0000731802false00007318022023-11-082023-11-08

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

Current Report Pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934

November 8, 2023
Date of Report (Date of earliest event reported)

ATMOS ENERGY CORPORATION
(Exact Name of Registrant as Specified in its Charter)

TexasandVirginia1-1004275-1743247
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(State or Other Jurisdiction(Commission File(I.R.S. Employer
of Incorporation)Number)Identification No.)

1800 Three Lincoln Centre
5430 LBJ Freeway
DallasTexas75240
---------------------------------------------------------------------
(Address of Principal Executive Offices)(Zip Code)

(972) 934-9227
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(Registrant's Telephone Number, Including Area Code)

Not Applicable
---------------------------
(Former Name or Former Address, if Changed Since Last Report)

Title of each classTrading SymbolName of each exchange on which registered
Common stockNo Par ValueATONew York Stock Exchange


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.     Results of Operations and Financial Condition.

On Wednesday, November 8, 2023, Atmos Energy Corporation (the “Company”) issued a news release in which it reported the Company’s financial results for the fourth quarter and full 2023 fiscal year, which ended September 30, 2023, and that certain of its officers would discuss such financial results in a conference call on Thursday, November 9, 2023 at 10 a.m. Eastern Time. In the release, the Company also announced that the call would be webcast live and that slides for the webcast would be available on its website for all interested parties.

A copy of the news release is furnished as Exhibit 99.1. The information furnished in this Item 2.02 and in Exhibit 99.1 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall such information be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act of 1933 or the Securities Exchange Act of 1934.

Item 9.01.     Financial Statements and Exhibits.

    (d)    Exhibits
Exhibit NumberDescription
99.1
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101.CALInline XBRL Taxonomy Extension Calculation Linkbase
101.DEFInline XBRL Taxonomy Extension Definition Linkbase
101.LABInline XBRL Taxonomy Extension Labels Linkbase
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SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ATMOS ENERGY CORPORATION
             (Registrant)
DATE:November 8, 2023
By: /s/ CHRISTOPHER T. FORSYTHE
       Christopher T. Forsythe
       Senior Vice President and
       Chief Financial Officer







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Exhibit 99.1
g528915g02g72a28a.jpg
 
 
News Release
Analysts and Media Contact:
Dan Meziere (972) 855-3729

Atmos Energy Corporation Reports Earnings for Fiscal 2023;
Initiates Fiscal 2024 Guidance; Raises Dividend
DALLAS (November 8, 2023) - Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its fourth fiscal quarter and year ended September 30, 2023.

Highlights
•Earnings per diluted share was $6.10 for the year ended September 30, 2023; $0.80 per diluted share for the fourth fiscal quarter.
•Consolidated net income was $885.9 million for the year ended September 30, 2023; $118.5 million for the fourth fiscal quarter.
•Capital expenditures totaled $2.8 billion for the year ended September 30, 2023, with approximately 85 percent of capital spending related to system safety and reliability investments.
    
Outlook
•Earnings per diluted share for fiscal 2024 is expected to be in the range of $6.45 to $6.65 per diluted share.
•Capital expenditures are expected to approximate $2.9 billion in fiscal 2024.
•The company's Board of Directors has declared a quarterly dividend of $0.805 per common share. The indicated annual dividend for fiscal 2024 is $3.22, which represents an 8.8% increase over fiscal 2023.

"Fiscal 2023 marks the 40th anniversary of Atmos Energy as well as the 12th year of executing our proven strategy of operating safely and reliably while we modernize our natural gas distribution, transmission, and storage systems," said Kevin Akers, president and chief executive officer of Atmos Energy Corporation. "This strategy, along with our employees' continued focus on our vision to be the safest provider of natural gas service continues to benefit our customers, our communities, and position us to continue delivering annual earnings per share growth in the six to eight percent range,” Akers concluded.




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Results for the Fiscal Year Ended September 30, 2023
Consolidated operating income increased $146.1 million to $1.1 billion for the year ended September 30, 2023, compared to $921.0 million in the prior year, primarily due to rate outcomes in both segments, increased weather and consumption and customer growth in our distribution segment and increased through system revenues in our pipeline and storage segment that were partially offset by increased operation and maintenance expense and higher depreciation and property tax expenses due to increased capital investments.
Distribution operating income increased $88.1 million to $692.6 million for the year ended September 30, 2023, compared with $604.5 million in the prior year, primarily due to a net $166.4 million increase in rates, an $18.4 million increase in customer growth, including industrial load, and an $11.7 million increase in consumption, partially offset by a $65.4 million increase in depreciation and property tax expenses and a $46.7 million increase in operation and maintenance expense driven primarily by line locates and other pipeline system maintenance activities and increased administrative costs.
Pipeline and storage operating income increased $58.1 million to $374.5 million for the year ended September 30, 2023, compared with $316.4 million in the prior year. Key operating drivers for this segment include an $87.3 million increase from our GRIP filings approved in fiscal 2022 and 2023 and a $5.2 million increase in through system revenues, partially offset by a $24.5 million increase in depreciation and property tax expenses and a $7.9 million increase in operation and maintenance expense driven primarily by pipeline inspection activities and employee-related costs.
Capital expenditures increased $361.6 million to $2.8 billion for the year ended September 30, 2023, compared with $2.4 billion in the prior year, due to increased system modernization and expansion spending.
For the year ended September 30, 2023, the company generated operating cash flow of $3.5 billion, compared to $977.6 million in the prior year. The year-over-year increase primarily reflects the receipt of $2.02 billion from the Texas Natural Gas Securitization Finance Corporation in March 2023 related to gas costs incurred during Winter Storm Uri.
Our equity capitalization ratio at September 30, 2023 increased to 61.5%, from 53.6% at September 30, 2022, due to the repayment at maturity of $2.2 billion of Winter Storm Uri financing and $806.9 million in equity issuances under our forward equity agreements, partially offset by the issuance of $500 million of 5.75% senior notes and $300 million of 5.45% senior notes in October 2022. Excluding the $2.2 billion of incremental financing issued to pay for the purchased gas costs incurred during Winter Storm Uri, our equity capitalization ratio was 61.3% at September 30, 2022.

Results for the Three Months Ended September 30, 2023
Consolidated operating income increased $48.7 million to $154.1 million for the three months ended September 30, 2023, from $105.4 million in the prior-year quarter. Rate case outcomes in both segments and customer growth in our distribution segment and timing of pipeline maintenance activities were partially offset by higher depreciation and property tax expenses due to increased capital investments.
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Distribution operating income increased $17.2 million to $53.9 million for the three months ended September 30, 2023, compared with $36.7 million in the prior-year quarter. The main drivers for the current quarter include a net $27.6 million increase in rates and a $3.8 million increase due to net customer growth, partially offset by a $14.8 million increase in depreciation and property tax expenses.
Pipeline and storage operating income increased $31.5 million to $100.2 million for the three months ended September 30, 2023, compared with $68.7 million in the prior-year quarter. The current quarter activity is primarily attributable to a $22.7 million increase in rates, due to the GRIP filings approved in May 2022 and May 2023 and a $14.3 million decrease in operations and maintenance expense due to timing of pipeline maintenance activities, which were partially offset by a $7.5 million increase in depreciation and property tax expenses.
Conference Call to be Webcast November 9, 2023
Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2023 fourth quarter financial results on Thursday, November 9, 2023, at 10:00 a.m. Eastern Time. The domestic telephone number is 888-350-3846 and the international telephone number is 646-960-0251. The conference ID is 9958104. 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.
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, 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; increased dependence on technology that may hinder the Company's business if such technologies fail; the threat of cyber-attacks or acts of cyber-
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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 greenhouse gas emissions or other legislation or regulations intended to address climate change; 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, an S&P 500 company headquartered in Dallas, is the country’s largest natural gas-only distributor. 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 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 IncomeYear Ended September 30
(000s except per share)20232022
Operating revenues
Distribution segment
$4,099,690 $4,035,194 
Pipeline and storage segment
785,174 693,660 
Intersegment eliminations
(609,507)(527,192)
4,275,357 4,201,662 
Purchased gas cost
Distribution segment
2,061,920 2,210,302 
Pipeline and storage segment
(1,220)(1,583)
Intersegment eliminations
(608,527)(526,063)
1,452,173 1,682,656 
Operation and maintenance expense764,906 710,161 
Depreciation and amortization604,327 535,655 
Taxes, other than income386,804 352,208 
Operating income1,067,147 920,982 
Other non-operating income69,775 33,737 
Interest charges137,281 102,811 
Income before income taxes999,641 851,908 
Income tax expense113,779 77,510 
Net income$885,862 $774,398 
Basic net income per share$6.10 $5.61 
Diluted net income per share$6.10 $5.60 
Cash dividends per share$2.96 $2.72 
Basic weighted average shares outstanding145,121 137,830 
Diluted weighted average shares outstanding145,166 138,096 

 Year Ended September 30
Summary Net Income by Segment (000s)20232022
Distribution$580,397 $521,977 
Pipeline and storage305,465 252,421 
Net income$885,862 $774,398 
5

Atmos Energy Corporation
Financial Highlights, continued (Unaudited)

Statements of IncomeThree Months Ended September 30
(000s except per share)20232022
Operating revenues
Distribution segment
$542,987 $678,915 
Pipeline and storage segment
205,896 183,583 
Intersegment eliminations
(161,241)(139,870)
587,642 722,628 
Purchased gas cost
Distribution segment
164,934 329,090 
Pipeline and storage segment
(789)1,492 
Intersegment eliminations
(160,982)(139,626)
3,163 190,956 
Operation and maintenance expense190,125 205,374 
Depreciation and amortization159,264 140,194 
Taxes, other than income81,020 80,702 
Operating income154,070 105,402 
Other non-operating income15,008 6,559 
Interest charges31,817 27,842 
Income before income taxes137,261 84,119 
Income tax expense18,737 12,476 
Net income$118,524 $71,643 
Basic net income per share$0.80 $0.51 
Diluted net income per share$0.80 $0.51 
Cash dividends per share$0.74 $0.68 
Basic weighted average shares outstanding148,671 140,924 
Diluted weighted average shares outstanding148,672 141,220 

 Three Months Ended September 30
Summary Net Income by Segment (000s)20232022
Distribution$37,816 $16,154 
Pipeline and storage80,708 55,489 
Net income$118,524 $71,643 
6

Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
 
Condensed Balance SheetsSeptember 30,September 30,
(000s)20232022
Net property, plant and equipment$19,606,583 $17,240,239 
Cash and cash equivalents15,404 51,554 
Restricted cash and cash equivalents3,844 — 
Cash and cash equivalents and restricted cash and cash equivalents19,248 51,554 
Accounts receivable, net328,654 363,708 
Gas stored underground245,830 357,941 
Other current assets292,036 2,274,490 
Total current assets885,768 3,047,693 
Securitized intangible asset, net92,202 — 
Goodwill731,257 731,257 
Deferred charges and other assets1,201,158 1,173,800 
$22,516,968 $22,192,989 
Shareholders' equity$10,870,064 $9,419,091 
Long-term debt, net6,554,133 5,760,647 
Securitized long-term debt85,078 — 
Total capitalization17,509,275 15,179,738 
Accounts payable and accrued liabilities336,083 496,019 
Other current liabilities763,086 720,157 
Short-term debt241,933 184,967 
Current maturities of long-term debt1,568 2,201,457 
Current maturities of securitized long-term debt9,922 — 
Total current liabilities1,352,592 3,602,600 
Deferred income taxes2,304,974 1,999,505 
Regulatory excess deferred taxes253,212 385,213 
Deferred credits and other liabilities1,096,915 1,025,933 
$22,516,968 $22,192,989 
7

Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
 
Condensed Statements of Cash FlowsYear Ended September 30
(000s)20232022
Cash flows from operating activities
Net income$885,862 $774,398 
Depreciation and amortization604,327 535,655 
Deferred income taxes108,215 53,651 
Other(50,793)(22,356)
Change in Winter Storm Uri current regulatory asset2,021,889 — 
Changes in other assets and liabilities(109,757)(363,764)
Net cash provided by operating activities3,459,743 977,584 
Cash flows from investing activities
Capital expenditures(2,805,973)(2,444,420)
Debt and equity securities activities, net(8,315)4,173 
Other, net19,008 10,289 
Net cash used in investing activities(2,795,280)(2,429,958)
Cash flows from financing activities
Net increase in short-term debt56,966 184,967 
Proceeds from issuance of long-term debt, net of premium/discount797,258 798,802 
Proceeds from issuance of securitized debt by AEK95,000 — 
Net proceeds from equity issuances806,949 776,805 
Issuance of common stock through stock purchase and employee retirement plans15,395 15,403 
Settlement of interest rate swaps171,145 197,073 
Proceeds from term loan2,020,000 — 
Repayment of term loan(2,020,000)— 
Repayment of long-term debt(2,200,000)(200,000)
Cash dividends paid(430,345)(375,914)
Debt issuance costs(7,864)(8,196)
Securitized debt issuance costs(1,273)— 
Other— (1,735)
Net cash provided by (used in) financing activities(696,769)1,387,205 
Net decrease in cash and cash equivalents and restricted cash and cash equivalents(32,306)(65,169)
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period51,554 116,723 
Cash and cash equivalents and restricted cash and cash equivalents at end of period$19,248 $51,554 
 
 Three Months Ended September 30Year Ended September 30
Statistics2023202220232022
Consolidated distribution throughput (MMcf as metered)
65,853 68,221 442,911 444,975 
Consolidated pipeline and storage transportation volumes (MMcf)
195,493 168,604 635,508 580,488 
Distribution meters in service3,486,384 3,442,224 3,486,384 3,442,224 
Distribution average cost of gas$5.39 $9.26 $7.11 $7.56 
###
8
v3.23.3
Document and Entity Information
Nov. 08, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 08, 2023
Entity Registrant Name ATMOS ENERGY CORP
Entity Incorporation, State or Country Code TX
Entity File Number 1-10042
Entity Tax Identification Number 75-1743247
Entity Address, Address Line Two 5430 LBJ Freeway
Entity Address, City or Town Dallas
Entity Address, State or Province TX
Entity Address, Postal Zip Code 75240
City Area Code 972
Local Phone Number 934-9227
Title of 12(b) Security Common stock
Trading Symbol ATO
Security Exchange Name NYSE
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000731802
Amendment Flag false
Entity Address, Address Line One 1800 Three Lincoln Centre
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