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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November 7, 2018
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By:
/s/ CHRISTOPHER T. FORSYTHE
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|
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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 consolidated net income was
$603.1 million
or
$5.43
per diluted share, compared with consolidated net income of
$396.4 million
, or
$3.73
per diluted share for the same period last year.
|
•
|
Adjusted income from continuing operations for fiscal
2018
, which excludes a one-time income tax benefit related to the Tax Cuts and Jobs Act of 2017 (the TCJA) of
$158.8 million
, or
$1.43
per diluted share, was
$444.3 million
, or
$4.00
per diluted share, compared with adjusted income from continuing operations of
$382.7 million
, or
$3.60
per diluted share in the prior year.
|
•
|
Capital expenditures were
$1.47 billion
for the year ended
September 30, 2018
, with approximately 85 percent of that spending related to system safety and reliability investments.
|
•
|
Atmos Energy expects fiscal 2019 earnings to be in the range of $4.20 to $4.35 per diluted share. Capital expenditures are expected to be in the range of $1.65 billion to $1.75 billion in fiscal 2019.
|
•
|
The company's Board of Directors has declared a quarterly dividend of $0.525 per common share. The indicated annual dividend for fiscal 2019 is $2.10, which represents an 8.2% increase over fiscal 2018.
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Three Months Ended September 30
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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
|
$
|
38,747
|
|
|
$
|
35,853
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|
|
$
|
2,894
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|
TCJA non-cash income tax expense
|
6,740
|
|
|
—
|
|
|
6,740
|
|
|||
Adjusted income from continuing operations
|
$
|
45,487
|
|
|
$
|
35,853
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$
|
9,634
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|
|
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|
||||||
Consolidated diluted EPS from continuing operations
|
$
|
0.35
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|
$
|
0.34
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$
|
0.01
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Diluted EPS from TCJA non-cash income tax expense
|
0.06
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—
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|
0.06
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|||
Adjusted diluted EPS from continuing operations
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$
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0.41
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$
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0.34
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$
|
0.07
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Year Ended September 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
|
$
|
603,064
|
|
|
$
|
382,711
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|
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$
|
220,353
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TCJA non-cash income tax benefit
|
(158,782
|
)
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—
|
|
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(158,782
|
)
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|||
Adjusted income from continuing operations
|
$
|
444,282
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$
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382,711
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$
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61,571
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||||||
Consolidated diluted EPS from continuing operations
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$
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5.43
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$
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3.60
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$
|
1.83
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Diluted EPS from TCJA non-cash income tax benefit
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(1.43
|
)
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—
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(1.43
|
)
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|||
Adjusted diluted EPS from continuing operations
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$
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4.00
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$
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3.60
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$
|
0.40
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|
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||||
Statements of Income
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Year Ended
September 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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3,003,047
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$
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2,649,175
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Pipeline and storage segment
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507,713
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457,030
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Intersegment eliminations
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(395,214
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)
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(346,470
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)
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3,115,546
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2,759,735
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Purchased gas cost
|
|
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||||
Distribution segment
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1,559,836
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1,269,456
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Pipeline and storage segment
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1,978
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2,506
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||
Intersegment eliminations
|
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(393,966
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)
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(346,426
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)
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||
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1,167,848
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925,536
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Contribution margin
|
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1,947,698
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1,834,199
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Operation and maintenance expense
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599,595
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546,798
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Depreciation and amortization
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361,083
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319,448
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Taxes, other than income
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263,886
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240,407
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Total operating expenses
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1,224,564
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1,106,653
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Operating income
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723,134
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727,546
|
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Miscellaneous expense
|
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(5,344
|
)
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(3,270
|
)
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||
Interest charges
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|
106,646
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|
120,182
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Income from continuing operations before income taxes
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|
611,144
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|
604,094
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Income tax expense
|
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8,080
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|
221,383
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||
Income from continuing operations
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|
603,064
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|
382,711
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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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$
|
603,064
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$
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396,421
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Basic and diluted earnings per share
|
|
|
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|
||||
Income per share from continuing operations
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$
|
5.43
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$
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3.60
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Income per share from discontinued operations
|
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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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5.43
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$
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3.73
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Cash dividends per share
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$
|
1.94
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|
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$
|
1.80
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Basic and diluted weighted average shares outstanding
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111,012
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106,100
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||||
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Year Ended
September 30 |
||||||
Summary Net Income by Segment (000s)
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2018
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|
2017
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||||
Distribution
|
|
$
|
442,966
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$
|
268,369
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Pipeline and storage
|
|
160,098
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|
114,342
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||
Net income from continuing operations
|
|
603,064
|
|
|
382,711
|
|
||
Net income from discontinued operations
|
|
—
|
|
|
13,710
|
|
||
Net income
|
|
$
|
603,064
|
|
|
$
|
396,421
|
|
|
|
|
|
|
||||
Statements of Income
|
|
Three Months Ended
September 30 |
||||||
(000s except per share)
|
|
2018
|
|
2017
|
||||
Operating revenues
|
|
|
|
|
||||
Distribution segment
|
|
$
|
407,476
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|
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$
|
437,918
|
|
Pipeline and storage segment
|
|
132,662
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|
|
117,823
|
|
||
Intersegment eliminations
|
|
(95,438
|
)
|
|
(90,861
|
)
|
||
|
|
444,700
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|
|
464,880
|
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||
Purchased gas cost
|
|
|
|
|
||||
Distribution segment
|
|
138,138
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|
|
163,247
|
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||
Pipeline and storage segment
|
|
72
|
|
|
175
|
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||
Intersegment eliminations
|
|
(95,125
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)
|
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(90,861
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)
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||
|
|
43,085
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|
72,561
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Contribution margin
|
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401,615
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|
|
392,319
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||
Operation and maintenance expense
|
|
163,880
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|
|
160,931
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||
Depreciation and amortization
|
|
92,657
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|
84,800
|
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||
Taxes, other than income
|
|
55,486
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|
|
54,796
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||
Total operating expenses
|
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312,023
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|
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300,527
|
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||
Operating income
|
|
89,592
|
|
|
91,792
|
|
||
Miscellaneous expense
|
|
(1,053
|
)
|
|
(2,820
|
)
|
||
Interest charges
|
|
24,484
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|
|
33,710
|
|
||
Income before income taxes
|
|
64,055
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|
|
55,262
|
|
||
Income tax expense
|
|
25,308
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|
|
19,409
|
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||
Net income
|
|
$
|
38,747
|
|
|
$
|
35,853
|
|
|
|
|
|
|
||||
Basic and diluted net income per share
|
|
$
|
0.35
|
|
|
$
|
0.34
|
|
Cash dividends per share
|
|
$
|
0.485
|
|
|
$
|
0.450
|
|
Basic and diluted weighted average shares outstanding
|
|
111,926
|
|
|
106,814
|
|
|
|
|
|
|
||||
|
|
Three Months Ended
September 30 |
||||||
Summary Net Income by Segment (000s)
|
|
2018
|
|
2017
|
||||
Distribution
|
|
$
|
13,280
|
|
|
$
|
15,346
|
|
Pipeline and storage
|
|
25,467
|
|
|
20,507
|
|
||
Net income
|
|
$
|
38,747
|
|
|
$
|
35,853
|
|
Condensed Balance Sheets
|
|
September 30,
|
|
September 30,
|
||||
(000s)
|
|
2018
|
|
2017
|
||||
Net property, plant and equipment
|
|
$
|
10,371,147
|
|
|
$
|
9,259,182
|
|
Cash and cash equivalents
|
|
13,771
|
|
|
26,409
|
|
||
Accounts receivable, net
|
|
253,295
|
|
|
222,263
|
|
||
Gas stored underground
|
|
165,732
|
|
|
184,653
|
|
||
Other current assets
|
|
46,055
|
|
|
106,321
|
|
||
Total current assets
|
|
478,853
|
|
|
539,646
|
|
||
Goodwill
|
|
730,419
|
|
|
730,132
|
|
||
Deferred charges and other assets
|
|
294,018
|
|
|
220,636
|
|
||
|
|
$
|
11,874,437
|
|
|
$
|
10,749,596
|
|
|
|
|
|
|
||||
Shareholders' equity
|
|
$
|
4,769,951
|
|
|
$
|
3,898,666
|
|
Long-term debt
|
|
2,493,665
|
|
|
3,067,045
|
|
||
Total capitalization
|
|
7,263,616
|
|
|
6,965,711
|
|
||
Accounts payable and accrued liabilities
|
|
217,283
|
|
|
233,050
|
|
||
Other current liabilities
|
|
547,068
|
|
|
332,648
|
|
||
Short-term debt
|
|
575,780
|
|
|
447,745
|
|
||
Current maturities of long-term debt
|
|
575,000
|
|
|
—
|
|
||
Total current liabilities
|
|
1,915,131
|
|
|
1,013,443
|
|
||
Deferred income taxes
|
|
1,154,067
|
|
|
1,878,699
|
|
||
Regulatory excess deferred taxes
|
|
739,670
|
|
|
—
|
|
||
Deferred credits and other liabilities
|
|
801,953
|
|
|
891,743
|
|
||
|
|
$
|
11,874,437
|
|
|
$
|
10,749,596
|
|
Condensed Statements of Cash Flows
|
|
Year Ended
September 30 |
||||||
(000s)
|
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
603,064
|
|
|
$
|
396,421
|
|
Depreciation and amortization
|
|
361,083
|
|
|
319,633
|
|
||
Deferred income taxes
|
|
158,271
|
|
|
227,183
|
|
||
One-time income tax benefit
|
|
(158,782
|
)
|
|
—
|
|
||
Gain on sale of discontinued operations
|
|
—
|
|
|
(12,931
|
)
|
||
Discontinued cash flow hedging for commodity contracts
|
|
—
|
|
|
(10,579
|
)
|
||
Other
|
|
26,165
|
|
|
20,630
|
|
||
Changes in assets and liabilities
|
|
134,861
|
|
|
(73,267
|
)
|
||
Net cash provided by operating activities
|
|
1,124,662
|
|
|
867,090
|
|
||
Cash flows from investing activities
|
|
|
|
|
||||
Capital expenditures
|
|
(1,467,591
|
)
|
|
(1,137,089
|
)
|
||
Acquisition
|
|
—
|
|
|
(86,128
|
)
|
||
Proceeds from the sale of discontinued operations
|
|
3,000
|
|
|
140,253
|
|
||
Available-for-sale securities activities, net
|
|
(8,325
|
)
|
|
(12,473
|
)
|
||
Use tax refund
|
|
790
|
|
|
29,790
|
|
||
Other, net
|
|
8,560
|
|
|
9,341
|
|
||
Net cash used in investing activities
|
|
(1,463,566
|
)
|
|
(1,056,306
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
||||
Net increase (decrease) in short-term debt
|
|
128,035
|
|
|
(382,066
|
)
|
||
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
|
|
19,563
|
|
|
26,523
|
|
||
Settlement of interest rate agreements
|
|
—
|
|
|
(36,996
|
)
|
||
Interest rate agreements cash collateral
|
|
—
|
|
|
25,670
|
|
||
Repayment of long-term debt
|
|
—
|
|
|
(250,000
|
)
|
||
Cash dividends paid
|
|
(214,906
|
)
|
|
(191,931
|
)
|
||
Debt issuance costs
|
|
—
|
|
|
(6,775
|
)
|
||
Other
|
|
(1,518
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
|
326,266
|
|
|
168,091
|
|
||
Net decrease in cash and cash equivalents
|
|
(12,638
|
)
|
|
(21,125
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
26,409
|
|
|
47,534
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
13,771
|
|
|
$
|
26,409
|
|
|
|
Three Months Ended
September 30 |
|
Year Ended
September 30 |
||||||||||||
Statistics
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Consolidated distribution throughput (MMcf as metered)
|
|
64,600
|
|
|
63,810
|
|
|
451,383
|
|
|
388,365
|
|
||||
Consolidated pipeline and storage transportation volumes (MMcf)
|
|
179,444
|
|
|
171,029
|
|
|
663,900
|
|
|
596,179
|
|
||||
Distribution meters in service
|
|
3,256,336
|
|
|
3,221,405
|
|
|
3,256,336
|
|
|
3,221,405
|
|
||||
Distribution average cost of gas
|
|
$
|
4.44
|
|
|
$
|
5.16
|
|
|
$
|
5.19
|
|
|
$
|
5.14
|
|