Natural gas distribution companies offer services to transport natural gas from the region of production to millions of consumers across the United States. The utilities under the Zacks Utility Gas Distribution industry control miles of underground pipeline network to provide natural gas services to customers. The rising demand for clean, burning natural gas will create more opportunities for natural gas distribution companies.Sempra Energy (SRE) , with its widespread transmission and distribution lines and ...

Analyst Call to Review Fiscal 2024 First Quarter Financial Results February 7, 2024 9:00 a.m. Eastern Fiscal Q1 2024 Review ...

Financial Data and Key Metrics - Q1 2024 net income was $311 million, or $2.08 per diluted share, representing an 8.9% increase from $1.91 per share in the prior year quarter [7][14] - Consolidated operating income increased by 24% to $399 million in Q1 2024, driven by rate increases, customer growth, and lower O&M expenses [14] - Capital spending in Q1 2024 was $770 million, supporting system modernization and growth [7] - The company added over 58,000 new customers in the 12 months ended December 31, 2023, with 44,000 located in Texas [8] - 11 new industrial customers were added, expected to consume approximately 2.5 Bcf of gas annually, equivalent to 45,000 residential customers [9] Business Line Performance - In the APT segment, several projects were completed to enhance system safety, reliability, and supply diversification, including the Line PC and Line S2 projects [10][11] - The Line WA Loop project's first phase was completed, adding 24 miles of 36-inch pipeline to fortify the APT system serving the Dallas-Fort Worth Metroplex [12] - Customer satisfaction remained high at 98% in Q1 2024, and the company assisted nearly 17,000 customers with over $5 million in funding assistance [12] Market Performance - Texas added nearly 370,000 jobs in 2023, representing a 2.7% annual growth rate, outpacing the national average [9] - The Texas Workforce Commission reported a record high of over 14.1 million seasonally adjusted employees in January 2024 [8] Strategic Direction and Industry Competition - The company continues to focus on modernizing its natural gas distribution, transmission, and storage systems to become the safest provider of natural gas services [7] - Regulatory filings have resulted in $167 million in annualized outcomes, with additional filings planned to seek $340 million to $370 million in annualized operating income increases [17] - The company remains committed to organic growth and system modernization, with limited interest in M&A due to strong organic growth and favorable regulatory constructs [50] Management Commentary on Operating Environment and Future Outlook - Management highlighted the challenging weather conditions and praised employees for their dedication to customer service [7] - The company expects fiscal 2024 EPS to be in the range of $6.45 to $6.65, inclusive of the favorable impact of property tax legislation changes in Texas [19] - Management remains confident in the company's ability to sustain success through operational, financial, and regulatory execution [19] Other Important Information - The company is cooperating with the National Transportation Safety Board in investigating an incident in Jackson, Mississippi, that resulted in one fatality [13] - The company completed over $1.1 billion in long-term debt and equity financing in Q1 2024, maintaining a strong balance sheet with 60% equity capitalization and $3.2 billion in available liquidity [18] Q&A Session Summary Property Tax Impact - The property tax legislation in Texas is expected to reduce property tax expenses by $20 million to $22 million in fiscal 2024, with an EPS impact of $0.09 to $0.11 [24][25] - The benefit is temporary and will be returned to customers over the next two and a half years [42] Customer Growth Expectations - Customer additions are expected to pick up in the spring, driven by strong demand in the Dallas-Fort Worth Metroplex and diversified industrial growth [27][28] Rate Cases - General rate cases in West Texas and MidTex are expected to be routine, with no contentious issues anticipated [30] O&M and Inflation - The company remains comfortable with its O&M expense range of 3% to 3.5%, despite inflationary pressures [35] Winter Storm Performance - The company performed well during a historic winter storm, with natural gas meeting 85% of energy demand during the period [37][38] M&A Philosophy - The company remains focused on organic growth and system modernization, with no plans for M&A due to strong growth and favorable regulatory constructs [50] Legislative Updates - The company is monitoring legislative sessions but has no significant updates at this time [53] Bad Debt Expense - The $14 million reduction in bad debt expense in Q1 2024 was reflected in the company's guidance and is not expected to impact future periods [58]

Atmos Energy (ATO) posted first-quarter fiscal 2024 earnings of $2.08 per share, which missed the Zacks Consensus Estimate of $2.09 by 0.47%. However, the bottom line improved by 8.9% from the year-ago quarter’s $1.91 per share.The year-over-year increase in earnings was due to rate-case outcomes in both the Distribution and Pipeline and Storage segments and customer growth in the Distribution segment. This was partially offset by increased depreciation expenses and higher interest expenses.RevenuesTotal re ...

Atmos Energy (ATO) reported $1.16 billion in revenue for the quarter ended December 2023, representing a year-over-year decline of 21.9%. EPS of $2.08 for the same period compares to $1.91 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.71 billion, representing a surprise of -32.39%. The company delivered an EPS surprise of -0.48%, with the consensus EPS estimate being $2.09.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Atmos Energy (ATO) came out with quarterly earnings of $2.08 per share, missing the Zacks Consensus Estimate of $2.09 per share. This compares to earnings of $1.91 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -0.48%. A quarter ago, it was expected that this natural gas utility would post earnings of $0.74 per share when it actually produced earnings of $0.80, delivering a surprise of 8.11%.Over the last four quarters, the c ...

DALLAS--(BUSINESS WIRE)--Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its first fiscal quarter ended December 31, 2023. 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 to Date Highlights Earnings per diluted share of $2.08 on net income of $311.3 million. Capital expenditures were $769.7 million with approximately 82 percent focused on safety and reliability. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-10042 | --- | --- | |----------------------------------------------------------------------------------------|----------------- ...

In its upcoming report, Atmos Energy (ATO) is predicted by Wall Street analysts to post quarterly earnings of $2.09 per share, reflecting an increase of 9.4% compared to the same period last year. Revenues are forecasted to be $1.71 billion, representing a year-over-year increase of 15.5%.Over the last 30 days, there has been an upward revision of 2.7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initia ...

Atmos Energy Corporation (ATO) is scheduled to release first-quarter fiscal 2024 results on Feb 6, after market close. The company delivered an earnings surprise of 8.1% in the last reported quarter.Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.Factors to NoteAtmos Energy continues to invest systematically. More than 90% of capital investments start earning returns within six months, which is expected to have boosted its bottom line in the first quarter. The com ...