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: November 8, 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
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•
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Fiscal
2017
consolidated net income was
$396.4 million
, or
$3.73
per diluted share, compared with consolidated net income of
$350.1 million
, or
$3.38
per diluted share in the prior year.
|
•
|
Fiscal 2017 net income from continuing operations was
$382.7 million
or
$3.60
per diluted share, compared with net income from continuing operations of
$345.5 million
, or
$3.33
per diluted share for the same period last year.
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•
|
Fiscal 2017 net income from discontinued operations was $13.7 million, or
$0.13
per diluted share, compared with net income from discontinued operations of
$4.6 million
, or
$0.05
per diluted share in the prior year.
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•
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Capital expenditures were
$1.14 billion
for the year ended
September 30, 2017
, with approximately 80 percent of that spending related to system safety and reliability investments.
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•
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Atmos Energy expects fiscal
2018
earnings to be in the range of $3.75 to $3.95 per diluted share. Capital expenditures are expected to be in the range of $1.3 billion to $1.4 billion in fiscal 2018.
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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 $1.94, which represents a 7.8 percent increase over fiscal 2017.
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Statements of Income
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Year Ended
September 30 |
||||||
(000s except per share)
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2017
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2016
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||||
Gross Profit:
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||||
Distribution
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$
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1,379,719
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$
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1,281,202
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Pipeline and storage
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454,524
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427,254
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||
Intersegment eliminations
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(44
|
)
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—
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Gross profit
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1,834,199
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1,708,456
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Operation and maintenance expense
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546,798
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538,592
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Depreciation and amortization
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319,448
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290,791
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Taxes, other than income
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240,407
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221,843
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Total operating expenses
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1,106,653
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1,051,226
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Operating income
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727,546
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657,230
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Miscellaneous expense
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(3,270
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)
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(234
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)
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Interest charges
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120,182
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114,812
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Income from continuing operations before income taxes
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604,094
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542,184
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Income tax expense
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221,383
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196,642
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Income from continuing operations
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382,711
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345,542
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Income from discontinued operations, net of tax
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10,994
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4,562
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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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396,421
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$
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350,104
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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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3.60
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$
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3.33
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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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3.73
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$
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3.38
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Cash dividends per share
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$
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1.80
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$
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1.68
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Basic and diluted weighted average shares outstanding
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106,100
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103,524
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Year Ended
September 30 |
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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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268,369
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$
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233,830
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Pipeline and storage
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114,342
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111,712
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Net income from continuing operations
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382,711
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345,542
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Net income from discontinued operations
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13,710
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4,562
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Net income
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$
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396,421
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$
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350,104
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Statements of Income
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Three Months Ended
September 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 segment
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$
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274,671
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$
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256,958
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Pipeline and storage segment
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117,648
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112,758
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Intersegment eliminations
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—
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—
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Gross profit
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392,319
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369,716
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Operation and maintenance expense
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160,931
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159,519
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Depreciation and amortization
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84,800
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75,864
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Taxes, other than income
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54,796
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49,884
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Total operating expenses
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300,527
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285,267
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Operating income
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91,792
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84,449
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Miscellaneous expense
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(2,820
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)
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(144
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)
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Interest charges
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33,710
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30,037
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Income from continuing operations before income taxes
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55,262
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54,268
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Income tax expense
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19,409
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19,418
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Income from continuing operations
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35,853
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34,850
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Loss from discontinued operations, net of tax
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—
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(610
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)
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Net Income
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$
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35,853
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$
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34,240
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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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0.34
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$
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0.33
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Income per share from discontinued operations
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—
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—
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Net income per share - basic and diluted
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$
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0.34
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$
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0.33
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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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106,814
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104,687
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Three Months Ended
September 30 |
||||||
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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15,346
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$
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14,453
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Pipeline and storage
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20,507
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20,397
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Net income from continuing operations
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35,853
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34,850
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Net loss from discontinued operations
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—
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(610
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)
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Net Income
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$
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35,853
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$
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34,240
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Condensed Balance Sheets
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September 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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9,259,182
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$
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8,268,606
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Cash and cash equivalents
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26,409
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47,534
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Accounts receivable, net
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222,263
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215,880
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Gas stored underground
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184,653
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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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106,321
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88,085
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Total current assets
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539,646
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681,686
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Goodwill
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730,132
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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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220,636
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305,019
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$
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10,749,596
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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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3,898,666
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$
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3,463,059
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Long-term debt
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3,067,045
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2,188,779
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Total capitalization
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6,965,711
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5,651,838
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Accounts payable and accrued liabilities
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233,050
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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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332,648
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439,085
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Short-term debt
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447,745
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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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1,013,443
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1,788,281
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Deferred income taxes
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1,878,699
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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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891,743
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967,398
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$
|
10,749,596
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$
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10,010,889
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Condensed Statements of Cash Flows
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Year Ended
September 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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|
|
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|
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Net income
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$
|
396,421
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$
|
350,104
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Depreciation and amortization
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|
319,633
|
|
|
293,096
|
|
||
Deferred income taxes
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|
227,183
|
|
|
193,556
|
|
||
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
|
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(10,579
|
)
|
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—
|
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Other
|
|
20,630
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|
|
21,446
|
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Changes in assets and liabilities
|
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(73,267
|
)
|
|
(63,212
|
)
|
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Net cash provided by operating activities
|
|
867,090
|
|
|
794,990
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Cash flows from investing activities
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|
|
|
|
||||
Capital expenditures
|
|
(1,137,089
|
)
|
|
(1,086,950
|
)
|
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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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(12,473
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)
|
|
758
|
|
||
Use tax refund
|
|
29,790
|
|
|
—
|
|
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Other, net
|
|
9,341
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|
|
6,460
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|
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Net cash used in investing activities
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|
(1,056,306
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)
|
|
(1,079,732
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)
|
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Cash flows from financing activities
|
|
|
|
|
||||
Net increase (decrease) in short-term debt
|
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(382,066
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)
|
|
371,884
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|
||
Proceeds from issuance of long-term debt, net of premium/discount
|
|
884,911
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|
|
—
|
|
||
Net proceeds from equity offering
|
|
98,755
|
|
|
98,574
|
|
||
Issuance of common stock through stock purchase and employee retirement plans
|
|
26,523
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|
|
34,278
|
|
||
Settlement of interest rate agreements
|
|
(36,996
|
)
|
|
—
|
|
||
Interest rate agreements cash collateral
|
|
25,670
|
|
|
(25,670
|
)
|
||
Repayment of long-term debt
|
|
(250,000
|
)
|
|
—
|
|
||
Cash dividends paid
|
|
(191,931
|
)
|
|
(175,126
|
)
|
||
Debt issuance costs
|
|
(6,775
|
)
|
|
(317
|
)
|
||
Net cash provided by financing activities
|
|
168,091
|
|
|
303,623
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(21,125
|
)
|
|
18,881
|
|
||
Cash and cash equivalents at beginning of period
|
|
47,534
|
|
|
28,653
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
26,409
|
|
|
$
|
47,534
|
|
|
|
Three Months Ended
September 30 |
|
Year Ended
September 30 |
||||||||||||
Statistics
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Consolidated distribution throughput (MMcf as metered)
|
|
63,810
|
|
|
61,060
|
|
|
388,365
|
|
|
392,028
|
|
||||
Consolidated pipeline and storage transportation volumes (MMcf)
|
|
171,029
|
|
|
132,223
|
|
|
596,179
|
|
|
505,303
|
|
||||
Distribution meters in service
|
|
3,221,405
|
|
|
3,185,865
|
|
|
3,221,405
|
|
|
3,185,865
|
|
||||
Distribution average cost of gas
|
|
$
|
5.16
|
|
|
$
|
4.72
|
|
|
$
|
5.14
|
|
|
$
|
4.09
|
|