Atmos Energy Corporation (NYSE:ATO) Q1 2023 Earnings Call Transcript

Richard Sunderland: I just wanted to follow up on the earlier discussion around the gas price dynamics. Curious for your thoughts on the duration of Waha weakness. We see a probability that in Waha gas prices remain depressed until Matterhorn enter service in mid-’24. Any thoughts around the duration here and impact to customer bills relative to your outlook last quarter?

Kevin Akers: Again, our team continues to stay close with the producers out there, midstream processors to keep it handle on, as you said, as well as new projects that are coming online. But I think the other thing that we’ll continue to work on is the tie-in to some of those lines, that’s the other opportunity, I think, for us as those projects continue to build coming out of Waha and head east that gives us an opportunity to get additional tests or to bring in additional supply into our areas as well. So all good signs, as you say, on the forward look. Right now, we believe these prices and the conversations we’re holding, numbers look really good as you head into March upcoming. So right now, I don’t see things changing in the short run, at least the information we’re getting out there.

And then as we continue through this winter period, pulling on storage and get ready to inject for next season, the pricing looks really good there. As I said before, some in the $2 range or so. So that should have a very positive impact for our bills for next year.

Operator: Your next question will come from Ryan Levine at Citigroup.

Ryan Levine: Most of my questions were asked already, but I just want to follow up on one. In terms of the Mid Tex DAR proceeding. Can you provide an update around that regulatory activity?

Chris Forsythe: So we made that filing, the DAR filing in mid-January. We’re just now beginning to work through the early discovery process, and we anticipate implementing new rates under the DAR filing by the end of the fiscal year.

Operator: There are no further questions at this time. So I will turn the conference back to Dan Meziere for any closing remarks.

Dan Meziere: We appreciate your interest in Atmos Energy, and thank you again for joining us. A recording of this call is available for replay on our Web site through March 31, 2023. Have a great day.

Operator: Ladies and gentlemen, this does conclude your conference call for this morning. We would like to thank you all for participating and ask you to please disconnect your lines.