0000731802-21-000021.txt : 20210505 0000731802-21-000021.hdr.sgml : 20210505 20210505163908 ACCESSION NUMBER: 0000731802-21-000021 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20210505 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210505 DATE AS OF CHANGE: 20210505 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ATMOS ENERGY CORP CENTRAL INDEX KEY: 0000731802 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 751743247 STATE OF INCORPORATION: TX FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10042 FILM NUMBER: 21894024 BUSINESS ADDRESS: STREET 1: 1800 THREE LINCOLN CTR STREET 2: 5430 LBJ FREEWAY CITY: DALLAS STATE: TX ZIP: 75240 BUSINESS PHONE: 9729349227 MAIL ADDRESS: STREET 1: 1800 THREE LINCOLN CTR STREET 2: 5430 LBJ FREEWAY CITY: DALLAS STATE: TX ZIP: 75240 FORMER COMPANY: FORMER CONFORMED NAME: ENERGAS CO DATE OF NAME CHANGE: 19881024 8-K 1 ato-20210505.htm 8-K ato-20210505
0000731802false00007318022021-05-052021-05-05

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

May 5, 2021
Date of Report (Date of earliest event reported)

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

TexasandVirginia1-1004275-1743247
-------------------------------------------------------------------------------
(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
------------------------------
(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, May 5, 2021, Atmos Energy Corporation (the “Company”) issued a news release in which it reported the Company’s financial results for the 2021 fiscal year second quarter, which ended March 31, 2021, and that certain of its officers would discuss such financial results in a conference call on Thursday, May 6, 2021 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:May 5, 2021
By: /s/ CHRISTOPHER T. FORSYTHE
       Christopher T. Forsythe
       Senior Vice President and
       Chief Financial Officer







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EX-99.1 2 ato202155exhibit991.htm EX-99.1 Document

Exhibit 99.1
g528915g02g72a281a.jpg
 
 
News Release
Analysts and Media Contact:
Dan Meziere (972) 855-3729

Atmos Energy Corporation Reports Earnings for Fiscal 2021 Second Quarter;
Affirms Fiscal 2021 Guidance
DALLAS (May 5, 2021) - Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its second fiscal quarter ended March 31, 2021.

Highlights
Earnings per diluted share was $4.01 for the six months ended March 31, 2021; $2.30 per diluted share for the second fiscal quarter.
Consolidated net income was $514.4 million for the six months ended March 31, 2021; $296.8 million for the second fiscal quarter.
Capital expenditures totaled $845.7 million for the six months ended March 31, 2021, with approximately 87 percent of capital spending related to system safety and reliability investments.
    
Outlook
Earnings per diluted share for fiscal 2021 is expected to be in the previously announced range of $4.90 to $5.10.
Capital expenditures are expected to be in the range of $2.0 billion to $2.2 billion in fiscal 2021.
The company's Board of Directors has declared a quarterly dividend of $0.625 per common share. The indicated annual dividend for fiscal 2021 is $2.50, which represents an 8.7% increase over fiscal 2020.

"Our operating and financial performance for the first six months of the fiscal year reflects our employees’ continued ability to execute at the highest levels on all facets of our business,” said Kevin Akers, President and Chief Executive Officer of Atmos Energy. ”Their dedication and resilience leaves us well positioned for a successful fiscal 2021,” Akers concluded.
Results for the Three Months Ended March 31, 2021
Consolidated operating income increased $50.4 million to $381.8 million for the three months ended March 31, 2021, from $331.4 million in the prior-year quarter. Rate case outcomes in both segments and customer growth in our distribution segment were partially offset by lower through system revenue in our pipeline and storage segment, decreased service order revenue and higher bad debt expense in our distribution segment and higher depreciation and property tax expenses.
Distribution operating income increased $49.8 million to $303.3 million for the three months ended March 31, 2021, compared with $253.5 million in the prior-year quarter. The increase
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primarily reflects a net $65.8 million increase in rates and a $4.9 million increase due to net customer growth, partially offset by a $12.3 million increase in depreciation and property tax expenses associated with increased capital investments, a $6.5 million increase in bad debt expense, and a $3.9 million decrease in service order revenues.
Pipeline and storage operating income increased $0.7 million to $78.5 million for the three months ended March 31, 2021, compared with $77.9 million in the prior-year quarter. This increase is primarily attributable to a $14.0 million increase in rates, due to the GRIP filing approved in fiscal 2020, partially offset by a $6.8 million increase in depreciation and property tax expenses due to increased capital investments, a $6.4 million decrease due to the refund of excess deferred income taxes to customers and a $3.4 million decrease in through system revenues.
Results for the Six Months Ended March 31, 2021
Consolidated operating income increased $96.4 million to $680.6 million for the six months ended March 31, 2021, compared to $584.2 million in the prior year, which primarily reflects rate outcomes in both segments, customer growth in our distribution segment and lower operating and maintenance expenses, partially offset by higher bad debt expense and lower service order revenue in our distribution segment, lower through system revenue in our pipeline and storage segment and increased depreciation and property tax expenses.
Distribution operating income increased $79.0 million to $512.8 million for the six months ended March 31, 2021, compared with $433.8 million in the prior year. The increase reflects a net $102.7 million increase in rates, customer growth of $10.7 million and a $6.2 million savings in operations and maintenance expense excluding bad debt expense, partially offset by a $22.1 million increase in depreciation and property tax expenses associated with increased capital investments, increased bad debt expense of $8.8 million, an $8.1 million decrease in weather and consumption and an $8.4 million decrease in service order revenues.
Pipeline and storage operating income increased $17.4 million to $167.8 million for the six months ended March 31, 2021, compared with $150.4 million in the prior year. This increase is primarily attributable to a $27.3 million increase from our GRIP filings approved in fiscal 2020 and a $7.7 million decrease in operating and maintenance expense due primarily to nonrecurring well integrity costs in the prior-year period. These increases were partially offset by an $11.4 million increase in depreciation and property tax expenses due to increased capital investments, a $6.4 million decrease due to the refund of excess deferred income taxes to customers and a $4.9 million decrease in through system revenues.
Additionally, our year-to-date results reflect a reduction in our annual effective tax rate related to the refund of excess deferred taxes, primarily to APT customers, which has been or will be offset by a corresponding decrease in revenues over the remainder of the fiscal year. As a result, our consolidated effective tax rate declined from 22.1% in the prior-year period to 19.8% for the six months ended March 31, 2021.
Capital expenditures decreased $149.0 million to $845.7 million for the six months ended March 31, 2021, compared with $994.7 million in the prior year, primarily as a result of timing of spending in our distribution segment.
For the six months ended March 31, 2021, the company generated negative operating cash flow of $1,402.2 million, a $2,036.0 million decrease compared with the six months ended March 31,
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2020. The year-over-year decrease is primarily the result of gas costs incurred during Winter Storm Uri.
Our equity capitalization ratio at March 31, 2021 was 51.7%, compared with 60.0% at September 30, 2020, due to the issuance of $600 million of 1.50% senior notes in October 2020 and a $2.2 billion debt issuance in March 2021 in order to finance gas costs incurred during Winter Storm Uri. Excluding the $2.2 billion of incremental financing, our equity capitalization ratio would have been 60.4% at March 31, 2021.
Conference Call to be Webcast May 6, 2021
Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2021 second quarter financial results on Thursday, May 6, 2021, at 10:00 a.m. Eastern Time. The domestic telephone number is 877-407-3088 and the international telephone number is 201-389-0927. 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 presentation, 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; the impact of greenhouse gas emissions or other legislation or regulations intended to address climate change; 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; adverse weather conditions; the impact of climate change; the inability to continue to hire, train and retain operational, technical and managerial personnel; increased dependence on technology that may hinder the Company's business if such technologies fail; the threat of cyber-attacks or acts of cyber-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; 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
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our control; 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; increased costs of providing health care benefits, along with pension and postretirement health care benefits and increased funding requirements; and the outbreak of COVID-19 and its impact on business and economic conditions.
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, affordable, efficient and abundant natural gas to more than 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.

4


Atmos Energy Corporation
Financial Highlights (Unaudited)

Statements of IncomeThree Months Ended March 31
(000s except per share)20212020
Operating revenues
Distribution segment
$1,282,674 $933,005 
Pipeline and storage segment
154,168 146,237 
Intersegment eliminations
(117,769)(101,577)
1,319,073 977,665 
Purchased gas cost
Distribution segment
691,147 418,935 
Pipeline and storage segment
113 202 
Intersegment eliminations
(117,451)(101,254)
573,809 317,883 
Operation and maintenance expense156,375 147,824 
Depreciation and amortization118,636 105,916 
Taxes, other than income88,449 74,604 
Operating income381,804 331,438 
Other non-operating income (expense)2,834 (2,989)
Interest charges26,096 22,171 
Income before income taxes358,542 306,278 
Income tax expense61,788 66,632 
Net income$296,754 $239,646 
Basic net income per share$2.30 $1.95 
Diluted net income per share$2.30 $1.95 
Cash dividends per share$0.625 $0.575 
Basic weighted average shares outstanding129,161 122,916 
Diluted weighted average shares outstanding129,164 122,997 

 Three Months Ended March 31
Summary Net Income by Segment (000s)20212020
Distribution$232,336 $187,064 
Pipeline and storage64,418 52,582 
Net income$296,754 $239,646 
5


Atmos Energy Corporation
Financial Highlights, continued (Unaudited)

Statements of IncomeSix Months Ended March 31
(000s except per share)20212020
Operating revenues
Distribution segment
$2,159,324 $1,761,509 
Pipeline and storage segment
313,881 294,413 
Intersegment eliminations
(239,652)(202,694)
2,233,553 1,853,228 
Purchased gas cost
Distribution segment
1,102,219 816,493 
Pipeline and storage segment
(1,131)301 
Intersegment eliminations
(239,019)(202,043)
862,069 614,751 
Operation and maintenance expense295,018 300,069 
Depreciation and amortization233,921 210,978 
Taxes, other than income161,901 143,211 
Operating income680,644 584,219 
Other non-operating income8,906 1,898 
Interest charges48,106 49,400 
Income before income taxes641,444 536,717 
Income tax expense127,012 118,398 
Net income$514,432 $418,319 
Basic net income per share$4.01 $3.43 
Diluted net income per share$4.01 $3.42 
Cash dividends per share$1.25 $1.15 
Basic weighted average shares outstanding128,098 122,015 
Diluted weighted average shares outstanding128,100 122,179 

 Six Months Ended March 31
Summary Net Income by Segment (000s)20212020
Distribution$386,028 $316,821 
Pipeline and storage128,404 101,498 
Net income$514,432 $418,319 

6


Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
 
Condensed Balance SheetsMarch 31,September 30,
(000s)20212020
Net property, plant and equipment$14,039,588 $13,355,347 
Cash and cash equivalents865,311 20,808 
Accounts receivable, net469,595 230,595 
Gas stored underground50,043 111,950 
Other current assets235,485 107,905 
Total current assets1,620,434 471,258 
Goodwill731,257 731,257 
Deferred charges and other assets3,017,531 801,170 
$19,408,810 $15,359,032 
Shareholders' equity$7,820,925 $6,791,203 
Long-term debt7,316,404 4,531,779 
Total capitalization15,137,329 11,322,982 
Accounts payable and accrued liabilities263,597 235,775 
Other current liabilities607,525 546,461 
Current maturities of long-term debt177 165 
Total current liabilities871,299 782,401 
Deferred income taxes1,658,000 1,456,569 
Regulatory excess deferred taxes639,496 697,764 
Deferred credits and other liabilities1,102,686 1,099,316 
$19,408,810 $15,359,032 

7


Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
 
Condensed Statements of Cash FlowsSix Months Ended March 31
(000s)20212020
Cash flows from operating activities
Net income$514,432 $418,319 
Depreciation and amortization233,921 210,978 
Deferred income taxes128,725 110,664 
Other(938)7,144 
Changes in Winter Storm Uri regulatory asset(2,093,534)— 
Changes in other assets and liabilities(184,852)(113,330)
Net cash provided by (used in) operating activities(1,402,246)633,775 
Cash flows from investing activities
Capital expenditures(845,728)(994,737)
Debt and equity securities activities, net(5,506)(1,131)
Other, net5,171 4,631 
Net cash used in investing activities(846,063)(991,237)
Cash flows from financing activities
Net decrease in short-term debt— (264,992)
Proceeds from issuance of long-term debt, net of premium/discount2,797,346 799,450 
Net proceeds from equity offering460,678 258,047 
Issuance of common stock through stock purchase and employee retirement plans8,291 8,321 
Cash dividends paid(159,348)(140,077)
Debt issuance costs(14,155)(7,738)
Net cash provided by financing activities3,092,812 653,011 
Net increase in cash and cash equivalents844,503 295,549 
Cash and cash equivalents at beginning of period20,808 24,550 
Cash and cash equivalents at end of period$865,311 $320,099 
 
 Three Months Ended March 31Six Months Ended March 31
Statistics2021202020212020
Consolidated distribution throughput (MMcf as metered)
191,243 163,870 319,713 303,428 
Consolidated pipeline and storage transportation volumes (MMcf)
130,578 143,465 275,165 299,994 
Distribution meters in service3,380,153 3,312,616 3,380,153 3,312,616 
Distribution average cost of gas$4.75 $3.51 $4.70 $3.74 
###
8
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Document and Entity Information
May 05, 2021
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 05, 2021
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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