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 August 2, 2017 (furnished under Item 2.02)
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ATMOS ENERGY CORPORATION
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(Registrant)
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DATE: August 2, 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 August 2, 2017 (furnished under Item 2.02)
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News Release
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•
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Fiscal
2017
third
quarter consolidated net income was
$70.8 million
, or
$0.67
per diluted share, compared with consolidated net income of
$71.2 million
, or
$0.69
per diluted share in the prior-year quarter.
|
•
|
Fiscal
2017
third
quarter net income from continuing operations was
$70.8 million
, or
$0.67
per diluted share. In the prior-year quarter, net income from continuing operations was
$66.1 million
, or
$0.64
per diluted share.
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•
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The company now expects fiscal 2017 earnings from continuing operations to be in the middle of the tightened range of $3.55 to $3.63 per diluted share.
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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 $1.80, which represents a 7.1 percent increase over fiscal 2016.
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Statements of Income
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Three Months Ended
June 30 |
||||||
(000s except per share)
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2017
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2016
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Gross Profit:
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Distribution segment
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$
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296,293
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$
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277,336
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Pipeline and storage segment
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116,032
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114,293
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Intersegment eliminations
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—
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—
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Gross profit
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412,325
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391,629
|
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||
Operation and maintenance expense
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128,690
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131,388
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||
Depreciation and amortization
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80,023
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72,880
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Taxes, other than income
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62,948
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58,965
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Total operating expenses
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271,661
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263,233
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Operating income
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140,664
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128,396
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Miscellaneous income (expense)
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(289
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)
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1,118
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Interest charges
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28,498
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27,679
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Income from continuing operations before income taxes
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111,877
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101,835
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Income tax expense
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41,069
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35,692
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Income from continuing operations
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70,808
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66,143
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Income from discontinued operations, net of tax
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—
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5,050
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Net Income
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$
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70,808
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$
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71,193
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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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0.67
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$
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0.64
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Income per share from discontinued operations
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—
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0.05
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Net income per share - basic and diluted
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$
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0.67
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$
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0.69
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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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106,364
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103,750
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Three Months Ended
June 30 |
||||||
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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36,514
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$
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30,361
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Pipeline and storage
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34,294
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35,782
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Net income from continuing operations
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70,808
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66,143
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Net income from discontinued operations
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—
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5,050
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Net Income
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$
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70,808
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$
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71,193
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Statements of Income
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Nine Months Ended
June 30 |
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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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1,105,048
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$
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1,024,244
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Pipeline and Storage
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336,876
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314,496
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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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1,441,880
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1,338,740
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Operation and maintenance expense
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385,867
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379,073
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Depreciation and amortization
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234,648
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214,927
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Taxes, other than income
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185,611
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171,959
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Total operating expenses
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806,126
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765,959
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Operating income
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635,754
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572,781
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Miscellaneous expense
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(450
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)
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(90
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)
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Interest charges
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86,472
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84,775
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Income from continuing operations before income taxes
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548,832
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487,916
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Income tax expense
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201,974
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177,224
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Income from continuing operations
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346,858
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310,692
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Income from discontinued operations, net of tax
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10,994
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5,172
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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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360,568
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$
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315,864
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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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3.27
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$
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3.01
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Income per share from discontinued operations
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0.13
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0.05
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Net income per share - basic and diluted
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$
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3.40
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$
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3.06
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Cash dividends per share
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$
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1.35
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$
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1.26
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Basic and diluted weighted average shares outstanding
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105,862
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103,137
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Nine Months Ended
June 30 |
||||||
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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253,023
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$
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219,377
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Pipeline and Storage
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93,835
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91,315
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Net income from continuing operations
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346,858
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310,692
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Net income from discontinued operations
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13,710
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5,172
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Net income
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$
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360,568
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$
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315,864
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Condensed Balance Sheets
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June 30,
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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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8,924,381
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$
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8,268,606
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Cash and cash equivalents
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69,777
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47,534
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Accounts receivable, net
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250,224
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215,880
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Gas stored underground
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151,656
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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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62,725
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88,085
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Total current assets
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534,382
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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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310,339
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305,019
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$
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10,498,775
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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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3,901,710
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$
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3,463,059
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Long-term debt
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3,066,734
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2,188,779
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Total capitalization
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6,968,444
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5,651,838
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Accounts payable and accrued liabilities
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164,365
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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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322,721
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439,085
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Short-term debt
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258,573
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829,811
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Current maturities of long-term debt
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—
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250,000
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Total current liabilities
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745,659
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1,788,281
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Deferred income taxes
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1,853,564
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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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931,108
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967,398
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$
|
10,498,775
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$
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10,010,889
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Condensed Statements of Cash Flows
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Nine Months Ended
June 30 |
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(000s)
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2017
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2016
|
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Cash flows from operating activities
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Net income
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$
|
360,568
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$
|
315,864
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Depreciation and amortization
|
|
234,833
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|
|
216,670
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||
Deferred income taxes
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|
188,256
|
|
|
171,042
|
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Gain on sale of discontinued operations
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(12,931
|
)
|
|
—
|
|
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Discontinued cash flow hedging for natural gas marketing commodity contracts
|
|
(10,579
|
)
|
|
—
|
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Other
|
|
14,892
|
|
|
14,430
|
|
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Changes in assets and liabilities
|
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(29,478
|
)
|
|
(88,060
|
)
|
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Net cash provided by operating activities
|
|
745,561
|
|
|
629,946
|
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Cash flows from investing activities
|
|
|
|
|
||||
Capital expenditures
|
|
(812,148
|
)
|
|
(789,688
|
)
|
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Acquisition
|
|
(86,128
|
)
|
|
—
|
|
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Proceeds from the sale of discontinued operations
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140,253
|
|
|
—
|
|
||
Available-for-sale securities activities, net
|
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(14,329
|
)
|
|
558
|
|
||
Use tax refund
|
|
18,562
|
|
|
—
|
|
||
Other, net
|
|
6,435
|
|
|
5,731
|
|
||
Net cash used in investing activities
|
|
(747,355
|
)
|
|
(783,399
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
||||
Net increase (decrease) in short-term debt
|
|
(571,238
|
)
|
|
212,539
|
|
||
Proceeds from issuance of long-term debt, net of premium/discount
|
|
884,911
|
|
|
—
|
|
||
Net proceeds from equity offering
|
|
98,755
|
|
|
98,660
|
|
||
Issuance of common stock through stock purchase and employee retirement plans
|
|
22,673
|
|
|
26,500
|
|
||
Settlement of interest rate agreements
|
|
(36,996
|
)
|
|
—
|
|
||
Interest rate agreements cash collateral
|
|
25,670
|
|
|
(16,330
|
)
|
||
Repayment of long-term debt
|
|
(250,000
|
)
|
|
—
|
|
||
Cash dividends paid
|
|
(143,075
|
)
|
|
(130,363
|
)
|
||
Debt issuance costs
|
|
(6,663
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
|
24,037
|
|
|
191,006
|
|
||
Net increase in cash and cash equivalents
|
|
22,243
|
|
|
37,553
|
|
||
Cash and cash equivalents at beginning of period
|
|
47,534
|
|
|
28,653
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
69,777
|
|
|
$
|
66,206
|
|
|
|
Three Months Ended
June 30 |
|
Nine Months Ended
June 30 |
||||||||||||
Statistics
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Consolidated distribution throughput (MMcf as metered)
|
|
76,281
|
|
|
69,456
|
|
|
324,555
|
|
|
330,968
|
|
||||
Consolidated pipeline and storage transportation volumes (MMcf)
|
|
159,023
|
|
|
128,881
|
|
|
425,150
|
|
|
373,080
|
|
||||
Distribution meters in service
|
|
3,213,853
|
|
|
3,179,726
|
|
|
3,213,853
|
|
|
3,179,726
|
|
||||
Distribution average cost of gas
|
|
$
|
4.60
|
|
|
$
|
3.78
|
|
|
$
|
5.14
|
|
|
$
|
4.01
|
|