Atmos reports quarter-over-quarter revenue increase; Mid-Tex and West Texas rate cases in September.
During a February 7 call with investment analysts, the Dallas-based company also said that interim rate processes — such as the Gas Reliability Infrastructure Program (GRIP) in Texas — allow for the recovery of 90 percent of its expenditures within six months of making them. However, the company nonetheless anticipates filing general rate cases in September for its Mid-Tex and West Texas Divisions.
The company also released other information relating to its capital expenditures, its revenues and upcoming rate cases. Highlights from the call include:
Atmos expects to collect $985 million to $1.015 billion in net revenue for the 2024 fiscal year. That FY 2024 revenue will include at least $645 million from its distribution system, and at least $340 million from its pipeline and storage system, according to Atmos.
The company likewise reported net income of $311 million for the three months ending December 31. That represents a 14.3 percent increase from the prior-year quarter of $272 million.
Some of the factors contributing to the quarterly income increase include $64.6 million in added revenues from distribution system rate adjustments and $19.6 million in added revenues from pipeline and storage rate adjustments.
Atmos also reported the addition of 44,000 new Texas residential customers during the last calendar year, as well as 11 new industrial customers that use the gas equivalent of 45,000 residential customers. The company credits customer growth — mostly in the Dallas/Fort Worth region — for an additional $5.3 million in revenue during the recent fiscal quarter.
Atmos noted that its balance sheet benefited from a 2023 change in Texas tax law that will reduce its property tax expenses by at least $20 million during the entirety of the 2024 fiscal year, and already has led to a $6 million reduction during the most recent quarter. However, a company official characterized the tax savings as a “timing issue” that eventually will be reflected in rates.
Atmos reported that capital spending will approximate $2.9 billion during the entirety of the 2024 fiscal year, and already reached nearly $770 million during the most recent quarter. It noted that it spent $253 million during the recent quarter repairing and replacing transmission and distribution pipelines, $192 million fortifying its existing systems, and $79 million on installing and replacing measurement and regulating equipment.
Rate Case Activity
Key rate activity in Texas, through Feb. 6, 2024, include:
- $98.6 million —Mid-Tex Cities Rate Review Mechanism
- $27 million — Atmos Pipeline Texas rate case
- $8.6 million—West Texas Cities Rate Review Mechanism
- $40.4 million (in progress)—Mid-Tex Dallas Area Rate Review
As noted above, the company also anticipates filing general rate cases for its Mid-Tex and West Texas regions in September. It likewise anticipates making an Atmos Pipeline Gas Reliability Infrastructure Program filing this month; Mid-Tex and West Texas GRIP filings in March; and Rate Review Mechanism filings for its Mid-Tex and West Texas regions in April.
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.