Another revenue driver was House Bill 4384, adopted by the Texas Legislature in 2025. City groups opposed HB 4384 because of its potential to increase bills.
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Altmos Energy expects its average customer bills to increase by more than 50 percent over five years — from $80 in 2025 to $121 in 2030.
Atmos also reports spending and revenue increases continue. Its shareholders, meanwhile, have enjoyed 42 consecutive years of rising dividends.
These were some of the key take-away revelations from a call with investment analysts conducted by the Dallas-based company on Feb. 4. Atmos executives summarized both quarterly and annual financial results during the call.
Annual Results
Atmos reported net income across its multi-state system of nearly $1.2 billion in 2025. Atmos expects that net income to increase as much as another $200 million next year. The reported net income for 2025 is nearly $200 million more than the approximately $1 billion Atmos collected in 2024.
On the spending side, Atmos reported nearly $3.6 billion of capital expenses during the 2025 calendar year. That’s 24 percent more than the $2.9 billion in capital expenditures during 2024. In 2026, Atmos plans to increase its capital spending to approximately $4.4 billion.
Quarterly Results
For the financial quarter ending Dec. 31, Atmos reported operating income of $514.7 million, as opposed to $459.4 million it reported during the quarter ending Dec. 31, 2024. That’s a 12-percent increase.
It’s distribution operating income for the quarter totaled $349.2 million. Its pipeline and storage income totaled $165.5 million
Rate increases, primarily from the Mid-Tex Division around the Dallas-Fort Worth area, contributed $47.7 million to the distribution revenues for the quarter.
Another $14.4 million in distribution income came from increased energy consumption during the quarter. This figure is net of the utility’s Weather Normalization Adjustment, which you can read about here.
Another revenue driver was House Bill 4384, adopted by the Texas Legislature in 2025. Under HB 4384, gas utilities can classify certain capital and tax expenditures as “regulatory assets” for ratemaking purposes and charge their customers for those assets relatively quickly. City groups opposed HB 4384 because of its potential to increase bills. You can read more about the law here.
Atmos said it collected $20 million in distribution revenues during the quarter thanks to HB 4384. It collected $15.2 million in pipeline income also as a result of HB 4384.
Meanwhile, the company’s capital spending remains on the rise, going from $891.2 million during the quarter ending in December 2024 to $1 billion during the corresponding quarter in 2025.
Of its spending during the most recent quarter, $489 million went to repair and replace pipelines; $128 million went to replace service lines; $77 million was for installing and replacing measurement and regulating equipment; and $25 million went to pipeline integrity projects.
Texas Details
In Texas, Atmos reported $20 million in pipeline revenue from a GRIP case and a separate revenue adjustment rider.
Other key rate activities in Texas during the quarter include a $138.5 million Rate Revenue Mechanism case in the utility’s Mid-Tex region (around Dallas and Fort Worth) and a $35.8 million Dallas Area Rate Review mechanism case. That DARR case remains pending.
About Atmos Energy
Atmos Energy Corporation, based in Dallas, is the country’s largest natural gas-only distributor. Atmos serves more than 3.3 million distribution customers in over 1,400 communities across eight states located primarily in the South. Atmos Energy also manages proprietary pipeline and storage assets.