Atmos Energy's quarterly profit rises on strength in gas distribution, pipelines
Atmos Energy reported a rise in third-quarter profit, driven by its distribution and pipeline segments. The distribution segment, serving 3.3 million customers across eight states, saw earnings increase by 6% to $70 million. The pipeline and storage unit earned $116 million, up 16% from last year. The company reported net income of $186.43 million, or $1.17 per share, compared to $165.5 million, or $1.08 per share, in the same quarter last year. Operating expenses rose to $662.4 million from $557.5 million a year earlier.
Aug 6 (Reuters) - Atmos Energy (ATO.N) reported a rise in third-quarter profit on Wednesday, as the natural gas utility benefited from contribution from both its distribution and pipeline and storage segments.
Atmos’ distribution segment delivers natural gas to about 3.3 million distribution customers in eight U.S. states. It also operates regulated utility operations in Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, Texas and Virginia.
U.S. natural gas utilities are seeing steady demand growth as record summer heat and surging power needs from data centers drive up electricity consumption, boosting gas-fired generation.
The U.S. Energy Information Administration estimates that power consumption will reach record highs this year, driven by growing electrification demands and an expansion in data centers fueled by artificial intelligence.
Atmos said quarterly earnings from its distribution segment rose 6% to $70 million, while its pipeline and storage unit earned $116 million, 16% higher than last year.
Its pipeline and storage segment is comprised primarily of the regulated pipeline and storage operations of the Atmos Pipeline-Texas division and its natural gas transmission operations in Louisiana.
The company, which also operates about 5,700 miles of transmission pipelines in Texas, reported that its operation and maintenance expenses rose to $662.4 million in the quarter ended June 30, compared with $557.5 million in the same period last year.
The Dallas, Texas-based company reported net income of $186.43 million, or $1.17 per share, for the quarter ended June 30, compared with $165.5 million, or $1.08 per share, last year.
