Gas distribution company Atmos Energy Corp. (ATO) reported Tuesday a 23% year-over-year increase in profit for the first quarter, boosted by unrealized net gains during the quarter. Earnings per share for the quarter rose 20% and topped analysts' expectations by nine cents. The company also backed its earnings guidance for the fiscal year 2010.
In a statement, chairman and chief executive officer, Robert Best said, "We are off to a good start, with net income rising over 23 percent from a year ago. Our utility business continues to benefit from successful rate results, coupled with increased demand from colder weather this quarter."
The Dallas, Texas-based company reported net income of $93.3 million or $1.00 per share for the first quarter, higher than $76.0 million or $0.83 per share in the prior-year quarter.
The results for the latest quarter include noncash, unrealized net gains of $26.8 million or $0.29 per share, compared to net losses of $14.2 million or $0.16 per share in the prior-year quarter.
On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.91 per share for the first quarter. Analysts' estimates typically exclude special items.
Regulated operations contributed net income of $59.9 million or $0.64 per share, up from $57.8 million or $0.63 per share in the prior-year quarter. Nonregulated operations contributed net income of $33.4 million or $0.36 per share, higher than $18.2 million or $0.20 per share in the year-ago quarter.
Gross profit for the first quarter increased 4% to $410.85 million from $395.21 million in the year-ago quarter.
Natural gas distribution gross profit for the fourth quarter decreased to $294.6 million from $298.4 million in the prior-year quarter. Regulated transmission and storage gross profit declined $46.9 million from $54.7 million in the same quarter last year.
Natural gas marketing gross profit increased to $59.8 million from $30.0 million in the prior-year quarter. Pipeline, storage and other gross profit decreased to $10.0 million from $12.5 million in the year-ago quarter.
Total operating expenses for the quarter decreased 5% to $220.25 million from $232.01 million in the prior-year quarter.
Capital expenditures for the quarter increased to $115.4 million from $107.4 million in the same quarter last year. The company ended the fourth quarter with cash and cash equivalents of $174.83 million, compared to $69.80 million at end of the prior-year quarter.
Consolidated natural gas distribution throughput was for the quarter was 134.52 billion cubic feet or bcf, up from 125.78 bcf for the year-ago quarter. Consolidated regulated transmission and storage transportation volumes fell to 95.94 bcf from 135.86 bcf last year and consolidated natural gas marketing sales volumes declined to 87.23 bcf from 93.31 bcf for prior-year quarter.
Natural gas distribution average cost of gas for the first quarter was $5.12, lower than $8.28 for the year earlier period.
"And, in spite of the ongoing challenges in the economy, our nonregulated business continues to perform as expected, with an emphasis on the expansion of our geographical footprint. We remain confident that Atmos Energy is on track to meet our goal of growing annual earnings in the 4 to 6 percent range, on average," Best added.
For the fiscal year 2010, Atmos Energy continues to project earnings in the range of $2.15 to $2.25 per share, excluding unrealized gains and losses. Analysts currently expect the company to report earnings of $2.19 per share for fiscal 2010.
The company expects earnings from regulated operations in the range of $153 million to $159 million, and net income from non-regulated operations is expected to be in the range of $48 million to $52 million.
Capital expenditures for the full-year 2010 are still expected between $520 million and $535 million.
ATO closed Tuesday's regular trading session at $27.67, up $0.07 or 0.25% on a volume of 0.72 million shares, higher than the three-month average volume of 0.46 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.