Latest news with #AtmosEnergy
Yahoo
4 days ago
- Business
- Yahoo
Atmos Energy Corp (ATO) Q3 2025 Earnings Call Highlights: Strong Financial Performance and ...
Net Income: Year-to-date fiscal '25 net income of $1 billion or $6.40 per diluted share. Earnings Per Share Guidance: Updated fiscal '25 EPS guidance to a range of $7.35 to $7.45. Customer Growth: Added nearly 58,000 new residential customers in the 12 months ended June 30, 2025. Industrial Customer Growth: Added 22 new industrial customers fiscal year-to-date with an anticipated annual load of approximately 3.4 Bcf. Operating Income Increase: Regulatory outcomes increased operating income by $322 million; residential customer growth and rising industrial load added $22 million. Pipeline and Storage Revenue: Increased by $12.5 million due to increased throughput. Operating and Maintenance Expenses: Increased by $85 million, primarily due to higher employee-related costs and other operational activities. Capital Spending: Increased 22% to $2.6 billion, with 86% dedicated to safety and reliability improvements. Liquidity: Approximately $5.5 billion of liquidity, including $1.7 billion of net proceeds from forward sale agreements. Debt Issuance: Issued $500 million in 10-year notes with a coupon of 5.2%. Weighted-Average Cost of Debt: 4.17% as of June 30. Equity Capitalization: 60% as of the third fiscal quarter. Warning! GuruFocus has detected 10 Warning Signs with ATO. Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Atmos Energy Corp (NYSE:ATO) reported a year-to-date fiscal 2025 net income of $1 billion or $6.40 per diluted share, reflecting strong financial performance. The company updated its fiscal 2025 earnings per share guidance to a range of $7.35 to $7.45, indicating positive future expectations. Atmos Energy Corp (NYSE:ATO) added nearly 58,000 new residential customers over the past year, with significant growth in Texas. The company successfully implemented approximately $170 million in annualized regulatory outcomes during the third fiscal quarter. Atmos Energy Corp (NYSE:ATO) maintains a strong financial position with an equity capitalization of 60% and approximately $5.5 billion of liquidity. Negative Points Consolidated operating and maintenance (O&M) expenses increased by $85 million, driven by higher employee-related costs and bad debt expenses. The company experienced a 22% increase in consolidated capital spending, which may impact cash flow and financial flexibility. Atmos Energy Corp (NYSE:ATO) faces challenges with higher bad debt expenses, partially due to regulatory changes in Mississippi. The company's guidance for fiscal 2026 earnings per share growth remains uncertain, pending further updates in November. Atmos Energy Corp (NYSE:ATO) anticipates a more normal operating environment for its through-system business in fiscal 2026, which may not match the strong performance of fiscal 2025. Q & A Highlights Q: Hi, good morning. I just want to start with that $0.10 increase from the Texas legislation that you called out. Is that essentially a half year's impact of the legislation that you're booking all in 4Q? Or how do we think about that $0.10 relative to the total uplift potential from the legislation? A: Yes, this is Chris. So the $0.10 reflects the impact of legislation beginning June 20 when the legislation became effective the end of fiscal 2025. So effectively one quarter. Q: Okay. Understood. That's helpful. And then I wanted to parse the through system commentary a little bit more. I know you said flat to '24 levels. Could you remind us what you'd originally expected in '25 on that front? I guess I'm just trying to think of the puts and takes of the Texas benefit relative to the through-system activities and how that might impact growth of '26? A: As we think about -- on the through-system business, we really didn't -- as we talked about a year ago, we had anticipated spreads that were probably more in line with historical norms. Obviously, in the first quarter, 1.5 quarters of this fiscal year with some of the takeaway capacity that had been delayed into late last year into early this year, that drove spreads. We also saw some volumes. As we think about fiscal 2026, as you sit here today, we're anticipating probably a more normal operating environment, both from a throughput and a spread perspective, then we'll adjust as we move through the fiscal year based upon what happens with the market. Q: Hi, good morning, everyone. Just wanted to follow up on the project discussed in the Abilene area with the data center. Just curious if you could kind of size up how big of a capital outlay that would be, whether you're seeing other potential projects like that in -- throughout the system? A: Dan, as we said on our previous calls, we continue to get inquiries in almost every state that we have right now, and they continue to go back and forth. Some of them are stand-alone, some of them are grouped together. But again, we'll continue to report on those once we have signed contracts and agreements to deliver natural gas service. But inquiry continues to be strong across the service territory. It's a matter of when those projects actually are signed and ready to break ground on those. As we move into the rest of the calendar year and into next year, we'll see how the load continues to develop on those, that particular project there in Abilene, again, we may have a little bit more additional clarity on growth of that load as we finish up a five-year plan. Q: Great. And then maybe just a point of clarification. You mentioned, I think, 45% total spending previously qualified for 209 and that moves up to 80%. Is that just in Texas? Or are you talking about Atmos a whole entity? A: Yes, the 80% was Atmos as a whole entity, if you will. And again, as I said in my comments, we believe the majority of that increase is reflected through APT's investment. Again, going back to the growth that we mentioned in the call, I continue to mention quarter-over-quarter, that's showing up and requires system investment inspect -- expansion as well as new supply points, expansion of storage, all those sort of investments on APT side to support the LDCs behind the system. Q: This is Fei for today. I just had a quick clarification on the $0.10. So it sounds like we should annualize that. Just Wondering how should we think about that lumping that into the 6% to 8% annual CAGR going to long term? A: Yes. It may be a little bit too simple to just take 10 multiple by 4 because what's predicated on how the -- when the deferral start is when assets are placed into service. So we have to think about what for each 1 of our projects, both in distribution and APT or the time or closings, if you will, placing those assets into service vis-a-vis when they will be all be reflected in the rates. So as we talked about, we're still modeling impact going forward, which is why we are -- we have a full update on FY '26 as well for one year plan and the five year plan when we roll that update that in November. Q: Understood. That's helpful. And maybe just a follow-up based off a stronger or more robust operating cash flow. I guess how does that affect your thoughts on financing the future growth, and do you see any possibility to moderate external equity needs? I mean understood you're mostly secured for '25, '26. But just wondering how should we think about that? A: Yes, Fei, we'll continue to finance the corporation or operating cash flow needs in a balanced fashion using blended mix of equity and long-term debt. And again, what you see the increase in the operating cash flow, that was something we had anticipated in developing the 5-year plan. And when we established the financing targets in that five year plan a year ago, that was contemplated. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
6 days ago
- Business
- Business Wire
Atmos Energy Corporation Reports Earnings for Fiscal 2025 Third Quarter; Raises Fiscal 2025 Guidance
DALLAS--(BUSINESS WIRE)--Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its third fiscal quarter ended June 30, 2025. This news release should be read in conjunction with our Form 10-Q and earnings slides which are concurrently being posted at Fiscal Year-to-Date Highlights Earnings per diluted share of $6.40 on net income of $1.0 billion. Capital expenditures were $2.6 billion; approximately 86% focused on safety and reliability. Strong financial profile with 60% equity capitalization and $5.5 billion in available liquidity. Implemented $321.8 million in annualized regulatory outcomes. Outlook Fiscal 2025 earnings per diluted share guidance expected to be in the range of $7.35 - $7.45 per diluted share. Fiscal 2025 capital expenditure guidance expected to be approximately $3.7 billion. The company's Board of Directors has declared a quarterly dividend of $0.87 per common share. The indicated annual dividend for fiscal 2025 is $3.48, which represents an 8.1% increase over fiscal 2024. "Our third quarter results reflect the hard work and dedication of all of our employees who provide exceptional customer service while safely and reliably operating our natural gas distribution, transmission, and storage systems," said Kevin Akers, president and chief executive officer of Atmos Energy Corporation. "Their continued focus on our vision to be the safest provider of natural gas services, while pursuing our proven strategy continues to benefit our customers and the communities we are proud to serve,' Akers concluded. Conference Call to be Webcast August 7, 2025 Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2025 third quarter financial results on Thursday, August 7, 2025, at 10:00 a.m. Eastern Time. The domestic telephone number is 800-715-9871 and the international telephone number is 646-307-1963. The conference ID is 15904. The conference call will be webcast live on the Atmos Energy website at A playback of the call will be available on the website later that day. Forward-Looking Statements The matters discussed in this news release may contain 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this news release are forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this news release or any of the company's other documents or oral presentations, the words 'anticipate', 'believe', 'estimate', 'expect', 'forecast', 'goal', 'intend', 'objective', 'plan', 'projection', 'seek', 'strategy' or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in this release, including the risks relating to regulatory trends and decisions, the company's ability to continue to access the credit and capital markets, and the other factors discussed in the company's reports filed with the Securities and Exchange Commission. These risks and uncertainties include the following: federal, state, and local regulatory and political trends and decisions, including the impact of rate proceedings before various state regulatory commissions; increased federal regulatory oversight and potential penalties; possible increased federal, state, and local regulation of the safety of our operations; possible significant costs and liabilities resulting from pipeline integrity and other similar programs and related repairs; the inherent hazards and risks involved in distributing, transporting, and storing natural gas; the availability and accessibility of contracted gas supplies, interstate pipeline, and/or storage services; increased competition from energy suppliers and alternative forms of energy; failure to attract and retain a qualified workforce; natural disasters, adverse weather, terrorist activities, or other events and other risks and uncertainties discussed herein, all of which are difficult to predict and many of which are beyond our control; failure of technology that affects the Company's business operations; the threat of cyber-attacks or acts of cyber-terrorism that could disrupt our business operations and information technology systems or result in the loss or exposure of confidential or sensitive customer, employee, or Company information; the impact of new cybersecurity compliance requirements; adverse weather conditions; the impact of legislation to reduce or eliminate greenhouse gas emissions or fossil fuels; the impact of climate change; the capital-intensive nature of our business; our ability to continue to access the credit and capital markets to execute our business strategy; market risks beyond our control affecting our risk management activities, including commodity price volatility, counterparty performance or creditworthiness, and interest rate risk; the concentration of our operations in Texas; the impact of adverse economic conditions on our customers; changes in the availability and price of natural gas; and increased costs of providing health care benefits, along with pension and postretirement health care benefits and increased funding requirements. Accordingly, while we believe these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. Further, the company undertakes no obligation to update or revise any of our forward-looking statements whether as a result of new information, future events or otherwise. About Atmos Energy Atmos Energy Corporation, a natural gas-only distributor, is an S&P 500 company headquartered in Dallas. We safely deliver reliable, efficient, and abundant natural gas to over 3.3 million distribution customers in over 1,400 communities across eight states located primarily in the South. As part of our vision to be the safest provider of natural gas services, we are modernizing our business and infrastructure while continuing to invest in safety, innovation, environmental sustainability, and our communities. Atmos Energy manages proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas. Find us online at Facebook, Twitter, Instagram and YouTube.
Yahoo
03-08-2025
- Business
- Yahoo
What Makes Atmos Energy Corporation (ATO) a Solid Pick for a Buy and Hold Portfolio
Atmos Energy Corporation (NYSE:ATO) is included among the 10 Best Dividend Stocks to Buy and Hold Forever. A close up of a regulator valve being connected to a pipeline. The Texas-based natural gas distribution company focuses on providing safe and reliable natural gas services and invests heavily in infrastructure upgrades and safety programs. In its fiscal Q2 2025 earnings, Atmos Energy Corporation (NYSE:ATO) highlighted that as part of its regulatory strategy, the company had implemented $153.2 million in regulatory initiatives by May 7, 2025, or $154.0 million when adjusted for excess deferred tax amortization. An additional $389.1 million worth of initiatives is currently underway. The company maintains a strong balance sheet, supported by approximately $5.3 billion in available liquidity and $1.0 billion in financing to sustain operations. It also issued $650 million in 30-year senior notes with a 5.00% interest rate and settled $380 million in equity forwards. As of March 31, 2025, the company's equity capitalization stood at 61%. Due to its solid balance sheet, Atmos Energy Corporation (NYSE:ATO) has grown its dividends for 41 consecutive years. The company currently pays a quarterly dividend of $0.87 per share and has a dividend yield of 2.23%, as of July 31. While we acknowledge the potential of ATO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Earnings Preview: What to Expect From Atmos Energy's Report
Valued at $24.6 billion by market cap, Atmos Energy Corporation (ATO) is one of the largest fully regulated natural gas-only utilities in the U.S., serving over 3.3 million customers across eight states through its distribution and pipeline & storage segments. The Dallas, Texas-based company operates more than 79,000 miles of distribution pipelines and over 5,700 miles of transmission pipelines, along with several underground storage facilities. ATO is set to deliver its third-quarter results after the markets close on Wednesday, Aug. 6. Ahead of the event, analysts expect the utility giant to report an adjusted EPS of $1.19, up 10.2% from $1.08 reported in the year-ago quarter. Moreover, the company has surpassed the Street's bottom-line expectations in each of the past four quarters, which is admirab. More News from Barchart Insider Trading Alert: Here's Who Bought Nvidia and AMD Stock Before the U.S. Chip Deal with China Dear Tesla Stock Fans, Mark Your Calendars for July 23 As QuantumScape Hits New 2025 Highs, Should You Buy, Sell, or Hold QS Stock? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For the current year, ATO is expected to report an adjusted EPS of $7.25, marking a 6.2% increase from $6.83 reported in fiscal 2024. ATO shares have soared 24.6% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 12.7% returns and the Utility Select Sector SPDR Fund's (XLU) 17.5% gains during the same time frame. On May 7, ATO shares rose marginally after reporting its Q2 results. Its revenue rose 18.4% year-over-year to $1.95 billion and net income stood at $486 million, driving EPS up to $3.03. Additionally, both its Distribution and Pipeline & Storage segments saw solid growth, while capital expenditures totaled $839.7 million for the quarter, focused primarily on safety and system reliability. Atmos also raised its full-year EPS guidance to $7.20–$7.30 and increased its dividend by 8.1%, reflecting continued operational momentum and regulatory success. The consensus view on ATO stock remains moderately optimistic, with a 'Moderate Buy' rating overall. Of the 14 analysts covering the stock, opinions include six 'Strong Buys,' one 'Moderate Buy,' and seven 'Holds.' ATO's mean price target of $160.82 indicates a 3.6% upswing from the current market prices. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Globe and Mail
11-07-2025
- Business
- Globe and Mail
4 Low-Beta Defensive Stocks to Buy as Rate Cut Uncertainty Continues
The uncertainty over the timing of the next rate cut persists as the Federal Reserve is still maintaining a cautious stance, with policymakers concerned about the inflationary pressures that are going to weigh on the economy's health, owing to President Donald Trump's tariffs. The minutes of the Federal Reserve's latest meeting, released on Wednesday, suggest that most officials are in no rush to go for an immediate rate cut. A delay in the rate cut could weigh on stocks and turn markets volatile. Given the uncertainty, it would be ideal to invest in safe-haven defensive stocks from the utility and consumer staples sectors. Four such plays are: Atmos Energy Corporation ATO, Fortis, Inc. FTS, Colgate-Palmolive Company CL and The Coca-Cola Company KO. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Also, these stocks are from the low-beta category (beta greater than 0 but less than 1). Hence, the recommended approach is to invest in low-beta stocks with a high dividend yield and a favorable Zacks Rank. Uncertainty Over Rate Cut Lingers The minutes of the Fed's latest meeting suggest that only a handful of officials believe that the central bank could go for a rate cut as early as this month. Most Federal Reserve officials have adopted a wait-and-see approach as they worry that Trump's tariffs, which will go into effect on Aug. 1, can build inflationary pressures. According to the minutes, 'most participants' at last month's Federal Reserve meeting believed that interest rate cuts would likely be suitable later this year, and any inflationary impact from tariffs was expected to be 'temporary or modest.' Although the minutes described the effect of upcoming tariffs as 'considerable uncertainty,' most of the officials believed that there was no urgency in going for rate cuts anytime soon.' Trump has been calling for immediate rate cuts and the resignation of Federal Reserve Chairman Jerome Powell, as he believes that the economy is losing hundreds of billions of dollars due to the delay. Investors have also lately been upbeat about a 25-basis-point rate cut in July, as they believe cooling inflation and a shrinking labor market give the Fed enough reasons to resume its interest rate cuts. However, it is unlikely that the Federal Reserve will cut rates in this month's FOMC meeting. This could turn markets volatile again. 4 Low-Beta Defensive Stocks With Growth Potential Atmos Energy Corporation Atmos Energy Corporation, along with its subsidiaries, is engaged in the regulated natural gas distribution and storage business. ATO serves nearly 3.3 million customers in more than 1,400 communities across eight states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. Atmos Energyoperates more than 73,000 miles of transmission and distribution lines as well as 5,700 miles of interstate pipelines. Atmos Energy has an expected earnings growth rate of 6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days. ATO presently carries a Zacks Rank #2. Atmos Energy has a beta of 0.70 and a current dividend yield of 2.27%. Fortis, Inc Fortis, Inc. is engaged in the electric and gas utility business. FTS offers regulated utilities, comprising electric and gas, as well as engages in non-regulated hydroelectric operations. Fortis operates primarily in Canada, the United States and the Caribbean. Fortis has an expected earnings growth rate of 3.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 60 days. Currently, FTS carries a Zacks Rank #2. Fortis has a beta of 0.48 and a current dividend yield of 3.81%. Colgate-Palmolive Company Colgate-Palmolive Company 's business strategy closely defines efforts to increase its leadership in key product categories through innovation in core businesses, tracking the adjacent categories' growth and expansion into new markets and channels. Due to the shift in consumer preference to organic and natural ingredients, CL is expanding its Naturals range, including Naturals toothpaste. Colgate-Palmolive Company has an expected earnings growth rate of 1.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. CL presently has a Zacks Rank #2. Colgate-Palmolive has a beta of 0.37 and a current dividend yield of 2.27%. The Coca-Cola Company The Coca-Cola Company 's strong brand equity, marketing, research and innovation help it to garner a market share of more than 40% in the non-alcoholic beverage industry. KO is putting its best foot forward to evolve its business model to become a total beverage company with something for everyone to drink. The Coca-Cola Company has coped with the industry-wide flattening of soda sales over the years by going on a buying spree and making investments in healthier alternatives like coffee, sparkling water and sports drinks. The Coca-Cola Company has an expected earnings growth rate of 3.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. KO currently carries a Zacks Rank #2. The Coca-Cola Company has a beta of 0.45 and a current dividend yield of 2.94%. #1 Semiconductor Stock to Buy (Not NVDA) The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow. One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO): Free Stock Analysis Report Colgate-Palmolive Company (CL): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report Fortis (FTS): Free Stock Analysis Report
