Atmos Energy's $29 billion plan comes with a growing share count
The gas utility expects profit and dividends to rise. Its new funding plan helps explain why total earnings are growing faster than earnings per share.
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Atmos Energy Corporation
Atmos Energy news and analysis covering regulated gas earnings, capital investment, equity and debt financing, dividends and cash flow.
- Ticker
- ATO
- Exchange
- XNYS
- SEC CIK
- 0000731802
Atmos Energy distributes natural gas to about 3.4 million customers across eight states, with a large Texas presence. Its regulated pipeline and storage business supports gas delivery and transportation. Shares trade on the New York Stock Exchange under ATO. Its fiscal year ends September 30.
Annual operating history
| Measure | Fiscal 2025 | Fiscal 2026 |
|---|---|---|
| Net income, GAAP | $1,199 | $1,427 |
| Diluted EPS, GAAP | $7.46 | $8.49 |
| Operating income | $1,560.0 | $1,859.3 |
| Capital spending | $3,561.4 | $4,173.8 |
Fiscal 2026 EPS was within August's reaffirmed $8.40 to $8.50 range. Capital spending was close to the $4.2 billion forecast, with 88% allocated to safety and reliability.
Rate adjustments were major earnings drivers. The operating-income bridge also includes $109 million of infrastructure-related costs deferred across the distribution and pipeline units under Texas rules. That contribution reflects when costs enter earnings.
New annual guidance and five-year plan
For fiscal 2027, Atmos forecasts net income of $1.61 billion to $1.63 billion, EPS of $9.05 to $9.25 and capital spending of about $4.5 billion. Expected average diluted shares increase from roughly 168 million to 176 million to 178 million. Interest expense is forecast at $210 million to $220 million versus about $153 million in fiscal 2026.
The fiscal 2027 to 2031 plan includes approximately $29 billion of capital spending and $17 billion of additional long-term financing through debt and equity. It targets 6% to 8% annual EPS growth and 2031 EPS of $12.35 to $12.55. The prior September framework ran through 2030, so the spending totals cover different horizons.
The new declared quarterly dividend is $1.09. The indicated annual rate for fiscal 2027 is $4.36, compared with $4.00 in fiscal 2026.
Current liquidity and financing
September 30 cash was about $28 million. The company's roughly $3.8 billion of available liquidity also includes proceeds available under forward equity agreements and unused facilities.
Outstanding forward equity agreements represented $870.9 million of available proceeds and about 5.6 million shares. Gross credit facilities totaled $3.1 billion, with about $220 million drawn and $5.6 million of letters of credit.
On October 9, Atmos completed a $700 million issue of 6% senior notes due November 15, 2036. Net proceeds were approximately $691.4 million. The notes are an addition after the September balance-sheet date.
Latest detailed cash-flow statement
| Measure | 2025 | 2026 |
|---|---|---|
| Operating cash flow | $1,701.3 | $1,671.5 |
| Cash capital spending | $2,597.8 | $3,076.3 |
In those nine months, net cash from equity issuance was $941.7 million and cash dividends paid were $490.7 million. June long-term debt carrying value was $10,251.3 million, including finance leases and excluding $72.6 million of separate securitization debt. These balances predate the September liquidity figures and October bond issue.
The key measures to track are the timing of regulatory cost recovery, financing costs and the growth of EPS as the asset base and number of shares expand.
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