Atmos Energy expects to earn more in 2026 after a quarterly profit increase

Atmos Energy, the U.S. distributor of natural gas, forecast on Wednesday higher earnings for fiscal year 2026 after posting a 30% increase in its fourth-quarter profits. The utility is ramping up capital expenditures on pipeline safety and technology.

In fiscal 2026, the Dallas-based utility expects to earn a profit per share between $8.15 and $8.35, compared with $7.46 this year.

According to the U.S. Energy Information Administration’s Short-Term Energy Outlook, both natural gas production and demand in the United States are expected to reach record levels by 2025.

Atmos said that it would also raise its dividend for 2026 by 14.9%, to $4.00 per share. It will also invest $4.2 billion in the next year. This is part of a $26 billion capital programme through 2030.

Atmos reported that its operating income for the quarter increased 18.6%, to $219.5 millions from the previous year.

The distribution unit's earnings rose by 34%, to $55 millions, and the pipeline and storage unit, which earned $120,000,000, was 29% more than it did last year.

The pipeline and storage segment of the company consists primarily of the regulated pipelines and storage operations at the Atmos Pipeline Texas division, as well as its natural gas transmission operations located in Louisiana.

Atmos reported net income of $175m, or $1.07 a share, for the third quarter ending September 30. This compares to $134m, or 86c a share, during the same period in 2013.

It provides natural gas distribution to approximately 3.3 million customers in eight U.S. States and operates regulated utilities in Colorado, Kansas and Kentucky. (Reporting and editing by Alan Barona in Bengaluru, Katha Kalia from Bengaluru)

(source: Reuters)