In a Nov. 10 call with financial analysts, the company also said its capital expenditures totaled $2.4 billion for the year ending September 30, with capital expenditures expected to approximate $2.7 billion in fiscal 2023.
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Altmos Energy has announced consolidated net income of $774.4 million for the year ending September 30, 2022, including $71.6 million for the fourth fiscal quarter.
In a Nov. 10 call with financial analysts, the company also said its capital expenditures totaled $2.4 billion for the year ending September 30, with capital expenditures expected to approximate $2.7 billion in fiscal 2023.
Due to the availability of interim rate mechanisms (such as the Gas Reliability Infrastructure Program in Texas that allows the utility to promptly implement rate increases), Atmos said that 90 percent of its annual capital expenditures begin to earn financial returns within six months.
Atmos noted that average residential monthly customer bills were $68 in the 2022 fiscal year, will rise to an estimated $79 in fiscal 2023, and rise to an estimated $91 in 2027. Meanwhile, the portion of customer bills associated with pass-through gas costs will decline — from about 50 percent in 2023, to 35 percent in 2027.
In addition to the effect of rate increases, some of the company’s revenue growth has been driven by a growth in the number of its customers. Atmos noted that it added 62,000 customers in Texas during the 2022 fiscal year, including 50 new industrial customers. It estimated that it will add 120 industrial customers over the next three years.
The company said that 2022 marked the 20th consecutive year for earnings per share growth, and 39th consecutive year of dividend increases.
During the earnings call, Atmos also revealed other details regarding its financial performance:
Results for the Fiscal Year Ending September 30, 2022
- Consolidated operating income increased $16 million to $921 million for the year ending September 30, compared to $905 million during the previous year. Refunds of excess deferred income taxes reduced operating income by $111.8 million, although that was substantially offset by a corresponding decrease in income tax expenses. Excluding the impact of these refunds, operating income increased $127.8 million because of rate increases, customer growth in distribution operations and other factors.
- Distribution operating income decreased $14 million to $604.5 million for the year ending September 30, as compared with $618.5 million during the corresponding prior-year period. Refunds of excess deferred taxes reduced operating income by $98.5 million year over year, while a $149.9 million increase in rates, customer growth of $15.2 million and other factors drove up revenues.
- Pipeline and storage operating income increased $29.9 million to $316.4 million for the year ending September 30, as compared with $286.5 million during the prior year. Key operating drivers for this segment include a $70.4 million increase from GRIP filings approved in fiscal 2021 and 2022.
- Capital expenditures increased $474.9 million to $2.4 billion for the year ending September 30, compared with $2 billion during the prior year.
Results for the Three Months Ending September 30, 2022
- Consolidated operating income increased $14.4 million to $105.4 million for the three months ending September 30, from $91 million in the prior-year quarter.
- Distribution operating income decreased $900,000 to $36.7 million for the three months ending September 30, compared with $37.6 million during the prior-year quarter. Refunds of excess deferred taxes reduced operating income by $9.1 million quarter over quarter, while key operating drivers including a net $27.3 million increase in rates, a $1.9 million increase due to net customer growth and other factors.
- Pipeline and storage operating income increased $15.3 million to $68.7 million for the three months ending September 30, compared with $53.4 million during the prior-year quarter. Key operating drivers include a $21.1 million increase in rates due to the GRIP filing approved in fiscal 2022.
- Pipeline and storage operating income increased $15.3 million to $68.7 million for the three months ending September 30, compared with $53.4 million during the prior-year quarter. Key operating drivers include a $21.1 million increase in rates due to the GRIP filing approved in fiscal 2022.
Key Activities in Texas
- Atmos reported the completion of an $81.4 million Mid-Tex Cities Rate Revenue Mechanism proceeding on Oct. 1, 2022.
Atmos anticipates making a GRIP filing for its Texas Pipeline division in February 2023, with new rates anticipated for the third quarter of 2023. - Atmos anticipates making a Dallas Annual Rate Review (“DARR”) filing in January 2023, with new rates anticipated for the fourth fiscal quarter of 2023.
- Atmos anticipates making Rate Review Mechanism (“RRM”) filings for Mid-Tex and West Texas Cities in April 2023, with new rates anticipated for the first fiscal quarter of 2024.
About Atmos Energy
Headquartered in Dallas, Atmos Energy is the country’s largest natural gas-only distributor with more than 3 million distribution customers in over 1,400 communities across eight states, primarily in the South. For more information about the utility’s quarterly report, follow this link.