v3.26.1
Segment Information
 6 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
We manage and review our consolidated operations through the following reportable segments:

•The distribution segment is comprised of our regulated natural gas distribution and related sales operations in eight states.
•The pipeline and storage segment is comprised primarily of the regulated pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies found in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.
Income statement information and capital expenditures for the three and six months ended March 31, 2026 and 2025 by segment are presented in the following tables:
 Three Months Ended March 31, 2026
 DistributionPipeline and StorageTotal of Reportable Segments
 (In thousands)
Operating revenues from external parties$1,876,911 $85,491 $1,962,402 
Intersegment revenues769 203,798 204,567 
Total operating revenues1,877,680 289,289 2,166,969 
Operation and maintenance expense155,918 27,054 182,972 
Depreciation and amortization expense (2)
146,751 48,936 195,687 
Interest charges (2)
29,130 19,601 48,731 
Income tax expense (2)
109,714 41,976 151,690 
Other segment items (1)
998,864 7,126 1,005,990 
Net income (2)
$437,303 $144,596 $581,899 
Capital expenditures (2)
$717,079 $286,510 $1,003,589 
Reconciliation to consolidated total operating revenues:
Total operating revenues of reportable segments$2,166,969 
Elimination of intersegment revenues(204,567)
Consolidated total operating revenues$1,962,402 

 Three Months Ended March 31, 2025
 DistributionPipeline and StorageTotal of Reportable Segments
 (In thousands)
Operating revenues from external parties$1,881,742 $68,760 $1,950,502 
Intersegment revenues786 190,239 191,025 
Total operating revenues1,882,528 258,999 2,141,527 
Operation and maintenance expense168,097 52,007 220,104 
Depreciation and amortization expense (2)
134,546 48,204 182,750 
Interest charges (2)
30,087 19,927 50,014 
Income tax expense (2)
86,432 31,089 117,521 
Other segment items (1)
1,082,723 2,839 1,085,562 
Net income (2)
$380,643 $104,933 $485,576 
Capital expenditures (2)
$594,853 $244,813 $839,666 
Reconciliation to consolidated total operating revenues:
Total operating revenues of reportable segments$2,141,527 
Elimination of intersegment revenues(191,025)
Consolidated total operating revenues$1,950,502 
 Six Months Ended March 31, 2026
 DistributionPipeline and StorageTotal of Reportable Segments
 (In thousands)
Operating revenues from external parties$3,134,960 $170,027 $3,304,987 
Intersegment revenues1,546 405,895 407,441 
Total operating revenues3,136,506 575,922 3,712,428 
Operation and maintenance expense321,286 85,646 406,932 
Depreciation and amortization expense (2)
292,739 97,593 390,332 
Interest charges (2)
53,575 28,569 82,144 
Income tax expense (2)
170,856 81,452 252,308 
Other segment items (1)
1,591,512 4,337 1,595,849 
Net income (2)
$706,538 $278,325 $984,863 
Capital expenditures (2)
$1,521,654 $515,281 $2,036,935 
Reconciliation to consolidated total operating revenues:
Total operating revenues of reportable segments$3,712,428 
Elimination of intersegment revenues(407,441)
Consolidated total operating revenues$3,304,987 

 Six Months Ended March 31, 2025
 DistributionPipeline and StorageTotal of Reportable Segments
 (In thousands)
Operating revenues from external parties$2,990,311 $136,190 $3,126,501 
Intersegment revenues1,552 378,199 379,751 
Total operating revenues2,991,863 514,389 3,506,252 
Operation and maintenance expense313,993 104,741 418,734 
Depreciation and amortization expense (2)
268,173 95,110 363,283 
Interest charges (2)
64,336 38,603 102,939 
Income tax expense (2)
138,102 58,750 196,852 
Other segment items (1)
1,586,403 607 1,587,010 
Net income (2)
$620,856 $216,578 $837,434 
Capital expenditures (2)
$1,220,502 $510,355 $1,730,857 
Reconciliation to consolidated total operating revenues:
Total operating revenues of reportable segments$3,506,252 
Elimination of intersegment revenues(379,751)
Consolidated total operating revenues$3,126,501 
(1)Other segment items consist of purchased gas cost, bad debt expense, taxes other than income taxes, the equity component of AFUDC, community support spending, and other segment income or expense deemed insignificant which are used to reach net income, our measurement of segment profit or loss.
(2)The totals of reportable segments for these items reconcile to consolidated totals.
Balance sheet information at March 31, 2026 and September 30, 2025 by segment is presented in the following tables:
 March 31, 2026
 DistributionPipeline and StorageTotal of Reportable Segments
 (In thousands)
Net property, plant and equipment (1)
$20,101,608 $6,968,336 $27,069,944 
Total assets$29,384,731 $7,408,408 $36,793,139 
Reconciliation to consolidated assets:
Total assets of reportable segments$36,793,139 
Elimination of intersegment assets(6,413,043)
Consolidated total assets$30,380,096 
 September 30, 2025
 DistributionPipeline and StorageTotal of Reportable Segments
 (In thousands)
Net property, plant and equipment (1)
$18,765,128 $6,527,862 $25,292,990 
Total assets$27,296,805 $6,896,646 $34,193,451 
Reconciliation to consolidated assets:
Total assets of reportable segments$34,193,451 
Elimination of intersegment assets(5,943,929)
Consolidated total assets$28,249,522 
(1)The total of reportable segments for this item reconciles to consolidated total.