Company: ATO
Filing Date: 2025-11-14
Form Type: 10-K
Source: 0000731802-25-000056
Chunk: 61

Company: ATMOS ENERGY CORP
Filing Date: 2025-11-14
Form: 10-K
Item: Item 7
Chunk 61
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2,545)Consolidated distribution average cost of gas per Mcf sold$6.41 $5.71 $7.11 $0.70 $(1.40)

Fiscal year ended September 30, 2025 compared with fiscal year ended September 30, 2024 

Operating income for our distribution segment increased 12.8 percent. Key drivers for the change in operating income include:

•a $184.1 million increase in rate adjustments, primarily in our Mid-Tex Division.

•a $26.7 million increase related to residential customer growth, primarily in our Mid-Tex Division, and increased industrial load.

•a $46.3 million decrease in refunds of excess deferred taxes to customers, which is substantially offset in income tax expense.

Partially offset by:

•a $78.0 million increase in depreciation expense and property taxes associated with increased capital investments.

•a $32.6 million increase in employee-related costs primarily due to an increase in headcount to support company growth.

•an $18.6 million increase in system monitoring, line locating, and other compliance-related activities.

•a $17.8 million increase in bad debt expense due to a regulatory change in Mississippi in the first quarter of fiscal 2024 which significantly reduced bad debt expense in fiscal 2024, as discussed in Note 6 to the consolidated financial statements.

Additionally, our distribution segment's fiscal 2025 results were favorably impacted by $18.5 million as a result of Texas legislation that became effective during the third quarter of fiscal 2025 related to infrastructure spending.

The fiscal year ended September 30, 2024 compared with fiscal year ended September 30, 2023 for our distribution segment is described in Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.

The following table shows our operating income by distribution division, in order of total rate base, for the fiscal years ended September 30, 2025, 2024, and 2023. The presentation of our distribution operating income is included for financial reporting purposes and may not be appropriate for ratemaking purposes.

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 For the Fiscal Year Ended September 30 2025202420232025 vs. 20242024 vs. 2023 (In thousands)Mid-Tex$532,570 $464,616 $345,545