Atmos Energy (US:ATO)2026-02-04 15:02Financial Data and Key Metrics Changes - The company reported a fiscal 2026 first quarter net income of $403 million, or $2.44 per diluted share, representing a 9.4% increase over the prior year quarter [4][10] - First quarter capital expenditures totaled $1 billion, with over 85% focused on enhancing safety and reliability [4][10] - The rebased fiscal 2026 earnings per share guidance is in the range of $8.15-$8.35 per share [4][14] Business Line Data and Key Metrics Changes - The Atmos Pipeline-Texas division achieved several project milestones, including the installation of approximately 55 miles of pipeline and enhancements to the Bethel Salt Dome storage facility [5][6] - APT's through system revenues, net of Rider REV, increased by about $7 million, although through system volumes declined approximately 2 Bcf due to maintenance [10][11] Market Data and Key Metrics Changes - The company added nearly 54,000 new customers over the 12 months ending December 31, 2025, with approximately 42,000 in Texas [7] - Customer satisfaction ratings reached 98% for the quarter, and Atmos Energy was recognized for customer satisfaction in the South and Midwest regions [8][9] Company Strategy and Development Direction - The company continues to focus on system modernization and safety, with a capital spending plan of $4.2 billion [4][14] - The company is actively engaging in regulatory discussions regarding affordability and reliability, emphasizing the importance of investments for system performance [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage the impacts of Winter Storm Fern, noting minimal supply issues and effective gas supply planning [23][24] - The company remains on track to achieve its fiscal 2026 earnings guidance and is evaluating future needs for gas supply and storage based on customer growth [14][54] Other Important Information - The company completed over $1 billion of long-term debt and equity financing, with $600 million in long-term debt financing completed in October 2025 [12][13] - The company has $4.6 billion in available liquidity, including net proceeds from existing forward sale agreements [13][14] Q&A Session Summary Question: Discussion on the $35 million benefit for the quarter - Management indicated that the impact of the deferrals under House Bill 4384 will depend on spending timing and operational activities, maintaining guidance of $8.15-$8.35 per share [16][17] Question: Financial impacts from Winter Storm Fern - Management noted that the storm's impact was less severe than previous events, with effective gas supply planning mitigating potential issues [23][24] Question: Affordability pressures in regulatory proceedings - Management confirmed that affordability is a continuous topic with regulators, who understand the need for investment to maintain reliability and safety [31][32] Question: Opportunities in gas power projects - Management acknowledged ongoing inquiries regarding large loads and power generation but emphasized the need for signed contracts before making announcements [34] Question: Impact of recent political changes in Texas - Management stated that the company remains apolitical and will work with all stakeholders to emphasize the importance of natural gas for communities [38] Question: Mississippi rate case outcome - Management confirmed that the outcome will not adjust the overall investment plan, which focuses on safety and reliability [39][40]