TEXAS AND VIRGINIA
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1-10042
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75-1743247
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---------------------------------
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------------------------
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----------------------
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(State or Other Jurisdiction
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(Commission File
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(I.R.S. Employer
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of Incorporation)
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Number)
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Identification No.)
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1800 THREE LINCOLN CENTRE,
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5430 LBJ FREEWAY, DALLAS, TEXAS
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75240
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----------------------------------------------------
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-----------------
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(Address of Principal Executive Offices)
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(Zip Code)
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 9.01.
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Financial Statements and Exhibits.
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Exhibit Number
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Description
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|
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99.1
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|
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ATMOS ENERGY CORPORATION
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|
(Registrant)
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DATE: May 2, 2018
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By:
/s/ CHRISTOPHER T. FORSYTHE
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Christopher T. Forsythe
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|
Senior Vice President and
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|
Chief Financial Officer
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News Release
|
•
|
Fiscal
2018
second
quarter consolidated net income was
$179.0 million
, or
$1.60
per diluted share, compared with consolidated net income of
$164.7 million
, or
$1.55
per diluted share in the prior-year quarter.
|
•
|
Adjusted income from continuing operations was
$175.2 million
, or
$1.57
per diluted share after excluding an income tax benefit of
$3.8 million
, or
$0.03
per diluted share, related to the Tax Cuts and Jobs Act of 2017 (the TCJA). Net income from continuing operations was
$162.0 million
, or
$1.52
per diluted share for the same quarter last year.
|
•
|
The company's Board of Directors has declared a quarterly dividend of $0.485 per common share. The indicated annual dividend for fiscal
2018
is $1.94, which represents a 7.8 percent increase over fiscal 2017.
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Three Months Ended March 31
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||||||||||
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2018
|
|
2017
|
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Change
|
||||||
|
(In thousands, except per share data)
|
||||||||||
Income from continuing operations
|
$
|
178,992
|
|
|
$
|
162,012
|
|
|
$
|
16,980
|
|
TCJA non-cash income tax benefit
|
3,791
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|
|
—
|
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|
3,791
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|
|||
Adjusted income from continuing operations
|
$
|
175,201
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|
$
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162,012
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|
|
$
|
13,189
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|
||||||
Consolidated diluted EPS from continuing operations
|
$
|
1.60
|
|
|
$
|
1.52
|
|
|
$
|
0.08
|
|
Diluted EPS from TCJA non-cash income tax benefit
|
0.03
|
|
|
—
|
|
|
0.03
|
|
|||
Adjusted diluted EPS from continuing operations
|
$
|
1.57
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$
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1.52
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$
|
0.05
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Six Months Ended March 31
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||||||||||
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2018
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|
2017
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Change
|
||||||
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(In thousands, except per share data)
|
||||||||||
Income from continuing operations
|
$
|
493,124
|
|
|
$
|
276,050
|
|
|
$
|
217,074
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|
TCJA non-cash income tax benefit
|
165,675
|
|
|
—
|
|
|
165,675
|
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|||
Adjusted income from continuing operations
|
$
|
327,449
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$
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276,050
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$
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51,399
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|
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||||||
Consolidated diluted EPS from continuing operations
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$
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4.47
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$
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2.61
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$
|
1.86
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Diluted EPS from TCJA non-cash income tax benefit
|
1.50
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—
|
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1.50
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|||
Adjusted diluted EPS from continuing operations
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$
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2.97
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$
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2.61
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$
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0.36
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||||
Statements of Income
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Three Months Ended
March 31 |
||||||
(000s except per share)
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2018
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|
2017
|
||||
Operating revenues
|
|
|
|
|
||||
Distribution segment
|
|
$
|
1,199,291
|
|
|
$
|
962,541
|
|
Pipeline and storage segment
|
|
120,955
|
|
|
111,972
|
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||
Intersegment eliminations
|
|
(100,837
|
)
|
|
(86,327
|
)
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||
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|
1,219,409
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988,186
|
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||
Purchased gas cost
|
|
|
|
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||||
Distribution segment
|
|
727,053
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513,096
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||
Pipeline and storage segment
|
|
433
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|
|
725
|
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||
Intersegment eliminations
|
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(100,526
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)
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(86,327
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)
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||
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626,960
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427,494
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||
Contribution margin
|
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592,449
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560,692
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||
Operation and maintenance expense
|
|
161,073
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132,239
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||
Depreciation and amortization
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89,381
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77,667
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Taxes, other than income
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73,007
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65,614
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Total operating expenses
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323,461
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275,520
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||
Operating income
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268,988
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285,172
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||
Miscellaneous income (expense)
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(253
|
)
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|
833
|
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||
Interest charges
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|
27,304
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|
26,944
|
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||
Income from continuing operations before income taxes
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|
241,431
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|
259,061
|
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||
Income tax expense
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62,439
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|
97,049
|
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||
Income from continuing operations
|
|
178,992
|
|
|
162,012
|
|
||
Gain on sale of discontinued operations, net of tax
|
|
—
|
|
|
2,716
|
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||
Net Income
|
|
$
|
178,992
|
|
|
$
|
164,728
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|
Basic and diluted net income per share
|
|
|
|
|
||||
Income per share from continuing operations
|
|
$
|
1.60
|
|
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$
|
1.52
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Income per share from discontinued operations
|
|
—
|
|
|
0.03
|
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||
Net income per share - basic and diluted
|
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$
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1.60
|
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$
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1.55
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Cash dividends per share
|
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$
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0.485
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$
|
0.450
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Basic and diluted weighted average shares outstanding
|
|
111,706
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|
|
105,935
|
|
|
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||||
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Three Months Ended
March 31 |
||||||
Summary Net Income by Segment (000s)
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|
2018
|
|
2017
|
||||
Distribution
|
|
$
|
145,243
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$
|
131,145
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|
Pipeline and storage
|
|
33,749
|
|
|
30,867
|
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||
Net income from continuing operations
|
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178,992
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|
162,012
|
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Net income from discontinued operations
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—
|
|
|
2,716
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||
Net Income
|
|
$
|
178,992
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|
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$
|
164,728
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|
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|
||||
Statements of Income
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Six Months Ended
March 31 |
||||||
(000s except per share)
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2018
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|
2017
|
||||
Operating revenues
|
|
|
|
|
||||
Distribution segment
|
|
$
|
2,060,083
|
|
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$
|
1,717,197
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|
Pipeline and storage segment
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|
247,418
|
|
|
221,924
|
|
||
Intersegment eliminations
|
|
(198,900
|
)
|
|
(170,767
|
)
|
||
|
|
2,108,601
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|
|
1,768,354
|
|
||
Purchased gas cost
|
|
|
|
|
||||
Distribution segment
|
|
1,190,811
|
|
|
908,442
|
|
||
Pipeline and storage segment
|
|
1,345
|
|
|
1,080
|
|
||
Intersegment eliminations
|
|
(198,279
|
)
|
|
(170,723
|
)
|
||
|
|
993,877
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|
|
738,799
|
|
||
Contribution margin
|
|
1,114,724
|
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|
1,029,555
|
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||
Operation and maintenance expense
|
|
290,640
|
|
|
257,177
|
|
||
Depreciation and amortization
|
|
177,755
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|
154,625
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|
||
Taxes, other than income
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|
135,780
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|
122,663
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||
Total operating expenses
|
|
604,175
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|
534,465
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||
Operating income
|
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510,549
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|
|
495,090
|
|
||
Miscellaneous expense
|
|
(2,288
|
)
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(161
|
)
|
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Interest charges
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|
58,813
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|
|
57,974
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|
||
Income from continuing operations before income taxes
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|
449,448
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|
|
436,955
|
|
||
Income tax expense
|
|
(43,676
|
)
|
|
160,905
|
|
||
Income from continuing operations
|
|
493,124
|
|
|
276,050
|
|
||
Income from discontinued operations, net of tax
|
|
—
|
|
|
10,994
|
|
||
Gain on sale of discontinued operations, net of tax
|
|
—
|
|
|
2,716
|
|
||
Net Income
|
|
$
|
493,124
|
|
|
$
|
289,760
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|
Basic and diluted earnings per share
|
|
|
|
|
||||
Income per share from continuing operations
|
|
$
|
4.47
|
|
|
$
|
2.61
|
|
Income per share from discontinued operations
|
|
—
|
|
|
0.13
|
|
||
Net income per share - basic and diluted
|
|
$
|
4.47
|
|
|
$
|
2.74
|
|
Cash dividends per share
|
|
$
|
0.97
|
|
|
$
|
0.90
|
|
Basic and diluted weighted average shares outstanding
|
|
110,135
|
|
|
105,610
|
|
|
|
|
|
|
||||
|
|
Six Months Ended
March 31 |
||||||
Summary Net Income by Segment (000s)
|
|
2018
|
|
2017
|
||||
Distribution
|
|
$
|
394,342
|
|
|
$
|
216,509
|
|
Pipeline and storage
|
|
98,782
|
|
|
59,541
|
|
||
Net income from continuing operations
|
|
493,124
|
|
|
276,050
|
|
||
Net income from discontinued operations
|
|
—
|
|
|
13,710
|
|
||
Net income
|
|
$
|
493,124
|
|
|
$
|
289,760
|
|
Condensed Balance Sheets
|
|
March 31,
|
|
September 30,
|
||||
(000s)
|
|
2018
|
|
2017
|
||||
Net property, plant and equipment
|
|
$
|
9,761,329
|
|
|
$
|
9,259,182
|
|
Cash and cash equivalents
|
|
71,074
|
|
|
26,409
|
|
||
Accounts receivable, net
|
|
407,134
|
|
|
222,263
|
|
||
Gas stored underground
|
|
89,265
|
|
|
184,653
|
|
||
Other current assets
|
|
55,263
|
|
|
106,321
|
|
||
Total current assets
|
|
622,736
|
|
|
539,646
|
|
||
Goodwill
|
|
730,132
|
|
|
730,132
|
|
||
Deferred charges and other assets
|
|
242,125
|
|
|
220,636
|
|
||
|
|
$
|
11,356,322
|
|
|
$
|
10,749,596
|
|
|
|
|
|
|
||||
Shareholders' equity
|
|
$
|
4,721,346
|
|
|
$
|
3,898,666
|
|
Long-term debt
|
|
2,617,892
|
|
|
3,067,045
|
|
||
Total capitalization
|
|
7,339,238
|
|
|
6,965,711
|
|
||
Accounts payable and accrued liabilities
|
|
230,823
|
|
|
233,050
|
|
||
Other current liabilities
|
|
538,702
|
|
|
332,648
|
|
||
Short-term debt
|
|
129,602
|
|
|
447,745
|
|
||
Current maturities of long-term debt
|
|
450,000
|
|
|
—
|
|
||
Total current liabilities
|
|
1,349,127
|
|
|
1,013,443
|
|
||
Deferred income taxes
|
|
1,107,036
|
|
|
1,878,699
|
|
||
Regulatory excess deferred taxes
|
|
737,798
|
|
|
—
|
|
||
Deferred credits and other liabilities
|
|
823,123
|
|
|
891,743
|
|
||
|
|
$
|
11,356,322
|
|
|
$
|
10,749,596
|
|
Condensed Statements of Cash Flows
|
|
Six Months Ended
March 31 |
||||||
(000s)
|
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
493,124
|
|
|
$
|
289,760
|
|
Depreciation and amortization
|
|
177,755
|
|
|
154,810
|
|
||
Deferred income taxes
|
|
116,023
|
|
|
148,657
|
|
||
One-time income tax benefit
|
|
(165,675
|
)
|
|
—
|
|
||
Gain on sale of discontinued operations
|
|
—
|
|
|
(12,931
|
)
|
||
Discontinued cash flow hedging for natural gas marketing commodity contracts
|
|
—
|
|
|
(10,579
|
)
|
||
Other
|
|
12,252
|
|
|
10,391
|
|
||
Changes in assets and liabilities
|
|
117,888
|
|
|
(28,105
|
)
|
||
Net cash provided by operating activities
|
|
751,367
|
|
|
552,003
|
|
||
Cash flows from investing activities
|
|
|
|
|
||||
Capital expenditures
|
|
(693,978
|
)
|
|
(559,385
|
)
|
||
Acquisition
|
|
—
|
|
|
(85,714
|
)
|
||
Proceeds from the sale of discontinued operations
|
|
3,000
|
|
|
133,560
|
|
||
Available-for-sale securities activities, net
|
|
(1,175
|
)
|
|
(8,918
|
)
|
||
Other, net
|
|
4,009
|
|
|
3,787
|
|
||
Net cash used in investing activities
|
|
(688,144
|
)
|
|
(516,670
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
||||
Net decrease in short-term debt
|
|
(318,143
|
)
|
|
(159,204
|
)
|
||
Proceeds from issuance of long-term debt, net of premium/discount
|
|
—
|
|
|
125,000
|
|
||
Net proceeds from equity offering
|
|
395,092
|
|
|
49,400
|
|
||
Issuance of common stock through stock purchase and employee retirement plans
|
|
11,902
|
|
|
16,984
|
|
||
Interest rate agreements cash collateral
|
|
—
|
|
|
25,670
|
|
||
Cash dividends paid
|
|
(105,891
|
)
|
|
(95,314
|
)
|
||
Other
|
|
(1,518
|
)
|
|
—
|
|
||
Net cash used in financing activities
|
|
(18,558
|
)
|
|
(37,464
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
|
44,665
|
|
|
(2,131
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
26,409
|
|
|
47,534
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
71,074
|
|
|
$
|
45,403
|
|
|
|
Three Months Ended
March 31 |
|
Six Months Ended
March 31 |
||||||||||||
Statistics
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Consolidated distribution throughput (MMcf as metered)
|
|
179,978
|
|
|
137,669
|
|
|
304,335
|
|
|
248,274
|
|
||||
Consolidated pipeline and storage transportation volumes (MMcf)
|
|
148,980
|
|
|
131,151
|
|
|
304,085
|
|
|
266,127
|
|
||||
Distribution meters in service
|
|
3,245,012
|
|
|
3,208,532
|
|
|
3,245,012
|
|
|
3,208,532
|
|
||||
Distribution average cost of gas
|
|
$
|
5.42
|
|
|
$
|
5.25
|
|
|
$
|
5.40
|
|
|
$
|
5.28
|
|