Natural gas utility Atmos Energy reported a jump in profit Wednesday following rate increases in Texas and Kentucky and increased demand during the cold winter.
The Dallas-based company reported it earned more than $133 million in the first three months of 2014, up 15 percent from a year ago.
In a filing with the Securities and Exchange Commission, Atmos attributed some of the gains to a program created by the Texas Legislature in 2003 that aims to upgrade natural gas pipelines in the state. It took in an additional $7.3 million in revenue through the program, which is administered by the Texas Railroad Commission.
Cold temperatures this winter also boosted profit for Atmos, which counts about half its customer base in North and West Texas. The company attributed $1.4 million in gross profit to the weather in Texas.
“Our continued investment to enhance the safety and reliability of our system … continued to yield operational dividends during the challenging and sustained period of cold weather this quarter,” Atmos CEO Kim Cocklin said in a statement.
The filing comes as the Dallas City Council prepares to complete a settlement with Atmos that would increase monthly bills for the average resident by more than $2. That would amount to a 10 percent increase.
The report followed the close of trading on Wall Street. Since early 2010, Atmos’ stock price has increased by 85 percent.
On Twitter:
@osborneja
To post a comment, log into your chosen social network and then add your comment below. Your comments are subject to our Terms of Service and the privacy policy and terms of service of your social network. If you do not want to comment with a social network, please consider writing a letter to the editor.