Atmos Energy (ATO) Q3 2024 earnings summary

Executive summary

• Fiscal year-to-date diluted EPS reached $6.00, up from $5.33 in the prior year, driven by regulatory outcomes, customer growth, and favorable tax legislation.

• Net income for the nine months ended June 30, 2024 was $908.9 million, up 18% year-over-year.

• Capital expenditures totaled $2.13 billion YTD, with 82% allocated to safety and reliability.

• Regulatory strategy executed with $380.4 million in rate increases implemented and $182.2 million in progress.

• Annual dividend increased 8.8% to $3.22 per share, marking 40 consecutive years of dividend growth.

Financial highlights

• Q3 net income was $166 million (up from $138 million YoY); nine-month net income was $908.9 million (up from $767 million YoY).

• Q3 diluted EPS: $1.08 (vs. $0.94 YoY); nine-month diluted EPS: $6.00 (vs. $5.33 YoY).

• Operating revenues for the nine months ended June 30, 2024 were $3.51 billion, down from $3.69 billion YoY due to lower gas costs.

• Capital expenditures increased to $2.13 billion, with higher spending in distribution offset by lower pipeline and storage investment.

• Cash flow from operations was $1.40 billion for the nine months, down from $3.22 billion in the prior year due to prior-year Texas securitization receipts.

Outlook and guidance

• Fiscal 2024 EPS guidance expected at the higher end of $6.70–$6.80.

• Fiscal 2024 capital expenditure guidance set at approximately $3.1 billion.

• Management expects full-year earnings to be at the upper end of guidance based on year-to-date performance.

• Liquidity of $4.3 billion expected to be sufficient for working capital and capital expenditures for the remainder of fiscal 2024.

• Pending ratemaking efforts seek $176.5 million in additional annual operating income.