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Atmos Energy Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 5, 2011 04:23PM
Atmos Energy Corp. (ATO) filed Quarterly Report for the period ended 2011-03-31. Atmos Energy Corp. has a market cap of $3.1 billion; its shares were traded at around $34.22 with a P/E ratio of 14.5 and P/S ratio of 0.7. The dividend yield of Atmos Energy Corp. stocks is 3.9%. Atmos Energy Corp. had an annual average earning growth of 6% over the past 10 years.
Highlight of Business Operations:
We reported net income of $132.2 million, or $1.45 per diluted share for the three months ended March 31, 2011 compared with net income of $114.1 million, or $1.22 per diluted share in the prior-year quarter. Unrealized losses reduced net income by $2.1 million, or $0.02 per diluted share for the three months ended March 31, 2011, compared with net unrealized losses of $25.5 million, or $0.27 per diluted share for the prior-year quarter. In addition, net income for the second quarter includes the impact of several one-time items totaling $11.1 million, or $0.12 per diluted share related to the following pre-tax amounts:
Excluding the impact of unrealized margins and one-time items, diluted earnings per share decreased from $1.44 in the prior-year quarter to $1.35 in the current-year quarter, primarily due to decreased asset optimization margins in our nonregulated segment and a decline of 11 percent in consolidated throughput in our natural gas distribution segment.
We reported net income of $206.2 million, or $2.26 per diluted share for the six months ended March 31, 2011 compared with net income of $207.5 million, or $2.22 per diluted share in the prior-year period. Unrealized losses reduced net income by $1.7 million, or $0.02 per diluted share for the six months ended March 31, 2011. Regulated operations contributed 99 percent of our net income during this period with our nonregulated operations contributing the remaining 1 percent. The primary driver in the year-over-year decrease in net income was decreased asset optimization margins in our nonregulated segment and a decline of 11 percent in consolidated throughput in our natural gas distribution segment.
During the six months ended March 31, 2011, we executed on our strategy to streamline our credit facilities. In October 2010, we replaced our $200 million 364-day revolving credit agreement prior to its expiration with a $200 million 180-day revolving credit agreement, which expired in April 2011. As planned, we did not replace or extend this agreement. Additionally, in December 2010, we replaced Atmos Energy Marketings (AEM) $450 million 364-day revolving credit facility with a $200 million three-year facility with an accordion feature that could increase AEMs borrowing capacity to $500 million. Finally, on May 2, 2011, we replaced our five-year $566.7 million unsecured credit facility, due to expire in December 2011, with a five-year $750 million unsecured credit facility that contains an accordion feature that could increase our borrowing capacity to $1.0 billion. After giving effect to these changes, we now have $975 million of liquidity available to us from our commercial paper program and three committed credit facilities and have reduced our financing costs. We believe this availability provides sufficient liquidity to fund our working capital needs.
Stocks Discussed: ATO,