Segment Information

9 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

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

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

•The pipeline and storage segment is comprised primarily of the regulated 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 nine months ended June 30, 2024 and 2023 by segment are presented in the following tables:

	Three Months Ended June 30, 2024
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	632,446	$	69,103	$	—	$	701,549
Intersegment revenues	765		181,577		(182,342)		—
Total operating revenues	633,211		250,680		(182,342)		701,549
Purchased gas cost	179,510		(19)		(182,084)		(2,593)
Operation and maintenance expense	153,140		58,427		(258)		211,309
Depreciation and amortization expense	122,912		43,915		—		166,827
Taxes, other than income	94,527		11,212		—		105,739
Operating income	83,122		137,145		—		220,267
Other non-operating income	11,452		8,446		—		19,898
Interest charges	22,550		18,610		—		41,160
Income before income taxes	72,024		126,981		—		199,005
Income tax expense	6,175		27,266		—		33,441
Net income	$	65,849	$	99,715	$	—	$	165,564
Capital expenditures	$	587,062	$	126,549	$	—	$	713,611

	Three Months Ended June 30, 2023
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	615,259	$	47,474	$	—	$	662,733
Intersegment revenues	808		160,751		(161,559)		—
Total operating revenues	616,067		208,225		(161,559)		662,733
Purchased gas cost	206,048		(194)		(161,304)		44,550
Operation and maintenance expense	138,351		56,953		(255)		195,049
Depreciation and amortization expense	107,809		42,917		—		150,726
Taxes, other than income	92,180		10,975		—		103,155
Operating income	71,679		97,574		—		169,253
Other non-operating income	6,695		9,475		—		16,170
Interest charges	16,146		15,188		—		31,334
Income before income taxes	62,228		91,861		—		154,089
Income tax expense	2,589		13,693		—		16,282
Net income	$	59,639	$	78,168	$	—	$	137,807
Capital expenditures	$	512,585	$	155,552	$	—	$	668,137

	Nine Months Ended June 30, 2024
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	3,325,459	$	181,784	$	—	$	3,507,243
Intersegment revenues	2,271		503,552		(505,823)		—
Total operating revenues	3,327,730		685,336		(505,823)		3,507,243
Purchased gas cost	1,464,815		825		(505,069)		960,571
Operation and maintenance expense	435,711		142,596		(754)		577,553
Depreciation and amortization expense	363,981		132,541		—		496,522
Taxes, other than income	273,430		28,805		—		302,235
Operating income	789,793		380,569		—		1,170,362
Other non-operating income	26,650		27,821		—		54,471
Interest charges	93,915		54,562		—		148,477
Income before income taxes	722,528		353,828		—		1,076,356
Income tax expense	92,550		74,927		—		167,477
Net income	$	629,978	$	278,901	$	—	$	908,879
Capital expenditures	$	1,659,217	$	469,920	$	—	$	2,129,137

	Nine Months Ended June 30, 2023
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	3,554,389	$	133,326	$	—	$	3,687,715
Intersegment revenues	2,314		445,952		(448,266)		—
Total operating revenues	3,556,703		579,278		(448,266)		3,687,715
Purchased gas cost	1,896,986		(431)		(447,545)		1,449,010
Operation and maintenance expense	426,173		149,329		(721)		574,781
Depreciation and amortization expense	319,783		125,280		—		445,063
Taxes, other than income	275,002		30,782		—		305,784
Operating income	638,759		274,318		—		913,077
Other non-operating income	20,934		33,833		—		54,767
Interest charges	60,405		45,059		—		105,464
Income before income taxes	599,288		263,092		—		862,380
Income tax expense	56,707		38,335		—		95,042
Net income	$	542,581	$	224,757	$	—	$	767,338
Capital expenditures	$	1,381,118	$	702,368	$	—	$	2,083,486

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

	June 30, 2024
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Net property, plant and equipment	$	15,855,074	$	5,567,044	$	—	$	21,422,118
Total assets	$	24,067,602	$	5,901,759	$	(5,078,110)	$	24,891,251

	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