Table of each class | Trading Symbol | Name of each exchange on which registered | |||||||||
Common stock | No Par Value | ATO | New York Stock Exchange |
Large accelerated filer |
☑
|
Accelerated filer |
☐
|
Non-accelerated filer |
☐
|
Smaller reporting company |
☐
|
Emerging growth company |
☐
|
Page | ||||||||
Part I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | Mine Safety Disclosures | |||||||
Part II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
Part III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
Part IV | ||||||||
Item 15. | ||||||||
Item 16. |
Adjusted diluted net income per share | Non-GAAP measure defined as diluted net income per share before the one-time, non-cash income tax benefit | ||||
Adjusted net income | Non-GAAP measure defined as net income before the one-time, non-cash income tax benefit | ||||
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 | ||||
ERISA | Employee Retirement Income Security Act of 1974 | ||||
FASB | Financial Accounting Standards Board | ||||
FERC | Federal Energy Regulatory Commission | ||||
GAAP | Generally Accepted Accounting Principles | ||||
GRIP | Gas Reliability Infrastructure Program | ||||
GSRS | Gas System Reliability Surcharge | ||||
LIBOR | London Interbank Offered Rate | ||||
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 | ||||
NTSB | National Transportation Safety Board | ||||
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 | ||||
SIR | System Integrity Rider | ||||
SRF | Stable Rate Filing | ||||
SSIR | System Safety and Integrity Rider | ||||
TCJA | Tax Cuts and Jobs Act of 2017 | ||||
WNA | Weather Normalization Adjustment |
ITEM 1. | Business. |
Division | Service Areas | Communities Served | Customer Meters | |||||||||||||||||
Mid-Tex | Texas, including the Dallas/Fort Worth Metroplex | 550 | 1,791,482 | |||||||||||||||||
Kentucky/Mid-States | Kentucky | 230 | 183,937 | |||||||||||||||||
Tennessee | 159,461 | |||||||||||||||||||
Virginia | 24,746 | |||||||||||||||||||
Louisiana | Louisiana | 270 | 373,207 | |||||||||||||||||
West Texas | Amarillo, Lubbock, Midland | 80 | 326,419 | |||||||||||||||||
Mississippi | Mississippi | 110 | 272,993 | |||||||||||||||||
Colorado-Kansas | Colorado | 170 | 125,241 | |||||||||||||||||
Kansas | 139,763 |
Division | Jurisdiction |
Effective
Date of Last Rate/GRIP Action |
Rate Base
(thousands)(1)
|
Authorized
Rate of
Return(1)
|
Authorized Debt/
Equity Ratio(1)
|
Authorized
Return
on Equity(1)
|
|||||||||||||||||||||||||||||
Atmos Pipeline — Texas | Texas | 05/11/2021 | $2,924,585 | 8.87% | 47/53 | 11.50% | |||||||||||||||||||||||||||||
Colorado-Kansas | Colorado | 05/03/2018 | 134,726 | 7.55% | 44/56 | 9.45% | |||||||||||||||||||||||||||||
Colorado SSIR | 01/01/2021 | 78,265 | 7.55% | 44/56 | 9.45% | ||||||||||||||||||||||||||||||
Kansas | 04/01/2020 | 242,314 | 7.03% | 44/56 | 9.10% | ||||||||||||||||||||||||||||||
Kansas GSRS | 02/01/2021 | 16,917 | 7.03% | 44/56 | 9.10% | ||||||||||||||||||||||||||||||
Kentucky/Mid-States | Kentucky | 05/08/2019 | 424,929 | 7.49% | 42/58 | 9.65% | |||||||||||||||||||||||||||||
Kentucky-PRP | 10/01/2020 | 39,368 | 7.49% | 42/58 | 9.65% | ||||||||||||||||||||||||||||||
Tennessee | 06/01/2021 | 421,189 | 7.62% | 40/60 | 9.80% | ||||||||||||||||||||||||||||||
Virginia | 04/01/2019 | 47,827 | 7.43% | 42/58 | 9.20% | ||||||||||||||||||||||||||||||
Virginia-SAVE | 10/01/2020 | 3,509 | 7.43% | 42/58 | 9.20% | ||||||||||||||||||||||||||||||
Louisiana | Louisiana | 07/01/2021 | 837,325 | 7.30% | (4) | (4) | |||||||||||||||||||||||||||||
Mid-Tex |
Mid-Tex Cities(6)
|
12/01/2020 |
3,726,295(5)
|
7.53% | 42/58 | 9.80% | |||||||||||||||||||||||||||||
Mid-Tex - ATM Cities | 06/11/2021 |
4,307,060(5)
|
7.97% | 40/60 | 9.80% | ||||||||||||||||||||||||||||||
Mid-Tex - Environs | 09/01/2021 |
4,307,060(5)
|
7.97% | 40/60 | 9.80% | ||||||||||||||||||||||||||||||
Dallas | 06/09/2021 |
4,293,195(5)
|
7.57% | 41/59 | 9.80% | ||||||||||||||||||||||||||||||
Mississippi |
Mississippi(7)
|
11/01/2020 | 474,216 | 7.81% | (4) | (4) | |||||||||||||||||||||||||||||
Mississippi - SIR(7)
|
11/01/2020 | 247,414 | 7.81% | (4) | (4) | ||||||||||||||||||||||||||||||
West Texas |
West Texas Cities(8) (10)
|
12/01/2020 |
660,893(9)
|
7.53% | 42/58 | 9.80% | |||||||||||||||||||||||||||||
West Texas - ALDC | 06/01/2021 |
751,829(9)
|
7.35% | (4) | (4) | ||||||||||||||||||||||||||||||
West Texas - Environs | 06/11/2021 |
765,101(9)
|
7.97% | 40/60 | 9.80% |
Division | Jurisdiction |
Bad Debt
Rider(2)
|
Formula Rate | Infrastructure Mechanism |
Performance Based
Rate Program(3)
|
WNA Period | |||||||||||||||||||||||||||||
Atmos Pipeline — Texas | Texas | No | Yes | Yes | N/A | N/A | |||||||||||||||||||||||||||||
Colorado-Kansas | Colorado | No | No | Yes | No | N/A | |||||||||||||||||||||||||||||
Kansas | Yes | No | Yes | Yes | October-May | ||||||||||||||||||||||||||||||
Kentucky/Mid-States | Kentucky | Yes | No | Yes | Yes | November-April | |||||||||||||||||||||||||||||
Tennessee | Yes | Yes | Yes | Yes | October-April | ||||||||||||||||||||||||||||||
Virginia | Yes | No | Yes | No | January-December | ||||||||||||||||||||||||||||||
Louisiana | Louisiana | No | Yes | Yes | No | December-March | |||||||||||||||||||||||||||||
Mid-Tex Cities | Texas | Yes | Yes | Yes | No | November-April | |||||||||||||||||||||||||||||
Mid-Tex — Dallas | Texas | Yes | Yes | Yes | No | November-April | |||||||||||||||||||||||||||||
Mississippi | Mississippi | No | Yes | Yes | No | November-April | |||||||||||||||||||||||||||||
West Texas | Texas | Yes | Yes | Yes | No | October-May |
Annual Increase (Decrease) to Operating
Income For the Fiscal Year Ended September 30 |
||||||||||||||||||||
Rate Action | 2021 | 2020 | 2019 | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Annual formula rate mechanisms | $ | 181,459 | $ | 160,857 | $ | 114,810 | ||||||||||||||
Rate case filings | 5,119 | (1,057) | 1,656 | |||||||||||||||||
Other ratemaking activity | (877) | 353 | 214 | |||||||||||||||||
$ | 185,701 | $ | 160,153 | $ | 116,680 |
Division | Rate Action | Jurisdiction |
Operating Income
Requested |
|||||||||||||||||
(In thousands) | ||||||||||||||||||||
Kentucky/Mid-States | Infrastructure Mechanism |
Virginia (1)
|
$ | 350 | ||||||||||||||||
Kentucky/Mid-States | Rate Case |
Kentucky (2)
|
14,394 | |||||||||||||||||
Kentucky/Mid-States | Infrastructure Mechanism | Kentucky | 3,506 | |||||||||||||||||
Mid-Tex | Formula Rate Mechanism |
Mid-Tex Cities (3)
|
29,707 | |||||||||||||||||
Mississippi | Infrastructure Mechanism |
Mississippi (4)
|
8,354 | |||||||||||||||||
Mississippi | Formula Rate Mechanism |
Mississippi (4)
|
(730) | |||||||||||||||||
West Texas | Formula Rate Mechanism |
West Texas Cities (5)
|
903 | |||||||||||||||||
$ | 56,484 |
Annual Formula Rate Mechanisms | ||||||||||||||
State | Infrastructure Programs | Formula Rate Mechanisms | ||||||||||||
Colorado | System Safety and Integrity Rider (SSIR) | — | ||||||||||||
Kansas | Gas System Reliability Surcharge (GSRS) | — | ||||||||||||
Kentucky | Pipeline Replacement Program (PRP) | — | ||||||||||||
Louisiana | (1) | Rate Stabilization Clause (RSC) | ||||||||||||
Mississippi | System Integrity Rider (SIR) | Stable Rate Filing (SRF) | ||||||||||||
Tennessee | (1) | Annual Rate Mechanism (ARM) | ||||||||||||
Texas | Gas Reliability Infrastructure Program (GRIP), (1) | Dallas Annual Rate Review (DARR), Rate Review Mechanism (RRM) | ||||||||||||
Virginia | Steps to Advance Virginia Energy (SAVE) | — |
Division | Jurisdiction | Test Year Ended |
Increase
(Decrease) in Annual Operating Income |
Effective
Date |
||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
2021 Filings: | ||||||||||||||||||||||||||
Mid-Tex | Environs | 12/2020 | $ | 4,632 | 09/01/2021 | |||||||||||||||||||||
Louisiana |
Louisiana (1) (4)
|
12/2020 | (2,407) | 07/01/2021 | ||||||||||||||||||||||
Mid-Tex |
ATM Cities (2)
|
12/2020 | 11,085 | 06/11/2021 | ||||||||||||||||||||||
West Texas |
Triangle (2)
|
12/2020 | 416 | 06/11/2021 | ||||||||||||||||||||||
West Texas |
Environs (2)
|
12/2020 | 1,267 | 06/11/2021 | ||||||||||||||||||||||
Mid-Tex |
DARR (2) (4)
|
09/2020 | 1,708 | 06/09/2021 | ||||||||||||||||||||||
Kentucky/Mid-States | Tennessee ARM | 09/2020 | 10,260 | 06/01/2021 | ||||||||||||||||||||||
Atmos Pipeline - Texas | Texas | 12/2020 | 43,868 | 05/11/2021 | ||||||||||||||||||||||
Colorado-Kansas | Kansas GSRS | 09/2020 | 1,695 | 02/01/2021 | ||||||||||||||||||||||
Colorado-Kansas | Colorado SSIR | 12/2021 | 2,366 | 01/01/2021 | ||||||||||||||||||||||
Mid-Tex | Mid-Tex Cities RRM | 12/2019 | 82,645 | 12/01/2020 | ||||||||||||||||||||||
West Texas | West Texas Cities RRM | 12/2019 | 5,645 | 12/01/2020 | ||||||||||||||||||||||
Mississippi | Mississippi - SIR | 10/2021 | 10,556 | 11/01/2020 |
Mississippi | Mississippi - SRF | 10/2021 | 5,856 | 11/01/2020 | ||||||||||||||||||||||
Kentucky/Mid-States | Virginia - SAVE | 09/2021 | 305 | 10/01/2020 | ||||||||||||||||||||||
Kentucky/Mid-States | Kentucky PRP | 09/2021 | 1,562 | 10/01/2020 | ||||||||||||||||||||||
Total 2021 Filings (4)
|
$ | 181,459 | ||||||||||||||||||||||||
2020 Filings: | ||||||||||||||||||||||||||
Mid-Tex | DARR | 09/2019 | $ | 14,746 | 09/01/2020 | |||||||||||||||||||||
Louisiana |
Louisiana (1)
|
12/2019 | 14,781 | 07/01/2020 | ||||||||||||||||||||||
West Texas |
Environs (3)
|
12/2019 | 1,031 | 06/16/2020 | ||||||||||||||||||||||
Kentucky/Mid-States | Tennessee ARM | 05/2019 | 714 | 06/15/2020 | ||||||||||||||||||||||
Mid-Tex |
ATM Cities (3)
|
12/2019 | 11,148 | 06/12/2020 | ||||||||||||||||||||||
Mid-Tex |
Environs (3)
|
12/2019 | 4,440 | 05/20/2020 | ||||||||||||||||||||||
Atmos Pipeline - Texas | Texas | 12/2019 | 49,251 | 05/20/2020 | ||||||||||||||||||||||
West Texas |
Amarillo, Lubbock, Dalhart and Channing (3)
|
12/2019 | 5,937 | 04/28/2020 | ||||||||||||||||||||||
Colorado-Kansas | Colorado SSIR | 12/2020 | 2,082 | 01/01/2020 | ||||||||||||||||||||||
Mississippi | Mississippi - SIR | 10/2020 | 7,586 | 11/01/2019 | ||||||||||||||||||||||
Mississippi | Mississippi - SRF | 10/2020 | 6,886 | 11/01/2019 | ||||||||||||||||||||||
Kentucky/Mid-States | Virginia - SAVE | 09/2020 | 84 | 10/01/2019 | ||||||||||||||||||||||
Kentucky/Mid-States | Kentucky PRP | 09/2020 | 2,912 | 10/01/2019 | ||||||||||||||||||||||
Mid-Tex | Mid-Tex RRM Cities | 12/2018 | 34,380 | 10/01/2019 | ||||||||||||||||||||||
West Texas | West Texas Cities RRM | 12/2018 | 4,879 | 10/01/2019 | ||||||||||||||||||||||
Total 2020 Filings | $ | 160,857 | ||||||||||||||||||||||||
2019 Filings: | ||||||||||||||||||||||||||
Mid-Tex | ATM Cities | 12/2018 | $ | 6,591 | 09/26/2019 | |||||||||||||||||||||
Louisiana | LGS | 12/2018 | 7,124 | 07/01/2019 | ||||||||||||||||||||||
Mid-Tex | Environs | 12/2018 | 2,435 | 06/04/2019 | ||||||||||||||||||||||
West Texas | Environs | 12/2018 | 1,005 | 06/04/2019 | ||||||||||||||||||||||
Mid-Tex | DARR | 09/2018 | 9,452 | 06/01/2019 | ||||||||||||||||||||||
Kentucky/Mid-States | Tennessee ARM | 05/2020 | 2,393 | 06/01/2019 | ||||||||||||||||||||||
Atmos Pipeline - Texas | Texas | 12/2018 | 49,225 | 05/07/2019 | ||||||||||||||||||||||
West Texas | Amarillo, Lubbock, Dalhart and Channing | 12/2018 | 5,692 | 05/01/2019 | ||||||||||||||||||||||
Colorado-Kansas | Kansas GSRS | 12/2018 | 1,562 | 05/01/2019 | ||||||||||||||||||||||
Louisiana | Trans La | 09/2018 | 4,719 | 04/01/2019 | ||||||||||||||||||||||
Colorado-Kansas | Colorado GIS | 12/2019 | 87 | 04/01/2019 | ||||||||||||||||||||||
Colorado-Kansas | Colorado SSIR | 12/2019 | 2,147 | 01/01/2019 | ||||||||||||||||||||||
Mississippi | Mississippi - SIR | 10/2019 | 7,135 | 11/01/2018 | ||||||||||||||||||||||
Mississippi | Mississippi - SRF | 10/2019 | (118) | 11/01/2018 | ||||||||||||||||||||||
Kentucky/Mid-States | Tennessee ARM | 05/2019 | (5,032) | 10/15/2018 | ||||||||||||||||||||||
Mid-Tex | Mid-Tex RRM Cities | 12/2017 | 17,633 | 10/01/2018 | ||||||||||||||||||||||
West Texas | West Texas Cities RRM | 12/2017 | 2,760 | 10/01/2018 | ||||||||||||||||||||||
Total 2019 Filings | $ | 114,810 | ||||||||||||||||||||||||
Division | State |
Increase (Decrease) in Annual
Operating Income |
Effective Date | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
2021 Rate Case Filings: | ||||||||||||||||||||
West Texas (ALDC) (1)
|
Texas | $ | 5,119 | 06/01/2021 | ||||||||||||||||
Total 2021 Rate Case Filings | $ | 5,119 | ||||||||||||||||||
2020 Rate Case Filings: | ||||||||||||||||||||
West Texas (Triangle) | Texas | $ | (808) | 04/21/2020 | ||||||||||||||||
Colorado-Kansas | Kansas | (249) | 04/01/2020 | |||||||||||||||||
Total 2020 Rate Case Filings | $ | (1,057) | ||||||||||||||||||
2019 Rate Case Filings: | ||||||||||||||||||||
Mid-Tex (ATM Cities) | Texas | $ | 2,113 | 06/01/2019 | ||||||||||||||||
Kentucky/Mid-States | Kentucky | 3,441 | 05/08/2019 | |||||||||||||||||
Kentucky/Mid-States | Virginia | (400) | 04/01/2019 | |||||||||||||||||
Mid-Tex (Environs) | Texas | (2,674) | 01/01/2019 | |||||||||||||||||
West Texas (Environs) | Texas | (824) | 01/01/2019 | |||||||||||||||||
Total 2019 Rate Case Filings | $ | 1,656 | ||||||||||||||||||
Division | Jurisdiction | Rate Activity |
Increase (Decrease) in Annual
Operating Income |
Effective
Date |
||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
2021 Other Rate Activity: | ||||||||||||||||||||||||||
Colorado-Kansas | Kansas |
Ad Valorem (1)
|
$ | (877) | 02/01/2021 | |||||||||||||||||||||
Total 2021 Other Rate Activity | $ | (877) | ||||||||||||||||||||||||
2020 Other Rate Activity: | ||||||||||||||||||||||||||
Colorado-Kansas | Kansas |
Ad Valorem(1)
|
$ | 353 | 02/01/2020 | |||||||||||||||||||||
Total 2020 Other Rate Activity | $ | 353 | ||||||||||||||||||||||||
2019 Other Rate Activity: | ||||||||||||||||||||||||||
Colorado-Kansas | Kansas |
Ad-Valorem(1)
|
$ | 214 | 02/01/2019 | |||||||||||||||||||||
Total 2019 Other Rate Activity | $ | 214 | ||||||||||||||||||||||||
ITEM 1A. | Risk Factors. |
ITEM 1B. | Unresolved Staff Comments. |
ITEM 2. | Properties. |
State |
Usable Capacity
(Mcf) |
Cushion
Gas
(Mcf)(1)
|
Total
Capacity (Mcf) |
Maximum
Daily Delivery Capability (Mcf) |
||||||||||||||||||||||
Distribution Segment | ||||||||||||||||||||||||||
Kentucky | 7,956,991 | 9,562,283 | 17,519,274 | 146,660 | ||||||||||||||||||||||
Kansas | 3,239,000 | 2,300,000 | 5,539,000 | 32,000 | ||||||||||||||||||||||
Mississippi | 1,907,571 | 2,442,917 | 4,350,488 | 29,136 | ||||||||||||||||||||||
Total | 13,103,562 | 14,305,200 | 27,408,762 | 207,796 | ||||||||||||||||||||||
Pipeline and Storage Segment
|
||||||||||||||||||||||||||
Texas | 46,083,549 | 15,878,025 | 61,961,574 | 1,710,000 | ||||||||||||||||||||||
Louisiana | 411,040 | 256,900 | 667,940 | 56,000 | ||||||||||||||||||||||
Total | 46,494,589 | 16,134,925 | 62,629,514 | 1,766,000 | ||||||||||||||||||||||
Total | 59,598,151 | 30,440,125 | 90,038,276 | 1,973,796 |
Segment | Division/Company |
Maximum
Storage Quantity (MMBtu) |
Maximum
Daily
Withdrawal
Quantity
(MDWQ)(1)
|
|||||||||||||||||
Distribution Segment | ||||||||||||||||||||
Colorado-Kansas Division | 6,343,728 | 147,965 | ||||||||||||||||||
Kentucky/Mid-States Division | 8,175,103 | 226,320 | ||||||||||||||||||
Louisiana Division | 2,594,875 | 177,765 | ||||||||||||||||||
Mid-Tex Division | 5,000,000 | 190,000 | ||||||||||||||||||
Mississippi Division | 5,099,536 | 164,764 | ||||||||||||||||||
West Texas Division | 5,500,000 | 176,000 | ||||||||||||||||||
Total | 32,713,242 | 1,082,814 | ||||||||||||||||||
Pipeline and Storage Segment | ||||||||||||||||||||
Trans Louisiana Gas Pipeline, Inc. | 1,000,000 | 47,500 | ||||||||||||||||||
Total Contracted Storage Capacity | 33,713,242 | 1,130,314 |
ITEM 3. | Legal Proceedings. |
ITEM 4. | Mine Safety Disclosures. |
ITEM 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
Fiscal 2021 | Fiscal 2020 | |||||||||||||
Quarter ended: | ||||||||||||||
December 31 | $ | 0.625 | $ | 0.575 | ||||||||||
March 31 | 0.625 | 0.575 | ||||||||||||
June 30 | 0.625 | 0.575 | ||||||||||||
September 30 | 0.625 | 0.575 | ||||||||||||
$ | 2.50 | $ | 2.30 |
Cumulative Total Return | |||||||||||||||||||||||||||||||||||
9/30/2016 | 9/30/2017 | 9/30/2018 | 9/30/2019 | 9/30/2020 | 9/30/2021 | ||||||||||||||||||||||||||||||
Atmos Energy Corporation | 100.00 | 115.17 | 131.91 | 163.30 | 140.06 | 132.61 | |||||||||||||||||||||||||||||
S&P 500 Stock Index | 100.00 | 118.61 | 139.85 | 145.80 | 167.89 | 218.27 | |||||||||||||||||||||||||||||
S&P 500 Utilities Stock Index | 100.00 | 112.03 | 115.31 | 146.56 | 139.28 | 154.61 |
Number of
securities to be issued upon exercise of outstanding options, warrants and rights |
Weighted-average
exercise price of outstanding options, warrants and rights |
Number of securities remaining
available for future issuance under equity compensation plans (excluding securities reflected in column (a)) |
|||||||||||||||
(a) | (b) | (c) | |||||||||||||||
Equity compensation plans approved by security holders:
|
|||||||||||||||||
1998 Long-Term Incentive Plan | 944,962 | (1) | $ | — | 1,054,190 | ||||||||||||
Total equity compensation plans approved by security holders
|
944,962 | — | 1,054,190 | ||||||||||||||
Equity compensation plans not approved by security holders
|
— | — | — | ||||||||||||||
Total | 944,962 | $ | — | 1,054,190 |
ITEM 6. | Selected Financial Data. |
ITEM 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Critical
Accounting Policy |
Summary of Policy | Factors Influencing Application of the Policy | ||||||
Unbilled Revenue |
We follow the revenue accrual method of accounting for distribution segment revenues whereby revenues attributable to gas delivered to customers, but not yet billed under the cycle billing method, are estimated and accrued and the related costs are charged to expense.
When permitted, we implement rates that have not been formally approved by our regulatory authorities, subject to refund.We recognize this revenue and establish a reserve for amounts that could be refunded based on our experience for the jurisdiction in which the rates were implemented. |
Estimates of delivered sales volumes based on actual tariff information and weather information and estimates of customer consumption and/or behavior
Estimates of purchased gas costs related to estimated deliveries
Estimates of amounts billed subject to refund
|
Critical
Accounting Policy |
Summary of Policy | Factors Influencing Application of the Policy | ||||||
Pension and other postretirement plans |
Pension and other postretirement plan costs and liabilities are determined on an actuarial basis using a September 30 measurement date and are affected by numerous 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. The assumed discount rate and the expected return are the assumptions that generally have the most significant impact on our pension costs and liabilities. The assumed discount rate, the assumed health care cost trend rate and assumed rates of retirement generally have the most significant impact on our postretirement plan costs and liabilities.
The discount rate is utilized principally in calculating the actuarial present value of our pension and postretirement obligations and net periodic pension and postretirement benefit plan costs. When establishing our discount rate, we consider high quality corporate bond rates based on bonds available in the marketplace that are suitable for settling the obligations, changes in those rates from the prior year and the implied discount rate that is derived from matching our projected benefit disbursements with currently available high quality corporate bonds. The expected long-term rate of return on assets is utilized in calculating the expected return on plan assets component of our annual pension and postretirement plan costs. We estimate the expected return on plan assets by evaluating expected bond returns, equity risk premiums, asset allocations, the effects of active plan management, the impact of periodic plan asset rebalancing and historical performance. We also consider the guidance from our investment advisors in making a final determination of our expected rate of return on assets. To the extent the actual rate of return on assets realized over the course of a year is greater than or less than the assumed rate, that year’s annual pension or postretirement plan costs are not affected. Rather, this gain or loss reduces or increases future pension or postretirement plan costs over a period of approximately ten to twelve years. The market-related value of our plan assets represents the fair market value of the plan assets, adjusted to smooth out short-term market fluctuations over a five-year period. The use of this methodology will delay the impact of current market fluctuations on the pension expense for the period. We estimate the assumed health care cost trend rate used in determining our postretirement net expense based upon our actual health care cost experience, the effects of recently enacted legislation and general economic conditions. Our assumed rate of retirement is estimated based upon our annual review of our participant census information as of the measurement date. |
General economic and market conditions
Assumed investment returns by asset class
Assumed future salary increases
Assumed discount rate
Projected timing of future cash disbursements
Health care cost experience trends
Participant demographic information
Actuarial mortality assumptions
Impact of legislation
Impact of regulation
|
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Impairment assessments |
We review the carrying value of our long-lived assets, including goodwill and identifiable intangibles, whenever events or changes in circumstance indicate that such carrying values may not be recoverable, and at least annually for goodwill, as required by U.S. accounting standards.
The evaluation of our goodwill balances and other long-lived assets or identifiable assets for which uncertainty exists regarding the recoverability of the carrying value of such assets involves the assessment of future cash flows and external market conditions and other subjective factors that could impact the estimation of future cash flows including, but not limited to the commodity prices, the amount and timing of future cash flows, future growth rates and the discount rate. Unforeseen events and changes in circumstances or market conditions could adversely affect these estimates, which could result in an impairment charge. |
General economic and market conditions
Projected timing and amount of future discounted cash flows Judgment in the evaluation of relevant data |
For the Fiscal Year Ended September 30 | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs. 2020 | 2020 vs. 2019 | |||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||||||
Net income | $ | 665,563 | $ | 601,443 | $ | 511,406 | $ | 64,120 | $ | 90,037 | |||||||||||||||||||
Non-cash income tax benefits | — | (20,962) | — | 20,962 | (20,962) | ||||||||||||||||||||||||
Adjusted net income | $ | 665,563 | $ | 580,481 | $ | 511,406 | $ | 85,082 | $ | 69,075 | |||||||||||||||||||
Diluted net income per share | $ | 5.12 | $ | 4.89 | $ | 4.35 | $ | 0.23 | $ | 0.54 | |||||||||||||||||||
Diluted EPS from non-cash income tax benefits | — | (0.17) | — | 0.17 | (0.17) | ||||||||||||||||||||||||
Adjusted diluted net income per share | $ | 5.12 | $ | 4.72 | $ | 4.35 | $ | 0.40 | $ | 0.37 |
For the Fiscal Year Ended September 30 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Distribution segment | $ | 445,862 | $ | 395,664 | $ | 328,814 | |||||||||||
Pipeline and storage segment | 219,701 | 205,779 | 182,592 | ||||||||||||||
Net income | $ | 665,563 | $ | 601,443 | $ | 511,406 |
For the Fiscal Year Ended September 30 | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs. 2020 | 2020 vs. 2019 | |||||||||||||||||||||||||
(In thousands, unless otherwise noted) | |||||||||||||||||||||||||||||
Operating revenues | $ | 3,241,973 | $ | 2,626,993 | $ | 2,745,461 | $ | 614,980 | $ | (118,468) | |||||||||||||||||||
Purchased gas cost | 1,501,695 | 1,071,227 | 1,268,591 | 430,468 | (197,364) | ||||||||||||||||||||||||
Operating expenses | 1,121,764 | 1,027,523 | 1,006,098 | 94,241 | 21,425 | ||||||||||||||||||||||||
Operating income | 618,514 | 528,243 | 470,772 | 90,271 | 57,471 | ||||||||||||||||||||||||
Other non-operating income (expense) | (20,694) | (1,265) | 6,241 | (19,429) | (7,506) | ||||||||||||||||||||||||
Interest charges | 36,629 | 39,634 | 60,031 | (3,005) | (20,397) | ||||||||||||||||||||||||
Income before income taxes
|
561,191 | 487,344 | 416,982 | 73,847 | 70,362 | ||||||||||||||||||||||||
Income tax expense | 115,329 | 105,147 | 88,168 | 10,182 | 16,979 | ||||||||||||||||||||||||
Non-cash income tax benefit (1)
|
— | (13,467) | — | 13,467 | (13,467) | ||||||||||||||||||||||||
Net income | $ | 445,862 | $ | 395,664 | $ | 328,814 | $ | 50,198 | $ | 66,850 | |||||||||||||||||||
Consolidated distribution sales volumes — MMcf
|
308,833 | 291,650 | 315,476 | 17,183 | (23,826) | ||||||||||||||||||||||||
Consolidated distribution transportation volumes — MMcf
|
152,513 | 147,387 | 155,078 | 5,126 | (7,691) | ||||||||||||||||||||||||
Total consolidated distribution throughput — MMcf
|
461,346 | 439,037 | 470,554 | 22,309 | (31,517) | ||||||||||||||||||||||||
Consolidated distribution average cost of gas per Mcf sold
|
$ | 4.86 | $ | 3.67 | $ | 4.02 | $ | 1.19 | $ | (0.35) |
For the Fiscal Year Ended September 30 | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs. 2020 | 2020 vs. 2019 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Mid-Tex | $ | 310,293 | $ | 236,066 | $ | 202,050 | $ | 74,227 | $ | 34,016 | |||||||||||||||||||
Kentucky/Mid-States | 73,259 | 76,745 | 73,965 | (3,486) | 2,780 | ||||||||||||||||||||||||
Louisiana | 72,388 | 71,892 | 70,440 | 496 | 1,452 | ||||||||||||||||||||||||
West Texas | 51,104 | 52,493 | 44,902 | (1,389) | 7,591 | ||||||||||||||||||||||||
Mississippi | 65,337 | 55,938 | 46,229 | 9,399 | 9,709 | ||||||||||||||||||||||||
Colorado-Kansas | 32,778 | 34,039 | 34,362 | (1,261) | (323) | ||||||||||||||||||||||||
Other | 13,355 | 1,070 | (1,176) | 12,285 | 2,246 | ||||||||||||||||||||||||
Total | $ | 618,514 | $ | 528,243 | $ | 470,772 | $ | 90,271 | $ | 57,471 |
For the Fiscal Year Ended September 30 | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs. 2020 | 2020 vs. 2019 | |||||||||||||||||||||||||
(In thousands, unless otherwise noted) | |||||||||||||||||||||||||||||
Mid-Tex / Affiliate transportation revenue | $ | 497,730 | $ | 474,077 | $ | 428,586 | $ | 23,653 | $ | 45,491 | |||||||||||||||||||
Third-party transportation revenue | 127,874 | 127,444 | 129,930 | 430 | (2,486) | ||||||||||||||||||||||||
Other revenue | 11,743 | 7,818 | 8,508 | 3,925 | (690) | ||||||||||||||||||||||||
Total operating revenues | 637,347 | 609,339 | 567,024 | 28,008 | 42,315 | ||||||||||||||||||||||||
Total purchased gas cost | 1,582 | 1,548 | (360) | 34 | 1,908 | ||||||||||||||||||||||||
Operating expenses | 349,281 | 311,935 | 292,098 | 37,346 | 19,837 | ||||||||||||||||||||||||
Operating income | 286,484 | 295,856 | 275,286 | (9,372) | 20,570 | ||||||||||||||||||||||||
Other non-operating income | 18,549 | 8,436 | 1,163 | 10,113 | 7,273 | ||||||||||||||||||||||||
Interest charges | 46,925 | 44,840 | 43,122 | 2,085 | 1,718 | ||||||||||||||||||||||||
Income before income taxes | 258,108 | 259,452 | 233,327 | (1,344) | 26,125 | ||||||||||||||||||||||||
Income tax expense | 38,407 | 61,168 | 50,735 | (22,761) | 10,433 | ||||||||||||||||||||||||
Non-cash income tax benefit (1)
|
— | (7,495) | — | 7,495 | (7,495) | ||||||||||||||||||||||||
Net income | $ | 219,701 | $ | 205,779 | $ | 182,592 | $ | 13,922 | $ | 23,187 | |||||||||||||||||||
Gross pipeline transportation volumes — MMcf | 799,724 | 822,499 | 939,376 | (22,775) | (116,877) | ||||||||||||||||||||||||
Consolidated pipeline transportation volumes — MMcf
|
585,857 | 621,371 | 721,998 | (35,514) | (100,627) |
Planned Debt Issuance Date | Amount Hedged | Effective Interest Rate | ||||||||||||
(In thousands) | ||||||||||||||
Fiscal 2023 | 500,000 | 1.66 | % | |||||||||||
Fiscal 2024 | 450,000 | 1.80 | % | |||||||||||
Fiscal 2025 | 600,000 | 1.75 | % | |||||||||||
Fiscal 2026 | 300,000 | 2.16 | % | |||||||||||
$ | 1,850,000 |
September 30 | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||
Short-term debt | $ | — | — | % | $ | — | — | % | |||||||||||||||
Long-term debt (1)
|
7,330,657 | 48.1 | % | 4,531,944 | 40.0 | % | |||||||||||||||||
Shareholders’ equity (2)
|
7,906,889 | 51.9 | % | 6,791,203 | 60.0 | % | |||||||||||||||||
Total capitalization, including short-term debt | $ | 15,237,546 | 100.0 | % | $ | 11,323,147 | 100.0 | % |
For the Fiscal Year Ended September 30 | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs. 2020 | 2020 vs. 2019 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Total cash provided by (used in) | |||||||||||||||||||||||||||||
Operating activities | $ | (1,084,251) | $ | 1,037,999 | $ | 968,769 | $ | (2,122,250) | $ | 69,230 | |||||||||||||||||||
Investing activities | (1,963,655) | (1,925,518) | (1,683,660) | (38,137) | (241,858) | ||||||||||||||||||||||||
Financing activities | 3,143,821 | 883,777 | 725,670 | 2,260,044 | 158,107 | ||||||||||||||||||||||||
Change in cash and cash equivalents | 95,915 | (3,742) | 10,779 | 99,657 | (14,521) | ||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 20,808 | 24,550 | 13,771 | (3,742) | 10,779 | ||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 116,723 | $ | 20,808 | $ | 24,550 | $ | 95,915 | $ | (3,742) |
For the Fiscal Year Ended September 30 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Shares issued: | |||||||||||||||||
Direct Stock Purchase Plan | 79,921 | 107,989 | 110,063 | ||||||||||||||
Retirement Savings Plan and Trust | 84,265 | 78,941 | 81,456 | ||||||||||||||
1998 Long-Term Incentive Plan (LTIP) | 242,216 | 254,706 | 299,612 | ||||||||||||||
Equity Issuance (1)
|
6,130,875 | 6,101,916 | 7,574,111 | ||||||||||||||
Total shares issued | 6,537,277 | 6,543,552 | 8,065,242 |
S&P | Moody’s | |||||||||||||||||||||||||||||||||||||
Senior unsecured long-term debt | A- | A1 | ||||||||||||||||||||||||||||||||||||
Short-term debt | A-2 | P-1 | ||||||||||||||||||||||||||||||||||||
Outlook | Negative | Negative |
Payments Due by Period | |||||||||||||||||||||||||||||
Total |
Less than 1
year |
1-3 years | 3-5 years |
More than 5
years |
|||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Contractual Obligations | |||||||||||||||||||||||||||||
Long-term debt (1)
|
$ | 7,360,000 | $ | 200,000 | $ | 2,200,000 | $ | 10,000 | $ | 4,950,000 | |||||||||||||||||||
Interest charges (2)
|
4,268,559 | 221,325 | 418,664 | 412,654 | 3,215,916 | ||||||||||||||||||||||||
Finance leases (3)
|
29,809 | 1,342 | 2,753 | 2,846 | 22,868 | ||||||||||||||||||||||||
Operating leases (4)
|
271,074 | 41,822 | 68,043 | 39,359 | 121,850 | ||||||||||||||||||||||||
Financial instrument obligations (5)
|
5,269 | 5,269 | — | — | — | ||||||||||||||||||||||||
Pension and postretirement benefit plan contributions (6)
|
315,298 | 26,126 | 59,252 | 90,829 | 139,091 | ||||||||||||||||||||||||
Uncertain tax positions (7)
|
32,792 | — | 32,792 | — | — | ||||||||||||||||||||||||
Total contractual obligations
|
$ | 12,282,801 | $ | 495,884 | $ | 2,781,504 | $ | 555,688 | $ | 8,449,725 |
Fair value of contracts at September 30, 2020 | $ | 78,663 | |||
Contracts realized/settled | (64,205) | ||||
Fair value of new contracts | 13,136 | ||||
Other changes in value | 197,823 | ||||
Fair value of contracts at September 30, 2021 | 225,417 | ||||
Netting of cash collateral | — | ||||
Cash collateral and fair value of contracts at September 30, 2021 | $ | 225,417 |
Fair Value of Contracts at September 30, 2021 | |||||||||||||||||||||||||||||
Maturity in years | |||||||||||||||||||||||||||||
Source of Fair Value |
Less
than 1 |
1-3 | 4-5 |
Greater
than 5 |
Total
Fair Value |
||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Prices actively quoted | $ | 49,804 | $ | 94,522 | $ | 81,091 | $ | — | $ | 225,417 | |||||||||||||||||||
Prices based on models and other valuation methods | — | — | — | — | — | ||||||||||||||||||||||||
Total Fair Value | $ | 49,804 | $ | 94,522 | $ | 81,091 | $ | — | $ | 225,417 |
ITEM 7A. | Quantitative and Qualitative Disclosures About Market Risk. |
ITEM 8. | Financial Statements and Supplementary Data. |
Page | |||||
Financial statements and supplementary data: | |||||
Determination of Capital Costs
|
|||||
Description of the Matter
|
As more fully described in Note 2 to the financial statements, the Company capitalizes the direct and indirect costs of construction. Once a project is completed, it is placed into service and included in the Company’s rate base. Costs of maintenance and repairs that are not included in the Company’s rate base are charged to expense. For the year ended September 30, 2021, the Company capitalized approximately $2.0 billion of construction-related costs for regulated property, plant and equipment.
Auditing management’s identification of capital additions and maintenance and repairs expense involved significant effort and auditor judgment. These amounts have both a higher magnitude and a higher likelihood of potential misstatement. As a cost-based, rate-regulated entity, the rates charged to customers are designed to recover the entity’s costs and provide a rate of return on rate base. Net property, plant and equipment is the most significant component of the Company’s rate base. As a result, inappropriate capitalization of costs could affect the amount, timing and classification of revenues and expenses in the financial statements.
|
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company’s controls over the initial determination and approval of expenditures for either capital additions or maintenance and repair. For example, we selected a sample of projects initiated during the year to evaluate the effectiveness of management’s review controls to determine the proper categorization of project expenditures as either capitalizable costs or current-period expense.
Our audit procedures included, among others, testing a sample of projects initiated during the year, including the evaluation of the nature of the project, with Company personnel outside of accounting and financial reporting. For example, we evaluated project setup through inspection of each project’s description for compliance with the Company’s capitalization policy as described in Note 2 and a series of inquiries of the project approver to understand how they assessed whether projects should be treated as capital or expense. Other audit procedures included evaluating whether the descriptions and amounts included on third-party invoices either support or contradict the project classification as capital, evaluating the appropriateness of individuals capitalizing direct labor charges to projects by assessing the relevance of their job function to the capital project, and recalculating other overhead costs capitalized to projects.
|
September 30 | |||||||||||
2021 | 2020 | ||||||||||
(In thousands,
except share data) |
|||||||||||
ASSETS | |||||||||||
Property, plant and equipment | $ | 17,258,547 | $ | 15,539,166 | |||||||
Construction in progress | 626,551 | 418,055 | |||||||||
17,885,098 | 15,957,221 | ||||||||||
Less accumulated depreciation and amortization | 2,821,128 | 2,601,874 | |||||||||
Net property, plant and equipment | 15,063,970 | 13,355,347 | |||||||||
Current assets | |||||||||||
Cash and cash equivalents | 116,723 | 20,808 | |||||||||
Accounts receivable, less allowance for uncollectible accounts of $64,471 in 2021 and $29,949 in 2020
|
342,967 | 230,595 | |||||||||
Gas stored underground | 178,116 | 111,950 | |||||||||
Other current assets (See Note 9)
|
2,200,909 | 107,905 | |||||||||
Total current assets | 2,838,715 | 471,258 | |||||||||
Goodwill | 731,257 | 731,257 | |||||||||
Deferred charges and other assets (See Note 9)
|
974,720 | 801,170 | |||||||||
$ | 19,608,662 | $ | 15,359,032 | ||||||||
CAPITALIZATION AND LIABILITIES | |||||||||||
Shareholders’ equity | |||||||||||
Common stock, no par value (stated at $0.005 per share); 200,000,000 shares authorized; issued and outstanding: 2021 — 132,419,754 shares; 2020 — 125,882,477 shares
|
$ | 662 | $ | 629 | |||||||
Additional paid-in capital | 5,023,751 | 4,377,149 | |||||||||
Accumulated other comprehensive income (loss) | 69,803 | (57,589) | |||||||||
Retained earnings | 2,812,673 | 2,471,014 | |||||||||
Shareholders’ equity | 7,906,889 | 6,791,203 | |||||||||
Long-term debt | 4,930,205 | 4,531,779 | |||||||||
Total capitalization | 12,837,094 | 11,322,982 | |||||||||
Commitments and contingencies (See Note 13)
|
|||||||||||
Current liabilities | |||||||||||
Accounts payable and accrued liabilities | 423,222 | 235,775 | |||||||||
Other current liabilities | 686,681 | 546,461 | |||||||||
Current maturities of long-term debt | 2,400,452 | 165 | |||||||||
Total current liabilities | 3,510,355 | 782,401 | |||||||||
Deferred income taxes | 1,705,809 | 1,456,569 | |||||||||
Regulatory excess deferred taxes (See Note 14)
|
549,227 | 697,764 | |||||||||
Regulatory cost of removal obligation | 468,688 | 457,188 | |||||||||
Deferred credits and other liabilities | 537,489 | 642,128 | |||||||||
$ | 19,608,662 | $ | 15,359,032 |
Year Ended September 30 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Operating revenues | |||||||||||||||||
Distribution segment | $ | 3,241,973 | $ | 2,626,993 | $ | 2,745,461 | |||||||||||
Pipeline and storage segment | 637,347 | 609,339 | 567,024 | ||||||||||||||
Intersegment eliminations | (471,830) | (415,195) | (410,637) | ||||||||||||||
Total operating revenues | 3,407,490 | 2,821,137 | 2,901,848 | ||||||||||||||
Purchased gas cost | |||||||||||||||||
Distribution segment | 1,501,695 | 1,071,227 | 1,268,591 | ||||||||||||||
Pipeline and storage segment | 1,582 | 1,548 | (360) | ||||||||||||||
Intersegment eliminations | (470,560) | (413,921) | (409,394) | ||||||||||||||
Total purchased gas cost | 1,032,717 | 658,854 | 858,837 | ||||||||||||||
Operation and maintenance expense | 679,019 | 629,601 | 630,308 | ||||||||||||||
Depreciation and amortization expense | 477,977 | 429,828 | 391,456 | ||||||||||||||
Taxes, other than income | 312,779 | 278,755 | 275,189 | ||||||||||||||
Operating income | 904,998 | 824,099 | 746,058 | ||||||||||||||
Other non-operating income (expense)
|
(2,145) | 7,171 | 7,404 | ||||||||||||||
Interest charges | 83,554 | 84,474 | 103,153 | ||||||||||||||
Income before income taxes | 819,299 | 746,796 | 650,309 | ||||||||||||||
Income tax expense | 153,736 | 145,353 | 138,903 | ||||||||||||||
Net Income | $ | 665,563 | $ | 601,443 | $ | 511,406 | |||||||||||
Basic net income per share | $ | 5.12 | $ | 4.89 | $ | 4.36 | |||||||||||
Diluted net income per share | $ | 5.12 | $ | 4.89 | $ | 4.35 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 129,779 | 122,788 | 117,200 | ||||||||||||||
Diluted | 129,834 | 122,872 | 117,461 | ||||||||||||||
Net income | $ | 665,563 | $ | 601,443 | $ | 511,406 | |||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||
Net unrealized holding gains (losses) on available-for-sale securities, net of tax of $(55), $32 and $64
|
(191) | 106 | 218 | ||||||||||||||
Cash flow hedges: | |||||||||||||||||
Amortization and unrealized gains (losses) on interest rate agreements, net of tax of $36,875, $17,198 and $(6,782)
|
127,583 | 56,888 | (22,944) | ||||||||||||||
Total other comprehensive income (loss) | 127,392 | 56,994 | (22,726) | ||||||||||||||
Total comprehensive income | $ | 792,955 | $ | 658,437 | $ | 488,680 |
Common stock |
Additional
Paid-in Capital |
Accumulated
Other Comprehensive Income (Loss) |
Retained
Earnings |
Total | |||||||||||||||||||||||||||||||
Number of
Shares |
Stated
Value |
||||||||||||||||||||||||||||||||||
(In thousands, except share and per share data) | |||||||||||||||||||||||||||||||||||
Balance, September 30, 2018 | 111,273,683 | $ | 556 | $ | 2,974,926 | $ | (83,647) | $ | 1,878,116 | $ | 4,769,951 | ||||||||||||||||||||||||
Net income | — | — | — | — | 511,406 | 511,406 | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (22,726) | — | (22,726) | |||||||||||||||||||||||||||||
Cash dividends ($2.10 per share)
|
— | — | — | — | (245,717) | (245,717) | |||||||||||||||||||||||||||||
Cumulative effect of accounting change
|
— | — | — | (8,210) | 8,210 | — | |||||||||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||||||||||||||
Public offering | 7,574,111 | 38 | 694,065 | — | — | 694,103 | |||||||||||||||||||||||||||||
Direct stock purchase plan | 110,063 | 1 | 11,070 | — | — | 11,071 | |||||||||||||||||||||||||||||
Retirement savings plan | 81,456 | — | 8,252 | — | — | 8,252 | |||||||||||||||||||||||||||||
1998 Long-term incentive plan | 299,612 | 2 | 2,946 | — | — | 2,948 | |||||||||||||||||||||||||||||
Employee stock-based compensation | — | — | 20,935 | — | — | 20,935 | |||||||||||||||||||||||||||||
Balance, September 30, 2019 | 119,338,925 | 597 | 3,712,194 | (114,583) | 2,152,015 | 5,750,223 | |||||||||||||||||||||||||||||
Net income | — | — | — | — | 601,443 | 601,443 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 56,994 | — | 56,994 | |||||||||||||||||||||||||||||
Cash dividends ($2.30 per share)
|
— | — | — | — | (282,444) | (282,444) | |||||||||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||||||||||||||
Public offering | 6,101,916 | 30 | 624,272 | — | — | 624,302 | |||||||||||||||||||||||||||||
Direct stock purchase plan | 107,989 | 1 | 11,325 | — | — | 11,326 | |||||||||||||||||||||||||||||
Retirement savings plan | 78,941 | — | 8,222 | — | — | 8,222 | |||||||||||||||||||||||||||||
1998 Long-term incentive plan | 254,706 | 1 | 2,748 | — | — | 2,749 | |||||||||||||||||||||||||||||
Employee stock-based compensation | — | — | 18,388 | — | — | 18,388 | |||||||||||||||||||||||||||||
Balance, September 30, 2020 | 125,882,477 | 629 | 4,377,149 | (57,589) | 2,471,014 | 6,791,203 | |||||||||||||||||||||||||||||
Net income | — | — | — | — | 665,563 | 665,563 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 127,392 | — | 127,392 | |||||||||||||||||||||||||||||
Cash dividends ($2.50 per share)
|
— | — | — | — | (323,904) | (323,904) | |||||||||||||||||||||||||||||
Common stock issued: | |||||||||||||||||||||||||||||||||||
Public offering | 6,130,875 | 31 | 606,636 | — | — | 606,667 | |||||||||||||||||||||||||||||
Direct stock purchase plan | 79,921 | — | 7,715 | — | — | 7,715 | |||||||||||||||||||||||||||||
Retirement savings plan | 84,265 | 1 | 8,125 | — | — | 8,126 | |||||||||||||||||||||||||||||
1998 Long-term incentive plan | 242,216 | 1 | 3,091 | — | — | 3,092 | |||||||||||||||||||||||||||||
Employee stock-based compensation | — | — | 21,035 | — | — | 21,035 | |||||||||||||||||||||||||||||
Balance, September 30, 2021 | 132,419,754 | $ | 662 | $ | 5,023,751 | $ | 69,803 | $ | 2,812,673 | $ | 7,906,889 |
Year Ended September 30 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net income | $ | 665,563 | $ | 601,443 | $ | 511,406 | |||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|||||||||||||||||
Depreciation and amortization
|
477,977 | 429,828 | 391,456 | ||||||||||||||
Deferred income taxes | 155,355 | 155,322 | 132,004 | ||||||||||||||
One-time income tax benefit | — | (20,962) | — | ||||||||||||||
Stock-based compensation | 11,255 | 9,583 | 11,121 | ||||||||||||||
Amortization of debt issuance costs | 14,030 | 11,543 | 9,464 | ||||||||||||||
Equity component of AFUDC | (32,749) | (23,493) | (11,165) | ||||||||||||||
Other | 3,731 | 8,411 | 1,169 | ||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
(Increase) decrease in accounts receivable
|
(113,665) | 7,167 | 18,724 | ||||||||||||||
(Increase) decrease in gas stored underground
|
(66,166) | 18,188 | 35,594 | ||||||||||||||
Increase in Winter Storm Uri current regulatory asset (see Note 9) | (2,003,659) | — | — | ||||||||||||||
Increase in other current assets
|
(84,705) | (35,878) | (26,590) | ||||||||||||||
Increase in Winter Storm Uri long-term regulatory asset (see Note 9) | (76,652) | — | — | ||||||||||||||
(Increase) decrease in deferred charges and other assets
|
136,809 | (31,935) | (58,403) | ||||||||||||||
Increase in accounts payable and accrued liabilities
|
104,242 | 7,359 | 9,908 | ||||||||||||||
Decrease in other current liabilities
|
(166,268) | (129,543) | (103,895) | ||||||||||||||
Increase (decrease) in deferred credits and other liabilities
|
(109,349) | 30,966 | 47,976 | ||||||||||||||
Net cash provided by (used in) operating activities
|
(1,084,251) | 1,037,999 | 968,769 | ||||||||||||||
CASH FLOWS USED IN INVESTING ACTIVITIES | |||||||||||||||||
Capital expenditures | (1,969,540) | (1,935,676) | (1,693,477) | ||||||||||||||
Proceeds from the sale of discontinued operations | — | — | 4,000 | ||||||||||||||
Purchases of debt and equity securities | (49,879) | (50,517) | (29,153) | ||||||||||||||
Proceeds from sale of debt and equity securities | 14,957 | 32,339 | 6,070 | ||||||||||||||
Maturities of debt securities | 28,850 | 18,669 | 20,299 | ||||||||||||||
Other, net | 11,957 | 9,667 | 8,601 | ||||||||||||||
Net cash used in investing activities
|
(1,963,655) | (1,925,518) | (1,683,660) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Net decrease in short-term debt
|
— | (464,915) | (110,865) | ||||||||||||||
Proceeds from issuance of long-term debt, net of premium/discount | 2,797,346 | 999,450 | 1,045,221 | ||||||||||||||
Net proceeds from equity offering | 606,667 | 624,302 | 694,103 | ||||||||||||||
Issuance of common stock through stock purchase and employee retirement plans
|
15,841 | 19,548 | 19,323 | ||||||||||||||
Settlement of interest rate swaps | 62,159 | (4,426) | (90,141) | ||||||||||||||
Repayment of long-term debt | — | — | (575,000) | ||||||||||||||
Cash dividends paid | (323,904) | (282,444) | (245,717) | ||||||||||||||
Debt issuance costs | (14,288) | (7,738) | (11,254) | ||||||||||||||
Net cash provided by financing activities
|
3,143,821 | 883,777 | 725,670 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
95,915 | (3,742) | 10,779 | ||||||||||||||
Cash and cash equivalents at beginning of year | 20,808 | 24,550 | 13,771 | ||||||||||||||
Cash and cash equivalents at end of year | $ | 116,723 | $ | 20,808 | $ | 24,550 | |||||||||||
Division | Service Area | |||||||
Atmos Energy Colorado-Kansas Division | Colorado, Kansas | |||||||
Atmos Energy Kentucky/Mid-States Division |
Kentucky, Tennessee, Virginia(1)
|
|||||||
Atmos Energy Louisiana Division | Louisiana | |||||||
Atmos Energy Mid-Tex Division | Texas, including the Dallas/Fort Worth metropolitan area | |||||||
Atmos Energy Mississippi Division | Mississippi | |||||||
Atmos Energy West Texas Division | West Texas |
September 30 | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Regulatory assets: | |||||||||||
Pension and postretirement benefit costs | $ | 45,922 | $ | 149,089 | |||||||
Infrastructure mechanisms (1)
|
222,795 | 183,943 | |||||||||
Winter Storm Uri incremental costs (2)
|
2,100,728 | — | |||||||||
Deferred gas costs | 66,395 | 40,593 | |||||||||
Regulatory excess deferred taxes (3)
|
45,370 | — | |||||||||
Recoverable loss on reacquired debt | 3,789 | 4,894 | |||||||||
Deferred pipeline record collection costs | 32,099 | 29,839 | |||||||||
Other | 4,343 | 6,283 | |||||||||
$ | 2,521,441 | $ | 414,641 | ||||||||
Regulatory liabilities: | |||||||||||
Regulatory excess deferred taxes (3)
|
$ | 705,084 | $ | 718,651 | |||||||
Regulatory cost of removal obligation | 541,511 | 531,096 | |||||||||
Deferred gas costs | 52,553 | 19,985 | |||||||||
Asset retirement obligation | 18,373 | 20,348 | |||||||||
APT annual adjustment mechanism | 31,110 | 57,379 | |||||||||
Pension and postretirement benefit costs | 56,201 | — | |||||||||
Other | 19,363 | 19,554 | |||||||||
$ | 1,424,195 | $ | 1,367,013 |
2021 | 2020 | 2019 | ||||||||||||||||||
Component of AFUDC | Statement of Comprehensive Income Location | (In thousands) | ||||||||||||||||||
Debt | Interest charges | $ | 11,414 | $ | 8,436 | $ | 7,643 | |||||||||||||
Equity | Other non-operating income (expense) | 32,749 | 23,493 | 11,165 | ||||||||||||||||
$ | 44,163 | $ | 31,929 | $ | 18,808 |
Year Ended September 30, 2021 | |||||||||||||||||||||||||||||
Distribution | Pipeline and Storage | Eliminations | Consolidated | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Operating revenues from external parties | $ | 3,238,753 | $ | 168,737 | $ | — | $ | 3,407,490 | |||||||||||||||||||||
Intersegment revenues | 3,220 | 468,610 | (471,830) | — | |||||||||||||||||||||||||
Total operating revenues | 3,241,973 | 637,347 | (471,830) | 3,407,490 | |||||||||||||||||||||||||
Purchased gas cost | 1,501,695 | 1,582 | (470,560) | 1,032,717 | |||||||||||||||||||||||||
Operation and maintenance expense | 501,209 | 179,080 | (1,270) | 679,019 | |||||||||||||||||||||||||
Depreciation and amortization expense | 345,481 | 132,496 | — | 477,977 | |||||||||||||||||||||||||
Taxes, other than income | 275,074 | 37,705 | — | 312,779 | |||||||||||||||||||||||||
Operating income | 618,514 | 286,484 | — | 904,998 | |||||||||||||||||||||||||
Other non-operating income (expense) | (20,694) | 18,549 | — | (2,145) | |||||||||||||||||||||||||
Interest charges | 36,629 | 46,925 | — | 83,554 | |||||||||||||||||||||||||
Income before income taxes
|
561,191 | 258,108 | — | 819,299 | |||||||||||||||||||||||||
Income tax expense | 115,329 | 38,407 | — | 153,736 | |||||||||||||||||||||||||
Net income | $ | 445,862 | $ | 219,701 | $ | — | $ | 665,563 | |||||||||||||||||||||
Capital expenditures | $ | 1,454,195 | $ | 515,345 | $ | — | $ | 1,969,540 |
Year Ended September 30, 2020 | |||||||||||||||||||||||
Distribution | Pipeline and Storage | Eliminations | Consolidated | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Operating revenues from external parties | $ | 2,624,251 | $ | 196,886 | $ | — | $ | 2,821,137 | |||||||||||||||
Intersegment revenues | 2,742 | 412,453 | (415,195) | — | |||||||||||||||||||
Total operating revenues | 2,626,993 | 609,339 | (415,195) | 2,821,137 | |||||||||||||||||||
Purchased gas cost | 1,071,227 | 1,548 | (413,921) | 658,854 | |||||||||||||||||||
Operation and maintenance expense | 472,760 | 158,115 | (1,274) | 629,601 | |||||||||||||||||||
Depreciation and amortization expense | 309,582 | 120,246 | — | 429,828 | |||||||||||||||||||
Taxes, other than income | 245,181 | 33,574 | — | 278,755 | |||||||||||||||||||
Operating income | 528,243 | 295,856 | — | 824,099 | |||||||||||||||||||
Other non-operating income (expense) | (1,265) | 8,436 | — | 7,171 | |||||||||||||||||||
Interest charges | 39,634 | 44,840 | — | 84,474 | |||||||||||||||||||
Income before income taxes
|
487,344 | 259,452 | — | 746,796 | |||||||||||||||||||
Income tax expense | 91,680 | 53,673 | — | 145,353 | |||||||||||||||||||
Net income | $ | 395,664 | $ | 205,779 | $ | — | $ | 601,443 | |||||||||||||||
Capital expenditures | $ | 1,466,631 | $ | 469,045 | $ | — | $ | 1,935,676 |
Year Ended September 30, 2019 | |||||||||||||||||||||||
Distribution | Pipeline and Storage | Eliminations | Consolidated | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Operating revenues from external parties | $ | 2,742,824 | $ | 159,024 | $ | — | $ | 2,901,848 | |||||||||||||||
Intersegment revenues | 2,637 | 408,000 | (410,637) | — | |||||||||||||||||||
Total operating revenues | 2,745,461 | 567,024 | (410,637) | 2,901,848 | |||||||||||||||||||
Purchased gas cost | 1,268,591 | (360) | (409,394) | 858,837 | |||||||||||||||||||
Operation and maintenance expense | 480,222 | 151,329 | (1,243) | 630,308 | |||||||||||||||||||
Depreciation and amortization expense | 283,697 | 107,759 | — | 391,456 | |||||||||||||||||||
Taxes, other than income | 242,179 | 33,010 | — | 275,189 | |||||||||||||||||||
Operating income | 470,772 | 275,286 | — | 746,058 | |||||||||||||||||||
Other non-operating income | 6,241 | 1,163 | — | 7,404 | |||||||||||||||||||
Interest charges | 60,031 | 43,122 | — | 103,153 | |||||||||||||||||||
Income before income taxes
|
416,982 | 233,327 | — | 650,309 | |||||||||||||||||||
Income tax expense | 88,168 | 50,735 | — | 138,903 | |||||||||||||||||||
Net income | $ | 328,814 | $ | 182,592 | $ | — | $ | 511,406 | |||||||||||||||
Capital expenditures | $ | 1,274,613 | $ | 418,864 | $ | — | $ | 1,693,477 |
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Distribution revenues: | |||||||||||||||||
Gas sales revenues: | |||||||||||||||||
Residential | $ | 2,117,272 | $ | 1,717,070 | $ | 1,733,548 | |||||||||||
Commercial | 838,382 | 654,963 | 711,284 | ||||||||||||||
Industrial | 113,171 | 89,641 | 118,046 | ||||||||||||||
Public authority and other | 50,369 | 42,007 | 42,613 | ||||||||||||||
Total gas sales revenues | 3,119,194 | 2,503,681 | 2,605,491 | ||||||||||||||
Transportation revenues | 105,554 | 97,441 | 95,629 | ||||||||||||||
Other gas revenues | 14,005 | 23,129 | 41,704 | ||||||||||||||
Total distribution revenues | 3,238,753 | 2,624,251 | 2,742,824 | ||||||||||||||
Pipeline and storage revenues | 168,737 | 196,886 | 159,024 | ||||||||||||||
Total operating revenues | $ | 3,407,490 | $ | 2,821,137 | $ | 2,901,848 |
September 30, 2021 | |||||||||||||||||||||||
Distribution | Pipeline and Storage | Eliminations | Consolidated | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Property, plant and equipment, net | $ | 11,232,649 | $ | 3,831,321 | $ | — | $ | 15,063,970 | |||||||||||||||
Total assets | $ | 18,847,266 | $ | 4,076,844 | $ | (3,315,448) | $ | 19,608,662 | |||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Distribution | Pipeline and Storage | Eliminations | Consolidated | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Property, plant and equipment, net | $ | 9,944,978 | $ | 3,410,369 | $ | — | $ | 13,355,347 | |||||||||||||||
Total assets | $ | 14,578,176 | $ | 3,647,907 | $ | (2,867,051) | $ | 15,359,032 | |||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Basic Earnings Per Share | |||||||||||||||||
Net Income | $ | 665,563 | $ | 601,443 | $ | 511,406 | |||||||||||
Less: Income allocated to participating securities | 465 | 444 | 416 | ||||||||||||||
Net Income available to common shareholders | $ | 665,098 | $ | 600,999 | $ | 510,990 | |||||||||||
Basic weighted average shares outstanding | 129,779 | 122,788 | 117,200 | ||||||||||||||
Net Income per share — Basic | $ | 5.12 | $ | 4.89 | $ | 4.36 | |||||||||||
Diluted Earnings Per Share | |||||||||||||||||
Net Income available to common shareholders | $ | 665,098 | $ | 600,999 | $ | 510,990 | |||||||||||
Effect of dilutive shares | — | — | — | ||||||||||||||
Net Income available to common shareholders | $ | 665,098 | $ | 600,999 | $ | 510,990 | |||||||||||
Basic weighted average shares outstanding | 129,779 | 122,788 | 117,200 | ||||||||||||||
Dilutive shares | 55 | 84 | 261 | ||||||||||||||
Diluted weighted average shares outstanding | 129,834 | 122,872 | 117,461 | ||||||||||||||
Net Income per share — Diluted | $ | 5.12 | $ | 4.89 | $ | 4.35 | |||||||||||
Year Ended September 30, 2021 | |||||||||||
Distribution | Pipeline and Storage | ||||||||||
(In thousands) | |||||||||||
Gas sales revenues: | |||||||||||
Residential | $ | 2,129,704 | $ | — | |||||||
Commercial | 841,145 | — | |||||||||
Industrial | 113,091 | — | |||||||||
Public authority and other | 50,565 | — | |||||||||
Total gas sales revenues | 3,134,505 | — | |||||||||
Transportation revenues | 107,822 | 646,416 | |||||||||
Miscellaneous revenues | 10,971 | 14,141 | |||||||||
Revenues from contracts with customers | 3,253,298 | 660,557 | |||||||||
Alternative revenue program revenues (1)
|
(13,303) | (23,210) | |||||||||
Other revenues | 1,978 | — | |||||||||
Total operating revenues | $ | 3,241,973 | $ | 637,347 |
Year Ended September 30, 2020 | |||||||||||
Distribution | Pipeline and Storage | ||||||||||
Gas sales revenues: | |||||||||||
Residential | $ | 1,704,444 | $ | — | |||||||
Commercial | 650,396 | — | |||||||||
Industrial | 89,467 | — | |||||||||
Public authority and other | 41,339 | — | |||||||||
Total gas sales revenues | 2,485,646 | — | |||||||||
Transportation revenues | 99,435 | 636,819 | |||||||||
Miscellaneous revenues | 19,085 | 9,754 | |||||||||
Revenues from contracts with customers | 2,604,166 | 646,573 | |||||||||
Alternative revenue program revenues (1)
|
20,856 | (37,234) | |||||||||
Other revenues | 1,971 | — | |||||||||
Total operating revenues | $ | 2,626,993 | $ | 609,339 |
Year Ended September 30, 2019 | |||||||||||
Distribution | Pipeline and Storage | ||||||||||
Gas sales revenues: | |||||||||||
Residential | $ | 1,755,229 | $ | — | |||||||
Commercial | 716,757 | — | |||||||||
Industrial | 118,060 | — | |||||||||
Public authority and other | 42,796 | — | |||||||||
Total gas sales revenues | 2,632,842 | — | |||||||||
Transportation revenues | 97,495 | 623,808 | |||||||||
Miscellaneous revenues | 26,050 | 8,060 | |||||||||
Revenues from contracts with customers | 2,756,387 | 631,868 | |||||||||
Alternative revenue program revenues (1)
|
(12,958) | (64,844) | |||||||||
Other revenues | 2,032 | — | |||||||||
Total operating revenues | $ | 2,745,461 | $ | 567,024 |
Allowance for uncollectible accounts | |||||
(In thousands) | |||||
Balance, September 30, 2018
|
$ | 14,795 | |||
Current period provisions | 18,106 | ||||
Write-offs charged against allowance | (19,575) | ||||
Recoveries of amounts previously written off | 2,573 | ||||
Balance, September 30, 2019
|
15,899 | ||||
Current period provisions | 24,796 | ||||
Write-offs charged against allowance | (12,698) | ||||
Recoveries of amounts previously written off | 1,952 | ||||
Balance, September 30, 2020
|
29,949 | ||||
Current period provisions | 43,807 | ||||
Write-offs charged against allowance | (11,019) | ||||
Recoveries of amounts previously written off | 1,734 | ||||
Balance, September 30, 2021
|
$ | 64,471 |
September 30, 2021 | September 30, 2020 | ||||||||||
Weighted average remaining lease term (years) | |||||||||||
Finance leases | 19.0 | 19.1 | |||||||||
Operating leases | 10.2 | 10.6 |
September 30, 2021 | September 30, 2020 | ||||||||||
Weighted average discount rate | |||||||||||
Finance leases | 5.7 | % | 8.0 | % | |||||||
Operating leases | 2.8 | % | 2.9 | % |
September 30, 2021 | September 30, 2020 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Finance lease cost | $ | 1,334 | $ | 622 | |||||||||||||
Operating lease cost | 42,349 | 40,887 | |||||||||||||||
Total lease cost | $ | 43,683 | $ | 41,509 |
Balance Sheet Classification | September 30, 2021 | September 30, 2020 | ||||||||||||
(In thousands) | ||||||||||||||
Assets | ||||||||||||||
Finance leases | Net Property, Plant and Equipment | $ | 18,252 | $ | 8,480 | |||||||||
Operating leases | Deferred charges and other assets | 222,446 | 227,146 | |||||||||||
Total right-of-use assets | $ | 240,698 | $ | 235,626 | ||||||||||
Liabilities | ||||||||||||||
Current | ||||||||||||||
Finance leases | Current maturities of long-term debt | $ | 452 | $ | 165 | |||||||||
Operating leases | Other current liabilities | 37,688 | 35,716 | |||||||||||
Noncurrent | ||||||||||||||
Finance leases | Long-term debt | 18,287 | 8,466 | |||||||||||
Operating leases | Deferred credits and other liabilities | 194,745 | 201,071 | |||||||||||
Total lease liabilities | $ | 251,172 | $ | 245,418 | ||||||||||
September 30, 2021 | September 30, 2020 | |||||||||||||
(In thousands) | ||||||||||||||
Cash paid amounts included in the measurement of lease liabilities | ||||||||||||||
Operating cash flows used for operating leases | $ | 42,013 | $ | 37,758 | ||||||||||
Right-of-use assets obtained in exchange for lease obligations | ||||||||||||||
Finance leases | $ | 10,333 | $ | 6,083 | ||||||||||
Operating leases | $ | 25,690 | $ | 34,169 |
Total | Finance Leases | Operating Leases | |||||||||
(In thousands) | |||||||||||
2022 | $ | 43,164 | $ | 1,342 | $ | 41,822 | |||||
2023 | 38,690 | 1,365 | 37,325 | ||||||||
2024 | 32,106 | 1,388 | 30,718 | ||||||||
2025 | 23,927 | 1,411 | 22,516 | ||||||||
2026 | 18,278 | 1,435 | 16,843 | ||||||||
Thereafter | 144,718 | 22,868 | 121,850 | ||||||||
Total lease payments | 300,883 | 29,809 | 271,074 | ||||||||
Less: Imputed interest | 49,711 | 11,070 | 38,641 | ||||||||
Total | $ | 251,172 | $ | 18,739 | $ | 232,433 | |||||
Reported as of September 30, 2021
|
|||||||||||
Short-term lease liabilities | $ | 38,140 | $ | 452 | $ | 37,688 | |||||
Long-term lease liabilities | 213,032 | 18,287 | 194,745 | ||||||||
Total lease liabilities | $ | 251,172 | $ | 18,739 | $ | 232,433 |
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Unsecured 0.625% Senior Notes, due 2023
|
$ | 1,100,000 | $ | — | |||||||
Unsecured 3.00% Senior Notes, due 2027
|
500,000 | 500,000 | |||||||||
Unsecured 2.625% Senior Notes, due 2029
|
300,000 | 300,000 | |||||||||
Unsecured 1.50% Senior Notes, due 2031
|
600,000 | — | |||||||||
Unsecured 5.95% Senior Notes, due 2034
|
200,000 | 200,000 | |||||||||
Unsecured 5.50% Senior Notes, due 2041
|
400,000 | 400,000 | |||||||||
Unsecured 4.15% Senior Notes, due 2043
|
500,000 | 500,000 | |||||||||
Unsecured 4.125% Senior Notes, due 2044
|
750,000 | 750,000 | |||||||||
Unsecured 4.30% Senior Notes, due 2048
|
600,000 | 600,000 | |||||||||
Unsecured 4.125% Senior Notes, due 2049
|
450,000 | 450,000 | |||||||||
Unsecured 3.375% Senior Notes, due 2049
|
500,000 | 500,000 | |||||||||
Floating-rate term loan, due April 2022
|
200,000 | 200,000 | |||||||||
Floating-rate Senior Notes, due 2023
|
1,100,000 | — | |||||||||
Medium term Series A notes, 1995-1, 6.67%, due 2025
|
10,000 | 10,000 | |||||||||
Unsecured 6.75% Debentures, due 2028
|
150,000 | 150,000 | |||||||||
Finance lease obligations (see Note 6)
|
18,739 | 8,631 | |||||||||
Total long-term debt | 7,378,739 | 4,568,631 | |||||||||
Less: | |||||||||||
Net original issue (premium) / discount on unsecured senior notes and debentures | 2,811 | 583 | |||||||||
Debt issuance cost | 45,271 | 36,104 | |||||||||
Current maturities | 2,400,452 | 165 | |||||||||
$ | 4,930,205 | $ | 4,531,779 |
2022 | $ | 2,400,000 | |||
2023 | — | ||||
2024 | — | ||||
2025 | 10,000 | ||||
2026 | — | ||||
Thereafter | 4,950,000 | ||||
$ | 7,360,000 |
Maturity | Shares Available |
Net Proceeds Available
(In Thousands) |
Forward Price | ||||||||||||||
June 30, 2022 | 1,681,910 | $ | 166,989 | 99.29 | |||||||||||||
September 30, 2022 | 1,389,814 | 134,995 | 97.13 | ||||||||||||||
Total | 3,071,724 | $ | 301,984 | 98.31 |
Available-
for-Sale Securities |
Interest Rate
Agreement Cash Flow Hedges |
Total | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
September 30, 2020 | $ | 238 | $ | (57,827) | $ | (57,589) | |||||||||||||||||
Other comprehensive income (loss) before reclassifications | (191) | 123,017 | 122,826 | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | 4,566 | 4,566 | ||||||||||||||||||||
Net current-period other comprehensive income (loss) | (191) | 127,583 | 127,392 | ||||||||||||||||||||
September 30, 2021 | $ | 47 | $ | 69,756 | $ | 69,803 |
Available-
for-Sale Securities |
Interest Rate
Agreement Cash Flow Hedges |
Total | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
September 30, 2019 | $ | 132 | $ | (114,715) | $ | (114,583) | |||||||||||||||||
Other comprehensive income before reclassifications | 108 | 53,241 | 53,349 | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income
|
(2) | 3,647 | 3,645 | ||||||||||||||||||||
Net current-period other comprehensive income | 106 | 56,888 | 56,994 | ||||||||||||||||||||
September 30, 2020 | $ | 238 | $ | (57,827) | $ | (57,589) |
Defined
Benefit Plan |
Supplemental
Executive Retirement Plans |
Postretirement
Plans |
Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||
Unrecognized prior service (credit) cost | $ | (353) | $ | — | $ | (64,313) | $ | (64,666) | |||||||||||||||
Unrecognized actuarial (gain) loss | (3,060) | 39,666 | (28,141) | 8,465 | |||||||||||||||||||
$ | (3,413) | $ | 39,666 | $ | (92,454) | $ | (56,201) | ||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Unrecognized prior service (credit) cost | $ | (584) | $ | — | $ | 951 | $ | 367 | |||||||||||||||
Unrecognized actuarial loss | 78,082 | 51,045 | 9,110 | 138,237 | |||||||||||||||||||
$ | 77,498 | $ | 51,045 | $ | 10,061 | $ | 138,604 |
Targeted
Allocation Range |
Actual
Allocation September 30 |
||||||||||||||||
Security Class | 2021 | 2020 | |||||||||||||||
Domestic equities |
35%-55%
|
44.5% | 45.3% | ||||||||||||||
International equities |
10%-20%
|
16.9% | 15.6% | ||||||||||||||
Fixed income |
5%-30%
|
16.0% | 17.0% | ||||||||||||||
Company stock |
0%-15%
|
10.6% | 13.0% | ||||||||||||||
Other assets |
0%-20%
|
12.0% | 9.1% |
Pension
Liability |
Pension Cost | ||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||
Discount rate | 2.97 | % | 2.80 | % | 2.80 | % | 3.29 | % | 4.38 | % | |||||||||||||||||||
Rate of compensation increase | 3.50 | % | 3.50 | % | 3.50 | % | 3.50 | % | 3.50 | % | |||||||||||||||||||
Expected return on plan assets | 6.25 | % | 6.25 | % | 6.25 | % | 6.50 | % | 6.75 | % | |||||||||||||||||||
Interest crediting rate | 4.69 | % | 4.69 | % | 4.69 | % | 4.69 | % | 4.69 | % |
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Accumulated benefit obligation | $ | 558,639 | $ | 565,755 | |||||||
Change in projected benefit obligation: | |||||||||||
Benefit obligation at beginning of year | $ | 604,221 | $ | 577,270 | |||||||
Service cost | 17,369 | 17,551 | |||||||||
Interest cost | 16,883 | 19,028 | |||||||||
Actuarial (gain) loss | (7,561) | 22,898 | |||||||||
Benefits paid | (34,883) | (32,526) | |||||||||
Benefit obligation at end of year | 596,029 | 604,221 | |||||||||
Change in plan assets: | |||||||||||
Fair value of plan assets at beginning of year | 528,881 | 530,109 | |||||||||
Actual return on plan assets | 92,808 | 31,298 | |||||||||
Employer contributions | 10,000 | — | |||||||||
Benefits paid | (34,883) | (32,526) | |||||||||
Fair value of plan assets at end of year | 596,806 | 528,881 | |||||||||
Reconciliation: | |||||||||||
Funded status | 777 | (75,340) | |||||||||
Unrecognized prior service cost | — | — | |||||||||
Unrecognized net loss | — | — | |||||||||
Net amount recognized | $ | 777 | $ | (75,340) |
Fiscal Year Ended September 30 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Components of net periodic pension cost: | |||||||||||||||||
Service cost | $ | 17,369 | $ | 17,551 | $ | 15,311 | |||||||||||
Interest cost (1)
|
16,883 | 19,028 | 22,071 | ||||||||||||||
Expected return on assets (1)
|
(27,913) | (28,316) | (28,451) | ||||||||||||||
Amortization of prior service cost (credit) (1)
|
8,686 | (231) | (232) | ||||||||||||||
Recognized actuarial (gain) loss (1)
|
(231) | 9,025 | 4,201 | ||||||||||||||
Net periodic pension cost | $ | 14,794 | $ | 17,057 | $ | 12,900 |
Assets at Fair Value as of September 30, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Investments: | |||||||||||||||||||||||
Common stocks | $ | 239,166 | $ | — | $ | — | $ | 239,166 | |||||||||||||||
Money market funds | — | 7,060 | — | 7,060 | |||||||||||||||||||
Registered investment companies | 74,236 | — | — | 74,236 | |||||||||||||||||||
Government securities: | |||||||||||||||||||||||
Mortgage-backed securities | — | 14,048 | — | 14,048 | |||||||||||||||||||
U.S. treasuries | 7,483 | 34 | — | 7,517 | |||||||||||||||||||
Corporate bonds | — | 30,834 | — | 30,834 | |||||||||||||||||||
Total investments measured at fair value | $ | 320,885 | $ | 51,976 | $ | — | 372,861 | ||||||||||||||||
Investments measured at net asset value: | |||||||||||||||||||||||
Common/collective trusts (1)
|
121,570 | ||||||||||||||||||||||
Limited partnerships (1)
|
100,299 | ||||||||||||||||||||||
Total investments | $ | 594,730 |
Assets at Fair Value as of September 30, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Investments: | |||||||||||||||||||||||
Common stocks | $ | 211,244 | $ | — | $ | — | $ | 211,244 | |||||||||||||||
Money market funds | — | 6,096 | — | 6,096 | |||||||||||||||||||
Registered investment companies | 29,762 | — | — | 29,762 | |||||||||||||||||||
Government securities: | |||||||||||||||||||||||
Mortgage-backed securities | — | 15,230 | — | 15,230 | |||||||||||||||||||
U.S. treasuries | 21,755 | 36 | — | 21,791 | |||||||||||||||||||
Corporate bonds | — | 52,648 | — | 52,648 | |||||||||||||||||||
Total investments measured at fair value | $ | 262,761 | $ | 74,010 | $ | — | 336,771 | ||||||||||||||||
Investments measured at net asset value: | |||||||||||||||||||||||
Common/collective trusts (1)
|
122,207 | ||||||||||||||||||||||
Limited partnerships (1)
|
69,176 | ||||||||||||||||||||||
Total investments | $ | 528,154 |
Pension
Liability |
Pension Cost | ||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||
Discount rate (1)
|
2.57 | % | 2.80 | % | 2.90 | % | 3.19 | % | 4.38 | % | |||||||||||||||||||
Rate of compensation increase | 3.50 | % | 3.50 | % | 3.50 | % | 3.50 | % | 3.50 | % | |||||||||||||||||||
Interest crediting rate | 4.69 | % | 4.69 | % | 4.69 | % | 4.69 | % | 4.69 | % |
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Accumulated benefit obligation | $ | 100,981 | $ | 122,207 | |||||||
Change in projected benefit obligation: | |||||||||||
Benefit obligation at beginning of year | $ | 129,140 | $ | 143,987 | |||||||
Service cost | 1,067 | 1,074 | |||||||||
Interest cost | 3,180 | 4,188 | |||||||||
Actuarial (gain) loss | 1,332 | 7,386 | |||||||||
Benefits paid | (4,720) | (4,766) | |||||||||
Settlements | (25,698) | (22,729) | |||||||||
Benefit obligation at end of year | 104,301 | 129,140 | |||||||||
Change in plan assets: | |||||||||||
Fair value of plan assets at beginning of year | — | — | |||||||||
Employer contribution | 30,418 | 27,495 | |||||||||
Benefits paid | (4,720) | (4,766) | |||||||||
Settlements | (25,698) | (22,729) | |||||||||
Fair value of plan assets at end of year | — | — | |||||||||
Reconciliation: | |||||||||||
Funded status | (104,301) | (129,140) | |||||||||
Unrecognized prior service cost | — | — | |||||||||
Unrecognized net loss | — | — | |||||||||
Accrued pension cost | $ | (104,301) | $ | (129,140) |
Fiscal Year Ended September 30 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Components of net periodic pension cost: | |||||||||||||||||
Service cost | $ | 1,067 | $ | 1,074 | $ | 869 | |||||||||||
Interest cost (1)
|
3,180 | 4,188 | 5,127 | ||||||||||||||
Recognized actuarial loss (1)
|
3,560 | 3,945 | 2,227 | ||||||||||||||
Settlements (1)
|
9,151 | 9,180 | — | ||||||||||||||
Net periodic pension cost | $ | 16,958 | $ | 18,387 | $ | 8,223 |
Pension
Plan |
Supplemental
Plans |
||||||||||
(In thousands) | |||||||||||
2022 | $ | 39,020 | $ | 4,925 | |||||||
2023 | 39,624 | 11,384 | |||||||||
2024 | 40,314 | 4,496 | |||||||||
2025 | 41,085 | 39,769 | |||||||||
2026 | 42,053 | 5,665 | |||||||||
2027-2031 | 203,461 | 22,079 |
Actual
Allocation September 30 |
|||||||||||
Security Class | 2021 | 2020 | |||||||||
Diversified investment funds | 97.9% | 97.4% | |||||||||
Cash and cash equivalents | 2.1% | 2.6% |
Postretirement
Liability |
Postretirement Cost | ||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||
Discount rate | 3.01 | % | 2.80 | % | 2.80 | % | 3.29 | % | 4.38 | % | |||||||||||||||||||
Expected return on plan assets | 4.94 | % | 4.94 | % | 4.94 | % | 5.14 | % | 5.33 | % | |||||||||||||||||||
Initial trend rate | 6.25 | % | 6.25 | % | 6.25 | % | 6.25 | % | 6.50 | % | |||||||||||||||||||
Ultimate trend rate | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | |||||||||||||||||||
Ultimate trend reached in | 2027 | 2026 | 2026 | 2025 | 2022 |
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Change in benefit obligation: | |||||||||||
Benefit obligation at beginning of year | $ | 370,678 | $ | 316,033 | |||||||
Service cost | 11,000 | 13,466 | |||||||||
Interest cost | 15,372 | 10,612 | |||||||||
Plan participants’ contributions | 5,648 | 5,849 | |||||||||
Actuarial (gain) loss | 6,800 | 43,412 | |||||||||
Benefits paid | (19,610) | (18,694) | |||||||||
Plan amendments | (34,732) | — | |||||||||
Benefit obligation at end of year | 355,156 | 370,678 | |||||||||
Change in plan assets: | |||||||||||
Fair value of plan assets at beginning of year | 208,245 | 201,901 | |||||||||
Actual return on plan assets | 53,335 | 2,356 | |||||||||
Employer contributions | 20,581 | 16,833 | |||||||||
Plan participants’ contributions | 5,648 | 5,849 | |||||||||
Benefits paid | (19,610) | (18,694) | |||||||||
Fair value of plan assets at end of year | 268,199 | 208,245 | |||||||||
Reconciliation: | |||||||||||
Funded status | (86,957) | (162,433) | |||||||||
Unrecognized transition obligation | — | — | |||||||||
Unrecognized prior service cost | — | — | |||||||||
Unrecognized net loss | — | — | |||||||||
Accrued postretirement cost | $ | (86,957) | $ | (162,433) |
Fiscal Year Ended September 30 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Components of net periodic postretirement cost: | |||||||||||||||||
Service cost | $ | 11,000 | $ | 13,466 | $ | 10,810 | |||||||||||
Interest cost (1)
|
15,372 | 10,612 | 11,839 | ||||||||||||||
Expected return on assets (1)
|
(10,455) | (10,499) | (10,659) | ||||||||||||||
Amortization of transition obligation (1)
|
— | — | — | ||||||||||||||
Amortization of prior service cost (1)
|
30,533 | 173 | 173 | ||||||||||||||
Recognized actuarial gain (1)
|
1,172 | (1,337) | (8,178) | ||||||||||||||
Net periodic postretirement cost | $ | 47,622 | $ | 12,415 | $ | 3,985 |
Assets at Fair Value as of September 30, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Investments: | |||||||||||||||||||||||
Money market funds | $ | — | $ | 5,527 | $ | — | $ | 5,527 | |||||||||||||||
Registered investment companies | 262,672 | — | — | 262,672 | |||||||||||||||||||
Total investments measured at fair value | $ | 262,672 | $ | 5,527 | $ | — | $ | 268,199 |
Assets at Fair Value as of September 30, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Investments: | |||||||||||||||||||||||
Money market funds | $ | — | $ | 5,525 | $ | — | $ | 5,525 | |||||||||||||||
Registered investment companies | 202,720 | — | — | 202,720 | |||||||||||||||||||
Total investments measured at fair value | $ | 202,720 | $ | 5,525 | $ | — | $ | 208,245 |
Company
Payments |
Retiree
Payments |
Subsidy
Payments |
Total
Postretirement Benefits |
|||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
2022 | $ | 17,701 | $ | 2,490 | $ | — | $ | 20,191 | ||||||||||||||||||
2023 | 18,031 | 2,465 | — | 20,496 | ||||||||||||||||||||||
2024 | 18,341 | 2,404 | — | 20,745 | ||||||||||||||||||||||
2025 | 18,981 | 2,425 | — | 21,406 | ||||||||||||||||||||||
2026 | 19,414 | 2,395 | — | 21,809 | ||||||||||||||||||||||
2027-2031 | 100,312 | 10,641 | — | 110,953 |
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Number of
Restricted Units |
Weighted
Average Grant-Date Fair Value |
Number of
Restricted Units |
Weighted
Average Grant-Date Fair Value |
Number of
Restricted Units |
Weighted
Average Grant-Date Fair Value |
||||||||||||||||||||||||||||||
Nonvested at beginning of year | 443,279 | $ | 99.28 | 503,072 | $ | 91.66 | 538,592 | $ | 80.91 | ||||||||||||||||||||||||||
Granted | 223,954 | 102.68 | 199,985 | 102.34 | 241,472 | 98.25 | |||||||||||||||||||||||||||||
Vested | (271,435) | 97.44 | (242,975) | 85.66 | (269,347) | 76.71 | |||||||||||||||||||||||||||||
Forfeited | (17,671) | 101.48 | (16,803) | 96.87 | (7,645) | 86.37 | |||||||||||||||||||||||||||||
Nonvested at end of year | 378,127 | $ | 102.45 | 443,279 | $ | 99.28 | 503,072 | $ | 91.66 |
September 30 | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Billed accounts receivable | $ | 218,219 | $ | 140,259 | |||||||
Unbilled revenue | 97,417 | 80,699 | |||||||||
Contributions in aid of construction receivable | 18,984 | 19,821 | |||||||||
Insurance receivable | 53,779 | 4,731 | |||||||||
Other accounts receivable | 19,039 | 15,034 | |||||||||
Total accounts receivable | 407,438 | 260,544 | |||||||||
Less: allowance for uncollectible accounts | (64,471) | (29,949) | |||||||||
Net accounts receivable | $ | 342,967 | $ | 230,595 |
September 30 | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Deferred gas costs | $ | 66,395 | $ | 40,593 | |||||||
Winter Storm Uri incremental costs (1)
|
2,011,719 | — | |||||||||
Prepaid expenses | 48,766 | 40,340 | |||||||||
Materials and supplies | 15,581 | 6,829 | |||||||||
Assets from risk management activities | 55,073 | 5,687 | |||||||||
Other | 3,375 | 14,456 | |||||||||
Total | $ | 2,200,909 | $ | 107,905 |
September 30 | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Storage plant | $ | 539,972 | $ | 530,985 | |||||||
Transmission plant | 3,725,347 | 3,459,765 | |||||||||
Distribution plant | 12,085,654 | 10,680,495 | |||||||||
General plant | 868,962 | 829,624 | |||||||||
Intangible plant | 38,612 | 38,297 | |||||||||
17,258,547 | 15,539,166 | ||||||||||
Construction in progress | 626,551 | 418,055 | |||||||||
17,885,098 | 15,957,221 | ||||||||||
Less: accumulated depreciation and amortization | (2,821,128) | (2,601,874) | |||||||||
Net property, plant and equipment (1)
|
$ | 15,063,970 | $ | 13,355,347 |
September 30 | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Marketable securities | $ | 108,071 | $ | 103,952 | |||||||
Regulatory assets (See Note 2) | 351,843 | 371,707 | |||||||||
Operating lease right of use assets (See Note 6) | 222,446 | 227,146 | |||||||||
Winter Storm Uri incremental costs (1)
|
89,009 | — | |||||||||
Assets from risk management activities | 175,613 | 74,991 | |||||||||
Other | 27,738 | 23,374 | |||||||||
Total | $ | 974,720 | $ | 801,170 |
September 30 | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Trade accounts payable | $ | 224,873 | $ | 141,075 | |||||||
Accrued gas payable | 100,699 | 42,054 | |||||||||
Accrued liabilities | 97,650 | 52,646 | |||||||||
Total | $ | 423,222 | $ | 235,775 |
September 30 | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Customer credit balances and deposits | $ | 49,722 | $ | 56,485 | |||||||
Accrued employee costs | 50,517 | 48,057 | |||||||||
Deferred gas costs | 52,553 | 19,985 | |||||||||
Operating lease liabilities (See Note 6) | 37,688 | 35,716 | |||||||||
Accrued interest | 55,164 | 53,554 | |||||||||
Liabilities from risk management activities | 5,269 | 2,015 | |||||||||
Taxes payable | 160,986 | 148,292 | |||||||||
Pension and postretirement liabilities | 4,863 | 29,609 | |||||||||
Regulatory cost of removal obligation | 72,823 | 73,908 | |||||||||
APT annual adjustment mechanism | 22,694 | 43,893 | |||||||||
Regulatory excess deferred taxes (See Note 14) | 155,857 | 20,887 | |||||||||
Other | 18,545 | 14,060 | |||||||||
Total | $ | 686,681 | $ | 546,461 |
September 30 | |||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Pension and post retirement liabilities | $ | 185,617 | $ | 337,303 | |||||||
Operating lease liabilities (See Note 6) | 194,745 | 201,071 | |||||||||
Customer advances for construction | 9,879 | 10,060 | |||||||||
Other regulatory liabilities (See Note 2) | 75,506 | 17,838 | |||||||||
Asset retirement obligation | 18,373 | 20,348 | |||||||||
APT annual adjustment mechanism | 8,416 | 13,486 | |||||||||
Unrecognized tax benefits | 32,792 | 30,921 | |||||||||
Other | 12,161 | 11,101 | |||||||||
Total | $ | 537,489 | $ | 642,128 |
Year Ended September 30 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Equity component of AFUDC | $ | 32,749 | $ | 23,493 | $ | 11,165 | |||||||||||
Performance-based rate program | 6,362 | 6,771 | 6,737 | ||||||||||||||
Pension and other postretirement non-service credit (cost) | (19,238) | (3,189) | 3,016 | ||||||||||||||
Interest income | 2,144 | 2,932 | 4,160 | ||||||||||||||
Community support spending | (14,460) | (11,728) | (4,771) | ||||||||||||||
Miscellaneous | (9,702) | (11,108) | (12,903) | ||||||||||||||
Total | $ | (2,145) | $ | 7,171 | $ | 7,404 |
Year Ended September 30 | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Cash Paid (Received) During The Period For:
|
|||||||||||||||||
Interest (1)
|
$ | 207,555 | $ | 194,993 | $ | 184,852 | |||||||||||
Income taxes | $ | 8,199 | $ | (3,071) | $ | 11,467 | |||||||||||
Non-Cash Transactions:
|
|||||||||||||||||
Capital expenditures included in current liabilities | $ | 184,786 | $ | 113,365 | $ | 149,993 |
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Current | |||||||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||||||
State | 252 | 14,193 | 8,412 | ||||||||||||||
Deferred | |||||||||||||||||
Federal | 128,867 | 143,039 | 113,331 | ||||||||||||||
State (1)
|
24,617 | (11,879) | 17,160 | ||||||||||||||
Income tax expense | $ | 153,736 | $ | 145,353 | $ | 138,903 |
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Tax at statutory rate (1)
|
$ | 172,053 | $ | 156,827 | $ | 136,565 | |||||||||||
Common stock dividends deductible for tax reporting | (1,372) | (1,419) | (1,460) | ||||||||||||||
State taxes (net of federal benefit) | 19,647 | 22,791 | 20,202 | ||||||||||||||
Amortization of excess deferred taxes | (45,382) | (16,125) | (14,085) | ||||||||||||||
Remeasurement due to state deferred tax rate change | — | (20,962) | — | ||||||||||||||
Other, net | 8,790 | 4,241 | (2,319) | ||||||||||||||
Income tax expense | $ | 153,736 | $ | 145,353 | $ | 138,903 |
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Employee benefit plans | $ | 64,316 | $ | 66,991 | |||||||
Interest rate swaps | — | 16,719 | |||||||||
Net operating loss carryforwards | 911,424 | 476,507 | |||||||||
Charitable and other credit carryforwards | 7,712 | 8,712 | |||||||||
Regulatory excess deferred tax | 148,200 | 161,565 | |||||||||
Lease asset | 52,138 | 53,118 | |||||||||
Other | 33,591 | 20,424 | |||||||||
Total deferred tax assets | 1,217,381 | 804,036 | |||||||||
Valuation allowance | (663) | (1,102) | |||||||||
Net deferred tax assets | 1,216,718 | 802,934 | |||||||||
Deferred tax liabilities: | |||||||||||
Difference in net book value and net tax value of assets (1)
|
(2,258,264) | (2,138,966) | |||||||||
Gas cost adjustments | (26,413) | (23,209) | |||||||||
Winter Storm Uri regulatory asset | (471,025) | — | |||||||||
Lease liability | (52,138) | (53,118) | |||||||||
Rate deferral adjustment | (47,445) | (21,945) | |||||||||
Interest rate agreements | (20,156) | — | |||||||||
Other | (47,086) | (22,265) | |||||||||
Total deferred tax liabilities | (2,922,527) | (2,259,503) | |||||||||
Net deferred tax liabilities | $ | (1,705,809) | $ | (1,456,569) | |||||||
Deferred credits for rate regulated entities | $ | 4,181 | $ | 2,537 |
2021 | 2020 | 2019 | |||||||||||||||
(In thousands) | |||||||||||||||||
Unrecognized tax benefits - beginning balance | $ | 30,921 | $ | 27,716 | $ | 26,203 | |||||||||||
Increase (decrease) resulting from prior period tax positions | 671 | (26) | (923) | ||||||||||||||
Increase resulting from current period tax positions | 1,200 | 3,231 | 2,436 | ||||||||||||||
Unrecognized tax benefits - ending balance | 32,792 | 30,921 | 27,716 | ||||||||||||||
Less: deferred federal and state income tax benefits | (6,886) | (6,493) | (5,820) | ||||||||||||||
Total unrecognized tax benefits that, if recognized, would impact the effective income tax rate as of the end of the year
|
$ | 25,906 | $ | 24,428 | $ | 21,896 |
Balance Sheet Location | Assets | Liabilities | |||||||||||||||
(In thousands) | |||||||||||||||||
September 30, 2021 | |||||||||||||||||
Designated As Hedges: | |||||||||||||||||
Interest rate contracts |
Deferred charges and other assets /
Deferred credits and other liabilities |
$ | 169,469 | $ | — | ||||||||||||
Total | 169,469 | — | |||||||||||||||
Not Designated As Hedges: | |||||||||||||||||
Commodity contracts |
Other current assets /
Other current liabilities |
55,073 | (5,269) | ||||||||||||||
Commodity contracts |
Deferred charges and other assets /
Deferred credits and other liabilities |
6,144 | — | ||||||||||||||
Total | 61,217 | (5,269) | |||||||||||||||
Gross / Net Financial Instruments | $ | 230,686 | $ | (5,269) | |||||||||||||
Balance Sheet Location | Assets | Liabilities | |||||||||||||||
(In thousands) | |||||||||||||||||
September 30, 2020 | |||||||||||||||||
Designated As Hedges: | |||||||||||||||||
Interest rate contracts |
Deferred charges and other assets /
Deferred credits and other liabilities |
$ | 73,055 | $ | — | ||||||||||||
Total | 73,055 | — | |||||||||||||||
Not Designated As Hedges: | |||||||||||||||||
Commodity contracts |
Other current assets /
Other current liabilities |
5,687 | (2,015) | ||||||||||||||
Commodity contracts |
Deferred charges and other assets /
Deferred credits and other liabilities |
1,936 | — | ||||||||||||||
Total | 7,623 | (2,015) | |||||||||||||||
Gross / Net Financial Instruments | $ | 80,678 | $ | (2,015) | |||||||||||||
Fiscal Year Ended
September 30 |
|||||||||||
2021 | 2020 | ||||||||||
(In thousands) | |||||||||||
Increase in fair value: | |||||||||||
Interest rate agreements | $ | 123,017 | $ | 53,241 | |||||||
Recognition of losses in earnings due to settlements: | |||||||||||
Interest rate agreements | 4,566 | 3,647 | |||||||||
Total other comprehensive income from hedging, net of tax | $ | 127,583 | $ | 56,888 |
Interest Rate
Agreements |
||||||||
(In thousands) | ||||||||
2022 | $ | (2,959) | ||||||
2023 | (2,959) | |||||||
2024 | (2,959) | |||||||
2025 | (2,959) | |||||||
2026 | (2,959) | |||||||
Thereafter | (46,919) | |||||||
Total | $ | (61,714) |
Quoted
Prices in Active Markets (Level 1) |
Significant
Other
Observable
Inputs
(Level 2)(1)
|
Significant
Other Unobservable Inputs (Level 3) |
Netting and
Cash Collateral |
September 30, 2021 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Financial instruments | $ | — | $ | 230,686 | $ | — | $ | — | $ | 230,686 | |||||||||||||||||||
Debt and equity securities | |||||||||||||||||||||||||||||
Registered investment companies | 35,175 | — | — | — | 35,175 | ||||||||||||||||||||||||
Bond mutual funds | 34,298 | — | — | — | 34,298 | ||||||||||||||||||||||||
Bonds (2)
|
— | 35,655 | — | — | 35,655 | ||||||||||||||||||||||||
Money market funds | — | 2,943 | — | — | 2,943 | ||||||||||||||||||||||||
Total debt and equity securities | 69,473 | 38,598 | — | — | 108,071 | ||||||||||||||||||||||||
Total assets | $ | 69,473 | $ | 269,284 | $ | — | $ | — | $ | 338,757 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Financial instruments | $ | — | $ | 5,269 | $ | — | $ | — | $ | 5,269 |
Quoted
Prices in Active Markets (Level 1) |
Significant
Other
Observable
Inputs
(Level 2)(1)
|
Significant
Other Unobservable Inputs (Level 3) |
Netting and
Cash Collateral |
September 30, 2020 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Financial instruments | $ | — | $ | 80,678 | $ | — | $ | — | $ | 80,678 | |||||||||||||||||||
Debt and equity securities | |||||||||||||||||||||||||||||
Registered investment companies | 37,831 | — | — | — | 37,831 | ||||||||||||||||||||||||
Bond mutual funds | 29,166 | — | — | — | 29,166 | ||||||||||||||||||||||||
Bonds (2)
|
— | 32,900 | — | — | 32,900 | ||||||||||||||||||||||||
Money market funds | — | 4,055 | — | — | 4,055 | ||||||||||||||||||||||||
Total debt and equity securities | 66,997 | 36,955 | — | — | 103,952 | ||||||||||||||||||||||||
Total assets | $ | 66,997 | $ | 117,633 | $ | — | $ | — | $ | 184,630 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Financial instruments | $ | — | $ | 2,015 | $ | — | $ | — | $ | 2,015 |
September 30, 2021 | |||||
(In thousands) | |||||
Carrying Amount | $ | 7,360,000 | |||
Fair Value | $ | 8,086,136 |
ITEM 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. |
ITEM 9A. | Controls and Procedures. |
/s/ JOHN K. AKERS | /s/ CHRISTOPHER T. FORSYTHE | |||||||
John K. Akers | Christopher T. Forsythe | |||||||
President, Chief Executive Officer and Director | Senior Vice President and Chief Financial Officer | |||||||
November 12, 2021 |
ITEM 9B. | Other Information. |
ITEM 10. | Directors, Executive Officers and Corporate Governance. |
Name | Age |
Years of
Service |
Office Currently Held | |||||||||||||||||
John K. Akers | 58 | 30 | President, Chief Executive Officer and Director | |||||||||||||||||
Christopher T. Forsythe | 50 | 18 | Senior Vice President and Chief Financial Officer | |||||||||||||||||
David J. Park | 50 | 27 | Senior Vice President, Utility Operations | |||||||||||||||||
Karen E. Hartsfield | 51 | 6 | Senior Vice President, General Counsel and Corporate Secretary | |||||||||||||||||
John M. Robbins | 51 | 8 | Senior Vice President, Human Resources |
ITEM 11. | Executive Compensation. |
ITEM 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
ITEM 13. | Certain Relationships and Related Transactions, and Director Independence. |
ITEM 14. | Principal Accountant Fees and Services. |
ITEM 15. | Exhibits and Financial Statement Schedules. |
Exhibit
Number |
Description |
Page Number or
Incorporation by Reference to |
||||||||||||
Articles of Incorporation and Bylaws | ||||||||||||||
3.1 | Restated Articles of Incorporation of Atmos Energy Corporation - Texas (As Amended Effective February 3, 2010) |
3.2 | Restated Articles of Incorporation of Atmos Energy Corporation - Virginia (As Amended Effective February 3, 2010) | |||||||||||||
3.3 | Amended and Restated Bylaws of Atmos Energy Corporation (as of February 5, 2019) | |||||||||||||
Instruments Defining Rights of Security Holders, Including Indentures | ||||||||||||||
4.1(a) | Specimen Common Stock Certificate (Atmos Energy Corporation) | |||||||||||||
4.1(b) | ||||||||||||||
4.2 | Indenture dated as of November 15, 1995 between United Cities Gas Company and Bank of America Illinois, Trustee | |||||||||||||
4.3 | Indenture dated as of July 15, 1998 between Atmos Energy Corporation and U.S. Bank Trust National Association, Trustee | |||||||||||||
4.4 | Indenture dated as of May 22, 2001 between Atmos Energy Corporation and SunTrust Bank, Trustee | |||||||||||||
4.5 | Indenture dated as of March 26, 2009 between Atmos Energy Corporation and U.S. Bank National Corporation, Trustee | |||||||||||||
4.6(a) | Debenture Certificate for the 6 3/4% Debentures due 2028 | |||||||||||||
4.6(b) | Global Security for the 5.95% Senior Notes due 2034 | |||||||||||||
4.6(c) | Officers' Certificate dated June 10, 2011 | |||||||||||||
4.6(d) | Global Security for the 5.5% Senior Notes due 2041 | |||||||||||||
4.6(e) | Officers' Certificate dated January 11, 2013 | |||||||||||||
4.6(f) | Global Security for the 4.15% Senior Notes due 2043 | |||||||||||||
4.6(g) | Officers' Certificate dated October 15, 2014 | |||||||||||||
4.6(h) | Global Security for the 4.125% Senior Notes due 2044 | |||||||||||||
4.6(i) | Officers' Certificate dated June 8, 2017 | |||||||||||||
4.6(j) | Officers' Certificate dated October 4, 2018 | |||||||||||||
4.6(k) | Global Security for the 4.300% Senior Notes due 2048 | |||||||||||||
4.6(l) | Global Security for the 4.300% Senior Notes due 2048 | |||||||||||||
4.6(m) | Officers' Certificate dated March 4, 2019 | |||||||||||||
4.6(n) | Global Security for the 4.125% Senior Notes due 2049 |
4.6(o) | Officers' Certificate dated October 2, 2019 | |||||||||||||
4.6(p) | Global Security for the 2.625% Senior Notes due 2029 | |||||||||||||
4.6(q) | Global Security for the 3.375% Senior Notes due 2049 | |||||||||||||
4.6(r) | Officers' Certificate dated October 1, 2020 | |||||||||||||
4.6(s) | Global Security for the 1.500% Senior Notes due 2031 | |||||||||||||
4.6(t) | Global Security for the 1.500% Senior Notes due 2031 | |||||||||||||
4.6(u) | Fixed Rate Notes Officers' Certificate dated March 9, 2021 | |||||||||||||
4.6(v) | Floating Rate Notes Officers' Certificate dated March 9, 2021 | |||||||||||||
4.6(w) | Global Security for the 0.625% Senior Notes due 2023 | |||||||||||||
4.6(x) | Global Security for the 0.625% Senior Notes due 2023 | |||||||||||||
4.6(y) | Global Security for the 0.625% Senior Notes due 2023 | |||||||||||||
4.6(z) | Global Security for the Floating Rate Senior Notes due 2023 | |||||||||||||
4.6(aa) | Global Security for the Floating Rate Senior Notes due 2023 | |||||||||||||
4.6(bb) | Global Security for the Floating Rate Senior Notes due 2023 | |||||||||||||
4.6(cc) | Officers' Certificate dated October 1, 2021 | |||||||||||||
4.6(dd) | Global Security for the 2.850% Senior Notes due 2052 | |||||||||||||
4.6(ee) | Global Security for the 2.850% Senior Notes due 2052 | |||||||||||||
Material Contracts | ||||||||||||||
10.1 | Revolving Credit Agreement, dated as of March 31, 2021, among Atmos Energy Corporation, Crédit Agricole Corporate and Investment Bank, as the Administrative Agent, the agents, arrangers and bookrunners named therein, and the lenders named therein | |||||||||||||
10.2 | Revolving Credit Agreement, dated as of March 31, 2021, among Atmos Energy Corporation, Crédit Agricole Corporate and Investment Bank, as the Administrative Agent, the agents, arrangers and bookrunners named therein, and the lenders named therein | |||||||||||||
10.3 | Term Loan Agreement, dated as of April 9, 2020, among Atmos Energy Corporation, Credit Agricole Corporate and Investment Bank, as the Administrative Agent, Canadian Imperial Bank of Commerce, New York Branch, as Syndication Agent, Credit Agricole Corporate and Investment Bank and Canadian Imperial Bank of Commerce, New York Branch, as Joint Lead Arrangers and Joint-Bookrunners, and the lenders named therein |
10.4(a) | Equity Distribution Agreement, dated as of February 12, 2020, among Atmos Energy Corporation and the Managers and Forward Purchasers named in Schedule A thereto | |||||||||||||
10.4(b) | Form of Master Forward Sale Confirmation | |||||||||||||
10.5(a) | Equity Distribution Agreement, dated as of June 29, 2021, among Atmos Energy Corporation and the Managers and Forward Purchasers named in Schedule A thereto | |||||||||||||
10.5(b) | Form of Master Forward Sale Confirmation | |||||||||||||
Executive Compensation Plans and Arrangements | ||||||||||||||
10.6(a)* | Form of Atmos Energy Corporation Change in Control Severance Agreement - Tier I | |||||||||||||
10.6(b)* | Form of Atmos Energy Corporation Change in Control Severance Agreement - Tier II | |||||||||||||
10.7(a)* | Atmos Energy Corporation Executive Retiree Life Plan | |||||||||||||
10.7(b)* | Amendment No. 1 to the Atmos Energy Corporation Executive Retiree Life Plan | |||||||||||||
10.8* | Atmos Energy Corporation Annual Incentive Plan for Management (as amended and restated August 3, 2021) | |||||||||||||
10.9(a)* | Atmos Energy Corporation Supplemental Executive Benefits Plan, Amended and Restated in its Entirety August 7, 2007 | |||||||||||||
10.9(b)* | Form of Individual Trust Agreement for the Supplemental Executive Benefits Plan | |||||||||||||
10.10(a)* | Atmos Energy Corporation Supplemental Executive Retirement Plan (As Amended and Restated, Effective as of January 1, 2016) | |||||||||||||
10.10(b)* | Atmos Energy Corporation Performance-Based Supplemental Executive Benefits Plan Trust Agreement, Effective Date December 1, 2000 | |||||||||||||
10.11* | Atmos Energy Corporation Account Balance Supplemental Executive Retirement Plan (As Amended and Restated, Effective as of January 1, 2016) | |||||||||||||
10.12(a)* | Mini-Med/Dental Benefit Extension Agreement dated October 1, 1994 | |||||||||||||
10.12(b)* | Amendment No. 1 to Mini-Med/Dental Benefit Extension Agreement dated August 14, 2001 | |||||||||||||
10.12(c)* | Amendment No. 2 to Mini-Med/Dental Benefit Extension Agreement dated December 31, 2002 | |||||||||||||
10.13* | Atmos Energy Corporation Equity Incentive and Deferred Compensation Plan for Non-Employee Directors, Amended and Restated as of January 1, 2012 |
10.14(a)* | Atmos Energy Corporation 1998 Long-Term Incentive Plan (as amended and restated November 6, 2019) | |||||||||||||
10.14(b)* | Form of Award Agreement of Time-Lapse Restricted Stock Units under the Atmos Energy Corporation 1998 Long-Term Incentive Plan | |||||||||||||
10.14(c)* | Form of Award Agreement of Performance-Based Restricted Stock Units under the Atmos Energy Corporation 1998 Long-Term Incentive Plan | |||||||||||||
10.14(d)* | Form of Non-Employee Director Award Agreement of Time-Lapse Restricted Stock Units Under the Atmos Energy Corporation 1998 Long-Term Incentive Plan | |||||||||||||
10.14(e)* | Form of Non-Employee Director Award Agreement of Stock Unit Awards Under The Atmos Energy Corporation 1998 Long-Term Incentive Plan | |||||||||||||
Other Exhibits, as indicated | ||||||||||||||
21 | ||||||||||||||
23.1 | ||||||||||||||
24 | Power of Attorney | Signature page of Form 10-K for fiscal year ended September 30, 2021 | ||||||||||||
31 | ||||||||||||||
32 | ||||||||||||||
Interactive Data File | ||||||||||||||
101.INS | XBRL Instance Document - the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema | |||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase | |||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase | |||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase | |||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | |||||||||||||
104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document |
* | This exhibit constitutes a "management contract or compensatory plan, contract, or arrangement." | ||||
** | These certifications pursuant to 18 U.S.C. Section 1350 by the Company’s Chief Executive Officer and Chief Financial Officer, furnished as Exhibit 32 to this Annual Report on Form 10-K, will not be deemed to be filed with the Securities and Exchange Commission or incorporated by reference into any filing by the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporates such certifications by reference. |
ITEM 16. | Form 10-K Summary. |
ATMOS ENERGY CORPORATION | ||||||||||||||
(Registrant) | ||||||||||||||
By: | /s/ CHRISTOPHER T. FORSYTHE | |||||||||||||
Christopher T. Forsythe
Senior Vice President and
Chief Financial Officer
|
/s/ KIM R. COCKLIN | Chairman of the Board | November 12, 2021 | ||||||||||||
Kim R. Cocklin | ||||||||||||||
/s/ JOHN K. AKERS | President, Chief Executive Officer and Director | November 12, 2021 | ||||||||||||
John K. Akers | ||||||||||||||
/s/ CHRISTOPHER T. FORSYTHE | Senior Vice President and Chief Financial Officer | November 12, 2021 | ||||||||||||
Christopher T. Forsythe | ||||||||||||||
/s/ RICHARD M. THOMAS | Vice President and Controller (Principal Accounting Officer) | November 12, 2021 | ||||||||||||
Richard M. Thomas | ||||||||||||||
/s/ ROBERT W. BEST | Director | November 12, 2021 | ||||||||||||
Robert W. Best | ||||||||||||||
/s/ KELLY H. COMPTON | Director | November 12, 2021 | ||||||||||||
Kelly H. Compton | ||||||||||||||
/s/ SEAN DONOHUE | Director | November 12, 2021 | ||||||||||||
Sean Donohue | ||||||||||||||
/s/ RAFAEL G. GARZA | Director | November 12, 2021 | ||||||||||||
Rafael G. Garza | ||||||||||||||
/s/ RICHARD K. GORDON | Director | November 12, 2021 | ||||||||||||
Richard K. Gordon | ||||||||||||||
/s/ ROBERT C. GRABLE | Director | November 12, 2021 | ||||||||||||
Robert C. Grable | ||||||||||||||
/s/ NANCY K. QUINN | Director | November 12, 2021 | ||||||||||||
Nancy K. Quinn | ||||||||||||||
/s/ RICHARD A. SAMPSON | Director | November 12, 2021 | ||||||||||||
Richard A. Sampson | ||||||||||||||
/s/ STEPHEN R. SPRINGER | Director | November 12, 2021 | ||||||||||||
Stephen R. Springer | ||||||||||||||
/s/ DIANA J. WALTERS | Director | November 12, 2021 | ||||||||||||
Diana J. Walters | ||||||||||||||
/s/ RICHARD WARE II | Director | November 12, 2021 | ||||||||||||
Richard Ware II | ||||||||||||||
/s/ FRANK YOHO | Director | November 12, 2021 | ||||||||||||
Frank Yoho |
Name |
State of
Incorporation |
Percent of
Ownership |
||||||||||||
ATMOS ENERGY HOLDINGS, INC.
(wholly owned by Atmos Energy Corporation) |
Delaware | 100% | ||||||||||||
BLUE FLAME INSURANCE SERVICES, LTD
(wholly owned by Atmos Energy Corporation) |
Bermuda | 100% | ||||||||||||
ATMOS ENERGY LOUISIANA INDUSTRIAL GAS, LLC
(a limited liability company) (wholly owned by Atmos Energy Holdings, Inc.) |
Delaware | 100% | ||||||||||||
ATMOS ENERGY SERVICES, LLC
(a limited liability company) (wholly owned by Atmos Energy Holdings, Inc.) |
Delaware | 100% | ||||||||||||
EGASCO, LLC
(a limited liability company) (wholly owned by Atmos Energy Holdings, Inc.) |
Texas | 100% | ||||||||||||
ATMOS POWER SYSTEMS, INC.
(wholly owned by Atmos Energy Holdings, Inc.) |
Georgia | 100% | ||||||||||||
ATMOS PIPELINE AND STORAGE, LLC
(a limited liability company) (wholly owned by Atmos Energy Holdings, Inc.) |
Delaware | 100% | ||||||||||||
UCG STORAGE, INC.
(wholly owned by Atmos Pipeline and Storage, LLC) |
Delaware | 100% | ||||||||||||
WKG STORAGE, INC.
(wholly owned by Atmos Pipeline and Storage, LLC) |
Delaware | 100% | ||||||||||||
ATMOS EXPLORATION AND PRODUCTION, INC.
(wholly owned by Atmos Pipeline and Storage, LLC) |
Delaware | 100% | ||||||||||||
TRANS LOUISIANA GAS PIPELINE, INC.
(wholly owned by Atmos Pipeline and Storage, LLC) |
Louisiana | 100% | ||||||||||||
TRANS LOUISIANA GAS STORAGE, INC.
(wholly owned by Atmos Pipeline and Storage, LLC) |
Delaware | 100% | ||||||||||||
ATMOS GATHERING COMPANY, LLC
(a limited liability company) (wholly owned by Atmos Pipeline and Storage, LLC) |
Delaware | 100% | ||||||||||||
PHOENIX GAS GATHERING COMPANY
(wholly owned by Atmos Gathering Company, LLC) |
Delaware | 100% | ||||||||||||
FORT NECESSITY GAS STORAGE, LLC
(a limited liability company) (wholly owned by Atmos Pipeline and Storage, LLC) |
Delaware | 100% |
/s/ JOHN K. AKERS | ||||||||
John K. Akers | ||||||||
President and | ||||||||
Chief Executive Officer |
/s/ CHRISTOPHER T. FORSYTHE | ||||||||
Christopher T. Forsythe | ||||||||
Senior Vice President and | ||||||||
Chief Financial Officer |
/s/ JOHN K. AKERS | ||||||||
John K. Akers | ||||||||
President and | ||||||||
Chief Executive Officer |
/s/ CHRISTOPHER T. FORSYTHE | ||||||||
Christopher T. Forsythe | ||||||||
Senior Vice President and | ||||||||
Chief Financial Officer |