Atmos Energy Files 2024 10-K Annual Report

Ticker: ATO · Form: 10-K · Filed: Nov 18, 2024 · CIK: 731802

Sentiment: neutral

Topics: 10-K, annual-report, utilities

TL;DR

Atmos Energy dropped its 2024 10-K. All systems go for gas distribution.

AI Summary

Atmos Energy Corp. filed its 10-K for the fiscal year ending September 30, 2024, reporting on its operations in natural gas distribution. The company, headquartered in Dallas, Texas, is focused on its regulated utility operations and pipeline services. Key financial details and operational performance metrics for the fiscal year are outlined in this comprehensive annual report.

Why It Matters

This filing provides investors and stakeholders with a detailed overview of Atmos Energy's financial health, operational performance, and strategic direction for the past fiscal year, influencing investment decisions.

Risk Assessment

Risk Level: low — A 10-K filing is a standard annual report for publicly traded companies and does not inherently indicate new or elevated risks.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of Atmos Energy Corp?

Atmos Energy Corp. is primarily engaged in natural gas distribution, as indicated by its SIC code 4924.

When does Atmos Energy Corp's fiscal year end?

Atmos Energy Corp.'s fiscal year ends on September 30, as stated in the filing details.

Where is Atmos Energy Corp. headquartered?

Atmos Energy Corp. is headquartered in Dallas, Texas.

What is the SEC file number for Atmos Energy Corp's 10-K?

The SEC file number for this 10-K filing is 001-10042.

What is the accession number for this filing?

The accession number for this 10-K filing is 0000731802-24-000030.

Filing Stats: 4,418 words · 18 min read · ~15 pages · Grade level 14.5 · Accepted 2024-11-18 16:20:38

Key Financial Figures

Filing Documents

Risk Factors

Item 1A. Risk Factors 14

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 19

Cybersecurity

Item 1C. Cybersecurity 19

Properties

Item 2. Properties 21

Legal Proceedings

Item 3. Legal Proceedings 22

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 22 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22

Reserved

Item 6. Reserved 24

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 35

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 36

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 86

Controls and Procedures

Item 9A. Controls and Procedures 86

Other Information

Item 9B. Other Information 88

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 88 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 88

Executive Compensation

Item 11. Executive Compensation 89

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 89

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 89

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 89 Part IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 89

Form 10-K Summary

Item 16. Form 10-K Summary 94 Table of Contents GLOSSARY OF KEY TERMS AEK Atmos Energy Kansas Securitization I, LLC AFUDC Allowance for funds used during construction AOCI Accumulated Other Comprehensive Income ARM Annual Rate Mechanism ATO Trading symbol for Atmos Energy Corporation common stock on the NYSE Bcf Billion cubic feet COSO Committee of Sponsoring Organizations of the Treadway Commission DARR Dallas Annual Rate Review EDIT Excess Deferred Income Taxes ERISA Employee Retirement Income Security Act of 1974 FERC Federal Energy Regulatory Commission GAAP Generally Accepted Accounting Principles GRIP Gas Reliability Infrastructure Program GSRS Gas System Reliability Surcharge LTIP 1998 Long-Term Incentive Plan Mcf Thousand cubic feet MDWQ Maximum daily withdrawal quantity Mid-Tex ATM Cities Represents a coalition of 47 incorporated cities or approximately 10 percent of the Mid-Tex Division's customers. Mid-Tex Cities Represents all incorporated cities other than Dallas and Mid-Tex ATM Cities, or approximately 72 percent of the Mid-Tex Division's customers. MMcf Million cubic feet Moody's Moody's Investor Service, Inc. NGPA Natural Gas Policy Act of 1978 NYSE New York Stock Exchange PHMSA Pipeline and Hazardous Materials Safety Administration PPA Pension Protection Act of 2006 PRP Pipeline Replacement Program RRC Railroad Commission of Texas RRM Rate Review Mechanism RSC Rate Stabilization Clause S&P Standard & Poor's Corporation SAVE Steps to Advance Virginia Energy SEC United States Securities and Exchange Commission Securitized Utility Tariff Bonds Series 2023-A Senior Secured Securitized Utility Tariff Bonds Securitized Utility Tariff Property As defined in the financing order issued by the KCC in October 2022 SIP System Integrity Program SIR System Integrity Rider SOFR Secured Overnight Financing Rate SRF Stable Rate Filing SSIR System Safety and Integrity Rider TCJA Tax Cuts and Jobs Act of 2017 WNA Weath

Business

ITEM 1. Business. Overview and Strategy Atmos Energy Corporation, headquartered in Dallas, Texas, and incorporated in Texas and Virginia, is the country's largest natural-gas-only distributor based on number of customers. We safely deliver reliable, efficient, and abundant natural gas through regulated sales and transportation arrangements to over 3.3 million residential, commercial, public authority, and industrial customers in eight states located primarily in the South. We also operate one of the largest intrastate pipelines in Texas based on miles of pipe. Atmos Energy's vision is to be the safest provider of natural gas services. We will be recognized for exceptional customer service, for being a great employer, and for achieving superior financial results. Our operating strategy is focused on modernizing our business and infrastructure while reducing regulatory lag. This operating strategy supports continued investment in safety, innovation, environmental sustainability, and our communities. Operating Segments We manage and review our consolidated operations through the following reportable segments: The distribution segment is comprised of our regulated natural gas distribution and related sales operations in eight states. The pipeline and storage segment is comprised primarily of the regulated pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana. Distribution Segment Overview The following table summarizes key information about our six regulated natural gas distribution divisions, presented in order of total rate base. Division Service Areas Communities Served Customer Meters Mid-Tex Texas, including the Dallas/Fort Worth Metroplex 550 1,804,265 Kentucky/Mid-States Kentucky 220 176,903 Tennessee 161,193 Virginia 23,777 Louisiana Louisiana 270 360,870 West Texas Amarillo, Lubbock, Midland 80 314,503 Mississippi Mississippi 110 251,147 Colorado-Kansas Colorado 170 129

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