Atmos Energy Reports 13% Increase in Net Income to $351.9 Million for Q4 2024

Atmos Energy Corporation reported a net income of $351.9 million for the three months ended December 31, 2024, translating to $2.23 per diluted share, compared to $311.3 million, or $2.08 per diluted share, for the same period in 2023. This represents a 13% increase in net income year-over-year, primarily driven by favorable rate adjustments related to safety and reliability investments. Total operating revenues for the quarter reached $1.176 billion, up from $1.158 billion in the prior year, with significant contributions from both the distribution and pipeline segments.

The distribution segment generated $1.109 billion in operating revenues, slightly up from $1.105 billion in the previous year. The pipeline and storage segment saw a more substantial increase, with revenues rising to $255.4 million from $211.2 million. The overall increase in revenues was partially offset by a decrease in purchased gas costs, which fell to $234 million from $339 million, reflecting lower gas prices. Operating income for the distribution segment increased to $316 million, while the pipeline and storage segment's operating income rose to $143.4 million, marking increases of 12.7% and 20.9%, respectively.

Atmos Energy's capital expenditures for the quarter totaled $891.2 million, with approximately 86% allocated to enhancing the safety and reliability of its distribution and transportation systems. The company reported a customer base of over 3.3 million across eight states, with a slight increase in residential and commercial customer counts. The total number of meters in service rose to 3.4 million, up from 3.36 million a year earlier. However, total gas sales volumes decreased to 71.9 million cubic feet from 82.7 million cubic feet, attributed to seasonal weather patterns and conservation efforts.

Looking ahead, Atmos Energy is pursuing additional ratemaking efforts that could yield an increase in annual operating income of approximately $95.4 million. The company has also filed a shelf registration statement allowing for the issuance of up to $8 billion in common stock and/or debt securities, with $6.3 billion available for issuance as of December 31, 2024. The company maintains a strong liquidity position, with $5.2 billion in total liquidity, including $584.5 million in cash and cash equivalents, and undrawn capacity under credit facilities. The outlook remains positive as Atmos Energy continues to focus on capital investments and regulatory strategies to enhance its operational performance.