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ATO · ATMOS ENERGY CORP

27 filings

10-K

ATO 10-K Annual Reports

ATMOS ENERGY CORP - 27 annual reports

Filing record · 2016–202610-K1010-Q338-K133

2025
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2025
Atmos Energy Corporation (ATO) reported a strong fiscal year 2025, with net income increasing by approximately 15% to $1.199 billion, or $7.46 per diluted share. This growth was primarily driven by successful rate outcomes, reflecting investments in safety and reliability, and favorable legislative impacts in Texas regarding infrastructure spending. The company's capital expenditure program remained robust, with $3.6 billion invested, predominantly in modernizing its distribution and transmission systems to enhance safety and reliability. Atmos Energy also maintained a solid financial position, ending the year with approximately $4.9 billion in total liquidity and an equity capitalization of 60.3%, demonstrating its ability to fund its extensive capital investment plans and meet its financial obligations. The company's operational strategy continues to focus on modernizing infrastructure and reducing regulatory lag, which is supported by regulatory mechanisms in place across its service territories that allow for timely recovery of capital expenditures. Atmos Energy's commitment to safety is a core tenet, reflected in the significant portion of capital allocation dedicated to system integrity. The company's diversified operations across eight states provide a stable revenue base, and its proactive approach to regulatory engagement positions it well for continued investment and service delivery.
Nov 14, 2025
2024
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2024
Atmos Energy Corporation's 2024 10-K filing highlights a year of robust growth and strategic execution, driven by significant investments in infrastructure modernization and safety. The company, the largest natural gas-only distributor in the U.S., reported a notable increase in net income to $1,042.9 million, up from $885.9 million in the prior year, primarily attributed to positive rate outcomes and successful recovery of capital expenditures through various regulatory mechanisms. The company continues to focus on its vision of being the safest provider of natural gas services, emphasizing investments in its distribution and pipeline infrastructure across eight states. Key to its financial performance is the effective management of regulatory lag through formula rate mechanisms and infrastructure programs, allowing for timely recovery of capital investments. Atmos Energy's financial stability is further supported by its strong liquidity position and access to capital markets, although it remains subject to regulatory and operational risks inherent in the utility sector.
Nov 18, 2024
2023
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2023
Atmos Energy Corporation (ATO) reported a strong fiscal year 2023, demonstrating robust financial performance driven by significant capital investments in its distribution and pipeline infrastructure. The company successfully navigated regulatory landscapes, implementing rate adjustments that supported an increase in operating income across both its distribution and pipeline & storage segments. This growth was primarily fueled by ongoing modernization efforts and infrastructure programs designed to enhance safety and reliability, with a substantial portion of capital expenditures focused on these initiatives. The company also maintained a strong liquidity position and managed its debt effectively, ending the fiscal year with a solid equity capitalization. Investors can look to Atmos Energy's commitment to safety, infrastructure modernization, and regulatory efficiency as key drivers for future performance. The company's strategy of reducing regulatory lag through formula rate mechanisms and infrastructure programs ensures timely recovery of investments, providing a degree of earnings predictability. While facing typical industry risks such as regulatory changes and operational challenges, Atmos Energy's diversified service territory and focus on essential natural gas delivery position it favorably within the utility sector.
Nov 14, 2023
2022
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2022
Atmos Energy Corporation (ATO) reported solid financial performance for the fiscal year ended September 30, 2022, with net income of $774.4 million, an increase from $665.6 million in the prior year. This growth was driven by robust rate outcomes reflecting investments in safety and reliability, alongside customer growth. The company effectively managed increased operating costs, including employee-related expenses and higher depreciation, through a combination of operational efficiencies and favorable regulatory adjustments. The company's strategic focus on modernizing its infrastructure and reducing regulatory lag continues to yield positive results. Atmos Energy successfully implemented rate adjustments across its divisions, largely recovering capital expenditures within six months. With a strong capital program and robust liquidity, the company demonstrated its commitment to shareholder value by increasing its quarterly dividend. However, investors should remain aware of ongoing regulatory risks and the potential impacts of economic conditions and climate-related factors on future operations.
Nov 14, 2022
2021
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2021
Atmos Energy Corporation (ATO) reported a strong fiscal year 2021, driven by significant capital investments in safety and reliability across its natural gas distribution and pipeline operations. The company experienced a 17% increase in operating income for its distribution segment, primarily due to favorable rate adjustments and customer growth, partially offset by increased bad debt expense and maintenance costs. The pipeline and storage segment saw a slight decrease in operating income, mainly due to tighter regional spreads impacting APT's thru-system activities, though rate adjustments from GRIP filings provided a partial offset. Financially, ATO demonstrated resilience, with net income rising to $665.6 million ($5.12/share) from $601.4 million ($4.89/share) in the prior year, even after accounting for a non-recurring tax benefit in 2020. The company successfully managed its capital expenditures, with over 85% allocated to safety and reliability projects, and secured substantial long-term debt and equity financing. Despite a temporary credit rating downgrade by S&P following Winter Storm Uri, the company maintained investment-grade ratings and sufficient liquidity. The company's commitment to shareholder returns is evidenced by an 8.8% increase in its quarterly dividend for fiscal year 2022.
Nov 12, 2021
2020
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2020
Atmos Energy Corporation, the nation's largest natural-gas-only distributor, is primarily focused on the safe and reliable delivery of natural gas across eight states. The company's strategy centers on modernizing its infrastructure, investing in its workforce, and enhancing its safety culture. Key to its financial performance are its regulated operations, where it utilizes various rate mechanisms, including formula rate mechanisms and infrastructure programs, to minimize regulatory lag and ensure timely recovery of capital investments. These mechanisms allow for annual rate adjustments, improving the predictability of earnings. For the fiscal year ended September 30, 2020, Atmos Energy reported net income of $601.4 million, or $4.89 per diluted share. The company continued its capital investment program, allocating $1.9 billion primarily to safety and reliability improvements, with over 85% directed towards these initiatives. Financially, the company maintained a strong position with approximately $2.6 billion in total liquidity and a debt-to-capitalization ratio of 42%. The company also demonstrated its commitment to shareholders by increasing its quarterly dividend.
Nov 13, 2020
2019
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2019
Atmos Energy Corporation's fiscal year 2019 10-K report highlights a company focused on modernizing its natural gas distribution and transmission infrastructure, with capital expenditures increasing approximately 14% annually to support these initiatives. The company operates under a regulated model across eight states, with its primary segments being distribution and pipeline/storage. Atmos Energy benefits from regulatory mechanisms designed to reduce "regulatory lag" and ensure timely recovery of capital investments, which are crucial for maintaining safety and reliability. Financially, the company reported net income of $511.4 million or $4.35 per diluted share for fiscal year 2019. Adjusted net income (excluding the impact of the 2017 Tax Cuts and Jobs Act) showed growth, demonstrating operational improvements. The company also demonstrated a commitment to returning value to shareholders through increased dividends and a strong performance relative to its peer group over the past five years. Despite the capital-intensive nature of its business and ongoing regulatory processes, Atmos Energy appears well-positioned to continue investing in its infrastructure and delivering stable returns.
Nov 12, 2019
2018
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2018
Atmos Energy Corporation's (ATO) 2018 10-K filing highlights a year of strategic infrastructure investment and regulatory advancements. The company, a significant natural gas distributor, focused on modernizing its systems to enhance safety and reliability, which has driven an increase in its rate base and subsequently earnings per share. Key to this strategy are the company's efforts to reduce regulatory lag through mechanisms like formula rate plans and infrastructure programs, enabling timely recovery of capital expenditures. The company reported strong operational performance, with growth in its distribution and pipeline segments. A notable event impacting the financial results was the implementation of the Tax Cuts and Jobs Act of 2017 (TCJA), which led to a lower federal statutory income tax rate. While this generated a one-time non-cash tax benefit, the company is working with regulators to pass these savings on to customers through adjusted rates, demonstrating a commitment to customer benefit alongside shareholder value. Atmos Energy also continued its consistent dividend payout, reflecting confidence in its financial stability and future outlook.
Nov 13, 2018
2017
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2017
Atmos Energy Corporation (ATO) reported strong performance in its 2017 10-K filing, highlighting a significant increase in net income to $396.4 million, or $3.73 per diluted share, compared to the previous year. This growth was driven by successful rate outcomes across its regulated distribution and pipeline segments, which more than offset warmer weather conditions. The company's strategic focus on reducing regulatory lag and investing in infrastructure safety and reliability continues to yield positive results. Furthermore, Atmos Energy completed the divestiture of its non-regulated natural gas marketing business in January 2017, fully exiting this segment and redeploying proceeds to support infrastructure investments. The company maintained its commitment to shareholder value with a 7.8% increase in its quarterly dividend for fiscal year 2018, reflecting a stable financial position and positive outlook.
Nov 13, 2017
2016
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2016
Atmos Energy Corporation's (ATO) 10-K filing for the fiscal year ended September 30, 2016, highlights a company focused on regulated natural gas distribution and pipeline operations, serving over three million customers across eight states, primarily in the South. The company's strategy emphasizes safety, operational excellence, infrastructure investment, and employee development, aiming to deliver strong shareholder value. Significant capital expenditures were made to upgrade distribution and transmission systems, with recovery mechanisms in place to minimize regulatory lag. The company's financial performance in fiscal year 2016 showed net income growth to $350.1 million ($3.38 per diluted share), up from $315.1 million ($3.09 per diluted share) in the prior year. This growth was driven by positive rate outcomes and infrastructure investments, which more than offset warmer weather patterns and increased maintenance spending. Atmos Energy also announced plans to exit its nonregulated gas marketing business with the proposed sale of Atmos Energy Marketing, LLC (AEM) to CenterPoint Energy Services, Inc. The company's financial health remains robust, supported by an improved credit rating from Standard & Poor's and a strong liquidity position with an increased credit facility. The focus on regulated operations, which contributed 95% of consolidated net income in fiscal 2016, provides a stable and predictable earnings stream.
Nov 14, 2016
2015
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2015
Atmos Energy Corporation's (ATO) 2015 10-K filing highlights a financially stable year, marked by a 9% increase in net income to $315.1 million, or $3.09 per diluted share. This growth was driven by positive rate outcomes across its regulated distribution and pipeline segments, which together contributed approximately 95% of consolidated net income. The company continues to focus on safety and infrastructure reliability, investing significantly in its distribution and transmission systems, with a substantial portion of capital expenditures expected to be recovered through regulatory mechanisms that reduce lag. The company's strategy to reduce regulatory lag and ensure timely recovery of investments through formula rate mechanisms and infrastructure programs is proving effective. Despite a warmer-than-average weather year impacting some segments, particularly non-regulated operations, the overall financial performance remained strong. Atmos Energy also saw credit rating upgrades and affirmations, reflecting its consistent financial performance and prudent capital management. The company anticipates continued investment in infrastructure and growth, supported by its operating cash flows and access to capital markets.
Nov 6, 2015
2014
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2014
Atmos Energy Corporation's fiscal year 2014 report highlights strong financial performance, driven by colder weather and successful regulatory rate adjustments. The company's net income increased by 19% over the previous year, reaching $289.8 million, or $2.96 per diluted share. Significant capital investments were made, primarily focused on improving the safety and reliability of its distribution and transportation systems, with a substantial portion of these expenditures being recovered through regulatory mechanisms that reduce lag. The company's strategy emphasizes delivering superior shareholder value and consistent earnings growth. The regulated distribution segment remains the largest contributor to net income, accounting for 89% of consolidated net income from continuing operations. The company also demonstrated a commitment to financial strength by amending its credit facility to increase borrowing capacity and issuing new senior notes to replace maturing debt, while maintaining investment-grade credit ratings. The dividend to shareholders was increased, reflecting confidence in the company's stability and growth prospects.
Nov 6, 2014
2013
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2013
Atmos Energy Corporation's fiscal year 2013 demonstrated solid performance, with net income increasing to $243.2 million, or $2.64 per diluted share, up from $216.7 million, or $2.37 per diluted share in fiscal year 2012. This growth was primarily driven by improvements in rate designs across its natural gas distribution and regulated transmission and storage segments, alongside colder weather that boosted natural gas distribution throughput by 2%. The company also strategically streamlined its operations by divesting its natural gas distribution operations in Georgia in April 2013, following similar sales in Missouri, Illinois, and Iowa in August 2012. Financially, Atmos Energy strengthened its balance sheet by amending its revolving credit agreement to increase borrowing capacity and extending its term, and issued $500 million in long-term senior notes. The company maintained its focus on infrastructure investment, with capital expenditures primarily directed towards safety and reliability improvements in its distribution and transportation systems. These efforts underscore a commitment to sustainable growth and shareholder value, supported by a stable regulatory environment and proactive management of operational and financial risks.
Nov 13, 2013
2012
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2012
Atmos Energy Corporation, a major natural gas distributor, presented its 2012 10-K filing highlighting a strategic focus on shareholder value and earnings consistency. The company has been actively divesting non-core assets, completing the sale of its Missouri, Illinois, and Iowa distribution operations and announcing the sale of its Georgia operations. This strategic shift aims to streamline operations and concentrate on core markets. The company emphasizes its robust regulatory framework, with significant portions of its natural gas distribution margins protected by annual ratemaking mechanisms, accelerated capital recovery, and weather normalization adjustments. These mechanisms are designed to reduce regulatory lag and ensure a reasonable return on invested capital, providing a degree of earnings stability. Financially, Atmos Energy demonstrated resilience, reporting increased net income in fiscal year 2012 driven by regulated segment performance, partially offset by weaker results in its nonregulated segment due to challenging market conditions. The company also highlighted its ongoing capital investment in infrastructure, particularly in Texas, and its commitment to maintaining a healthy balance sheet and returning value to shareholders through dividends.
Nov 13, 2012
2011
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2011
Atmos Energy Corporation (ATO) is a major natural gas distributor, serving over three million customers across 12 states, primarily in the South. The company's strategy focuses on delivering superior shareholder value and consistent earnings growth through operational excellence and a strong culture. In fiscal year 2011, Atmos Energy reported net income of $207.6 million, or $2.27 per diluted share. The company is undergoing a strategic streamlining, including the announced sale of its distribution operations in Missouri, Illinois, and Iowa. Atmos Energy's business is primarily regulated, with a significant portion of its gross margin insulated from weather and commodity price volatility through various rate mechanisms such as purchased gas cost adjustments and weather normalization adjustments. The regulated transmission and storage segment, primarily Atmos Pipeline — Texas, supports the distribution business and serves third parties. The nonregulated segment provides gas management and marketing services, with its financial performance significantly impacted by natural gas price volatility and basis differentials. Looking ahead, Atmos Energy is focused on strengthening its regulatory relationships, optimizing its operations, and managing its capital structure effectively. The company's long-term debt is rated investment grade, and it has access to significant liquidity through its committed credit facilities.
Nov 22, 2011
2010
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2010
Atmos Energy Corporation (ATO) presents its 2010 Form 10-K, highlighting its core business as a natural gas distributor serving over three million customers across 12 states, primarily in the South. The company emphasizes its growth strategy through acquisitions and its consistent track record of increasing dividends and earnings for over 25 consecutive years. Key to its financial stability are regulatory mechanisms like purchased gas cost adjustments and weather normalization adjustments, which help to insulate margins from fluctuations in natural gas costs and weather variability. For investors, Atmos Energy's diversification across four segments—natural gas distribution, regulated transmission and storage, natural gas marketing, and pipeline, storage, and other—provides a stable, regulated base supplemented by nonregulated activities. The company's focus on reducing regulatory lag through rate design improvements and its ability to recover capital investments efficiently are positive indicators for consistent earnings. However, investors should remain aware of risks related to credit market disruptions, economic conditions impacting customer payments, and potential regulatory changes.
Nov 12, 2010
2009
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2009
Atmos Energy Corporation, in its 2009 10-K filing, highlights its established position as a major natural gas distributor, serving over 3 million customers across 12 states, with a strong emphasis on regulated distribution and transmission, complemented by non-regulated marketing and storage services. The company's strategy focuses on delivering shareholder value through consistent earnings growth, operational efficiency, and a culture built on core values. Atmos Energy points to a history of over 25 consecutive years of increasing dividends and earnings, achieved through a combination of strategic acquisitions and operational improvements, including rate design enhancements to reduce regulatory lag and better recovery of costs. The report details the company's four operating segments: Natural Gas Distribution, Regulated Transmission and Storage, Natural Gas Marketing, and Pipeline, Storage and Other, providing a breakdown of their respective operations and regulatory frameworks. Financially, the company navigated the challenging economic climate of 2009, which impacted customer demand and credit markets. Despite these headwinds, Atmos Energy benefited from improved rate designs in its distribution segment and efficiencies in its transmission and storage operations. The company's liquidity was managed through credit facilities and debt offerings, and it received credit rating upgrades from S&P and Moody's, reflecting improved financial performance. The report also addresses the company's approach to risk management, particularly regarding commodity price volatility and interest rate fluctuations, and outlines its commitment to regulatory compliance and environmental stewardship.
Nov 16, 2009
2008
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2008
Atmos Energy Corporation (ATO) reported its 2008 annual results, highlighting stable operations within its primarily regulated natural gas distribution business. The company serves approximately 3.2 million customers across 12 states, with a strategic focus on delivering shareholder value and improving earnings consistency. Growth has historically been driven by acquisitions and efficient operations, with recent efforts concentrating on rate designs that reduce regulatory lag and enhance earnings stability. The report details the company's performance across four segments: Natural Gas Distribution, Regulated Transmission and Storage, Natural Gas Marketing, and Pipeline, Storage, and Other. The dominant Natural Gas Distribution segment saw increased gross profit driven by rate adjustments and higher throughput, partially offset by increased operating expenses. The nonregulated Natural Gas Marketing segment experienced a decline in net income due to less volatile market conditions reducing asset optimization margins, though higher delivered gas margins provided some offset. Financially, the company reported increased operating revenues and net income compared to the previous year, supported by regulated rate increases and improved throughput in its pipeline division. However, operating cash flow decreased, influenced by collateral requirements for risk management activities and the timing of gas cost collections. The company's financial condition remained solid, with a focus on managing its capitalization ratio within its targeted range, despite increased short-term borrowings to fund seasonal natural gas purchases.
Nov 19, 2008
2007
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2007
Atmos Energy Corporation (ATO) reported strong performance in its 2007 fiscal year, driven by growth in both regulated and non-regulated segments. The company's natural gas distribution segment benefited from improved rate designs, including Weather Normalization Adjustments (WNA) in key divisions, which helped mitigate weather-related revenue volatility. The regulated transmission and storage segment saw increased throughput and revenue from new projects. The non-regulated natural gas marketing segment experienced a significant increase in sales volumes, although margins were impacted by a less volatile market, while asset optimization activities provided a boost. Overall, Atmos Energy demonstrated consistent earnings growth and dividend increases over the preceding five years, fueled by strategic acquisitions and efficient operations. The company's robust credit ratings and access to capital markets position it well for continued growth and operational efficiency.
Nov 29, 2007
2006
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2006
Atmos Energy Corporation's (ATO) 2006 10-K filing highlights a company predominantly engaged in the natural gas utility business, operating as one of the nation's largest natural gas distributors. The company serves approximately 3.2 million customers across 12 states, with primary service areas in Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, and Texas. Significant growth has been driven by key acquisitions in recent years, including Mississippi Valley Gas Company and TXU Gas Company's operations, contributing to over two decades of consistent dividend and earnings growth. Key financial highlights include robust operating revenues and a strategic focus on enhancing shareholder value through efficient operations and rate case filings to recover costs. The company is actively managing weather-related risks through weather-normalized rates, which now cover over 90% of its customer base, aiming to stabilize earnings. Nonutility businesses, comprising marketing and pipeline/storage services, also play a significant role in the company's overall performance, capturing margins through optimization strategies and arbitrage opportunities.
Nov 22, 2006
2005
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2005
Atmos Energy Corporation (ATO) operates as a natural gas utility and engaged in nonutility businesses across 12 states, serving approximately 3.2 million customers as of September 30, 2005. The company's strategy centers on delivering superior shareholder value and enhancing earnings growth through operational excellence and a strong corporate culture. A significant event for Atmos Energy in fiscal year 2005 was the acquisition of TXU Gas Company's natural gas distribution and pipeline operations for approximately $1.9 billion. This acquisition substantially doubled the company's size in terms of assets, revenues, and customer base, integrating 1.5 million new customers and expanding its Texas operations. The company highlights its consistent dividend growth over two decades, attributing this to efficient utility operations, technological leverage, strategic regulatory rate adjustments, and effective risk mitigation. The natural gas marketing and pipeline segments also contributed to growth, with a focus on optimizing storage and transportation capacity and expanding commercial opportunities.
Nov 18, 2005
2004
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2004
Atmos Energy Corporation (ATO) is a significant player in the natural gas utility sector, as detailed in its November 19, 2004, 10-K filing. The report highlights the company's substantial growth and strategic advancements, most notably the completion of the acquisition of TXU Gas Company's natural gas distribution and pipeline operations for approximately $1.905 billion. This acquisition positions Atmos Energy as one of the largest publicly-traded natural gas transmission and distribution companies in the U.S., significantly expanding its customer base and operational footprint, particularly in Texas. The company's strategy focuses on integrating these new operations, enhancing earnings consistency, and strengthening its culture. Despite the significant debt incurred to finance this acquisition, Atmos Energy has taken steps to manage its capital structure, including equity and debt offerings, aiming to maintain investment-grade ratings and manage financial flexibility. Investors should note the company's diversified operations across utility, natural gas marketing, and other non-utility segments. While the utility segment is weather-sensitive, Atmos Energy employs strategies like weather normalization adjustments to mitigate impacts. The natural gas marketing segment engages in risk management activities using derivatives to optimize margins. The company has a history of dividend growth and remains focused on operational efficiency and strategic growth through acquisitions.
Nov 19, 2004
2003
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2003
Atmos Energy Corporation's 2003 10-K filing highlights a period of significant growth and strategic acquisition, notably the acquisition of Mississippi Valley Gas Company (MVG) in December 2002. This expansion broadened the company's utility operations into Mississippi, adding approximately 261,500 customers. The company's strategy emphasizes profitable acquisitions and operational efficiency. In fiscal year 2003, Atmos Energy also successfully issued $250 million in senior notes and conducted a public offering of common stock, raising approximately $99.2 million to strengthen its financial position and fund various corporate purposes, including its pension plan. Despite a one-time non-cash charge related to a change in accounting for its natural gas marketing segment, the company demonstrated resilience and a commitment to shareholder value, evidenced by consistent dividend payments. Overall, the report indicates a company actively managing its regulated utility operations, expanding its service territory through strategic acquisitions, and prudently managing its financial resources to support continued growth and operational stability.
Nov 21, 2003
2002
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2002
Atmos Energy Corporation's 2002 10-K filing details its operations as a natural gas utility across multiple states, alongside non-regulated energy businesses. The company reported a decrease in operating revenues for the fiscal year ended September 30, 2002, primarily due to lower natural gas prices and warmer weather conditions impacting sales volumes. However, gross profit saw a modest increase, aided by the acquisition of Louisiana Gas Service operations and full consolidation of Woodward Marketing. A significant development during the year was the pending acquisition of Mississippi Valley Gas Company, which was expected to close in December 2002, significantly expanding the company's customer base. The company also highlighted its strategy of efficient utility operations, profitable growth in non-utility segments, and strategic acquisitions to deliver shareholder value. Management expressed confidence in the company's liquidity and future capital needs being met through internally generated funds and existing credit facilities.
Nov 22, 2002
1997
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 1997
Atmos Energy Corporation's fiscal 1997 10-K (year ended September 30, 1997) shows a year dominated by the July 31, 1997 merger with United Cities Gas Company (UCGC), accounted for as a pooling of interests. Consolidated operating revenues rose about 2% to $906.8 million, but net income fell roughly 42% to $23.8 million, or $.81 per share, from $41.2 million ($1.42) in 1996. Excluding a $2.8 million management reorganization charge and a $12.6 million after-tax reserve for potential unrecovered merger and integration costs, earnings were $39.3 million, or $1.34 per share. Weather was warmer than normal in the winter, which cut gas throughput, and the effect of weather was roughly $.12 per share, so the underlying decline was driven mainly by these one-time charges and merger-related costs. The company now operates five utility divisions across twelve states serving about 1.02 million customers, making it the 12th largest U.S. gas distribution utility by customer count. Roughly 89% of revenues come from rates set or approved by regulators, and purchased gas adjustment clauses pass through commodity cost changes, which helps protect gross profit from gas price swings. Gross profit rose about 2% to $329.7 million, supported by roughly $16.2 million of rate increases. Management projects about $375 million of cumulative cost savings over ten years from the merger, though it also expects to remove about 635 positions by September 1998. The balance sheet became more leveraged. The debt-to-capitalization ratio rose to 57.2% from 53.4%, against a stated long-term target of 50% over three years. Short-term notes payable increased, and the company planned capital expenditures of about $109.1 million for fiscal 1998. Investors should weigh the strategic logic of the merger and the regulatory cost-recovery support against the near-term earnings dilution, the elevated leverage, and the pending litigation, including a $15 million punitive damages verdict in Louisiana that management is appealing.
Dec 22, 1997
1994
ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 1994
Atmos Energy Corporation's fiscal 1994 10-K (year ended September 30, 1994) shows a company that grew its top line but saw earnings decline. Operating revenues rose about 9% to $499.8 million, driven by rate increases in Kansas, Colorado and Louisiana, customer growth, and higher gas costs passed through to customers. Net income fell roughly 16% to $14.7 million, or $0.97 per share, from $17.5 million ($1.22) in fiscal 1993. Management attributed the drop to one-time costs tied to the December 1993 Greeley Gas Company (GGC) merger, an early retirement program, and the adoption of SFAS No. 106 (postretirement benefits), which together reduced EPS by about $0.22. Gross profit rose about 3% to $168.2 million, but operating expenses grew faster, pushing operating income down about 13% to $26.5 million. The balance sheet expanded, with total assets up to $416.7 million and long-term debt rising to $138.3 million, including $40 million of notes payable reclassified as long-term. Management pointed to a planned $40 million private placement of senior notes and $20 million of additional notes at 8.07% and 8.26% as the funding plan for 2995-era capital needs. Capital expenditures were $50.4 million in fiscal 1994 and $56.1 million budgeted for 1995. Operating cash flow was $41.2 million, which covered capital spending alongside dividend payments of $12.7 million. The company has raised its dividend in each of the last six years, paying $0.88 per share in 1994. For investors, the key themes are a diversified six-state footprint that reduces weather concentration, a regulatory environment in which most gas costs pass through via purchased gas adjustment clauses, and an earnings trend that the company describes as recovering from one-time merger and accounting charges. Risks flagged in the filing include the pending Louisiana proceeding on the Trans La Division's gas costs (management views the claims as without merit), the Kentucky appeal over the effective date of a rate increase (about $1 million at stake), and ongoing competition from alternative fuels and electricity in residential and commercial markets.
Dec 15, 1994
1993-A
ATMOS ENERGY CORP Annual Report (Amendment), Year Ended Sep 30, 1993
This filing is Atmos Energy Corporation's Form 10-K/A No. 1, filed June 30, 1994 under a Rule 201 temporary hardship exemption. The cover page references the fiscal year ended September 30, 1993. The content provided, however, is the Form 11-K annual report for the company's Employee Stock Ownership Plan and Trust (the ESOP) for the year ended December 31, 1993. It contains no consolidated income statement, balance sheet, or segment or operating data for Atmos itself, so it offers limited insight into the company's core utility business. Investors should look to the company's primary 10-K for those figures. Within the ESOP, plan equity rose 28.8% to $30.0 million at December 31, 1993, from $23.3 million a year earlier. The increase of $6.7 million came mainly from $3.25 million of unrealized appreciation on Atmos common stock, a $1.0 million one-time discretionary company contribution, and $1.36 million of participant and matching contributions. The plan held 1,529,117 Atmos shares with a fair value of $28.2 million, about 94% of plan assets. Withdrawals fell to $1.34 million in 1993 from $2.53 million in 1992. The plan's independent auditor, Ernst & Young, issued an unqualified opinion. For shareholders, the main takeaway is that employee ownership remains concentrated in Atmos stock, so the ESOP's value tracks the share price closely. The 1993 gains reflect share price appreciation rather than operating performance, and the disclosed concentration is a risk factor for plan participants.
Jun 30, 1994