ATO

ATMOS ENERGY CORP

Utilities | Large Cap

$0.88

EPS Forecast

$809.6

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2024-12-31
EX-99.1 2 ato20200204exhibit991.htm EXHIBIT 99.1 Exhibit



Exhibit 99.1
g528915g02g72a24.jpg
 
 
 
News Release
Analysts and Media Contact:
Jennifer Hills (972) 855-3729

Atmos Energy Corporation Reports Earnings for Fiscal 2020 First Quarter;
Reaffirms Fiscal 2020 Guidance
DALLAS (February 4, 2020) - Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its first quarter ended December 31, 2019.

First Quarter Highlights

Earnings per diluted share of $1.47
Consolidated net income of $178.7 million 
Capital expenditures were $529.2 million, an increase of 27 percent
Approximately 86 percent of capital spending related to system safety and reliability investments    
Outlook

Earnings per share is expected to be in the range of $4.58 to $4.73 per diluted share for fiscal 2020.
Capital expenditures is expected to be in the range of $1.85 billion to $1.95 billion in fiscal 2020.
The company's Board of Directors has declared a quarterly dividend of $0.575 per common share. The indicated annual dividend for fiscal 2020 is $2.30, which represents a 9.5% increase over fiscal 2019.
“Our first quarter results reflect the continued dedication of our employees to execute our strategy of investing in safety and reliability,” said Kevin Akers, President and Chief Executive Officer of Atmos Energy Corporation. “We remain on track to deliver annual earnings per share growth between 6% and 8% for fiscal 2020."
Results for the Three Months Ended December 31, 2019
Consolidated operating income increased $16.3 million to $252.8 million for the three months ended December 31, 2019, compared to $236.5 million in the prior year, which primarily reflects positive rate outcomes and customer growth in our distribution business, partially offset by higher operation and maintenance, depreciation and property tax expenses.
Distribution operating income increased $10.9 million to $180.3 million for the three months ended December 31, 2019, compared with $169.4 million in the prior year. The increase reflects a net $27.0 million increase in rates, primarily in our Mid-Tex, Mississippi,

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Louisiana and West Texas divisions. In addition, customer growth increased $4.0 million, primarily in our Mid-Tex division. These increases were partially offset by a decrease in consumption of $1.4 million, primarily in our Mid-Tex division, an $8.6 million increase in operation and maintenance expense due primarily to pipeline and maintenance activities and higher employee costs, as well as a $9.2 million increase in depreciation and property tax expenses associated with increased capital investments.
Pipeline and storage operating income increased $5.5 million to $72.5 million for the three months ended December 31, 2019, compared with $67.0 million in the prior year. This increase is primarily attributable to a $13.7 million increase in revenue from our GRIP filing approved in fiscal 2019, partially offset by a $5.1 million increase in operation and maintenance expense primarily due to well integrity costs and a $2.6 million increase in depreciation expense due to increased capital investments.
Capital expenditures increased $112.8 million to $529.2 million for the three months ended December 31, 2019, compared with $416.4 million in the prior year, due to continued spending for infrastructure replacements and enhancements.
For the three months ended December 31, 2019, the company generated operating cash flow of $172.4 million, a $7.8 million increase compared with the three months ended December 31, 2018. The year-over-year increase is primarily attributable to working capital changes, particularly in our distribution segment resulting from the timing of payments for natural gas purchases and deferred gas cost recoveries.
Our equity capitalization ratio at December 31, 2019 was 58.6%, compared with 59.0% at September 30, 2019. The decrease primarily reflects the effects of long-term debt issuances in October 2019.

Conference Call to be Webcast February 5, 2020
Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2020 first quarter financial results on Wednesday, February 5, 2020, at 9:00 a.m. Eastern Time. The domestic telephone number is 877-407-3088 and the international telephone number is 201-389-0927. Kevin Akers, President and Chief Executive Officer and Chris Forsythe, Senior Vice President and Chief Financial Officer, will participate in the conference call. The conference call will be webcast live on the Atmos Energy website at www.atmosenergy.com. A playback of the call will be available on the website later that day.

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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 in 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 news release, including the risks and uncertainties 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 factors include the risks and uncertainties discussed in Item 1A of the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2019 and in subsequent filings with the Securities and Exchange Commission.
Although the company believes 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. The company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

About Atmos Energy
Atmos Energy Corporation is the nation’s largest fully regulated, natural gas-only distributor of safe, clean, efficient and affordable energy. As part of our vision to be the safest provider of natural gas services, we are modernizing our business and our infrastructure while continuing to invest in safety, innovation, environmental sustainability and our communities. An S&P 500 company headquartered in Dallas, Atmos Energy serves more than 3 million distribution customers in over 1,400 communities across eight states and manages proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas.  Find us online at http://www.atmosenergy.com, Facebook, Twitter, Instagram and YouTube.
This news release should be read in conjunction with the attached unaudited financial information.


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Atmos Energy Corporation
Financial Highlights (Unaudited)

 
 
 
 
 
Statements of Income
 
Three Months Ended December 31
(000s except per share)
 
2019
 
2018
Operating revenues
 
 
 
 
Distribution segment
 
$
828,504

 
$
838,835

Pipeline and storage segment
 
148,176

 
134,470

Intersegment eliminations
 
(101,117
)
 
(95,523
)
 
 
875,563

 
877,782

Purchased gas cost
 
 
 
 
Distribution segment
 
397,558

 
437,732

Pipeline and storage segment
 
99

 
(358
)
Intersegment eliminations
 
(100,789
)
 
(95,209
)
 
 
296,868

 
342,165

Operation and maintenance expense
 
152,245

 
138,600

Depreciation and amortization
 
105,062

 
96,065

Taxes, other than income
 
68,607

 
64,488

Operating income
 
252,781

 
236,464

Other non-operating income (expense)
 
4,887

 
(7,723
)
Interest charges
 
27,229

 
27,849

Income before income taxes
 
230,439

 
200,892

Income tax expense
 
51,766

 
43,246

Net income
 
$
178,673

 
$
157,646

 
 
 
 
 
Basic net income per share
 
$
1.47

 
$
1.38

Diluted net income per share
 
$
1.47

 
$
1.38

Cash dividends per share
 
$
0.575

 
$
0.525

Basic weighted average shares outstanding
 
121,113

 
113,800

Diluted weighted average shares outstanding
 
121,359

 
113,832


 
 
 
 
 
 
 
Three Months Ended December 31
Summary Net Income by Segment (000s)
 
2019
 
2018
Distribution
 
$
129,757

 
$
114,385

Pipeline and storage
 
48,916

 
43,261

Net income
 
$
178,673

 
$
157,646



 
 
 
 
 
 
 
 
 
 






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Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
 
Condensed Balance Sheets
 
December 31,
 
September 30,
(000s)
 
2019
 
2019
Net property, plant and equipment
 
$
12,250,423

 
$
11,787,669

Cash and cash equivalents
 
189,272

 
24,550

Accounts receivable, net
 
435,616

 
230,571

Gas stored underground
 
115,259

 
130,138

Other current assets
 
71,982

 
72,772

Total current assets
 
812,129

 
458,031

Goodwill
 
730,706

 
730,706

Deferred charges and other assets
 
594,867

 
391,213

 
 
$
14,388,125

 
$
13,367,619

 
 
 
 
 
Shareholders' equity
 
$
6,127,775

 
$
5,750,223

Long-term debt
 
4,324,285

 
3,529,452

Total capitalization
 
10,452,060

 
9,279,675

Accounts payable and accrued liabilities
 
308,113

 
265,024

Other current liabilities
 
537,009

 
479,501

Short-term debt
 

 
464,915

Current maturities of long-term debt
 
50

 

Total current liabilities
 
845,172

 
1,209,440

Deferred income taxes
 
1,352,333

 
1,300,015

Regulatory excess deferred taxes
 
699,375

 
705,101

Deferred credits and other liabilities
 
1,039,185

 
873,388

 
 
$
14,388,125

 
$
13,367,619


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Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
 
Condensed Statements of Cash Flows
 
Three Months Ended December 31
(000s)
 
2019
 
2018
Cash flows from operating activities
 
 
 
 
Net income
 
$
178,673

 
$
157,646

Depreciation and amortization
 
105,062

 
96,065

Deferred income taxes
 
46,726

 
40,339

Other
 
(616
)
 
6,231

Changes in assets and liabilities
 
(157,400
)
 
(135,597
)
Net cash provided by operating activities
 
172,445

 
164,684

Cash flows from investing activities
 
 
 
 
Capital expenditures
 
(529,186
)
 
(416,404
)
Debt and equity securities activities, net
 
(1,602
)
 
(963
)
Other, net
 
2,553

 
2,074

Net cash used in investing activities
 
(528,235
)
 
(415,293
)
Cash flows from financing activities
 
 
 
 
Net decrease in short-term debt
 
(464,915
)
 
(575,780
)
Proceeds from issuance of long-term debt, net of premium/discount
 
799,450

 
596,994

Net proceeds from equity offering
 
259,005

 
494,734

Issuance of common stock through stock purchase and employee retirement plans
 
4,267

 
4,241

Cash dividends paid
 
(69,557
)
 
(58,722
)
Debt issuance costs
 
(7,738
)
 
(6,432
)
Net cash provided by financing activities
 
520,512

 
455,035

Net increase in cash and cash equivalents
 
164,722

 
204,426

Cash and cash equivalents at beginning of period
 
24,550

 
13,771

Cash and cash equivalents at end of period
 
$
189,272

 
$
218,197

 
 
 
Three Months Ended December 31
Statistics
 
2019
 
2018
Consolidated distribution throughput (MMcf as metered)
 
139,558

 
142,746

Consolidated pipeline and storage transportation volumes (MMcf)
 
156,529

 
170,527

Distribution meters in service
 
3,307,663

 
3,272,020

Distribution average cost of gas
 
$
4.01

 
$
4.30

###

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