ATO · 10-Q · 2026Q2 · Full report

Interest Rate Environment

ATMOS ENERGY CORP · 2026-08-05 · Importance 32 · Surprise 24 · Matches filing data

Atmos Energy manages interest-rate risk by using financial instruments to fix the Treasury yield component of interest costs associated with anticipated financings. As of June 30, 2026, the company had $460.4 million of net realized gains in accumulated other comprehensive income related to settled interest-rate agreements, with $19.1 million expected to be recognized in earnings over the next twelve months and $441.3 million thereafter through fiscal 2056. Long-term debt carrying value increased to $10.225 billion at June 30, 2026 from $8.935 billion at September 30, 2025, while fair value was $9.380 billion versus $8.273 billion. During the nine months ended June 30, 2026, Atmos completed approximately $2.2 billion of long-term debt and equity financing.

Key facts

• Expected recognition in earnings of deferred net gains recorded in AOCI thereafter: $441,323 thousand source
• Total expected recognition in earnings of deferred net gains recorded in AOCI: $460,441 thousand source
• As of June 30, 2026, Atmos Energy had $460.4 million of net realized gains in AOCI associated with its interest rate agreements source
• Expected recognition in earnings of deferred net gains recorded in AOCI next twelve months: $19,118 thousand source
• The fair value of contracts at end of period was $4,028 and $132,326 (in thousands) as presented in the fair value table. source
• Net (gain) loss on settled interest rate agreements reclassified from AOCI into interest charges for the nine months ended June 30, 2026: $(18.4) million source
• Net (gain) loss on settled interest rate agreements reclassified from AOCI into interest charges for the nine months ended June 30, 2025: $(15.4) million source
• Net (gain) loss on settled interest rate agreements reclassified from AOCI into interest charges for the three months ended June 30, 2026: $(6.1) million source

Impact estimates