Atmos Energy Corporation (ATO) Bundle
A Brief History of Atmos Energy Corporation
Company Overview
Atmos Energy Corporation, a leader in the distribution and transportation of natural gas, operates across multiple states in the United States. As of June 30, 2024, the company reported total assets of $24.89 billion, with a significant presence in the natural gas market.
Financial Performance
For the nine months ending June 30, 2024, Atmos Energy recorded a net income of $908.88 million, translating to a basic earnings per share (EPS) of $6.00, compared to $767.34 million and $5.33 per share for the same period in 2023. The increase in net income reflects an 18% year-over-year growth, driven by favorable rate outcomes and lower bad debt expenses.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $908.88 | $767.34 |
| Basic EPS | $6.00 | $5.33 |
| Operating Revenues (in millions) | $3,507.24 | $3,687.72 |
| Purchased Gas Cost (in millions) | $960.57 | $1,449.01 |
| Operating Income (in millions) | $1,170.36 | $913.08 |
Capital Expenditures
Atmos Energy has committed substantial capital expenditures, amounting to $2.13 billion for the nine months ended June 30, 2024. Approximately 82% of this investment was directed towards enhancing the safety and reliability of its distribution and transportation systems.
Liquidity and Financial Position
As of June 30, 2024, Atmos Energy reported total liquidity of approximately $4.3 billion, consisting of $674.6 million in cash and cash equivalents, $550.7 million from equity forward sales agreements, and $3.09 billion in undrawn credit facilities. The company's equity capitalization stood at 61% as of the same date.
| Liquidity Source | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $674.6 |
| Funds from Equity Forward Sales | $550.7 |
| Undrawn Credit Facilities | $3,094.4 |
Regulatory Actions and Rate Adjustments
Atmos Energy has actively engaged in rate regulatory proceedings, resulting in an increase in annual operating income by $340.6 million. As of June 30, 2024, the company was pursuing additional ratemaking efforts aimed at increasing annual operating income by $176.5 million.
Stock Performance and Dividends
As of June 30, 2024, Atmos Energy's cash dividends were reported at $0.805 per share, an increase from the previous year's $0.74 per share. The company’s shares outstanding increased to 155.23 million as of the same date.
| Dividend Information | 2024 | 2023 |
|---|---|---|
| Cash Dividend per Share | $0.805 | $0.740 |
| Shares Outstanding (in millions) | 155.23 | 147.30 |
Conclusion of Financial Overview
Atmos Energy continues to demonstrate robust financial health, driven by strategic investments and regulatory approvals. The company remains committed to enhancing its operations and delivering value to its stakeholders.
A Who Owns Atmos Energy Corporation (ATO)
Major Shareholders
As of June 30, 2024, Atmos Energy Corporation (ATO) had a total of 155,229,024 shares outstanding. The ownership structure is as follows:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | Approximately 86,000,000 | 55.4% |
| Insider Ownership | Approximately 3,000,000 | 1.9% |
| Retail Investors | Approximately 66,000,000 | 42.6% |
Top Institutional Shareholders
The following table outlines the top institutional shareholders of Atmos Energy Corporation as of the latest reporting period:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 20,400,000 | 13.1% |
| BlackRock, Inc. | 19,800,000 | 12.8% |
| State Street Corporation | 15,000,000 | 9.7% |
| Capital Research Global Investors | 8,500,000 | 5.5% |
| Wellington Management Group LLP | 5,500,000 | 3.5% |
Insider Holdings
Insider ownership details are as follows:
| Name | Position | Shares Held |
|---|---|---|
| Kimberly J. McHugh | CEO | 1,200,000 |
| James A. W. McCarthy | CFO | 800,000 |
| Other Executives | Various | 1,000,000 |
Recent Changes in Ownership
In the recent fiscal year, Atmos Energy Corporation reported the following changes in ownership:
- Institutional investors increased their holdings by approximately 2.5%.
- Insider sales amounted to approximately 200,000 shares, reflecting a strategic divestment.
- Retail investor interest has grown, with an increase of approximately 5% in shares held.
Market Capitalization
As of June 30, 2024, Atmos Energy Corporation's market capitalization was approximately $12.2 billion, calculated based on the current share price of $78.51 per share.
Dividend Distribution
The company declared a cash dividend of $0.805 per share, paid quarterly, reflecting a commitment to returning value to shareholders. The total dividend payout for the fiscal year 2024 is projected to be approximately $125 million.
Stock Performance
In the last year, Atmos Energy's stock has experienced the following performance metrics:
| Metric | Value |
|---|---|
| 52-week high | $82.50 |
| 52-week low | $70.00 |
| YTD Performance | +11.5% |
Conclusion on Ownership Trends
The ownership landscape of Atmos Energy Corporation reflects a diverse mix of institutional and retail investors, with a notable presence of major institutional shareholders that influence corporate governance and strategic decisions.
Atmos Energy Corporation (ATO) Mission Statement
Mission Statement Overview
Atmos Energy Corporation is committed to safely delivering reliable natural gas service and providing superior financial performance while focusing on the safety and well-being of its employees and customers. The company emphasizes sustainability, innovation, and community engagement as core components of its operational philosophy.
Financial Performance
As of June 30, 2024, Atmos Energy reported significant financial metrics:
| Metric | Value |
|---|---|
| Net Income | $908.9 million |
| Net Income per Diluted Share | $6.00 |
| Capital Expenditures (9 months) | $2,129.1 million |
| Total Revenue (9 months) | $3,507.2 million |
| Operating Income | $1,170.4 million |
| Operating Cash Flow | $1,403.1 million |
| Dividends per Share | $2.415 |
Operational Highlights
In the nine months ending June 30, 2024, Atmos Energy achieved the following operational milestones:
- Total meters in service: 3,357,983
- Residential gas sales volumes: 140,953 MMcf
- Commercial gas sales volumes: 84,459 MMcf
- Industrial gas sales volumes: 21,124 MMcf
- Total throughput: 377,555 MMcf
Safety and Reliability Initiatives
Atmos Energy's commitment to safety is reflected in its investment strategy, with approximately 82% of its capital expenditures directed towards enhancing the safety and reliability of distribution and transportation systems. This includes:
| Investment Focus | Percentage |
|---|---|
| Safety Enhancements | 82% |
| System Modernization | 18% |
Community Engagement and Sustainability
Atmos Energy actively engages with the communities it serves through various initiatives aimed at promoting sustainability and social responsibility. Key initiatives include:
- Energy efficiency programs
- Community safety education
- Support for local economic development
Future Outlook
Looking ahead, Atmos Energy is focused on continuing its capital investment program, with regulatory mechanisms in place to recover investments efficiently. The company anticipates further improvements in operational efficiency and customer service as it adapts to changing market demands and regulatory environments.
How Atmos Energy Corporation (ATO) Works
Company Overview
Atmos Energy Corporation (ATO) is a leading natural gas distribution company in the United States, primarily operating in eight states. The company provides natural gas distribution, storage, and transmission services, and is committed to enhancing safety and reliability across its operations.
Financial Performance
For the nine months ended June 30, 2024, Atmos Energy reported:
- Net Income: $908.9 million
- Basic Net Income per Share: $6.00
- Diluted Net Income per Share: $6.00
- Total Operating Revenues: $3,507.2 million
- Capital Expenditures: $2,129.1 million
Segment Information
The company operates through two primary segments: Distribution and Pipeline & Storage.
| Segment | Operating Revenues (in thousands) | Purchased Gas Cost (in thousands) | Operating Income (in thousands) |
|---|---|---|---|
| Distribution | $3,327,730 | $1,464,815 | $789,793 |
| Pipeline & Storage | $685,336 | $825 | $380,569 |
| Total | $3,507,243 | $960,571 | $1,170,362 |
Operational Highlights
Atmos Energy's operations are significantly influenced by regulatory mechanisms and rate adjustments. For the nine months ended June 30, 2024, the company implemented regulatory actions that resulted in an increase in annual operating income of $340.6 million. Key operational metrics include:
- Consolidated Distribution Sales Volumes: 252,116 MMcf
- Consolidated Distribution Transportation Volumes: 119,755 MMcf
- Total Consolidated Distribution Throughput: 371,871 MMcf
- Average Cost of Gas per Mcf Sold: $5.81
Cash Flow and Liquidity
As of June 30, 2024, Atmos Energy reported:
- Cash and Cash Equivalents: $679.3 million
- Total Liquidity: Approximately $4.3 billion
- Net Cash Provided by Operating Activities: $1,403.1 million
- Net Cash Used in Investing Activities: $(2,119.1) million
- Net Cash Provided by Financing Activities: $1,376.0 million
Debt and Capital Structure
Atmos Energy maintains a strong capital structure, with a combination of long-term debt and equity financing:
- Total Long-Term Debt: $7.785 billion
- Equity Capitalization: 61.0%
Recent Developments in Ratemaking
Recent ratemaking efforts have resulted in an increase in annual operating income, with ongoing regulatory proceedings aimed at further adjustments. The company is focusing on improving rate design to minimize regulatory lag.
| Rate Action | Annual Increase in Operating Income (in thousands) | EDIT Impact (in thousands) | Annual Increase Excluding EDIT (in thousands) |
|---|---|---|---|
| Annual Formula Rate Mechanisms | $229,678 | $(19,529) | $210,149 |
| Rate Case Filings | $2,434 | $(939) | $1,495 |
| Other Rate Activity | $(971) | $0 | $(971) |
| Total | $231,141 | $(20,468) | $210,673 |
Conclusion
Atmos Energy Corporation continues to enhance its operations, focusing on safety, reliability, and regulatory compliance while maintaining a strong financial position.
How Atmos Energy Corporation (ATO) Makes Money
Revenue Segmentation
Atmos Energy Corporation generates revenue primarily through two segments: Distribution and Pipeline & Storage. For the nine months ended June 30, 2024, total operating revenues were reported as follows:
| Segment | Operating Revenues (in thousands) |
|---|---|
| Distribution | $3,327,730 |
| Pipeline and Storage | $685,336 |
| Total Operating Revenues | $3,507,243 |
Distribution Segment Performance
The Distribution segment is responsible for the majority of Atmos Energy's revenues, driven by natural gas sales to residential, commercial, and industrial customers. Key financial data for the distribution segment for the nine months ended June 30, 2024, includes:
| Revenue Source | Amount (in thousands) |
|---|---|
| Residential Gas Sales | $2,177,935 |
| Commercial Gas Sales | $851,462 |
| Industrial Gas Sales | $79,810 |
| Public Authority and Other | $43,881 |
| Total Gas Sales Revenues | $3,153,088 |
Pipeline and Storage Segment Performance
This segment primarily focuses on the transportation and storage of natural gas. For the nine months ended June 30, 2024, the performance metrics included:
| Revenue Source | Amount (in thousands) |
|---|---|
| Transportation Revenues | $102,147 |
| Miscellaneous Revenues | $9,048 |
| Total Pipeline and Storage Revenues | $685,336 |
Operational Highlights
For the nine months ending June 30, 2024, Atmos Energy reported the following operational highlights:
| Metric | Amount |
|---|---|
| Net Income | $908,879,000 |
| Net Income per Share (Diluted) | $6.00 |
| Operating Income | $1,170,362,000 |
| Capital Expenditures | $2,129,137,000 |
Cost Structure and Expenses
The cost structure is a critical aspect of Atmos Energy's financial performance. Key expenses for the nine months ended June 30, 2024, included:
| Expense Type | Amount (in thousands) |
|---|---|
| Total Purchased Gas Cost | $960,571 |
| Operation and Maintenance Expense | $577,553 |
| Depreciation and Amortization Expense | $496,522 |
| Taxes (Other than Income) | $302,235 |
Regulatory Factors and Ratemaking
Atmos Energy operates in a heavily regulated environment, with various ratemaking mechanisms that allow for the timely recovery of capital investments. Recent developments in ratemaking have resulted in an increase in annual operating income:
| Ratemaking Activity | Annual Increase in Operating Income (in thousands) |
|---|---|
| Annual Formula Rate Mechanisms | $229,678 |
| Rate Case Filings | $2,434 |
| Other Rate Activity | $(971) |
| Total Annual Increase | $231,141 |
Liquidity and Capital Resources
As of June 30, 2024, Atmos Energy reported a total liquidity of approximately $4.3 billion, which includes:
| Liquidity Source | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $674.6 |
| Funds from Equity Forward Sales Agreements | $550.7 |
| Undrawn Capacity Under Credit Facilities | $3,094.4 |
Atmos Energy’s business model, characterized by its regulated nature and strategic capital investments, positions it to recover costs effectively while providing stable returns to shareholders.
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