Segment Information

12 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

As of September 30, 2024, we manage and review our consolidated operations through the following two 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.

Our determination of reportable segments considers the strategic operating units under which we manage sales of various products and services to customers. Although our distribution segment operations are geographically dispersed, they are aggregated and reported as a single segment as each natural gas distribution division has similar economic characteristics. In addition, because the pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana have similar economic characteristics, they have been aggregated and reported as a single segment.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. We evaluate performance based on net income or loss of the respective operating units. We allocate interest and pension expense to the pipeline and storage segment; however, there is no debt or pension liability recorded on the pipeline and storage segment balance sheet. All material intercompany transactions have been eliminated; however, we have not eliminated intercompany profits when such amounts are probable of recovery under the affiliates’ rate regulation process. Income taxes are allocated to each segment as if each segment’s income taxes were calculated on a separate return basis.

Income statements and capital expenditures by segment are shown in the following tables.

	Year Ended September 30, 2024
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	3,912,134	$	253,053	$	—	$	4,165,187
Intersegment revenues	3,007		684,976		(687,983)		—
Total operating revenues	3,915,141		938,029		(687,983)		4,165,187
Purchased gas cost	1,620,515		146		(686,968)		933,693
Operation and maintenance expense	601,370		218,782		(1,015)		819,137
Depreciation and amortization expense	491,982		177,990		—		669,972
Taxes, other than income	346,840		40,183		—		387,023
Operating income	854,434		500,928		—		1,355,362
Other non-operating income	30,106		40,940		—		71,046
Interest charges	117,086		73,546		—		190,632
Income before income taxes	767,454		468,322		—		1,235,776
Income tax expense	96,041		96,840		—		192,881
Net income	$	671,413	$	371,482	$	—	$	1,042,895
Capital expenditures	$	2,249,280	$	687,844	$	—	$	2,937,124

	Year Ended September 30, 2023
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	4,096,661	$	178,696	$	—	$	4,275,357
Intersegment revenues	3,029		606,478		(609,507)		—
Total operating revenues	4,099,690		785,174		(609,507)		4,275,357
Purchased gas cost	2,061,920		(1,220)		(608,527)		1,452,173
Operation and maintenance expense	565,179		200,707		(980)		764,906
Depreciation and amortization expense	434,721		169,606		—		604,327
Taxes, other than income	345,244		41,560		—		386,804
Operating income	692,626		374,521		—		1,067,147
Other non-operating income	24,988		44,787		—		69,775
Interest charges	77,185		60,096		—		137,281
Income before income taxes	640,429		359,212		—		999,641
Income tax expense	60,032		53,747		—		113,779
Net income	$	580,397	$	305,465	$	—	$	885,862
Capital expenditures	$	1,927,125	$	878,848	$	—	$	2,805,973

	Year Ended September 30, 2022
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	4,031,936	$	169,726	$	—	$	4,201,662
Intersegment revenues	3,258		523,934		(527,192)		—
Total operating revenues	4,035,194		693,660		(527,192)		4,201,662
Purchased gas cost	2,210,302		(1,583)		(526,063)		1,682,656
Operation and maintenance expense	518,443		192,847		(1,129)		710,161
Depreciation and amortization expense	387,858		147,797		—		535,655
Taxes, other than income	314,046		38,162		—		352,208
Operating income	604,545		316,437		—		920,982
Other non-operating income	6,946		26,791		—		33,737
Interest charges	49,921		52,890		—		102,811
Income before income taxes	561,570		290,338		—		851,908
Income tax expense	39,593		37,917		—		77,510
Net income	$	521,977	$	252,421	$	—	$	774,398
Capital expenditures	$	1,675,798	$	768,622	$	—	$	2,444,420

The following table summarizes our revenues from external parties, excluding intersegment revenues, by products and services for the fiscal years ended September 30.

	2024		2023		2022
	(In thousands)
Distribution revenues:
Gas sales revenues:
Residential	$	2,583,681	$	2,638,689	$	2,492,116
Commercial	1,016,675		1,112,236		1,126,189
Industrial	100,596		151,970		224,632
Public authority and other	52,180		62,476		66,956
Total gas sales revenues	3,753,132		3,965,371		3,909,893
Transportation revenues	132,608		119,371		110,905
Other gas revenues	26,394		11,919		11,138
Total distribution revenues	3,912,134		4,096,661		4,031,936
Pipeline and storage revenues	253,053		178,696		169,726
Total operating revenues	$	4,165,187	$	4,275,357	$	4,201,662

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

	September 30, 2024
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Property, plant and equipment, net	$	16,372,659	$	5,831,708	$	—	$	22,204,367
Total assets	$	24,328,877	$	6,181,558	$	(5,315,970)	$	25,194,465

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