Financial Data and Key Metrics Changes - Consolidated earnings for 2025 were reported at $2.32 per share, an increase from $2.19 per share in 2024, reflecting a strong year [11][12] - Net income at the electric company rose to approximately $500 million, or $2.47 per share, up from $470 million, or $2.33 per share in the previous year [12] - The holding company reported a loss of $29 million, or $0.15 per share, slightly higher year-over-year due to increased interest expense [12] Business Line Data and Key Metrics Changes - The electric company experienced strong load growth, with weather-normalized load increasing approximately 7% [12] - Customer growth was just under 1%, indicating a stable service area performance [12] Market Data and Key Metrics Changes - The service area continues to attract investment, supported by low rates and reliable service [12] - The company expects customer count to increase about 1% and weather-normalized load to grow 4%-6% in 2026 [14] Company Strategy and Development Direction - The company is focused on long-term growth through generation and transmission opportunities, with plans to advance its transmission strategy and secure approvals for new projects [4][5] - A draft Integrated Resource Plan (IRP) was issued, outlining a long-term resource strategy and identifying approximately 1.9 GW of capacity needs by 2031 [17] - The company aims to maintain affordability while investing in reliability and growth, with a commitment to keeping rates among the lowest in the nation [8][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial plan, anticipating continued earnings growth in the top half of the 5%-7% EPS growth range through 2028 [18] - The company highlighted the importance of balancing affordability and execution in its investment strategy [18] Other Important Information - The company executed a well-subscribed equity offering and filed for generation pre-approval for the 300 MW Frontier Energy Storage Project [4][5] - A rate review is planned for mid-year in Oklahoma, with potential evaluations in Arkansas later in the year [14] Q&A Session Summary Question: Rate base growth versus investment plan - Management indicated that the current plan suggests a rate-based growth of about 9%, with opportunities for incremental growth [22][23] Question: Large load customer updates - Management confirmed ongoing negotiations with six to seven large load customers, with a significant agreement nearing conclusion [24] Question: Weather-normalized load growth moderation - Management explained that the moderation in load growth is typical and reflects broader trends, with expectations of continued growth [30][31] Question: Black Kettle Energy Storage capacity purchase agreement - Management affirmed a preference for owning and operating generation assets, which supports their strategy for low-cost, reliable service [34] Question: Capital prioritization and generation capacity - Management emphasized flexibility in capital allocation, focusing on affordability while planning for additional generation [35][36] Question: 765 kV transmission line project - Management provided preliminary estimates indicating that the company's portion of the project could be around 20% of the current capital plan [40][41] Question: Data center contract and customer protections - Management confirmed that the contract with Customer X is included in the IRP and highlighted customer protections being built into the tariff framework [43][44]

Financial Data and Key Metrics Changes - For fiscal year to date 2025, the company reported net income of $1 billion or $6.4 per diluted share, with updated earnings per share guidance ranging from $7.35 to $7.45 [3][11] - Operating income increased by $322 million due to regulatory outcomes, with residential customer growth and rising industrial load contributing an additional $22 million [11][12] - Consolidated capital spending rose by 22% to $2.6 billion, with 86% dedicated to improving safety and reliability [13][15] Business Line Data and Key Metrics Changes - The pipeline and storage segment saw revenue increases of $12.5 million primarily due to increased throughput [11] - The distribution segment experienced strong residential customer growth, adding nearly 58,000 new residential customers year to date, with approximately 45,000 in Texas [4][11] - Industrial demand remained robust, with 22 new industrial customers added year to date, expected to generate an annual load of approximately 3.4 Bcf [5][11] Market Data and Key Metrics Changes - Texas added over 198,000 jobs in the last twelve months, reflecting a 1.4% annual growth rate, which supports the demand for natural gas [4] - The company achieved a 97% customer satisfaction rating, indicating strong customer service performance [7] Company Strategy and Development Direction - The company is focused on modernizing its natural gas distribution, transmission, and storage systems while ensuring reliable service to 3.4 million customers across eight states [3] - Recent Texas legislation (House Bill 4384) allows for increased deferral treatment of capital spending, which is expected to enhance financial flexibility and support future growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing role of natural gas in economic development and anticipates continued customer growth [4][6] - The company expects earnings per share to grow at a rate of 6% to 8% annually, with a full update on the five-year plan to be provided in November [17] Other Important Information - The company has been recognized as the most trusted brand in 2025 by Eskom, reflecting its strong reputation among customers [8] - The company finished the third quarter with an equity capitalization of 60% and approximately $5.5 billion in liquidity [16] Q&A Session Summary Question: Clarification on the $0.10 increase from Texas legislation - Management clarified that the $0.10 reflects the impact of the legislation from June 20 through the end of fiscal 2025, effectively one quarter [22] Question: Inquiry about the through system commentary - Management indicated that they expect a more normal operating environment for fiscal 2026, with adjustments based on market conditions [25][26] Question: Capital outlay for the data center project in Abilene - Management noted ongoing inquiries for similar projects across their service territory, with updates to be provided once contracts are signed [30][32] Question: Clarification on the percentage of capital spending eligible for deferral - Management confirmed that the 80% figure applies to Atmos as a whole, with most of the increase related to APT's investments [34] Question: Impact of stronger operating cash flow on financing future growth - Management stated that they will continue to finance growth using a balanced mix of equity and long-term debt, anticipating increased operating cash flow [42]