10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                    to                    

Commission File Number 1-10042

Atmos Energy Corporation

(Exact name of registrant as specified in its charter)

Texas	and		Virginia	75-1743247
(State or other jurisdiction of incorporation or organization)				(IRS employer identification no.)
1800 Three Lincoln Centre
5430 LBJ Freeway
Dallas		Texas		75240
(Address of principal executive offices)				(Zip code)

(972) 934-9227

(Registrant’s telephone number, including area code)

Title of each class		Trading Symbol	Name of each exchange on which registered
Common stock	No Par Value	ATO	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  þ    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    Yes  ☐    No  þ

Number of shares outstanding of each of the issuer’s classes of common stock, as of April 30, 2021.

Class		Shares Outstanding
Common stock	No Par Value	130,671,944

GLOSSARY OF KEY TERMS

AEC	Atmos Energy Corporation
AOCI	Accumulated other comprehensive income
ARM	Annual Rate Mechanism
ASC	Accounting Standards Codification
Bcf	Billion cubic feet
DARR	Dallas Annual Rate Review
FASB	Financial Accounting Standards Board
GAAP	Generally Accepted Accounting Principles
GRIP	Gas Reliability Infrastructure Program
GSRS	Gas System Reliability Surcharge
LIBOR	London Interbank Offered Rate
Mcf	Thousand cubic feet
MMcf	Million cubic feet
Moody’s	Moody’s Investors Services, Inc.
NTSB	National Transportation Safety Board
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

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ATMOS ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS 

	March 31, 2021		September 30, 2020
	(Unaudited)
	(In thousands, except share data)
ASSETS
Property, plant and equipment	$	16,752,585	$	15,957,221
Less accumulated depreciation and amortization	2,712,997		2,601,874
Net property, plant and equipment	14,039,588		13,355,347
Current assets
Cash and cash equivalents	865,311		20,808
Accounts receivable, net (See Note 5)	469,595		230,595
Gas stored underground	50,043		111,950
Other current assets	235,485		107,905
Total current assets	1,620,434		471,258
Goodwill	731,257		731,257
Deferred charges and other assets (See Note 8)	3,017,531		801,170
	$	19,408,810	$	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: March 31, 2021 — 130,667,109 shares; September 30, 2020 — 125,882,477 shares	$	653	$	629
Additional paid-in capital	4,853,703		4,377,149
Accumulated other comprehensive income (loss)	140,471		(57,589)
Retained earnings	2,826,098		2,471,014
Shareholders’ equity	7,820,925		6,791,203
Long-term debt	7,316,404		4,531,779
Total capitalization	15,137,329		11,322,982
Current liabilities
Accounts payable and accrued liabilities	263,597		235,775
Other current liabilities	607,525		546,461
Current maturities of long-term debt	177		165
Total current liabilities	871,299		782,401
Deferred income taxes	1,658,000		1,456,569
Regulatory excess deferred taxes	639,496		697,764
Regulatory cost of removal obligation	465,104		457,188
Deferred credits and other liabilities	637,582		642,128
	$	19,408,810	$	15,359,032

See accompanying notes to condensed consolidated financial statements.

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ATMOS ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months Ended March 31
	2021		2020
	(Unaudited) (In thousands, except per share data)
Operating revenues
Distribution segment	$	1,282,674	$	933,005
Pipeline and storage segment	154,168		146,237
Intersegment eliminations	(117,769)		(101,577)
Total operating revenues	1,319,073		977,665
Purchased gas cost
Distribution segment	691,147		418,935
Pipeline and storage segment	113		202
Intersegment eliminations	(117,451)		(101,254)
Total purchased gas cost	573,809		317,883
Operation and maintenance expense	156,375		147,824
Depreciation and amortization expense	118,636		105,916
Taxes, other than income	88,449		74,604
Operating income	381,804		331,438
Other non-operating income (expense)	2,834		(2,989)
Interest charges	26,096		22,171
Income before income taxes	358,542		306,278
Income tax expense	61,788		66,632
Net income	$	296,754	$	239,646
Basic net income per share	$	2.30	$	1.95
Diluted net income per share	$	2.30	$	1.95
Cash dividends per share	$	0.625	$	0.575
Basic weighted average shares outstanding	129,161		122,916
Diluted weighted average shares outstanding	129,164		122,997
Net income	$	296,754	$	239,646
Other comprehensive income (loss), net of tax
Net unrealized holding losses on available-for-sale securities, net of tax of $19 and $49	(66)		(163)
Cash flow hedges:
Amortization and unrealized gain on interest rate agreements, net of tax of $39,887 and $312	138,005		1,053
Total other comprehensive income	137,939		890
Total comprehensive income	$	434,693	$	240,536

See accompanying notes to condensed consolidated financial statements.

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ATMOS ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Six Months Ended March 31
	2021		2020
	(Unaudited) (In thousands, except per share data)
Operating revenues
Distribution segment	$	2,159,324	$	1,761,509
Pipeline and storage segment	313,881		294,413
Intersegment eliminations	(239,652)		(202,694)
Total operating revenues	2,233,553		1,853,228
Purchased gas cost
Distribution segment	1,102,219		816,493
Pipeline and storage segment	(1,131)		301
Intersegment eliminations	(239,019)		(202,043)
Total purchased gas cost	862,069		614,751
Operation and maintenance expense	295,018		300,069
Depreciation and amortization expense	233,921		210,978
Taxes, other than income	161,901		143,211
Operating income	680,644		584,219
Other non-operating income	8,906		1,898
Interest charges	48,106		49,400
Income before income taxes	641,444		536,717
Income tax expense	127,012		118,398
Net income	$	514,432	$	418,319
Basic net income per share	$	4.01	$	3.43
Diluted net income per share	$	4.01	$	3.42
Cash dividends per share	$	1.25	$	1.15
Basic weighted average shares outstanding	128,098		122,015
Diluted weighted average shares outstanding	128,100		122,179
Net income	$	514,432	$	418,319
Other comprehensive income (loss), net of tax
Net unrealized holding losses on available-for-sale securities, net of tax of $37 and $49	(129)		(164)
Cash flow hedges:
Amortization and unrealized gain on interest rate agreements, net of tax of $57,282 and $623	198,189		2,106
Total other comprehensive income	198,060		1,942
Total comprehensive income	$	712,492	$	420,261

See accompanying notes to condensed consolidated financial statements.

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ATMOS ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended March 31
	2021		2020
	(Unaudited) (In thousands)
Cash Flows From Operating Activities
Net income	$	514,432	$	418,319
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization expense	233,921		210,978
Deferred income taxes	128,725		110,664
Other	(938)		7,144
Net assets / liabilities from risk management activities	(1,954)		1,310
Net change in Winter Storm Uri regulatory asset (See Note 8)	(2,093,534)		—
Net change in other operating assets and liabilities	(182,898)		(114,640)
Net cash provided by (used in) operating activities	(1,402,246)		633,775
Cash Flows From Investing Activities
Capital expenditures	(845,728)		(994,737)
Debt and equity securities activities, net	(5,506)		(1,131)
Other, net	5,171		4,631
Net cash used in investing activities	(846,063)		(991,237)
Cash Flows From Financing Activities
Net decrease in short-term debt	—		(264,992)
Net proceeds from equity offering	460,678		258,047
Issuance of common stock through stock purchase and employee retirement plans	8,291		8,321
Proceeds from issuance of long-term debt	2,797,346		799,450
Cash dividends paid	(159,348)		(140,077)
Debt issuance costs	(14,155)		(7,738)
Net cash provided by financing activities	3,092,812		653,011
Net increase in cash and cash equivalents	844,503		295,549
Cash and cash equivalents at beginning of period	20,808		24,550
Cash and cash equivalents at end of period	$	865,311	$	320,099

See accompanying notes to condensed consolidated financial statements.

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ATMOS ENERGY CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

March 31, 2021

1.    Nature of Business

Atmos Energy Corporation (“Atmos Energy” or the “Company”) and its subsidiaries are engaged in the regulated natural gas distribution and pipeline and storage businesses. Our distribution business is subject to federal and state regulation and/or regulation by local authorities in each of the states in which our regulated divisions and subsidiaries operate.

Our distribution business delivers natural gas through sales and transportation arrangements to over three million residential, commercial, public authority and industrial customers through our six regulated distribution divisions, which at March 31, 2021, covered service areas located in eight states.

Our pipeline and storage business, which is also subject to federal and state regulations, includes the transportation of natural gas to our Texas and Louisiana distribution systems and the management of our underground storage facilities used to support our distribution business in various states.

2.    Unaudited Financial Information

These consolidated interim-period financial statements have been prepared in accordance with accounting principles generally accepted in the United States on the same basis, aside from accounting policy changes noted below, as those used for the Company’s audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. In the opinion of management, all material adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been made to the unaudited consolidated interim-period financial statements. These consolidated interim-period financial statements are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited consolidated financial statements of Atmos Energy Corporation included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. Because of seasonal and other factors, the results of operations for the six-month period ended March 31, 2021 are not indicative of our results of operations for the full 2021 fiscal year, which ends September 30, 2021.

Except as described in Note 6 and Note 8 to the unaudited condensed consolidated financial statements regarding recent activity related to our revolving credit facilities and securitization legislation, no events have occurred subsequent to the balance sheet date that would require recognition or disclosure in the unaudited condensed consolidated financial statements.

Significant accounting policies

Except as noted below, related to the change in policies as a result of our adoption of new accounting standards, our accounting policies are described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.

During the second quarter of fiscal 2021, we completed our goodwill impairment assessment. We test for goodwill at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit. Based on the assessment performed, we determined that our goodwill was not impaired.

Accounting pronouncements adopted in fiscal 2021

Effective October 1, 2020, we adopted new accounting guidance that requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model. Under this model, we estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. The new guidance also introduces a new impairment recognition model for available-for-sale debt securities that will require credit losses to be recorded through an allowance account. We adopted the new guidance using a modified retrospective method. The adoption of this standard did not have a material impact on our financial position, results of operations and cash flows and no adjustments were made to October 1, 2020 opening balances as a result of this adoption. As required under the modified retrospective method of adoption, results for the reporting period beginning after October 1, 2020 are presented under Accounting Standards Codification (ASC) 326, while prior period amounts are not adjusted. See Notes 5 and 12 to the unaudited condensed consolidated financial statements for further discussion of implementation of the standard.

Accounting pronouncements that will be effective after fiscal 2021

In March 2020, the Financial Accounting Standards Board (FASB) issued optional guidance which will ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected

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by the cessation of the London Interbank Offered Rate (LIBOR). The amendments can be elected immediately, as of March 12, 2020, through December 31, 2022. We are currently evaluating if we will apply the optional guidance as we assess the impact of the cessation of LIBOR on our current contracts and hedging relationships and the potential impact on our financial position, results of operations and cash flows.

Regulatory assets and liabilities

Accounting principles generally accepted in the United States require cost-based, rate-regulated entities that meet certain criteria to reflect the authorized recovery of costs due to regulatory decisions in their financial statements. As a result, certain costs are permitted to be capitalized rather than expensed because they can be recovered through rates. We record certain costs as regulatory assets when future recovery through customer rates is considered probable. Regulatory liabilities are recorded when it is probable that revenues will be reduced for amounts that will be credited to customers through the ratemaking process. Substantially all of our regulatory assets are recorded as a component of deferred charges and other assets and our regulatory liabilities are recorded as a component of other current liabilities and deferred credits and other liabilities. Deferred gas costs are recorded either in other current assets or liabilities.

Significant regulatory assets and liabilities as of March 31, 2021 and September 30, 2020 included the following:

	March 31, 2021		September 30, 2020
	(In thousands)
Regulatory assets:
Pension and postretirement benefit costs	$	143,685	$	149,089
Infrastructure mechanisms(1)	189,154		183,943
Winter Storm Uri incremental costs(2)	2,093,534		—
Deferred gas costs	19,636		40,593
Recoverable loss on reacquired debt	4,165		4,894
Deferred pipeline record collection costs	30,415		29,839
Other	6,093		6,283
	$	2,486,682	$	414,641
Regulatory liabilities:
Regulatory excess deferred taxes(3)	$	702,393	$	718,651
Regulatory cost of removal obligation	531,625		531,096
Deferred gas costs	122,864		19,985
Asset retirement obligation	20,348		20,348
APT annual adjustment mechanism	44,291		57,379
Other	25,828		19,554
	$	1,447,349	$	1,367,013

(1)Infrastructure mechanisms in Texas, Louisiana and Tennessee allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates.

(2)Includes extraordinary gas costs incurred during Winter Storm Uri and related carrying costs. See Note 8 to the unaudited condensed consolidated financial statements for further information. This amount is recorded within deferred charges and other assets on the condensed consolidated balance sheet as of March 31, 2021.

(3)Includes amount from the remeasurement of the net deferred tax liability included in our rate base as a result of the Tax Cuts and Jobs Act of 2017 (the "TCJA") and a Kansas legislative change enacted in fiscal 2020. Of this amount, $62.9 million as of March 31, 2021 and $20.9 million as of September 30, 2020 is recorded in other current liabilities. These liabilities are currently being returned to customers in most of our jurisdictions on a provisional basis over 15 to 69 years until formal orders establish the final refund periods. During the six months ended March 31, 2021, our effective income tax rate decreased from 22.1% to 19.8%, primarily due to the approval of the amortization of excess deferred income taxes to APT customers.

As of March 31, 2021, we received regulatory orders in most states to defer into a regulatory asset all expenses, beyond the normal course of business, related to Coronavirus Disease 2019 (COVID-19 or virus), including bad debt expense. As of March 31, 2021, no amounts have been recorded as regulatory assets or liabilities for expenses related to COVID-19.

3.    Segment Information

 We manage and review our consolidated operations through the following reportable segments:

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•The distribution segment is primarily comprised of our regulated natural gas distribution and related sales operations in eight states.

•The pipeline and storage segment is comprised primarily of the pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies found in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.

Income statements and capital expenditures for the three and six months ended March 31, 2021 and 2020 by segment are presented in the following tables:

	Three Months Ended March 31, 2021
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	1,281,826	$	37,247	$	—	$	1,319,073
Intersegment revenues	848		116,921		(117,769)		—
Total operating revenues	1,282,674		154,168		(117,769)		1,319,073
Purchased gas cost	691,147		113		(117,451)		573,809
Operation and maintenance expense	123,990		32,703		(318)		156,375
Depreciation and amortization expense	85,667		32,969		—		118,636
Taxes, other than income	78,615		9,834		—		88,449
Operating income	303,255		78,549		—		381,804
Other non-operating income (expense)	(760)		3,594		—		2,834
Interest charges	14,017		12,079		—		26,096
Income before income taxes	288,478		70,064		—		358,542
Income tax expense	56,142		5,646		—		61,788
Net income	$	232,336	$	64,418	$	—	$	296,754
Capital expenditures	$	296,184	$	92,735	$	—	$	388,919

	Three Months Ended March 31, 2020
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	932,296	$	45,369	$	—	$	977,665
Intersegment revenues	709		100,868		(101,577)		—
Total operating revenues	933,005		146,237		(101,577)		977,665
Purchased gas cost	418,935		202		(101,254)		317,883
Operation and maintenance expense	115,851		32,296		(323)		147,824
Depreciation and amortization expense	76,265		29,651		—		105,916
Taxes, other than income	68,413		6,191		—		74,604
Operating income	253,541		77,897		—		331,438
Other non-operating income (expense)	(5,191)		2,202		—		(2,989)
Interest charges	10,797		11,374		—		22,171
Income before income taxes	237,553		68,725		—		306,278
Income tax expense	50,489		16,143		—		66,632
Net income	$	187,064	$	52,582	$	—	$	239,646
Capital expenditures	$	373,313	$	92,238	$	—	$	465,551

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	Six Months Ended March 31, 2021
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	2,157,713	$	75,840	$	—	$	2,233,553
Intersegment revenues	1,611		238,041		(239,652)		—
Total operating revenues	2,159,324		313,881		(239,652)		2,233,553
Purchased gas cost	1,102,219		(1,131)		(239,019)		862,069
Operation and maintenance expense	232,792		62,859		(633)		295,018
Depreciation and amortization expense	168,537		65,384		—		233,921
Taxes, other than income	142,967		18,934		—		161,901
Operating income	512,809		167,835		—		680,644
Other non-operating income	75		8,831		—		8,906
Interest charges	24,729		23,377		—		48,106
Income before income taxes	488,155		153,289		—		641,444
Income tax expense	102,127		24,885		—		127,012
Net income	$	386,028	$	128,404	$	—	$	514,432
Capital expenditures	$	602,200	$	243,528	$	—	$	845,728

	Six Months Ended March 31, 2020
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	1,760,136	$	93,092	$	—	$	1,853,228
Intersegment revenues	1,373		201,321		(202,694)		—
Total operating revenues	1,761,509		294,413		(202,694)		1,853,228
Purchased gas cost	816,493		301		(202,043)		614,751
Operation and maintenance expense	230,203		70,517		(651)		300,069
Depreciation and amortization expense	152,339		58,639		—		210,978
Taxes, other than income	128,656		14,555		—		143,211
Operating income	433,818		150,401		—		584,219
Other non-operating income (expense)	(3,237)		5,135		—		1,898
Interest charges	27,159		22,241		—		49,400
Income before income taxes	403,422		133,295		—		536,717
Income tax expense	86,601		31,797		—		118,398
Net income	$	316,821	$	101,498	$	—	$	418,319
Capital expenditures	$	777,560	$	217,177	$	—	$	994,737

Balance sheet information at March 31, 2021 and September 30, 2020 by segment is presented in the following tables:

	March 31, 2021
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Property, plant and equipment, net	$	10,465,072	$	3,574,516	$	—	$	14,039,588
Total assets	$	18,661,545	$	3,799,037	$	(3,051,772)	$	19,408,810

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	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

4.    Earnings Per Share

We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic weighted average shares outstanding is calculated based upon the weighted average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock awards that have not yet been issued as common stock. Additionally, the weighted average shares outstanding for diluted EPS includes the incremental effects of the forward sale agreements, discussed in Note 7 to the unaudited condensed consolidated financial statements, when the impact is dilutive. Basic and diluted earnings per share for the three and six months ended March 31, 2021 and 2020 are calculated as follows:

	Three Months Ended March 31				Six Months Ended March 31
	2021		2020		2021		2020
	(In thousands, except per share amounts)
Basic Earnings Per Share
Net income	$	296,754	$	239,646	$	514,432	$	418,319
Less: Income allocated to participating securities	199		178		350		314
Income available to common shareholders	$	296,555	$	239,468	$	514,082	$	418,005
Basic weighted average shares outstanding	129,161		122,916		128,098		122,015
Net income per share — Basic	$	2.30	$	1.95	$	4.01	$	3.43
Diluted Earnings Per Share
Income available to common shareholders	$	296,555	$	239,468	$	514,082	$	418,005
Effect of dilutive shares	—		—		—		—
Income available to common shareholders	$	296,555	$	239,468	$	514,082	$	418,005
Basic weighted average shares outstanding	129,161		122,916		128,098		122,015
Dilutive shares	3		81		2		164
Diluted weighted average shares outstanding	129,164		122,997		128,100		122,179
Net income per share - Diluted	$	2.30	$	1.95	$	4.01	$	3.42

5.    Revenue and Accounts Receivable

Revenue

Our revenue recognition policy is fully described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. The following tables disaggregate our revenue from contracts with customers by customer type and segment and provide a reconciliation to total operating revenues, including intersegment revenues, for the three and six months ended March 31, 2021 and 2020.

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	Three Months Ended March 31, 2021				Three Months Ended March 31, 2020
	Distribution		Pipeline and Storage		Distribution		Pipeline and Storage
	(In thousands)
Gas sales revenues:
Residential	$	893,720	$	—	$	596,315	$	—
Commercial	326,182		—		230,779		—
Industrial	31,066		—		25,628		—
Public authority and other	20,227		—		14,662		—
Total gas sales revenues	1,271,195		—		867,384		—
Transportation revenues	30,973		151,565		28,504		154,748
Miscellaneous revenues	3,325		3,878		6,986		1,335
Revenues from contracts with customers	1,305,493		155,443		902,874		156,083
Alternative revenue program revenues(1)	(23,313)		(1,275)		29,638		(9,846)
Other revenues	494		—		493		—
Total operating revenues	$	1,282,674	$	154,168	$	933,005	$	146,237

	Six Months Ended March 31, 2021				Six Months Ended March 31, 2020
	Distribution		Pipeline and Storage		Distribution		Pipeline and Storage
	(In thousands)
Gas sales revenues:
Residential	$	1,485,554	$	—	$	1,148,391	$	—
Commercial	535,129		—		442,093		—
Industrial	55,774		—		50,553		—
Public authority and other	33,289		—		27,684		—
Total gas sales revenues	2,109,746		—		1,668,721		—
Transportation revenues	58,740		316,326		55,144		306,758
Miscellaneous revenues	5,721		9,026		13,772		6,490
Revenues from contracts with customers	2,174,207		325,352		1,737,637		313,248
Alternative revenue program revenues(1)	(15,872)		(11,471)		22,887		(18,835)
Other revenues	989		—		985		—
Total operating revenues	$	2,159,324	$	313,881	$	1,761,509	$	294,413

(1)    In our distribution segment, we have weather-normalization adjustment mechanisms that serve to mitigate the effects of weather on our revenue. Additionally, APT has a regulatory mechanism that requires that we share with its tariffed customers 75% of the difference between the total non-tariffed revenues earned during a test period and a regulatorily determined revenue benchmark.

Accounts receivable and allowance for uncollectible accounts

Accounts receivable arise from natural gas sales to residential, commercial, industrial, public authority and other customers. Our accounts receivable balance includes unbilled amounts which represent a customer’s consumption of gas from the date of the last cycle billing through the last day of the month. The receivable balances are short term and generally do not extend beyond one month. To minimize credit risk, we assess the credit worthiness of new customers, require deposits where necessary, assess late fees, pursue collection activities and disconnect service for nonpayment. After disconnection, accounts are written off when deemed uncollectible.

As described in Note 2 to the unaudited condensed consolidated financial statements, on October 1, 2020, we adopted new accounting guidance which requires credit losses on our accounts receivable to be measured using an expected credit loss model over the entire contractual term from the date of initial recognition. At each reporting period, we assess the allowance for uncollectible accounts based on historical experience, current conditions and consideration of expected future conditions. Circumstances which could affect our estimates include, but are not limited to, customer credit issues, the level of natural gas prices, customer deposits and general economic conditions.

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Due to the COVID-19 pandemic, in March 2020 we temporarily suspended disconnecting customers for nonpayment and stopped charging late fees. We are actively working with our customers experiencing financial hardship to offer flexible payment options and directing them to aid agencies for financial assistance. Our allowance for uncollectible accounts reflects the expected impact on our customers’ ability to pay when we resume disconnection activity.

Rollforwards of our allowance for uncollectible accounts for the three and six months ended March 31, 2021 are presented in the table below. The allowance excludes the gas cost portion of customers’ bills for approximately 78 percent of our customers as we have the ability to collect these gas costs through our gas cost recovery mechanisms in most of our jurisdictions.

	Three Months Ended March 31, 2021
	(In thousands)
Beginning balance, December 31, 2020	$	35,089
Current period provisions	11,532
Write-offs charged against allowance	(2,381)
Recoveries of amounts previously written off	440
Ending balance, March 31, 2021	$	44,680

	Six Months Ended March 31, 2021
	(In thousands)
Beginning balance, September 30, 2020	$	29,949
Current period provisions	18,469
Write-offs charged against allowance	(4,669)
Recoveries of amounts previously written off	931
Ending balance, March 31, 2021	$	44,680

6.    Debt

The nature and terms of our debt instruments and credit facilities are described in detail in Note 7 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. Other than as described below, there were no material changes in the terms of our debt instruments during the six months ended March 31, 2021.

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Long-term debt at March 31, 2021 and September 30, 2020 consisted of the following:

	March 31, 2021		September 30, 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 note Series A, 1995-1, 6.67%, due 2025	10,000		10,000
Unsecured 6.75% Debentures, due 2028	150,000		150,000
Finance lease obligations	8,612		8,631
Total long-term debt	7,368,612		4,568,631
Less:
Original issue discount on unsecured senior notes and debentures	3,030		583
Debt issuance cost	49,001		36,104
Current maturities	177		165
	$	7,316,404	$	4,531,779

On March 9, 2021, we completed a public offering of $1.1 billion of 0.625% senior notes due 2023, with an effective interest rate of 0.834%, after giving effect to the offering costs, and $1.1 billion floating rate senior notes due 2023 that bear interest at a rate equal to the the Three-Month LIBOR rate plus 0.38%. The net proceeds from the offering, after the underwriting discount and offering expenses of $2.2 billion, were used for the payment of unplanned natural gas costs incurred during Winter Storm Uri. See Note 8 to the unaudited condensed consolidated financial statements for further information. The notes are subject to optional redemption at any time on or after September 9, 2021 at a price equal to 100 percent of the principal amount of the notes being redeemed, plus any accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.

On October 1, 2020, we completed a public offering of $600 million of 1.50% senior notes due 2031, with an effective interest rate of 1.71%, after giving effect to the offering costs and settlement of our interest rate swaps. The net proceeds from the offering, after the underwriting discount and offering expenses, of $592.3 million, were used for general corporate purposes, including the repayment of working capital borrowings pursuant to our commercial paper program and the related settlement of our interest rate swaps.

Short-term debt

We utilize short-term debt to provide cost-effective, short-term financing until it can be replaced with a balance of long-term debt and equity financing that achieves the Company’s desired capital structure with an equity-to-total-capitalization ratio between 50% and 60%, inclusive of long-term and short-term debt. Our short-term borrowing requirements are driven primarily by construction work in progress and the seasonal nature of the natural gas business.

Our short-term borrowing requirements are satisfied through a combination of a $1.5 billion commercial paper program and four committed revolving credit facilities with third-party lenders that provide $2.5 billion of total working capital funding.

The primary source of our funding is our commercial paper program, which is supported by a five-year unsecured $1.5 billion credit facility that was replaced on March 31, 2021, with a new five-year unsecured $1.5 billion credit facility that expires on March 31, 2026. The new facility bears interest at a base rate or at a LIBOR-based rate for the applicable interest period, plus a margin ranging from zero percent to 0.25 percent for base rate advances or a margin ranging from 0.75 percent to 1.25 percent for LIBOR-based advances, based on the Company’s credit ratings. Additionally, the facility contains a $250

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million accordion feature, which provides the opportunity to increase the total committed loan to $1.75 billion. At March 31, 2021 and September 30, 2020, there were no amounts outstanding under our commercial paper program.

We had a $600 million 364-day unsecured revolving credit facility, which was replaced on March 31, 2021, with a new $900 million three-year unsecured revolving credit facility. This new facility will be used primarily to provide additional working capital funding. The new facility bears interest at a base rate or at a LIBOR-based rate for the applicable interest period, plus a margin ranging from zero percent to 0.25 percent for base rate advances or a margin ranging from 0.75 percent to 1.25 percent for LIBOR-based advances, based on the Company's credit ratings. Additionally, the facility contains a $100 million accordion feature, which provides the opportunity to increase the total committed loan to $1.0 billion. At March 31, 2021, there were no borrowings outstanding under this facility.

Additionally, we have a $50 million 364-day unsecured facility, which was renewed April 1, 2021 and is used to provide working capital funding. There were no borrowings outstanding under this facility as of March 31, 2021.

Finally, we have a $50 million 364-day unsecured revolving credit facility, which was renewed April 29, 2021 and is used to issue letters of credit and to provide working capital funding. At March 31, 2021, there were no borrowings outstanding under this facility; however, outstanding letters of credit reduced the total amount available to us to $44.4 million.

Debt covenants

The availability of funds under these credit facilities is subject to conditions specified in the respective credit agreements, all of which we currently satisfy. These conditions include our compliance with financial covenants and the continued accuracy of representations and warranties contained in these agreements. We are required by the financial covenants in each of these facilities to maintain, at the end of each fiscal quarter, a ratio of total-debt-to-total-capitalization of no greater than 70 percent. At March 31, 2021, our total-debt-to-total-capitalization ratio, as defined in the agreements, was 49 percent. In addition, both the interest margin and the fee that we pay on unused amounts under certain of these facilities are subject to adjustment depending upon our credit ratings.

These credit facilities and our public indentures contain usual and customary covenants for our business, including covenants substantially limiting liens, substantial asset sales and mergers. Additionally, our public debt indentures relating to our senior notes and debentures, as well as certain of our revolving credit agreements, each contain a default provision that is triggered if outstanding indebtedness arising out of any other credit agreements in amounts ranging from in excess of $15 million to in excess of $100 million becomes due by acceleration or if not paid at maturity. We were in compliance with all of our debt covenants as of March 31, 2021. If we were unable to comply with our debt covenants, we would likely be required to repay our outstanding balances on demand, provide additional collateral or take other corrective actions.

7.    Shareholders' Equity

The following tables present a reconciliation of changes in stockholders' equity for the three and six months ended March 31, 2021 and 2020.

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	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, 2020	125,882,477	$	629	$	4,377,149	$	(57,589)	$	2,471,014	$	6,791,203
Net income	—	—		—		—		217,678		217,678
Other comprehensive income	—	—		—		60,121		—		60,121
Cash dividends ($0.625 per share)	—	—		—		—		(79,023)		(79,023)
Common stock issued:
Public and other stock offerings	2,126,118	11		219,998		—		—		220,009
Stock-based compensation plans	144,366	1		3,167		—		—		3,168
Balance, December 31, 2020	128,152,961	641		4,600,314		2,532		2,609,669		7,213,156
Net income	—	—		—		—		296,754		296,754
Other comprehensive income	—	—		—		137,939		—		137,939
Cash dividends ($0.625 per share)	—	—		—		—		(80,325)		(80,325)
Common stock issued:
Public and other stock offerings	2,498,026	12		248,948		—		—		248,960
Stock-based compensation plans	16,122	—		4,441		—		—		4,441
Balance, March 31, 2021	130,667,109	$	653	$	4,853,703	$	140,471	$	2,826,098	$	7,820,925

	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, 2019	119,338,925	$	597	$	3,712,194	$	(114,583)	$	2,152,015	$	5,750,223
Net income	—	—		—		—		178,673		178,673
Other comprehensive income	—	—		—		1,052		—		1,052
Cash dividends ($0.575 per share)	—	—		—		—		(69,557)		(69,557)
Common stock issued:
Public and other stock offerings	2,758,929	13		263,259		—		—		263,272
Stock-based compensation plans	164,549	1		4,111		—		—		4,112
Balance, December 31, 2019	122,262,403	611		3,979,564		(113,531)		2,261,131		6,127,775
Net income	—	—		—		—		239,646		239,646
Other comprehensive income	—	—		—		890		—		890
Cash dividends ($0.575 per share)	—	—		—		—		(70,520)		(70,520)
Common stock issued:
Public and other stock offerings	38,662	1		3,095		—		—		3,096
Stock-based compensation plans	7,660	—		3,528		—		—		3,528
Balance, March 31, 2020	122,308,725	$	612	$	3,986,187	$	(112,641)	$	2,430,257	$	6,304,415

Shelf Registration, At-the-Market Equity Sales Program and Equity Issuances

On February 11, 2020, we filed a shelf registration statement with the Securities and Exchange Commission (SEC) that allows us to issue up to $4.0 billion in common stock and/or debt securities, which expires February 11, 2023. At March 31, 2021, approximately $200 million of securities were available for issuance under the shelf registration statement.

During the six months ended March 31, 2021, we executed forward sales under our ATM equity sales program with various forward sellers who borrowed and sold 2,472,912 shares of our common stock at an aggregate price of $238.6 million. During the six months ended March 31, 2021, we also settled forward sale agreements with respect to 4,537,669 shares that had

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been borrowed and sold by various forward sellers under the ATM program for net proceeds of $460.7 million. As of March 31, 2021, approximately $313 million of equity was available for issuance under the ATM program. Additionally, we had $115.6 million in available proceeds, based on a net price of $90.96 per share, from outstanding forward sale agreements, available through June 30, 2022.

Accumulated Other Comprehensive Income (Loss)

We record deferred gains (losses) in AOCI related to available-for-sale debt securities and interest rate agreement cash flow hedges. Deferred gains (losses) for our available-for-sale debt securities are recognized in earnings upon settlement, while deferred gains (losses) related to our interest rate agreement cash flow hedges are recognized in earnings as they are amortized. The following tables provide the components of our accumulated other comprehensive income (loss) balances, net of the related tax effects allocated to each component of other comprehensive income (loss).

	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	(129)		195,906		195,777
Amounts reclassified from accumulated other comprehensive income	—		2,283		2,283
Net current-period other comprehensive income (loss)	(129)		198,189		198,060
March 31, 2021	$	109	$	140,362	$	140,471

	Available- for-Sale Securities		Interest Rate Agreement Cash Flow Hedges		Total
	(In thousands)
September 30, 2019	$	132	$	(114,715)	$	(114,583)
Other comprehensive loss before reclassifications	(163)		—		(163)
Amounts reclassified from accumulated other comprehensive income	(1)		2,106		2,105
Net current-period other comprehensive income (loss)	(164)		2,106		1,942
March 31, 2020	$	(32)	$	(112,609)	$	(112,641)

8.    Winter Storm Uri

Overview

A historic winter storm impacted supply, market pricing and demand for natural gas in our service territories in mid-February. During this time, the governors of Kansas and Texas each declared a state of emergency, and certain regulatory agencies issued emergency orders that impacted the utility and natural gas industries, including statewide utilities curtailment programs and orders encouraging or requiring jurisdictional natural gas utilities to work to ensure customers were provided with safe and reliable natural gas service.

Due to the historic nature of this winter storm, we experienced unforeseeable and unprecedented market pricing for gas costs, which resulted in aggregated natural gas purchases during the month of February of approximately $2.3 billion. These gas costs were paid by the end of March 2021.

Incremental Financing

As discussed in Note 6 to the unaudited condensed consolidated financial statements, on March 9, 2021, we completed a public offering of $2.2 billion in debt securities and the net proceeds from the offering, after the underwriting discount and offering expenses, were used to substantially fund these purchased gas costs. As a result of this unplanned debt issuance, S&P lowered its long-term/short-term credit ratings from A/A-1 to A-/A-2 and placed our ratings under negative outlook. Moody’s reaffirmed its long-term and short-term credit ratings and placed our ratings under negative outlook. These credit rating adjustments and the issuance of unplanned debt did not impact our ability to satisfy our debt covenants.

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Regulatory Asset Accounting

Our purchased gas costs are recoverable through purchased gas cost adjustment mechanisms in each state where we operate. Due to the unprecedented level of purchased gas costs incurred during Winter Storm Uri, the Kansas Corporation Commission (KCC) and the Railroad Commission of Texas (RRC) issued orders authorizing natural gas utilities to record a regulatory asset to account for the extraordinary costs associated with the winter storm. Pursuant to these orders, as of March 31, 2021, we have recorded a $2.1 billion regulatory asset for incremental costs, including carrying costs, incurred in Kansas ($76.7 million) and Texas ($2,016.8 million) within deferred charges and other assets on our condensed consolidated balance sheet. These costs are subject to review for prudency by each commission and may be adjusted.

Income Taxes

We deduct our purchased gas costs for federal income tax purposes in the period they are paid. Based on our current projection of taxable income for fiscal 2021 and the expected magnitude of the purchased gas cost deduction, we recorded a $469.4 million (tax effected) increase in our net operating loss carryforwards and a corresponding increase to our deferred tax liability as of March 31, 2021.

At March 31, 2021, we had $813.1 million (tax effected) of federal net operating loss carryforwards. The federal net operating loss carryforwards are available to offset future taxable income. Net operating loss carryforwards incurred prior to December 22, 2017 begin to expire in 2029. The Company also has $57.5 million (tax effected) of state net operating loss carryforwards (net of $15.3 million of federal effects) and $1.8 million of state tax credits carryforwards (net of $0.5 million of federal effects). Depending on the jurisdiction in which the state net operating loss was generated, the carryforwards are subject to expiration through the remainder of fiscal 2021.

Securitization Legislation

To minimize the impact on the customer bill by extending the recovery periods for these unprecedented purchased gas costs, the Kansas and Texas State Legislatures each introduced securitization legislation during our fiscal second quarter. The following summarizes the status of the legislation as of the date of this filing.

Kansas

The Kansas securitization legislation permits a natural gas public utility, in its sole discretion, to apply to the KCC for a financing order for the recovery of qualified extraordinary costs through the issuance of bonds. Within 25 days after a complete application is filed, the KCC shall establish a procedural schedule that requires it to issue a decision on the application within 180 days from the date a complete application was filed. Utilities may apply for a recovery period of up to 32 years. The legislation became effective April 9, 2021.

Texas

The proposed Texas securitization legislation authorizes the RRC to issue a statewide securitization financing order to recover the extraordinary gas costs incurred by natural gas utilities from current and future customers through uniform monthly volumetric charges for a period of up to 30 years.

The proposed legislation provides that natural gas utilities have 60 days from the passage of the bill to submit extraordinary gas costs incurred during Winter Storm Uri for a prudency review. The RRC has 90 days to approve each filing. Following the approval of all applications, the RRC will issue a financing order to the Texas Public Financing Authority authorizing the issuance of customer rate relief bonds to securitize the aggregated extraordinary costs for all participating utilities. The participating utilities, as servicers acting on behalf of the state of the securitization financing, will bill and collect customer rate relief charges from their current and future customers and remit the collections to the state issuer of the securitization financing. The proposed legislation is still being considered by the Texas Legislature.

9.     Interim Pension and Other Postretirement Benefit Plan Information

The components of our net periodic pension cost for our pension and other postretirement benefit plans for the three and six months ended March 31, 2021 and 2020 are presented in the following tables. Most of these costs are recoverable through our tariff rates. A portion of these costs is capitalized into our rate base or deferred as a regulatory asset or liability. The remaining costs are recorded as a component of operation and maintenance expense or other non-operating expense.

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	Three Months Ended March 31
	Pension Benefits				Other Benefits
	2021		2020		2021		2020
	(In thousands)
Components of net periodic pension cost:
Service cost	$	4,613	$	4,652	$	4,306	$	3,366
Interest cost(1)	5,028		5,843		2,660		2,653
Expected return on assets(1)	(6,978)		(7,079)		(2,614)		(2,625)
Amortization of prior service cost (credit)(1)	(58)		(58)		43		43
Amortization of actuarial (gain) loss(1)	3,171		3,242		—		(334)
Net periodic pension cost	$	5,776	$	6,600	$	4,395	$	3,103

	Six Months Ended March 31
	Pension Benefits				Other Benefits
	2021		2020		2021		2020
	(In thousands)
Components of net periodic pension cost:
Service cost	$	9,225	$	9,305	$	8,612	$	6,733
Interest cost(1)	10,056		11,686		5,320		5,306
Expected return on assets(1)	(13,956)		(14,158)		(5,228)		(5,249)
Amortization of prior service cost (credit)(1)	(116)		(116)		86		87
Amortization of actuarial (gain) loss(1)	6,343		6,483		—		(669)
Net periodic pension cost	$	11,552	$	13,200	$	8,790	$	6,208

(1)    The components of net periodic cost other than the service cost component are included in the line item other non-operating expense in the condensed consolidated statements of comprehensive income or are capitalized on the condensed consolidated balance sheets as a regulatory asset or liability, as described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.

For the six months ended March 31, 2021 we contributed $8.7 million to our postretirement medical plans. We anticipate contributing a total of between $15 million and $25 million to our postretirement plans during fiscal 2021.

10.    Commitments and Contingencies

Litigation and Environmental Matters

In the normal course of business, we are subject to various legal and regulatory proceedings. For such matters, we record liabilities when they are considered probable and estimable, based on currently available facts, our historical experience and our estimates of the ultimate outcome or resolution of the liability in the future. While the outcome of these proceedings is uncertain and a loss in excess of the amount we have accrued is possible though not reasonably estimable, it is the opinion of management that any amounts exceeding the accruals will not have a material adverse impact on our financial position, results of operations or cash flows.

We maintain liability insurance for various risks associated with the operation of our natural gas pipelines and facilities, including for property damage and bodily injury. These liability insurance policies generally require us to be responsible for the first $1.0 million (self-insured retention) of each incident.

The National Transportation Safety Board (NTSB) held a public meeting on January 12, 2021 to determine the probable cause of the incident that occurred at a Dallas, Texas residence on February 23, 2018 that resulted in one fatality and injuries to four other residents. At the meeting, the Board deliberated and voted on proposed findings of fact, a probable cause statement, and safety recommendations. On February 8, 2021, the NTSB issued its final report that included an Executive Summary, Findings, Probable Cause, and Recommendations. Also on February 8, 2021, safety recommendations letters were distributed to recommendation recipients, including Atmos Energy. Following the release of the NTSB’s final report, the Railroad Commission of Texas (RRC) completed its safety evaluation related to the same incident finding four alleged violations and initiated an enforcement proceeding to pursue administrative penalties totaling $1.6 million. We are working with the RRC to resolve the alleged violations and satisfy the administrative penalties.

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We are a party to various other litigation and environmental-related matters or claims that have arisen in the ordinary course of our business. While the results of such litigation and response actions to such environmental-related matters or claims cannot be predicted with certainty, we continue to believe the final outcome of such litigation and matters or claims will not have a material adverse effect on our financial condition, results of operations or cash flows.

Purchase Commitments

Our distribution divisions maintain supply contracts with several vendors that generally cover a period of up to one year. Commitments for estimated base gas volumes are established under these contracts on a monthly basis at contractually negotiated prices. Commitments for incremental daily purchases are made as necessary during the month in accordance with the terms of the individual contract.

Our Mid-Tex Division also maintains a limited number of long-term supply contracts to ensure a reliable source of gas for our customers in its service area, which obligate it to purchase specified volumes at prices indexed to natural gas hubs. These purchase commitment contracts are detailed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. There were no material changes to the purchase commitments for the six months ended March 31, 2021.

Rate Regulatory Proceedings

As of March 31, 2021, routine rate regulatory proceedings were in progress in several of our service areas, which are discussed in further detail below in Management’s Discussion and Analysis — Recent Ratemaking Developments. Except for these proceedings, there were no material changes to rate regulatory proceedings for the six months ended March 31, 2021.

11.    Financial Instruments

We currently use financial instruments to mitigate commodity price risk and interest rate risk. The objectives and strategies for using financial instruments and the related accounting for these financial instruments are fully described in Notes 2 and 14 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. During the six months ended March 31, 2021, there were no material changes in our objectives, strategies and accounting for using financial instruments. Our financial instruments do not contain any credit-risk-related or other contingent features that could cause payments to be accelerated when our financial instruments are in net liability positions. The following summarizes those objectives and strategies.

Commodity Risk Management Activities

Our purchased gas cost adjustment mechanisms essentially insulate our distribution segment from commodity price risk; however, our customers are exposed to the effects of volatile natural gas prices. We manage this exposure through a combination of physical storage, fixed-price forward contracts and financial instruments, primarily over-the-counter swap and option contracts, in an effort to minimize the impact of natural gas price volatility on our customers during the winter heating season.

We typically seek to hedge between 25 and 50 percent of anticipated heating season gas purchases using financial instruments. For the 2020-2021 heating season (generally October through March), in the jurisdictions where we are permitted to utilize financial instruments, we hedged approximately 39 percent, or 15.8 Bcf, of the winter flowing gas requirements. We have not designated these financial instruments as hedges for accounting purposes.

Interest Rate Risk Management Activities

We manage interest rate risk by periodically entering into financial instruments to effectively fix the Treasury yield component of the interest cost associated with anticipated financings.

As of March 31, 2021, we had the following forward starting interest rate swaps to effectively fix the Treasury yield component which we designated as cash flow hedges at the time the agreements were executed:

Planned Debt Issuance Date	Amount Hedged		Effective Interest Rate
	(In thousands)
Fiscal 2022	$	450,000	1.33	%
Fiscal 2023	300,000		1.36	%
Fiscal 2025	300,000		1.35	%
	$	1,050,000

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Quantitative Disclosures Related to Financial Instruments

The following tables present detailed information concerning the impact of financial instruments on our condensed consolidated balance sheet and statements of comprehensive income.

As of March 31, 2021, our financial instruments were comprised of both long and short commodity positions. A long position is a contract to purchase the commodity, while a short position is a contract to sell the commodity. As of March 31, 2021, we had 8,584 MMcf of net long commodity contracts outstanding. These contracts have not been designated as hedges.

Financial Instruments on the Balance Sheet

The following tables present the fair value and balance sheet classification of our financial instruments as of March 31, 2021 and September 30, 2020. The gross amounts of recognized assets and liabilities are netted within our unaudited condensed consolidated balance sheets to the extent that we have netting arrangements with our counterparties. However, for March 31, 2021 and September 30, 2020, no gross amounts and no cash collateral were netted within our consolidated balance sheet.

	Balance Sheet Location	Assets		Liabilities
		(In thousands)
March 31, 2021
Designated As Hedges:
Interest rate contracts	Other current assets / Other current liabilities	$	131,798	$	—
Interest rate contracts	Deferred charges and other assets / Deferred credits and other liabilities	193,786		—
Total		325,584		—
Not Designated As Hedges:
Commodity contracts	Other current assets / Other current liabilities	1,574		(62)
Total		1,574		(62)
Gross / Net Financial Instruments		$	327,158	$	(62)

	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)

Impact of Financial Instruments on the Statement of Comprehensive Income

Cash Flow Hedges

As discussed above, our distribution segment has interest rate agreements, which we designated as cash flow hedges at the time the agreements were executed. The net loss on settled interest rate agreements reclassified from AOCI into interest charges on our condensed consolidated statements of comprehensive income for the three months ended March 31, 2021 and

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2020 was $1.5 million and $1.4 million and for the six months ended March 31, 2021 and 2020 was $2.9 million and $2.7 million.

The following table summarizes the gains and losses arising from hedging transactions that were recognized as a component of other comprehensive income (loss), net of taxes, for the three and six months ended March 31, 2021 and 2020. The amounts included in the table below exclude gains and losses arising from ineffectiveness because those amounts are immediately recognized in the statement of comprehensive income as incurred.

	Three Months Ended March 31				Six Months Ended March 31
	2021		2020		2021		2020
	(In thousands)
Increase in fair value:
Interest rate agreements	$	136,864	$	—	$	195,906	$	—
Recognition of losses in earnings due to settlements:
Interest rate agreements	1,141		1,053		2,283		2,106
Total other comprehensive income (loss) from hedging, net of tax	$	138,005	$	1,053	$	198,189	$	2,106

Deferred gains (losses) recorded in AOCI associated with our interest rate agreements are recognized in earnings as they are amortized over the terms of the underlying debt instruments. As of March 31, 2021, we had $112.2 million of net realized losses in AOCI associated with our interest rate agreements. The following amounts, net of deferred taxes, represent the expected recognition in earnings of the deferred net losses recorded in AOCI associated with our interest rate agreements, based upon the fair values of these agreements at the date of settlement. The remaining amortization periods for these settled amounts extend through fiscal 2049. However, the table below does not include the expected recognition in earnings of our outstanding interest rate swaps as those instruments have not yet settled.

	Interest Rate Agreements
	(In thousands)
Next twelve months	$	(4,566)
Thereafter	(107,653)
Total	$	(112,219)

Financial Instruments Not Designated as Hedges

As discussed above, commodity contracts which are used in our distribution segment are not designated as hedges. However, there is no earnings impact on our distribution segment as a result of the use of these financial instruments because the gains and losses arising from the use of these financial instruments are recognized in the consolidated statement of comprehensive income as a component of purchased gas cost when the related costs are recovered through our rates and recognized in revenue. Accordingly, the impact of these financial instruments is excluded from this presentation.

12.    Fair Value Measurements

We report certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We record cash and cash equivalents, accounts receivable and accounts payable at carrying value, which substantially approximates fair value due to the short-term nature of these assets and liabilities. For other financial assets and liabilities, we primarily use quoted market prices and other observable market pricing information to minimize the use of unobservable pricing inputs in our measurements when determining fair value. The methods used to determine fair value for our assets and liabilities are fully described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. During the six months ended March 31, 2021, there were no changes in these methods.

Fair value measurements also apply to the valuation of our pension and postretirement plan assets. Current accounting guidance requires employers to annually disclose information about fair value measurements of the assets of a defined benefit pension or other postretirement plan. The fair value of these assets is presented in Note 9 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.

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Quantitative Disclosures

Financial Instruments

The classification of our fair value measurements requires judgment regarding the degree to which market data is observable or corroborated by observable market data. Authoritative accounting literature establishes a fair value hierarchy that prioritizes the inputs used to measure fair value based on observable and unobservable data. The hierarchy categorizes the inputs into three levels, with the highest priority given to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), with the lowest priority given to unobservable inputs (Level 3). The following tables summarize, by level within the fair value hierarchy, our assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2021 and September 30, 2020. Assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)(1)		Significant Other Unobservable Inputs (Level 3)		Netting and Cash Collateral		March 31, 2021
	(In thousands)
Assets:
Financial instruments	$	—	$	327,158	$	—	$	—	$	327,158
Debt and equity securities
Registered investment companies	34,501		—		—		—		34,501
Bond mutual funds	34,131		—		—		—		34,131
Bonds(2)	—		35,755		—		—		35,755
Money market funds	—		5,105		—		—		5,105
Total debt and equity securities	68,632		40,860		—		—		109,492
Total assets	$	68,632	$	368,018	$	—	$	—	$	436,650
Liabilities:
Financial instruments	$	—	$	62	$	—	$	—	$	62

	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

(1)Our Level 2 measurements consist of over-the-counter options and swaps, which are valued using a market-based approach in which observable market prices are adjusted for criteria specific to each instrument, such as the strike price, notional amount or basis differences, municipal and corporate bonds, which are valued based on the most recent available quoted market prices and money market funds that are valued at cost.

(2)Our investments in bonds are considered available-for-sale debt securities in accordance with current accounting guidance.

Debt and equity securities are comprised of our available-for-sale debt securities and our equity securities. As described further in Note 2 to the unaudited condensed consolidated financial statements, we adopted ASC 326 effective October 1, 2020. In accordance with the new guidance, we evaluate the performance of our available-for-sale debt securities on an investment by

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investment basis for impairment, taking into consideration the investment’s purpose, volatility, current returns and any intent to sell the security. As of March 31, 2021, no allowance for credit losses was recorded for our available-for-sale debt securities. At March 31, 2021 and September 30, 2020, the amortized cost of our available-for-sale debt securities was $35.6 million and $32.6 million. At March 31, 2021, we maintained investments in bonds that have contractual maturity dates ranging from April 2021 through March 2024.

Other Fair Value Measures

Our long-term debt is recorded at carrying value. The fair value of our long-term debt, excluding finance leases, is determined using third party market value quotations, which are considered Level 1 fair value measurements for debt instruments with a recent, observable trade or Level 2 fair value measurements for debt instruments where fair value is determined using the most recent available quoted market price. The carrying value of our finance leases materially approximates fair value. The following table presents the carrying value and fair value of our long-term debt, excluding finance leases, debt issuance costs and original issue premium or discount, as of March 31, 2021 and September 30, 2020:

	March 31, 2021		September 30, 2020
	(In thousands)
Carrying Amount	$	7,360,000	$	4,560,000
Fair Value	$	7,828,415	$	5,597,183

13.    Concentration of Credit Risk

Information regarding our concentration of credit risk is disclosed in Note 16 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. During the six months ended March 31, 2021, there were no material changes in our concentration of credit risk.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of Atmos Energy Corporation

Results of Review of Interim Financial Statements

We have reviewed the accompanying condensed consolidated balance sheet of Atmos Energy Corporation (the Company) as of March 31, 2021, the related condensed consolidated statements of comprehensive income for the three and six months ended March 31, 2021 and 2020, the condensed consolidated statements of cash flows for the six months ended March 31, 2021 and 2020, and the related notes (collectively referred to as the "condensed consolidated interim financial statements"). Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of September 30, 2020, the related consolidated statements of comprehensive income, shareholders’ equity, and cash flows for the year then ended, and the related notes and schedule (not presented herein); and in our report dated November 13, 2020, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of September 30, 2020, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/    ERNST & YOUNG LLP

Dallas, Texas

May 5, 2021

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

INTRODUCTION

The following discussion should be read in conjunction with the condensed consolidated financial statements in this Quarterly Report on Form 10-Q and Management’s Discussion and Analysis in our Annual Report on Form 10-K for the year ended September 30, 2020.

Cautionary Statement for the Purposes of the Safe Harbor under the Private Securities Litigation Reform Act of 1995

The statements contained in this Quarterly Report on Form 10-Q may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this Report are forward-looking statements made in good faith by us and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this Report, or any other of our documents or oral presentations, the words “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “goal”, “intend”, “objective”, “plan”, “projection”, “seek”, “strategy” or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements relating to our strategy, operations, markets, services, rates, recovery of costs, availability of gas supply and other factors. These risks and uncertainties include the following: federal, state and local regulatory and political trends and decisions, including the impact of rate proceedings before various state regulatory commissions; increased federal regulatory oversight and potential penalties; possible increased federal, state and local regulation of the safety of our operations; the impact of greenhouse gas emissions or other legislation or regulations intended to address climate change; possible significant costs and liabilities resulting from pipeline integrity and other similar programs and related repairs; the inherent hazards and risks involved in distributing, transporting and storing natural gas; the availability and accessibility of contracted gas supplies, interstate pipeline and/or storage services; increased competition from energy suppliers and alternative forms of energy; adverse weather conditions; the impact of climate change; the inability to continue to hire, train and retain operational, technical and managerial personnel; increased dependence on technology that may hinder the Company's business if such technologies fail; the threat of cyber-attacks or acts of cyber-terrorism that could disrupt our business operations and information technology systems or result in the loss or exposure of confidential or sensitive customer, employee or Company information; natural disasters, terrorist activities or other events and other risks and uncertainties discussed herein, all of which are difficult to predict and many of which are beyond our control; the capital-intensive nature of our business; our ability to continue to access the credit and capital markets to execute our business strategy; market risks beyond our control affecting our risk management activities, including commodity price volatility, counterparty performance or creditworthiness and interest rate risk; the concentration of our operations in Texas; the impact of adverse economic conditions on our customers; changes in the availability and price of natural gas; increased costs of providing health care benefits, along with pension and postretirement health care benefits and increased funding requirements; and the outbreak of COVID-19 and its impact on business and economic conditions. Accordingly, while we believe these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. Further, we undertake no obligation to update or revise any of our forward-looking statements whether as a result of new information, future events or otherwise.

OVERVIEW

Atmos Energy and our subsidiaries are engaged in the regulated natural gas distribution and pipeline and storage businesses. We distribute natural gas through sales and transportation arrangements to over three million residential, commercial, public authority and industrial customers throughout our six distribution divisions, which at March 31, 2021 covered service areas located in eight states. In addition, we transport natural gas for others through our distribution and pipeline systems.

We manage and review our consolidated operations through the following reportable segments:

•The distribution segment is primarily comprised of our regulated natural gas distribution and related sales operations in eight states.

•The pipeline and storage segment is comprised primarily of the pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana.

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CRITICAL ACCOUNTING ESTIMATES AND POLICIES

Our condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States. Preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosures of contingent assets and liabilities. We based our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances. On an ongoing basis, we evaluate our estimates, including those related to the allowance for doubtful accounts, legal and environmental accruals, insurance accruals, pension and postretirement obligations, deferred income taxes and the valuation of goodwill and other long-lived assets. Actual results may differ from such estimates.

Our critical accounting policies used in the preparation of our consolidated financial statements are described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020 and include the following:

•Regulation

•Unbilled revenue

•Pension and other postretirement plans

•Impairment assessments

Our critical accounting policies are reviewed periodically by the Audit Committee of our Board of Directors. There were no significant changes to these critical accounting policies during the six months ended March 31, 2021.

RESULTS OF OPERATIONS

Executive Summary

Atmos Energy strives to operate our businesses safely and reliably while delivering superior shareholder value. Our commitment to modernizing our natural gas distribution and transmission systems requires a significant level of capital spending. We have the ability to begin recovering a significant portion of these investments timely through rate designs and mechanisms that reduce or eliminate regulatory lag and separate the recovery of our approved rate from customer usage patterns. The execution of our capital spending program, the ability to recover these investments timely and our ability to access the capital markets to satisfy our financing needs are the primary drivers that affect our financial performance.

During the six months ended March 31, 2021, we recorded net income of $514.4 million, or $4.01 per diluted share, compared to net income of $418.3 million, or $3.42 per diluted share for the six months ended March 31, 2020. The 23 percent period-over-period increase in net income largely reflects positive rate outcomes driven by safety and reliability spending and customer growth in our distribution segment combined with a reduction in certain operating and maintenance expenses. Additionally, in our distribution segment, we have experienced lower service order revenues and higher bad debt expense due to the temporary suspension of collection activities during the pandemic. Finally, our year-to-date results reflect a reduction in our annual effective tax rate related to the refund of excess deferred taxes, primarily to APT customers, which has been or will be offset by a corresponding decrease in revenues over the remainder of the fiscal year.

During the six months ended March 31, 2021, we implemented ratemaking regulatory actions which resulted in an increase in annual operating income of $109.8 million. As of March 31, 2021, we had ratemaking efforts in progress seeking a total increase in annual operating income of $113.8 million.

Capital expenditures for the six months ended March 31, 2021 were $845.7 million. Over 85 percent was invested to improve the safety and reliability of our distribution and transportation systems, with a significant portion of this investment incurred under regulatory mechanisms that reduce lag to six months or less.

During the six months ended March 31, 2021, we completed approximately $3.1 billion of long-term debt and equity financing, including the $2.2 billion of incremental financing issued to pay for the purchased gas costs incurred during Winter Storm Uri. As of March 31, 2021, our equity capitalization was 60.4 percent, excluding the $2.2 billion of incremental financing, and we had approximately $3.5 billion in total liquidity, including cash and cash equivalents and funds available through equity forward sales agreements.

As a result of our sustained financial performance, our Board of Directors increased the quarterly dividend by 8.7 percent for fiscal 2021.

The following discusses the results of operations for each of our operating segments.

Distribution Segment

The distribution segment is primarily comprised of our regulated natural gas distribution and related sales operations in eight states. The primary factors that impact the results of this segment are our ability to earn our authorized rates of return, competitive factors in the energy industry and economic conditions in our service areas.

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Our ability to earn our authorized rates of return is based primarily on our ability to improve the rate design in our various ratemaking jurisdictions to minimize regulatory lag and, ultimately, separate the recovery of our approved rates from customer usage patterns. Improving rate design is a long-term process and is further complicated by the fact that we operate in multiple rate jurisdictions. Under our current rate design, approximately 70 percent of our distribution segment revenues are earned through the first six months of the fiscal year. Additionally, we currently recover approximately 60 percent of our distribution segment revenue, excluding gas costs, through the base customer charge, which partially separates the recovery of our approved rate from customer usage patterns.

Seasonal weather patterns can also affect our distribution operations. However, the effect of weather that is above or below normal is substantially offset through weather normalization adjustments, known as WNA, which have been approved by state regulatory commissions for approximately 97 percent of our residential and commercial revenues in the following states for the following time periods:

Kansas, West Texas	October — May
Tennessee	October — April
Kentucky, Mississippi, Mid-Tex	November — April
Louisiana	December — March
Virginia	January — December

Our distribution operations are also affected by the cost of natural gas. We are generally able to pass the cost of gas through to our customers without markup under purchased gas cost adjustment mechanisms; therefore, increases in the cost of gas are offset by a corresponding increase in revenues. Revenues in our Texas and Mississippi service areas include franchise fees and gross receipts taxes, which are calculated as a percentage of revenue (inclusive of gas costs). Therefore, the amount of these taxes included in revenues is influenced by the cost of gas and the level of gas sales volumes. We record the associated tax expense as a component of taxes, other than income.

The cost of gas typically does not have a direct impact on our operating income because these costs are recovered through our purchased gas cost adjustment mechanisms.  However, higher gas costs may adversely impact our accounts receivable collections, resulting in higher bad debt expense.  This risk is currently mitigated by rate design that allows us to collect from our customers the gas cost portion of our bad debt expense on approximately 78 percent of our residential and commercial revenues.  Additionally, higher gas costs may require us to increase borrowings under our credit facilities, resulting in higher interest expense.   Finally, higher gas costs, as well as competitive factors in the industry and general economic conditions may cause customers to conserve or, in the case of industrial consumers, to use alternative energy sources.

Three Months Ended March 31, 2021 compared with Three Months Ended March 31, 2020

Financial and operational highlights for our distribution segment for the three months ended March 31, 2021 and 2020 are presented below.

	Three Months Ended March 31
	2021		2020		Change
	(In thousands, unless otherwise noted)
Operating revenues	$	1,282,674	$	933,005	$	349,669
Purchased gas cost	691,147		418,935		272,212
Operating expenses	288,272		260,529		27,743
Operating income	303,255		253,541		49,714
Other non-operating expense	(760)		(5,191)		4,431
Interest charges	14,017		10,797		3,220
Income before income taxes	288,478		237,553		50,925
Income tax expense	56,142		50,489		5,653
Net income	$	232,336	$	187,064	$	45,272
Consolidated distribution sales volumes — MMcf	145,478		119,358		26,120
Consolidated distribution transportation volumes — MMcf	45,765		44,512		1,253
Total consolidated distribution throughput — MMcf	191,243		163,870		27,373
Consolidated distribution average cost of gas per Mcf sold	$	4.75	$	3.51	$	1.24

Operating income for our distribution segment increased 20 percent, which primarily reflects:

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•a $65.8 million net increase in rate adjustments, primarily in our Mid-Tex, Mississippi and West Texas Divisions.

•a $4.9 million increase from customer growth primarily in our Mid-Tex Division.

Partially offset by:

•a $3.9 million decrease in service order revenues primarily due to the temporary suspension of collection activities.

•a $6.5 million increase in bad debt expense primarily due to the temporary suspension of collection activities.

•a $12.3 million increase in depreciation expense and property taxes associated with increased capital investments.

The quarter-over-quarter decrease in our effective income tax rate reflects the anticipated impact on our annual effective income tax rate for the refund of excess deferred income taxes to customers that began during the second quarter of fiscal 2021. This reduction in income tax expense has been or will be offset with a corresponding reduction in revenues over the remainder of the fiscal year.

The following table shows our operating income by distribution division, in order of total rate base, for the three months ended March 31, 2021 and 2020. The presentation of our distribution operating income is included for financial reporting purposes and may not be appropriate for ratemaking purposes.

	Three Months Ended March 31
	2021		2020		Change
	(In thousands)
Mid-Tex	$	148,649	$	109,707	$	38,942
Kentucky/Mid-States	33,248		34,386		(1,138)
Louisiana	32,572		31,302		1,270
West Texas	26,199		23,844		2,355
Mississippi	38,143		32,243		5,900
Colorado-Kansas	20,863		18,796		2,067
Other	3,581		3,263		318
Total	$	303,255	$	253,541	$	49,714

Six Months Ended March 31, 2021 compared with Six Months Ended March 31, 2020

Financial and operational highlights for our distribution segment for the six months ended March 31, 2021 and 2020 are presented below.

	Six Months Ended March 31
	2021		2020		Change
	(In thousands, unless otherwise noted)
Operating revenues	$	2,159,324	$	1,761,509	$	397,815
Purchased gas cost	1,102,219		816,493		285,726
Operating expenses	544,296		511,198		33,098
Operating income	512,809		433,818		78,991
Other non-operating income (expense)	75		(3,237)		3,312
Interest charges	24,729		27,159		(2,430)
Income before income taxes	488,155		403,422		84,733
Income tax expense	102,127		86,601		15,526
Net income	$	386,028	$	316,821	$	69,207
Consolidated distribution sales volumes — MMcf	234,339		218,419		15,920
Consolidated distribution transportation volumes — MMcf	85,374		85,009		365
Total consolidated distribution throughput — MMcf	319,713		303,428		16,285
Consolidated distribution average cost of gas per Mcf sold	$	4.70	$	3.74	$	0.96

Operating income for our distribution segment increased 18 percent, which primarily reflects:

•a $102.7 million net increase in rate adjustments, primarily in our Mid-Tex, Mississippi, Louisiana and West Texas Divisions.

•a $10.7 million increase from customer growth primarily in our Mid-Tex Division.

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•a $6.2 million decrease in operating and maintenance expenses, excluding bad debt expense, primarily due to a decrease in travel and entertainment expense.

•a $14.2 million increase in revenue-related taxes primarily in our Mid-Tex Division, partially offset by a corresponding $9.2 million increase in the related tax expense.

Partially offset by:

•an $8.1 million decrease in net weather and consumption, primarily during the first quarter of fiscal 2021 attributed to warmer weather and a decrease in commercial sales volumes.

•an $8.4 million decrease in service order revenues primarily due to the temporary suspension of collection activities.

•an $8.8 million increase in bad debt expense primarily due to the temporary suspension of collection activities.

•a $22.1 million increase in depreciation expense and property taxes associated with increased capital investments.

The year-over-year decrease in our effective income tax rate reflects the anticipated impact on our annual effective income tax rate for the refund of excess deferred income taxes to customers that began during the second quarter of fiscal 2021. This reduction in income tax expense has been or will be offset with a corresponding reduction in revenues over the remainder of the fiscal year.

The following table shows our operating income by distribution division, in order of total rate base, for the six months ended March 31, 2021 and 2020. The presentation of our distribution operating income is included for financial reporting purposes and may not be appropriate for ratemaking purposes.

	Six Months Ended March 31
	2021		2020		Change
	(In thousands)
Mid-Tex	$	250,969	$	188,002	$	62,967
Kentucky/Mid-States	57,354		57,667		(313)
Louisiana	55,691		55,595		96
West Texas	46,246		41,610		4,636
Mississippi	62,777		54,657		8,120
Colorado-Kansas	34,093		32,532		1,561
Other	5,679		3,755		1,924
Total	$	512,809	$	433,818	$	78,991

Recent Ratemaking Developments

The amounts described in the following sections represent the operating income that was requested or received in each rate filing, which may not necessarily reflect the stated amount referenced in the final order, as certain operating costs may have changed as a result of a commission’s or other governmental authority’s final ruling. During the first six months of fiscal 2021, we implemented regulatory proceedings, resulting in a $109.8 million increase in annual operating income as summarized below.

Rate Action	Annual Increase (Decrease) in Operating Income
	(In thousands)
Annual formula rate mechanisms	$	110,630
Rate case filings	—
Other rate activity	(877)
	$	109,753

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The following ratemaking efforts seeking $69.8 million in increased annual operating income were in progress as of March 31, 2021:

Division	Rate Action	Jurisdiction	Operating Income Requested
			(In thousands)
Kentucky/Mid-States	Formula Rate Mechanism	Tennessee	$	7,689
Louisiana	Formula Rate Mechanism	Louisiana	11,829
Mid-Tex	Formula Rate Mechanism	City of Dallas	15,871
Mid-Tex	Infrastructure Mechanism	ATM Cities	11,110
Mid-Tex	Infrastructure Mechanism	Environs	4,643
Mississippi	Infrastructure Mechanism	Mississippi	8,572
West Texas	Infrastructure Mechanism	Environs	1,271
West Texas	Infrastructure Mechanism	WTX Triangle	418
West Texas	Rate Case	Amarillo, Lubbock, Dalhart and Channing (1)	8,406
			$	69,809

(1)    On March 5, 2021, we reached a settlement agreement of $5.1 million pending final approval by the ALDC cities in May 2021; we anticipate new rates will be implemented on June 1, 2021.

Annual Formula Rate Mechanisms

As an instrument to reduce regulatory lag, formula rate mechanisms allow us to refresh our rates on an annual basis without filing a formal rate case. However, these filings still involve discovery by the appropriate regulatory authorities prior to the final determination of rates under these mechanisms. We currently have formula rate mechanisms in our Louisiana, Mississippi and Tennessee operations and in substantially all the service areas in our Texas divisions. Additionally, we have specific infrastructure programs in substantially all of our distribution divisions with tariffs in place to permit the investment associated with these programs to have their surcharge rate adjusted annually to recover approved capital costs incurred in a prior test-year period. The following table summarizes our annual formula rate mechanisms by state:

	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)	—

(1)    Infrastructure mechanisms in Texas, Louisiana and Tennessee allow for the deferral of all expenses associated with capital expenditures incurred pursuant to these rules, which primarily consists of interest, depreciation and other taxes (Texas only), until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates.

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The following annual formula rate mechanisms were approved during the six months ended March 31, 2021:

Division	Jurisdiction	Test Year Ended	Increase in Annual Operating Income		Effective Date
		(In thousands)
2021 Filings:
Colorado-Kansas	Kansas GSRS	09/30/2020	$	1,695	02/01/2021
Colorado-Kansas	Colorado SSIR	12/31/2021	2,366		01/01/2021
Mid-Tex	Mid-Tex Cities RRM	12/31/2019	82,645		12/01/2020
West Texas	West Texas Cities RRM	12/31/2019	5,645		12/01/2020
Mississippi	Mississippi - SIR	10/31/2021	10,556		11/01/2020
Mississippi	Mississippi - SRF	10/31/2021	5,856		11/01/2020
Kentucky/Mid-States	Virginia - SAVE	09/30/2021	305		10/01/2020
Kentucky/Mid-States	Kentucky PRP	09/30/2021	1,562		10/01/2020
Total 2021 Filings			$	110,630

Rate Case Filings

A rate case is a formal request from Atmos Energy to a regulatory authority to increase rates that are charged to our customers. Rate cases may also be initiated when the regulatory authorities request us to justify our rates. This process is referred to as a “show cause” action. Adequate rates are intended to provide for recovery of the Company’s costs as well as a fair rate of return and ensure that we continue to deliver reliable, reasonably priced natural gas service safely to our customers. There was no rate case activity completed during the six months ended March 31, 2021.

Other Ratemaking Activity

The following table summarizes other ratemaking activity during the six months ended March 31, 2021.

Division	Jurisdiction	Rate Activity	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)

(1)    The Ad Valorem filing relates to property taxes that are either over or undercollected compared to the amount included in our Kansas service area's base rate.

Pipeline and Storage Segment

Our pipeline and storage segment consists of the pipeline and storage operations of our Atmos Pipeline–Texas Division (APT) and our natural gas transmission operations in Louisiana. APT is one of the largest intrastate pipeline operations in Texas with a heavy concentration in the established natural gas producing areas of central, northern and eastern Texas, extending into or near the major producing areas of the Barnett Shale, the Texas Gulf Coast and the Permian Basin of West Texas. APT provides transportation and storage services to our Mid-Tex Division, other third-party local distribution companies, industrial and electric generation customers, as well as marketers and producers. Over 80 percent of this segment’s revenues are derived from these services. As part of its pipeline operations, APT owns and operates five underground storage facilities in Texas.

Our natural gas transmission operations in Louisiana are comprised of a 21-mile pipeline located in the New Orleans, Louisiana area that is primarily used to aggregate gas supply for our distribution division in Louisiana under a long-term contract and, on a more limited basis, to third parties. The demand fee charged to our Louisiana distribution division for these services is subject to regulatory approval by the Louisiana Public Service Commission. We also manage two asset management plans, which have been approved by applicable state regulatory commissions. Generally, these asset management plans require us to share with our distribution customers a significant portion of the cost savings earned from these arrangements.

Our pipeline and storage segment is impacted by seasonal weather patterns, competitive factors in the energy industry and economic conditions in our Texas and Louisiana service areas. Natural gas prices do not directly impact the results of this

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segment as revenues are derived from the transportation and storage of natural gas. However, natural gas prices and demand for natural gas could influence the level of drilling activity in the supply areas that we serve, which may influence the level of throughput we may be able to transport on our pipelines. Further, natural gas price differences between the various hubs that we serve in Texas could influence the volumes of gas transported for shippers through our Texas pipeline system and rates for such transportation.

The results of APT are also significantly impacted by the natural gas requirements of its local distribution company customers. Additionally, its operations may be impacted by the timing of when costs and expenses are incurred and when these costs and expenses are recovered through its tariffs.

APT annually uses GRIP to recover capital costs incurred in the prior calendar year. On February 12, 2021, APT made a GRIP filing that covered changes in net property, plant and equipment investment from January 1, 2020 through December 31, 2020 with a requested increase in operating income of $44.0 million.

Three Months Ended March 31, 2021 compared with Three Months Ended March 31, 2020

Financial and operational highlights for our pipeline and storage segment for the three months ended March 31, 2021 and 2020 are presented below.

	Three Months Ended March 31
	2021		2020		Change
	(In thousands, unless otherwise noted)
Mid-Tex / Affiliate transportation revenue	$	120,588	$	113,570	$	7,018
Third-party transportation revenue	29,508		31,307		(1,799)
Other revenue	4,072		1,360		2,712
Total operating revenues	154,168		146,237		7,931
Total purchased gas cost	113		202		(89)
Operating expenses	75,506		68,138		7,368
Operating income	78,549		77,897		652
Other non-operating income	3,594		2,202		1,392
Interest charges	12,079		11,374		705
Income before income taxes	70,064		68,725		1,339
Income tax expense	5,646		16,143		(10,497)
Net income	$	64,418	$	52,582	$	11,836
Gross pipeline transportation volumes — MMcf	222,321		218,530		3,791
Consolidated pipeline transportation volumes — MMcf	130,578		143,465		(12,887)

Operating income for our pipeline and storage segment increased slightly, which primarily reflects:

•a $14.0 million increase due to rate adjustments from the GRIP filing approved in May 2020. The increase in rates was driven by increased safety and reliability spending.

Partially offset by:

•a $6.4 million decrease as we began to refund excess deferred income taxes to APT customers during the second quarter of fiscal 2021.

•a $3.4 million net decrease in APT's thru-system activities. Thru-system volumes decreased ten percent due to lower production related to the impact of Winter Storm Uri. Prices were 31 percent lower primarily associated with the tightening of regional spreads driven by increased competing takeaway capacity in the Permian Basin.

•a $6.8 million increase in depreciation expense and property taxes associated with increased capital investments.

The quarter-over-quarter decrease in our effective income tax rate reflects the anticipated impact on our annual effective income tax rate for the refund of excess deferred income taxes to APT customers that began during the second quarter of fiscal 2021. This reduction in income tax expense has been or will be offset with a corresponding reduction in revenues over the remainder of the fiscal year.

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Six Months Ended March 31, 2021 compared with Six Months Ended March 31, 2020

Financial and operational highlights for our pipeline and storage segment for the six months ended March 31, 2021 and 2020 are presented below.

	Six Months Ended March 31
	2021		2020		Change
	(In thousands, unless otherwise noted)
Mid-Tex / Affiliate transportation revenue	$	245,849	$	226,733	$	19,116
Third-party transportation revenue	60,329		61,607		(1,278)
Other revenue	7,703		6,073		1,630
Total operating revenues	313,881		294,413		19,468
Total purchased gas cost	(1,131)		301		(1,432)
Operating expenses	147,177		143,711		3,466
Operating income	167,835		150,401		17,434
Other non-operating income	8,831		5,135		3,696
Interest charges	23,377		22,241		1,136
Income before income taxes	153,289		133,295		19,994
Income tax expense	24,885		31,797		(6,912)
Net income	$	128,404	$	101,498	$	26,906
Gross pipeline transportation volumes — MMcf	427,186		442,242		(15,056)
Consolidated pipeline transportation volumes — MMcf	275,165		299,994		(24,829)

Operating income for our pipeline and storage segment increased 12 percent, which primarily reflects:

•a $27.3 million increase due to rate adjustments from the GRIP filing approved in May 2020. The increase in rates was driven by increased safety and reliability spending.

•a $7.8 million decrease in system maintenance expense primarily due to well integrity costs that were non-recurring from the prior year.

Partially offset by:

•a $6.4 million decrease as we began to refund excess deferred income taxes to APT customers during the second quarter of 2021.

•a $4.9 million net decrease in APT's thru-system activities. Thru-system volumes decreased ten percent due to lower production related to the impact of Winter Storm Uri as well as competing takeaway capacity. Additionally, prices were 16 percent lower primarily associated with the tightening of regional spreads driven by increased competing takeaway capacity in the Permian Basin.

•an $11.4 million increase in depreciation expense and property taxes associated with increased capital investments.

The year-over-year decrease in our effective income tax rate reflects the anticipated impact on our annual effective income tax rate for the refund of excess deferred income taxes to APT customers that began during the second quarter of fiscal 2021. This reduction in income tax expense has been or will be offset with a corresponding reduction in revenues over the remainder of the fiscal year.

Liquidity and Capital Resources

The liquidity required to fund our working capital, capital expenditures and other cash needs is provided from a combination of internally generated cash flows and external debt and equity financing. Additionally, we have a $1.5 billion commercial paper program and four committed revolving credit facilities with $2.5 billion in total availability from third-party lenders. The commercial paper program and credit facilities provide cost-effective, short-term financing until it can be replaced with a balance of long-term debt and equity financing that achieves the Company's desired capital structure with an equity-to-total-capitalization ratio between 50% and 60%, inclusive of long-term and short-term debt. Additionally, we have various uncommitted trade credit lines with our gas suppliers that we utilize to purchase natural gas on a monthly basis.

We have a shelf registration statement on file with the Securities and Exchange Commission (SEC) that allows us to issue up to $4.0 billion in common stock and/or debt securities. At March 31, 2021, approximately $200 million of securities were available for issuance under the shelf registration statement, which expires February 11, 2023.

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We also have an at-the-market (ATM) equity sales program that allows us to issue and sell shares of our common stock up to an aggregate offering price of $1.0 billion (including shares of common stock that may be sold pursuant to forward sale agreements entered into in connection with the ATM equity sales program), which expires February 11, 2023. As of March 31, 2021, approximately $313 million of equity was available for issuance under this ATM equity sales program. Additionally, as of March 31, 2021, we have $115.6 million in proceeds from executed forward sale agreements available through June 30, 2022. Additional details are summarized in Note 7 to the unaudited condensed consolidated financial statements.

The liquidity provided by these sources is expected to be sufficient to fund the Company's working capital needs and capital expenditure program for the remainder of fiscal year 2021. Additionally, we expect to continue to be able to obtain financing upon reasonable terms as necessary.

The following table presents our capitalization inclusive of short-term debt and the current portion of long-term debt as of March 31, 2021, September 30, 2020 and March 31, 2020:

	March 31, 2021				September 30, 2020				March 31, 2020
	(In thousands, except percentages)
Short-term debt	$	—	—	%	$	—	—	%	$	199,923	1.8	%
Long-term debt(1)	7,316,581		48.3	%	4,531,944		40.0	%	4,328,997		40.0	%
Shareholders’ equity(2)	7,820,925		51.7	%	6,791,203		60.0	%	6,304,415		58.2	%
Total	$	15,137,506	100.0	%	$	11,323,147	100.0	%	$	10,833,335	100.0	%

(1)     Inclusive of our finance leases.

(2)     Excluding the $2.2 billion of incremental financing issued to pay for the purchased gas costs incurred during Winter Storm Uri, our equity capitalization ratio would have been 60.4%.

Cash Flows

Our internally generated funds may change in the future due to a number of factors, some of which we cannot control. These factors include regulatory changes, the price for our services, demand for such products and services, margin requirements resulting from significant changes in commodity prices, operational risks and other factors.

Cash flows from operating, investing and financing activities for the six months ended March 31, 2021 and 2020 are presented below.

	Six Months Ended March 31
	2021		2020		Change
	(In thousands)
Total cash provided by (used in)
Operating activities	$	(1,402,246)	$	633,775	$	(2,036,021)
Investing activities	(846,063)		(991,237)		145,174
Financing activities	3,092,812		653,011		2,439,801
Change in cash and cash equivalents	844,503		295,549		548,954
Cash and cash equivalents at beginning of period	20,808		24,550		(3,742)
Cash and cash equivalents at end of period	$	865,311	$	320,099	$	545,212

Cash flows from operating activities

For the six months ended March 31, 2021, cash flow used from operating activities was $1.4 billion compared with cash flow generated from operating activities of $633.8 million for the six months ended March 31, 2020. The $2.0 billion decrease in operating cash flows reflects gas costs incurred during Winter Storm Uri, the timing of other gas cost recoveries under our purchase gas cost mechanisms and the timing of customer collections partially offset by the positive effects of successful rate case outcomes achieved in fiscal 2020.

Cash flows from investing activities

Our capital expenditures are primarily used to improve the safety and reliability of our distribution and transmission system through pipeline replacement and system modernization and to enhance and expand our system to meet customer needs. Over the last three fiscal years, approximately 87 percent of our capital spending has been committed to improving the safety and reliability of our system.

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For the six months ended March 31, 2021, cash used for investing activities was $846.1 million compared to $991.2 million for the six months ended March 31, 2020. Capital spending decreased by $149.0 million, or 15 percent, primarily as a result of timing of spending in our distribution segment.

Cash flows from financing activities

For the six months ended March 31, 2021, our financing activities provided $3.1 billion of cash compared with $653.0 million of cash provided by financing activities in the prior-year period.

In the six months ended March 31, 2021, we received $3.3 billion in net proceeds from the issuance of long-term debt and equity. We completed a public offering of $600 million of 1.50% senior notes due 2031, $1.1 billion of 0.625% senior notes due 2023 and $1.1 billion floating rate senior notes due 2023. Additionally, during the six months ended March 31, 2021, we settled 4,537,669 shares that had been sold on a forward basis for net proceeds of $460.7 million. The net proceeds were used primarily for the payment of natural gas costs incurred during Winter Storm Uri, to support capital spending and for other general corporate purposes.

Cash dividends increased due to a 8.7 percent increase in our dividend rate and an increase in shares outstanding.

In the six months ended March 31, 2020, we received $1.1 billion in net proceeds from the issuance of long-term debt and equity. The net proceeds were used primarily to support capital spending, reduce short term debt and for other general corporate purposes. Cash dividends increased due to a 9.5 percent increase in our dividend rate and an increase in shares outstanding.

The following table summarizes our share issuances for the six months ended March 31, 2021 and 2020:

	Six Months Ended March 31
	2021	2020
Shares issued:
Direct Stock Purchase Plan	42,249	36,752
1998 Long-Term Incentive Plan	160,488	172,209
Retirement Savings Plan and Trust	44,226	40,779
Equity Issuance	4,537,669	2,720,060
Total shares issued	4,784,632	2,969,800

Credit Ratings

Our credit ratings directly affect our ability to obtain short-term and long-term financing, in addition to the cost of such financing. In determining our credit ratings, the rating agencies consider a number of quantitative factors, including but not limited to, debt to total capitalization, operating cash flow relative to outstanding debt, operating cash flow coverage of interest and pension liabilities. In addition, the rating agencies consider qualitative factors such as consistency of our earnings over time, the quality of our management and business strategy, the risks associated with our businesses and the regulatory structures that govern our rates in the states where we operate.

Our debt is rated by two rating agencies: Standard & Poor’s Corporation (S&P) and Moody’s Investors Service (Moody’s). As a result of the impacts of Winter Storm Uri, during the second quarter, S&P lowered our long-term and short-term credit ratings by one notch and placed our ratings under negative outlook and Moody's reaffirmed its long-term and short-term credit ratings and placed our ratings under negative outlook. As of March 31, 2021, our outlook and current debt ratings, which are all considered investment grade are as follows:

March 31, 2021:	S&P	Moody’s
Senior unsecured long-term debt	A-	A1
Short-term debt	A-2	P-1
Outlook	Negative	Negative

A significant degradation in our operating performance or a significant reduction in our liquidity caused by more limited access to the private and public credit markets as a result of deteriorating global or national financial and credit conditions could trigger a negative change in our ratings outlook or even a reduction in our credit ratings by the two credit rating agencies. This would mean more limited access to the private and public credit markets and an increase in the costs of such borrowings.

A credit rating is not a recommendation to buy, sell or hold securities. The highest investment grade credit rating is AAA for S&P and Aaa for Moody’s. The lowest investment grade credit rating is BBB- for S&P and Baa3 for Moody’s. Our credit ratings may be revised or withdrawn at any time by the rating agencies, and each rating should be evaluated independently of

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any other rating. There can be no assurance that a rating will remain in effect for any given period of time or that a rating will not be lowered, or withdrawn entirely, by a rating agency if, in its judgment, circumstances so warrant.

Debt Covenants

We were in compliance with all of our debt covenants as of March 31, 2021. Our debt covenants are described in greater detail in Note 6 to the unaudited condensed consolidated financial statements.

Contractual Obligations and Commercial Commitments

Except as noted in Note 10 to the unaudited condensed consolidated financial statements, there were no significant changes in our contractual obligations and commercial commitments during the six months ended March 31, 2021.

Risk Management Activities

In our distribution and pipeline and storage segments, we use a combination of physical storage, fixed physical contracts and fixed financial contracts to reduce our exposure to unusually large winter-period gas price increases. Additionally, we manage interest rate risk by periodically entering into financial instruments to effectively fix the Treasury yield component of the interest cost associated with anticipated financings.

The following table shows the components of the change in fair value of our financial instruments for the three and six months ended March 31, 2021 and 2020:

	Three Months Ended March 31				Six Months Ended March 31
	2021		2020		2021		2020
	(In thousands)
Fair value of contracts at beginning of period	$	148,555	$	(7,459)	$	78,663	$	(3,990)
Contracts realized/settled	(365)		(4,073)		967		(6,936)
Fair value of new contracts	239		(10)		326		95
Other changes in value	178,667		10,710		247,140		9,999
Fair value of contracts at end of period	327,096		(832)		327,096		(832)
Netting of cash collateral	—		—		—		—
Cash collateral and fair value of contracts at period end	$	327,096	$	(832)	$	327,096	$	(832)

The fair value of our financial instruments at March 31, 2021 is presented below by time period and fair value source:

	Fair Value of Contracts at March 31, 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	$	133,310	$	96,677	$	97,109	$	—	$	327,096
Prices based on models and other valuation methods	—		—		—		—		—
Total Fair Value	$	133,310	$	96,677	$	97,109	$	—	$	327,096

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OPERATING STATISTICS AND OTHER INFORMATION

The following tables present certain operating statistics for our distribution and pipeline and storage segments for the three and six months ended March 31, 2021 and 2020.

Distribution Sales and Statistical Data

	Three Months Ended March 31		Six Months Ended March 31
	2021	2020	2021	2020
METERS IN SERVICE, end of period
Residential	3,087,890	3,025,771	3,087,890	3,025,771
Commercial	282,313	276,668	282,313	276,668
Industrial	1,668	1,659	1,668	1,659
Public authority and other	8,282	8,518	8,282	8,518
Total meters	3,380,153	3,312,616	3,380,153	3,312,616
INVENTORY STORAGE BALANCE — Bcf	28.4	34.5	28.4	34.5
SALES VOLUMES — MMcf(1)
Gas sales volumes
Residential	91,034	71,124	144,564	129,904
Commercial	43,639	37,585	70,326	68,838
Industrial	7,739	7,913	14,390	14,768
Public authority and other	3,066	2,736	5,059	4,909
Total gas sales volumes	145,478	119,358	234,339	218,419
Transportation volumes	47,740	46,542	89,025	88,816
Total throughput	193,218	165,900	323,364	307,235

Pipeline and Storage Operations Sales and Statistical Data

	Three Months Ended March 31		Six Months Ended March 31
	2021	2020	2021	2020
CUSTOMERS, end of period
Industrial	92	93	92	93
Other	215	235	215	235
Total	307	328	307	328
INVENTORY STORAGE BALANCE — Bcf	0.1	1.0	0.1	1.0
PIPELINE TRANSPORTATION VOLUMES — MMcf(1)	222,321	218,530	427,186	442,242

Note to preceding tables:

(1)Sales and transportation volumes reflect segment operations, including intercompany sales and transportation amounts.

RECENT ACCOUNTING DEVELOPMENTS

Recent accounting developments and their impact on our financial position, results of operations and cash flows are described in Note 2 to the unaudited condensed consolidated financial statements.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information regarding our quantitative and qualitative disclosures about market risk are disclosed in Item 7A in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. During the six months ended March 31, 2021, there were no material changes in our quantitative and qualitative disclosures about market risk.

Item 4. Controls and Procedures

Management’s Evaluation of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of the Company’s disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act). Based on this evaluation, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2021 to provide reasonable assurance that information required to be disclosed by us, including our consolidated entities, in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified by the SEC’s rules and forms, including a reasonable level of assurance that such information is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

    We did not make any changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the second quarter of the fiscal year ended September 30, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

During the six months ended March 31, 2021, except as noted in Note 10 to the unaudited condensed consolidated financial statements, there were no material changes in the status of the litigation and other matters that were disclosed in Note 12 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. We continue to believe that the final outcome of such litigation and other matters or claims will not have a material adverse effect on our financial condition, results of operations or cash flows.

Item 1A. Risk Factors

There were no material changes from the risk factors disclosed under the heading “Risk Factors” in Item 1A in the Annual Report on Form 10-K for the year ended September 30, 2020.

Item 6. Exhibits

The following exhibits are filed as part of this Quarterly Report.

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Exhibit Number	Description	Page Number or Incorporation by Reference to
3.1	Restated Articles of Incorporation of Atmos Energy Corporation - Texas (As Amended Effective February 3, 2010)	Exhibit 3.1 to Form 10-Q dated March 31, 2010 (File No. 1-10042)
3.2	Restated Articles of Incorporation of Atmos Energy Corporation - Virginia (As Amended Effective February 3, 2010)	Exhibit 3.2 to Form 10-Q dated March 31, 2010 (File No. 1-10042)
3.3	Amended and Restated Bylaws of Atmos Energy Corporation (as of February 5, 2019)	Exhibit 3.1 to Form 8-K dated February 5, 2019 (File No. 1-10042)
4.1(a)	Global Security for the 1.500% Senior Notes due 2031	Exhibit 4.2 to Form 8-K dated October 1, 2020 (File No. 1-10042)
4.1(b)	Global Security for the 1.500% Senior Notes due 2031	Exhibit 4.3 to Form 8-K dated October 1, 2020 (File No. 1-10042)
4.1(c)	Global Security for the 0.625% Senior Notes due 2023	Exhibit 4.3 to Form 8-K dated March 9, 2021 (File No. 1-10042)
4.1(d)	Global Security for the 0.625% Senior Notes due 2023	Exhibit 4.4 to Form 8-K dated March 9, 2021 (File No. 1-10042)
4.1(e)	Global Security for the 0.625% Senior Notes due 2023	Exhibit 4.5 to Form 8-K dated March 9, 2021 (File No. 1-10042)
4.1(f)	Global Security for the Floating Rate Senior Notes due 2023	Exhibit 4.6 to Form 8-K dated March 9, 2021 (File No. 1-10042)
4.1(g)	Global Security for the Floating Rate Senior Notes due 2023	Exhibit 4.7 to Form 8-K dated March 9, 2021 (File No. 1-10042)
4.1(h)	Global Security for the Floating Rate Senior Notes due 2023	Exhibit 4.8 to Form 8-K dated March 9, 2021 (File No. 1-10042)
10.1	Revolving Credit Agreement, dated as of March 31, 2021, among Atmos Energy Corporation, Credit Agricole Corporate and Investment Bank, as the Administrative Agent, the agents, arrangers and bookrunners named therein, and the lenders named therein	Exhibit 10.1 to Form 8-K dated March 31, 2021 (File No. 1-10042)
10.2	Revolving Credit Agreement, dated as of March 31, 2021, among Atmos Energy Corporation, Credit Agricole Corporate and Investment Bank, as the Administrative Agent, the agents, arrangers and bookrunners named therein, and the lenders named therein	Exhibit 10.2 to Form 8-K dated March 31, 2021 (File No. 1-10042)
15	Letter regarding unaudited interim financial information
31	Rule 13a-14(a)/15d-14(a) Certifications
32	Section 1350 Certifications*
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

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* These certifications, which were made 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 Quarterly Report on Form 10-Q, will not be deemed to be filed with the 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.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ATMOS ENERGY CORPORATION

               (Registrant)

By: /s/    CHRISTOPHER T. FORSYTHE

Christopher T. Forsythe

Senior Vice President and Chief Financial Officer

(Duly authorized signatory)

Date: May 5, 2021

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EX-15

Exhibit 15

Board of Directors and Shareholders of Atmos Energy Corporation

Atmos Energy Corporation

We are aware of the incorporation by reference in the Registration Statements (Form S-3, No. 33-37869; Form S-3, No. 33-58220; Form S-3D/A, No. 33-70212; Form S-3, No. 33-56915; Form S-3/A, No. 333-03339; Form S-3/A, No. 333-32475; Form S-3, No. 333-95525; Form S-3D, No. 333-113603; Form S-3D, No. 333-155666; Form S-3D, No. 333-208317; Form S-3ASR, No. 333-236369; Form S-4, No. 333-13429; Form S-8, No. 33-57687; Form S-8, No. 33-57695; Form S-8, No. 333-32343; Form S-8, No. 333-46337; Form S-8, No. 333-73143; Form S-8, No. 333-73145; Form S-8, No. 333-63738; Form S-8, No. 333-88832; Form S-8, No. 333-116367; Form S-8, No. 333-138209; Form S-8, No. 333-145817; Form S-8, No. 333-155570; Form S-8, No. 333-166639; Form S-8, No. 333-177593; Form S-8, No. 333-199301; Form S-8, No. 333-210461; and Form S-8, No. 333-217739) of Atmos Energy Corporation and in the related Prospectuses of our report dated May 5, 2021, relating to the unaudited condensed consolidated interim financial statements of Atmos Energy Corporation, which are included in its Form 10-Q for the quarter ended March 31, 2021.

/s/ ERNST & YOUNG LLP

Dallas, Texas

May 5, 2021

EX-31

EXHIBIT 31

RULE 13a-14(a)/15d-14(a) CERTIFICATIONS

I, John K. Akers, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Atmos Energy Corporation;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and     

5.    The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 5, 2021

/s/ JOHN K. AKERS

John K. Akers

President and

Chief Executive Officer

I, Christopher T. Forsythe, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Atmos Energy Corporation;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and     

5.    The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing equivalent functions):

(a)    All significant deficiencies or material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 5, 2021

/s/ CHRISTOPHER T. FORSYTHE

Christopher T. Forsythe

Senior Vice President and

Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the Quarterly Report of Atmos Energy Corporation (the “Company”) on Form 10-Q for the second quarter of the fiscal year ended September 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John K. Akers, President and Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)    The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 5, 2021

/s/ JOHN K. AKERS

John K. Akers

President and

Chief Executive Officer

A signed original of this written statement has been provided to Atmos Energy Corporation and will be retained by Atmos Energy Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the Quarterly Report of Atmos Energy Corporation (the “Company”) on Form 10-Q for the second quarter of the fiscal year ended September 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Christopher T. Forsythe, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)    The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 5, 2021

/s/ CHRISTOPHER T. FORSYTHE

Christopher T. Forsythe

Senior Vice President and

Chief Financial Officer

A signed original of this written statement has been provided to Atmos Energy Corporation and will be retained by Atmos Energy Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	6 Months Ended
	Mar. 31, 2021	Apr. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	1-10042
Entity Registrant Name	Atmos Energy Corp
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	75-1743247
Entity Address, Address Line One	1800 Three Lincoln Centre
Entity Address, Address Line Two	5430 LBJ Freeway
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75240
City Area Code	972
Local Phone Number	934-9227
Title of 12(b) Security	Common stock
Trading Symbol	ATO
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		130,671,944
Entity Central Index Key	0000731802
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
ASSETS
Property, plant and equipment	$ 16,752,585	$ 15,957,221
Less accumulated depreciation and amortization	2,712,997	2,601,874
Net property, plant and equipment	14,039,588	13,355,347
Current assets
Cash and cash equivalents	865,311	20,808
Accounts receivable, net	469,595	230,595
Gas stored underground	50,043	111,950
Other current assets	235,485	107,905
Total current assets	1,620,434	471,258
Goodwill	731,257	731,257
Deferred charges and other assets (See Note 8)	3,017,531	801,170
Total assets	19,408,810	15,359,032
Shareholders’ equity
Common stock, no par value (stated at $0.005 per share); 200,000,000 shares authorized; issued and outstanding: 2021 — 125,882,477 shares; 2020 — 125,882,477 shares	653	629
Additional paid-in capital	4,853,703	4,377,149
Accumulated other comprehensive income (loss)	140,471	(57,589)
Retained earnings	2,826,098	2,471,014
Shareholders’ equity	7,820,925	6,791,203
Long-term debt	7,316,404	4,531,779
Total capitalization	15,137,329	11,322,982
Current liabilities
Accounts payable and accrued liabilities	263,597	235,775
Other current liabilities	607,525	546,461
Current maturities of long-term debt	177	165
Total current liabilities	871,299	782,401
Deferred income taxes	1,658,000	1,456,569
Regulatory excess deferred taxes	639,496	697,764
Regulatory cost of removal obligation	465,104	457,188
Deferred credits and other liabilities	637,582	642,128
Total shareholders' equity and liabilities	$ 19,408,810	$ 15,359,032

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2021	Sep. 30, 2020
Statement of Financial Position [Abstract]
Common stock stated value (USD per share)	$ 0.005	$ 0.005
Common stock authorized (in shares)	200,000,000	200,000,000
Common stock issued (in shares)	130,667,109	125,882,477
Common stock outstanding (in shares)	130,667,109	125,882,477

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Operating revenues	$ 1,319,073	$ 977,665	$ 2,233,553	$ 1,853,228
Purchased gas cost	573,809	317,883	862,069	614,751
Operation and maintenance expense	156,375	147,824	295,018	300,069
Depreciation and amortization expense	118,636	105,916	233,921	210,978
Taxes, other than income	88,449	74,604	161,901	143,211
Operating income	381,804	331,438	680,644	584,219
Other non-operating income (expense)	2,834	(2,989)	8,906	1,898
Interest charges	26,096	22,171	48,106	49,400
Income before income taxes	358,542	306,278	641,444	536,717
Income tax expense	61,788	66,632	127,012	118,398
Net income	$ 296,754	$ 239,646	$ 514,432	$ 418,319
Basic net income per share (USD per share)	$ 2.30	$ 1.95	$ 4.01	$ 3.43
Diluted net income per share (USD per share)	2.30	1.95	4.01	3.42
Cash dividends per share (USD per share)	$ 0.625	$ 0.575	$ 1.25	$ 1.15
Basic weighted average shares outstanding (in shares)	129,161	122,916	128,098	122,015
Diluted weighted average shares outstanding (in shares)	129,164	122,997	128,100	122,179
Other comprehensive income (loss), net of tax
Net unrealized holding gains on available-for-sale securities, net of tax	$ (66)	$ (163)	$ (129)	$ (164)
Cash flow hedges:
Amortization and unrealized loss on interest rate agreements, net of tax	138,005	1,053	198,189	2,106
Total other comprehensive income (loss)	137,939	890	198,060	1,942
Total comprehensive income	434,693	240,536	712,492	420,261
Distribution segment
Operating revenues	1,281,826	932,296	2,157,713	1,760,136
Pipeline and storage segment
Operating revenues	37,247	45,369	75,840	93,092
Operating Segments | Distribution segment
Operating revenues	1,282,674	933,005	2,159,324	1,761,509
Purchased gas cost	691,147	418,935	1,102,219	816,493
Operation and maintenance expense	123,990	115,851	232,792	230,203
Depreciation and amortization expense	85,667	76,265	168,537	152,339
Taxes, other than income	78,615	68,413	142,967	128,656
Operating income	303,255	253,541	512,809	433,818
Other non-operating income (expense)	(760)	(5,191)	75	(3,237)
Income before income taxes	288,478	237,553	488,155	403,422
Income tax expense	56,142	50,489	102,127	86,601
Net income	232,336	187,064	386,028	316,821
Operating Segments | Pipeline and storage segment
Operating revenues	154,168	146,237	313,881	294,413
Purchased gas cost	113	202	(1,131)	301
Operation and maintenance expense	32,703	32,296	62,859	70,517
Depreciation and amortization expense	32,969	29,651	65,384	58,639
Taxes, other than income	9,834	6,191	18,934	14,555
Operating income	78,549	77,897	167,835	150,401
Other non-operating income (expense)	3,594	2,202	8,831	5,135
Income before income taxes	70,064	68,725	153,289	133,295
Income tax expense	5,646	16,143	24,885	31,797
Net income	64,418	52,582	128,404	101,498
Eliminations
Operating revenues	(117,769)	(101,577)	(239,652)	(202,694)
Purchased gas cost	(117,451)	(101,254)	(239,019)	(202,043)
Operation and maintenance expense	(318)	(323)	(633)	(651)
Depreciation and amortization expense	0	0	0	0
Taxes, other than income	0	0	0	0
Operating income	0	0	0	0
Other non-operating income (expense)	0	0	0	0
Income before income taxes	0	0	0	0
Income tax expense	0	0	0	0
Net income	0	0	0	0
Eliminations | Distribution segment
Operating revenues	848	709	1,611	1,373
Eliminations | Pipeline and storage segment
Operating revenues	116,921	100,868	238,041	201,321
Purchased gas cost
Purchased gas cost	573,809	317,883	862,069	614,751
Purchased gas cost | Operating Segments | Distribution segment
Purchased gas cost	691,147	418,935	1,102,219	816,493
Purchased gas cost | Operating Segments | Pipeline and storage segment
Purchased gas cost	113	202	(1,131)	301
Purchased gas cost | Eliminations
Purchased gas cost	$ (117,451)	$ (101,254)	$ (239,019)	$ (202,043)

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Net unrealized holding losses on available-for-sale securities, tax	$ (19)	$ (49)	$ (37)	$ (49)
Amortization and unrealized gain (loss) on interest rate agreements, tax	$ 39,887	$ 312	$ 57,282	$ 623

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows From Operating Activities
Net income	$ 514,432	$ 418,319
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization expense	233,921	210,978
Deferred income taxes	128,725	110,664
Other	(938)	7,144
Net assets / liabilities from risk management activities	(1,954)	1,310
Increase (Decrease) in Regulatory Assets Related To Storm	(2,093,534)	0
Net change in other operating assets and liabilities	(182,898)	(114,640)
Net cash provided by (used in) operating activities	(1,402,246)	633,775
Cash Flows From Investing Activities
Capital expenditures	(845,728)	(994,737)
Debt and equity securities activities, net	(5,506)	(1,131)
Other, net	5,171	4,631
Net cash used in investing activities	(846,063)	(991,237)
Cash Flows From Financing Activities
Net decrease in short-term debt	0	(264,992)
Net proceeds from equity offering	460,678	258,047
Issuance of common stock through stock purchase and employee retirement plans	8,291	8,321
Proceeds from issuance of long-term debt	2,797,346	799,450
Cash dividends paid	(159,348)	(140,077)
Debt issuance costs	(14,155)	(7,738)
Net cash provided by financing activities	3,092,812	653,011
Net increase in cash and cash equivalents	844,503	295,549
Cash and cash equivalents at beginning of period	20,808	24,550
Cash and cash equivalents at end of period	$ 865,311	$ 320,099

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Nature of Business

6 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business

Nature of Business

Atmos Energy Corporation (“Atmos Energy” or the “Company”) and its subsidiaries are engaged in the regulated natural gas distribution and pipeline and storage businesses. Our distribution business is subject to federal and state regulation and/or regulation by local authorities in each of the states in which our regulated divisions and subsidiaries operate.

Our distribution business delivers natural gas through sales and transportation arrangements to over three million residential, commercial, public authority and industrial customers through our six regulated distribution divisions, which at March 31, 2021, covered service areas located in eight states.

Our pipeline and storage business, which is also subject to federal and state regulations, includes the transportation of natural gas to our Texas and Louisiana distribution systems and the management of our underground storage facilities used to support our distribution business in various states.

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Unaudited Financial Information

6 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Unaudited Financial Information

Unaudited Financial Information

These consolidated interim-period financial statements have been prepared in accordance with accounting principles generally accepted in the United States on the same basis, aside from accounting policy changes noted below, as those used for the Company’s audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. In the opinion of management, all material adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been made to the unaudited consolidated interim-period financial statements. These consolidated interim-period financial statements are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited consolidated financial statements of Atmos Energy Corporation included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. Because of seasonal and other factors, the results of operations for the six-month period ended March 31, 2021 are not indicative of our results of operations for the full 2021 fiscal year, which ends September 30, 2021.

Except as described in Note 6 and Note 8 to the unaudited condensed consolidated financial statements regarding recent activity related to our revolving credit facilities and securitization legislation, no events have occurred subsequent to the balance sheet date that would require recognition or disclosure in the unaudited condensed consolidated financial statements.

Significant accounting policies

Except as noted below, related to the change in policies as a result of our adoption of new accounting standards, our accounting policies are described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.

During the second quarter of fiscal 2021, we completed our goodwill impairment assessment. We test for goodwill at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit. Based on the assessment performed, we determined that our goodwill was not impaired.

Accounting pronouncements adopted in fiscal 2021

Effective October 1, 2020, we adopted new accounting guidance that requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model. Under this model, we estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. The new guidance also introduces a new impairment recognition model for available-for-sale debt securities that will require credit losses to be recorded through an allowance account. We adopted the new guidance using a modified retrospective method. The adoption of this standard did not have a material impact on our financial position, results of operations and cash flows and no adjustments were made to October 1, 2020 opening balances as a result of this adoption. As required under the modified retrospective method of adoption, results for the reporting period beginning after October 1, 2020 are presented under Accounting Standards Codification (ASC) 326, while prior period amounts are not adjusted. See Notes 5 and 12 to the unaudited condensed consolidated financial statements for further discussion of implementation of the standard.

Accounting pronouncements that will be effective after fiscal 2021

In March 2020, the Financial Accounting Standards Board (FASB) issued optional guidance which will ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected

by the cessation of the London Interbank Offered Rate (LIBOR). The amendments can be elected immediately, as of March 12, 2020, through December 31, 2022. We are currently evaluating if we will apply the optional guidance as we assess the impact of the cessation of LIBOR on our current contracts and hedging relationships and the potential impact on our financial position, results of operations and cash flows.

Regulatory assets and liabilities

Accounting principles generally accepted in the United States require cost-based, rate-regulated entities that meet certain criteria to reflect the authorized recovery of costs due to regulatory decisions in their financial statements. As a result, certain costs are permitted to be capitalized rather than expensed because they can be recovered through rates. We record certain costs as regulatory assets when future recovery through customer rates is considered probable. Regulatory liabilities are recorded when it is probable that revenues will be reduced for amounts that will be credited to customers through the ratemaking process. Substantially all of our regulatory assets are recorded as a component of deferred charges and other assets and our regulatory liabilities are recorded as a component of other current liabilities and deferred credits and other liabilities. Deferred gas costs are recorded either in other current assets or liabilities.

Significant regulatory assets and liabilities as of March 31, 2021 and September 30, 2020 included the following:

	March 31, 2021		September 30, 2020
	(In thousands)
Regulatory assets:
Pension and postretirement benefit costs	$	143,685	$	149,089
Infrastructure mechanisms(1)	189,154		183,943
Winter Storm Uri incremental costs(2)	2,093,534		—
Deferred gas costs	19,636		40,593
Recoverable loss on reacquired debt	4,165		4,894
Deferred pipeline record collection costs	30,415		29,839
Other	6,093		6,283
	$	2,486,682	$	414,641
Regulatory liabilities:
Regulatory excess deferred taxes(3)	$	702,393	$	718,651
Regulatory cost of removal obligation	531,625		531,096
Deferred gas costs	122,864		19,985
Asset retirement obligation	20,348		20,348
APT annual adjustment mechanism	44,291		57,379
Other	25,828		19,554
	$	1,447,349	$	1,367,013

(1)Infrastructure mechanisms in Texas, Louisiana and Tennessee allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates.

(2)Includes extraordinary gas costs incurred during Winter Storm Uri and related carrying costs. See Note 8 to the unaudited condensed consolidated financial statements for further information. This amount is recorded within deferred charges and other assets on the condensed consolidated balance sheet as of March 31, 2021.

(3)Includes amount from the remeasurement of the net deferred tax liability included in our rate base as a result of the Tax Cuts and Jobs Act of 2017 (the "TCJA") and a Kansas legislative change enacted in fiscal 2020. Of this amount, $62.9 million as of March 31, 2021 and $20.9 million as of September 30, 2020 is recorded in other current liabilities. These liabilities are currently being returned to customers in most of our jurisdictions on a provisional basis over 15 to 69 years until formal orders establish the final refund periods. During the six months ended March 31, 2021, our effective income tax rate decreased from 22.1% to 19.8%, primarily due to the approval of the amortization of excess deferred income taxes to APT customers.

As of March 31, 2021, we received regulatory orders in most states to defer into a regulatory asset all expenses, beyond the normal course of business, related to Coronavirus Disease 2019 (COVID-19 or virus), including bad debt expense. As of March 31, 2021, no amounts have been recorded as regulatory assets or liabilities for expenses related to COVID-19.

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Segment Information

6 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information We manage and review our consolidated operations through the following reportable segments:

•The distribution segment is primarily comprised of our regulated natural gas distribution and related sales operations in eight states.

•The pipeline and storage segment is comprised primarily of the pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies found in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.

Income statements and capital expenditures for the three and six months ended March 31, 2021 and 2020 by segment are presented in the following tables:

	Three Months Ended March 31, 2021
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	1,281,826	$	37,247	$	—	$	1,319,073
Intersegment revenues	848		116,921		(117,769)		—
Total operating revenues	1,282,674		154,168		(117,769)		1,319,073
Purchased gas cost	691,147		113		(117,451)		573,809
Operation and maintenance expense	123,990		32,703		(318)		156,375
Depreciation and amortization expense	85,667		32,969		—		118,636
Taxes, other than income	78,615		9,834		—		88,449
Operating income	303,255		78,549		—		381,804
Other non-operating income (expense)	(760)		3,594		—		2,834
Interest charges	14,017		12,079		—		26,096
Income before income taxes	288,478		70,064		—		358,542
Income tax expense	56,142		5,646		—		61,788
Net income	$	232,336	$	64,418	$	—	$	296,754
Capital expenditures	$	296,184	$	92,735	$	—	$	388,919

	Three Months Ended March 31, 2020
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	932,296	$	45,369	$	—	$	977,665
Intersegment revenues	709		100,868		(101,577)		—
Total operating revenues	933,005		146,237		(101,577)		977,665
Purchased gas cost	418,935		202		(101,254)		317,883
Operation and maintenance expense	115,851		32,296		(323)		147,824
Depreciation and amortization expense	76,265		29,651		—		105,916
Taxes, other than income	68,413		6,191		—		74,604
Operating income	253,541		77,897		—		331,438
Other non-operating income (expense)	(5,191)		2,202		—		(2,989)
Interest charges	10,797		11,374		—		22,171
Income before income taxes	237,553		68,725		—		306,278
Income tax expense	50,489		16,143		—		66,632
Net income	$	187,064	$	52,582	$	—	$	239,646
Capital expenditures	$	373,313	$	92,238	$	—	$	465,551

	Six Months Ended March 31, 2021
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	2,157,713	$	75,840	$	—	$	2,233,553
Intersegment revenues	1,611		238,041		(239,652)		—
Total operating revenues	2,159,324		313,881		(239,652)		2,233,553
Purchased gas cost	1,102,219		(1,131)		(239,019)		862,069
Operation and maintenance expense	232,792		62,859		(633)		295,018
Depreciation and amortization expense	168,537		65,384		—		233,921
Taxes, other than income	142,967		18,934		—		161,901
Operating income	512,809		167,835		—		680,644
Other non-operating income	75		8,831		—		8,906
Interest charges	24,729		23,377		—		48,106
Income before income taxes	488,155		153,289		—		641,444
Income tax expense	102,127		24,885		—		127,012
Net income	$	386,028	$	128,404	$	—	$	514,432
Capital expenditures	$	602,200	$	243,528	$	—	$	845,728

	Six Months Ended March 31, 2020
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	1,760,136	$	93,092	$	—	$	1,853,228
Intersegment revenues	1,373		201,321		(202,694)		—
Total operating revenues	1,761,509		294,413		(202,694)		1,853,228
Purchased gas cost	816,493		301		(202,043)		614,751
Operation and maintenance expense	230,203		70,517		(651)		300,069
Depreciation and amortization expense	152,339		58,639		—		210,978
Taxes, other than income	128,656		14,555		—		143,211
Operating income	433,818		150,401		—		584,219
Other non-operating income (expense)	(3,237)		5,135		—		1,898
Interest charges	27,159		22,241		—		49,400
Income before income taxes	403,422		133,295		—		536,717
Income tax expense	86,601		31,797		—		118,398
Net income	$	316,821	$	101,498	$	—	$	418,319
Capital expenditures	$	777,560	$	217,177	$	—	$	994,737

Balance sheet information at March 31, 2021 and September 30, 2020 by segment is presented in the following tables:

	March 31, 2021
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Property, plant and equipment, net	$	10,465,072	$	3,574,516	$	—	$	14,039,588
Total assets	$	18,661,545	$	3,799,037	$	(3,051,772)	$	19,408,810

	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

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Earnings Per Share

6 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic weighted average shares outstanding is calculated based upon the weighted average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock awards that have not yet been issued as common stock. Additionally, the weighted average shares outstanding for diluted EPS includes the incremental effects of the forward sale agreements, discussed in Note 7 to the unaudited condensed consolidated financial statements, when the impact is dilutive. Basic and diluted earnings per share for the three and six months ended March 31, 2021 and 2020 are calculated as follows:

	Three Months Ended March 31				Six Months Ended March 31
	2021		2020		2021		2020
	(In thousands, except per share amounts)
Basic Earnings Per Share
Net income	$	296,754	$	239,646	$	514,432	$	418,319
Less: Income allocated to participating securities	199		178		350		314
Income available to common shareholders	$	296,555	$	239,468	$	514,082	$	418,005
Basic weighted average shares outstanding	129,161		122,916		128,098		122,015
Net income per share — Basic	$	2.30	$	1.95	$	4.01	$	3.43
Diluted Earnings Per Share
Income available to common shareholders	$	296,555	$	239,468	$	514,082	$	418,005
Effect of dilutive shares	—		—		—		—
Income available to common shareholders	$	296,555	$	239,468	$	514,082	$	418,005
Basic weighted average shares outstanding	129,161		122,916		128,098		122,015
Dilutive shares	3		81		2		164
Diluted weighted average shares outstanding	129,164		122,997		128,100		122,179
Net income per share - Diluted	$	2.30	$	1.95	$	4.01	$	3.42

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Revenue and Accounts Receivable

6 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue and Accounts Receivable

Revenue and Accounts Receivable

Revenue

Our revenue recognition policy is fully described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. The following tables disaggregate our revenue from contracts with customers by customer type and segment and provide a reconciliation to total operating revenues, including intersegment revenues, for the three and six months ended March 31, 2021 and 2020.

	Three Months Ended March 31, 2021				Three Months Ended March 31, 2020
	Distribution		Pipeline and Storage		Distribution		Pipeline and Storage
	(In thousands)
Gas sales revenues:
Residential	$	893,720	$	—	$	596,315	$	—
Commercial	326,182		—		230,779		—
Industrial	31,066		—		25,628		—
Public authority and other	20,227		—		14,662		—
Total gas sales revenues	1,271,195		—		867,384		—
Transportation revenues	30,973		151,565		28,504		154,748
Miscellaneous revenues	3,325		3,878		6,986		1,335
Revenues from contracts with customers	1,305,493		155,443		902,874		156,083
Alternative revenue program revenues(1)	(23,313)		(1,275)		29,638		(9,846)
Other revenues	494		—		493		—
Total operating revenues	$	1,282,674	$	154,168	$	933,005	$	146,237

	Six Months Ended March 31, 2021				Six Months Ended March 31, 2020
	Distribution		Pipeline and Storage		Distribution		Pipeline and Storage
	(In thousands)
Gas sales revenues:
Residential	$	1,485,554	$	—	$	1,148,391	$	—
Commercial	535,129		—		442,093		—
Industrial	55,774		—		50,553		—
Public authority and other	33,289		—		27,684		—
Total gas sales revenues	2,109,746		—		1,668,721		—
Transportation revenues	58,740		316,326		55,144		306,758
Miscellaneous revenues	5,721		9,026		13,772		6,490
Revenues from contracts with customers	2,174,207		325,352		1,737,637		313,248
Alternative revenue program revenues(1)	(15,872)		(11,471)		22,887		(18,835)
Other revenues	989		—		985		—
Total operating revenues	$	2,159,324	$	313,881	$	1,761,509	$	294,413

(1)    In our distribution segment, we have weather-normalization adjustment mechanisms that serve to mitigate the effects of weather on our revenue. Additionally, APT has a regulatory mechanism that requires that we share with its tariffed customers 75% of the difference between the total non-tariffed revenues earned during a test period and a regulatorily determined revenue benchmark.

Accounts receivable and allowance for uncollectible accounts

Accounts receivable arise from natural gas sales to residential, commercial, industrial, public authority and other customers. Our accounts receivable balance includes unbilled amounts which represent a customer’s consumption of gas from the date of the last cycle billing through the last day of the month. The receivable balances are short term and generally do not extend beyond one month. To minimize credit risk, we assess the credit worthiness of new customers, require deposits where necessary, assess late fees, pursue collection activities and disconnect service for nonpayment. After disconnection, accounts are written off when deemed uncollectible.

As described in Note 2 to the unaudited condensed consolidated financial statements, on October 1, 2020, we adopted new accounting guidance which requires credit losses on our accounts receivable to be measured using an expected credit loss model over the entire contractual term from the date of initial recognition. At each reporting period, we assess the allowance for uncollectible accounts based on historical experience, current conditions and consideration of expected future conditions. Circumstances which could affect our estimates include, but are not limited to, customer credit issues, the level of natural gas prices, customer deposits and general economic conditions.

Due to the COVID-19 pandemic, in March 2020 we temporarily suspended disconnecting customers for nonpayment and stopped charging late fees. We are actively working with our customers experiencing financial hardship to offer flexible payment options and directing them to aid agencies for financial assistance. Our allowance for uncollectible accounts reflects the expected impact on our customers’ ability to pay when we resume disconnection activity.

Rollforwards of our allowance for uncollectible accounts for the three and six months ended March 31, 2021 are presented in the table below. The allowance excludes the gas cost portion of customers’ bills for approximately 78 percent of our customers as we have the ability to collect these gas costs through our gas cost recovery mechanisms in most of our jurisdictions.

	Three Months Ended March 31, 2021
	(In thousands)
Beginning balance, December 31, 2020	$	35,089
Current period provisions	11,532
Write-offs charged against allowance	(2,381)
Recoveries of amounts previously written off	440
Ending balance, March 31, 2021	$	44,680

	Six Months Ended March 31, 2021
	(In thousands)
Beginning balance, September 30, 2020	$	29,949
Current period provisions	18,469
Write-offs charged against allowance	(4,669)
Recoveries of amounts previously written off	931
Ending balance, March 31, 2021	$	44,680

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Debt

6 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt

DebtThe nature and terms of our debt instruments and credit facilities are described in detail in Note 7 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. Other than as described below, there were no material changes in the terms of our debt instruments during the six months ended March 31, 2021.

Long-term debt at March 31, 2021 and September 30, 2020 consisted of the following:

	March 31, 2021		September 30, 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 note Series A, 1995-1, 6.67%, due 2025	10,000		10,000
Unsecured 6.75% Debentures, due 2028	150,000		150,000
Finance lease obligations	8,612		8,631
Total long-term debt	7,368,612		4,568,631
Less:
Original issue discount on unsecured senior notes and debentures	3,030		583
Debt issuance cost	49,001		36,104
Current maturities	177		165
	$	7,316,404	$	4,531,779

On March 9, 2021, we completed a public offering of $1.1 billion of 0.625% senior notes due 2023, with an effective interest rate of 0.834%, after giving effect to the offering costs, and $1.1 billion floating rate senior notes due 2023 that bear interest at a rate equal to the the Three-Month LIBOR rate plus 0.38%. The net proceeds from the offering, after the underwriting discount and offering expenses of $2.2 billion, were used for the payment of unplanned natural gas costs incurred during Winter Storm Uri. See Note 8 to the unaudited condensed consolidated financial statements for further information. The notes are subject to optional redemption at any time on or after September 9, 2021 at a price equal to 100 percent of the principal amount of the notes being redeemed, plus any accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.

On October 1, 2020, we completed a public offering of $600 million of 1.50% senior notes due 2031, with an effective interest rate of 1.71%, after giving effect to the offering costs and settlement of our interest rate swaps. The net proceeds from the offering, after the underwriting discount and offering expenses, of $592.3 million, were used for general corporate purposes, including the repayment of working capital borrowings pursuant to our commercial paper program and the related settlement of our interest rate swaps.

Short-term debt

We utilize short-term debt to provide cost-effective, short-term financing until it can be replaced with a balance of long-term debt and equity financing that achieves the Company’s desired capital structure with an equity-to-total-capitalization ratio between 50% and 60%, inclusive of long-term and short-term debt. Our short-term borrowing requirements are driven primarily by construction work in progress and the seasonal nature of the natural gas business.

Our short-term borrowing requirements are satisfied through a combination of a $1.5 billion commercial paper program and four committed revolving credit facilities with third-party lenders that provide $2.5 billion of total working capital funding.

The primary source of our funding is our commercial paper program, which is supported by a five-year unsecured $1.5 billion credit facility that was replaced on March 31, 2021, with a new five-year unsecured $1.5 billion credit facility that expires on March 31, 2026. The new facility bears interest at a base rate or at a LIBOR-based rate for the applicable interest period, plus a margin ranging from zero percent to 0.25 percent for base rate advances or a margin ranging from 0.75 percent to 1.25 percent for LIBOR-based advances, based on the Company’s credit ratings. Additionally, the facility contains a $250

million accordion feature, which provides the opportunity to increase the total committed loan to $1.75 billion. At March 31, 2021 and September 30, 2020, there were no amounts outstanding under our commercial paper program.

We had a $600 million 364-day unsecured revolving credit facility, which was replaced on March 31, 2021, with a new $900 million three-year unsecured revolving credit facility. This new facility will be used primarily to provide additional working capital funding. The new facility bears interest at a base rate or at a LIBOR-based rate for the applicable interest period, plus a margin ranging from zero percent to 0.25 percent for base rate advances or a margin ranging from 0.75 percent to 1.25 percent for LIBOR-based advances, based on the Company's credit ratings. Additionally, the facility contains a $100 million accordion feature, which provides the opportunity to increase the total committed loan to $1.0 billion. At March 31, 2021, there were no borrowings outstanding under this facility.

Additionally, we have a $50 million 364-day unsecured facility, which was renewed April 1, 2021 and is used to provide working capital funding. There were no borrowings outstanding under this facility as of March 31, 2021.

Finally, we have a $50 million 364-day unsecured revolving credit facility, which was renewed April 29, 2021 and is used to issue letters of credit and to provide working capital funding. At March 31, 2021, there were no borrowings outstanding under this facility; however, outstanding letters of credit reduced the total amount available to us to $44.4 million.

Debt covenants

The availability of funds under these credit facilities is subject to conditions specified in the respective credit agreements, all of which we currently satisfy. These conditions include our compliance with financial covenants and the continued accuracy of representations and warranties contained in these agreements. We are required by the financial covenants in each of these facilities to maintain, at the end of each fiscal quarter, a ratio of total-debt-to-total-capitalization of no greater than 70 percent. At March 31, 2021, our total-debt-to-total-capitalization ratio, as defined in the agreements, was 49 percent. In addition, both the interest margin and the fee that we pay on unused amounts under certain of these facilities are subject to adjustment depending upon our credit ratings.

These credit facilities and our public indentures contain usual and customary covenants for our business, including covenants substantially limiting liens, substantial asset sales and mergers. Additionally, our public debt indentures relating to our senior notes and debentures, as well as certain of our revolving credit agreements, each contain a default provision that is triggered if outstanding indebtedness arising out of any other credit agreements in amounts ranging from in excess of $15 million to in excess of $100 million becomes due by acceleration or if not paid at maturity. We were in compliance with all of our debt covenants as of March 31, 2021. If we were unable to comply with our debt covenants, we would likely be required to repay our outstanding balances on demand, provide additional collateral or take other corrective actions.

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Shareholders' Equity

6 Months Ended

Mar. 31, 2021

Equity [Abstract]

Shareholders' Equity

Shareholders' EquityThe following tables present a reconciliation of changes in stockholders' equity for the three and six months ended March 31, 2021 and 2020.

	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, 2020	125,882,477	$	629	$	4,377,149	$	(57,589)	$	2,471,014	$	6,791,203
Net income	—	—		—		—		217,678		217,678
Other comprehensive income	—	—		—		60,121		—		60,121
Cash dividends ($0.625 per share)	—	—		—		—		(79,023)		(79,023)
Common stock issued:
Public and other stock offerings	2,126,118	11		219,998		—		—		220,009
Stock-based compensation plans	144,366	1		3,167		—		—		3,168
Balance, December 31, 2020	128,152,961	641		4,600,314		2,532		2,609,669		7,213,156
Net income	—	—		—		—		296,754		296,754
Other comprehensive income	—	—		—		137,939		—		137,939
Cash dividends ($0.625 per share)	—	—		—		—		(80,325)		(80,325)
Common stock issued:
Public and other stock offerings	2,498,026	12		248,948		—		—		248,960
Stock-based compensation plans	16,122	—		4,441		—		—		4,441
Balance, March 31, 2021	130,667,109	$	653	$	4,853,703	$	140,471	$	2,826,098	$	7,820,925

	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, 2019	119,338,925	$	597	$	3,712,194	$	(114,583)	$	2,152,015	$	5,750,223
Net income	—	—		—		—		178,673		178,673
Other comprehensive income	—	—		—		1,052		—		1,052
Cash dividends ($0.575 per share)	—	—		—		—		(69,557)		(69,557)
Common stock issued:
Public and other stock offerings	2,758,929	13		263,259		—		—		263,272
Stock-based compensation plans	164,549	1		4,111		—		—		4,112
Balance, December 31, 2019	122,262,403	611		3,979,564		(113,531)		2,261,131		6,127,775
Net income	—	—		—		—		239,646		239,646
Other comprehensive income	—	—		—		890		—		890
Cash dividends ($0.575 per share)	—	—		—		—		(70,520)		(70,520)
Common stock issued:
Public and other stock offerings	38,662	1		3,095		—		—		3,096
Stock-based compensation plans	7,660	—		3,528		—		—		3,528
Balance, March 31, 2020	122,308,725	$	612	$	3,986,187	$	(112,641)	$	2,430,257	$	6,304,415

Shelf Registration, At-the-Market Equity Sales Program and Equity Issuances

On February 11, 2020, we filed a shelf registration statement with the Securities and Exchange Commission (SEC) that allows us to issue up to $4.0 billion in common stock and/or debt securities, which expires February 11, 2023. At March 31, 2021, approximately $200 million of securities were available for issuance under the shelf registration statement.

During the six months ended March 31, 2021, we executed forward sales under our ATM equity sales program with various forward sellers who borrowed and sold 2,472,912 shares of our common stock at an aggregate price of $238.6 million. During the six months ended March 31, 2021, we also settled forward sale agreements with respect to 4,537,669 shares that had

been borrowed and sold by various forward sellers under the ATM program for net proceeds of $460.7 million. As of March 31, 2021, approximately $313 million of equity was available for issuance under the ATM program. Additionally, we had $115.6 million in available proceeds, based on a net price of $90.96 per share, from outstanding forward sale agreements, available through June 30, 2022.

Accumulated Other Comprehensive Income (Loss)

We record deferred gains (losses) in AOCI related to available-for-sale debt securities and interest rate agreement cash flow hedges. Deferred gains (losses) for our available-for-sale debt securities are recognized in earnings upon settlement, while deferred gains (losses) related to our interest rate agreement cash flow hedges are recognized in earnings as they are amortized. The following tables provide the components of our accumulated other comprehensive income (loss) balances, net of the related tax effects allocated to each component of other comprehensive income (loss).

	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	(129)		195,906		195,777
Amounts reclassified from accumulated other comprehensive income	—		2,283		2,283
Net current-period other comprehensive income (loss)	(129)		198,189		198,060
March 31, 2021	$	109	$	140,362	$	140,471

	Available- for-Sale Securities		Interest Rate Agreement Cash Flow Hedges		Total
	(In thousands)
September 30, 2019	$	132	$	(114,715)	$	(114,583)
Other comprehensive loss before reclassifications	(163)		—		(163)
Amounts reclassified from accumulated other comprehensive income	(1)		2,106		2,105
Net current-period other comprehensive income (loss)	(164)		2,106		1,942
March 31, 2020	$	(32)	$	(112,609)	$	(112,641)

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Interim Pension and Other Postretirement Benefit Plan Information

6 Months Ended

Mar. 31, 2021

Retirement Benefits, Description [Abstract]

Interim Pension and Other Postretirement Benefit Plan Information

Interim Pension and Other Postretirement Benefit Plan InformationThe components of our net periodic pension cost for our pension and other postretirement benefit plans for the three and six months ended March 31, 2021 and 2020 are presented in the following tables. Most of these costs are recoverable through our tariff rates. A portion of these costs is capitalized into our rate base or deferred as a regulatory asset or liability. The remaining costs are recorded as a component of operation and maintenance expense or other non-operating expense.

	Three Months Ended March 31
	Pension Benefits				Other Benefits
	2021		2020		2021		2020
	(In thousands)
Components of net periodic pension cost:
Service cost	$	4,613	$	4,652	$	4,306	$	3,366
Interest cost(1)	5,028		5,843		2,660		2,653
Expected return on assets(1)	(6,978)		(7,079)		(2,614)		(2,625)
Amortization of prior service cost (credit)(1)	(58)		(58)		43		43
Amortization of actuarial (gain) loss(1)	3,171		3,242		—		(334)
Net periodic pension cost	$	5,776	$	6,600	$	4,395	$	3,103

	Six Months Ended March 31
	Pension Benefits				Other Benefits
	2021		2020		2021		2020
	(In thousands)
Components of net periodic pension cost:
Service cost	$	9,225	$	9,305	$	8,612	$	6,733
Interest cost(1)	10,056		11,686		5,320		5,306
Expected return on assets(1)	(13,956)		(14,158)		(5,228)		(5,249)
Amortization of prior service cost (credit)(1)	(116)		(116)		86		87
Amortization of actuarial (gain) loss(1)	6,343		6,483		—		(669)
Net periodic pension cost	$	11,552	$	13,200	$	8,790	$	6,208

(1)    The components of net periodic cost other than the service cost component are included in the line item other non-operating expense in the condensed consolidated statements of comprehensive income or are capitalized on the condensed consolidated balance sheets as a regulatory asset or liability, as described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.

For the six months ended March 31, 2021 we contributed $8.7 million to our postretirement medical plans. We anticipate contributing a total of between $15 million and $25 million to our postretirement plans during fiscal 2021.

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Commitments and Contingencies

6 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Litigation and Environmental Matters

In the normal course of business, we are subject to various legal and regulatory proceedings. For such matters, we record liabilities when they are considered probable and estimable, based on currently available facts, our historical experience and our estimates of the ultimate outcome or resolution of the liability in the future. While the outcome of these proceedings is uncertain and a loss in excess of the amount we have accrued is possible though not reasonably estimable, it is the opinion of management that any amounts exceeding the accruals will not have a material adverse impact on our financial position, results of operations or cash flows.

We maintain liability insurance for various risks associated with the operation of our natural gas pipelines and facilities, including for property damage and bodily injury. These liability insurance policies generally require us to be responsible for the first $1.0 million (self-insured retention) of each incident.

The National Transportation Safety Board (NTSB) held a public meeting on January 12, 2021 to determine the probable cause of the incident that occurred at a Dallas, Texas residence on February 23, 2018 that resulted in one fatality and injuries to four other residents. At the meeting, the Board deliberated and voted on proposed findings of fact, a probable cause statement, and safety recommendations. On February 8, 2021, the NTSB issued its final report that included an Executive Summary, Findings, Probable Cause, and Recommendations. Also on February 8, 2021, safety recommendations letters were distributed to recommendation recipients, including Atmos Energy. Following the release of the NTSB’s final report, the Railroad Commission of Texas (RRC) completed its safety evaluation related to the same incident finding four alleged violations and initiated an enforcement proceeding to pursue administrative penalties totaling $1.6 million. We are working with the RRC to resolve the alleged violations and satisfy the administrative penalties.

We are a party to various other litigation and environmental-related matters or claims that have arisen in the ordinary course of our business. While the results of such litigation and response actions to such environmental-related matters or claims cannot be predicted with certainty, we continue to believe the final outcome of such litigation and matters or claims will not have a material adverse effect on our financial condition, results of operations or cash flows.

Purchase Commitments

Our distribution divisions maintain supply contracts with several vendors that generally cover a period of up to one year. Commitments for estimated base gas volumes are established under these contracts on a monthly basis at contractually negotiated prices. Commitments for incremental daily purchases are made as necessary during the month in accordance with the terms of the individual contract.

Our Mid-Tex Division also maintains a limited number of long-term supply contracts to ensure a reliable source of gas for our customers in its service area, which obligate it to purchase specified volumes at prices indexed to natural gas hubs. These purchase commitment contracts are detailed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. There were no material changes to the purchase commitments for the six months ended March 31, 2021.

Rate Regulatory Proceedings

As of March 31, 2021, routine rate regulatory proceedings were in progress in several of our service areas, which are discussed in further detail below in Management’s Discussion and Analysis — Recent Ratemaking Developments. Except for these proceedings, there were no material changes to rate regulatory proceedings for the six months ended March 31, 2021.

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Financial Instruments

6 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

Financial Instruments

We currently use financial instruments to mitigate commodity price risk and interest rate risk. The objectives and strategies for using financial instruments and the related accounting for these financial instruments are fully described in Notes 2 and 14 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. During the six months ended March 31, 2021, there were no material changes in our objectives, strategies and accounting for using financial instruments. Our financial instruments do not contain any credit-risk-related or other contingent features that could cause payments to be accelerated when our financial instruments are in net liability positions. The following summarizes those objectives and strategies.

Commodity Risk Management Activities

Our purchased gas cost adjustment mechanisms essentially insulate our distribution segment from commodity price risk; however, our customers are exposed to the effects of volatile natural gas prices. We manage this exposure through a combination of physical storage, fixed-price forward contracts and financial instruments, primarily over-the-counter swap and option contracts, in an effort to minimize the impact of natural gas price volatility on our customers during the winter heating season.

We typically seek to hedge between 25 and 50 percent of anticipated heating season gas purchases using financial instruments. For the 2020-2021 heating season (generally October through March), in the jurisdictions where we are permitted to utilize financial instruments, we hedged approximately 39 percent, or 15.8 Bcf, of the winter flowing gas requirements. We have not designated these financial instruments as hedges for accounting purposes.

Interest Rate Risk Management Activities

We manage interest rate risk by periodically entering into financial instruments to effectively fix the Treasury yield component of the interest cost associated with anticipated financings.

As of March 31, 2021, we had the following forward starting interest rate swaps to effectively fix the Treasury yield component which we designated as cash flow hedges at the time the agreements were executed:

Planned Debt Issuance Date	Amount Hedged		Effective Interest Rate
	(In thousands)
Fiscal 2022	$	450,000	1.33	%
Fiscal 2023	300,000		1.36	%
Fiscal 2025	300,000		1.35	%
	$	1,050,000

Quantitative Disclosures Related to Financial Instruments

The following tables present detailed information concerning the impact of financial instruments on our condensed consolidated balance sheet and statements of comprehensive income.

As of March 31, 2021, our financial instruments were comprised of both long and short commodity positions. A long position is a contract to purchase the commodity, while a short position is a contract to sell the commodity. As of March 31, 2021, we had 8,584 MMcf of net long commodity contracts outstanding. These contracts have not been designated as hedges.

Financial Instruments on the Balance Sheet

The following tables present the fair value and balance sheet classification of our financial instruments as of March 31, 2021 and September 30, 2020. The gross amounts of recognized assets and liabilities are netted within our unaudited condensed consolidated balance sheets to the extent that we have netting arrangements with our counterparties. However, for March 31, 2021 and September 30, 2020, no gross amounts and no cash collateral were netted within our consolidated balance sheet.

	Balance Sheet Location	Assets		Liabilities
		(In thousands)
March 31, 2021
Designated As Hedges:
Interest rate contracts	Other current assets / Other current liabilities	$	131,798	$	—
Interest rate contracts	Deferred charges and other assets / Deferred credits and other liabilities	193,786		—
Total		325,584		—
Not Designated As Hedges:
Commodity contracts	Other current assets / Other current liabilities	1,574		(62)
Total		1,574		(62)
Gross / Net Financial Instruments		$	327,158	$	(62)

	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)

Impact of Financial Instruments on the Statement of Comprehensive Income

Cash Flow Hedges

As discussed above, our distribution segment has interest rate agreements, which we designated as cash flow hedges at the time the agreements were executed. The net loss on settled interest rate agreements reclassified from AOCI into interest charges on our condensed consolidated statements of comprehensive income for the three months ended March 31, 2021 and

2020 was $1.5 million and $1.4 million and for the six months ended March 31, 2021 and 2020 was $2.9 million and $2.7 million.

The following table summarizes the gains and losses arising from hedging transactions that were recognized as a component of other comprehensive income (loss), net of taxes, for the three and six months ended March 31, 2021 and 2020. The amounts included in the table below exclude gains and losses arising from ineffectiveness because those amounts are immediately recognized in the statement of comprehensive income as incurred.

	Three Months Ended March 31				Six Months Ended March 31
	2021		2020		2021		2020
	(In thousands)
Increase in fair value:
Interest rate agreements	$	136,864	$	—	$	195,906	$	—
Recognition of losses in earnings due to settlements:
Interest rate agreements	1,141		1,053		2,283		2,106
Total other comprehensive income (loss) from hedging, net of tax	$	138,005	$	1,053	$	198,189	$	2,106

Deferred gains (losses) recorded in AOCI associated with our interest rate agreements are recognized in earnings as they are amortized over the terms of the underlying debt instruments. As of March 31, 2021, we had $112.2 million of net realized losses in AOCI associated with our interest rate agreements. The following amounts, net of deferred taxes, represent the expected recognition in earnings of the deferred net losses recorded in AOCI associated with our interest rate agreements, based upon the fair values of these agreements at the date of settlement. The remaining amortization periods for these settled amounts extend through fiscal 2049. However, the table below does not include the expected recognition in earnings of our outstanding interest rate swaps as those instruments have not yet settled.

	Interest Rate Agreements
	(In thousands)
Next twelve months	$	(4,566)
Thereafter	(107,653)
Total	$	(112,219)

Financial Instruments Not Designated as Hedges

As discussed above, commodity contracts which are used in our distribution segment are not designated as hedges. However, there is no earnings impact on our distribution segment as a result of the use of these financial instruments because the gains and losses arising from the use of these financial instruments are recognized in the consolidated statement of comprehensive income as a component of purchased gas cost when the related costs are recovered through our rates and recognized in revenue. Accordingly, the impact of these financial instruments is excluded from this presentation.

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Fair Value Measurements

6 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

We report certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We record cash and cash equivalents, accounts receivable and accounts payable at carrying value, which substantially approximates fair value due to the short-term nature of these assets and liabilities. For other financial assets and liabilities, we primarily use quoted market prices and other observable market pricing information to minimize the use of unobservable pricing inputs in our measurements when determining fair value. The methods used to determine fair value for our assets and liabilities are fully described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. During the six months ended March 31, 2021, there were no changes in these methods.

Fair value measurements also apply to the valuation of our pension and postretirement plan assets. Current accounting guidance requires employers to annually disclose information about fair value measurements of the assets of a defined benefit pension or other postretirement plan. The fair value of these assets is presented in Note 9 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.

Quantitative Disclosures

Financial Instruments

The classification of our fair value measurements requires judgment regarding the degree to which market data is observable or corroborated by observable market data. Authoritative accounting literature establishes a fair value hierarchy that prioritizes the inputs used to measure fair value based on observable and unobservable data. The hierarchy categorizes the inputs into three levels, with the highest priority given to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), with the lowest priority given to unobservable inputs (Level 3). The following tables summarize, by level within the fair value hierarchy, our assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2021 and September 30, 2020. Assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)(1)		Significant Other Unobservable Inputs (Level 3)		Netting and Cash Collateral		March 31, 2021
	(In thousands)
Assets:
Financial instruments	$	—	$	327,158	$	—	$	—	$	327,158
Debt and equity securities
Registered investment companies	34,501		—		—		—		34,501
Bond mutual funds	34,131		—		—		—		34,131
Bonds(2)	—		35,755		—		—		35,755
Money market funds	—		5,105		—		—		5,105
Total debt and equity securities	68,632		40,860		—		—		109,492
Total assets	$	68,632	$	368,018	$	—	$	—	$	436,650
Liabilities:
Financial instruments	$	—	$	62	$	—	$	—	$	62

	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

(1)Our Level 2 measurements consist of over-the-counter options and swaps, which are valued using a market-based approach in which observable market prices are adjusted for criteria specific to each instrument, such as the strike price, notional amount or basis differences, municipal and corporate bonds, which are valued based on the most recent available quoted market prices and money market funds that are valued at cost.

(2)Our investments in bonds are considered available-for-sale debt securities in accordance with current accounting guidance.

Debt and equity securities are comprised of our available-for-sale debt securities and our equity securities. As described further in Note 2 to the unaudited condensed consolidated financial statements, we adopted ASC 326 effective October 1, 2020. In accordance with the new guidance, we evaluate the performance of our available-for-sale debt securities on an investment by

investment basis for impairment, taking into consideration the investment’s purpose, volatility, current returns and any intent to sell the security. As of March 31, 2021, no allowance for credit losses was recorded for our available-for-sale debt securities. At March 31, 2021 and September 30, 2020, the amortized cost of our available-for-sale debt securities was $35.6 million and $32.6 million. At March 31, 2021, we maintained investments in bonds that have contractual maturity dates ranging from April 2021 through March 2024.

Other Fair Value Measures

Our long-term debt is recorded at carrying value. The fair value of our long-term debt, excluding finance leases, is determined using third party market value quotations, which are considered Level 1 fair value measurements for debt instruments with a recent, observable trade or Level 2 fair value measurements for debt instruments where fair value is determined using the most recent available quoted market price. The carrying value of our finance leases materially approximates fair value. The following table presents the carrying value and fair value of our long-term debt, excluding finance leases, debt issuance costs and original issue premium or discount, as of March 31, 2021 and September 30, 2020:

	March 31, 2021		September 30, 2020
	(In thousands)
Carrying Amount	$	7,360,000	$	4,560,000
Fair Value	$	7,828,415	$	5,597,183

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Concentration of Credit Risk	6 Months Ended
	Mar. 31, 2021
Risks and Uncertainties [Abstract]
Concentration of Credit Risk	Concentration of Credit RiskInformation regarding our concentration of credit risk is disclosed in Note 16 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. During the six months ended March 31, 2021, there were no material changes in our concentration of credit risk.

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Winter Storm Uri

6 Months Ended

Mar. 31, 2021

Unusual or Infrequent Items, or Both [Abstract]

Winter Storm Uri

Winter Storm Uri

Overview

A historic winter storm impacted supply, market pricing and demand for natural gas in our service territories in mid-February. During this time, the governors of Kansas and Texas each declared a state of emergency, and certain regulatory agencies issued emergency orders that impacted the utility and natural gas industries, including statewide utilities curtailment programs and orders encouraging or requiring jurisdictional natural gas utilities to work to ensure customers were provided with safe and reliable natural gas service.

Due to the historic nature of this winter storm, we experienced unforeseeable and unprecedented market pricing for gas costs, which resulted in aggregated natural gas purchases during the month of February of approximately $2.3 billion. These gas costs were paid by the end of March 2021.

Incremental Financing

As discussed in Note 6 to the unaudited condensed consolidated financial statements, on March 9, 2021, we completed a public offering of $2.2 billion in debt securities and the net proceeds from the offering, after the underwriting discount and offering expenses, were used to substantially fund these purchased gas costs. As a result of this unplanned debt issuance, S&P lowered its long-term/short-term credit ratings from A/A-1 to A-/A-2 and placed our ratings under negative outlook. Moody’s reaffirmed its long-term and short-term credit ratings and placed our ratings under negative outlook. These credit rating adjustments and the issuance of unplanned debt did not impact our ability to satisfy our debt covenants.

Regulatory Asset Accounting

Our purchased gas costs are recoverable through purchased gas cost adjustment mechanisms in each state where we operate. Due to the unprecedented level of purchased gas costs incurred during Winter Storm Uri, the Kansas Corporation Commission (KCC) and the Railroad Commission of Texas (RRC) issued orders authorizing natural gas utilities to record a regulatory asset to account for the extraordinary costs associated with the winter storm. Pursuant to these orders, as of March 31, 2021, we have recorded a $2.1 billion regulatory asset for incremental costs, including carrying costs, incurred in Kansas ($76.7 million) and Texas ($2,016.8 million) within deferred charges and other assets on our condensed consolidated balance sheet. These costs are subject to review for prudency by each commission and may be adjusted.

Income Taxes

We deduct our purchased gas costs for federal income tax purposes in the period they are paid. Based on our current projection of taxable income for fiscal 2021 and the expected magnitude of the purchased gas cost deduction, we recorded a $469.4 million (tax effected) increase in our net operating loss carryforwards and a corresponding increase to our deferred tax liability as of March 31, 2021.

At March 31, 2021, we had $813.1 million (tax effected) of federal net operating loss carryforwards. The federal net operating loss carryforwards are available to offset future taxable income. Net operating loss carryforwards incurred prior to December 22, 2017 begin to expire in 2029. The Company also has $57.5 million (tax effected) of state net operating loss carryforwards (net of $15.3 million of federal effects) and $1.8 million of state tax credits carryforwards (net of $0.5 million of federal effects). Depending on the jurisdiction in which the state net operating loss was generated, the carryforwards are subject to expiration through the remainder of fiscal 2021.

Securitization Legislation

To minimize the impact on the customer bill by extending the recovery periods for these unprecedented purchased gas costs, the Kansas and Texas State Legislatures each introduced securitization legislation during our fiscal second quarter. The following summarizes the status of the legislation as of the date of this filing.

Kansas

The Kansas securitization legislation permits a natural gas public utility, in its sole discretion, to apply to the KCC for a financing order for the recovery of qualified extraordinary costs through the issuance of bonds. Within 25 days after a complete application is filed, the KCC shall establish a procedural schedule that requires it to issue a decision on the application within 180 days from the date a complete application was filed. Utilities may apply for a recovery period of up to 32 years. The legislation became effective April 9, 2021.

Texas

The proposed Texas securitization legislation authorizes the RRC to issue a statewide securitization financing order to recover the extraordinary gas costs incurred by natural gas utilities from current and future customers through uniform monthly volumetric charges for a period of up to 30 years.

The proposed legislation provides that natural gas utilities have 60 days from the passage of the bill to submit extraordinary gas costs incurred during Winter Storm Uri for a prudency review. The RRC has 90 days to approve each filing. Following the approval of all applications, the RRC will issue a financing order to the Texas Public Financing Authority authorizing the issuance of customer rate relief bonds to securitize the aggregated extraordinary costs for all participating utilities. The participating utilities, as servicers acting on behalf of the state of the securitization financing, will bill and collect customer rate relief charges from their current and future customers and remit the collections to the state issuer of the securitization financing. The proposed legislation is still being considered by the Texas Legislature.

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Unaudited Financial Information (Policies)

6 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Accounting pronouncements adopted and not yet adopted

Accounting pronouncements adopted in fiscal 2021

Effective October 1, 2020, we adopted new accounting guidance that requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model. Under this model, we estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. The new guidance also introduces a new impairment recognition model for available-for-sale debt securities that will require credit losses to be recorded through an allowance account. We adopted the new guidance using a modified retrospective method. The adoption of this standard did not have a material impact on our financial position, results of operations and cash flows and no adjustments were made to October 1, 2020 opening balances as a result of this adoption. As required under the modified retrospective method of adoption, results for the reporting period beginning after October 1, 2020 are presented under Accounting Standards Codification (ASC) 326, while prior period amounts are not adjusted. See Notes 5 and 12 to the unaudited condensed consolidated financial statements for further discussion of implementation of the standard.

Accounting pronouncements that will be effective after fiscal 2021

In March 2020, the Financial Accounting Standards Board (FASB) issued optional guidance which will ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected

by the cessation of the London Interbank Offered Rate (LIBOR). The amendments can be elected immediately, as of March 12, 2020, through December 31, 2022. We are currently evaluating if we will apply the optional guidance as we assess the impact of the cessation of LIBOR on our current contracts and hedging relationships and the potential impact on our financial position, results of operations and cash flows.

Regulatory assets and liabilities

Regulatory assets and liabilities

Accounting principles generally accepted in the United States require cost-based, rate-regulated entities that meet certain criteria to reflect the authorized recovery of costs due to regulatory decisions in their financial statements. As a result, certain costs are permitted to be capitalized rather than expensed because they can be recovered through rates. We record certain costs as regulatory assets when future recovery through customer rates is considered probable. Regulatory liabilities are recorded when it is probable that revenues will be reduced for amounts that will be credited to customers through the ratemaking process. Substantially all of our regulatory assets are recorded as a component of deferred charges and other assets and our regulatory liabilities are recorded as a component of other current liabilities and deferred credits and other liabilities. Deferred gas costs are recorded either in other current assets or liabilities.

Earnings per share

We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic weighted average shares outstanding is calculated based upon the weighted average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock awards that have not yet been issued as common stock. Additionally, the weighted average shares outstanding for diluted EPS includes the incremental effects of the forward sale agreements, discussed in Note 7 to the unaudited condensed consolidated financial statements, when the impact is dilutive.

Fair value measurement

Fair Value MeasurementsWe report certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We record cash and cash equivalents, accounts receivable and accounts payable at carrying value, which substantially approximates fair value due to the short-term nature of these assets and liabilities. For other financial assets and liabilities, we primarily use quoted market prices and other observable market pricing information to minimize the use of unobservable pricing inputs in our measurements when determining fair value. The methods used to determine fair value for our assets and liabilities are fully described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. During the six months ended March 31, 2021, there were no changes in these methods.

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Unaudited Financial Information (Table)

6 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Schedule of Regulatory Assets

Significant regulatory assets and liabilities as of March 31, 2021 and September 30, 2020 included the following:

	March 31, 2021		September 30, 2020
	(In thousands)
Regulatory assets:
Pension and postretirement benefit costs	$	143,685	$	149,089
Infrastructure mechanisms(1)	189,154		183,943
Winter Storm Uri incremental costs(2)	2,093,534		—
Deferred gas costs	19,636		40,593
Recoverable loss on reacquired debt	4,165		4,894
Deferred pipeline record collection costs	30,415		29,839
Other	6,093		6,283
	$	2,486,682	$	414,641
Regulatory liabilities:
Regulatory excess deferred taxes(3)	$	702,393	$	718,651
Regulatory cost of removal obligation	531,625		531,096
Deferred gas costs	122,864		19,985
Asset retirement obligation	20,348		20,348
APT annual adjustment mechanism	44,291		57,379
Other	25,828		19,554
	$	1,447,349	$	1,367,013

(1)Infrastructure mechanisms in Texas, Louisiana and Tennessee allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates.

(2)Includes extraordinary gas costs incurred during Winter Storm Uri and related carrying costs. See Note 8 to the unaudited condensed consolidated financial statements for further information. This amount is recorded within deferred charges and other assets on the condensed consolidated balance sheet as of March 31, 2021.

(3)Includes amount from the remeasurement of the net deferred tax liability included in our rate base as a result of the Tax Cuts and Jobs Act of 2017 (the "TCJA") and a Kansas legislative change enacted in fiscal 2020. Of this amount, $62.9 million as of March 31, 2021 and $20.9 million as of September 30, 2020 is recorded in other current liabilities. These liabilities are currently being returned to customers in most of our jurisdictions on a provisional basis over 15 to 69 years until formal orders establish the final refund periods. During the six months ended March 31, 2021, our effective income tax rate decreased from 22.1% to 19.8%, primarily due to the approval of the amortization of excess deferred income taxes to APT customers.

Schedule of Regulatory Liabilities

Significant regulatory assets and liabilities as of March 31, 2021 and September 30, 2020 included the following:

	March 31, 2021		September 30, 2020
	(In thousands)
Regulatory assets:
Pension and postretirement benefit costs	$	143,685	$	149,089
Infrastructure mechanisms(1)	189,154		183,943
Winter Storm Uri incremental costs(2)	2,093,534		—
Deferred gas costs	19,636		40,593
Recoverable loss on reacquired debt	4,165		4,894
Deferred pipeline record collection costs	30,415		29,839
Other	6,093		6,283
	$	2,486,682	$	414,641
Regulatory liabilities:
Regulatory excess deferred taxes(3)	$	702,393	$	718,651
Regulatory cost of removal obligation	531,625		531,096
Deferred gas costs	122,864		19,985
Asset retirement obligation	20,348		20,348
APT annual adjustment mechanism	44,291		57,379
Other	25,828		19,554
	$	1,447,349	$	1,367,013

(1)Infrastructure mechanisms in Texas, Louisiana and Tennessee allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates.

(2)Includes extraordinary gas costs incurred during Winter Storm Uri and related carrying costs. See Note 8 to the unaudited condensed consolidated financial statements for further information. This amount is recorded within deferred charges and other assets on the condensed consolidated balance sheet as of March 31, 2021.

(3)Includes amount from the remeasurement of the net deferred tax liability included in our rate base as a result of the Tax Cuts and Jobs Act of 2017 (the "TCJA") and a Kansas legislative change enacted in fiscal 2020. Of this amount, $62.9 million as of March 31, 2021 and $20.9 million as of September 30, 2020 is recorded in other current liabilities. These liabilities are currently being returned to customers in most of our jurisdictions on a provisional basis over 15 to 69 years until formal orders establish the final refund periods. During the six months ended March 31, 2021, our effective income tax rate decreased from 22.1% to 19.8%, primarily due to the approval of the amortization of excess deferred income taxes to APT customers.

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Segment Information (Table)

6 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Income statements and capital expenditures for the three and six months ended March 31, 2021 and 2020 by segment are presented in the following tables:

	Three Months Ended March 31, 2021
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	1,281,826	$	37,247	$	—	$	1,319,073
Intersegment revenues	848		116,921		(117,769)		—
Total operating revenues	1,282,674		154,168		(117,769)		1,319,073
Purchased gas cost	691,147		113		(117,451)		573,809
Operation and maintenance expense	123,990		32,703		(318)		156,375
Depreciation and amortization expense	85,667		32,969		—		118,636
Taxes, other than income	78,615		9,834		—		88,449
Operating income	303,255		78,549		—		381,804
Other non-operating income (expense)	(760)		3,594		—		2,834
Interest charges	14,017		12,079		—		26,096
Income before income taxes	288,478		70,064		—		358,542
Income tax expense	56,142		5,646		—		61,788
Net income	$	232,336	$	64,418	$	—	$	296,754
Capital expenditures	$	296,184	$	92,735	$	—	$	388,919

	Three Months Ended March 31, 2020
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	932,296	$	45,369	$	—	$	977,665
Intersegment revenues	709		100,868		(101,577)		—
Total operating revenues	933,005		146,237		(101,577)		977,665
Purchased gas cost	418,935		202		(101,254)		317,883
Operation and maintenance expense	115,851		32,296		(323)		147,824
Depreciation and amortization expense	76,265		29,651		—		105,916
Taxes, other than income	68,413		6,191		—		74,604
Operating income	253,541		77,897		—		331,438
Other non-operating income (expense)	(5,191)		2,202		—		(2,989)
Interest charges	10,797		11,374		—		22,171
Income before income taxes	237,553		68,725		—		306,278
Income tax expense	50,489		16,143		—		66,632
Net income	$	187,064	$	52,582	$	—	$	239,646
Capital expenditures	$	373,313	$	92,238	$	—	$	465,551

	Six Months Ended March 31, 2021
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	2,157,713	$	75,840	$	—	$	2,233,553
Intersegment revenues	1,611		238,041		(239,652)		—
Total operating revenues	2,159,324		313,881		(239,652)		2,233,553
Purchased gas cost	1,102,219		(1,131)		(239,019)		862,069
Operation and maintenance expense	232,792		62,859		(633)		295,018
Depreciation and amortization expense	168,537		65,384		—		233,921
Taxes, other than income	142,967		18,934		—		161,901
Operating income	512,809		167,835		—		680,644
Other non-operating income	75		8,831		—		8,906
Interest charges	24,729		23,377		—		48,106
Income before income taxes	488,155		153,289		—		641,444
Income tax expense	102,127		24,885		—		127,012
Net income	$	386,028	$	128,404	$	—	$	514,432
Capital expenditures	$	602,200	$	243,528	$	—	$	845,728

	Six Months Ended March 31, 2020
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	1,760,136	$	93,092	$	—	$	1,853,228
Intersegment revenues	1,373		201,321		(202,694)		—
Total operating revenues	1,761,509		294,413		(202,694)		1,853,228
Purchased gas cost	816,493		301		(202,043)		614,751
Operation and maintenance expense	230,203		70,517		(651)		300,069
Depreciation and amortization expense	152,339		58,639		—		210,978
Taxes, other than income	128,656		14,555		—		143,211
Operating income	433,818		150,401		—		584,219
Other non-operating income (expense)	(3,237)		5,135		—		1,898
Interest charges	27,159		22,241		—		49,400
Income before income taxes	403,422		133,295		—		536,717
Income tax expense	86,601		31,797		—		118,398
Net income	$	316,821	$	101,498	$	—	$	418,319
Capital expenditures	$	777,560	$	217,177	$	—	$	994,737

Balance sheet information at March 31, 2021 and September 30, 2020 by segment is presented in the following tables:

	March 31, 2021
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Property, plant and equipment, net	$	10,465,072	$	3,574,516	$	—	$	14,039,588
Total assets	$	18,661,545	$	3,799,037	$	(3,051,772)	$	19,408,810

	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

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Earnings Per Share (Table)

6 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

Basic and diluted earnings per share for the three and six months ended March 31, 2021 and 2020 are calculated as follows:

	Three Months Ended March 31				Six Months Ended March 31
	2021		2020		2021		2020
	(In thousands, except per share amounts)
Basic Earnings Per Share
Net income	$	296,754	$	239,646	$	514,432	$	418,319
Less: Income allocated to participating securities	199		178		350		314
Income available to common shareholders	$	296,555	$	239,468	$	514,082	$	418,005
Basic weighted average shares outstanding	129,161		122,916		128,098		122,015
Net income per share — Basic	$	2.30	$	1.95	$	4.01	$	3.43
Diluted Earnings Per Share
Income available to common shareholders	$	296,555	$	239,468	$	514,082	$	418,005
Effect of dilutive shares	—		—		—		—
Income available to common shareholders	$	296,555	$	239,468	$	514,082	$	418,005
Basic weighted average shares outstanding	129,161		122,916		128,098		122,015
Dilutive shares	3		81		2		164
Diluted weighted average shares outstanding	129,164		122,997		128,100		122,179
Net income per share - Diluted	$	2.30	$	1.95	$	4.01	$	3.42

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Revenue and Accounts Receivable (Table)

6 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables disaggregate our revenue from contracts with customers by customer type and segment and provide a reconciliation to total operating revenues, including intersegment revenues, for the three and six months ended March 31, 2021 and 2020.

	Three Months Ended March 31, 2021				Three Months Ended March 31, 2020
	Distribution		Pipeline and Storage		Distribution		Pipeline and Storage
	(In thousands)
Gas sales revenues:
Residential	$	893,720	$	—	$	596,315	$	—
Commercial	326,182		—		230,779		—
Industrial	31,066		—		25,628		—
Public authority and other	20,227		—		14,662		—
Total gas sales revenues	1,271,195		—		867,384		—
Transportation revenues	30,973		151,565		28,504		154,748
Miscellaneous revenues	3,325		3,878		6,986		1,335
Revenues from contracts with customers	1,305,493		155,443		902,874		156,083
Alternative revenue program revenues(1)	(23,313)		(1,275)		29,638		(9,846)
Other revenues	494		—		493		—
Total operating revenues	$	1,282,674	$	154,168	$	933,005	$	146,237

	Six Months Ended March 31, 2021				Six Months Ended March 31, 2020
	Distribution		Pipeline and Storage		Distribution		Pipeline and Storage
	(In thousands)
Gas sales revenues:
Residential	$	1,485,554	$	—	$	1,148,391	$	—
Commercial	535,129		—		442,093		—
Industrial	55,774		—		50,553		—
Public authority and other	33,289		—		27,684		—
Total gas sales revenues	2,109,746		—		1,668,721		—
Transportation revenues	58,740		316,326		55,144		306,758
Miscellaneous revenues	5,721		9,026		13,772		6,490
Revenues from contracts with customers	2,174,207		325,352		1,737,637		313,248
Alternative revenue program revenues(1)	(15,872)		(11,471)		22,887		(18,835)
Other revenues	989		—		985		—
Total operating revenues	$	2,159,324	$	313,881	$	1,761,509	$	294,413

(1)    In our distribution segment, we have weather-normalization adjustment mechanisms that serve to mitigate the effects of weather on our revenue. Additionally, APT has a regulatory mechanism that requires that we share with its tariffed customers 75% of the difference between the total non-tariffed revenues earned during a test period and a regulatorily determined revenue benchmark.

Allowance for Credit Loss Activity

Rollforwards of our allowance for uncollectible accounts for the three and six months ended March 31, 2021 are presented in the table below. The allowance excludes the gas cost portion of customers’ bills for approximately 78 percent of our customers as we have the ability to collect these gas costs through our gas cost recovery mechanisms in most of our jurisdictions.

	Three Months Ended March 31, 2021
	(In thousands)
Beginning balance, December 31, 2020	$	35,089
Current period provisions	11,532
Write-offs charged against allowance	(2,381)
Recoveries of amounts previously written off	440
Ending balance, March 31, 2021	$	44,680

	Six Months Ended March 31, 2021
	(In thousands)
Beginning balance, September 30, 2020	$	29,949
Current period provisions	18,469
Write-offs charged against allowance	(4,669)
Recoveries of amounts previously written off	931
Ending balance, March 31, 2021	$	44,680

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Debt (Table)

6 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Long-term debt at March 31, 2021 and September 30, 2020 consisted of the following:

	March 31, 2021		September 30, 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 note Series A, 1995-1, 6.67%, due 2025	10,000		10,000
Unsecured 6.75% Debentures, due 2028	150,000		150,000
Finance lease obligations	8,612		8,631
Total long-term debt	7,368,612		4,568,631
Less:
Original issue discount on unsecured senior notes and debentures	3,030		583
Debt issuance cost	49,001		36,104
Current maturities	177		165
	$	7,316,404	$	4,531,779

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Shareholders' Equity (Table)

6 Months Ended

Mar. 31, 2021

Equity [Abstract]

Reconciliation of Changes in Stockholders Equity

The following tables present a reconciliation of changes in stockholders' equity for the three and six months ended March 31, 2021 and 2020.

	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, 2020	125,882,477	$	629	$	4,377,149	$	(57,589)	$	2,471,014	$	6,791,203
Net income	—	—		—		—		217,678		217,678
Other comprehensive income	—	—		—		60,121		—		60,121
Cash dividends ($0.625 per share)	—	—		—		—		(79,023)		(79,023)
Common stock issued:
Public and other stock offerings	2,126,118	11		219,998		—		—		220,009
Stock-based compensation plans	144,366	1		3,167		—		—		3,168
Balance, December 31, 2020	128,152,961	641		4,600,314		2,532		2,609,669		7,213,156
Net income	—	—		—		—		296,754		296,754
Other comprehensive income	—	—		—		137,939		—		137,939
Cash dividends ($0.625 per share)	—	—		—		—		(80,325)		(80,325)
Common stock issued:
Public and other stock offerings	2,498,026	12		248,948		—		—		248,960
Stock-based compensation plans	16,122	—		4,441		—		—		4,441
Balance, March 31, 2021	130,667,109	$	653	$	4,853,703	$	140,471	$	2,826,098	$	7,820,925

	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, 2019	119,338,925	$	597	$	3,712,194	$	(114,583)	$	2,152,015	$	5,750,223
Net income	—	—		—		—		178,673		178,673
Other comprehensive income	—	—		—		1,052		—		1,052
Cash dividends ($0.575 per share)	—	—		—		—		(69,557)		(69,557)
Common stock issued:
Public and other stock offerings	2,758,929	13		263,259		—		—		263,272
Stock-based compensation plans	164,549	1		4,111		—		—		4,112
Balance, December 31, 2019	122,262,403	611		3,979,564		(113,531)		2,261,131		6,127,775
Net income	—	—		—		—		239,646		239,646
Other comprehensive income	—	—		—		890		—		890
Cash dividends ($0.575 per share)	—	—		—		—		(70,520)		(70,520)
Common stock issued:
Public and other stock offerings	38,662	1		3,095		—		—		3,096
Stock-based compensation plans	7,660	—		3,528		—		—		3,528
Balance, March 31, 2020	122,308,725	$	612	$	3,986,187	$	(112,641)	$	2,430,257	$	6,304,415

Schedule of Accumulated Other Comprehensive Income (Loss)

The following tables provide the components of our accumulated other comprehensive income (loss) balances, net of the related tax effects allocated to each component of other comprehensive income (loss).

	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	(129)		195,906		195,777
Amounts reclassified from accumulated other comprehensive income	—		2,283		2,283
Net current-period other comprehensive income (loss)	(129)		198,189		198,060
March 31, 2021	$	109	$	140,362	$	140,471

	Available- for-Sale Securities		Interest Rate Agreement Cash Flow Hedges		Total
	(In thousands)
September 30, 2019	$	132	$	(114,715)	$	(114,583)
Other comprehensive loss before reclassifications	(163)		—		(163)
Amounts reclassified from accumulated other comprehensive income	(1)		2,106		2,105
Net current-period other comprehensive income (loss)	(164)		2,106		1,942
March 31, 2020	$	(32)	$	(112,609)	$	(112,641)

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Interim Pension and Other Postretirement Benefit Plan Information (Table)

6 Months Ended

Mar. 31, 2021

Retirement Benefits, Description [Abstract]

Schedule of Net Benefit Costs

The components of our net periodic pension cost for our pension and other postretirement benefit plans for the three and six months ended March 31, 2021 and 2020 are presented in the following tables. Most of these costs are recoverable through our tariff rates. A portion of these costs is capitalized into our rate base or deferred as a regulatory asset or liability. The remaining costs are recorded as a component of operation and maintenance expense or other non-operating expense.

	Three Months Ended March 31
	Pension Benefits				Other Benefits
	2021		2020		2021		2020
	(In thousands)
Components of net periodic pension cost:
Service cost	$	4,613	$	4,652	$	4,306	$	3,366
Interest cost(1)	5,028		5,843		2,660		2,653
Expected return on assets(1)	(6,978)		(7,079)		(2,614)		(2,625)
Amortization of prior service cost (credit)(1)	(58)		(58)		43		43
Amortization of actuarial (gain) loss(1)	3,171		3,242		—		(334)
Net periodic pension cost	$	5,776	$	6,600	$	4,395	$	3,103

	Six Months Ended March 31
	Pension Benefits				Other Benefits
	2021		2020		2021		2020
	(In thousands)
Components of net periodic pension cost:
Service cost	$	9,225	$	9,305	$	8,612	$	6,733
Interest cost(1)	10,056		11,686		5,320		5,306
Expected return on assets(1)	(13,956)		(14,158)		(5,228)		(5,249)
Amortization of prior service cost (credit)(1)	(116)		(116)		86		87
Amortization of actuarial (gain) loss(1)	6,343		6,483		—		(669)
Net periodic pension cost	$	11,552	$	13,200	$	8,790	$	6,208

(1)    The components of net periodic cost other than the service cost component are included in the line item other non-operating expense in the condensed consolidated statements of comprehensive income or are capitalized on the condensed consolidated balance sheets as a regulatory asset or liability, as described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.

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Financial Instruments (Table)

6 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives

As of March 31, 2021, we had the following forward starting interest rate swaps to effectively fix the Treasury yield component which we designated as cash flow hedges at the time the agreements were executed:

Planned Debt Issuance Date	Amount Hedged		Effective Interest Rate
	(In thousands)
Fiscal 2022	$	450,000	1.33	%
Fiscal 2023	300,000		1.36	%
Fiscal 2025	300,000		1.35	%
	$	1,050,000

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables present the fair value and balance sheet classification of our financial instruments as of March 31, 2021 and September 30, 2020. The gross amounts of recognized assets and liabilities are netted within our unaudited condensed consolidated balance sheets to the extent that we have netting arrangements with our counterparties. However, for March 31, 2021 and September 30, 2020, no gross amounts and no cash collateral were netted within our consolidated balance sheet.

	Balance Sheet Location	Assets		Liabilities
		(In thousands)
March 31, 2021
Designated As Hedges:
Interest rate contracts	Other current assets / Other current liabilities	$	131,798	$	—
Interest rate contracts	Deferred charges and other assets / Deferred credits and other liabilities	193,786		—
Total		325,584		—
Not Designated As Hedges:
Commodity contracts	Other current assets / Other current liabilities	1,574		(62)
Total		1,574		(62)
Gross / Net Financial Instruments		$	327,158	$	(62)

	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)

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table summarizes the gains and losses arising from hedging transactions that were recognized as a component of other comprehensive income (loss), net of taxes, for the three and six months ended March 31, 2021 and 2020. The amounts included in the table below exclude gains and losses arising from ineffectiveness because those amounts are immediately recognized in the statement of comprehensive income as incurred.

	Three Months Ended March 31				Six Months Ended March 31
	2021		2020		2021		2020
	(In thousands)
Increase in fair value:
Interest rate agreements	$	136,864	$	—	$	195,906	$	—
Recognition of losses in earnings due to settlements:
Interest rate agreements	1,141		1,053		2,283		2,106
Total other comprehensive income (loss) from hedging, net of tax	$	138,005	$	1,053	$	198,189	$	2,106

Schedule Of Expected Deferred Gains (Losses) Recognition

However, the table below does not include the expected recognition in earnings of our outstanding interest rate swaps as those instruments have not yet settled.

	Interest Rate Agreements
	(In thousands)
Next twelve months	$	(4,566)
Thereafter	(107,653)
Total	$	(112,219)

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Fair Value Measurements (Table)

6 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables summarize, by level within the fair value hierarchy, our assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2021 and September 30, 2020. Assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)(1)		Significant Other Unobservable Inputs (Level 3)		Netting and Cash Collateral		March 31, 2021
	(In thousands)
Assets:
Financial instruments	$	—	$	327,158	$	—	$	—	$	327,158
Debt and equity securities
Registered investment companies	34,501		—		—		—		34,501
Bond mutual funds	34,131		—		—		—		34,131
Bonds(2)	—		35,755		—		—		35,755
Money market funds	—		5,105		—		—		5,105
Total debt and equity securities	68,632		40,860		—		—		109,492
Total assets	$	68,632	$	368,018	$	—	$	—	$	436,650
Liabilities:
Financial instruments	$	—	$	62	$	—	$	—	$	62

	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

(1)Our Level 2 measurements consist of over-the-counter options and swaps, which are valued using a market-based approach in which observable market prices are adjusted for criteria specific to each instrument, such as the strike price, notional amount or basis differences, municipal and corporate bonds, which are valued based on the most recent available quoted market prices and money market funds that are valued at cost.

(2)Our investments in bonds are considered available-for-sale debt securities in accordance with current accounting guidance.

Schedule of Carrying Values and Estimated Fair Values of Long-Term Debt

The following table presents the carrying value and fair value of our long-term debt, excluding finance leases, debt issuance costs and original issue premium or discount, as of March 31, 2021 and September 30, 2020:

	March 31, 2021		September 30, 2020
	(In thousands)
Carrying Amount	$	7,360,000	$	4,560,000
Fair Value	$	7,828,415	$	5,597,183

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Nature of Business (Details) customer in Millions	Mar. 31, 2021 state customer regulated_distribution_division
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of customers serviced | customer	3
Number of regulated distribution divisions | regulated_distribution_division	6
Number of states with service areas | state	8

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Unaudited Financial Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2020
Regulatory Asset [Line Items]
Regulatory assets	$ 2,486,682		$ 414,641
Regulatory Liabilities [Line Items]
Regulatory liabilities	$ 1,447,349		1,367,013
Effective income tax rate	19.80%	22.10%
Regulatory excess deferred taxes
Regulatory Liabilities [Line Items]
Regulatory liabilities	$ 702,393		718,651
Regulatory excess deferred taxes | Other Current Liabilities
Regulatory Liabilities [Line Items]
Regulatory liabilities	$ 62,900		20,900
Regulatory excess deferred taxes | Other Current Liabilities | Minimum
Regulatory Liabilities [Line Items]
Return basis, term	15 years
Regulatory excess deferred taxes | Other Current Liabilities | Maximum
Regulatory Liabilities [Line Items]
Return basis, term	69 years
Regulatory cost of removal obligation
Regulatory Liabilities [Line Items]
Regulatory liabilities	$ 531,625		531,096
Deferred gas costs
Regulatory Liabilities [Line Items]
Regulatory liabilities	122,864		19,985
Asset retirement obligation
Regulatory Liabilities [Line Items]
Regulatory liabilities	20,348		20,348
APT annual adjustment mechanism
Regulatory Liabilities [Line Items]
Regulatory liabilities	44,291		57,379
Other
Regulatory Liabilities [Line Items]
Regulatory liabilities	25,828		19,554
Pension and postretirement benefit costs
Regulatory Asset [Line Items]
Regulatory assets	143,685		149,089
Infrastructure mechanisms
Regulatory Asset [Line Items]
Regulatory assets	189,154		183,943
Winter Storm Uri incremental costs
Regulatory Asset [Line Items]
Regulatory assets	2,093,534		0
Deferred gas costs
Regulatory Asset [Line Items]
Regulatory assets	19,636		40,593
Recoverable loss on reacquired debt
Regulatory Asset [Line Items]
Regulatory assets	4,165		4,894
Deferred pipeline record collection costs
Regulatory Asset [Line Items]
Regulatory assets	30,415		29,839
Other
Regulatory Asset [Line Items]
Regulatory assets	$ 6,093		$ 6,283

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Segment Information (Details) $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2021 USD ($) state	Dec. 31, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Mar. 31, 2021 USD ($) state	Mar. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)
Segment Reporting Information [Line Items]
Number of states with service areas | state	8				8
Segment Reporting Information Profit Loss [Abstract]
Operating revenues	$ 1,319,073		$ 977,665		$ 2,233,553	$ 1,853,228
Purchased gas cost	573,809		317,883		862,069	614,751
Operation and maintenance expense	156,375		147,824		295,018	300,069
Depreciation and amortization expense	118,636		105,916		233,921	210,978
Taxes, other than income	88,449		74,604		161,901	143,211
Operating income	381,804		331,438		680,644	584,219
Other non-operating income (expense)	2,834		(2,989)		8,906	1,898
Interest charges	26,096		22,171		48,106	49,400
Income before income taxes	358,542		306,278		641,444	536,717
Income tax (benefit) expense	61,788		66,632		127,012	118,398
Net income	296,754	$ 217,678	239,646	$ 178,673	514,432	418,319
Capital expenditures	388,919		465,551		845,728	994,737
Segment Reporting Information, Balance Sheet [Abstract]
Property, plant and equipment, net	14,039,588				14,039,588		$ 13,355,347
Total assets	19,408,810				19,408,810		15,359,032
Distribution
Segment Reporting Information Profit Loss [Abstract]
Operating revenues	1,281,826		932,296		2,157,713	1,760,136
Pipeline and Storage
Segment Reporting Information Profit Loss [Abstract]
Operating revenues	37,247		45,369		75,840	93,092
Operating Segments | Distribution
Segment Reporting Information Profit Loss [Abstract]
Operating revenues	1,282,674		933,005		2,159,324	1,761,509
Purchased gas cost	691,147		418,935		1,102,219	816,493
Operation and maintenance expense	123,990		115,851		232,792	230,203
Depreciation and amortization expense	85,667		76,265		168,537	152,339
Taxes, other than income	78,615		68,413		142,967	128,656
Operating income	303,255		253,541		512,809	433,818
Other non-operating income (expense)	(760)		(5,191)		75	(3,237)
Interest charges	14,017		10,797		24,729	27,159
Income before income taxes	288,478		237,553		488,155	403,422
Income tax (benefit) expense	56,142		50,489		102,127	86,601
Net income	232,336		187,064		386,028	316,821
Capital expenditures	296,184		373,313		602,200	777,560
Segment Reporting Information, Balance Sheet [Abstract]
Property, plant and equipment, net	10,465,072				10,465,072		9,944,978
Total assets	18,661,545				18,661,545		14,578,176
Operating Segments | Pipeline and Storage
Segment Reporting Information Profit Loss [Abstract]
Operating revenues	154,168		146,237		313,881	294,413
Purchased gas cost	113		202		(1,131)	301
Operation and maintenance expense	32,703		32,296		62,859	70,517
Depreciation and amortization expense	32,969		29,651		65,384	58,639
Taxes, other than income	9,834		6,191		18,934	14,555
Operating income	78,549		77,897		167,835	150,401
Other non-operating income (expense)	3,594		2,202		8,831	5,135
Interest charges	12,079		11,374		23,377	22,241
Income before income taxes	70,064		68,725		153,289	133,295
Income tax (benefit) expense	5,646		16,143		24,885	31,797
Net income	64,418		52,582		128,404	101,498
Capital expenditures	92,735		92,238		243,528	217,177
Segment Reporting Information, Balance Sheet [Abstract]
Property, plant and equipment, net	3,574,516				3,574,516		3,410,369
Total assets	3,799,037				3,799,037		3,647,907
Eliminations
Segment Reporting Information Profit Loss [Abstract]
Operating revenues	(117,769)		(101,577)		(239,652)	(202,694)
Purchased gas cost	(117,451)		(101,254)		(239,019)	(202,043)
Operation and maintenance expense	(318)		(323)		(633)	(651)
Depreciation and amortization expense	0		0		0	0
Taxes, other than income	0		0		0	0
Operating income	0		0		0	0
Other non-operating income (expense)	0		0		0	0
Interest charges	0		0		0	0
Income before income taxes	0		0		0	0
Income tax (benefit) expense	0		0		0	0
Net income	0		0		0	0
Capital expenditures	0		0		0	0
Segment Reporting Information, Balance Sheet [Abstract]
Property, plant and equipment, net	0				0		0
Total assets	(3,051,772)				(3,051,772)		$ (2,867,051)
Eliminations | Distribution
Segment Reporting Information Profit Loss [Abstract]
Operating revenues	848		709		1,611	1,373
Eliminations | Pipeline and Storage
Segment Reporting Information Profit Loss [Abstract]
Operating revenues	$ 116,921		$ 100,868		$ 238,041	$ 201,321

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2021	Mar. 31, 2020
Basic Earnings Per Share
Net income	$ 296,754	$ 217,678	$ 239,646	$ 178,673	$ 514,432	$ 418,319
Less: Income allocated to participating securities	199		178		350	314
Income available to common shareholders	$ 296,555		$ 239,468		$ 514,082	$ 418,005
Basic weighted average shares outstanding (in shares)	129,161		122,916		128,098	122,015
Net income per share - Basic (USD per share)	$ 2.30		$ 1.95		$ 4.01	$ 3.43
Diluted Earnings Per Share
Income available to common shareholders	$ 296,555		$ 239,468		$ 514,082	$ 418,005
Effect of dilutive shares	0		0		0	0
Income available to common shareholders	$ 296,555		$ 239,468		$ 514,082	$ 418,005
Basic weighted average shares outstanding (in shares)	129,161		122,916		128,098	122,015
Dilutive shares (in shares)	3		81		2	164
Diluted weighted average shares outstanding (in shares)	129,164		122,997		128,100	122,179
Net income per share - Diluted (USD per share)	$ 2.30		$ 1.95		$ 4.01	$ 3.42

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Revenue and Accounts Receivable - Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Total operating revenues	$ 1,319,073	$ 977,665	$ 2,233,553	$ 1,853,228
Distribution
Disaggregation of Revenue [Line Items]
Total operating revenues	1,281,826	932,296	$ 2,157,713	1,760,136
Regulatory mechanism threshold (in percent)			75.00%
Pipeline and Storage
Disaggregation of Revenue [Line Items]
Total operating revenues	37,247	45,369	$ 75,840	93,092
Operating Segments | Distribution
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	1,305,493	902,874	2,174,207	1,737,637
Alternative revenue program revenues	(23,313)	29,638	(15,872)	22,887
Other revenues	494	493	989	985
Total operating revenues	1,282,674	933,005	2,159,324	1,761,509
Operating Segments | Distribution | Gas sales revenues:
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	1,271,195	867,384	2,109,746	1,668,721
Operating Segments | Distribution | Gas sales revenues: | Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	893,720	596,315	1,485,554	1,148,391
Operating Segments | Distribution | Gas sales revenues: | Commercial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	326,182	230,779	535,129	442,093
Operating Segments | Distribution | Gas sales revenues: | Industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	31,066	25,628	55,774	50,553
Operating Segments | Distribution | Gas sales revenues: | Public authority and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	20,227	14,662	33,289	27,684
Operating Segments | Distribution | Transportation revenues
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	30,973	28,504	58,740	55,144
Operating Segments | Distribution | Miscellaneous revenues
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	3,325	6,986	5,721	13,772
Operating Segments | Pipeline and Storage
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	155,443	156,083	325,352	313,248
Alternative revenue program revenues	(1,275)	(9,846)	(11,471)	(18,835)
Other revenues	0	0	0	0
Total operating revenues	154,168	146,237	313,881	294,413
Operating Segments | Pipeline and Storage | Gas sales revenues:
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | Pipeline and Storage | Gas sales revenues: | Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | Pipeline and Storage | Gas sales revenues: | Commercial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | Pipeline and Storage | Gas sales revenues: | Industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | Pipeline and Storage | Gas sales revenues: | Public authority and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
Operating Segments | Pipeline and Storage | Transportation revenues
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	151,565	154,748	316,326	306,758
Operating Segments | Pipeline and Storage | Miscellaneous revenues
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 3,878	$ 1,335	$ 9,026	$ 6,490

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Revenue and Accounts Receivable - Allowance for Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
Percent of customers excluded		78.00%
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 35,089	$ 29,949
Current period provisions	11,532	18,469
Write-offs charged against allowance	(2,381)	(4,669)
Recoveries of amounts previously written off	440	931
Ending balance	$ 44,680	$ 44,680

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Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 09, 2021	Oct. 01, 2020	Sep. 30, 2020
Debt Instrument [Line Items]
Long-term debt	$ 7,360,000			$ 4,560,000
Finance lease obligations	8,612			8,631
Total long-term debt	7,368,612			4,568,631
Original issue discount on unsecured senior notes and debentures	3,030			583
Debt issuance cost	49,001			36,104
Current maturities	177			165
Long-term debt, noncurrent	$ 7,316,404			4,531,779
Unsecured 0.625% Senior Notes, due 2023
Debt Instrument [Line Items]
Interest rate	0.625%	0.625%
Long-term debt	$ 1,100,000			0
Unsecured 3.00% Senior Notes, due 2027
Debt Instrument [Line Items]
Interest rate	3.00%
Long-term debt	$ 500,000			500,000
Unsecured 2.625% Senior Notes, due 2029
Debt Instrument [Line Items]
Interest rate	2.625%
Long-term debt	$ 300,000			300,000
Unsecured 1.50% Senior Notes, due 2031
Debt Instrument [Line Items]
Interest rate	1.50%		1.50%
Long-term debt	$ 600,000			0
Unsecured 5.95% Senior Notes, due 2034
Debt Instrument [Line Items]
Interest rate	5.95%
Long-term debt	$ 200,000			200,000
Unsecured 5.50% Senior Notes, due 2041
Debt Instrument [Line Items]
Interest rate	5.50%
Long-term debt	$ 400,000			400,000
Unsecured 4.15% Senior Notes, due 2043
Debt Instrument [Line Items]
Interest rate	4.15%
Long-term debt	$ 500,000			500,000
Unsecured 4.125% Senior Notes, due 2044
Debt Instrument [Line Items]
Interest rate	4.125%
Long-term debt	$ 750,000			750,000
Unsecured 4.30% Senior Notes, due 2048
Debt Instrument [Line Items]
Interest rate	4.30%
Long-term debt	$ 600,000			600,000
Unsecured 4.125% Senior Notes, due 2049
Debt Instrument [Line Items]
Interest rate	4.125%
Long-term debt	$ 450,000			450,000
Unsecured 3.375% Senior Notes, due 2049
Debt Instrument [Line Items]
Interest rate	3.375%
Long-term debt	$ 500,000			500,000
Floating-rate term loan, due April 2022
Debt Instrument [Line Items]
Long-term debt	200,000			200,000
Floating-rate Senior Notes, due 2023
Debt Instrument [Line Items]
Long-term debt	$ 1,100,000			0
Medium-term note Series A, 1995-1, 6.67%, due 2025
Debt Instrument [Line Items]
Interest rate	6.67%
Long-term debt	$ 10,000			10,000
Unsecured 6.75% Debentures, due 2028
Debt Instrument [Line Items]
Interest rate	6.75%
Long-term debt	$ 150,000			$ 150,000

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Debt - Narrative (Details)				6 Months Ended
	Mar. 31, 2021 USD ($) credit_facility	Mar. 09, 2021 USD ($)	Oct. 01, 2020 USD ($)	Mar. 31, 2021 USD ($) credit_facility	Mar. 30, 2021 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)
Line Of Credit Facility [Line Items]
Proceeds from issuance of long-term debt				$ 2,797,346,000		$ 799,450,000
Maximum debt-to-total-capitalization ratio				70.00%
Debt-to-total-capitalization ratio	0.49			0.49
Minimum
Line Of Credit Facility [Line Items]
Equity-to-total-capitalization ratio				50.00%
Outstanding indebtedness	$ 15,000,000			$ 15,000,000
Maximum
Line Of Credit Facility [Line Items]
Equity-to-total-capitalization ratio				60.00%
Outstanding indebtedness	100,000,000			$ 100,000,000
Revolving Credit Facility
Line Of Credit Facility [Line Items]
Maximum borrowing capacity	$ 2,500,000,000			$ 2,500,000,000
Number of credit facilities | credit_facility	4			4
Senior Notes Due 2023
Line Of Credit Facility [Line Items]
Debt instrument, face amount		$ 2,200,000,000
Proceeds net of issuance cost		$ 2,200,000,000
Redemption price (in percent)		100.00%
Unsecured 0.625% Senior Notes, due 2023
Line Of Credit Facility [Line Items]
Debt instrument, face amount		$ 1,100,000,000
Interest rate	0.625%	0.625%		0.625%
Effective Interest Rate		0.834%
Floating-rate Senior Notes, due 2023
Line Of Credit Facility [Line Items]
Debt instrument, face amount		$ 1,100,000,000
Unsecured 1.50% Senior Notes, due 2031
Line Of Credit Facility [Line Items]
Debt instrument, face amount			$ 600,000,000
Interest rate	1.50%		1.50%	1.50%
Effective Interest Rate			1.71%
Proceeds from issuance of long-term debt			$ 592,300,000
Five Year Unsecured Revolving Credit Agreement
Line Of Credit Facility [Line Items]
Outstanding commercial paper	$ 0			$ 0			$ 0
Five Year Unsecured Revolving Credit Agreement | Commercial Paper
Line Of Credit Facility [Line Items]
Maximum borrowing capacity	$ 1,500,000,000			1,500,000,000	$ 1,500,000,000
Debt agreement term	5 years				5 years
Accordion feature	$ 250,000,000			250,000,000
Maximum borrowing capacity post accordion feature	1,750,000,000			1,750,000,000
$600 Million Revolving Credit Facility | Revolving Credit Facility
Line Of Credit Facility [Line Items]
Maximum borrowing capacity					$ 600,000,000
Debt agreement term					364 days
$900 Million Revolving Credit Facility | Revolving Credit Facility
Line Of Credit Facility [Line Items]
Maximum borrowing capacity	$ 900,000,000			900,000,000
Debt agreement term	3 years
Accordion feature	$ 100,000,000			100,000,000
Maximum borrowing capacity post accordion feature	1,000,000,000.0			1,000,000,000.0
Outstanding borrowings	0			0
$50 Million Bank Loan Agreement | Line of Credit
Line Of Credit Facility [Line Items]
Maximum borrowing capacity	50,000,000			$ 50,000,000
Debt agreement term				364 days
Outstanding borrowings	0			$ 0
$50 Million Revolving Credit Facility
Line Of Credit Facility [Line Items]
Outstanding borrowings	0			0
$50 Million Revolving Credit Facility | Revolving Credit Facility
Line Of Credit Facility [Line Items]
Maximum borrowing capacity	50,000,000			$ 50,000,000
Debt agreement term				364 days
Remaining borrowing capacity	$ 44,400,000			$ 44,400,000
Base Rate | Five Year Unsecured Revolving Credit Agreement | Commercial Paper | Minimum
Line Of Credit Facility [Line Items]
Interest rate spread	0.00%
Base Rate | Five Year Unsecured Revolving Credit Agreement | Commercial Paper | Maximum
Line Of Credit Facility [Line Items]
Interest rate spread	0.25%
Base Rate | $900 Million Revolving Credit Facility | Revolving Credit Facility | Minimum
Line Of Credit Facility [Line Items]
Interest rate spread	0.00%
Base Rate | $900 Million Revolving Credit Facility | Revolving Credit Facility | Maximum
Line Of Credit Facility [Line Items]
Interest rate spread	0.25%
LIBOR | Floating-rate Senior Notes, due 2023
Line Of Credit Facility [Line Items]
Interest rate spread		0.38%
LIBOR | Five Year Unsecured Revolving Credit Agreement | Commercial Paper | Minimum
Line Of Credit Facility [Line Items]
Interest rate spread	0.75%
LIBOR | Five Year Unsecured Revolving Credit Agreement | Commercial Paper | Maximum
Line Of Credit Facility [Line Items]
Interest rate spread	1.25%
LIBOR | $900 Million Revolving Credit Facility | Revolving Credit Facility | Minimum
Line Of Credit Facility [Line Items]
Interest rate spread	0.75%
LIBOR | $900 Million Revolving Credit Facility | Revolving Credit Facility | Maximum
Line Of Credit Facility [Line Items]
Interest rate spread	1.25%

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Shareholders' Equity - Components of Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2021	Mar. 31, 2020
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock outstanding, beginning balance (in shares)		125,882,477			125,882,477
Shareholders' equity, beginning balance	$ 7,213,156	$ 6,791,203	$ 6,127,775	$ 5,750,223	$ 6,791,203	$ 5,750,223
Net income	296,754	217,678	239,646	178,673	514,432	418,319
Other comprehensive income (loss)	137,939	60,121	890	1,052	$ 198,060	1,942
Cash dividends	(80,325)	(79,023)	(70,520)	(69,557)
Public and other stock offerings	248,960	220,009	3,096	263,272
Stock-based compensation plans	$ 4,441	3,168	3,528	4,112
Common stock outstanding, ending balance (in shares)	130,667,109				130,667,109
Shareholders' equity, ending balance	$ 7,820,925	$ 7,213,156	$ 6,304,415	$ 6,127,775	$ 7,820,925	$ 6,304,415
Cash dividends per share (USD per share)	$ 0.625	$ 0.625	$ 0.575	$ 0.575	$ 1.25	$ 1.15
Common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock outstanding, beginning balance (in shares)	128,152,961	125,882,477	122,262,403	119,338,925	125,882,477	119,338,925
Shareholders' equity, beginning balance	$ 641	$ 629	$ 611	$ 597	$ 629	$ 597
Public and other stock offerings (in shares)	2,498,026	2,126,118	38,662	2,758,929
Public and other stock offerings	$ 12	$ 11	$ 1	$ 13
Stock-based compensation plans (in shares)	16,122	144,366	7,660	164,549
Stock-based compensation plans	$ 0	$ 1	$ 0	$ 1
Common stock outstanding, ending balance (in shares)	130,667,109	128,152,961	122,308,725	122,262,403	130,667,109	122,308,725
Shareholders' equity, ending balance	$ 653	$ 641	$ 612	$ 611	$ 653	$ 612
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shareholders' equity, beginning balance	4,600,314	4,377,149	3,979,564	3,712,194	4,377,149	3,712,194
Public and other stock offerings	248,948	219,998	3,095	263,259
Stock-based compensation plans	4,441	3,167	3,528	4,111
Shareholders' equity, ending balance	4,853,703	4,600,314	3,986,187	3,979,564	4,853,703	3,986,187
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shareholders' equity, beginning balance	2,532	(57,589)	(113,531)	(114,583)	(57,589)	(114,583)
Other comprehensive income (loss)	137,939	60,121	890	1,052
Shareholders' equity, ending balance	140,471	2,532	(112,641)	(113,531)	140,471	(112,641)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shareholders' equity, beginning balance	2,609,669	2,471,014	2,261,131	2,152,015	2,471,014	2,152,015
Net income	296,754	217,678	239,646	178,673
Cash dividends	(80,325)	(79,023)	(70,520)	(69,557)
Shareholders' equity, ending balance	$ 2,826,098	$ 2,609,669	$ 2,430,257	$ 2,261,131	$ 2,826,098	$ 2,430,257

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Shareholders' Equity - Narrative (Details) - USD ($)	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Feb. 11, 2020
Class of Stock [Line Items]
Net proceeds from equity offering	$ 460,678,000	$ 258,047,000
Net proceeds available	$ 115,600,000
Forward Price (dollars per share)	$ 90.96
Shelf Registration Statement
Class of Stock [Line Items]
Debt and equity securities authorized for issuance			$ 4,000,000,000.0
Debt and equity securities authorized for issuance value remaining	$ 200,000,000
At-The-Market
Class of Stock [Line Items]
Forward sales equity agreement (in shares)	2,472,912
Stock issued during period, new issues (in shares)	4,537,669
Net proceeds from equity offering	$ 460,700,000
Equity available for issuance	313,000,000
Net proceeds available	$ 238,600,000

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Shareholders' Equity - Schedule of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2021	Mar. 31, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Shareholders' equity, beginning balance	$ 7,213,156	$ 6,791,203	$ 6,127,775	$ 5,750,223	$ 6,791,203	$ 5,750,223
Other comprehensive income (loss) before reclassifications					195,777	(163)
Amounts reclassified from accumulated other comprehensive income					2,283	2,105
Net current-period other comprehensive income (loss)	137,939	60,121	890	1,052	198,060	1,942
Shareholders' equity, ending balance	7,820,925	7,213,156	6,304,415	6,127,775	7,820,925	6,304,415
Available- for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Shareholders' equity, beginning balance		238		132	238	132
Other comprehensive income (loss) before reclassifications					(129)	(163)
Amounts reclassified from accumulated other comprehensive income					0	(1)
Net current-period other comprehensive income (loss)					(129)	(164)
Shareholders' equity, ending balance	109		(32)		109	(32)
Interest Rate Agreement Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Shareholders' equity, beginning balance		(57,827)		(114,715)	(57,827)	(114,715)
Other comprehensive income (loss) before reclassifications					195,906	0
Amounts reclassified from accumulated other comprehensive income					2,283	2,106
Net current-period other comprehensive income (loss)					198,189	2,106
Shareholders' equity, ending balance	140,362		(112,609)		140,362	(112,609)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Shareholders' equity, beginning balance	2,532	(57,589)	(113,531)	(114,583)	(57,589)	(114,583)
Net current-period other comprehensive income (loss)	137,939	60,121	890	1,052
Shareholders' equity, ending balance	$ 140,471	$ 2,532	$ (112,641)	$ (113,531)	$ 140,471	$ (112,641)

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Interim Pension and Other Postretirement Benefit Plan Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Contribution to postretirement medical plans			$ 8,700
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 4,613	$ 4,652	9,225	$ 9,305
Interest cost	5,028	5,843	10,056	11,686
Expected return on assets	(6,978)	(7,079)	(13,956)	(14,158)
Amortization of prior service cost (credit)	(58)	(58)	(116)	(116)
Amortization of actuarial (gain) loss	3,171	3,242	6,343	6,483
Net periodic pension cost	5,776	6,600	11,552	13,200
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	4,306	3,366	8,612	6,733
Interest cost	2,660	2,653	5,320	5,306
Expected return on assets	(2,614)	(2,625)	(5,228)	(5,249)
Amortization of prior service cost (credit)	43	43	86	87
Amortization of actuarial (gain) loss	0	(334)	0	(669)
Net periodic pension cost	4,395	$ 3,103	8,790	$ 6,208
Minimum | Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected future contributions	15,000		15,000
Maximum | Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected future contributions	$ 25,000		$ 25,000

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Commitments and Contingencies (Details) - USD ($)		6 Months Ended
	Feb. 08, 2021	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Self-insurance retention expense		$ 1,000,000.0
Penalties incurred	$ 1,600,000

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Financial Instruments - Narrative (Details)	3 Months Ended		6 Months Ended
	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2021 USD ($) Bcf	Mar. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)
Derivative [Line Items]
Contract netting	$ 0		$ 0		$ 0
Cash collateral	0		0		$ 0
Net gain (loss) on settled interest rate agreements	(1,500,000)	$ (1,400,000)	(2,900,000)	$ (2,700,000)
Net realized gain (loss) in AOCI	$ (112,200,000)		$ (112,200,000)
Gas Purchases | Not Designated as Hedging Instrument | Commodity contracts
Derivative [Line Items]
Hedging percent	39.00%		39.00%
Energy measure | Bcf			15.8
Gas Purchases | Not Designated as Hedging Instrument | Commodity contracts | Long
Derivative [Line Items]
Energy measure | Bcf			8.58
Minimum | Gas Purchases | Not Designated as Hedging Instrument | Commodity contracts
Derivative [Line Items]
Hedging percent	25.00%		25.00%
Maximum | Gas Purchases | Not Designated as Hedging Instrument | Commodity contracts
Derivative [Line Items]
Hedging percent	50.00%		50.00%

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Financial Instruments - Forward Starting Derivatives (Details) - Designated as Hedging Instrument - Forward Interest Rate Swap	Mar. 31, 2021 USD ($)
Derivative [Line Items]
Amount Hedged	$ 1,050,000,000
Unsecured Senior Notes In Fiscal 2022
Derivative [Line Items]
Amount Hedged	$ 450,000,000
Effective Interest Rate	1.33%
Unsecured Senior Notes In Fiscal 2023
Derivative [Line Items]
Amount Hedged	$ 300,000,000
Effective Interest Rate	1.36%
Unsecured Senior Notes In Fiscal 2025
Derivative [Line Items]
Amount Hedged	$ 300,000,000
Effective Interest Rate	1.35%

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Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Derivatives Fair Value [Line Items]
Net Financial Instruments, Assets	$ 327,158	$ 80,678
Net Financial Instruments, Liabilities	(62)	(2,015)
Designated as Hedging Instrument
Derivatives Fair Value [Line Items]
Gross Financial Instruments, Assets	325,584	73,055
Gross Financial Instruments, Liabilities	0	0
Designated as Hedging Instrument | Other Current Assets | Interest rate contracts
Derivatives Fair Value [Line Items]
Gross Financial Instruments, Assets	131,798
Designated as Hedging Instrument | Other Current Liabilities | Interest rate contracts
Derivatives Fair Value [Line Items]
Gross Financial Instruments, Liabilities	0
Designated as Hedging Instrument | Deferred Charges and Other Assets | Interest rate contracts
Derivatives Fair Value [Line Items]
Gross Financial Instruments, Assets	193,786	73,055
Designated as Hedging Instrument | Deferred Credits and Other Liabilities | Interest rate contracts
Derivatives Fair Value [Line Items]
Gross Financial Instruments, Liabilities	0	0
Not Designated as Hedging Instrument
Derivatives Fair Value [Line Items]
Gross Financial Instruments, Assets	1,574	7,623
Gross Financial Instruments, Liabilities	(62)	(2,015)
Not Designated as Hedging Instrument | Other Current Assets | Commodity contracts
Derivatives Fair Value [Line Items]
Gross Financial Instruments, Assets	1,574	5,687
Not Designated as Hedging Instrument | Other Current Liabilities | Commodity contracts
Derivatives Fair Value [Line Items]
Gross Financial Instruments, Liabilities	$ (62)	(2,015)
Not Designated as Hedging Instrument | Deferred Charges and Other Assets | Commodity contracts
Derivatives Fair Value [Line Items]
Gross Financial Instruments, Assets		1,936
Not Designated as Hedging Instrument | Deferred Credits and Other Liabilities | Commodity contracts
Derivatives Fair Value [Line Items]
Gross Financial Instruments, Liabilities		$ 0

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Financial Instruments - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Increase in fair value:
Interest rate agreements	$ 136,864	$ 0	$ 195,906	$ 0
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Interest rate agreements	1,141	1,053	2,283	2,106
Total other comprehensive income (loss) from hedging, net of tax	$ 138,005	$ 1,053	$ 198,189	$ 2,106

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Financial Instruments - Schedule Of Expected Deferred Gains (Losses) Recognition (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2021 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Next twelve months	$ (4,566)
Thereafter	(107,653)
Total	$ (112,219)

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Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)	Mar. 31, 2021	Sep. 30, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Netting and Cash Collateral	$ 0	$ 0
Financial instruments net assets	327,158,000	80,678,000
Debt and equity securities	109,492,000	103,952,000
Total assets	436,650,000	184,630,000
Netting and Cash Collateral	0	0
Financial instruments net liability	62,000	2,015,000
Registered investment companies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity Securities	34,501,000	37,831,000
Bond mutual funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity Securities	34,131,000	29,166,000
Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities	35,755,000	32,900,000
Money market funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity Securities	5,105,000	4,055,000
Fair Value Inputs Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Financial instruments gross assets	0	0
Debt and equity securities	68,632,000	66,997,000
Total assets	68,632,000	66,997,000
Financial instruments gross liability	0	0
Fair Value Inputs Level 1 | Registered investment companies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity Securities	34,501,000	37,831,000
Fair Value Inputs Level 1 | Bond mutual funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity Securities	34,131,000	29,166,000
Fair Value Inputs Level 1 | Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities	0	0
Fair Value Inputs Level 1 | Money market funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity Securities	0	0
Fair Value Inputs Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Financial instruments gross assets	327,158,000	80,678,000
Debt and equity securities	40,860,000	36,955,000
Total assets	368,018,000	117,633,000
Financial instruments gross liability	62,000	2,015,000
Fair Value Inputs Level 2 | Registered investment companies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity Securities	0	0
Fair Value Inputs Level 2 | Bond mutual funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity Securities	0	0
Fair Value Inputs Level 2 | Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities	35,755,000	32,900,000
Fair Value Inputs Level 2 | Money market funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity Securities	5,105,000	4,055,000
Fair Value Inputs Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Financial instruments gross assets	0	0
Debt and equity securities	0	0
Total assets	0	0
Financial instruments gross liability	0	0
Fair Value Inputs Level 3 | Registered investment companies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity Securities	0	0
Fair Value Inputs Level 3 | Bond mutual funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity Securities	0	0
Fair Value Inputs Level 3 | Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities	0	0
Fair Value Inputs Level 3 | Money market funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity Securities	$ 0	$ 0

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Fair Value Measurements - Narrative (Details) - USD ($)	Mar. 31, 2021	Sep. 30, 2020
Schedule of Available For Sale Securities [Abstract]
Allowance for credit losses	$ 0
Cost basis	$ 35,600,000	$ 32,600,000

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Fair Value Measurements - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Carrying Amount	$ 7,360,000	$ 4,560,000
Fair Value	$ 7,828,415	$ 5,597,183

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Winter Storm Uri (Details) - USD ($)	1 Months Ended	6 Months Ended
	Feb. 28, 2021	Mar. 31, 2021	Mar. 09, 2021	Sep. 30, 2020
Unusual or Infrequent Item, or Both [Line Items]
Aggregate natural gas purchases	$ 2,300,000,000
Regulatory assets		$ 2,486,682,000		$ 414,641,000
Winter Storm Uri
Unusual or Infrequent Item, or Both [Line Items]
Increase (Decrease) Net Operating Loss Carryforwards		469,400,000
Increase (Decrease) in Deferred Income Taxes		469,400,000
Federal net operating loss carryforward		813,100,000
State net operating loss carryforward		57,500,000
State net operating loss carryforward, federal effects		15,300,000
State tax credit carryforwards		1,800,000
State tax credit carryforwards, federal effects		500,000
Winter Storm Uri incremental costs
Unusual or Infrequent Item, or Both [Line Items]
Regulatory assets		2,093,534,000		$ 0
Winter Storm Uri incremental costs | Winter Storm Uri
Unusual or Infrequent Item, or Both [Line Items]
Regulatory assets		2,100,000,000
Winter Storm Uri incremental costs | Kansas | Winter Storm Uri
Unusual or Infrequent Item, or Both [Line Items]
Regulatory assets		76,700,000
Winter Storm Uri incremental costs | Texas | Winter Storm Uri
Unusual or Infrequent Item, or Both [Line Items]
Regulatory assets		$ 2,016,800,000
Senior Notes Due 2023
Unusual or Infrequent Item, or Both [Line Items]
Debt instrument, face amount			$ 2,200,000,000