| (Mark One) | ||
|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
| For the quarterly period ended March 31, 2007 | ||
|
or
|
||
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
| For the transition period from to | ||
| Texas and Virginia | 75-1743247 | |
|
(State or other jurisdiction
of
incorporation or organization) |
(IRS employer
identification no.) |
|
|
Three Lincoln Centre,
Suite 1800
5430 LBJ Freeway, Dallas, Texas (Address of principal executive offices) |
75240
(Zip code) |
|
Class
|
Shares Outstanding
|
|||
| No Par Value | 88,806,235 | |||
|
AEC
|
Atmos Energy Corporation | |
|
AEH
|
Atmos Energy Holdings, Inc. | |
|
AEM
|
Atmos Energy Marketing, LLC | |
|
AES
|
Atmos Energy Services, LLC | |
|
APS
|
Atmos Pipeline and Storage, LLC | |
|
Bcf
|
Billion cubic feet | |
|
EITF
|
Emerging Issues Task Force | |
|
FASB
|
Financial Accounting Standards Board | |
|
FIN
|
FASB Interpretation | |
|
Fitch
|
Fitch Ratings, Ltd. | |
|
GRIP
|
Gas Reliability Infrastructure Program | |
|
KPSC
|
Kentucky Public Service Commission | |
|
LGS
|
Louisiana Gas Service Company and LGS Natural Gas Company, which were acquired July 1, 2001 | |
|
LPSC
|
Louisiana Public Service Commission | |
|
Mcf
|
Thousand cubic feet | |
|
MMcf
|
Million cubic feet | |
|
Moodys
|
Moodys Investors Services, Inc. | |
|
NYMEX
|
New York Mercantile Exchange, Inc. | |
|
RRC
|
Railroad Commission of Texas | |
|
RSC
|
Rate Stabilization Clause | |
|
S&P
|
Standard & Poors Corporation | |
|
SEC
|
United States Securities and Exchange Commission | |
|
SFAS
|
Statement of Financial Accounting Standards | |
|
TRA
|
Tennessee Regulatory Authority | |
|
WNA
|
Weather Normalization Adjustment |
1
| Item 1. | Financial Statements |
2
|
Three Months Ended
|
||||||||
| March 31 | ||||||||
| 2007 | 2006 | |||||||
| (Unaudited) | ||||||||
|
(In thousands, except
|
||||||||
| per share data) | ||||||||
|
Operating revenues
|
||||||||
|
Utility segment
|
$ | 1,461,033 | $ | 1,447,620 | ||||
|
Natural gas marketing segment
|
795,041 | 818,629 | ||||||
|
Pipeline and storage segment
|
59,362 | 45,483 | ||||||
|
Other nonutility segment
|
783 | 1,595 | ||||||
|
Intersegment eliminations
|
(240,637 | ) | (279,481 | ) | ||||
| 2,075,582 | 2,033,846 | |||||||
|
Purchased gas cost
|
||||||||
|
Utility segment
|
1,114,787 | 1,131,885 | ||||||
|
Natural gas marketing segment
|
771,988 | 774,652 | ||||||
|
Pipeline and storage segment
|
229 | 211 | ||||||
|
Other nonutility segment
|
| | ||||||
|
Intersegment eliminations
|
(240,108 | ) | (278,305 | ) | ||||
| 1,646,896 | 1,628,443 | |||||||
|
Gross profit
|
428,686 | 405,403 | ||||||
|
Operating expenses
|
||||||||
|
Operation and maintenance
|
111,862 | 112,698 | ||||||
|
Depreciation and amortization
|
51,066 | 47,076 | ||||||
|
Taxes, other than income
|
56,746 | 64,796 | ||||||
|
Total operating expenses
|
219,674 | 224,570 | ||||||
|
Operating income
|
209,012 | 180,833 | ||||||
|
Miscellaneous income (expense)
|
1,838 | (2,439 | ) | |||||
|
Interest charges
|
35,262 | 35,492 | ||||||
|
Income before income taxes
|
175,588 | 142,902 | ||||||
|
Income tax expense
|
69,083 | 54,106 | ||||||
|
Net income
|
$ | 106,505 | $ | 88,796 | ||||
|
Basic net income per share
|
$ | 1.21 | $ | 1.10 | ||||
|
Diluted net income per share
|
$ | 1.20 | $ | 1.10 | ||||
|
Cash dividends per share
|
$ | 0.320 | $ | 0.315 | ||||
|
Weighted average shares
outstanding:
|
||||||||
|
Basic
|
88,078 | 80,573 | ||||||
|
Diluted
|
88,735 | 81,040 | ||||||
3
|
Six Months Ended
|
||||||||
| March 31 | ||||||||
| 2007 | 2006 | |||||||
|
(Unaudited)
|
||||||||
|
(In thousands, except
|
||||||||
| per share data) | ||||||||
|
Operating revenues
|
||||||||
|
Utility segment
|
$ | 2,425,277 | $ | 2,852,630 | ||||
|
Natural gas marketing segment
|
1,506,735 | 1,920,474 | ||||||
|
Pipeline and storage segment
|
109,214 | 85,195 | ||||||
|
Other nonutility segment
|
2,136 | 3,087 | ||||||
|
Intersegment eliminations
|
(365,147 | ) | (543,720 | ) | ||||
| 3,678,215 | 4,317,666 | |||||||
|
Purchased gas cost
|
||||||||
|
Utility segment
|
1,816,463 | 2,256,714 | ||||||
|
Natural gas marketing segment
|
1,420,548 | 1,850,178 | ||||||
|
Pipeline and storage segment
|
454 | 211 | ||||||
|
Other nonutility segment
|
| | ||||||
|
Intersegment eliminations
|
(363,528 | ) | (541,430 | ) | ||||
| 2,873,937 | 3,565,673 | |||||||
|
Gross profit
|
804,278 | 751,993 | ||||||
|
Operating expenses
|
||||||||
|
Operation and maintenance
|
227,232 | 220,915 | ||||||
|
Depreciation and amortization
|
100,061 | 90,336 | ||||||
|
Taxes, other than income
|
96,813 | 110,212 | ||||||
|
Total operating expenses
|
424,106 | 421,463 | ||||||
|
Operating income
|
380,172 | 330,530 | ||||||
|
Miscellaneous income (expense)
|
3,417 | (1,991 | ) | |||||
|
Interest charges
|
74,794 | 71,681 | ||||||
|
Income before income taxes
|
308,795 | 256,858 | ||||||
|
Income tax expense
|
121,029 | 97,035 | ||||||
|
Net income
|
$ | 187,766 | $ | 159,823 | ||||
|
Basic net income per share
|
$ | 2.20 | $ | 1.99 | ||||
|
Diluted net income per share
|
$ | 2.18 | $ | 1.98 | ||||
|
Cash dividends per share
|
$ | 0.64 | $ | 0.63 | ||||
|
Weighted average shares
outstanding:
|
||||||||
|
Basic
|
85,404 | 80,444 | ||||||
|
Diluted
|
86,061 | 80,911 | ||||||
4
|
Six Months Ended
|
||||||||
| March 31 | ||||||||
| 2007 | 2006 | |||||||
|
(Unaudited)
|
||||||||
| (In thousands) | ||||||||
|
Cash Flows From Operating
Activities
|
||||||||
|
Net income
|
$ | 187,766 | $ | 159,823 | ||||
|
Adjustments to reconcile net
income to net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization:
|
||||||||
|
Charged to depreciation and
amortization
|
100,061 | 90,336 | ||||||
|
Charged to other accounts
|
118 | 334 | ||||||
|
Deferred income taxes
|
72,755 | 58,199 | ||||||
|
Other
|
9,472 | 7,587 | ||||||
|
Net assets / liabilities from risk
management activities
|
50,540 | (24,041 | ) | |||||
|
Net change in operating assets and
liabilities
|
91,215 | (143,847 | ) | |||||
|
Net cash provided by operating
activities
|
511,927 | 148,391 | ||||||
|
Cash Flows From Investing
Activities
Capital expenditures |
(172,792 | ) | (213,230 | ) | ||||
|
Other, net
|
(3,749 | ) | (2,842 | ) | ||||
|
Net cash used in investing
activities
|
(176,541 | ) | (216,072 | ) | ||||
|
Cash Flows From Financing
Activities
|
||||||||
|
Net increase (decrease) in
short-term debt
|
(382,416 | ) | 117,506 | |||||
|
Repayment of long-term debt
|
(2,206 | ) | (2,162 | ) | ||||
|
Cash dividends paid
|
(54,640 | ) | (50,933 | ) | ||||
|
Issuance of common stock
|
12,428 | 12,053 | ||||||
|
Net proceeds from equity offering
|
191,913 | | ||||||
|
Net cash provided by (used in)
financing activities
|
(234,921 | ) | 76,464 | |||||
|
Net increase in cash and cash
equivalents
|
100,465 | 8,783 | ||||||
|
Cash and cash equivalents at
beginning of period
|
75,815 | 40,116 | ||||||
|
Cash and cash equivalents at end
of period
|
$ | 176,280 | $ | 48,899 | ||||
5
| 1. | Nature of Business |