ATO · 10-Q · 2026Q2

ATMOS ENERGY CORP

Filed 2026-08-05 · Utilities · View original filing on EDGAR

Ranked Events

• Financing ActivitiesImportance 78 · Surprise 74
  Financing activities provided $1.727 billion of cash during the nine months ended June 30, 2026, up $429.6 million from $1.297 billion in the prior-year period. The company received approximately $2.2 billion in net…
• Outstanding IndebtednessImportance 66 · Surprise 40
  Long-term debt increased to $10.251 billion at June 30, 2026 from $8.919 billion at September 30, 2025, while short-term debt remained zero. Long-term debt represented 40.2% of capitalization at June 30, 2026, compared…
• Capital Expenditure ProgramImportance 64 · Surprise 42
  Atmos Energy anticipates approximately $26 billion of capital expenditures between fiscal 2026 and 2030 to modernize its distribution and transmission systems, comply with safety regulations, and support community…
• Revenue Performance and MixImportance 64 · Surprise 56
  Distribution-segment operating revenue increased $152.2 million, or 4.0%, year over year to $3,911.2 million for the nine months ended June 30, 2026, despite a 7.9% decline in sales volumes to 230,000 MMcf.,Pipeline and storage operating revenue increased $122.2 million, or 15.5%, to $909.0 million, driven by $78.7 million of additional Mid-Tex and affiliate transportation revenue and $40.8 million of additional third-party transportation revenue.,Pipeline transportation volumes increased 3.6% to 526,249 MMcf, while distribution throughput decreased 7.9% to 344,756 MMcf.,Approximately 70% of distribution revenue is earned during the first six months of the fiscal year, and about 50% of distribution revenue excluding gas costs is recovered through base customer charges.
• Dividend IncreaseImportance 50 · Surprise 58
  Cash dividends increased during the nine months ended June 30, 2026 because the dividend rate rose 14.9% and the number of shares outstanding increased. The 2026 dividend-rate increase was larger than the 8.1% increase…
• Net Income and ProfitabilityImportance 47 · Surprise 48
  Net income increased 20% year over year to $1,227.6 million, or $7.33 per diluted share, for the nine months ended June 30, 2026, from $1,023.9 million, or $6.40 per diluted share.,The increase primarily reflected positive rate outcomes from safety and reliability spending and a $132.4 million benefit from Texas infrastructure-spending legislation effective in the third quarter of fiscal 2025.,Higher depreciation, property taxes, safety and compliance spending, and employee-related costs partially offset the earnings improvement.,Distribution-segment net income increased $104.6 million to $795.9 million, while pipeline and storage net income increased $99.1 million to $431.6 million.
• Operating Cash Flow TrendsImportance 43 · Surprise 32
  Operating cash flow was $1.671 billion for the nine months ended June 30, 2026, compared with $1.701 billion in the prior-year period. The $29.9 million decrease was primarily caused by the timing of gas cost…
• Liquidity and Debt PositionImportance 42 · Surprise 6
  Atmos Energy had $3.1 billion of total availability under four committed revolving credit facilities and a $1.5 billion commercial paper program as of June 30, 2026. The company had $4.5 billion of capacity remaining…
• Rate Case OutcomesImportance 40 · Surprise 42
  During the first nine months of fiscal 2026, Atmos Energy implemented ratemaking proceedings that increased annual operating income by $242.8 million, or $238.8 million excluding a $4.0 million excess deferred income…
• Income Tax Rate ChangesImportance 35 · Surprise 48
  The effective tax rate increased to 20.0% from 19.2% for the three months ended June 30, 2026 and to 20.3% from 19.1% for the nine-month period.,Nine-month income tax expense increased $71.8 million, or 29.8%, to $241.5 million, based on pretax income growth and the higher effective tax rate.,The effective tax rates remained below the 21% federal statutory rate primarily because of excess deferred federal income-tax amortization, tax credits, state income taxes, and other permanent book-to-tax differences.,Regulatory excess net deferred tax liabilities totaled $86.0 million, of which $38.6 million was being returned to customers and $46.4 million was being returned provisionally.
• Interest Rate EnvironmentImportance 32 · Surprise 24
  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…
• Distribution Volume TrendsImportance 30 · Surprise 40
  Distribution total throughput decreased 7.8% to 350,495 MMcf for the nine months ended June 30, 2026 from 380,130 MMcf in the prior-year period. Gas sales volumes declined 10.2% to 229,995 MMcf, including a 12.6%…
• Market Demand TrendsImportance 30 · Surprise 40
  Atmos Energy serves approximately 3.4 million residential, commercial, public authority and industrial customers across six distribution divisions in eight states. Distribution sales volumes decreased 10.2% year over…
• Operating Expense TrendsImportance 30 · Surprise 14
  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.
• Pipeline Customer DemandImportance 25 · Surprise 32
  Atmos Pipeline-Texas provides transportation and storage services to the Mid-Tex Division, third-party local distribution companies, industrial and electric generation customers, marketers and producers. For the nine…
• Geographic Market CommentaryImportance 20 · Surprise 24
  The distribution business operates in eight states, with approximately 97% of residential and commercial revenues covered by weather normalization adjustments across specified periods in Kansas, West Texas, Tennessee,…

Revenue by Product (in thousands)