5/7/2026

speaker
Kayla
Conference Operator

Thank you for standing by. My name is Kayla and I will be your conference operator today. At this time, I'd like to welcome everyone to the Atmos Energy Corporation fiscal 2026 second quarter earnings conference call. All lines been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question again, press the star and one. I would now like to turn the call over to Jennifer Wernicke, Director of Investor Relations and Assistant Treasurer. You may begin.

speaker
Jennifer Wernicke
Director of Investor Relations and Assistant Treasurer

Thank you, Kayla. Good morning, everyone, and thank you for joining our fiscal 2026 second quarter earnings call. With me today are Kevin Akers, President and Chief Executive Officer, and Chris Forsyth, 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 atmisenergy.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 29 and are more fully described in our SEC filings. With that, I will turn the call over to Kevin Akers, our president and CEO. Kevin.

speaker
Kevin Akers
President and Chief Executive Officer

Thank you, Jennifer, and good morning, everyone. We appreciate your interest in Atmos Energy. Yesterday, we reported year-to-date fiscal 26 net income of $985 million, or $5.92 per diluted share. And we updated our earnings per share guidance range to $8.40 to $8.50. Our capital expenditures for the first half of the fiscal year totaled $2 billion, with over 89% of those investments focused on enhancing the safety and reliability of our distribution, transmission, and underground storage systems. Across our service territories, we continue to see steady customer growth. For the 12 months ending March 31, 2026, we added over 51,000 new customers, with over 39,000 of those new customers located here in Texas. And during the second quarter, we added over 800 commercial customers and four new industrial customers. This continued demand from all customer classes demonstrates the value and vital role natural gas plays in economic development across our service territories. 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 companies behind APT's system. During the second quarter, we completed phase two of the LineWA project. This project installed approximately 44 miles of 36-inch pipeline to the west of Fort Worth to support growth in this area of the DFW Metroplex. Additionally, APT enhanced supply optionality, reliability, and system versatility with the completion of five interconnect projects and adding nearly 100,000 MCF a day of additional natural gas supply to the APT system. These investments further enhance APT's ability to serve the LDC customers behind their city gates. These LDC customers also benefit from APT's Rider Rev Tariff, which shares approximately 75% of APT's other revenue build that is above a specified benchmark. As a reminder, these revenues vary from year to year based upon available capacity on our pipeline and natural gas pricing dynamics in Texas. Over the last three years, these customers have received approximately $150 million in total as credit from the Rider Rev Tariff. As you'll hear from Chris in a few minutes, natural gas pricing dynamics have positively impacted APT's other revenue build in the first half of fiscal 2026 and are expected to favorably impact our financial results for the remainder of the fiscal year. Our customer support associates and service technicians continue to provide exceptional customer service, achieving customer satisfaction ratings of 97% for the first six months of the fiscal year, truly outstanding work by this team. Additionally, during the first half of the fiscal year, our customer advocacy team helped over 33,000 customers receive approximately $9.5 million in funding assistance. And recently, we were named to the Forbes list of America's best large employers, ranking as one of the top 100 employers overall and placing second among all utilities. This is the sixth consecutive year Atmos Energy has been named to this list. This recognition reflects the continued dedication, focus, and effort of all Atmos Energy employees to safely deliver reliable and efficient natural gas to homes, businesses, and industries to fuel our energy needs now and in the future. Their commitment has us well positioned for the remainder of the fiscal year. Now I'll turn the call over to Chris for his update.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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Investor presentation