The operator welcomes everyone to the Atmos Energy Corporation's fiscal 2024 first quarter earnings conference call. The call will begin with remarks from Dan Meziere, followed by Kevin Akers and Chris Forsythe. Forward-looking statements may be made during the call and factors that could cause material differences are outlined on Slide 26 and in SEC filings. Kevin Akers thanks the employees for their hard work and dedication during recent weather challenges.

The company reported strong first quarter results, with net income of $311 million and capital spending of $770 million to support system modernization and growth. They added over 58,000 new customers, with a significant portion in Texas, where job growth and industrial and commercial customer demand for natural gas is strong. The company completed several projects to enhance safety and reliability and connect with other major natural gas lines.

The paragraph discusses various pipeline projects and customer service efforts undertaken by Atmos Energy during the first quarter. It also mentions an incident being investigated by the National Transportation Safety Board that occurred in Jackson, Mississippi on January 24.

In the fourth paragraph, Chris Forsythe thanks the first responders and emergency responders for their support and gives an update on the company's fiscal 2024 first quarter earnings. He mentions that earnings per share increased by 8.9% and operating income increased by 24%, driven by rate increases, customer growth, and lower operating and maintenance expenses. He also mentions a change in how the company recovers uncollectible customer accounts, which will benefit customers and reduce bad debt expenses. Additionally, a legislative change in Texas has reduced property tax expenses.

In 2023, the Texas legislature allocated $18 million to offset property taxes for residential commercial property owners. This will result in a reduction of $20-$22 million in property tax expenses for the company in fiscal 2024. The company also executed its annual regulatory filing strategy, resulting in $167 million in annualized regulatory outcomes. They completed over $1.1 billion in long-term debt and equity financing and had $3.2 billion in available liquidity.

The company's weighted average cost of debt is 4.1% and its weighted average maturity is approximately 18 years, with limited exposure to floating interest rates expected in fiscal 2024. The company also has $900 million in forward starting interest rate swaps in place to hedge anticipated long-term debt issuances in fiscal 2025 and 2026. The company expects fiscal 2024 earnings per share to be in the range of $6.45 to $6.65, including the favorable impact of property tax legislation changes in Texas. This impact is estimated to be between $0.09 and $0.11 per share and is already reflected in the company's current guidance.

Kevin Akers discusses the company's expectations for growth in customer additions in the upcoming quarter. He mentions that construction and housing activity is expected to pick up in the spring, and there is an anticipated 1 million additional people coming to the Metroplex by 2028, which will impact housing demand. The company has also seen good diversified growth across its territory, particularly in the industrial sector. David Arcaro asks about the company's expectations for two upcoming general rate cases in West Texas and MidTex.

Chris Forsythe, the Chief Financial Officer of the company, stated that there are no major or unusual issues that need to be addressed in the upcoming rate cases. These filings are being made because of the company's grit mechanism, and they are expected to be routine filings. The company plans to make these filings later in the year. When asked about the recent tax change, Forsythe mentioned that they are still evaluating potential impacts and will have a better update in May. The company is also evaluating their compliance work and other activities for the upcoming summer months.

Atmos Energy's CEO Kevin Akers states that the company stands by their 3% to 3.5% inflation range and will continue to evaluate opportunities for cost control. He also praises the company's performance during the recent winter storm, which was 78% colder than normal in some locations.

The speaker discusses the importance of sustained investment in infrastructure improvement, stating that their company has been doing so for over 12 years. They are proud of their record-breaking natural gas output during a recent week and note that natural gas, petroleum, and coal accounted for 85% of energy demand during that time. The speaker also mentions a property tax benefit that will be returned to customers over the next couple of years.

The speaker mentioned that they will provide an update on how the fiscal year will be impacted in their next call. They also discussed the Fort Worth incident and stated that the site has been turned over to the owners for debris removal. The speaker also addressed a question about property taxes and stated that they are still evaluating their needs for the fiscal year. They also mentioned that they are currently fully priced for 2024 equity needs and are still working on 2025.

Chris Forsythe and Nick Campanella discuss the pricing and equity needs for the company, while Kevin Akers addresses their philosophy on M&A and their focus on system modernization. Ryan Levine asks about any potential impact on their business from legislative sessions and bills being proposed.

During the earnings call, Atmos Energy executives addressed questions about the company's performance and future plans. They discussed the impact of weather on their operations and the potential for rate increases in some jurisdictions. The executives also mentioned that they are monitoring legislative sessions and any potential changes to regulations. They clarified that there are no plans to rerate any pipelines or LDC networks. One question was asked about a change in bad debt expense treatment, which was reflected in their original guidance. The call concluded with a reminder that a recording of the call will be available for replay on the company's website.

This summary was generated with AI and may contain some inaccuracies.