# EDGAR Filing Document

**Accession Number:** 0000731802
**File Stem:** 0000731802-23-000004
**Filing Date:** 2023-2
**Character Count:** 22078
**Document Hash:** 655c9a24950c24f64d8ead0ef3c48810
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000731802-23-000004.hdr.sgml**: 20230207

**ACCESSION NUMBER**: 0000731802-23-000004

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230207

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230207

**DATE AS OF CHANGE**: 20230207

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ATMOS ENERGY CORP
- **CENTRAL INDEX KEY:** 0000731802
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATURAL GAS DISTRIBUTION [4924]
- **IRS NUMBER:** 751743247
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-10042
- **FILM NUMBER:** 23595661

**BUSINESS ADDRESS:**
- **STREET 1:** 1800 THREE LINCOLN CTR
- **STREET 2:** 5430 LBJ FREEWAY
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75240
- **BUSINESS PHONE:** 9729349227

**MAIL ADDRESS:**
- **STREET 1:** 1800 THREE LINCOLN CTR
- **STREET 2:** 5430 LBJ FREEWAY
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75240

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ENERGAS CO
- **DATE OF NAME CHANGE:** 19881024

?xml version="1.0" ? ato-20230207

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 8-K** 

**Current Report Pursuant to Section 13 or**

**15(d) of the Securities Exchange Act of 1934** 

February 7, 2023

Date of Report (Date of earliest event reported)

ATMOS ENERGY CORPORATION

(Exact Name of Registrant as Specified in its Charter)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Texas | and | Virginia | 1-10042 | 75-1743247 |
| --------------------------------- | --------------------------------- | --------------------------------- | ------------------------ | ---------------------- |
| (State or Other Jurisdiction | (State or Other Jurisdiction | (State or Other Jurisdiction | (Commission File | (I.R.S. Employer |
| of Incorporation) | of Incorporation) | of Incorporation) | Number) | Identification No.) |

---

---

| | | |
|:---|:---|:---|
| 1800 Three Lincoln Centre | 1800 Three Lincoln Centre | |
| 5430 LBJ Freeway | 5430 LBJ Freeway | |
| Dallas | Texas | 75240 |
| ---------------------------------------------------- | ---------------------------------------------------- | ----------------- |
| (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Zip Code) |

---

(972) 934-9227

------------------------------

(Registrant's Telephone Number, Including Area Code)

Not Applicable

---------------------------

(Former Name or Former Address, if Changed Since Last Report)

---

| | | | |
|:---|:---|:---|:---|
| **Title of each class** | **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Common stock | No Par Value | ATO | New York Stock Exchange |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

------

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 2.02. &nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On Tuesday, February 7, 2023, Atmos Energy Corporation (the "Company") issued a news release in which it reported the Company's financial results for the first quarter of fiscal 2023, which ended December 31, 2022, and that certain of its officers would discuss such financial results in a conference call on Wednesday, February 8, 2023 at 9 a.m. Eastern Time. In the release, the Company also announced that the call would be webcast live and that slides for the webcast would be available on its website for all interested parties.

A copy of the news release is furnished as Exhibit 99.1. The information furnished in this Item 2.02 and in Exhibit 99.1 shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall such information be deemed to be incorporated by reference into any of the Company's filings under the Securities Act of 1933 or the Securities Exchange Act of 1934.

**Item 9.01. &nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits

---

| | |
|:---|:---|
| <u>Exhibit Number</u> | <u>Description</u> |
| 99.1 | <u>[News Release dated February 7, 2023 (furnished under Item 2.02)](ato20230207exhibit991.htm)</u> |
| 101.INS | XBRL Instance Document - the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase |
| 101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase |
| 104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | | ATMOS ENERGY CORPORATION |
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Registrant) |
| DATE: | February 7, 2023 | By: <u>/s/ CHRISTOPHER T. FORSYTHE</u>  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp; Christopher T. Forsythe |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp; Senior Vice President and |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp; Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![g528915g02g72a28.jpg](g528915g02g72a28.jpg)

**News Release**

**Analysts and Media Contact:**

**Dan Meziere (972) 855-3729** 

**Atmos Energy Corporation Reports Earnings for Fiscal 2023 First Quarter;**

**Affirms Fiscal 2023 Guidance**

DALLAS (February 7, 2023) - Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its first fiscal quarter ended December 31, 2022.

**Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Earnings per diluted share was $1.91 for the three months ended December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consolidated net income was $271.9 million for the three months ended December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital expenditures totaled $795.7 million for the three months ended December 31, 2022, with approximately 88 percent of capital spending related to system safety and reliability investments.

&nbsp;&nbsp;&nbsp;&nbsp;

**Outlook**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Earnings per diluted share for fiscal 2023 is expected to be in the range of $5.90 to $6.10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital expenditures are expected to approximate $2.7 billion in fiscal 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The company's Board of Directors has declared a quarterly dividend of $0.74 per common share. The indicated annual dividend for fiscal 2023 is $2.96, which represents an 8.8% increase over fiscal 2022.

"Our first quarter results, reflect the dedication, focus and effort of all 4,800 Atmos Energy employees as we continued modernizing our natural gas distribution, transmission, and storage systems on our journey to be the safest provider of natural gas services," said Kevin Akers, President and CEO of Atmos Energy. "We remain well positioned to achieve our fiscal 2023 earnings per share guidance," Akers concluded.

------

**Results for the Three Months Ended December 31, 2022**

Consolidated operating income increased $45.3 million to $321.2 million for the three months ended December 31, 2022, compared to $275.9 million in the prior year, primarily due to rate outcomes in both segments and customer growth in our distribution segment, partially offset by increased operation and maintenance and higher depreciation and property tax expenses due to increased capital investments.

Distribution operating income increased $41.3 million to $231.8 million for the three months ended December 31, 2022, compared with $190.5 million in the prior-year quarter, primarily due to a $57.5 million increase in rates, a $5.7 million decrease in refunds of excess deferred taxes to customers and customer growth of $2.4 million, partially offset by a $13.2 million increase in operation and maintenance expense driven primarily by pipeline system maintenance and increased administrative costs and a $16.0 million increase in depreciation and property tax expenses.

Pipeline and storage operating income increased $4.0 million to $89.4 million for the three months ended December 31, 2022, compared with $85.4 million in the prior year. Key operating drivers for this segment include a $21.0 million increase from our GRIP filing approved in fiscal 2022, partially offset by a $12.6 million increase in operation and maintenance expense driven primarily by system maintenance spending and a $4.4 million increase in depreciation and property tax expenses.

Capital expenditures increased $111.5 million to $795.7 million for the three months ended December 31, 2022, compared with $684.2 million in the prior year, due to increased system modernization and expansion spending.

For the three months ended December 31, 2022, the company generated operating cash flow of $188.9 million, compared to $61.8 million in the prior-year quarter. The year-over-year increase primarily reflects working capital changes, including the timing of payments for natural gas purchases and deferred gas cost recoveries and the positive effects of successful rate case outcomes achieved in the prior year.

Our equity capitalization ratio at December 31, 2022 decreased to 52.9%, from 53.6% at September 30, 2022, due to $220.0 million in equity issuances under our forward equity agreements, partially offset by the issuance of $500 million of 5.75% senior notes and $300 million of 5.45% senior notes in October 2022. Excluding the $2.2 billion of incremental financing issued to pay for the purchased gas costs incurred during Winter Storm Uri, our equity capitalization ratio was 60.0% and 61.3% at December 31, 2022 and September 30, 2022.

------

**Conference Call to be Webcast February 8, 2023**

Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2023 first quarter financial results on Wednesday, February 8, 2023, at 9:00 a.m. Eastern Time. The domestic telephone number is 877-407-3088 and the international telephone number is 201-389-0927. Kevin Akers, President and Chief Executive Officer, and Chris Forsythe, Senior Vice President and Chief Financial Officer, will participate in the conference call. The conference call will be webcast live on the Atmos Energy website at <u>www.atmosenergy.com</u>. A playback of the call will be available on the website later that day.

**Forward-Looking Statements**

The matters discussed in this news release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this news release are forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this news release or any of the company's other documents or oral presentations, the words "anticipate", "believe", "estimate", "expect", "forecast", "goal", "intend", "objective", "plan", "projection", "seek", "strategy" or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in this presentation, including the risks relating to regulatory trends and decisions, the company's ability to continue to access the credit and capital markets, and the other factors discussed in the company's reports filed with the Securities and Exchange Commission. These risks and uncertainties include the following: federal, state and local regulatory and political trends and decisions, including the impact of rate proceedings before various state regulatory commissions; increased federal regulatory oversight and potential penalties; possible increased federal, state and local regulation of the safety of our operations; possible significant costs and liabilities resulting from pipeline integrity and other similar programs and related repairs; the inherent hazards and risks involved in distributing, transporting and storing natural gas; the availability and accessibility of contracted gas supplies, interstate pipeline and/or storage services; increased competition from energy suppliers and alternative forms of energy; failure to attract and retain a qualified workforce; natural disasters, terrorist activities or other events and other risks and uncertainties discussed herein, all of which are difficult to predict and many of which are beyond our control; increased dependence on technology that may hinder the Company's business if such technologies fail; the threat of cyber-attacks or acts of cyber-terrorism that could disrupt our business operations and information technology systems or result in the loss or exposure of confidential or sensitive customer, employee or Company information; the impact of new cybersecurity compliance requirements; adverse weather conditions; the impact of greenhouse gas emissions or other legislation or regulations intended to address climate change; the impact of climate change; the capital-intensive nature of our business; our ability to continue to access the credit and capital markets to execute our business strategy; market risks beyond our control affecting our risk management activities, including commodity price volatility, counterparty performance or creditworthiness and interest rate risk; the concentration of our operations in Texas; the impact of adverse economic conditions on our customers; changes in the availability and price of natural gas; and increased costs of providing health care benefits, along with pension and postretirement health care benefits and increased funding requirements.

------

Accordingly, while we believe these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. Further, the company undertakes no obligation to update or revise any of our forward-looking statements whether as a result of new information, future events or otherwise.

**About Atmos Energy**

Atmos Energy Corporation, an S&P 500 company headquartered in Dallas, is the country's largest natural gas-only distributor. We safely deliver reliable, affordable, efficient and abundant natural gas to more than 3 million distribution customers in over 1,400 communities across eight states located primarily in the South. As part of our vision to be the safest provider of natural gas services, we are modernizing our business and infrastructure while continuing to invest in safety, innovation, environmental sustainability and our communities. Atmos Energy manages proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas. Find us online at <u>http://www.atmosenergy.com</u>, <u>Facebook</u>, <u>Twitter</u>, <u>Instagram</u> and <u>YouTube</u>.

This news release should be read in conjunction with the attached unaudited financial information.

------

**Atmos Energy Corporation**

**Financial Highlights** (Unaudited)

---

| | | |
|:---|:---|:---|
| <u>Statements of Income</u> | Three Months Ended December 31 | Three Months Ended December 31 |
| (000s except per share) | 2022 | 2021 |
| Operating revenues |  |  |
| &nbsp;&nbsp;&nbsp;Distribution segment | $1440426 | $972422 |
| &nbsp;&nbsp;&nbsp;Pipeline and storage segment | 186629 | 162918 |
| &nbsp;&nbsp;&nbsp;Intersegment eliminations | (143046) | (122554) |
|  | 1484009 | 1012786 |
| Purchased gas cost |  |  |
| &nbsp;&nbsp;&nbsp;Distribution segment | 881915 | 496799 |
| &nbsp;&nbsp;&nbsp;Pipeline and storage segment | (858) | (3411) |
| &nbsp;&nbsp;&nbsp;Intersegment eliminations | (142808) | (122225) |
|  | 738249 | 371163 |
| Operation and maintenance expense | 185016 | 159110 |
| Depreciation and amortization | 146020 | 127856 |
| Taxes, other than income | 93538 | 78796 |
| Operating income | 321186 | 275861 |
| Other non-operating income | 21191 | 8702 |
| Interest charges | 36760 | 19851 |
| Income before income taxes | 305617 | 264712 |
| Income tax expense | 33757 | 15503 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $271860 | $249209 |
| Basic net income per share | $1.92 | $1.86 |
| Diluted net income per share | $1.91 | $1.86 |
| Cash dividends per share | $0.74 | $0.68 |
| Basic weighted average shares outstanding | 141820 | 133682 |
| Diluted weighted average shares outstanding | 141937 | 133689 |

---

---

| | | |
|:---|:---|:---|
| | Three Months Ended December 31 | Three Months Ended December 31 |
| <u>Summary Net Income by Segment (000s)</u> | 2022 | 2021 |
| Distribution | $194468 | $179571 |
| Pipeline and storage | 77392 | 69638 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $271860 | $249209 |

---

------

**Atmos Energy Corporation**

**Financial Highlights, continued** (Unaudited)

---

| | | |
|:---|:---|:---|
| <u>Condensed Balance Sheets</u> | December 31, | September 30, |
| (000s) | 2022 | 2022 |
| Net property, plant and equipment | $17971668 | $17240239 |
| Cash and cash equivalents | 171597 | 51554 |
| Accounts receivable, net | 826416 | 363708 |
| Gas stored underground | 323678 | 357941 |
| Other current assets | 2306072 | 2274490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 3627763 | 3047693 |
| Goodwill | 731257 | 731257 |
| Deferred charges and other assets | 1035473 | 1173800 |
|  | $23366161 | $22192989 |
| Shareholders' equity | $9836274 | $9419091 |
| Long-term debt | 6551795 | 5760647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capitalization | 16388069 | 15179738 |
| Accounts payable and accrued liabilities | 574723 | 496019 |
| Other current liabilities | 755687 | 720157 |
| Short-term debt |  | 184967 |
| Current maturities of long-term debt | 2201484 | 2201457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 3531894 | 3602600 |
| Deferred income taxes | 2075596 | 1999505 |
| Regulatory excess deferred taxes | 345799 | 385213 |
| Deferred credits and other liabilities | 1024803 | 1025933 |
|  | $23366161 | $22192989 |

---

------

**Atmos Energy Corporation**

**Financial Highlights, continued** (Unaudited)

---

| | | |
|:---|:---|:---|
| <u>Condensed Statements of Cash Flows</u> | Three Months Ended December 31 | Three Months Ended December 31 |
| (000s) | 2022 | 2021 |
| **Cash flows from operating activities** |  |  |
| Net income | $271860 | $249209 |
| Depreciation and amortization | 146020 | 127856 |
| Deferred income taxes | 29693 | 11813 |
| Other | (17508) | (12689) |
| Changes in other assets and liabilities | (241165) | (314365) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 188900 | 61824 |
| **Cash flows from investing activities** |  |  |
| Capital expenditures | (795660) | (684180) |
| Debt and equity securities activities, net | (2472) | 2374 |
| Other, net | 5621 | 2058 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (792511) | (679748) |
| **Cash flows from financing activities** |  |  |
| Net decrease in short-term debt | (184967) |  |
| Proceeds from issuance of long-term debt, net of premium/discount | 797258 | 596142 |
| Net proceeds from equity issuances | 220000 | 261943 |
| Issuance of common stock through stock purchase and employee retirement plans | 3779 | 3918 |
| Cash dividends paid | (104552) | (90411) |
| Debt issuance costs | (7864) | (6386) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 723654 | 765206 |
| Net increase in cash and cash equivalents | 120043 | 147282 |
| Cash and cash equivalents at beginning of period | 51554 | 116723 |
| Cash and cash equivalents at end of period | $171597 | $264005 |

---

---

| | | |
|:---|:---|:---|
| | Three Months Ended December 31 | Three Months Ended December 31 |
| <u>Statistics</u> | 2022 | 2021 |
| Consolidated distribution throughput (MMcf as metered) | 140678 | 108142 |
| Consolidated pipeline and storage transportation volumes (MMcf) | 142076 | 136067 |
| Distribution meters in service | 3460006 | 3412929 |
| Distribution average cost of gas | $8.81 | $7.14 |

---

###