Company: ATO
Filing Date: 2025-11-14
Form Type: 10-K
Source: 0000731802-25-000056
Chunk: 60

Company: ATMOS ENERGY CORP
Filing Date: 2025-11-14
Form: 10-K
Item: Item 7
Chunk 60
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 gas costs may adversely impact our accounts receivable collections, resulting in higher bad debt expense. This risk is currently mitigated by rate design that allows us to collect from our customers the gas cost portion of our bad debt expense on approximately 89 percent of our residential and commercial revenues. Additionally, higher gas costs may require us to increase borrowings under our credit facilities, resulting in higher interest expense. Finally, higher gas costs, as well as competitive factors in the industry and general economic conditions may cause customers to conserve or, in the case of industrial consumers, to use alternative energy sources. 

Review of Financial and Operating Results

Financial and operational highlights for our distribution segment for the fiscal years ended September 30, 2025, 2024, and 2023 are presented below.

27

 For the Fiscal Year Ended September 30 2025202420232025 vs. 20242024 vs. 2023 (In thousands, unless otherwise noted)Operating revenues$4,425,397 $3,915,141 $4,099,690 $510,256 $(184,549)Purchased gas cost1,854,323 1,620,515 2,061,920 233,808 (441,405)Operating expenses1,607,684 1,440,192 1,345,144 167,492 95,048 Operating income963,390 854,434 692,626 108,956 161,808 Other non-operating income33,578 30,106 24,988 3,472 5,118 Interest charges99,226 117,086 77,185 (17,860)39,901 Income before income taxes897,742 767,454 640,429 130,288 127,025 Income tax expense150,961 96,041 60,032 54,920 36,009 Net income$746,781 $671,413 $580,397 $75,368 $91,016 Consolidated distribution sales volumes — MMcf289,065 283,977 289,948 5,088 (5,971)Consolidated distribution transportation volumes — MMcf156,859 156,389 152,963 470 3,426 Total consolidated distribution throughput — MMcf445,924 440,366 442,911 5,558 (