Atmos Energy's quarterly profit rises on higher rates, customer growth
Aug 7 (Reuters) -Atmos Energy ATO.N posted a rise in third-quarter profit on Wednesday, as the natural gas utility benefited from higher tariffs and customer additions.
The company said its distribution operating earnings were boosted by $30.6 million due to higher rates than last year, while a higher number of customers lifted earnings by $5.33 million.
Atmos delivers natural gas to about 3 million distribution customers across eight U.S. states.
The company, which also operates about 5,700 miles of transmission pipelines in Texas, said its operating earnings in its pipeline and storage operating earnings rose 40.6% to $137.2 million.
A surge in production as well as capacity constraints have boosted demand for natural gas pipelines in the U.S.
Its costs for gas purchases at its distribution segment declined by 12.9%, as U.S. gas prices have plunged this year due to milder-than-expected weather and storage buildups.
The Dallas, Texas-based company's net income was at$165.6 million, or $1.08 per share, in the quarter ended June 30, compared with $137.8 million, or 94 cents per share, a year earlier.
Reporting by Sourasis Bose and Vallari Srivastava in Bengaluru; Editing by Shilpi Majumdar
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