Atmos Energy (ATO)2024-08-08 17:10Financial Data and Key Metrics - Fiscal year-to-date diluted earnings per share increased to 5.33 in the prior year period [6] - Operating income increased by 18 million from residential customer growth and industrial load in the distribution segment [6] - Pipeline and storage segment operating income increased by 11 million realized in the third fiscal quarter [6] - Consolidated O&M increased by 15 million decrease in the pipeline and storage segment [7][8] - Consolidated capital spending increased to 4.3 billion in liquidity at the end of the third fiscal quarter [10] Business Line Data and Key Metrics - Distribution segment spending increased due to higher safety and reliability spending and customer growth [9] - Pipeline and storage segment spending was lower than the prior year due to timing [9] - 380 million in annualized regulatory outcomes completed year-to-date, with an additional 19 million revenue increase [10] Market Data and Key Metrics - 57,000 new customers added in the 12 months ending June 30, with nearly 45,000 located in Texas [13] - Texas added 267,000 jobs over the last 12 months, representing a 1.9% annual growth rate [13] - 10 new industrial customers added in the third quarter with an anticipated annual load of 2 Bcf, and 32 new industrial customers added year-to-date with an anticipated annual load of 6 Bcf [14] Company Strategy and Industry Competition - Continued focus on compliance, maintenance, and system monitoring, with O&M spending expected to trend higher in the fourth fiscal quarter [8] - Fiscal 2024 O&M spending expected to be in the range of 820 million [8] - Fiscal 2024 capital spending on track to reach approximately 6.70 to 551 million in net proceeds from forward sale agreements satisfying most of fiscal 2025 equity needs [10][17] Other Important Information - 19 million in funding assistance provided to over 47,000 customers through energy assistance agencies [14] Q&A Session Summary Question: Equity needs for 2025 - The company typically issues 800 million in equity annually through the ATM program, with 551 million already priced to satisfy most of fiscal 2025 needs [16][17] Question: O&M execution for 2025 - O&M drivers for 2025 will include hydrostatic testing, line locating, integrity regulations, and markable placement on hard-to-locate lines, with a continued focus on 6% to 8% EPS growth [18][19][20] Question: Fiscal 2024 results and 2025 outlook - Fiscal 2024 results include 0.17 in one-time items, with APT spread benefits expected to continue into 2025 but at lower levels [21][22] - Elevated APT spreads in Q4 are already factored into the updated guidance [23][24] Question: APT spread dynamics and Matterhorn in-service date - No further maintenance expected on APT upstream segments, with Matterhorn expected to come online in September or October [26][27] - APT sharing mechanism benchmark set at $106.9 million, with no immediate implications for resetting the bar [29][30][31] Question: Opportunities from new gas generation or infrastructure - Potential opportunities exist to support gas movement for new generation, but the company would be one of several suppliers to power generators [32][33]