ATO · 10-Q · 2026Q2 · Full report

Operating Expense Trends

ATMOS ENERGY CORP · 2026-08-05 · Importance 30 · Surprise 14 · Contradicted

Distribution-segment operating expenses increased $65.6 million, or 5.4%, year over year to $1,281.9 million for the nine months ended June 30, 2026.,The distribution increase included $69.2 million of higher depreciation and property taxes, $11.7 million of additional system monitoring, line locating, and compliance costs, and $9.3 million of higher employee-related costs.,Pipeline and storage operating expenses decreased $10.8 million, or 3.1%, to $331.4 million, despite $20.7 million of higher depreciation and property taxes.,Texas infrastructure-spending legislation contributed $46.8 million to distribution operating expenses and $41.7 million to pipeline and storage operating expenses during the nine-month period.

Key facts

• Nine months ended June 30, 2026 distribution segment was partially offset by a $69.2 million increase in depreciation expense and property taxes associated with increased capital investments source
• Three months ended June 30, 2026 distribution segment purchased gas cost: $237,072 thousand vs $255,883 thousand for 2025 (change $(18,811) thousand) source
• Three months ended June 30, 2026 distribution segment operating expenses: $428,505 thousand vs $415,783 thousand for 2025 (change $12,722 thousand) source
• Distribution segment three-months partially offset by a $20.0 million increase in depreciation expense and property taxes associated with increased capital investments source
• Distribution segment three-months partially offset by a $9.4 million increase in employee-related costs primarily due to increased headcount and labor costs source

Impact estimates