ATMOS ENERGY CORP has recently released its 10-K report, providing a detailed look at the company's financial performance and operations. ATMOS ENERGY CORP engages in regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through two segments, Distribution, and Pipeline and Storage. The Distribution segment distributes natural gas to approximately 3.3 million residential, commercial, public authority, and industrial customers and owned 73,689 miles of underground distribution and transmission mains. The Pipeline and Storage segment engages in pipeline and storage operations, managing five underground storage facilities in Texas and owning 5,645 miles of gas transmission lines. ATMOS ENERGY CORP was founded in 1906 and is headquartered in Dallas, Texas.
In ITEM 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, ATMOS ENERGY CORP stated that its vision is to be the safest provider of natural gas services, requiring significant levels of capital spending to modernize its natural gas distribution system and operating costs to deliver natural gas safely and reliably. The company anticipates making significant capital expenditures for the foreseeable future, with approximately $26 billion expected to be spent between fiscal years 2026 and 2030, with more than 80 percent dedicated to safety and reliability spending.
In terms of critical accounting policies, ATMOS ENERGY CORP highlighted two significant areas: regulation and pension and other postretirement plans. Under regulation, the financial results for the company's distribution and pipeline operations reflect the effects of the ratemaking and accounting practices and policies of the various regulatory commissions to which it is subject. Changes in the accounting for various regulatory mechanisms could significantly impact the company's operating expenses. For pension and other postretirement plans, the company's costs and liabilities are determined on an actuarial basis, affected by assumptions and estimates including the market value of plan assets, estimates of the expected return on plan assets, assumed discount rates, and current demographic and actuarial mortality data.
In terms of results of operations, ATMOS ENERGY CORP reported a net income of $1,198.8 million for fiscal year 2025, compared to $1,042.9 million in the prior year. The increase in net income largely reflects positive rate outcomes driven by safety and reliability spending and the impact of Texas legislation related to infrastructure spending. The company also implemented ratemaking regulatory actions resulting in an increase in annual operating income of $333.6 million.
ATMOS ENERGY CORP's capital expenditures for fiscal 2025 were $3.6 billion, with approximately 87 percent invested to improve the safety and reliability of its distribution and transportation systems. As of September 30, 2025, the company's equity capitalization was 60.3 percent, and it had approximately $4.9 billion in total liquidity, consisting of cash and cash equivalents, funds available through equity forward sales agreements, and undrawn capacity under credit facilities.
The Distribution segment, comprised of regulated natural gas distribution and related sales operations in eight states, recorded a net income of $746.8 million for fiscal year 2025, while the Pipeline and Storage segment recorded a net income of $451.9 million for the same period.
As a result of these announcements, the company's shares have moved -1.6% on the market, and are now trading at a price of $175.12. Check out the company's full 10-K submission here.
