Atmos Energy Corporation

Atmos Energy reported fiscal 2026 year-to-date net income of $1.2 billion, or $7.33 per diluted share, and said that EPS was up 14.5% versus the prior-year period. Year-to-date results included $132 million, or $0.63 per share, from Texas House Bill 4384. Rate increases in the operating segments totaled $227 million, operating income rose $41 million from residential and commercial customer growth and higher customer load, and APT through-system revenues net of Rider REV increased about $34 million, or $0.16. Consolidated O&M decreased $14 million year to date, though fiscal 2026 O&M is now expected to be $875 million to $885 million. Management reaffirmed full-year EPS guidance of $8.40 to $8.50 and said fiscal 2026 capital expenditures remain on track at approximately $4.2 billion.

Kevin Akers emphasized customer and system growth, safety, and Texas market strength. He highlighted nearly 51,000 new customers over the last 12 months, 600 commercial additions in the third quarter, 12 industrial customers year to date, and several APT infrastructure projects aimed at reliability and capacity around the DFW area. His tone was constructive and operationally focused, with continued emphasis on affordability, customer service, and long-term system investment.

Chris Forsythe walked through the main drivers of year-to-date performance: $132 million from House Bill 4384, $227 million of rate increases, $41 million of operating income from customer growth and load, and a $34 million increase in APT through-system revenues net of Rider REV. He said spreads captured during the first nine months averaged $4.66 versus $1.77 a year ago, but noted that spreads narrowed significantly in June as more takeaway capacity came online sooner than expected. He also said equity capitalization at June 30 was 60%, there was no short-term debt outstanding, liquidity was $4.6 billion, and about $937 million of forward sale proceeds should cover the remainder of fiscal 2026 equity needs and much of fiscal 2027.

Analysts focused heavily on APT/Waha spreads, whether the company still expects the second-half uplift it had previously discussed, and whether fiscal 2026 strength could carry into 2027. Management said APT’s third-quarter performance was in line with expectations, but the contribution is now likely toward the lower end of the prior $0.08 to $0.12 range because new takeaway capacity came online earlier than expected. On 2027, management said fiscal 2026 is a step-change year from the rule implementation, and they expect growth to normalize toward a 6% to 8% EPS growth framework off the current guidance range.