Financial Data and Key Metrics Changes - The company reported net income of $119 million or $1.98 per diluted share, an increase from $99.3 million or $1.75 in the same period last year [5][9] - Revenues increased by approximately $52 million from new rates and $2 million from continued customer growth [9] - First quarter O&M expenses were approximately 2% higher than the first quarter last year, with a projected 4% CAGR in O&M expenses across the five-year plan [10][54] Business Line Data and Key Metrics Changes - The company completed $178 million worth of capital projects this quarter, consistent with the same period last year [14] - Nearly 8,000 new meters were installed through April, driven by new housing developments in major metropolitan areas [17] Market Data and Key Metrics Changes - Weather across service territories was 5% colder than normal and 16% colder than the first quarter last year, contributing to strong customer demand [9] Company Strategy and Development Direction - The company aims for an earnings per share CAGR of approximately 6% through 2029, with reduced capital intensity and related funding needs [7] - The company is focused on in-sourcing activities to improve efficiency and reduce costs, with ongoing efforts in line locating services [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the upper half of stated guidance ranges due to strong financial performance and effective expense management [9] - The company is well-positioned to respond to ongoing demand for new housing and is exploring opportunities to serve power generation needs [18] Other Important Information - The Board of Directors declared a dividend of $0.67 per share, unchanged from the previous quarter [11] - The company received the American Gas Association Safety Award for having the lowest rate of significant injuries among peers for the eighth consecutive year [8] Q&A Session Summary Question: O&M expenses and sustainability - Management noted that O&M expenses have been managed effectively, achieving a 1.9% year-over-year increase in Q1, and expressed caution about future trends due to labor market conditions [21][23] Question: Legislative impacts in Texas - Management indicated that proposed legislation could benefit the company by improving recovery rates on investments, but emphasized a cautious and opportunistic approach to legislative changes [26][27] Question: Guidance for the year - The guidance increase is attributed to strong margins from customer demand and better-than-expected cost management [35] Question: Project details in Austin - The project in Austin is not a significant investment but highlights the company's strategic approach to linking initiatives for growth [36] Question: Tariff impacts on operations - Management stated that the company is insulated from tariff impacts due to direct supplier relationships established before COVID-19 [39] Question: Weather impact on working capital - Strong demand due to weather conditions has increased working capital needs, but management expects some relief as the company moves out of winter [46] Question: Future of in-sourcing program - The in-sourcing program will continue, with a focus on efficiency and innovation, but will not be rushed to completion [49]