Atmos Energy 2012 Annual Report Download - page 17

Financial Results
Our strategy is working well. Earnings per diluted share in
scal 2012 increased by 10 cents to $2.37 above the $2.27
earned in scal 2011.
Consolidated net income for scal 2012 was $216.7
million, compared to $207.6 million in scal 2011. Oper-
ating revenues for scal 2012 were $3.4 billion.
Capital expenditures increased by $109.9 million, year
over year, to $732.9 million. We invested about 71 percent
of these expenditures in pipeline safety and reliability
improvements.
Our natural gas distribution operations focused on
completing several important ratemaking initiatives. e
positive outcomes from these proceedings help set the
stage for growth in scal 2013 and beyond.
Our regulated intrastate transmission and storage
operations, Atmos Pipeline–Texas, beneted from new
rates approved in scal 2011 and from lings that took
eect in scal years 2011 and 2012 under the Gas Reliability
Infrastructure Program in Texas. GRIP allows statutory
interim rate increases for capital expenditures.
Our nonregulated operations returned to protability
in scal 2012 despite anemic natural gas market conditions.
Lower consolidated gas sales volumes due to warmer
weather and a decline in per-unit margins on gas sales
hampered this segment’s results.
To impair a remaining investment by Atmos Energy
Holdings in two Kentucky natural gas gathering assets,
we recorded a noncash charge of $5.3 million. In scal
2011, we had taken an $11.0 million charge that partially
impaired these gathering assets.
We believe these impairments and a heightened focus
on managing risks will help our nonregulated business be
more successful. We will continue to expect no more than
10 percent of our future annual consolidated earnings
from these operations.
During the year, we strengthened our long-term debt
prole. In August 2012, we redeemed $250 million of
5.125 percent senior notes due January 2013.
In January 2013, we plan to issue $350 million of 30-year
unsecured senior notes. e new issuance will extend the
average maturity of our long-term debt from 12 years to
14.5 years. Aer the issuance, we project that our average
weighted cost of long-term debt will be about 6.2 percent.
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ATMOS ENERGY 2012 SUMMARY ANNUAL REPORT
Ralyn Fletcher, director of employment and employee relations and chair of the enterprisewide Culture Council,
meets with the senior Management Committee to discuss new council initiatives for the company’s programs.
Our plans for growth are to maximize the value of our
regulated assets through internal investments.