Segment Information

6 Months Ended

Mar. 31, 2024

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, 2023.

Income statements and capital expenditures for the three and six months ended March 31, 2024 and 2023 by segment are presented in the following tables:

	Three Months Ended March 31, 2024
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	1,588,394	$	58,833	$	—	$	1,647,227
Intersegment revenues	787		164,654		(165,441)		—
Total operating revenues	1,589,181		223,487		(165,441)		1,647,227
Purchased gas cost	788,643		840		(165,188)		624,295
Operation and maintenance expense	154,956		45,196		(253)		199,899
Depreciation and amortization expense	121,384		43,703		—		165,087
Taxes, other than income	98,008		8,948		—		106,956
Operating income	426,190		124,800		—		550,990
Other non-operating income	9,359		7,328		—		16,687
Interest charges	36,784		18,658		—		55,442
Income before income taxes	398,765		113,470		—		512,235
Income tax expense	56,073		24,139		—		80,212
Net income	$	342,692	$	89,331	$	—	$	432,023
Capital expenditures	$	532,997	$	112,879	$	—	$	645,876

	Three Months Ended March 31, 2023
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	1,499,437	$	41,536	$	—	$	1,540,973
Intersegment revenues	773		142,888		(143,661)		—
Total operating revenues	1,500,210		184,424		(143,661)		1,540,973
Purchased gas cost	809,023		621		(143,433)		666,211
Operation and maintenance expense	151,353		43,591		(228)		194,716
Depreciation and amortization expense	106,310		42,007		—		148,317
Taxes, other than income	98,200		10,891		—		109,091
Operating income	335,324		87,314		—		422,638
Other non-operating income	7,465		9,941		—		17,406
Interest charges	21,420		15,950		—		37,370
Income before income taxes	321,369		81,305		—		402,674
Income tax expense	32,895		12,108		—		45,003
Net income	$	288,474	$	69,197	$	—	$	357,671
Capital expenditures	$	424,989	$	194,700	$	—	$	619,689

	Six Months Ended March 31, 2024
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	2,693,013	$	112,681	$	—	$	2,805,694
Intersegment revenues	1,506		321,975		(323,481)		—
Total operating revenues	2,694,519		434,656		(323,481)		2,805,694
Purchased gas cost	1,285,305		844		(322,985)		963,164
Operation and maintenance expense	282,571		84,169		(496)		366,244
Depreciation and amortization expense	241,069		88,626		—		329,695
Taxes, other than income	178,903		17,593		—		196,496
Operating income	706,671		243,424		—		950,095
Other non-operating income	15,198		19,375		—		34,573
Interest charges	71,365		35,952		—		107,317
Income before income taxes	650,504		226,847		—		877,351
Income tax expense	86,375		47,661		—		134,036
Net income	$	564,129	$	179,186	$	—	$	743,315
Capital expenditures	$	1,072,155	$	343,371	$	—	$	1,415,526

	Six Months Ended March 31, 2023
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	2,939,130	$	85,852	$	—	$	3,024,982
Intersegment revenues	1,506		285,201		(286,707)		—
Total operating revenues	2,940,636		371,053		(286,707)		3,024,982
Purchased gas cost	1,690,938		(237)		(286,241)		1,404,460
Operation and maintenance expense	287,822		92,376		(466)		379,732
Depreciation and amortization expense	211,974		82,363		—		294,337
Taxes, other than income	182,822		19,807		—		202,629
Operating income	567,080		176,744		—		743,824
Other non-operating income	14,239		24,358		—		38,597
Interest charges	44,259		29,871		—		74,130
Income before income taxes	537,060		171,231		—		708,291
Income tax expense	54,118		24,642		—		78,760
Net income	$	482,942	$	146,589	$	—	$	629,531
Capital expenditures	$	868,533	$	546,816	$	—	$	1,415,349

Balance sheet information at March 31, 2024 and September 30, 2023 by segment is presented in the following tables:

	March 31, 2024
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Net property, plant and equipment	$	15,346,551	$	5,468,012	$	—	$	20,814,563
Total assets	$	23,212,086	$	5,776,113	$	(4,983,559)	$	24,004,640

	September 30, 2023
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Net property, plant and equipment	$	14,402,578	$	5,204,005	$	—	$	19,606,583
Total assets	$	21,716,467	$	5,504,972	$	(4,704,471)	$	22,516,968