Property, plant and equipment (USD, thousands)

Less accumulated depreciation and amortization (USD, thousands)

Net property, plant and equipment (USD, thousands)

Cash and cash equivalents (USD, thousands)

Restricted cash and cash equivalents (USD, thousands)

Cash and cash equivalents and restricted cash and cash equivalents (USD, thousands)

Accounts receivable, net (USD, thousands)

Gas stored underground (USD, thousands)

Other current assets (USD, thousands)

Total current assets (USD, thousands)

Securitized intangible asset, net (USD, thousands)

Goodwill (USD, thousands)

Deferred charges and other assets (USD, thousands)

Total Assets (USD, thousands)

Common stock (USD, thousands)

Additional paid-in capital (USD, thousands)

Accumulated other comprehensive income (USD, thousands)

Retained earnings (USD, thousands)

Shareholders’ equity (USD, thousands)

Long-term debt, net (USD, thousands)

Securitized long-term debt (USD, thousands)

Total capitalization (USD, thousands)

Accounts payable and accrued liabilities (USD, thousands)

Other current liabilities (USD, thousands)

Current maturities of long-term debt (USD, thousands)

Current maturities of securitized long-term debt (USD, thousands)

Total current liabilities (USD, thousands)

Deferred income taxes (USD, thousands)

Regulatory excess deferred taxes (USD, thousands)

Regulatory cost of removal obligation (USD, thousands)

Deferred credits and other liabilities (USD, thousands)

Total Liabilities and Shareholders' Equity (USD, thousands)

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Net income (USD, thousands)

Depreciation and amortization expense (USD, thousands)

Other adjustments to net income (USD, thousands)

Net assets / liabilities from risk management activities (USD, thousands)

Net change in other operating assets and liabilities (USD, thousands)

Net cash provided by operating activities (USD, thousands)

Capital expenditures (USD, thousands)

Debt and equity securities activities, net (USD, thousands)

Other investing activities, net (USD, thousands)

Net cash used in investing activities (USD, thousands)

Net decrease in short-term debt (USD, thousands)

Net proceeds from equity issuances (USD, thousands)

Issuance of common stock through stock purchase and employee retirement plans (USD, thousands)

Proceeds from issuance of long-term debt (USD, thousands)

Cash dividends paid (USD, thousands)

Debt issuance costs (USD, thousands)

Net cash provided by financing activities (USD, thousands)

Net increase in cash and cash equivalents and restricted cash and cash equivalents (USD, thousands)

Stock-based compensation (USD, thousands)

Amortization of debt issuance costs (USD, thousands)

Equity component of AFUDC (USD, thousands)

Repayment of long-term debt (USD, thousands)

Repayment of securitized long-term debt by AEK (USD, thousands)

Other financing activities, net (USD, thousands)

Cash and cash equivalents and restricted cash and cash equivalents at beginning of period (USD, thousands)

Cash and cash equivalents and restricted cash and cash equivalents at end of period (USD, thousands)

5b4599a3d2bb1b68ec3b758f6a5760385ef082aaed69db24168a6996bce7e0eb

The documents indicate that the Purchased Gas Cost for Q3 2024 was **negative (−2,593.00 thousand USD)**.  **[0000731802-24-000023_ato-20240630.htm:4]**  However, they do not explicitly provide detailed reasons for this negative amount. One document does explain that there was a significant reduction in Purchased Gas Cost for Atmos Energy’s distribution segment in Q3 2024 compared to Q3 2023, and it mentions a lower average cost of gas per Mcf sold as part of a broader trend.  **[0000731802-24-000023_ato-20240630.htm:35]** **[0000731802-24-000023_ato-20240630.htm:36]**  Still, these details are focused on the cost reduction magnitude rather than explaining why the amount itself appears negative.

Why was Purchased Gas Cost negative in Q3 2024?

The **Q2 2024 spike in Operating Revenues** was driven by two main factors. In the **distribution segment**, revenues increased by **$88,971 thousand** compared to Q2 2023, primarily due to a **$90.6 million rise in rate adjustments**, along with additional contributions from a **$10.7 million increase in net consumption** and a **$6.5 million boost from residential customer growth and industrial load**.  **[0000731802-24-000013_ato-20240331.htm:34]**  Additionally, in the **pipeline and storage segment**, revenues increased by **$39,063 thousand** due to enhanced rate adjustments from a recent rate case, coupled with a **$7.1 million uplift from through-system activities**.  **[0000731802-24-000013_ato-20240331.htm:41]** 

What drove the spike in Operating Revenues in Q2 2024?

The drop in Q3 2024 operating income was influenced by offsetting expense increases that outweighed several positive factors. In Q3 2024, while the distribution segment saw improvements from a **$30.6 million** increase in rate adjustments and a **$5.3 million** boost from residential customer growth, these gains were partially offset by a **$15.1 million** increase in depreciation expense and a **$14.8 million** rise in operation and maintenance costs. Similar offsetting pressures are noted in the pipeline and storage segment, where increases were tempered by higher expense items. These expense upticks, in aggregate, contributed to the sharp drop in overall operating income in Q3 2024.  **[0000731802-24-000023_ato-20240630.htm:35]** 

Why did Operating Income drop sharply in Q3 2024?

The strong rise in Net Income in Q2 2024 was driven by **positive rate outcomes** (linked to safety and reliability spending) and **reduced bad debt expense**, along with **favorable legislative changes** that lowered Texas property tax expenses by **$14.7 million**. Additionally, the increase benefited from **rate increases totaling $192 million** in operating segments, further supported by **residential and commercial customer growth combined with an extra $12 million** from higher industrial load, as well as **an $8 million increase in revenues in the Pipeline & Storage segment**.  **[0000731802-24-000013_ato-20240331.htm:4]** **[0000731802-24-000013_ato-20240331.htm:32]** **[ATO_3388070_3]** 

What contributed to the strong rise in Net Income in Q2 2024?

The **operating income boost** in **FY 2024** was primarily driven by improvements across two segments. In the **Distribution Segment**, a **23.4% increase** was achieved through a **$219.2 million** rise in rate adjustments in the Mid-Tex Division, a **$24.8 million** uplift related to residential customer growth and increased industrial load, as well as a **$10.6 million** reduction in bad debt expense.  **[0000731802-24-000030_ato-20240930.htm:38]**  In the **Pipeline and Storage Segment**, there was a **33.8% increase** driven by a **$68.4 million** improvement from rate adjustments linked to GRIP filings and a rate case, a **$39.0 million** net boost from through-system activities, a **$27.8 million** decrease in refunds of excess deferred taxes, and a **$14.5 million** benefit from higher capacity contracted by tariff-based customers due to increased peak day demand.  **[0000731802-24-000030_ato-20240930.htm:42]** 

What factors helped boost Operating Income in FY 2024?

71dc37a69dd1e0fb1b7538db95025f18ed9bd3f153b052be493d2f0d529f3dc1

Operating Revenues (USD, thousands)

Purchased Gas Cost (USD, thousands)

Operation and Maintenance Expense (USD, thousands)

Depreciation and Amortization Expense (USD, thousands)

Taxes, Other than Income (USD, thousands)

Operating Income (USD, thousands)

Other Non-Operating Income (USD, thousands)

Interest Charges (USD, thousands)

Income Before Income Taxes (USD, thousands)

Income Tax Expense (USD, thousands)

Net Income (USD, thousands)

ab7bfd7eb795e1f75d21596bd789b8efc394b8e540907c026bb4a77edac5c69b

a9c630d8698c5b70aa09b77a0c501df981365e666d2f0afd4be01bd791d3cdb4

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from / Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

3c68ee44b23176fe675ee5031c96dacadea740ff2c00cc16786fcd78c1bcc12b

Total Revenue [USD, Thousands]

Cost of Goods Sold (COGS) [USD, Thousands]

SG&A [USD, Thousands]

R&D [USD, Thousands]

D&A [USD, Thousands]

Interest Expense [USD, Thousands]

Operating Income (EBIT) [USD, Thousands]

Net Income [USD, Thousands]

EPS - Basic [USD, Units]

EPS - Diluted [USD, Units]

4e233554d54391d3d84f7a95fe187ea910d92431d1a32bdec54ff7287bee5246

b347c2eda05bf5350d7139c5914fce13d6f83180194e0a19b9b1f774bc1a6bcb

8874e529a055dd36addb5b1825369b735e7511f501bcd2d5667fb40eb936976b

ATMOS ENERGY (ATO)

Financials