The following is a summary of the Atmos Energy Corporation (ATO) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Atmos Energy reported a year-to-date diluted earnings per share of $6.00, up from $5.33 in the prior year period.

• The company's third quarter and fiscal year-to-date results were primarily driven by favorable regulatory outcomes and customer growth which increased operating income by $238 million.

• Operating income from residential customer growth and higher industrial load in the distribution segment contributed an additional $18 million.

• Pipeline and storage segment operations yielded a $19 million increase in operating income.

• Consolidated capital spending for the fiscal year rose to $2.1 billion, reflecting an 8% increase dedicated to safety and reliability improvements.

• Atmos anticipates ending the fiscal year 2024 on the high end of the EPS guidance range of $6.70 to $6.80.

Business Progress:

• The company experienced robust growth in residential customers, adding 57,000 new customers primarily in Texas, and strong industrial demand with 32 new industrial customers anticipated to add a significant annual load once fully operational.

• Atmos completed a $325 million senior unsecured debt offering, contributing to a strong financial position with $4.3 billion in liquidity and a 61% equity capitalization.

• Regulatory outcomes led to $213 million in annualized results, with $182 million more anticipated to be realized from pending outcomes.

Opportunities:

• Regulatory outcomes have favored the company, and additional annualized outcomes are in progress, expected to contribute positively.

• Expanded industrial customer base expected to boost long-term demand.

• Future growth anticipated from safety and system reliability improvements facilitated by regulatory incentives.

Risks:

• Spread activity on APT's system business is unpredictable and might not sustain the significant contributions observed this quarter.

• Operational and Maintenance (O&M) costs are expected to trend higher, influenced by increased staffing costs, insurance premiums, and IT maintenance, challenging profit margins.

More details: Atmos Energy IR

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