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

February 2, 2016
Date of Report (Date of earliest event reported)

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



TEXAS AND VIRGINIA
1-10042
75-1743247
---------------------------------
------------------------
----------------------
(State or Other Jurisdiction
(Commission File
(I.R.S. Employer
of Incorporation)
Number)
Identification No.)

1800 THREE LINCOLN CENTRE,
 
5430 LBJ FREEWAY, DALLAS, TEXAS
75240
----------------------------------------------------
-----------------
(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)



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))



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Item 2.02.
Results of Operations and Financial Condition.

On Tuesday, February 2, 2016, Atmos Energy Corporation (the “Company”) issued a news release in which it reported the Company’s financial results for the 2016 fiscal year first quarter, which ended December 31, 2015, and that certain of its officers would discuss such financial results in a conference call on Wednesday, February 3, 2016 at 8:00 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 Number
Description
 
 
99.1
  
News Release dated February 2, 2016 (furnished under Item 2.02)















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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: February 2, 2016
By: /s/ LOUIS P. GREGORY                          
       Louis P. Gregory
       Senior Vice President, General Counsel
       and Corporate Secretary
 
 

























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INDEX TO EXHIBITS


Exhibit Number
Description
 
99.1
News Release dated February 2, 2016 (furnished under Item 2.02)

 











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Exhibit 99.1
 
 
 
News Release
Analysts and Media Contact:
Susan Giles (972) 855-3729

Atmos Energy Corporation Reports Earnings for Fiscal 2016 First Quarter;
Reaffirms Fiscal 2016 Guidance

DALLAS ( February 2, 2016 ) - Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its fiscal 2016 first quarter ended December 31, 2015 .

Fiscal 2016 first quarter consolidated net income, excluding net unrealized margins, was $95.6 million , or $0.93 per diluted share, compared with consolidated net income, excluding net unrealized margins of $92.8 million , or $0.91 per diluted share in the prior-year quarter.

Fiscal 2016 first quarter consolidated net income was $102.9 million , or $1.00 per diluted share, after including unrealized net gains of $7.3 million , or $0.07 per diluted share. Net income was $97.6 million , or $0.96 per diluted share in the prior-year quarter, after including unrealized net gains of $4.8 million or $0.05 per diluted share.
   
The company's Board of Directors has declared a quarterly dividend of $0.42 per common share. The indicated annual dividend for fiscal 2016 is $1.68, which represents a 7.7 percent increase over fiscal 2015.
“We are pleased to deliver solid first quarter financial results,” said Kim Cocklin, chief executive officer of Atmos Energy Corporation. “WNA mechanisms, which cover about 97 percent of our utility margins, have largely mitigated the effects of the mild start to this winter. In addition, our results reflect the capital investments made in our infrastructure to meet the growing energy needs of our customers, while striving to become the nation's safest natural gas utility. For fiscal 2016, we remain on track to meet our earnings guidance of between $3.20 and $3.40 per diluted share,” Cocklin concluded.


Results for the Three Months Ended December 31, 2015
Regulated distribution gross profit increased $9.7 million to $333.5 million for the three months ended December 31, 2015 , compared with $323.8 million in the prior-year quarter. Gross profit reflects a net $13.5 million increase in rates, primarily in the Mid-Tex, Mississippi and West

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Texas Divisions. This increase was partially offset by a $1.3 million decrease in revenue-related taxes and a $1.1 million decrease in consumption. Weather was 29 percent warmer than the prior-year quarter.
Regulated pipeline gross profit increased $11.1 million to $94.7 million for the quarter ended December 31, 2015 , compared with $83.6 million in the prior-year quarter. This increase primarily reflects a $10.1 million increase in revenue from the Gas Reliability Infrastructure Program (GRIP) filing approved in fiscal 2015.

Nonregulated gross profit was essentially flat at $15.8 million for the fiscal 2016 first quarter, compared with $16.0 million for the prior-year quarter.

Consolidated operation and maintenance expense for the three months ended December 31, 2015 was $124.8 million , compared with $118.6 million for the prior-year quarter. The increase was primarily driven by increased pipeline maintenance spending and higher administrative expenses.

Capital expenditures increased to $291.7 million for the quarter ended December 31, 2015 , compared with $261.3 million in the prior-year quarter driven by a planned increase in spending in the company's regulated operations.

For the quarter ended December 31, 2015 , the company generated operating cash flow of $70.5 million , a $43.1 million increase compared with the three months ended December 31, 2014 . The quarter-over-quarter increase primarily reflects the timing of customer collections and vendor payments.

The debt capitalization ratio at December 31, 2015 was 49.6 percent , compared with 47.7 percent at September 30, 2015 and 49.5 percent at December 31, 2014 . At December 31, 2015 , there was $763.2 million of short-term debt outstanding, compared with $457.9 million at September 30, 2015 and $550.9 million at December 31, 2014 .

Outlook
The leadership of Atmos Energy remains focused on enhancing system safety and reliability through infrastructure investment while delivering shareholder value and consistent earnings growth. Atmos Energy continues to expect fiscal 2016 earnings to be in the range of $3.20 to $3.40 per diluted share, excluding unrealized margins. Capital expenditures for fiscal 2016 are still expected to range between $1.0 billion and $1.1 billion.

Conference Call to be Webcast February 3, 2016
Atmos Energy will host a conference call with financial analysts to discuss the financial results for the fiscal 2016 first quarter on Wednesday, February 3, 2016 , at 8:00 a.m. Eastern. The domestic telephone number is 877-485-3107 and the international telephone number is 201-689-8427. Kim Cocklin, chief executive officer, Mike Haefner, president and chief operating officer, and Bret Eckert, senior vice president and chief financial officer, along with other members of the leadership team, 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.

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This news release should be read in conjunction with the attached unaudited financial information.
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 in 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 news release, including the risks and uncertainties relating to regulatory trends and decisions, the company's ability to continue to access the capital markets and the other factors discussed in the company's reports filed with the Securities and Exchange Commission. These factors include the risks and uncertainties discussed in the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2015 and in the company's Quarterly Report on Form 10-Q for the three months ended December 31, 2015 . Although the company believes 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. The company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

About Atmos Energy
Atmos Energy Corporation, headquartered in Dallas, is one of the country's largest natural-gas-only distributors, serving over three million natural gas distribution customers in over 1,400 communities in eight states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. Atmos Energy also manages company-owned natural gas pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas and provides natural gas marketing and procurement services to industrial, commercial and municipal customers primarily in the Midwest and Southeast. For more information, visit www.atmosenergy.com .

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Atmos Energy Corporation
Financial Highlights (Unaudited)
 
Statements of Income
 
Three Months Ended 
 December 31,
(000s except per share)
 
2015
 
2014
Gross Profit:
 
 
 
 
Regulated distribution segment
 
$
333,461

 
$
323,812

Regulated pipeline segment
 
94,677

 
83,567

Nonregulated segment
 
15,758

 
16,039

Intersegment eliminations
 
(133
)
 
(133
)
Gross profit
 
443,763

 
423,285

Operation and maintenance expense
 
124,848

 
118,582

Depreciation and amortization
 
71,239

 
67,593

Taxes, other than income
 
51,471

 
49,385

Total operating expenses
 
247,558

 
235,560

Operating income
 
196,205

 
187,725

Miscellaneous expense
 
(1,209
)
 
(1,707
)
Interest charges
 
30,483

 
29,764

Income before income taxes
 
164,513

 
156,254

Income tax expense
 
61,652

 
58,659

Net income
 
$
102,861

 
$
97,595

Basic and diluted earnings per share
 
$
1.00

 
$
0.96

Cash dividends per share
 
$
0.42

 
$
0.39

Basic and diluted weighted average shares outstanding
 
102,713

 
101,581


 
 
Three Months Ended 
 December 31,
Summary Net Income (Loss) by Segment (000s)
 
2015
 
2014
Regulated distribution
 
$
73,255

 
$
71,387

Regulated pipeline
 
25,586

 
22,035

Nonregulated
 
(3,241
)
 
(584
)
Unrealized margins, net of tax
 
7,261

 
4,757

Consolidated net income
 
$
102,861

 
$
97,595


 
 
 
 
 
 

 
 
 
 
 



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Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
 
Condensed Balance Sheets
 
December 31,
 
September 30,
(000s)
 
2015
 
2015
Net property, plant and equipment
 
$
7,653,287

 
$
7,430,580

Cash and cash equivalents
 
78,903

 
28,653

Accounts receivable, net
 
456,904

 
295,160

Gas stored underground
 
236,017

 
236,603

Other current assets
 
91,446

 
70,569

Total current assets
 
863,270

 
630,985

Goodwill
 
742,702

 
742,702

Deferred charges and other assets
 
295,394

 
288,678

 
 
$
9,554,653

 
$
9,092,945

 
 
 
 
 
Shareholders' equity
 
$
3,272,109

 
$
3,194,797

Long-term debt
 
2,455,474

 
2,455,388

Total capitalization
 
5,727,583

 
5,650,185

Accounts payable and accrued liabilities
 
280,487

 
238,942

Other current liabilities
 
471,333

 
457,954

Short-term debt
 
763,236

 
457,927

Total current liabilities
 
1,515,056

 
1,154,823

Deferred income taxes
 
1,441,325

 
1,411,315

Deferred credits and other liabilities
 
870,689

 
876,622

 
 
$
9,554,653

 
$
9,092,945


5



Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
 
Condensed Statements of Cash Flows
 
Three Months Ended 
 December 31,
(000s)
 
2015
 
2014
Cash flows from operating activities
 
 
 
 
Net income
 
$
102,861

 
$
97,595

Depreciation and amortization
 
71,239

 
67,593

Deferred income taxes
 
59,299

 
55,418

Other
 
4,733

 
5,164

Changes in assets and liabilities
 
(167,639
)
 
(198,355
)
Net cash provided by operating activities
 
70,493

 
27,415

Cash flows from investing activities
 
 
 
 
Capital expenditures
 
(291,674
)
 
(261,313
)
Other, net
 
1,029

 
(739
)
Net cash used in investing activities
 
(290,645
)
 
(262,052
)
Cash flows from financing activities
 
 
 
 
Net increase in short-term debt
 
305,309

 
350,574

Net proceeds from issuance of long-term debt
 

 
493,538

Settlement of Treasury lock agreements
 

 
13,364

Repayment of long-term debt
 

 
(500,000
)
Cash dividends paid
 
(43,636
)
 
(39,592
)
Repurchase of equity awards
 

 
(7,985
)
Issuance of common stock
 
8,729

 
6,312

Net cash provided by financing activities
 
270,402

 
316,211

Net increase in cash and cash equivalents
 
50,250

 
81,574

Cash and cash equivalents at beginning of period
 
28,653

 
42,258

Cash and cash equivalents at end of period
 
$
78,903

 
$
123,832

 
 
 
Three Months Ended 
 December 31,
Statistics
 
2015
 
2014
Consolidated distribution throughput (MMcf as metered)
 
100,928

 
123,434

Consolidated pipeline transportation volumes (MMcf)
 
129,159

 
120,634

Consolidated nonregulated delivered gas sales volumes (MMcf)
 
85,131

 
90,930

Regulated distribution meters in service
 
3,167,352

 
3,133,951

Regulated distribution average cost of gas
 
$
4.44

 
$
6.02

Nonregulated net physical position (Bcf)
 
23.5

 
17.1

###


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