first quarter earnings call include:
- The company’s consolidated operating income decreased $22.9 million for the first fiscal quarter of 2022, as compared to the same quarter during FY 2021. The refund of excess deferred income taxes reduced operating income by $38.8 million year over year. Excluding the impact of these refunds, operating income increased $15.9.
- Distribution operations income decreased $19.1 million for the first fiscal quarter, as compared to the same period during the prior fiscal year. The company reported that refunds of excess deferred taxes reduced operating income by $28.8 million year over year.
- Pipeline and storage operating income decreased $3.9 million for the first fiscal quarter, as compared to the same period during the prior fiscal year. The company reported that refunds of excess deferred income taxes decreased operating income by $10 million. Key income drivers for this segment include a $14.5 million increase from Gas Reliability Infrastructure Program rate increases in Texas.
- Capital expenditures increased $227.4 million to $684.2 million for the first fiscal quarter, as compared to the same period during the prior fiscal year. The increase was due to continued system modernization spending.
TEXAS EARNINGS
With regard to its holdings in Texas, Atmos reported:
- A requested increase of $13.6 million in annual operating income through the Dallas Annual Rate Review Mechanism. The company filed the DARR request on January 14, 2022.
- The implementation on December 1, 2021 of a $55.5 million-increase in annual operating income for Mid-Tex Cities, authorized through a 2020 Annual Rate Review Mechanism filing. The increase is $21.7 million net of excess deferred income tax amortization.
- The implementation on December 1, 2021 of a 3.5 million-increase in annual operating income for West Texas Cities, authorized through a 2020 Annual Rate Review Mechanism filing. The increase is $200,000 net of excess deferred income tax amortization.