Atmos Energy (ATO) - 2025 Q1 - Quarterly Report

Tax Rates and Liabilities - The effective tax rates for the three months ended December 31, 2024 and 2023 were 18.4% and 14.7%, differing from the federal statutory tax rate of 21% due to various adjustments [75]. - The regulatory excess net deferred tax liability is $198.8 million, with$135.3 million being returned to customers over 12 - 60 months [76]. Commodity Contracts and Hedging - As of December 31, 2024, the company had 15,053 MMcf of net long commodity contracts outstanding, which have not been designated as hedges [85]. - For the 2024-2025 heating season, the company anticipates hedging approximately 24.0 Bcf of winter flowing gas requirements [81]. Interest Rate Agreements - The net loss on settled interest rate agreements for the three months ended December 31, 2024 and 2023 was $(5.1) million and$(3.2) million [89]. - As of December 31, 2024, the company had $391.0 million of net realized gains in AOCI associated with interest rate agreements [92]. - The total other comprehensive income (loss) from hedging for the three months ended December 31, 2024 was$16.6 million, compared to $(50.2) million in 2023 [91]. - The company manages interest rate risk by entering into financial instruments to fix the Treasury yield component of anticipated financings [82]. Financial Instruments and Fair Value - The fair value of financial instruments is determined using observable market prices and other pricing information, with no changes in methods during the three months ended December 31, 2024 [95]. - The company’s financial instruments included$4.063 million in liabilities as of December 31, 2024 [99]. Assets and Liabilities - Total assets as of December 31, 2024, amounted to $230.515 million, an increase from$206.882 million as of September 30, 2024 [99]. - The company recorded $76.8 million and$79.7 million in other current liabilities as of December 31, 2024 and September 30, 2024, respectively [77]. - The total debt and equity securities reached $109.564 million as of December 31, 2024, compared to$110.594 million as of September 30, 2024, indicating a slight decrease [99]. - The carrying amount of long-term debt as of December 31, 2024, was $8.435 billion, up from$7.785 billion as of September 30, 2024 [103]. - The fair value of long-term debt as of December 31, 2024, was $7.485 billion, compared to$7.338 billion as of September 30, 2024 [103]. - No allowance for credit losses was recorded for available-for-sale debt securities as of December 31, 2024 [101]. - The amortized cost of available-for-sale debt securities was $39.3 million as of December 31, 2024, compared to$38.9 million as of September 30, 2024 [101]. - The company maintained investments in bonds with contractual maturity dates ranging from January 2025 through November 2027 [101]. - There were no material changes in the concentration of credit risk during the three months ended December 31, 2024 [104]. Compliance and Modifications - The company’s review of interim financial statements confirmed no material modifications were needed for conformity with U.S. GAAP [106].