Atmos Energy Corp. (ATO, Financial) filed Quarterly Report for the period ended 2009-06-30.
Atmos Energy Corporation distributes and sells natural gas to residential commercial industrial agricultural and other customers. Atmos operates through five divisions in cities towns and communities in service areas located in Colorado Georgia Illinois Iowa Kansas Kentucky Louisiana Missouri South Carolina Tennessee Texas and Virginia. The Company has entered into an agreement to sell all of its natural gas utility operations in South Carolina. The Company also transports natural gas for others through its distribution system. Atmos Energy Corp. has a market cap of $2.55 billion; its shares were traded at around $27.69 with a P/E ratio of 13.1 and P/S ratio of 0.4. The dividend yield of Atmos Energy Corp. stocks is 4.8%. Atmos Energy Corp. had an annual average earning growth of 2.7% over the past 10 years.
with a $25 million unsecured committed credit facility. After entering into these new facilities, we currently have a total of approximately $1.3 billion available to us under four committed credit facilities. As a result of these developments and our continued successful financial performance, Standard & Poors Corporation (S&P) upgraded our credit rating from BBB to BBB+ in December 2008 and Moodys Investors Service (Moodys) upgraded the credit rating on our senior long-term debt from Baa3 to Baa2 and our commercial paper from P-3 to P-2 in May 2009. These ratings upgrades should improve our ability to access the short-term capital markets to satisfy our liquidity requirements on more economical terms in the future.
Challenging economic times have also impacted most of our business segments. The impact of the economic downturn is most apparent in a general decline in throughput. Our natural gas distribution segment has experienced a year-over-year four percent decrease in consolidated throughput, primarily associated with lower residential, commercial and industrial consumption. Declines in the demand for natural gas as a result of idle production and plant closures have contributed to a seven percent year-over-year decrease in consolidated throughput in our regulated transmission and storage segment and a five percent year-over-year decrease in consolidated sales volumes in our natural gas marketing segment. However, recent improvements in rate design in our natural gas distribution segment and the ability to earn higher per-unit margins in our regulated transmission and storage and natural gas marketing segments has more than offset the decline in throughput and sales volumes. Additionally, reduced demand for natural gas has resulted in lower natural gas prices, which has contributed significantly to the increase in our operating cash flow from $417 million for the nine months ended June 30, 2008 to $825 million for the nine months ended June 30, 2009.
The seasonality of our distribution business typically results in a loss in our fiscal third quarter. However, we reported net income of $2.0 million, or $0.02 per diluted share for the three months ended June 30, 2009 compared with a net loss of $6.6 million, or $0.07 per diluted share in the prior-year quarter. The quarter-over-quarter improvement reflects higher gross profit in our regulated transmission and storage and natural gas marketing segments combined with lower consolidated operation and maintenance expense, which more than offset lower natural gas distribution margins and a $3.3 million charge to impair certain available-for-sale investments.
For the first nine months of fiscal 2009, net income increased 16 percent to $206.9 million, or $2.26 per diluted share. Regulated operations contributed 85 percent of our net income during this period with our nonregulated operations contributing the remaining 15 percent. Results for the nine months ended June 30, 2009 include the favorable impact of a one-time tax benefit of $11.3 million, or $0.12 per diluted share and the unfavorable impact of a $5.4 million charge, or $0.04 per diluted share, to impair certain available-for-sale investments. Additionally, results for the nine-month period ended June 30, 2009 reflect increased gross profit across all of our business segments, partially offset by higher depreciation expense, pipeline maintenance and employee costs and interest expense.
Read the The complete Report
Atmos Energy Corporation distributes and sells natural gas to residential commercial industrial agricultural and other customers. Atmos operates through five divisions in cities towns and communities in service areas located in Colorado Georgia Illinois Iowa Kansas Kentucky Louisiana Missouri South Carolina Tennessee Texas and Virginia. The Company has entered into an agreement to sell all of its natural gas utility operations in South Carolina. The Company also transports natural gas for others through its distribution system. Atmos Energy Corp. has a market cap of $2.55 billion; its shares were traded at around $27.69 with a P/E ratio of 13.1 and P/S ratio of 0.4. The dividend yield of Atmos Energy Corp. stocks is 4.8%. Atmos Energy Corp. had an annual average earning growth of 2.7% over the past 10 years.
Highlight of Business Operations:
The tightening of the credit markets has made it more difficult and more expensive for us to access the capital markets. However, during the fiscal year, we have undertaken several steps to improve our financial position. In March 2009, we successfully completed an offering of $450 million 8.5% senior notes, and used most of the proceeds in April 2009 to redeem $400 million of senior notes that were scheduled to mature in October 2009. Additionally, we enhanced our liquidity sources in various ways. In October 2008, we replaced our former $300 million 364-day committed credit facility with a new 364-day $212.5 million committed credit facility. Additionally, we converted AEMs former $580 million uncommitted credit facility to a 364-day $375 million committed credit facility. This facility was subsequently increased to $450 million in April 2009. Finally, in April 2009 we replaced an expiring $18 million unsecured committed credit facilitywith a $25 million unsecured committed credit facility. After entering into these new facilities, we currently have a total of approximately $1.3 billion available to us under four committed credit facilities. As a result of these developments and our continued successful financial performance, Standard & Poors Corporation (S&P) upgraded our credit rating from BBB to BBB+ in December 2008 and Moodys Investors Service (Moodys) upgraded the credit rating on our senior long-term debt from Baa3 to Baa2 and our commercial paper from P-3 to P-2 in May 2009. These ratings upgrades should improve our ability to access the short-term capital markets to satisfy our liquidity requirements on more economical terms in the future.
Challenging economic times have also impacted most of our business segments. The impact of the economic downturn is most apparent in a general decline in throughput. Our natural gas distribution segment has experienced a year-over-year four percent decrease in consolidated throughput, primarily associated with lower residential, commercial and industrial consumption. Declines in the demand for natural gas as a result of idle production and plant closures have contributed to a seven percent year-over-year decrease in consolidated throughput in our regulated transmission and storage segment and a five percent year-over-year decrease in consolidated sales volumes in our natural gas marketing segment. However, recent improvements in rate design in our natural gas distribution segment and the ability to earn higher per-unit margins in our regulated transmission and storage and natural gas marketing segments has more than offset the decline in throughput and sales volumes. Additionally, reduced demand for natural gas has resulted in lower natural gas prices, which has contributed significantly to the increase in our operating cash flow from $417 million for the nine months ended June 30, 2008 to $825 million for the nine months ended June 30, 2009.
The seasonality of our distribution business typically results in a loss in our fiscal third quarter. However, we reported net income of $2.0 million, or $0.02 per diluted share for the three months ended June 30, 2009 compared with a net loss of $6.6 million, or $0.07 per diluted share in the prior-year quarter. The quarter-over-quarter improvement reflects higher gross profit in our regulated transmission and storage and natural gas marketing segments combined with lower consolidated operation and maintenance expense, which more than offset lower natural gas distribution margins and a $3.3 million charge to impair certain available-for-sale investments.
For the first nine months of fiscal 2009, net income increased 16 percent to $206.9 million, or $2.26 per diluted share. Regulated operations contributed 85 percent of our net income during this period with our nonregulated operations contributing the remaining 15 percent. Results for the nine months ended June 30, 2009 include the favorable impact of a one-time tax benefit of $11.3 million, or $0.12 per diluted share and the unfavorable impact of a $5.4 million charge, or $0.04 per diluted share, to impair certain available-for-sale investments. Additionally, results for the nine-month period ended June 30, 2009 reflect increased gross profit across all of our business segments, partially offset by higher depreciation expense, pipeline maintenance and employee costs and interest expense.
Read the The complete Report
