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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99.1
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News Release dated May 3, 2017 (furnished under Item 2.02)
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ATMOS ENERGY CORPORATION
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(Registrant)
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DATE: May 3, 2017
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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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Exhibit Number
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Description
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99.1
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News Release dated May 3, 2017 (furnished under Item 2.02)
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News Release
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•
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Fiscal
2017
second quarter consolidated net income was
$164.7 million
, or
$1.55
per diluted share, compared with consolidated net income of
$141.8 million
, or
$1.38
per diluted share in the prior-year quarter.
|
•
|
Fiscal
2017
second quarter net income from continuing operations was
$162.0 million
, or
$1.52
per diluted share. In the prior-year quarter, net income from continuing operations was
$143.0 million
, or
$1.39
per diluted share, and the net loss from discontinued operations was
$1.2 million
, or
$0.01
per diluted share.
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•
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The company recognized a net gain on the sale of discontinued operations of
$2.7 million
, or
$0.03
per diluted share in the current-year quarter, upon completion of the sale of Atmos Energy Marketing, LLC in January 2017.
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•
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The company's Board of Directors has declared a quarterly dividend of
$0.45
per common share. The indicated annual dividend for fiscal
2017
is $1.80, which represents a 7.1 percent increase over fiscal 2016.
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Statements of Income
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Three Months Ended
March 31 |
||||||
(000s except per share)
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2017
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2016
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||||
Gross Profit:
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|
||||
Distribution segment
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$
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449,445
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$
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411,456
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Pipeline and storage segment
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111,247
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101,228
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||
Intersegment eliminations
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—
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—
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Gross profit
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560,692
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512,684
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||
Operation and maintenance expense
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132,239
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127,857
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Depreciation and amortization
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77,667
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71,391
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Taxes, other than income
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65,614
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61,780
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Total operating expenses
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275,520
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261,028
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Operating income
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285,172
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251,656
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Miscellaneous income (expense)
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|
833
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(329
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)
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Interest charges
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26,944
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27,559
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Income from continuing operations before income taxes
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259,061
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223,768
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Income tax expense
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97,049
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80,765
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Income from continuing operations
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162,012
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143,003
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Loss from discontinued operations, net of tax
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—
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(1,193
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)
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Gain on sale of discontinued operations, net of tax
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2,716
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—
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Net Income
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$
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164,728
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$
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141,810
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Basic and diluted net income per share
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Income per share from continuing operations
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$
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1.52
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$
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1.39
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Income (loss) per share from discontinued operations
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0.03
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(0.01
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)
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Net income per share - basic and diluted
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$
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1.55
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$
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1.38
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Cash dividends per share
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$
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0.45
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$
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0.42
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Basic and diluted weighted average shares outstanding
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105,935
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102,946
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Three Months Ended
March 31 |
||||||
Summary Net Income (Loss) by Segment (000s)
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2017
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2016
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Distribution
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$
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131,145
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$
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115,080
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Pipeline and storage
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30,867
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27,923
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Net income from continuing operations
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162,012
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143,003
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Net income from discontinued operations
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2,716
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(1,193
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)
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Net Income
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$
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164,728
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$
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141,810
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Statements of Income
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Six Months Ended
March 31 |
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(000s except per share)
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2017
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2016
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Gross Profit:
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Distribution
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$
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808,755
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$
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746,908
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Pipeline and Storage
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220,844
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200,203
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Intersegment eliminations
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(44
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)
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—
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Gross profit
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1,029,555
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947,111
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Operation and maintenance expense
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257,177
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247,685
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Depreciation and amortization
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154,625
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142,047
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Taxes, other than income
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122,663
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112,994
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Total operating expenses
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534,465
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502,726
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Operating income
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495,090
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444,385
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Miscellaneous expense
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(161
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)
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(1,208
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)
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Interest charges
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57,974
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57,096
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Income from continuing operations before income taxes
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436,955
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386,081
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Income tax expense
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160,905
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141,532
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Income from continuing operations
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276,050
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244,549
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Income from discontinued operations, net of tax
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10,994
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122
|
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Gain on sale of discontinued operations, net of tax
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2,716
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—
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Net Income
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$
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289,760
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$
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244,671
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Basic and diluted earnings per share
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Income per share from continuing operations
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$
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2.61
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$
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2.38
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Income per share from discontinued operations
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0.13
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—
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Net income per share - basic and diluted
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$
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2.74
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$
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2.38
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Cash dividends per share
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$
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0.90
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$
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0.84
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Basic and diluted weighted average shares outstanding
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105,610
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102,837
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Six Months Ended
March 31 |
||||||
Summary Net Income by Segment (000s)
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2017
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|
2016
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Distribution
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$
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216,509
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$
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189,016
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Pipeline and Storage
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59,541
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55,533
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Net income from continuing operations
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276,050
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244,549
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Net income from discontinued operations
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13,710
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|
122
|
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Net income
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$
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289,760
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$
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244,671
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Condensed Balance Sheets
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March 31,
|
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September 30,
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||||
(000s)
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2017
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2016
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||||
Net property, plant and equipment
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$
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8,738,487
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$
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8,268,606
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Cash and cash equivalents
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45,403
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47,534
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Accounts receivable, net
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336,637
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215,880
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Gas stored underground
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120,026
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179,070
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Current assets of disposal group classified as held for sale
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—
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151,117
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Other current assets
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61,018
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88,085
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Total current assets
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563,084
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681,686
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Goodwill
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729,673
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726,962
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Noncurrent assets of disposal group classified as held for sale
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—
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28,616
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Deferred charges and other assets
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330,222
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305,019
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$
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10,361,466
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#160;
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$
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10,010,889
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Shareholders' equity
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$
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3,834,864
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$
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3,463,059
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Long-term debt
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2,314,620
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2,188,779
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Total capitalization
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6,149,484
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5,651,838
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Accounts payable and accrued liabilities
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185,212
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196,485
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Current liabilities of disposal group classified as held for sale
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—
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72,900
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Other current liabilities
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390,253
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439,085
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Short-term debt
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670,607
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829,811
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Current maturities of long-term debt
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250,000
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250,000
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Total current liabilities
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1,496,072
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1,788,281
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Deferred income taxes
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1,810,160
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1,603,056
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Noncurrent liabilities of disposal group classified as held for sale
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—
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|
316
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Deferred credits and other liabilities
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905,750
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|
|
967,398
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$
|
10,361,466
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$
|
10,010,889
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Condensed Statements of Cash Flows
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Six Months Ended
March 31 |
||||||
(000s)
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2017
|
|
2016
|
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Cash flows from operating activities
|
|
|
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|
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Net income
|
|
$
|
289,760
|
|
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$
|
244,671
|
|
Depreciation and amortization
|
|
154,810
|
|
|
143,211
|
|
||
Deferred income taxes
|
|
148,657
|
|
|
132,456
|
|
||
Gain on sale of discontinued operations
|
|
(12,931
|
)
|
|
—
|
|
||
Discontinued cash flow hedging for natural gas marketing commodity contracts
|
|
(10,579
|
)
|
|
—
|
|
||
Other
|
|
10,391
|
|
|
8,771
|
|
||
Changes in assets and liabilities
|
|
(28,105
|
)
|
|
(76,154
|
)
|
||
Net cash provided by operating activities
|
|
552,003
|
|
|
452,955
|
|
||
Cash flows from investing activities
|
|
|
|
|
||||
Capital expenditures
|
|
(559,385
|
)
|
|
(536,004
|
)
|
||
Acquisition
|
|
(85,714
|
)
|
|
—
|
|
||
Proceeds from the sale of discontinued operations
|
|
133,560
|
|
|
—
|
|
||
Available-for-sale securities activities, net
|
|
(8,918
|
)
|
|
(2,117
|
)
|
||
Other, net
|
|
3,787
|
|
|
4,597
|
|
||
Net cash used in investing activities
|
|
(516,670
|
)
|
|
(533,524
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)
|
||
Cash flows from financing activities
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|
|
|
|
||||
Net increase (decrease) in short-term debt
|
|
(159,204
|
)
|
|
169,002
|
|
||
Proceeds from issuance of long-term debt, net of discount
|
|
125,000
|
|
|
—
|
|
||
Net proceeds from equity offering
|
|
49,400
|
|
|
—
|
|
||
Issuance of common stock through stock purchase and employee retirement plans
|
|
16,984
|
|
|
17,641
|
|
||
Interest rate agreements cash collateral
|
|
25,670
|
|
|
—
|
|
||
Cash dividends paid
|
|
(95,314
|
)
|
|
(86,809
|
)
|
||
Net cash provided by (used in) financing activities
|
|
(37,464
|
)
|
|
99,834
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(2,131
|
)
|
|
19,265
|
|
||
Cash and cash equivalents at beginning of period
|
|
47,534
|
|
|
28,653
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
45,403
|
|
|
$
|
47,918
|
|
|
|
Three Months Ended
March 31 |
|
Six Months Ended
March 31 |
||||||||||||
Statistics
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Consolidated distribution throughput (MMcf as metered)
|
|
137,669
|
|
|
157,047
|
|
|
248,274
|
|
|
261,512
|
|
||||
Consolidated pipeline and storage transportation volumes (MMcf)
|
|
131,151
|
|
|
115,040
|
|
|
266,127
|
|
|
244,199
|
|
||||
Distribution meters in service
|
|
3,208,532
|
|
|
3,176,716
|
|
|
3,208,532
|
|
|
3,176,716
|
|
||||
Distribution average cost of gas
|
|
$
|
5.25
|
|
|
$
|
3.87
|
|
|
$
|
5.28
|
|
|
$
|
4.05
|
|