ATO - Earnings call transcript Q4 2018 | Atmos Energy Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to Atmos Energy 2018 Fourth Quarter Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jennifer Hills. Relations. Investor - VP

Jennifer Hills

Good is thank the being Dana. us. Internet. for This call webcast morning, you, you everyone, joining Thank live on

on Our presentation conference and our available earnings atmosenergy.com. website call at release are slide

review Act in that forward-looking and Exchange keep statements the we expectations, might meaning the our mind these discuss Securities some and As future results of please within discussions of contain financial the Act. Securities

material SEC could projections that forward-looking materially are actual results. Slide and factors and described such Our The more could cause XX from differ differences on filings. outlined fully statements are in our

Our first CFO Forsythe, Vice of President speaker and is Chris Chris? Atmos Energy. Senior

Christopher Forsythe

in continuing and diluted our in Adjusted morning, a share we XXXX per prior of $XXX revaluation Yesterday, $XXX compared operations $X.XX as tax or you, reform. from We excludes benefit $X.XX appreciate million from with million fiscal good or the $X share of Atmos per diluted Jennifer; share a million result $XXX deferred per continuing Energy. your the interest or operations of reported diluted year. Thank taxes earnings from everyone. adjusted earnings

the tax million extensive $X.XX capital implementing For the rose diluted IRS million or the after reform per operations compared from day fourth new earnings per prior from million share or $X.XX $X.XX These adjusted with August. $XX $X diluted benefit in the of a results the diluted exclude to continuing share per share or out the $XX period. quarter, rules one-time shrewd clarified in year implementation

Mississippi incremental $XX by the X to details segments. $XX increased our each and year income year reliability XX highlights. or Rate margin to capital a changes providing segment Slides updated were of with guidance million on fiscal X.X% in growth. improvements, the Contribution fiscal I safety a line of for of representing contribution provide increases North midpoint areas XX% year-over-year and assets. share about per distribution these our related results Louisiana in our few spending touch our rose XXXX Our to were year-over-year. X earnings service and million, in of will of net consecutive above the operating about increases driven range portfolio Texas,

customer We to also continue experience solid growth.

last our the a months, net margins increased customers, And added transportation for Over X.X% XX,XXX the XX increase segment distribution our year-over-year. XX% a year.

Virtually increase adding million income These was business XX% or in employee-related year-over-year. by consumption system, other We This their expansions increases Texas and partially surveys increased to addition occurred line our offset in customers, our $XX revenue, tax plant to either contribution expense due a margin Operating decline rose essentially offset were of decline implementation costs. and expense. and higher customers tax Combined, other reform. In existing activity our experienced locate to by storage increased year. the transportation Kentucky/Mid-States the activities for areas. decline in corresponding in a this expenses to $XX pipeline million customers all approximately through of growth short filing. and due the several the added increased this service

increased remained the this in for of spending. with $XX fiscal line from of implementation the Earlier increase revenue capital depreciation replacement higher our XXXX was connection year very original pipeline $XX incurred rate dedicated accelerate margin is about Additionally, It approximate from rates regulatory activity Dallas associated impact updated capital billion, with to perspective. to safety million the spending In filings reform We $X.X from a to combined or August XXXX. in reliability $XX year. XXXX, the million. plan of increased approved were and storage income majority of activities. pipeline by produced to was quarter, This quarter. $XX $XX nearly expectation related planned The million filed to case resulting above our implemented Mid-Tex we remainder plan. from of in spending proceedings. $XX tax increases to of rate and spending most completed expectations new with of to about APT's million million the segment, Operating which XX during expenses in XXXX regulatory outage second associated XX% fiscal recent last calendar increased Northwest Division outlined that $X.X In two our in Most net due the quick to incurred pipe increases for projects. we of with replacement an annualized increased Revenue with increase billion, replacement during plan fiscal XX%. higher or our for was full expense contribution fourth fiscal our XX.X%. XX% plans Consolidated the amended we of $X.X operating active billion million

taking $XXX which should in operating the increase three to for from in reform, lower million. effect After proceedings, fiscal into three completed result $XXX the account in net financial impact expense also was tax million, We completed tax annualized into from went October. $XX we these Rates income XXXX million anticipated. rate filings to outcomes resulting

reform reflecting progress XXXX. additional opportunity income Virginia have of that taking the adjusted filings is and the reform. cash as the utilities have benefits in the country rate. we of yet quickly to areas, our in statutory in seven of X adjusted annualized regulatory first we builds only on helped to resulting to also million of increase positive income. filings our XXXX, fiscal provided reduce was rates and focused work fiscal the we Slide states, tax in $XX state in the states. impact a activities customer operating lower customer inform annualized Tennessee possible. in these in provides In the we in about amount filings unique These and tax to $X Currently, and customers. of million where in our reform around significant reflect far, service rates A implement eight operating the XX% issue So won Mississippi bills for completed reforms to XXXX as detail fiscal six Tax we have not regulatory start

take periods in that liabilities new terminations around from we between address and filing rates. to will The that the reform We established January liabilities the periods states However, XX to in excess estimate a reform provisional things for filings, established non-protective among is key other implement returning and statutory Slides the would once deferred trued customer rate the up effective into to the regarding January annual states, from years. we're have XX% and made tax XX once year. tax on -- effective the that now rate. filing our and over XXXX, the would of tax in million And made tax the of reform reform current progress difference Xst summarize the from deferred tax $XXX XXXX this the X, our per ranging that the liability tax rates. tax the protective be benefit be the custom results XX we XX fiscal between in we have fully statutory we These difference have impacts activity financial tax components. progress XX% regulatory allocation implementation account we reform in implemented all of have three liability and are bills. away excess former using And amortization six clarity now returning former the future tax we the reform regulatory

benefits to balance supporting and tax our Our to our remains sheet spending returned customers. strong, of program reform capital

facilities Directors of largely offering XXX point and the completed XX, reflects recognition benefit capitalization at the equity ago. equity one-time As available we last billion XXXX, of XX%, increase On under November borrowing an $X.XX annual reform. LIBOR public 'XX yesterday, an an cash debt X, was financial a increase approximately fiscal our interest down basis XX-year all-in XXXX. October X.XX%. our quarterly one Energy's into to outstanding from fiscal we tax were indicated to proceeds fiscal from completed get We $XXX year The share, year-end. of September capacity XXXX, the In XXXX, over total successful for reforms a for used and had of to $X Atmos way of rate issuance consecutive credit increase commercial pay approved dividend, XXXth of X.X% per Board million a paper. The rate

billion. and spending capital increase anticipated the per to income persistent our continuing primary net billion $X.XX replacement is diluted share XXXX, we in to we look capital fiscal be expect $X.XX As range spending the and and per driver spending, to $X.XX forward for modernization. between earnings of acceleration of to the per The range share -- and share $X.XX to earnings in

five-year We our work next our when meeting would XXth. be over remarks. for some plan XXXX webcast through Tuesday, will will York turn Mike to I Investor That closing at fiscal now New for XXXX website. outlook on our the also additional provide we Meeting our November detail on financial call in on

Mike Haefner

for Chris, that you, Thank great update.

impact performance aspects XXXX and reinforced see The leaders our we another driven various year partners tragic was our replacement operating continues during of its met we where replace unprecedented dedicate which event it and investment. potential to not also that saw X,XXX period. pipe you of in our customers system the of strategy new system of proactive by performance that miles monitoring to contractor and employees, infrastructure. occurred continue was one environmental threats February can our difficult Dallas take conditions. all employees affected This service As further customers fiscal hearts modernization from aging the integrity as learn to heavily The normally best results, in accelerating and Dallas, our we year our replacement effort Northwest our in under completed challenges. on to in system The very targets successful weeks. our Northwest three serving And our line weigh may safely financial that was experienced themselves year from would safety. our distribution system and closely without information the XX We about of main

of regulators, our policies the we're our these With risk to models, procedures. our into working incorporate findings our support and

As following activity Chris accelerate in crews to work activities fourth in outage. XX our pipe in pipe plans replacement earlier year. in addition the This Dallas track the We're calendar announced end replacement mentioned, on dedicated further we year, of Division. is crews added planned to the our the increase by during the this to double to the Mid-Tex quarter,

eliminate additional With system of of these things, XXXX from XXXX. by end significant crews, among other the distribution to payment Northwest replacement to Dallas by system a portion perform the an entire cash we intend, in Mid-Tex

states, of effort. have They investors. benefits eight with long-term operating growing transmission committed line gas our natural than our states pipe we and expectations reliably, in in expectations system more in and have for to managing economy investments distribution of our the miles project, year lines. manner. our our record XX,XXX than our A while XXXX, a We fiscal transmission and completed capital all above a than safe investments modernize XXX of miles pipe, to are these and X,XXX responsible safely distribution. communities, service replacing system. our distribution and operate transmission the and and these of that team was accomplishment we more in significant in to to XXX continue a more delivered Across customers, our track significant is measured, And Modernization of proven

our of We need who support continue to modernize have to aging understand the infrastructure. replace regulators and the

mechanisms us capital to and to our us XX% capital within investments more of enable begin in to recovering months on needed This place finance XX deploy to attract capital and investments. test the of XX% months. enables that six generate necessary returns our year-end efficiently have We within new

yesterday, And, Last very a of effective value promotion that of Board. and Di X, private supported been great by announced Walters and Diana Directors, Directors. engaged have forward Executive diversity have announced will an management their of Board elected look strong public to Sean XXXX. deep and We Donohue enterprises, November that's we of in Board team our and week, President. bring to provide Vice the experience our we to thought to the Kevin Akers We leadership. management Sean

include well continues financial which previously company and as reported of and operating his He broad pipeline supply serve member In responsibility management to our he'll storage management management, experience and me. now him in that Pipeline-Texas the of industry expand involvement to the and Kevin's will development chain chain the strategies. business team. area, assume operations a and process facilities over company's his responsibilities, addition company's execution service, pipeline and current Atmos customer safety, through our to

Next our our present XXXX. week, Investor plans we'll at fiscal five-year Meeting, updated for

Utility Park, will and our as well Kevin Forsythe. President of David as Chris Operations Senior Vice me be Joining

on to investments our They find natural we excellent investments We focused and in customer deploying unchanged. to modernization, to X% remains enhance to We modification, gas continue for focus single scale. slow Atmos exceptional can serve strategy natural you affordable which capital I'd meeting These every Our to thank X.X and have. safety, per in eight-state appreciate take provider. remain base, that every our growth this your over updated safe, and of program. communities our footprint. is and time to spending work efforts. being of closing, will to we'll reliable, support rate improve day closely providing and their outstanding X,XXX systems expected We'll safety, day our ways any the maintaining gas to efficiencies appreciate committed deliver like Energy. customer share continued customers our down earnings improve million technology to questions our and strive infrastructure morning. executing And that come value X% goal our now, may while growth In service employees of interest system monitoring per We our your service, on Dana? drive year. They to our

Jennifer Hills

We Dana. thank morning. on everyone, your Energy, joining of A and for X, us. joining call replay you Atmos you, Thank for Thank Great. in website interest us available is through you, February this XXXX. recording our this Goodbye. for appreciate

Atmos Energy (ATO) 8 Nov 182018 Q4 Earnings call transcript