ATO

In recent days, analysts highlighted that Atmos Energy, ONE Gas, and MDU Resources are set to benefit from rising natural gas demand and ongoing infrastructure investments, supported by disciplined capital spending plans and modest upgrades to earnings estimates. This renewed focus on sector-wide infrastructure investment and a firmer earnings outlook has reinforced investor confidence in ONE Gas despite aging networks and competition from renewables. Now we’ll examine how this improved earnings outlook tied to infrastructure spending could reshape ONE Gas’s broader investment narrative for investors. Find 49 companies with promising cash flow potential yet trading below their fair value. To own ONE Gas, you need to believe regulated natural gas distribution across its core regions can justify sustained infrastructure spending and support stable earnings over time. The recent analyst upgrades to earnings estimates appear supportive but do not materially change the near term balance between the key catalyst of constructive infrastructure-driven earnings and the ongoing risk that high capital needs outpace timely regulatory recovery. The most relevant recent announcement alongside this sector news is ONE Gas’s Q2 2026 result, where net income and EPS increased year over year despite lower sales. For many investors, that combination of earnings resilience and continuing capital investment is central to the thesis that infrastructure spending can still translate into acceptable returns, provided regulators remain supportive and cost pressures are contained. But investors should also be aware that if capital spending for safety and growth keeps rising faster than regulators allow recovery, then ... Read the full narrative on ONE Gas (it's free!) ONE Gas’ narrative projects $2.6 billion revenue and $354.9 million earnings by 2029. Uncover how ONE Gas' forecasts yield a $90.22 fair value, a 12% upside to its current price. Simply Wall St Community members currently offer just one fair value estimate of US$68.09 per share, reminding you that individual views can differ sharply from market pricing. You can weigh that against the sector’s improved earnings outlook tied to infrastructure investment and consider how sustained high capital expenditure needs might ultimately affect ONE Gas’s ability to convert that spending into shareholder value. Explore another fair value estimate on ONE Gas - why the stock might be worth 15% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your ONE Gas research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free ONE Gas research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ONE Gas' overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: AI is about to change healthcare. These 40 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Uncover the next big thing with 22 elite penny stocks that balance risk and reward. We've uncovered the 12 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OGS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 10 a.m. ET Vice President of Investor Relations and Treasurer - Daniel Meziere President and Chief Executive Officer - Kevin Akers Senior Vice President and Chief Financial Officer - Christopher Forsythe Operator: Hello, everyone. Thank you for joining us, and welcome to Atmos Energy Corporation's Fiscal 2026 Third Quarter Earnings Conference Call. I will now hand the conference over to Dan Meziere, Vice President of Investor Relations and Treasurer. Dan, please go ahead. Daniel Meziere: Thank you, Lucas. Good morning, everyone, and thank you for joining our fiscal 2026 third quarter earnings call. With me today are Kevin Akers, President and Chief Executive Officer; and Chris Forsythe, Senior Vice President and Chief Financial Officer. Our earnings release and conference call slide presentation which we will reference in our prepared remarks are available at atmosenergy.com under the Investor Relations tab. As we review these financial results and discuss future expectations, please keep in mind that some of our discussion might contain forward-looking statements within the meaning of the Securities Act and the Securities Exchange Act. Our forward-looking statements and projections could differ materially from actual results. The factors that could cause such material differences are outlined on Slide 32 and are more fully described in our SEC filings. With that, I will turn the call over to Kevin. John Akers: Thank you, Dan, and good morning, everyone. We appreciate your interest in Atmos Energy. Yesterday, we reported year-to-date fiscal '26 net income of $1.2 billion or $7.33 per diluted share and we reaffirmed our earnings per share guidance in the range of $8.40 to $8.50. Our capital expenditures for the fiscal year totaled $3.1 billion, with over 87% of these investments focused on enhancing the safety and reliability of our distribution, transmission and underground storage system. Across our service territories, we continue to see steady diversified customer growth for the 12 months ending June 30, 2026. We added nearly 51,000 new customers with nearly 39,000 of those new customers located here in Texas. And during the third quarter, we added 600 commercial customers and over 2,500 commercial customers fiscal year-to-date. Additionally, we added 5 new industrial customers during the third quarter and 12 new industrial customers fiscal year-to-date. The 12 new industrial customers are anticipated to use approximately 950,000 Mcf per year once they are fully operational. That is volumetrically equivalent to adding 18,000 residential customers. This continued demand from all customer classes demonstrates the value and vital road natural gas plays in economic development across our Atmos Energy service territory. The Texas Workforce Commission reported that Texas once again added jobs at a faster rate than the nation over the last 12 months ending June 2026. And in 2026, Texas added 30 Fortune 500 companies, bringing the total number of Fortune 500 companies to 57, the most in the nation at the highest level in Texas since 2010. In APT, we continue to work to enhance the safety, reliability, versatility and supply diversification of our system as well as support the continued growth we are seeing in the local distribution company behind APT system. APT is currently working on 2 separate projects to the Southeast of the DFW Metroplex that will install a total of 29 miles of 36-inch pipeline to connect 2 adjacent compressor stations to our Tri-City storage facility. These projects enhance system reliability and capacity for gas transported from the Haynesville and Cotton Valley shale plays through our Bethel and Tri-City storage facility, all to support the growing DFW Metroplex. To the east of the Metroplex, we began construction of a bilateral compressor station in Carthage, Texas that will increase the capacity of our 36-inch line S2 pipeline. Finally, we are working on the final phase of the WA [indiscernible] project to support growth in the northwestern portion of the Metroplex. This final phase will install 15 miles of 36-inch pipe, and it will complete a 92-mile 36-inch pipeline loop. All of these projects are currently scheduled to be placed into service by the end of the calendar year. This month, APT will submit its annual rider rev tariff seeking to reflect $160 million to $165 million in revenue credits for LDC customers on the system between November 1, 2026, and October 31, 2027. This amount is approved as filed, these customers will have received over $300 million in savings through the Rider REV mechanism from November 2023 through October 2027. Our customer support associates and service technicians continue to provide exceptional customer service, achieving customer satisfaction ratings in excess of 97% for the first 9 months of this fiscal year. Finally, during the first 9 months of the fiscal year, our customer advocacy team helped nearly 49,000 customers receive about $16.2 million in funding assistance. I'll now turn the call over to Chris for his update. Christopher Forsythe: Thank you, Kevin, and thank you to everyone for joining us this morning. As Kevin mentioned, earnings per share for the first 9 months of the fiscal year was $7.33, which represents a 14.5% increase over the prior year period. Our year-to-date results include $132 million or $0.63 on the impact of Texas House Bill 4384, $71 billion is recognized in our distribution segment and the remaining $61 million is recognized at APT. In addition to the impact of House Bill 4384, I wanted to highlight a few other drivers of our financial performance for the fiscal year-to-date period. Rate increases in both of our operating sections totaled $227 million. Operating income increased by an additional $41 million due to residential and commercial customer growth and increased customer load. APT's through-system revenues net of Rider REV increased about $34 million or $0.16. This increase continues to reflect significantly higher spreads realized during fiscal '26 compared with fiscal '25 that we've been discussing this entire fiscal year. During the first 9 months of fiscal '26, the spreads we captured averaged $4.66 compared with $1.77 in the prior year period, reflecting rising associated gas production constrained takeaway capacity and lower demand due to [indiscernible] warm weather during the past renovating season. Finally, consolidated O&M decreased $14 million, reflecting higher employee compliance and safe-related spending in our distribution segment, higher maintenance spending at APT, all offset by the impact of the implementation of the House Bill 4384 deferrals. From a regulatory perspective, since the beginning of the fiscal year, we have implemented $396 million of annualized operating income increases. This amount, $260 million was implemented during our third and fourth fiscal quarters. Currently, we have 7 filings in progress, seeking nearly $334 million in annualized operating income increases. We expect to implement most of this amount in the first quarter of fiscal '27. Our equity capitalization as of June 30 was 60%, and we do not have any short-term debt outstanding. At quarter end, we had $4.6 billion in available liquidity to support our operations. This includes approximately $937 million in net proceeds available under existing forward sale agreements, which is expected to satisfy the remainder of our anticipated fiscal '26 equity needs and a significant portion of our anticipated equity needs for fiscal '27. As we reported last night, we reaffirmed our fiscal '26 earnings per share guidance in the range of $8.40 to $8.50. APT's through-system business during the third fiscal quarter was in line with our expectations. Beginning in June, spreads have narrowed significantly now that additional takeaway capacity has come online, some sooner than expected. Additionally, O&M spending in fiscal '26 is trending slightly higher. We now expect fiscal '26 O&M, excluding net debt expense be in the range of $875 million to $885 million. Finally, we remain on track to spend approximately $4.2 billion in capital expenditures for fiscal '26. We appreciate your time this morning and your interest in Atmos Energy. We'll now open up the call for questions. Operator: Your first question comes from the line of Constantine Lednev with Wells Fargo Securities. Constantine Lednev: This is [indiscernible] on here for Constantine. Great quarter, given we are a quarter short of the year, do you anticipate to be in the top end of guidance? Do you anticipate any offsets to the strong year-to-date performance in 4Q? And maybe just a quick question around APT. Given where Waha has been trading, are contributions still moving in the same direction or do you anticipate some narrowing? Christopher Forsythe: Yes. Well, again, as we mentioned, we've reaffirmed our guidance in the range of $8.40 to $8.50. As I mentioned, APT's performance in the third quarter was in line with our expectations. But as I also highlighted, we are seeing a significantly narrower spreads beginning in the latter half of the third quarter and consuming that through today. as a result of additional takeaway capacity coming online, some of which was coming online sooner than expected. A couple of different pipes expected to go online in the fourth quarter of the calendar year, and they came on one in late June and one here in late July. And they're beginning to ramp up, which has had a -- causing the compression of the spread. So all in all, we are standing by our $8.40 to $8.50 range for EPS for '26, and we will see where the fourth quarter takes us in terms of spread opportunities and other operational factors for the remainder of the fiscal year. Constantine Lednev: Got it. Okay. And just to squeeze a timing question. Given the strength in fiscal year '26, do you feel you can carry some flex into fiscal year '27 just from an O&M and cost perspective? That will be all. Christopher Forsythe: If I understand your question correctly, in terms of -- if you're talking about APT, we certainly had mentioned before that we would continue to reflect in our base plan that we will roll forward in the fall and amount coming from APT's [indiscernible] business in line with the benchmark that we have established at roughly $107 million with respect to O&M in our 5-year guidance that we have out there right now, we anticipate a 4% O&M increase per year, and we'll refresh that when we roll forward the 5-year plan and later this fall. Operator: Your next question comes from the line of Richard Sunderland with Truist Securities. Richard Sunderland: I just want to follow up on some of those APT questions. Just last quarter, I think it was an $0.08 to $0.12 range for 2H uptick you guys had spoken to, looks like you captured most of that this quarter. But is $0.08 to $0.12 still the right range to be thinking about over that period moving for the balance of the year on 4Q? Christopher Forsythe: Yes, Rich, thanks for the call. Thanks for the question this morning. As you mentioned, we did pick up the $0.08 in the third quarter with the tightening of the spreads. I would say that we're probably going to be in the lower end of that range at this point in that [indiscernible]. So we'll see. And again, we'll have to continue to see what happens with maintenance on some of this takeaway capacity where the summer heat loads going or winter -- cooling load, excuse me, and we'll just see where we go from that. But I think the lower of that range is more appropriate. Richard Sunderland: Okay. That's helpful context. And then I also wanted to follow up on O&M and just, I think, I ask sort of in a similar way, right, like you took up the low end of the range, $10 million. I realize it's relatively modest. But is that reflective of any activities kind of getting pulled forward into '26 from '27? Or is that more around line locates other kind of external drivers. Just curious to parse that a little bit and think about kind of '26 versus '27 O&M activity. John Akers: Yes. Typically at this time of the year, it's more related to ongoing activity across the metroplex in other areas with the growth that we're seeing line-locate activities. Ongoing compliance and maintenance activities in that area, but that's what we normally see around this time of the year. Operator: Our next question comes from the line of Julien Dumoulin-Smith with Jefferies. Julien Dumoulin-Smith: [indiscernible] on for Julien. I just wanted to ask on Rule 7.7102 just given the benefits we've seen of late, can we expect it like maybe remain a discrete earnings benefit in '27? Or does it increasingly roll into Texas recovery from here? Just want to get a sense of how that's trending. Christopher Forsythe: Yes. Well, thanks for the question, Luke. Fiscal '26 is a step year change as a result of the implementation of 7.7102. And as we've said going forward, we expect that year-over-year to be more in line with what we've experienced in the past with respect to a Rule 8209. And so as we said at the end of the second quarter, we are anticipating launching a 6% to 8% earnings per share growth off of our current range, our guidance range of $8.40 to $8.50. So that reflects that. It's more of a moderation effect going forward now that we've got a full year's impact of the rule under our belt at this point. Julien Dumoulin-Smith: Awesome. And then maybe just wanted to see the latest timing and your confidence level around the mid-tech cities, RRM and maybe like how you see yourself positioned on customer bill affordability in Texas more broadly? John Akers: Yes. If you look at our deck that's out there, particularly our May investor deck, I think Slides 18 through 21 or 22. We have good information out there about affordability, both from a customer bill perspective, where we remain the lowest bill in the house. You want to look at it on an energy comparison basis, kilowatt to kilowatt Btu to Btu. Across our service territories, we range from 2% to 4% lower than electricity on a household basis. Then you're going to look at wallet share, both from the low income and a median income perspective, we range from 1% to 1.2% of the wallet with on the electric side ranging at about 2 to almost 3x wallet shoe. So we think our team continues to do an excellent job of keeping affordability top of mind, focusing on things we can control and being an efficient provider. Operator: Your next question comes from the line of Dylan Libner with Mizuho. Dylan Libner: Congrats on a good quarter here. I just kind of wanted to get back to Waha. Waha now back in positive territory and additional takeaway capacity expected to come online over the next several quarters. How are you guys thinking about how this is going to impact APT's earning power and utilization in the near term? John Akers: Well, as we said, Chris just highlighted where we think we're going to be on the guidance we gave before at the lower end of the $0.08 to $0.12 range. Again, we budget the benchmark for Rider REV. And we'll continue to monitor what we see over the next few months as we head into the fall and heating season, definitely no crystal balls here, we're not going to try and guess what's going to be going on in that period. We'll just have to see what the rest of the summer cooling load looks like. And then as we move into the fall, the winter and fall show up early and caused a spike in demand, what does that look like. So again, pretty much back to basics as we do every year, year in and year out. We're going to budget the benchmark, and then we'll see what comes our way from there. Operator: There are no further questions at this time. I will now turn the call back to Dan Meziere for closing remarks. Dan, please go ahead. Daniel Meziere: We appreciate your interest in Atmos Energy, and thank you again for joining us this morning. A recording of this call is available for replay on our website through September 30, 2026. Have a good day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Atmos Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Atmos Energy wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Atmos Energy (ATO) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Atmos Energy (ATO) just combined a fresh earnings update with reaffirmed 2026 guidance and a long-running dividend record. This cluster of announcements gives investors several concrete data points to assess the stock. For the third quarter ended June 30, 2026, Atmos Energy reported sales and revenue of US$879.06 million compared with US$838.77 million a year earlier. Net income was US$242.69 million compared with US$186.43 million, with basic earnings per share from continuing operations of US$1.44 versus US$1.17 and diluted earnings per share of US$1.43 versus US$1.16. Across the first nine months of fiscal 2026, the company reported sales and revenue of US$4.18b compared with US$3.97b a year earlier. Net income was US$1.23b compared with US$1.02b, while basic earnings per share from continuing operations reached US$7.40 versus US$6.47 and diluted earnings per share was US$7.33 versus US$6.40. Alongside these results, Atmos Energy reaffirmed its earnings guidance for fiscal 2026 at US$8.40 to US$8.50 per diluted share. Management also outlined plans for about US$4.2b in capital spending during fiscal 2026 and nearly US$334 million in annualized operating income increases pursued through regulatory filings. The company also addressed its APT pipeline business, noting that spreads narrowed after new takeaway capacity entered service earlier than expected. As a result, Atmos Energy now expects the second half earnings contribution from APT to be near the low end of its prior US$0.08 to US$0.12 per share range. In addition, the Board of Directors declared a quarterly dividend of US$1.00 per share, implying an annualized payout of US$4.00. The dividend is scheduled for payment on September 8, 2026, to shareholders of record on August 24, 2026, and marks the company’s 171st consecutive quarterly dividend. See our latest analysis for Atmos Energy. Atmos Energy’s share price has eased over the past month and quarter, with a 30 day share price return down 3.9% and a 90 day share price return down 5.9%. The 1 year total shareholder return of 5.9% and 5 year total shareholder return of 89.9% point to a stronger longer term record. Recent moves appear modest relative to that history. This suggests the latest earnings, reaffirmed guidance and dividend news are being weighed against a cooler near term share price trend rather than a sharp reset in the company’s perceived risk or growth profile. If Atmos Energy’s regulated utility profile appeals to you, it can also be useful to see what is happening across power and grid infrastructure. Now could be a good time to check out our screener of 36 power grid technology and infrastructure stocks Atmos Energy has paired solid recent earnings and reaffirmed guidance with a share price that has cooled in the short term. Are you seeing the business track its plan while sentiment quietly resets, or something else? The most followed narrative currently pegs Atmos Energy’s fair value at $186.18 per share compared with the last close of $170.19. That gap rests on a detailed set of growth, margin and valuation assumptions rather than short term price moves. Read the complete narrative. Read the complete narrative. Want to see what is behind that fair value estimate for Atmos Energy? The narrative leans on firm revenue expansion, higher profitability and a richer future earnings multiple. Curious which specific growth path and margin profile underpins that conclusion? Result: Fair Value of $186.18 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Atmos Energy’s story also carries risks, including higher capital and operating costs that could pressure cash flows, and legal or regulatory outcomes that may alter earnings visibility. Find out about the key risks to this Atmos Energy narrative. Given the mix of optimism and caution around Atmos Energy, it makes sense to look at the full picture yourself and move quickly from headlines to hard numbers. To see both sides laid out in one place, start with our breakdown of 3 key rewards and 2 important warning signs If Atmos Energy has you thinking about what else might fit your portfolio, now is the moment to widen your search with a few focused stock ideas. Target resilient income by reviewing companies in the 8 dividend fortresses that aim to combine higher yields with stability. 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Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Atmos Energy Corporation? Here are five stocks we like better. Atmos Energy reaffirmed its fiscal 2026 EPS guidance of $8.40–$8.50 after reporting $7.33 per diluted share for the first nine months, up 14.5% year over year. APT pipeline spreads narrowed after new takeaway capacity entered service earlier than expected, prompting management to forecast a second-half earnings contribution near the low end of its prior $0.08–$0.12 range. The company remains focused on growth and reliability, planning approximately $4.2 billion in fiscal 2026 capital spending while pursuing nearly $334 million in annualized operating-income increases through regulatory filings. 3 Low-Volatility Plays Quietly Making a Name For Themselves Atmos Energy (NYSE:ATO) reaffirmed its fiscal 2026 earnings guidance after reporting net income of $1.2 billion, or $7.33 per diluted share, for the first nine months of the fiscal year. Earnings per share rose 14.5% from the prior-year period, according to management. The company maintained its fiscal 2026 guidance range of $8.40 to $8.50 per share. Chief Financial Officer Chris Forsythe said third-quarter performance at Atmos Pipeline–Texas, or APT, was in line with expectations, though natural-gas price spreads narrowed beginning in June as additional pipeline takeaway capacity entered service earlier than expected. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Powering Up: UGI Banks $685M in Strategic Turnaround Forsythe said year-to-date results included a $132 million, or $0.63-per-share, impact from Texas House Bill 4384. Of that amount, $71 million was recognized in the distribution segment and $61 million was recognized at APT. Other contributors to year-to-date performance included $227 million of rate increases across the company’s operating segments, as well as a $41 million operating-income increase tied to residential and commercial customer additions and higher customer load. APT’s through-system revenue, net of the Rider REV mechanism, increased about $34 million, or $0.16 per share. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Utility Gas Inflation Is Soaring. This Stock Is a Clear Winner APT captured average spreads of $4.66 during the first nine months of fiscal 2026, compared with $1.77 in the comparable prior-year period. Forsythe attributed the higher spreads to rising associated-gas production, constrained takeaway capacity and lower demand during an unseasonably warm winter heating season. However, management said those conditions have changed. Forsythe said new takeaway capacity that had been expected to enter service later in the calendar year came online in late June and late July, contributing to compressed spreads. Chief Executive Officer Kevin Akers said the company now expects APT’s second-half earnings contribution to land near the lower end of a previously discussed $0.08-to-$0.12 range. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Since the start of the fiscal year, Atmos Energy has implemented $396 million of annualized operating-income increases, including $260 million implemented during the fiscal third and fourth quarters, Forsythe said. The company has seven regulatory filings in progress seeking nearly $334 million in annualized operating-income increases, with most of that amount expected to be implemented in the first quarter of fiscal 2027. Akers said the company’s fiscal-year capital expenditures total $3.1 billion, with more than 87% directed toward safety and reliability improvements for its distribution, transmission and underground-storage systems. Forsythe later said the company remains on track to spend approximately $4.2 billion in capital expenditures during fiscal 2026. At APT, the company is developing several projects around the Dallas-Fort Worth Metroplex. Two projects southeast of the metroplex would install a combined 29 miles of 36-inch pipeline connecting adjacent compressor stations with the Tri-City storage facility. The projects are intended to enhance reliability and capacity for gas transported from the Haynesville and Cotton Valley shale plays to the Bethel and Tri-City storage facilities. Atmos Energy also began construction on a bilateral compressor station in Carthage, Texas, intended to increase capacity on its 36-inch Line S-2 pipeline. In addition, it is completing the final phase of the WA Loop Project, which would add 15 miles of 36-inch pipe and complete a 92-mile pipeline loop serving the northwestern portion of the metroplex. Management said all of those projects are scheduled to enter service by the end of the calendar year. APT also plans to submit its annual Rider REV tariff this month, seeking to provide $160 million to $165 million in revenue credits to local distribution company customers between Nov. 1, 2026, and Oct. 31, 2027. If approved as filed, Akers said customers would receive more than $300 million in savings through the Rider REV mechanism between November 2023 and October 2027. Atmos Energy added nearly 51,000 customers during the 12 months ended June 30, including nearly 39,000 customers in Texas. The company added 600 commercial customers during the third quarter and more than 2,500 curb commercial customers year to date. The company also added five industrial customers in the third quarter and 12 industrial customers year to date. Those 12 customers are expected to consume approximately 950,000 Mcf annually once fully operational, which Akers said is volumetrically equivalent to about 18,000 residential customers. Consolidated operations and maintenance expense declined $14 million year to date, Forsythe said, reflecting the effects of House Bill 4384 deferrals that offset higher employee compliance and safety spending in the distribution segment and increased maintenance spending at APT. Still, the company raised its fiscal 2026 O&M outlook, excluding bad-debt expense, to a range of $875 million to $885 million. Akers said the higher spending reflects ongoing activity in the company’s service territories, including customer growth, line-locate work, compliance requirements and maintenance activity. Atmos Energy ended June with an equity capitalization ratio of 60%, no short-term debt outstanding and $4.6 billion of available liquidity. That liquidity includes approximately $937 million in net proceeds available under existing forward-sale agreements, which Forsythe said should meet the company’s remaining fiscal 2026 equity needs and a significant portion of anticipated fiscal 2027 needs. Looking ahead, Akers said the company expects earnings-per-share growth of 6% to 8% from the current fiscal 2026 guidance range as it moves into fiscal 2027. Management said it will refresh its five-year plan later in the fall, including its outlook for operating and maintenance cost growth. Atmos Energy Corporation (NYSE: ATO) is a U.S.-based natural-gas utility that primarily focuses on the regulated distribution of natural gas. Headquartered in Dallas, Texas, the company operates through local distribution systems to deliver natural gas to residential, commercial, industrial and electric generation customers. Atmos's core activities include pipeline operations, gas distribution, system maintenance and reliability programs designed to ensure safe and continuous service to its customers. The company's services encompass gas delivery, system integrity and maintenance, storage and transmission connections, and customer-facing programs such as billing, conservation initiatives and energy-efficiency offerings. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Atmos Energy Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Atmos Energy ATO reported fiscal third-quarter 2026 earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.34 by 6.7%. The bottom line improved 23.3% from $1.16 in the year-ago quarter. The company reported revenues of $879 million, which missed the Zacks Consensus Estimate of $1.04 billion by 15.3%. The top line increased 4.8% from $838.8 million in the prior-year quarter. Atmos Energy Corporation price-consensus-eps-surprise-chart | Atmos Energy Corporation Quote Operation and maintenance expenses in the third quarter of fiscal 2026 amounted to $223.2 million, up 0.5% year over year.Operating income in the third quarter of fiscal 2026 was $320.4 million, up 27.1% from $252.1 million in the prior-year quarter.As of Aug. 5, 2026, Atmos Energy had implemented $396.1 million of annualized rate outcomes, while $334.1 million remained in progress.ATO reported net income of $242.7 million in the third quarter of fiscal 2026, up 37.8% from $186.4 million in the year-ago quarter.Atmos Energy incurred interest expenses of $33.1 million, down 20.2% from the year-earlier quarter’s level.The company reported consolidated distribution throughput of 73.1 million cubic feet per day for the third quarter, down 2.93% from the year-ago quarter’s reported actual. Distribution: Net income totaled $89.4 million, up 26.8% from $70.5 million in the year-ago quarter. The increase was driven by a $21 million benefit from rate adjustments, primarily in the Mid-Tex Division, along with $26.7 million of deferred infrastructure-related costs and a $3.9 million contribution from residential customer growth and higher industrial demand.Pipeline and Storage: Net income increased 32.2% year over year to $153.3 million. The improvement was driven partly by a $35.1 million benefit from rate adjustments, primarily related to Gas Reliability Infrastructure Program filings approved in June 2025 and May 2026. As of June 30, 2026, cash and cash equivalents were $521 million, up from $202.7 million at fiscal 2025-end.As of June 30, 2026, Atmos Energy reported a strong balance sheet with approximately $4.6 billion of available liquidity.Net cash provided by operating activities totaled $1.67 billion during the first nine months of fiscal 2026 compared with $1.70 billion a year earlier.Capital expenditure totaled $1.04 billion in the third quarter, up 19.9% year over year. For the first nine months of fiscal 2026, spending reached $3.08 billion, with $2.72 billion directed toward safety and reliability projects. ATO reaffirmed fiscal 2026 guidance of $8.40-$8.50 per share. The Zacks Consensus Estimate for EPS is pegged at $8.44, slightly lower than the midpoint of the company’s guided range.Total net income is expected to be in the range of $1.41-$1.43 billion.ATO anticipates its fiscal 2026 capital expenditure to be $4.2 billion. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Algonquin Power & Utilities Corp. AQN is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for second-quarter EPS is pinned at 5 cents, which implies a year-over-year increase of 25%.The Zacks Consensus Estimate for second-quarter sales is pinned at $552.5 million, which suggests year-over-year growth of 4.68%.PPL Corporation PPL is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 35 cents per share, which implies year-over-year growth of 9.38%.The Zacks Consensus Estimate for second-quarter sales is pinned at $2.18 billion, which suggests year-over-year growth of 7.50%.Vistra VST is scheduled to report second-quarter 2026 results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, which implies year-over-year growth of 52.48%.The Zacks Consensus Estimate for second-quarter sales is pinned at $6.29 billion, which suggests year-over-year growth of 48.07%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Atmos Energy Corporation (ATO) : Free Stock Analysis Report PPL Corporation (PPL) : Free Stock Analysis Report Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report Vistra Corp. (VST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was significantly bolstered by the implementation of Texas House Bill 4384, contributing $132 million or $0.63 per share year-to-date across distribution and transmission segments. Strong customer growth continues with 51,000 new additions over the last 12 months, driven by Texas adding 30 Fortune 500 companies and maintaining a faster job growth rate than the national average. Industrial demand is accelerating, with 12 new industrial customers expected to consume 950,000 Mcf annually, a volumetric impact equivalent to adding 18,000 residential customers. Atmos Pipeline-Texas (APT) captured significantly higher spreads of $4.66 compared to $1.77 in the prior year, driven by constrained takeaway capacity and associated gas production growth. Safety and reliability remain the primary capital allocation focus, with 87% of the $3.1 billion year-to-date capital expenditure dedicated to system integrity. The company maintains a competitive affordability position, with natural gas bills representing only 1% to 1.2% of household wallet share, significantly lower than electric alternatives. Management reaffirmed fiscal 2026 EPS guidance of $8.40 to $8.50, while noting that APT through-system spreads have begun to narrow significantly as of June. Three major pipeline and compression projects in the DFW Metroplex and East Texas are scheduled to be placed into service by the end of the calendar year to support regional growth. Future earnings growth is projected at 6% to 8% off the fiscal 2026 guidance range, reflecting a moderation effect after the initial step-change from new Texas regulatory rules. The company has secured approximately $937 million in net proceeds from forward sale agreements to satisfy remaining 2026 equity needs and a significant portion of 2027 requirements. O&M spending for fiscal 2026 is trending slightly higher, with a revised expected range of $875 million to $885 million due to increased compliance and growth-related activities. The Rider REV mechanism is expected to provide $160 million to $165 million in revenue credits to LDC customers, totaling over $300 million in savings since November 2023. Texas House Bill 4384 created a one-time 'step year' benefit in 2026; future impacts are expected to align with historical regulatory deferral patterns. New takeaway capacity on third-party pipelines came online sooner than expected in late June and July, causing a compression in the Waha spreads that previously benefited APT. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects to land at the lower end of the previously communicated $0.08 to $0.12 second-half uptick range due to tightening spreads. The narrowing is attributed to new takeaway capacity ramping up earlier than anticipated, though summer cooling loads and winter demand remain variables. Fiscal 2026 represents a unique step-change in earnings due to the rule's implementation. Going forward, the impact will moderate and be treated as part of the base for the 6% to 8% long-term EPS growth target. The $10 million increase in the low end of O&M guidance is primarily driven by external factors like line-locate activities and ongoing compliance in high-growth areas. Management clarified this is reflective of current activity levels rather than a strategic pull-forward of 2027 expenses.

DALLAS, August 05, 2026--(BUSINESS WIRE)--Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its third fiscal quarter ended June 30, 2026. This news release should be read in conjunction with our earnings slides which are concurrently being posted at www.atmosenergy.com. Fiscal Year Highlights Earnings per diluted share of $7.33 on net income of $1.2 billion. Capital expenditures were $3.1 billion; over 85% focused on safety and reliability. Strong financial profile with 60% equity capitalization and $4.6 billion in available liquidity. Implemented $355.0 million in annualized regulatory outcomes. Outlook Fiscal 2026 earnings per diluted share guidance reaffirmed in the range of $8.40 - $8.50 per diluted share. Fiscal 2026 capital expenditure guidance expected to be approximately $4.2 billion. The company's Board of Directors has declared a quarterly dividend of $1.00 per common share. The indicated annual dividend for fiscal 2026 is $4.00, which represents a 14.9% increase over fiscal 2025. Conference Call to be Webcast August 6, 2026 Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2026 third quarter financial results on Thursday, August 6, 2026, at 10:00 a.m. Eastern Time. The domestic dial-in number is 833-461-5787. The meeting ID is 578 339 393. International dial-in numbers can be found at help.events.q4inc.com/eahc/international-dial-in-numbers. The conference call will be webcast live on the Atmos Energy website at www.investors.atmosenergy.com/events-and-presentations. 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 release, 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, adverse weather, 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; failure of technology that affects the Company's business operations; 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 legislation to reduce or eliminate greenhouse gas emissions or fossil fuels; 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, a natural gas-only distributor, is an S&P 500 company headquartered in Dallas. We safely deliver reliable, efficient, and abundant natural gas to approximately 3.4 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 http://www.atmosenergy.com, Facebook, Twitter, Instagram and YouTube. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805284594/en/ Contacts Analysts and Media Contact: Dan Meziere (972) 855-3729

Atmos Energy (ATO) came out with quarterly earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.34 per share. This compares to earnings of $1.16 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.72%. A quarter ago, it was expected that this natural gas utility would post earnings of $3.37 per share when it actually produced earnings of $3.47, delivering a surprise of +2.97%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Atmos, which belongs to the Zacks Utility - Gas Distribution industry, posted revenues of $879.06 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 15.3%. This compares to year-ago revenues of $838.77 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Atmos shares have added about 3% since the beginning of the year versus the S&P 500's gain of 13%. While Atmos has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Atmos was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.20 on $946.04 million in revenues for the coming quarter and $8.44 on $5.26 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Gas Distribution is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Utilities sector, Cadiz (CDZI), is yet to report results for the quarter ended June 2026. This renewable resource company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has been revised 5% higher over the last 30 days to the current level. Cadiz's revenues are expected to be $4.22 million, up 2.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Atmos Energy Corporation (ATO) : Free Stock Analysis Report Cadiz, Inc. (CDZI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research