Atmos Energy increases its annual profit forecast due to strong natural gas demand
Atmos Energy increased its annual profit forecast on Wednesday, after reporting a 'rise in second-quarter earnings. It expects robust demand for its natural gas distribution and pipeline facilities.
Big Tech has invested billions in artificial intelligence and infrastructure to support it. This has led to a massive increase in the demand for electricity.
According to the Energy Information Administration (EIA), U.S. electricity consumption is expected to rise in 2026 and in 2027.
Atmos' second-quarter operating?income from the distribution segment rose by 17%, to $565.9 millions, while its storage and pipeline unit made $198.9million, a 37% increase over a year ago.
Natural gas is distributed by the company to over 3.3 million customers in Colorado, Kansas and Kentucky.
It reported a net income of $582 millions, or $3.47 a share, for the three months ended March 31 compared to $486 million or $3.03 a share a year earlier.
The company based in Dallas, Texas now forecasts a full-year profit of between $8.40 to $8.50 a share. This is compared to its previous outlook of $8.15 - $8.35 per share.
According to LSEG, analysts expect a utility to earn $8.25 per share in adjusted earnings for the full year. (Reporting and editing by Anushka chourasia)
(source: Reuters)
