Exhibit 99.1
News Release
Analysts and Media Contact:
Susan Giles (972) 855-3729
Atmos Energy Corporation Reports Earnings for the Fiscal
2015
First
Quarter;
Reaffirms Fiscal
2015
Guidance
DALLAS (
February 3, 2015
)—Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its fiscal
2015
first
quarter ended
December 31, 2014
.
|
•
|
Fiscal
2015
first
quarter consolidated net income, excluding net unrealized margins, was
$92.8 million
, or
$0.91
per diluted share, compared with consolidated net income, excluding net unrealized margins, of
$80.6 million
, or
$0.88
per diluted share in the prior-year quarter.
|
|
•
|
Fiscal
2015
first
quarter consolidated net income was
$97.6 million
, or
$0.96
per diluted share, after including unrealized net
gains
of
$4.8 million
, or
$0.05
per diluted share. Net income was
$87.0 million
, or
$0.95
per diluted share in the prior-year quarter, after including unrealized net
gains
of
$6.4 million
, or
$0.07
per diluted share.
|
|
•
|
The company's Board of Directors has declared a quarterly dividend of 39 cents per common share. The indicated annual dividend for fiscal
2015
is $1.56, which represents a 5.4 percent increase over fiscal 2014.
|
"Our first quarter results reflect the successful execution of our infrastructure investment strategy launched in 2012," said Kim Cocklin, president and chief executive officer of Atmos Energy Corporation. “This investment continues to deliver the safe and reliable natural gas service our customers deserve. We remain poised to deliver on our fiscal 2015 guidance of between $2.90 and $3.05 per diluted share,” Cocklin concluded.
Results for the
Three Months Ended
December 31, 2014
Regulated distribution gross profit
increased
$24.6 million
to
$323.8 million
for the
three months ended
December 31, 2014
, compared with
$299.2 million
in the prior-year quarter. Gross profit reflects a net $19.3 million quarter-over-quarter increase in rates, primarily in the Mid-Tex, Kentucky/Mid-States and West Texas Divisions. Additionally, gross profit increased $2.1 million from higher transportation revenues and $2.9 million from higher revenue-related taxes.
Regulated pipeline gross profit
increased
$12.3 million
to
$83.6 million
for the
three months ended
December 31, 2014
, compared with
$71.3 million
during the same period last year. This increase is
1
primarily the result of a $12.5 million increase in revenues from the Gas Reliability Infrastructure Program (GRIP) filing that became effective in May 2014.
Nonregulated gross profit
decreased
$2.6 million
to
$16.0 million
for the
three months ended
December 31, 2014
, compared with
$18.6 million
for the prior-year period, primarily due to changes in unrealized margins. Realized margins were flat quarter over quarter.
Consolidated operation and maintenance expense for the
three months ended
December 31, 2014
, was
$118.6 million
, compared with
$115.8 million
for the prior-year period. The
$2.8 million
increase
resulted primarily from higher employee labor and benefits expense and increased pipeline maintenance spending. These increases were partially offset by a reduction in legal expenses.
Capital expenditures
increased
to
$261.3 million
for the
three months ended December 31, 2014
, compared with
$180.6 million
in the prior-year period. The
$80.7 million
increase
is largely due to a $41.8 million increase in spending in the regulated pipeline segment primarily associated with the enhancement and fortification of two storage fields to ensure the reliability of gas service to the Mid-Tex Division. Additionally, spending in the regulated distribution segment increased $38.7 million in the current quarter. The increase primarily reflects the timing of the spending combined with a planned increase in safety and reliability investment in fiscal 2015.
For the
three months ended December 31, 2014
, the company generated operating cash flow of
$27.4 million
, a
$6.9 million
decrease
compared with the
three months ended December 31, 2013
. The
decrease
primarily reflects the timing of customer collections and vendor payments.
The debt capitalization ratio at
December 31, 2014
was
49.5 percent
, compared with
46.2 percent
at
September 30, 2014
and
54.2 percent
at
December 31, 2013
. At
December 31, 2014
, there was $550.9 million of short-term debt outstanding, compared with
$196.7 million
at
September 30, 2014
and
$689.8 million
at
December 31, 2013
.
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
2015
earnings to be in the range of $2.90 to $3.05 per diluted share, excluding unrealized margins. Capital expenditures for fiscal
2015
are expected to continue to range between $900 million and $1 billion.
Conference Call to be Webcast
February 4, 2015
Atmos Energy will host a conference call with financial analysts to discuss the financial results for the fiscal
2015
first
quarter on Wednesday,
February 4, 2015
, at 8:00 a.m. Eastern. The telephone number is 877-485-3107 and the international telephone number is 201-689-8427. 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. Kim Cocklin, president and chief executive officer and Bret Eckert, senior vice president and chief financial officer will participate in the conference call.
2
Highlights and Recent Developments
Atmos Energy Names Michael E. Haefner as Executive Vice President
On January 19, 2015, the Board of Directors of Atmos Energy promoted Michael E. Haefner to Executive Vice President, effective immediately. In addition to his responsibilities as Senior Vice President, Human Resources and a member of the management committee, Mr. Haefner will assume responsibility for Atmos-Pipeline Texas, Atmos Energy Holdings, Inc. and the company's gas supply and services function.
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, 2014
. 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.
3
Atmos Energy Corporation
Financial Highlights
(Unaudited)
|
Consolidated Statements of Income
|
|
Three Months Ended
December 31 |
||||||
|
(000s except per share)
|
|
2014
|
|
2013
|
||||
|
Gross Profit:
|
|
|
|
|
||||
|
Regulated distribution segment
|
|
$
|
323,812
|
|
|
$
|
299,171
|
|
|
Regulated pipeline segment
|
|
83,567
|
|
|
71,341
|
|
||
|
Nonregulated segment
|
|
16,039
|
|
|
18,566
|
|
||
|
Intersegment eliminations
|
|
(133
|
)
|
|
(121
|
)
|
||
|
Gross profit
|
|
423,285
|
|
|
388,957
|
|
||
|
Operation and maintenance expense
|
|
118,582
|
|
|
115,757
|
|
||
|
Depreciation and amortization
|
|
67,593
|
|
|
60,469
|
|
||
|
Taxes, other than income
|
|
49,385
|
|
|
42,011
|
|
||
|
Total operating expenses
|
|
235,560
|
|
|
218,237
|
|
||
|
Operating income
|
|
187,725
|
|
|
170,720
|
|
||
|
Miscellaneous expense
|
|
(1,707
|
)
|
|
(2,132
|
)
|
||
|
Interest charges
|
|
29,764
|
|
|
32,115
|
|
||
|
Income before income taxes
|
|
156,254
|
|
|
136,473
|
|
||
|
Income tax expense
|
|
58,659
|
|
|
49,457
|
|
||
|
Net income
|
|
$
|
97,595
|
|
|
$
|
87,016
|
|
|
Basic net income per share
|
|
$
|
0.96
|
|
|
$
|
0.95
|
|
|
Diluted net income per share
|
|
$
|
0.96
|
|
|
$
|
0.95
|
|
|
Cash dividends per share
|
|
$
|
0.39
|
|
|
$
|
0.37
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
||||
|
Basic
|
|
101,581
|
|
|
91,841
|
|
||
|
Diluted
|
|
101,581
|
|
|
91,843
|
|
||
|
|
|
Three Months Ended
December 31 |
||||||
|
Summary Net Income (Loss) by Segment (000s)
|
|
2014
|
|
2013
|
||||
|
Regulated distribution
|
|
$
|
71,387
|
|
|
$
|
62,757
|
|
|
Regulated pipeline
|
|
22,035
|
|
|
19,446
|
|
||
|
Nonregulated
|
|
(584
|
)
|
|
(1,635
|
)
|
||
|
Unrealized margins, net of tax
|
|
4,757
|
|
|
6,448
|
|
||
|
Consolidated net income
|
|
$
|
97,595
|
|
|
$
|
87,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
Atmos Energy Corporation
Financial Highlights, continued
(Unaudited)
|
Condensed Consolidated Balance Sheets
|
|
December 31,
|
|
September 30,
|
||||
|
(000s)
|
|
2014
|
|
2014
|
||||
|
Net property, plant and equipment
|
|
$
|
6,912,541
|
|
|
$
|
6,725,906
|
|
|
Cash and cash equivalents
|
|
123,832
|
|
|
42,258
|
|
||
|
Accounts receivable, net
|
|
607,421
|
|
|
343,400
|
|
||
|
Gas stored underground
|
|
277,916
|
|
|
278,917
|
|
||
|
Other current assets
|
|
109,595
|
|
|
111,265
|
|
||
|
Total current assets
|
|
1,118,764
|
|
|
775,840
|
|
||
|
Goodwill
|
|
742,029
|
|
|
742,029
|
|
||
|
Deferred charges and other assets
|
|
341,759
|
|
|
350,929
|
|
||
|
|
|
$
|
9,115,093
|
|
|
$
|
8,594,704
|
|
|
Shareholders’ equity
|
|
$
|
3,063,925
|
|
|
$
|
3,086,232
|
|
|
Long-term debt
|
|
2,455,131
|
|
|
2,455,986
|
|
||
|
Total capitalization
|
|
5,519,056
|
|
|
5,542,218
|
|
||
|
Accounts payable and accrued liabilities
|
|
397,595
|
|
|
308,086
|
|
||
|
Other current liabilities
|
|
472,113
|
|
|
405,869
|
|
||
|
Short-term debt
|
|
550,903
|
|
|
196,695
|
|
||
|
Total current liabilities
|
|
1,420,611
|
|
|
910,650
|
|
||
|
Deferred income taxes
|
|
1,256,443
|
|
|
1,286,616
|
|
||
|
Deferred credits and other liabilities
|
|
918,983
|
|
|
855,220
|
|
||
|
|
|
$
|
9,115,093
|
|
|
$
|
8,594,704
|
|
5
Atmos Energy Corporation
Financial Highlights, continued
(Unaudited)
|
Condensed Consolidated Statements of Cash Flows
|
|
Three Months Ended
December 31 |
||||||
|
(000s)
|
|
2014
|
|
2013
|
||||
|
Cash flows from operating activities
|
|
|
|
|
||||
|
Net income
|
|
$
|
97,595
|
|
|
$
|
87,016
|
|
|
Depreciation and amortization
|
|
67,593
|
|
|
60,469
|
|
||
|
Deferred income taxes
|
|
55,418
|
|
|
47,127
|
|
||
|
Other
|
|
5,164
|
|
|
5,449
|
|
||
|
Changes in assets and liabilities
|
|
(198,355
|
)
|
|
(165,761
|
)
|
||
|
Net cash provided by operating activities
|
|
27,415
|
|
|
34,300
|
|
||
|
Cash flows from investing activities
|
|
|
|
|
||||
|
Capital expenditures
|
|
(261,313
|
)
|
|
(180,567
|
)
|
||
|
Other, net
|
|
(739
|
)
|
|
(5,867
|
)
|
||
|
Net cash used in investing activities
|
|
(262,052
|
)
|
|
(186,434
|
)
|
||
|
Cash flows from financing activities
|
|
|
|
|
||||
|
Net increase in short-term debt
|
|
350,574
|
|
|
320,783
|
|
||
|
Net proceeds from issuance of long-term debt
|
|
493,538
|
|
|
—
|
|
||
|
Settlement of interest rate agreements
|
|
13,364
|
|
|
—
|
|
||
|
Repayment of long-term debt
|
|
(500,000
|
)
|
|
—
|
|
||
|
Cash dividends paid
|
|
(39,592
|
)
|
|
(33,984
|
)
|
||
|
Repurchase of equity awards
|
|
(7,985
|
)
|
|
(6,289
|
)
|
||
|
Issuance of common stock
|
|
6,312
|
|
|
(12
|
)
|
||
|
Net cash provided by financing activities
|
|
316,211
|
|
|
280,498
|
|
||
|
Net increase in cash and cash equivalents
|
|
81,574
|
|
|
128,364
|
|
||
|
Cash and cash equivalents at beginning of period
|
|
42,258
|
|
|
66,199
|
|
||
|
Cash and cash equivalents at end of period
|
|
$
|
123,832
|
|
|
$
|
194,563
|
|
|
|
|
Three Months Ended
December 31 |
||||||
|
Statistics
|
|
2014
|
|
2013
|
||||
|
Consolidated regulated distribution throughput (MMcf as metered)
|
|
123,434
|
|
|
130,485
|
|
||
|
Consolidated regulated pipeline volumes (MMcf)
|
|
120,634
|
|
|
118,774
|
|
||
|
Consolidated nonregulated delivered gas sales volumes (MMcf)
|
|
90,930
|
|
|
92,637
|
|
||
|
Regulated distribution meters in service
|
|
3,133,951
|
|
|
3,042,931
|
|
||
|
Regulated distribution average cost of gas
|
|
$
|
6.02
|
|
|
$
|
5.54
|
|
|
Nonregulated net physical position (Bcf)
|
|
17.1
|
|
|
15.5
|
|
||
###
6