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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ATMOS ENERGY CORPORATION
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(Registrant)
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DATE:
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August 8, 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
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•
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Fiscal
2018
third
quarter consolidated net income was
$71.2 million
, or
$0.64
per diluted share, compared with consolidated net income of
$70.8 million
, or
$0.67
per diluted share in the prior-year quarter.
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•
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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 $1.94, which represents a 7.8% increase over fiscal 2017.
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Nine Months Ended June 30
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||||||||||
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2018
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2017
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Change
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||||||
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(In thousands, except per share data)
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||||||||||
Income from continuing operations
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$
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564,317
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$
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346,858
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$
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217,459
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TCJA non-cash income tax benefit
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165,522
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—
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165,522
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|||
Adjusted income from continuing operations
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$
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398,795
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$
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346,858
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$
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51,937
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Consolidated diluted EPS from continuing operations
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$
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5.09
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$
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3.27
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$
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1.82
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Diluted EPS from TCJA non-cash income tax benefit
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1.49
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—
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1.49
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Adjusted diluted EPS from continuing operations
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$
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3.60
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$
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3.27
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$
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0.33
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Statements of Income
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Three Months Ended
June 30 |
||||||
(000s except per share)
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2018
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2017
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||||
Operating revenues
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Distribution segment
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$
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535,488
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$
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494,060
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Pipeline and storage segment
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127,633
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117,283
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Intersegment eliminations
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(100,876
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)
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(84,842
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)
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562,245
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526,501
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Purchased gas cost
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Distribution segment
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230,887
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197,767
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Pipeline and storage segment
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561
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1,251
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Intersegment eliminations
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(100,562
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)
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(84,842
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)
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130,886
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114,176
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Contribution margin
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431,359
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412,325
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Operation and maintenance expense
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145,075
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128,690
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Depreciation and amortization
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90,671
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80,023
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Taxes, other than income
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72,620
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62,948
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Total operating expenses
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308,366
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271,661
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Operating income
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122,993
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140,664
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Miscellaneous expense
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(2,003
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)
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(289
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)
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Interest charges
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23,349
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28,498
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Income before income taxes
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97,641
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111,877
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Income tax expense
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26,448
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41,069
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Net income
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$
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71,193
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$
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70,808
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Basic and diluted net income per share
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$
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0.64
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$
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0.67
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Cash dividends per share
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$
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0.485
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$
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0.450
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Basic and diluted weighted average shares outstanding
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111,851
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106,364
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Three Months Ended
June 30 |
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Summary Net Income by Segment (000s)
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2018
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2017
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Distribution
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$
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35,344
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$
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36,514
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Pipeline and storage
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35,849
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34,294
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Net income
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$
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71,193
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$
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70,808
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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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2018
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2017
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Operating revenues
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Distribution segment
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$
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2,595,571
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$
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2,211,257
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Pipeline and storage segment
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375,051
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339,207
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Intersegment eliminations
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(299,776
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)
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(255,609
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)
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2,670,846
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2,294,855
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Purchased gas cost
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Distribution segment
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1,421,698
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1,106,209
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Pipeline and storage segment
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1,906
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2,331
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Intersegment eliminations
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(298,841
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)
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(255,565
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)
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1,124,763
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852,975
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Contribution margin
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1,546,083
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1,441,880
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Operation and maintenance expense
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435,715
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385,867
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Depreciation and amortization
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268,426
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234,648
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Taxes, other than income
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208,400
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185,611
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Total operating expenses
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912,541
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806,126
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Operating income
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633,542
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635,754
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Miscellaneous expense
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(4,291
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)
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(450
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)
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Interest charges
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82,162
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86,472
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Income from continuing operations before income taxes
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547,089
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548,832
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Income tax expense (benefit)
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(17,228
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)
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201,974
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Income from continuing operations
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564,317
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346,858
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Income from discontinued operations, net of tax
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—
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10,994
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Gain on sale of discontinued operations, net of tax
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—
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2,716
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Net income
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$
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564,317
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$
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360,568
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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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5.09
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$
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3.27
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Income per share from discontinued operations
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—
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0.13
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Net income per share - basic and diluted
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$
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5.09
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$
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3.40
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Cash dividends per share
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$
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1.455
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$
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1.350
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Basic and diluted weighted average shares outstanding
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110,707
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105,862
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||||
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Nine Months Ended
June 30 |
||||||
Summary Net Income by Segment (000s)
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2018
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|
2017
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Distribution
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$
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429,686
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$
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253,023
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Pipeline and storage
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134,631
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93,835
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Net income from continuing operations
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564,317
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346,858
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Net income from discontinued operations
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—
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13,710
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Net income
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$
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564,317
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$
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360,568
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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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2018
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2017
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Net property, plant and equipment
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$
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10,071,860
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$
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9,259,182
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Cash and cash equivalents
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20,930
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26,409
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Accounts receivable, net
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253,546
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222,263
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Gas stored underground
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126,010
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184,653
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Other current assets
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52,369
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106,321
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Total current assets
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452,855
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539,646
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Goodwill
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730,132
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730,132
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Deferred charges and other assets
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252,777
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220,636
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$
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11,507,624
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$
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10,749,596
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Shareholders' equity
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$
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4,759,552
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$
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3,898,666
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Long-term debt
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2,618,315
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3,067,045
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Total capitalization
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7,377,867
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6,965,711
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Accounts payable and accrued liabilities
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|
198,172
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|
233,050
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Other current liabilities
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|
573,012
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|
332,648
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Short-term debt
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244,777
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|
447,745
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Current maturities of long-term debt
|
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450,000
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—
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Total current liabilities
|
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1,465,961
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|
|
1,013,443
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Deferred income taxes
|
|
1,133,622
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|
|
1,878,699
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Regulatory excess deferred taxes
|
|
733,509
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—
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Deferred credits and other liabilities
|
|
796,665
|
|
|
891,743
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||
|
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$
|
11,507,624
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|
|
$
|
10,749,596
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|
Condensed Statements of Cash Flows
|
|
Nine Months Ended
June 30 |
||||||
(000s)
|
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
|
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Net income
|
|
$
|
564,317
|
|
|
$
|
360,568
|
|
Depreciation and amortization
|
|
268,426
|
|
|
234,833
|
|
||
Deferred income taxes
|
|
139,852
|
|
|
188,256
|
|
||
One-time income tax benefit
|
|
(165,522
|
)
|
|
—
|
|
||
Gain on sale of discontinued operations
|
|
—
|
|
|
(12,931
|
)
|
||
Discontinued cash flow hedging for natural gas marketing commodity contracts
|
|
—
|
|
|
(10,579
|
)
|
||
Other
|
|
18,007
|
|
|
14,892
|
|
||
Changes in assets and liabilities
|
|
210,216
|
|
|
(29,478
|
)
|
||
Net cash provided by operating activities
|
|
1,035,296
|
|
|
745,561
|
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Cash flows from investing activities
|
|
|
|
|
||||
Capital expenditures
|
|
(1,088,472
|
)
|
|
(812,148
|
)
|
||
Acquisition
|
|
—
|
|
|
(86,128
|
)
|
||
Proceeds from the sale of discontinued operations
|
|
3,000
|
|
|
140,253
|
|
||
Available-for-sale securities activities, net
|
|
(7,857
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)
|
|
(14,329
|
)
|
||
Use tax refund
|
|
—
|
|
|
18,562
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|
||
Other, net
|
|
6,105
|
|
|
6,435
|
|
||
Net cash used in investing activities
|
|
(1,087,224
|
)
|
|
(747,355
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
||||
Net decrease in short-term debt
|
|
(202,968
|
)
|
|
(571,238
|
)
|
||
Proceeds from issuance of long-term debt, net of premium/discount
|
|
—
|
|
|
884,911
|
|
||
Net proceeds from equity offering
|
|
395,092
|
|
|
98,755
|
|
||
Issuance of common stock through stock purchase and employee retirement plans
|
|
15,850
|
|
|
22,673
|
|
||
Settlement of interest rate agreements
|
|
—
|
|
|
(36,996
|
)
|
||
Interest rate agreements cash collateral
|
|
—
|
|
|
25,670
|
|
||
Repayment of long-term debt
|
|
—
|
|
|
(250,000
|
)
|
||
Cash dividends paid
|
|
(160,007
|
)
|
|
(143,075
|
)
|
||
Debt issuance costs
|
|
—
|
|
|
(6,663
|
)
|
||
Other
|
|
(1,518
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
|
46,449
|
|
|
24,037
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(5,479
|
)
|
|
22,243
|
|
||
Cash and cash equivalents at beginning of period
|
|
26,409
|
|
|
47,534
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
20,930
|
|
|
$
|
69,777
|
|
|
|
Three Months Ended
June 30 |
|
Nine Months Ended
June 30 |
||||||||||||
Statistics
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Consolidated distribution throughput (MMcf as metered)
|
|
82,448
|
|
|
76,281
|
|
|
386,783
|
|
|
324,555
|
|
||||
Consolidated pipeline and storage transportation volumes (MMcf)
|
|
180,371
|
|
|
159,023
|
|
|
484,456
|
|
|
425,150
|
|
||||
Distribution meters in service
|
|
3,249,780
|
|
|
3,213,853
|
|
|
3,249,780
|
|
|
3,213,853
|
|
||||
Distribution average cost of gas
|
|
$
|
4.68
|
|
|
$
|
4.60
|
|
|
$
|
5.27
|
|
|
$
|
5.14
|
|