Atmos Energy (ATO) 10 Nov 222022 Q4 Earnings call transcript

Greetings, and welcome to the ATO Fourth Quarter Earnings Conference Call. At this time, all participants in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dan Meziere, Vice President of Investor Relations and Treasurer. sir. you, Thank

begin. You may

Officer; Maria. joining Good With thank you, Officer. Chief everyone, today President Senior and Chief morning, fiscal XXXX for Financial Executive and our President call. Kevin you Chris fourth Forsythe, are Vice Thank Akers, and and quarter me earnings

meaning Our statements our expectations, the we in please of reference earnings mind call within discussion our the in that Act. which and presentation, conference of might keep forward-looking contain prepared the release some and Exchange Act slide will discuss Securities future Securities

from statements results. such forward-looking to over and will on more Our projections are SEC could in Kevin. differences factors cause slide I differ turn materially filings. could the described and that, are fully actual call that XX outlined The material our With

you, morning, and Energy are We glad interest morning. your joined good and appreciate in us this Atmos you Dan, Thank everyone.

thoughts financial like on you served earnings thank this Day, a country. of As our take provide close key accomplishments, with share nearly reported results our opportunity $X.XX, teammates to our year fiscal our call later growth. Veterans own I Atmos update per some consecutive our the for begin additional which of who and in to you per today's around service. share in we pipeline of of we'll thank fiscal Chris to to your you some an earnings XXXX. represents of XXth Americans bravely and the with color will will Energy have forces review I provide the projects, tomorrow's XX XXXX about call. the part Thank approximately served XXX say to those would as Yesterday, and million who

XXXX, strategy will Energy safely provide effort foundation in for fiscal natural XXth I our Atmos over period, new see Over reliably, $XX fully XX operating all of the our of billion while of it of including Atmos over fiscal of natural XXXX the systems, steel service and distribution, X,XXX and gas expanding pipeline, are operational. of proven year strong we employees. expanding during industrial ongoing systems. and over our and the to estimated an executing from storage was again company. XXX,XXX success miles and in and approximately of sustained period, customers. Fiscal gas modernizing before, XXX,XXX invested X,XXX pipeline. and I've they once X,XXX we by long-term transmission and miles it and new the we XXXX per Bcf customers, approximately replacing demand heart natural success XX,XXX XX-year that customers say again, In nearly soul our approximately said investment same transmission Energy added And Our year commitment of we XX load XX-year XXXX. lines That gas our annual modernize continue distribution industrial they fiscal we customers reflected once with are was added

an with from years, three added manufacturing, customers of hospitals, have last nearly customers annual processing, industrial Bcf. estimated distilleries. are and these And the food Over automotive we industries, load XXX XX various

and service steel replacement through XX,XXX supported investment lines, service to of capital over the of billion system reliability. distribution were XXXX and fiscal $X.X transmission more and of transmission lines of all of the than the pipe, further modernization over safety XXX distribution which miles our Our of of miles enhance systems pipe, XXX replacement XX,XXX

distribution, and and this team outstanding transmission meter wireless system. the opportunity and and necessary to XXX,XXX over our efforts continued now million two have installed resources to procurement dedication storage their materials have to reading and we projects. devices thank available highlight focus, want I for our such our devices for over take Additionally, across

Just as have XXXX. upon the well strategy positioned their continued execution past in decade, efforts our done had planning they us for fiscal throughout strategic

about example, needs ordered fiscal For anticipated months inventory of maintain and steel transmission currently needs all XXXX. operations for we of our year distribution six pipe for and have our

coordinate with our and to we our as orders. steel mills place pipe XXXX continue We vendors pipe FY

versatility few Now, they I an diversification their update on you in provide want to Pipeline-Texas safety, that our highlight its value and customers. APT projects provide a larger Atmos of and supply reliability, and

which than end nearing gas storage of completion Bcf salt place year. track of the of in on the calendar X project additional cavern We will the this are Bethel, third week capacity. began service more We cavern dump remain APT's and the to cavern new at working provide the selling by

X are end of this second calendar will Line integrity the we by pipeline. replacement miles This of is phase track completed of also replace We also project, to on the which nearing XX project our be of XX-inch completion year.

reliable As Line local service to gas as as a the key customers providing runs system Dallas, APT behind distribution Waha Waha transportation that reminder, move is X companies from to well Katy. and from to to

project our phases. continue progress line to good make that three We has S-X with

As plays miles with to and supply east Valley replaced replace quarter Phase into project Worth XX-inch with XX reminder, first of Cotton Line of S-X X the the Phase we'll shale placed side of XX-inch of a pipeline. Dallas-Fort pipeline of XX-inch pipeline Line brings XX fiscal S-X, service from Haynesville the one of XX-inch Metroplex. pipeline the miles In the and XXXX. growing was

a will again, plays This service final of to be anticipated connect quarter County, supply currently XXXX. growth during growing with line of north late end this and into gas Metroplex. that XX-mile support Katy. to To the and additional fiscal bring The southern east diversity this project Texas, this in calendar We is to expect of expected that the this begun XX-inch project the XXXX. the on line to we into service increased second system XX-inch year. Worth year forecasted of to highway placed the Austin runs line that be from shale in is provide service phase late work Waha will Dallas-Fort supply Permian and the from APT Williamson calendar And the have be

you've in updates, service and previous service support. customer and technicians agents As customer heard our exceptional provide my service

During from satisfaction day. you XXXX, our customers. and our year exceptional XX% fiscal every a for rating of Thank received customers agents taking team technicians care our

is year cards electronic strategic electronic methods drafts, delivery online and Our received as industry our And and benefits customers the build of XX% utility digital bills this September we banking. of payments such are options as on focus the of were is yielding total average payment credit payments XX% XX receiving bank over XX%. while as of

XXXX, Charles we X training. of X of enhancing Vaughan reached in comprehensive in key emissions training approximately in delivering of operations strategy on supply hours we provided continued opening operations, environmental XXXX, facilities, fiscal areas September, fiscal our XXX,XXX the customers. and million impact In our During XXXX. from the we our Scope center of our X fleet, environmental And since training a K. hours focused and X, reducing five and gas milestone

our the XXXX operations will X system compression monitor and Our imaging fiscal transmission efforts alerts. to the distribution to APT earlier. storage that cameras and send fixed-based installation at in our field mentioned programs reduce we including plant storage in methane ongoing e-mail our impact will text included our completed modernization And fields, employees environmental images if for assets gas And I of to cloud and alerts, emissions. and our continuously XXX-degree addition These technology technology. necessary, emissions

implemented our as we our detection in expanded advanced detection storage vehicles leak fiscal XXXX, we at of our distribution facilities. well installation Additionally, by and our technologies continued capture system as methane vehicles. leak to emissions And our adding additional CNG for hybrid advanced wellhead technology monitoring mobile transitioning heavy-duty fleet From began perspective, vehicles from pipeline a facilities maintenance we gasoline light-duty and to fleet to activities.

another center gas reliability of cells role a This which end with this generate grid-independent Round both greenhouse are CNG at low example natural we emissions. emissions facility. Additionally, data natural for by how center, to our Fort-Worth our gas-powered corporate electricity installed facilities, our and fuel efficiency, in calendar our data at XX%. are increasing cell while plays adding emissions The is stations high Rock scheduled critical At a of by the year. gas truly to completion fuel we refueling lowering of reduced pivotal

We pending total energy X are be in this expected, of as total and certified new If or certification. service our LEED-certified XX leadership centers will have number that XX% LEED to environmental have facilities. of we design the or facilities approximately

across a We expand XX transporting our system and X evaluating approximately of are customers, could are RNG transporting further end-use for today. we over we RNG that that the of opportunities year amount are currently Bcf

homes and These eight our humanity families materials more Finally, energy panels insulation rooftop to in provide we homes. with net than habitat appliances, high-efficiency of are for with solar organizations partnering consume. they states to energy natural gas zero local each produce advanced use

heroes, in workers natural zero completed and by a Atmos Energy in planted in initiatives new on supporting home one worked to of are homes to taking lives we trees hometown a scheduled and our XXX the thriving up Jackson, in complete in our we Kentucky, snacks. the others meals XXXX, books, this broke five of ground supplies. value home nonprofits, community XXXX. vital health net fueling supplying supporting The Dublin, a in Mississippi, Texas We and care To difference Virginia demonstrate needed our first fiscal the home X,XXX During manner. We in their and gas carbon and energy our footprint recently care We December. schools Ansbro, and wrap spring and we of them ZNE customers cost-effective that Homes the with complete our months students role to fiscal reduce in a gardens. dedicated in responders than honored and have expect construction more XXXX, and XX safe in and meals through with last seven plays helping completed communities by made employees

our in I'll our guidance through you. XXXX. will the us the difference Chris, comments. around turn has plan A I discuss who into making nearly provided color will time, of call voluntary the our to hosted our for positioned neighbors resources, support. are XXXX a local successful second then and over into and -- Chris, shelters, and closing over well move for decade additional need very and support assistant XXX of team I in customers resources energy talent the of blitzes translated proud team utility am our financial of to of share investment and meals across million [Indiscernible] financial $X our and their communities. million fairs and our of five-year for program XXXX some financial some and banks because provide return to over fiscal with for updated X as communities. we fiscal And donated now local X,XXX our we food XX,XXX strategy. results Our fiscal [Indiscernible] fiscal XXXX

you, and good everyone. Kevin, Thank morning,

mentioned, diluted XXXX. Kevin As over $X.XX, XXXX which X.X% fiscal share was fiscal represents earnings increase a per

of distribution, performance proven financing Our modernizing our of our storage and execution balanced and transmission systems, cost strategy natural a continued timely gas recovering reflects in our manner. operations the

in the saw both details $XXX four summarizing continue in in we Slides to through Approximately consumption rate safety income and distribution were fiscal of our expansion by is strong increase six offset million a which financial system our O&M implemented fiscal customer year. segment. and Consolidated XXXX adjustments increased growth, experience operating significant spending. performance fiscal also lower We for increased liability some spending. debt recognized of primarily bad and XXXX. this customer expense, improvement XX% and our driven adjustments These from provide

distribution the see quarter. which million $XX to of customer in second $XX continue million. an growth increased operating consumption, our income additional during growth decrease most by a segment, offset fiscal which occurred in We robust This

quarter. and compared reflects a debt experienced in million as the a by team million This primarily O&M collection our O&M, we with prior partially $XX full we segments increased the This in assisting in our perform fiscal decrease prior collection $XX of excluding debt bad pipeline of costs in customers our $XX late work both maintenance in year. year. the resumed Additionally, service increase bad million, decrease increase expense we bills. expense. was increased expense, customer fiscal by consolidated year, In driven offset activities our also comparison, to activities were with activities their for in able exceptional third employee-related

funding with XX,XXX $XX we fiscal monthly million their During help arranged of to only bill. customers XXXX,

in debt line in a bad pre-pandemic XXXX our with experience. expense As our was result, fiscal

Approximately of natural of by refund by Finally, XXXX this operating operating return XX% of amortization test income end. with our our territories. modernization, the excess of liabilities annualized growing our increased began spending meet We in spending safety with of reductions annualized million. to tax regulators approximately period XX% and fiscal improving billion, in demand liabilities. have in the to deferred by increase million fiscal revenue the first months six operating This $X.X XX% this service accomplished since increases reduced reliability $XXX the expense. end and income XXXX system reflects fiscal system. the associated This with lower was million a tax dedicated increased the Consolidated million we to of increases $XXX the reduction reached our excess the agreement substantially $XXX in deferred tax excluding And earn income of spending implementing or capital during gas income an offset to within $XXX integrity additional expansion quarter. year, primarily

fiscal through Slides two summarize our for filings exceeding we activities about million. XX $XX today, XX regulatory of As XXXX. pending have

XXXX, to support ATM equity equity needs of ongoing We program. equity completed fiscal we sales satisfied billion over debt financing operations. our fiscal During through $X.X our fully and long-term XXXX our

As we This million XX, we portion anticipated of existing needs. complemented of XXXX $XXX forward financing equity financing long-term anticipated fiscal and equity had will the September fully our needs million arrangements of our satisfy about XXXX XXXX. a available fiscal that under fiscal during issued debt $XXX

the billion $X.X that in in second receiving debt. all financing rate retire securitization our on We storm of March Commission authorities use Kansas, and over cost Corporation on We Texas financing interim from months. cash million In matures eliminate of also the winter This gas In next order in to we the public in $X.X within Kansas a financing progress a exposure to October us authorizing by securitization. floating our anticipate securitize fiscal and anticipate will to completing XX, over of make proceeds hand XX-year issued process to available few quarter. the seven continue period. to the XXXX. Texas, end $XXX fully billion We'll the the

As end of financing $X.X the result or year, capitalization the winter these of excluding a our activities, at equity fiscal of storm financing XX.X%. billion

two we finished we $X.X approximately debt with liquidity. billion the In Additionally, fiscal through tranches. of $XXX long-term available issued million of year October,

with reduced First interest of $XXX tranche was X. and note a $XXX effective a tranced upon forward rate We starting coupon rate of million swap, received of XX-year hedges financially million senior which the had XX%. X.X%. settlement

million X.X% Details satisfied this our our a nine $XXX of found already financial because anticipated equity fiscal a can XXXX we XX-year our was our with tranche through activities. have financing and Second senior ATM slides needs fiscal note financing activities coupon our on for and completed program, transaction XX. XXXX profile and

of the with of need contribution Based the Act the make XXXX. the required finished do plan. a and very we plan Pension Protection pension fiscal minimum funding position during on well-funded the Finally, year anticipate current requirements in funded XXXX, fiscal the not we a to

XXXX, prices to winter ensure we've for customers reliability quarter natural competitive addition fiscal gas of and In for during addressing been upcoming the fiscal our also supply financing needs, heating our season. fourth XXXX the to preparing

has Our team winter preparing gas the for done heating upcoming season. job outstanding supply an

is Our full. XX% proprietary and storage contracted over

of will The and our remainder Additionally, prices expected usage we have the for we Through under of pipelines a our and in anticipated basins. financially capacity hedged footprint, from base gas access physical significant has supply Henry for contracts purchase purchases which needs mid-$X team eight-state have liquid-traded to of and wide range. Hub peaking be to use winter XX% variety be portion at Further, provides combination physically purchases supply which a requirements. continue through transportation will pricing. a normal NYMEX needed. half stabilized producing our storage when financial Waha, our sourced the storage have traded and of Today, gas hedges, load of winter just needs our of of traditionally XX prices, across first-of-month we our satisfied below and

purchased on gas weighted involves costs recovered This impact helps gas incurred a XX mechanisms prudently customer which over all bills. to average generally approach, generally calculation reminder, a through As months. cost smoothly

gas of reminder, approximately as customer of a which debt to portion opportunity purchase distribution mechanisms states, have expense we in XX% bad covers the base. Additionally, cost guidance recover five cost the a through our

to and our potential mitigate impact energy we of the communicate can help continue higher through about we Finally, actively can plans plans how gas prices they agencies. energy customers how installment offering billing with conservations budget by and locating and assistant

indicated plans. the plan. XXXX. fiscal under X.X% pipeline Slide with our increase represent approved five-year of Board storage is summarizes $X.XX, on for XXXth Spending annual over last line to capital quarterly what guidance XXXX XXXX be XX. Looking fiscal with yesterday, distribution segment. years, five-year we XXXX to forward, key of the spending is have come billion. end. $X.XX in consistent dividend. segment begin short, efforts. one-third expected expected cash over with approximately XX our be our can yesterday, the spending Consistent $X.X we Details approximate to guidance Substantially, fiscal from $X.XX. expected earnings this fiscal we X% test slides and initiated per this period incurred earnings all share the of found for fiscal is themes segment a earning of system is consolidated In spending expect we in XXXX XX The Energy's in and is about surrounding in Already an a these within modernization prior return Directors of our presenting our XXXX. XXXX themes six fiscal our are our two-thirds will been to Fiscal support dividend distribution Atmos capital And consecutive on range XXXX very levels increase to months expected our several to fiscal

XXXX, X% earnings anticipate per annually range will in be grow earnings at the of we $X.XX fiscal share X%. By the anticipate Over to $X.XX. to we to five next years,

We anticipate annually earnings per with share. increase per dividends share also line to in

focus expansion approximately Continued increase of activities This from that of for at This the capital of base in base spending From and continue XXXX, rate into total anticipates O&M billion to the level an growth estimated earnings per system on safety. which in billion XX% anticipated fiscal XXXX. rate spending plan we will of driver up billion. the an capital support and primary modernization per will continue end for spending $XX replacement be fiscal net year, share to $XX from income approximately XXXX. compliance-based XX% fiscal and about will translates system to address perspective, $XX spending, of

For fiscal XXXX, we X.X% anticipate we've XXXX and $XXX assumed annually of through off X% O&M to levels. to million from fiscal $XXX of FY XXXX range to O&M million, inflation

In outlined, XXXX. about plans to will excess of XXXX five addition the the approximately I in refunded and XX% fiscal million assumed We years. during spending refunds have next tax fiscal $XXX anticipate this over we be deferred amount

Inflation the that of As becoming the minimum effective balance XX%. we Act that rate and range fashion included of combination result, expect preserve also a corporate planned XX% passed using and to tax balanced continued in Reduction a strength the in fiscal our of the a equity was because our was our to back half tax long-term five-year sheet. to between the operations cash income debt material of taxpayer XX% August. finance in this We've plan in XXXX past We've a for

years. billion billion we between need $X.X incremental the next to five anticipate in and raise securitization, financing long-term Excluding $X.X over the

been financing debt the fiscal before billion we X.X% $X.X component we've interest of from guidance XX% debt ratio, needs fix a target use earlier, us balance debt. equity XXXX. of of earnings already long-term sheet mitigate to mix This To financing reflected our ranging rate our capitalization XX% associated with effectively about risk long-term need. interest for to to plan per beyond Strength mentioned XXXX, inclusive swaps equity at in have rates currently fiscal financing X.X%. billion rate total our and prove fully anticipated through to the satisfied short-term this I share As financing that enables of anticipated cost $X.XX starting has our of to treasury

cost we refinancing for repay which the will $X.X the to very no average of weighted perspective, we Additionally, as Uri, risk. profile an few until rate have And a no mitigates equity storm debt equity. X.XX%, excluding slide winter method our a weighted mentioned ATM ago, of rate details. utilizing raising related and for interim fiscal material I incremental manageable average years XXXX. interest our minutes program XX billion with XX a debt, financing, maturity Storm a Winter debt and about of remains is needs From of further financing preferred floating once See

customer timely meetings. our long-term As during regulatory dividends equity earlier, XXXX executed the morning. forwards with utility closing will remarks. turn in portion for fiscal I bills the needs this disciplined fiscal Kevin of fiscal recovery XX, X% mentioned modernize very time annually grow this from a on can those Kevin? execution all back XXXX XXXX. now you our bills I plan this XX our fiscal other household. fully our keep through to XXXX per will the call plan of we satisfied of equity as X% investments to system mechanisms has balanced cost compared slides over and ability a for and perspective execution supports anticipated of our through the spending, various financing competitive earnings to Thank customer and capital through common And our you the his to see share also through The

you, Thank Chris.

to mitigate risk in execution this morning, steps XXXX. As taken several we fiscal you have heard

I excellent in As opening in to my our fiscal the needed XXXX. has support materials done procurement sourcing spending remarks, an team program of mentioned capital our job

growth share. financial Commensurate a is dividend very financing a XXXX portion XXXX. regulated infrastructure. FY safety-driven long-term support season. growth of significant direction team The we gas Energy. I'm that operate are growing per choice. diversified supply a jurisdictional Chris passed earnings our by needs states that our footprint set gas per We natural a base positioned supported and natural in that the supportive has in sustainability have yield our profile. rate is as has our us upcoming energy hedged eight of accompanied Atmos excited our X% with situated proven fiscal foundation noted, for investment strong about and Our of with and financing organic known, costs well heating been of year or And in gas six of legislation X% have to and fully share XX% beyond

have We necessary the to gas that and our storage mechanisms distribution, regulatory constructive capital support modernize investments systems. natural transmission

runway total a about the have to and of $XX pipe XX, support of or billion in as planned X,XXX work will our and this And support spending of years. the X,XXX We capital long XX you of distribution over on the slide transmission five next X% see system. replacement spending can miles to

We also our reduce approximately XX%. XXX,XXX to which between is service inventory lines, steel by XXX,XXX plan and to replace expected

sustainability industries now our to businesses open strategy we'll Focusing natural delivering the now and for in is the vital always the of time fuel is on every morning, part questions. gas this reflected has efficient needs and appreciate role homes, reliable long-term in and energy We and and a been call to safe, That your community. in play our we future.

you. Thank

be now Richard first Instructions] Sunderland proceed question-and-answer question. session. from JPMorgan. your Please is with a with will [Operator question Our We conducting

O&M step-up you time And overall? inflation? target. more implies the about morning XXXX as good your O&M are to manage how thank higher What the O&M near-term do the lever Starting X.X% higher think X% a and then and today. the for a broadly, to drivers of maybe Hi guidance customer impact bill you side, the relative on

Yes, Chris. and I'll hand over then start it to

out got moved in continue with place. the and forward, vendors, work to moving long-term we contracts we've As contractors. our of We've pandemic our

costs updated recently. reflect have Some here of to those inflationary been

numbers out the of XXXX the the included there. five-year All those in in and plan laid we've are that

though levers as and an again, Additionally, opportunity like technology traveling have as move as our pandemic. we're the fully have were out had Teams day-to-day a have as we the the locating, within as find forward. sort of Zoom we understanding that not to pre-pandemic, such continue we've here, basis there. same such events we It's costs advantage well to out new costs trying forward, all levers as of and far there. that additional all think been of survey, we to things parameters in or leak on line even ourselves we those And taking things some positioned we there, laid normal did that we for the travel, we're meetings, or going incurred to those are activities But back

And outlined some our tamping of reducing financing strategy trying to O&M and of strategy, some all that that there as the into are things basis. fold a keep Chris down outcomes and well in cost that things the on going-forward

So Chris, any additional thoughts?

Yes. other The levers. years is, I Kevin, of you've the before would about thing talk Rich, in couple add terms and that this us last only heard of

on and compliance. We are safety, or -- a focused is lot of this O&M spending virtually all it of maintenance

is to expand alluded Kevin or as to, a activities. company. little have are in to we those we types so of There numbers, compliance continue not a of inflation bit the And the just-in-time safety opportunity but

ahead type forward in XXXX those on will, we're you looking activities. curve, staying So, of of to if of kind the

need a in pull as opportunity. that So lever, to alluded fact, to, again, Kevin if in have we is, a there

-- what's activities. is really leak locating, new survey that's through So in anything little really as activities do, Kevin to increases a across driving seeing We're we're entire There but inflation cost mentioned. as the it. or activities, bit we system, different also enhanced underlying the of well. just higher continue no Line seeing

front. on And color. very quick that follow-up just helpful a That's it. Got

do get some XXXX? see at to over time How contracts point understand costs, you that these is you about to the I So outlook? to higher kind of continue vendor rolling inflationary X.X% to in into your X% this of moderating expect a trend back

ball to peer again, to service continue we're what's well comfortable have and now, try into I our we But providers well. into what conversations to we have think see crystal contractors our there. as I want positioned. plan. a very Yes, don't Right out with and we're with

that today, see as we've accurately at suppliers forward this contractors, our sits it point. on the and having we're cost they them with vendors, As those conversations captured going

proceeds, the who what sense. months it. securitization process color the until you and quickly That in Texas I correctly makes Got watching on are just any heard gears, several switching if just you you're And front? script, this on from for

quickly working Yes, of within participating authority. Richard, they all close utilities There's process other of obviously alongside our slip hoping few along as moving a so the -- we calendar to that with possible. quickly is participating the to the and up into utilities I Texas as questions said end potentially can. lot wrapped the TPFA are we months year having the in were And early diligently as and and again, the contact this next the we're financing as But we're before get XXXX.

for the today. you Thank Understood. time

Thank you.

Thank you.

Moreen question from Please next with is with question. Mizuho. proceed Our your Gabe

Hey growth X% the just whether X.X% seen going give everyone. growth that you've in market? I'm any update here, standpoint? in of a us to annual an I whether you're be if the on slowdown morning to range sort you of signs could wondering customer outlook good from think housing you guess, forward given, changes customer going And the

we first impact of there of territories itself, our just have builders, well we're there. home And exceeding in seeing and service we some qualified the new have part interest job is we're existing annually. home according period time though increased market, Austin impact, to particular, the that approved a homes of backlog you. folks data to see winter Obviously, out pre-pandemic Unemployment is wanting existing our is locked the market. less territories And of Commission, ago, The you some told about the been service Thank already a Workforce to backlog on builders developers, what into developers if job growth. our Even construction decrease according under just the XXX,XXX the the some with some experiencing But months being our you as across ready will, some from anticipate interest our with we giving buyers But of again, significant our today an the across rates, inflation. housing head than growth homes. the in an and that hires in is our as being for of year, feedback and of that. some to folks they're the ground of territory rates new has market annual slowdown remain with the that low. getting purchase Metroplex continues a XX,XXX example to area just out, couple putting give Texas a here, service

hear service that builders job to developers economic in, our growth, that strong territory, the see up to able our with news inflationary environment strong continue growth. and demand. currently good even keep with to And we're are So

speaking interest rates the then of current on And for interest in, just rates locking rates to curious line? I'm to kudos down interest guess I of going of in and tax. you're new question them for whether kind interest locking minimum Great. continue then in in time some And the lock a environment, related rate in instruments. the issuance book debt anticipation to

all plan. taxes, the Or end expense that Does You interest talked I years? change cash you guess, about towards given would minimize the at that's potentially shift the to, appreciating that tax bit of for not financing plans that, deductible, hitting several a try kind to little more? is five-year of the

Sure. team locking here, goes for Dan treasury had Yes. and to his opportunity. -- we credit is the in Gabe, the rates, those all

Obviously, -- with We to related around the it's continue in have are With look watch interest rules thing. therefore, month size continue tax continue a at reflected that excuse right needs. assumptions at, to the next how But or going and the tax that years. final to it's minimum still it's five need out, opportunities look that of assumed where sometime in we rate four financing made for that type the the bit little we look cash environment challenging, that expecting five-year is current is respect me, financing environment, We're hit rate as and to to the plan. in something some certainly to The to now handled, we in is month will Fed of increases. our as but and rising we plan hedge rates. where in already price TBD repairs depreciation, in a the impact corporate

Great. you. Thank

from Our proceed Stanley. with Arcaro question. your with next Please Morgan question David comes

more for looking take pressure question. any here? so there Wondering customer outlook steps the Thanks increased Are little that outlook? if taking talk morning. about my increases just you there could you're a at you to to could bit be manage think going whether good Hey bill rate manage much that to forward? And just

look Yes, think, us, of the their for the if and commodity I and Dan, I'll reliable, components major you get And start. supply Again, out that's bill, supply. it the all to begins first team with go at our securable ability portion. gas

at what's today. You driving look upstream that

working You're U.S. short half the that total the Permian. currently XXX just of in rigs in about over today, of

forward range. out we April at the $X forward, that where in the out at Even the Waha, look on NYMEX, change. there's a $X there. some look You on look handle and you sit Right now, it's is four today

through some So season the kind we to all for as customer price work good this in forward. current conditions think to outlook say, bill. the I of heating the mitigate looks on as ourselves commodity well

light to think other there the public do team out day $XX in for us funding that is out our team think the about the communications out level, to and year, customers it million. are give I federal XX,XXX comes And state The day and important actions and able team, at agencies level heat corporate state for when energy thing almost our to affordability for access local to example, [ph] and our affairs that help to gain an there. funding was team advocating just this you our assistance

help lot gas bill the price. customers at released need the a seeing. to It's of advising also secure energy of able there's to that to can to ability reasonable So the It's their go what We it. a conserve get about our reliable as we're components ways when It's now it. communications customers messaging into three being on them they customers well. they

comment last year ago? that? gas for Got to the to month wondering Very on then response report you internally incident being from And NTSB a it. are that. could the published was initiatives related if helpful. in undertaken that Thanks And what just

report We're Yes, we'll let itself. comment the going report. NTSB the on to not NTSB standby

the and report safety and well. outlines other NTSB, well to We are as a party operational I'll findings initiatives, investigation. point them it the our to with that's filed We you our closely with all investigation. parties as of work to

business? just the you're cash And XXXX experiencing of expecting one just quick for follow-up things. tax what point there as Thanks. of to a it. kind under Is got side the in level term tax the that near on rate Okay, starting a as you're current cash tax or

I've Yes, double for a got minimal XXXX ANT four from cash fiscal that in were, period [ph] very we XXXX, we be say, fiscal the perspective, XXXX. state to anticipate to will a XXXX, taxpayer, through when in said I XXXX, when that's federal And digits. low We and both very that similar kick expect in. to five-year

Perfect.

so much. thanks Okay,

Thank you.

Julien Our from Please Instructions] with comes with next proceed question question. Bank your America. [Operator Dumoulin-Smith of

a probably on bringing practically to how of this to get level which be to of well And in your in this just recall thing close Hey issue. securitization of good with Rich administrative hoops morning several you about of securitization Q&A lot back there's resolved lot ahead a tax do to Hope of quarter, confidence that has the coordination for a excess the delay bit the bringing Can And top here you the get you think the the state this on is I next the that months several of back are admittedly in of that of you'll crossed you terms able what started what last billion, guys March Thank guys about months. just of I if Just what's If at considerations, been? the the terms $X.X ultimately? team. ultimately, to I little delay need here. be But go well? time. could timeline, this driven a finality? where said here. -- talk you

Yes, have that Chris. it legislature the that now. the great confidence the I'll hand Commission over approved has in laid going start and Railroad process through the is out to then TPFA Again, we and that

supporting have. not role questions is table or just at questions sitting Our -- groups We're answers like now the that to anything with that. the

thing of that or point. We request information are Q&A just sort this to at responding

we to teams remain again, in So get ability of to the the process forward. need confident very move the they the answers and

So, additional? Chris, anything

pretty I of the well new a as I And just too, think a think, reminder, is said, state. securitization for this nature, Kevin. it's

the are -- the so Is they're are dotted and just And making and sure the all all all Ts crossed.

Got it. Right.

administrative in the driven by seems in it in of terms and line? you of like guys? state it's execution So shift than time more It the sort truly

Yes, absolutely.

your on you recovery? in elevated curious if some this back with can and/or at pressure numbers. kind then O&M plethora time exists Obviously, I'm But comment And guys in across just with it. time speak of I to is associated of anything if Got you you as that your go returns you. can extent earn shifting can can shifting strategy accelerating little it your conversation overlay regulatory you of have regulatory as the well. proceedings that as think today. Thank the I tandem If portfolio is Again, utilities. of industry, accelerate all? your XXXX I level your this for Excellent. to it highlighting line you any which and across mechanisms obviously, about mean, lines Obviously, ability on a that. to the here, to spending. on a bit the just

Again, Julien, any Yes. add can and I'll start, Chris comments.

look mechanisms mechanisms, our our you in annual at of If most nature. are

time So to are the they're those follow orders end those. filing prescribed on things. continue on going dates, back Those sort We're prescribed. lines, of of to

laid as are well seen. you've projects Our out

subsequent need, a fiscal investments five-year and meet long we that's four safety or our to time plans. sort those from thing and see things how safety get forward we our then moving reliability to year move is and for customer a backward us only our to like that what are on a compliance planning things to depending growing on The a years a growth forward the the now need, our system to need, go demand for safety backward our after system. through of or or on need, hope You levers

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you gentlemen. Got Thank Appreciate it. it. Excellent.

Thank you.

you. Thank

for questions It this like to appears comments. no there turn further over at time. that are Dan to Meziere floor now closing the I would back

good Thank you. us. for day. We December available XXst, your of interest you joining thank on Energy appreciate be call through this for A and a website Atmos XXXX. will Have our in recording replay

teleconference. This today's concludes

you participation. Thank You at may disconnect time. your lines this your for