Atmos Energy (US:ATO)2025-08-07 15:00Financial 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]