Market Overview - Volatility has returned to Wall Street, with major indexes losing gains over the past couple of months due to uncertainty over the next rate cut and the impact of President Trump's tariffs on consumer sentiment [1][8] - Consumer sentiment fell in July, with the University of Michigan's preliminary consumer sentiment index dropping to 58.6% from 61.7% in June, missing analysts' expectations [4][10] Consumer Sentiment and Inflation - Households are expecting prices of goods to rise due to higher tariffs, leading to a decline in consumer sentiment [5][10] - Short-term inflation expectations worsened, with the projected 12-month inflation outlook rising to 4.9% in July from 4.5% in June, and the five-year inflation outlook increasing to 3.9% from 3.4% [5] Investment Recommendations - Given the current market conditions, it may be wise to focus on safe-haven stocks such as utilities and consumer staples, with Fortis, Inc. (FTS), New Jersey Resources Corporation (NJR), ONE Gas, Inc. (OGS), and Diageo plc (DEO) highlighted as attractive options [2][10] - These recommended stocks are categorized as low-beta stocks (beta greater than 0 but less than 1) with high dividend yields and favorable Zacks Ranks [3] Company Profiles Fortis, Inc. - Engaged in the electric and gas utility business, operating primarily in Canada, the United States, and the Caribbean [9] - Expected earnings growth rate of 4.6% for the current year, with a Zacks Rank 2 and a current dividend yield of 3.51% [11] New Jersey Resources Corporation - An energy services holding company providing natural gas and clean energy services [12] - Expected earnings growth rate of 12% for the current year, with a Zacks Rank 1 and a current dividend yield of 3.83% [13] ONE Gas, Inc. - A regulated natural gas distribution utility serving over 2.3 million customers in Oklahoma, Kansas, and Texas [14] - Expected earnings growth rate of 10.5% for the current year, with a Zacks Rank 2 and a current dividend yield of 3.54% [14] Diageo plc - Operates in approximately 180 countries, producing and distributing spirits, wine, and beer [15] - Expected earnings growth rate of 3.5% for the current year, with a Zacks Rank 2 and a current dividend yield of 2.87% [16]

Market Performance - The Hang Seng Index (HSI) closed at 25,270, down 1.0% for the day but up 26.0% year-to-date (YTD) [2] - The HSCEI also fell by 1.0% to 9,039, with a YTD increase of 24.0% [2] - The MSCI China index decreased by 0.3% to 82, with a YTD growth of 26.3% [2] Commodity Prices - Brent Crude oil prices fell by 0.4% to US$66 per barrel, down 9.4% YTD [3] - Gold prices decreased by 0.2% to US$3,330 per ounce, but are up 26.9% YTD [3] - The Baltic Dry Index (BDI) rose by 0.7% to 2,039, showing a significant YTD increase of 104.5% [3] Economic Indicators - China's GDP growth is estimated to have slowed to 4.8% in July from 5.2% in Q2 2025 [6] - Fixed Asset Investment (FAI) showed contraction due to multiple pressures, including adverse weather and property market challenges [7] - Consumption growth moderated in July, with policies shifting focus from durable goods to service consumption [8] Corporate Earnings - Towngas Smart Energy reported a 2% YoY earnings growth to HK$758 million in 1H25, slightly below expectations [10] - The company anticipates a 32% increase in earnings for 2H25 due to higher profits from its renewable business [10] - Shenhua Energy's acquisition of parent assets is expected to be EPS dilutive, with a total book value of RMB90.5 billion for the target assets [17]

Financial Data and Key Metrics Changes - Net income for the third quarter was $538,000 or $0.05 per share, compared to $157,000 or $0.02 per share in the same quarter last year, reflecting a significant increase [10] - Year-to-date net income increased to $13,500,000 or $1.31 per share, up 16% from $1.15 per share in the same period last year [11] Business Line Data and Key Metrics Changes - Total delivered gas volumes increased by 6% in the quarter compared to the previous year, driven by one industrial customer with high natural gas consumption [6] - Year-to-date delivered gas volumes increased by 15% due to a colder winter, with heating degree days up 18% [7] Market Data and Key Metrics Changes - The company experienced robust residential growth, installing 3.9 new main miles, which is 50% higher than the total installed in all of fiscal 2024 [5] - The company connected 541 new services through June 30, indicating strong demand [5] Company Strategy and Development Direction - The company is focused on investing in system safety and reliability, with a high priority on the SAFE program [5] - Economic development efforts are ongoing, with significant investments in the region, including a major deal with Google [17][24] Management's Comments on Operating Environment and Future Outlook - Management anticipates a modest net loss in the fourth quarter due to weather-sensitive volumes, while monitoring inflation and interest rates [22] - The company expects customer growth and system expansion to remain strong, particularly in light of the Google investment and ongoing housing developments [30][32] Other Important Information - Total capital expenditures year-to-date were $15.7 million, down approximately 5% from the same period last year [9] - The company has successfully refinanced its midstream debt, classifying most of it as long-term, which positions it well for future cash flow enhancements [14][15] Q&A Session Summary Question: Expectations for MVP growth in 2026 and customer growth related to Google - Management expects MVP growth to be significantly higher in 2026, with plans pushed from 2025 into 2026 [29][30] Question: Customer penetration along existing mains and impact of higher electricity rates - Management noted that there is strong potential for customer growth along existing mains, driven by higher electricity rates leading to conversions from non-natural gas sources [36][38]

Core Viewpoint - ONE Gas, Inc. (OGS) is positioned as a strong investment option in the utility sector due to its 100% regulated operations, customer base expansion, and strategic investments aimed at improving infrastructure and service efficiency [1] Group 1: Growth Projections - The Zacks Consensus Estimate for OGS's 2025 earnings per share (EPS) has risen by nearly 1.2% over the past 90 days to $4.32 [2] - The Zacks Consensus Estimate for 2025 sales is projected at $2.43 billion, reflecting a year-over-year increase of 16.6% [2] - OGS's long-term earnings growth rate is estimated at 5.56% over the next three to five years [2] Group 2: Dividend History - OGS plans to reward shareholders with an average annual dividend increase of 1-2% through 2029, contingent on board approval [3] - The current quarterly dividend stands at 67 cents per share, leading to an annualized dividend of $2.68 [3] - OGS's current dividend yield is 3.57%, significantly higher than the Zacks S&P 500 composite's yield of 1.16% [3] Group 3: Debt Position - OGS's total debt to capital ratio is 40.44%, which is better than the industry average of 51.09% [4] - The time-to-interest earned ratio at the end of Q2 2025 was 3, indicating the company's strong ability to meet future interest obligations [4] Group 4: Systematic Investments & Customer Growth - OGS's capital investment for 2025, including asset removal costs, is expected to be $750 million, with nearly $180 million allocated for customer extensions [5][8] - The ongoing capital expenditures focus on pipeline integrity, service extensions, system capacity increases, and cybersecurity [5] - Since 2015, OGS has consistently increased its customer base, with a 0.8% year-over-year growth in Q2 2025, serving 2,302,000 customers [6][8] - An average annual customer growth of 0.9% is anticipated through 2028 [6][8] Group 5: Price Performance - OGS's stock has increased by 4% over the past six months, outperforming the industry's growth of 2.2% [7]

Core Viewpoint - RGC Resources, Inc. reported significant growth in earnings for the third quarter of fiscal 2025, primarily driven by higher earnings from its investment in the Mountain Valley Pipeline, LLC (MVP) [1][2]. Financial Performance - For the third quarter ended June 30, 2025, the company achieved consolidated earnings of $538,412, or $0.05 per share, compared to $156,692, or $0.02 per share, for the same quarter in the previous year, marking a substantial increase [1]. - The net income for the first nine months of fiscal 2025 was $13,484,309, or $1.31 per share, reflecting a 16% increase from $11,620,074, or $1.15 per share, in the prior year [2]. - Operating revenues for the third quarter of 2025 were $17,264,615, up from $14,458,202 in the same quarter of 2024 [6]. - Operating expenses increased to $16,068,055 in the third quarter of 2025 from $12,900,609 in the previous year [6]. - The company reported operating income of $1,196,560 for the third quarter of 2025, compared to $1,557,593 in the same quarter of 2024 [6]. Investment and Operations - The CEO emphasized the company's commitment to creating value for shareholders and the community through safe and reliable energy provision, highlighting the success of MVP in delivering value [2]. - RGC Resources operates through its subsidiaries, Roanoke Gas Company and RGC Midstream, LLC, providing energy and related services in Virginia [3]. Balance Sheet Overview - As of June 30, 2025, total assets amounted to $324,757,993, an increase from $314,154,160 in 2024 [9]. - Current assets decreased to $21,595,712 from $25,408,031 year-over-year [9]. - Stockholders' equity rose to $116,261,318 from $108,767,792 in the previous year [9].

Core Insights - MDU Resources Group Inc. reported second-quarter 2025 operating earnings per share (EPS) of 7 cents, missing the Zacks Consensus Estimate of 13 cents by 46.2% and reflecting a year-over-year decrease of 76.7% [1][8] - Total operating revenues for the second quarter increased by 1.9% to $351.2 million compared to $344.5 million in the same period of 2024 [2][8] - Operating income fell to $30.4 million, down 23% from $39.5 million in the prior year, while total operating expenses rose by 5.2% to nearly $320.8 million [3][8] Financial Performance - As of June 30, 2025, cash and cash equivalents stood at $58.8 million, a decrease from $66.9 million as of December 31, 2024 [4] - Net cash provided by operating activities for the first half of 2025 was $334.9 million, up from $301.6 million in the same period last year [4] Guidance and Expectations - MDU Resources has narrowed its 2025 earnings guidance to a range of 88-95 cents per share, compared to the previous range of 88-98 cents, with the Zacks Consensus Estimate at 95 cents [5][8] - The company anticipates utility customer growth to continue at a rate of 1-2% annually [5][8] Market Position - MDU Resources currently holds a Zacks Rank 2 (Buy), indicating a favorable outlook in the market [6]

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][10] - Consolidated capital spending increased by 22% to $2.6 billion, with 86% dedicated to improving safety and reliability [13][14] - Operating income increased by $322 million due to regulatory outcomes, with residential customer growth contributing an additional $22 million [10][14] Business Line Data and Key Metrics Changes - The pipeline and storage segment saw revenue increase by $12.5 million primarily due to increased throughput [10] - The distribution segment experienced strong residential and industrial customer growth, adding nearly 58,000 new residential customers and 22 new industrial customers with an anticipated annual load of approximately 3.4 Bcf [4][5] 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 [6] Company Strategy and Development Direction - The company is focused on modernizing natural gas distribution, transmission, and storage systems while expanding customer service [3][6] - Recent Texas legislation allows for increased capital spending deferral treatment, which is expected to enhance financial flexibility and support future growth [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 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 [16] Other Important Information - The company has been recognized as the most trusted brand in 2025 among U.S. utility companies, reflecting its strong reputation in the market [7] - The company finished the third fiscal quarter with an equity capitalization of 60% and approximately $5.5 billion in liquidity [15] Q&A Session Summary Question: Clarification on the $0.10 increase from Texas legislation - The $0.10 reflects the impact of legislation from June 20 through the end of fiscal 2025, effectively one quarter [21] Question: Inquiry about the through system commentary - The company anticipates a more normal operating environment for fiscal 2026, adjusting based on market conditions [23][24] Question: Capital outlay for the data center project in Abilene - The company continues to receive inquiries for projects across its service territory, with updates to be provided once contracts are signed [30] Question: Clarification on the percentage of capital spending eligible for deferral - The 80% figure refers to Atmos as a whole, with the majority of the increase associated with APT's investments [32] Question: Impact of stronger operating cash flow on future financing - The company plans to finance future growth using a balanced mix of equity and long-term debt, anticipating increased operating cash flow [41]

Core Insights - Atmos Energy (ATO) reported third-quarter fiscal 2025 earnings of $1.16 per share, slightly missing the Zacks Consensus Estimate of $1.17 by 0.85%, but showing a year-over-year increase of 7.4% from $1.08 [1][8] - Total revenues reached $838.8 million, falling short of the Zacks Consensus Estimate of $938 million by 10.6%, yet reflecting a significant increase of 19.6% from the previous year's $701.5 million [2][8] Revenue Breakdown - Distribution segment net income was $70 million, marking a 6.1% increase from $66 million in the same quarter last year [3] - Pipeline and Storage segment income amounted to $116 million, representing a 16% increase from $100 million reported in the year-ago quarter [3] Operational Highlights - Operation and maintenance expenses were $222.1 million, up 5.1% from the prior year's level [4] - Operating income totaled $252.1 million, reflecting a 14.4% increase from the year-ago figure [4] - Interest expenses incurred were $41.5 million, a slight increase of 0.7% from the previous year [4] - Consolidated distribution throughput for the quarter was 75.4 million cubic feet, up 4% from the year-ago quarter [4] Financial Position - As of June 30, 2025, Atmos Energy reported approximately $5.5 billion in available liquidity [5] - Cash and cash equivalents stood at $709.4 million, a significant increase from $307.3 million as of September 30, 2024 [5] - Net cash flow from operating activities for the first nine months of fiscal 2025 was $1.7 billion, compared to $1.4 billion in the same period last year [5] Capital Expenditure and Guidance - In the first nine months of fiscal 2025, the company invested nearly $2.6 billion, with 86% allocated for enhancing the safety and reliability of its distribution and transportation systems [6] - Atmos Energy raised its fiscal 2025 earnings guidance to a range of $7.35-$7.45 per share, up from the previous guidance of $7.20-$7.30 [7][8] - Total net income is now expected to be between $1.185 billion and $1.205 billion, compared to earlier guidance of $1.15 billion to $1.17 billion [9] - The company anticipates fiscal 2025 capital expenditures to be $3.7 billion [9]

Financial Data and Key Metrics Changes - Net income for Q2 2025 was $32 million or $0.53 per diluted share, compared to $27.2 million or $0.48 in the same period last year, reflecting a year-over-year increase [4][7] - The company raised its full-year 2025 financial guidance, now expecting net income between $261 million and $267 million and earnings per diluted share between $4.32 and $4.42, both 2.5% above the respective midpoints of the initial guidance ranges [5][6] Business Line Data and Key Metrics Changes - Revenues for the second quarter increased by approximately $21.1 million from new rates and $1.5 million from continued customer growth [7] - Operating and maintenance expenses increased by 7.5% year-over-year, primarily due to higher labor-related expenses [7] Market Data and Key Metrics Changes - The Oklahoma Corporation Commission approved a $41.1 million revenue increase effective June, and Texas Gas Service filed a rate case requesting a $41.1 million increase [12][13] - The company installed nearly 11,400 new meters in the first half of the year, with a year-over-year increase of over 9% in new customer additions [16] Company Strategy and Development Direction - The company is focused on disciplined execution and long-term growth, with significant capital investments in system safety and reliability [18] - The Austin system reinforcement project is the largest capital investment since the company's separation from OneOak in 2014, aimed at expanding system capacity to support growing demand [15][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and the positive impact of Texas House Bill 4,384, which supports the recovery of system investments [5][25] - The company remains committed to balancing system needs with customer impact, emphasizing affordability in planning and implementation of rate mechanisms [12][14] Other Important Information - The company completed $190 million in capital projects during the second quarter, consistent with the same period last year [15] - The Board of Directors declared a dividend of $0.67 per share, unchanged from the previous quarter [10] Q&A Session Summary Question: Impact of House Bill 4,384 on financials - Management explained that House Bill 4,384 extends deferrals and accruals to all capital expenditures in Texas, potentially adding $4 million to $5 million of annual pretax earnings [24][25] Question: Long-term growth rate considerations - Management confirmed that the updated midpoint of guidance for 2025 will be used as the base for the new five-year range, consistent with past practices [35] Question: Texas capital plans and growth - Management stated that there will be no significant changes to capital plans due to the favorable bill enactment, but growth in Texas jurisdictions is expected to continue [38][39] Question: Texas rate case and consolidation benefits - Management noted that the consolidation of service areas will lead to efficiency and lower administrative costs, benefiting customers [46] Question: Opportunities in power load growth and data centers - Management highlighted significant inbound inquiries for data center and advanced manufacturing projects, emphasizing a strategic approach to enhance system resiliency [48][49] Question: Timeline for potential projects - Management indicated that some projects could manifest in the near term, while others may take longer depending on the required infrastructure [56]

Financial Data and Key Metrics Changes - NiSource reported second quarter adjusted EPS of $0.22, bringing the year-to-date total to $1.19, which is an increase of $0.13 from the same period last year [6][24] - The company narrowed its 2025 adjusted EPS guidance to the upper half of the previously stated range of $1.85 to $1.89 [7][25] - The company reaffirmed long-term financial commitments, projecting 6% to 8% annual adjusted EPS growth and 8% to 10% rate base growth through 2029 [25][30] Business Line Data and Key Metrics Changes - Strong performance was noted in both the NIPSCO and Columbia segments, which continue to outperform expectations [24] - The operational excellence initiatives, including Project Apollo and WAM, have enabled consistent and high-quality results across the business [25] Market Data and Key Metrics Changes - Customer growth was observed at nearly 1% in the electric business and 0.6% in the gas business, both surpassing forecasts [26] - Metro growth in Columbus, Ohio was reported to be 38% higher than the national average last year, indicating strong economic tailwinds [26] Company Strategy and Development Direction - NiSource's strategy focuses on disciplined capital deployment, operational excellence, and fostering constructive regulatory relationships [5][6] - The company is advancing its internal AI capabilities to enhance operational efficiency and create a sustainable competitive edge [7][8] - Regulatory achievements include a $40.7 million revenue increase in Virginia and a $257 million revenue uplift in Indiana, reinforcing stakeholder relationships [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for data centers in Northern Indiana and emphasized a disciplined approach to executing this opportunity [34][35] - The company remains focused on maximizing opportunities for stakeholders, including existing customers and communities, while maintaining financial integrity [35][16] Other Important Information - NiSource's five-year capital plan is valued at $19.4 billion, with 48% allocated to gas system hardening [22] - The company is actively engaging in commercial development of over $2 billion in identified upside projects [23] Q&A Session Summary Question: How is NiSource thinking about the data center opportunity in NIPSCO territory? - Management highlighted strong demand for data centers and emphasized a disciplined approach to execution, ensuring existing customers are protected while serving new ones [34][35] Question: How do the Genco application and counterparty negotiations relate to each other? - Management clarified that the Genco declination process and counterparty negotiations are separate but ongoing, with confidence in achieving a positive outcome [39][40] Question: What is the status of coal plant retirements and their impact on supply? - Management confirmed plans to retire the Schaeffer plant by the end of the year while working closely with state officials to align on capacity needs [58][59] Question: How does the financing strategy relate to the Genco structure? - Management indicated flexibility in financing strategies and emphasized the importance of strengthening the balance sheet to support future operations [62][64] Question: What is the timeline for the Genco declination process? - Management confirmed that all final filings are due soon, with an order expected by the end of the third quarter [78]