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Atmos Energy Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 9, 2012 05:23PM
Atmos Energy Corp. (ATO) filed Quarterly Report for the period ended 2012-06-30. Atmos Energy Corporation has a market cap of $3.26 billion; its shares were traded at around $36.39 with a P/E ratio of 18.1 and P/S ratio of 0.8. The dividend yield of Atmos Energy Corporation stocks is 3.8%. Atmos Energy Corporation had an annual average earning growth of 5.4% over the past 10 years.
Highlight of Business Operations:net loss of $0.6 million or $0.01 per diluted share in the prior year. Excluding the impact of unrealized margins and one-time items that occurred in the prior-year quarter, diluted earnings per share increased $0.27 compared to the prior-year quarter. The quarter-over-quarter improvement reflects higher gross profit in our regulated transmission and storage segment due to increases approved under the Gas Reliability Infrastructure Program and in our nonregulated segment due to increased asset optimization, combined with lower consolidated operation and maintenance expense, which more than offset lower natural gas distribution margins. We reported net income from discontinued operations associated with the sale of our Missouri, Illinois and Iowa service areas of $1.0 million and $0.9 million, or $0.01 per diluted share, for the three months ended June 30, 2012 and 2011.
Our year-to-date results were unfavorably impacted by substantially warmer winter weather and an abundance of natural gas supply. The impact of these conditions was most significantly realized in our nonregulated operations, which experienced a $12.4 million nine-month period-over-period decrease in net income, excluding the impact of one-time items and unrealized margins. However, increased earnings in our regulated transmission and storage segment, primarily as a result of an improved rate design implemented in the third quarter of the prior fiscal year, more than offset the decline experienced in our nonregulated segment. Results in our natural gas distribution segment, excluding the impact of one-time items were flat compared to the prior year, despite a nine percent decrease in throughput largely attributable to warmer than normal weather.
The $13.5 million increase in regulated transmission and storage gross profit compared to the prior-year quarter was primarily a result of the GRIP filings approved by the RRC during fiscal 2011 and 2012. During fiscal 2011, the Commission approved the Atmos Pipeline Texas GRIP filing with an annual operating income increase of $12.6 million that went into effect in the fiscal fourth quarter. On April 10, 2012, the RRC approved the Atmos Pipeline Texas GRIP filing with an annual operating income increase of $14.7 million that went into effect with bills rendered on and after April 10, 2012.
The $24.3 million increase in regulated transmission and storage gross profit compared to the prior-year period was primarily a result of the previously discussed rate design changes approved in the rate case in the prior year. Therefore, despite an eight percent decrease in throughput to our Mid-Tex Division, we experienced a 30 percent increase in gross profit from Mid-Tex transportation.
Realized margins for gas delivery, storage and transportation services and other services were $13.7 million during the three months ended June 30, 2012 compared with $16.9 million for the prior-year quarter. The decrease primarily reflects a 10 percent decrease in consolidated sales volumes due to lower demand from industrial customers and lower deliveries to power generation customers due to milder weather compared to the prior-year quarter.
Stocks Discussed: ATO,