Atmos Energy (US:ATO)2021-02-01 16:00Financial Instruments and Hedging - As of December 31, 2020, the company had 11,641 MMcf of net long commodity contracts outstanding, which have not been designated as hedges[60]. - For the 2020-2021 heating season, the company anticipates hedging approximately 39% of its winter flowing gas requirements, equating to 15.8 Bcf[57]. - The company typically seeks to hedge between 25% and 50% of anticipated heating season gas purchases using financial instruments[57]. - The company manages interest rate risk through financial instruments, effectively fixing the Treasury yield component of anticipated financings[58]. - The company’s financial instruments include over-the-counter options and swaps, valued using a market-based approach[76]. Financial Performance and Losses - The company reported a net loss on settled interest rate agreements of $1.5 million for the three months ended December 31, 2020[65]. - The company had $113.4 million of net realized losses in AOCI associated with interest rate agreements as of December 31, 2020[68]. - The company recognized an increase in the fair value of interest rate agreements amounting to $59,042 thousand for the three months ended December 31, 2020[67]. Assets and Liabilities - The total assets reported as of December 31, 2020, amounted to $256,424 thousand, including financial instruments valued at $150,398 thousand[74]. - Total assets as of December 31, 2020, amounted to $184.63 million, with financial instruments valued at $80.68 million[76]. - The carrying amount of long-term debt increased to $5.16 billion as of December 31, 2020, up from $4.56 billion on September 30, 2020[79]. - The fair value of long-term debt as of December 31, 2020, was $6.29 billion, compared to $5.60 billion as of September 30, 2020[79]. - Total debt and equity securities reached $103.95 million, with registered investment companies contributing $37.83 million and bond mutual funds $29.17 million[76]. - The amortized cost of available-for-sale debt securities was $33.9 million as of December 31, 2020, reflecting a slight increase from $32.6 million on September 30, 2020[76]. - No allowance for credit losses was recorded for available-for-sale debt securities as of December 31, 2020[76]. - The company maintained investments in bonds with contractual maturity dates ranging from January 2021 through December 2023[76]. Credit Risk - There were no material changes in the concentration of credit risk during the three months ended December 31, 2020[80].