How did ATO's revenue and expenses trend in Q1 2025?

Atmos Energy Corporation (ATO) reported strong financial performance in Q1 2025, with notable growth in revenue and capital spending, reflecting its strategic focus on expanding customer base and enhancing infrastructure.

1. **Revenue Growth**: ATO's revenue for Q1 2025 was $1.2 billion, with a consolidated operating income increased by 15% to $459 million compared to the prior year. This growth was driven by rate increases totaling $69 million across operating segments and a 7.2% increase in diluted earnings per share to $2.23.
2. **Capital Spending**: The company invested $891 million in the first fiscal quarter, with 86% of the capital expenditures allocated to safety and reliability enhancements. This significant investment reflects ATO's commitment to modernizing its operations and infrastructure.
3. **Customer Growth**: ATO added over 59,000 new customers in the past 12 months, with over 46,000 in Texas, and nearly 1,100 new commercial customers connected in the first quarter. Industrial customer growth included 11 new industrial customers, utilizing 2.3 Bcf of gas annually.
4. **Financial Position**: ATO maintained a strong financial position with an equity capitalization of 60% as of December 31, 2024, and available liquidity of $5.2 billion, including $1.5 billion from forward sales agreements. The company also completed over $1 billion in long-term debt and equity financing.

In summary, ATO's revenue and expenses in Q1 2025 showed robust growth, driven by customer expansion, rate increases, and strategic capital investments, which positioned the company for continued performance and reliability in the natural gas market.