Atmos Energy Corp (ATO) Reports Solid Fiscal 2023 Results and Initiates Fiscal 2024 Guidance
Atmos Energy Corp (NYSE:ATO) reported a full-year earnings per diluted share of $6.10 and $0.80 for the fourth fiscal quarter.
Consolidated net income reached $885.9 million for the year, with capital expenditures totaling $2.8 billion.
ATO expects fiscal 2024 earnings per diluted share to be between $6.45 and $6.65, with capital expenditures approximating $2.9 billion.
The company's Board of Directors declared a quarterly dividend of $0.805 per common share, indicating an annual dividend of $3.22 for fiscal 2024.
On November 8, 2023, Atmos Energy Corp (NYSE:ATO) released its earnings report for the fiscal year ended September 30, 2023, showcasing robust financial performance and a positive outlook for the coming year. The company's earnings per diluted share stood at $6.10 for the year, with the fourth fiscal quarter contributing $0.80 per diluted share. Consolidated net income for the year was a strong $885.9 million, and the fourth fiscal quarter contributed $118.5 million to this total.
Fiscal Year Financial Highlights
ATO's consolidated operating income increased by $146.1 million to $1.1 billion for the fiscal year, driven by favorable rate outcomes, increased weather and consumption, and customer growth in the distribution segment. The distribution operating income rose by $88.1 million to $692.6 million, while the pipeline and storage operating income saw a $58.1 million increase to $374.5 million.
Capital expenditures for the year surged by $361.6 million to $2.8 billion, reflecting the company's commitment to system safety and reliability investments. Operating cash flow also saw a significant increase to $3.5 billion, compared to $977.6 million in the previous year, primarily due to the receipt of $2.02 billion related to gas costs incurred during Winter Storm Uri.
Balance Sheet and Cash Flow Statement
ATO's equity capitalization ratio improved to 61.5% at the end of the fiscal year, up from 53.6% the previous year. This was attributed to the repayment of Winter Storm Uri financing and equity issuances under forward equity agreements, despite the issuance of $800 million in senior notes.
The company generated a robust operating cash flow of $3.5 billion for the year, a significant increase from the prior year's $977.6 million. This increase was largely due to the receipt of funds related to Winter Storm Uri costs.
Outlook and Dividend Increase
Looking ahead to fiscal 2024, ATO anticipates earnings per diluted share to be in the range of $6.45 to $6.65. The company plans to continue its substantial capital expenditure program, expecting to spend approximately $2.9 billion. Reflecting confidence in its financial strength and commitment to shareholder returns, the Board of Directors has declared a quarterly dividend of $0.805 per common share, indicating an annual dividend of $3.22 for fiscal 2024, which is an 8.8% increase over the previous fiscal year.
ATO's President and CEO, Kevin Akers, highlighted the company's 40th anniversary and the successful execution of their strategy, stating,
This strategy, along with our employees' continued focus on our vision to be the safest provider of natural gas service continues to benefit our customers, our communities, and position us to continue delivering annual earnings per share growth in the six to eight percent range,"
Akers concluded.
Atmos Energy Corp (NYSE:ATO) remains focused on safety, reliability, and modernization of its natural gas distribution, transmission, and storage systems, positioning itself for sustained growth and shareholder value creation. The company will discuss these results in more detail during a conference call with financial analysts on November 9, 2023.
For more detailed financial information and the full earnings report, please visit www.atmosenergy.com.
Explore the complete 8-K earnings release (here) from Atmos Energy Corp for further details.
This article first appeared on GuruFocus.
