Operator: For joining us, and welcome to Atmos Energy Corporation's fiscal 2026 Q4 earnings conference call. After today's prepared remarks, we will host a Q&A session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Jennifer Wernicki, Director of Investor Relations and Assistant Treasurer. Please go ahead.
Jennifer Wernicki: Thank you, Al. Good morning, everyone, and thank you for joining us. With me today are Kevin Akers, President and Chief Executive Officer, and Chris Forsythe, Senior Vice President and Chief Financial Officer. Our earnings release and conference call slide presentation, which we will reference in our prepared remarks, are available at atmosenergy.com under the Investor Relations tab. As we review our financial results and discuss future expectations, please keep in mind that some of our discussion might contain forward-looking statements within the meaning of the Securities Act and the Securities Exchange Act. Our forward-looking statements and projections could differ materially from actual results. The factors that could cause such material differences are outlined on slide 39 and are more fully described in our SEC filings. I will now turn the call over to Kevin.
Kevin Akers: Thank you, Jennifer, and good morning, everyone. You heard a new voice to introduce the call today. Jennifer is our Director of Investor Relations and Assistant Treasurer. Recently, Dan Meziere, Vice President, Investor Relations and Treasurer, announced that he will retire in early 2027 after a 25-year career with the company. Richard Thomas, Vice President, Financial Services, has assumed responsibility for our treasury and investor relations activities effective 1 October, and he is joining us on the call today as well. As next Wednesday is Veterans Day, I would like to take this opportunity to thank those who have served in our armed forces and those currently serving. Approximately 300 of our Atmos Energy teammates are a part of the 17 million Americans who bravely served our country. Thank you all for your service. Yesterday, we reported diluted earnings per share of $8.49.
Kevin Akers: This marks the 24th consecutive year of earnings per share growth. Fiscal 2026 also represents the 42nd consecutive year of dividend growth. Our fiscal year results reflect the focus and dedication of the entire Atmos Energy team and their continued successful execution of our proven strategy of investing in our natural gas distribution, transmission, and storage systems to safely provide reliable natural gas service to our growing service territory. Their exceptional work has us well-positioned for fiscal 2027 and beyond. During fiscal 2026, we continued to see steady, diversified customer growth, adding approximately 49,000 residential customers, with over 37,000 of those new customers located here in Texas. We also added nearly 3,200 commercial customers and 17 industrial or large-load customers during fiscal 2026. When these industrial customers are fully operational, they are anticipated to consume approximately 2 BCF of gas annually.
Kevin Akers: Over the last five years, we have added over 300,000 residential and commercial customers and added 190 industrial or large-load customers with an estimated annual load of 54 BCF when fully operational. On a volumetric basis, that is equivalent to adding nearly 1 million residential customers. These large-load customers are diversified across several industries, including aluminum, steel, EV battery manufacturing, food processing, and power generation. This continued demand from all customer classes demonstrates the value and vital role natural gas plays in economic development across our Atmos Energy service territory. According to the Texas Workforce Commission, for the 12 months ending 30 September, the seasonally adjusted number of employed Texans reached 14.5 million. Texas again added jobs at a faster rate than the nation over the last 12 months, growing at a rate of 1.1%.
Kevin Akers: Texas was recently ranked the best state for business for the 22nd year in a row by Chief Executive Magazine, based on their annual survey. Finally, according to recently issued 2025 US Census Bureau information, the Dallas-Fort Worth metroplex has been the fastest-growing major metro area in America since 2020. The Texas population now stands at approximately 32 million people, and projections estimate the DFW metroplex will become the third-largest major metropolitan area within a decade. APT continues to prepare for this anticipated growth by enhancing the safety, reliability, versatility, and supply diversification of its system. In fiscal 2026, APT completed 9 interconnect projects, adding almost 1.4 BCF of additional natural gas supply to the APT system. These investments further enhance APT's ability to serve the LDC customers behind its city gates.
Kevin Akers: During our fiscal Q4, APT continued work on several projects to enhance system reliability and capacity across its footprint. They completed the installation of 29 miles of 36-inch pipeline to connect 2 adjacent compressor stations to the Tri-City storage facility, construction of a bilateral compressor station in Carthage, Texas, east of the DFW metroplex, that will increase the capacity of our 36-inch Line S2, and completion of the final phase of the WA Loop project on the western side of the DFW metroplex that will install 15 miles of 36-inch pipe and complete a 36-inch pipeline loop. All of these projects are scheduled to be in service by the end of the calendar year. Additionally, planned integrity work on Cavern 1 at APT's Bethel Salt Dome storage facility is expected to be completed in early 2027 and placed in service by the end of calendar 2027.
Kevin Akers: Finally, APT's annual Rider REV tariff was filed and approved. As of 1 November, customers will receive $165 million in revenue credit over the 12 months ending 31 October 2027. With the approval of this filing, customers will have received nearly $317 million in savings through the Rider REV mechanism from November 2023 through October 2027. Turning to our updated five-year plan through fiscal 2031, while always being mindful of customer affordability, timely recovery of our investments, and maintaining a strong balance sheet, safety and reliability continue to be the focus as we execute on our system modernization strategy. Our robust five-year planning process has identified the need to invest nearly $29 billion, with approximately 88% of that planned investment allocated to safety and reliability.
Kevin Akers: This investment will support the continued modernization of our natural gas distribution, transmission, and storage systems, and support the growing natural gas demand across our service territory. Approximately $23 billion, or 80% of our total planned capital spending, is expected to be incurred here in Texas. We believe the successful execution of our strategy will support diluted earnings per share growth at 6% to 8% from the midpoint of our fiscal 2027 EPS guidance, and we intend to grow the dividend in line with diluted earnings per share growth. I'll now turn the call over to Chris, who will provide some additional color on fiscal 2026 and the FY 2027 five-year plan. I will return later with some closing comments. Chris?
Chris Forsythe: Thank you, Kevin, and good morning, everyone. We appreciate you joining us this morning. Before getting into some of the details of our FY27 five-year plan, I want to share a few highlights from fiscal 2026. As Kevin mentioned, fiscal 2026 diluted earnings per share was $8.49. Included in this amount was $175 million in pre-tax deferrals under Rule 7.7102. Approximately $100 million is recognized in our distribution business, and the remaining $75 million is recognized at APT. Year-over-year, deferrals under Rule 7.7102 increased by $149 million. Consolidated capital spending increased 17% to $4.2 billion, in line with our expectations. 85% of this spending was dedicated to improving the safety and reliability of our system. This spending increased rate base by 15% to an estimated $25 billion as of 30 September 2026.
Chris Forsythe: With this capital spending, we replaced nearly 1,100 miles of distribution and transmission pipe and over 59,000 service lines. Consolidated O&M was $875 million, which was in line with fiscal 2025. Increases in compliance and safety-related spending in our distribution segment, maintenance spending at APT, and administrative and employee costs were offset by Rule 7.7102 deferrals. We had another busy regulatory calendar in fiscal 2026, with the implementation of $395 million in annualized operating income increases during the fiscal year. Finally, we completed $2.4 billion in long-term financing. We finished the fiscal year with an equity capitalization of 60% and approximately $3.8 billion of available liquidity, which leaves us well-positioned to support our future operations. Included in this amount is $871 million in forward equity proceeds priced through our ATM. This amount satisfies over half our anticipated fiscal 2027 equity needs.
Chris Forsythe: Looking forward, we initiated our fiscal 2027 diluted earnings per share guidance in the range of $9.05 to $9.25. With anticipated 6% to 8% annual diluted earnings per share growth, by the midpoint of this guidance range, we anticipate diluted earnings per share in fiscal 2031 to be in the range of $12.35 to $12.55. Additionally, this week, Atmos Energy's board of directors approved a 172nd consecutive quarterly cash dividend, with an indicated fiscal 2027 annual dividend of $4.36, a 9% increase over fiscal 2026. This is the 43rd consecutive year of dividend per share growth. We plan to grow our dividend in line with diluted earnings per share growth over the five-year plan.
Chris Forsythe: We are anticipating approximately $29 billion of capital spending in the five-year plan, with over 85% of that spending allocated to safety and reliability spending. Capital spending is expected to grow 11% to 13% per year. Approximately $23 billion is currently allocated to Texas. Of this amount, approximately $16 billion is planned in our Texas distribution divisions, and approximately $7 billion is planned at APT as it continues to focus on gas supply reliability and supply diversification while fortifying its system to support the growth with its LDC customers. We believe this level of spending will support rate base growth of about 12% to 14% per year. By the end of fiscal 2031, we anticipate rate base to increase from approximately $25 billion as of 30 September to approximately $46 billion.
Chris Forsythe: Additionally, we are anticipating approximately $700 million in federal and state income tax payments in the five-year plan. Approximately $500 million of this amount relates to the corporate alternative minimum tax, which we will begin paying in fiscal 2027. From a revenue perspective, we have assumed normal weather, market conditions, and modest customer growth in both our segments in our five-year plan. Additionally, as expected, spreads in APT's through-system business returned to more historical norms during our fiscal Q4. We have planned for those market conditions to continue into fiscal 2027. We will also continue to execute our normal regulatory strategy of implementing approximately 20 rate filings per year. We anticipate that over 98% of these planned outcomes in the five-year plan are expected to be achieved through these annual filing mechanisms. Our five-year plans assume we will maintain our existing ROEs, capital structure, and regulatory features.
Chris Forsythe: We have not included in the plan the approval of any new regulatory mechanisms or regulatory asset treatment for incurred costs. Since the beginning of fiscal 2027, we have implemented $264 million in annualized operating income increases in our distribution segment. Of this amount, $255 million relates to the implementation for annual rate review mechanisms in our Texas distribution operations. Additionally, we have assumed 4% annual O&M inflation driven by compliance-based activities that address system safety, system monitoring, and damage prevention. As well, we are factoring in increases for employee-related costs. For fiscal 2027, we anticipate O&M, excluding bad debt expense, to range from $870 million to $890 million. Finally, this five-year plan includes approximately $17 billion in incremental long-term financing to support our operations and cash needs.
Chris Forsythe: As a reminder, this incremental financing is included in our diluted earnings per share guidance for fiscal 2027 through fiscal 2031. We will continue to use a combination of long-term debt and equity to preserve the strength of our balance sheet and minimize the cost of financing for our customers and overall financing risk. Our current weighted average cost of debt is 4.38%, and our weighted average maturity is currently 15.4 years. We believe our current maturity profile continues to be very manageable. We continue to anticipate meeting all of our equity needs through our ATM program. We ended fiscal 2026 with about $430 million remaining under our existing ATM program. We intend to file for a new $1.7 billion ATM program with the SEC in early fiscal 2027. Thank you for your time this morning. I will turn the call back over to Kevin for some closing remarks.
Kevin Akers: Thank you, Chris. Our operational and financial performance in fiscal 2026 continues to position us well for sustained success. Our five-year plan reflects our continued commitment to meeting the safety, reliability, and economic development expectations of our customers, communities, regulators, and other key stakeholders across our service territory. The fundamental strengths of Atmos Energy remain the same and will continue to differentiate us. Those being, we operate in diversified and growing communities that are supportive of our natural gas and our investment in natural gas infrastructure to supply their growing economy and energy needs. That 96% of our rate base is situated in six of our eight states that have passed customer choice or all fuels legislation.
Kevin Akers: We operate in regulatory jurisdictions that support the reliability, versatility, abundance, and affordability of natural gas, and the modernization of our natural gas distribution, transmission, and storage systems to provide safe and reliable delivery. We have a track record of consistent financial performance that reflects disciplined execution of our operating, regulatory, and financial plans. This discipline has supported 24 consecutive years of diluted earnings per share growth and 42 consecutive years of dividend growth. We maintain a strong balance sheet with significant liquidity and significant financial flexibility. The strength of our balance sheet will continue to support our long-term investments. Our residential customers' average monthly natural gas bill is again expected to remain the lowest utility bill in the home. Finally, our 5,500 employees proudly serve our customers and communities every day. Their dedication continues to be guided by the enduring values established by our founding chairman, Charles K.
Kevin Akers: Vaughn, of honesty, integrity, and good moral character. Those differentiators will continue to support the vital role we play in every community to safely deliver reliable, affordable, and efficient natural gas to homes, businesses, and industries to fuel our energy needs now and in the future. We appreciate your time this morning. We will now open the call for questions.
Operator: We will now begin the question-and-answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Constantine Lednev with Wells Fargo. Your line is now open. Please go ahead.
Constantine Lednev: Hi. Good morning, team. Congrats on the quarter.
Kevin Akers: Thank you. Good morning.
Chris Forsythe: Good morning.
Constantine Lednev: Maybe just starting off on the new CapEx plan and associated financing, just the proportional increase is lower on the incremental CapEx optically. Is there anything specific that's driving the funding needs lower? Is it fair to assume that the plan still maintains a conservative equity capitalization throughout?
Chris Forsythe: Well, Constantine, I mean, really, the capital plan is reflective of the needs of the system, it's effectively a roll-forward of the planning process that we go through every year. From there, once we've identified what those capital needs, again, $25 billion to $29 billion over the next five years, we solve for the financing needs, keeping the consideration the strength of our balance sheet, our equity capitalization layer. We're very comfortable with it being around 60%. We found that has been very economical for us in terms of long-term debt financing. It's also given us the strength to weather unexpected economic conditions over the last several years. That's why we're continuing to use the ATM and the long-term debt in a very balanced fashion to maintain the strength of that balance sheet.
Chris Forsythe: We feel that is beneficial for our customers in the long term, as well as for our ability to, like I said, withstand variable economic conditions.
Kevin Akers: Yeah, I would add, Constantine, that again, our robust planning process, as we talked about in our opening comments, reflect the needs of the system. Every year, we go through a one, three, five, 10-year outlook at our system based on population trends, growth, demand across the system, new loads coming in, backed up by internal engineering analysis, operational subject matter expert support, and then validated by third-party outside engineering experts to take a look to verify our assumptions for the system and what the system needs on a go-forward basis. Additionally, we do the same thing on the gas supply side of the business as well. So, all of this planning, whether it is capital or it is O&M, is on a system need, system demand basis for that period of time that we are looking at.
Constantine Lednev: Thanks for that. And maybe just to clarify a fine point, you mentioned kind of the ATM as the preferred funding method for the equity side. Is there a point at which you kind of scale beyond that? Would you look at other options like hybrids, especially as we are in a tighter capital markets environment versus probably last year and a couple years before?
Chris Forsythe: Yeah. Good question, Constantine. Our treasury team is looking at all the options every day, every month, as we think about financing this plan. The ATM has been very effective for us, very cost-effective. It has given us a lot of flexibility, and that is why you see us using that ATM to get as far ahead of pricing our future pricing equity needs to have that certainty in place. It certainly helps us from a planning perspective. But we will continue to evaluate that. Currently, the options we feel that are the most economic for our customers and for the company continue to be the current strategy of using the ATM complemented with the issuance of long-term debt throughout the year.
Constantine Lednev: Okay, perfect. Just a quick regulatory backdrop question. Obviously, a lot of changes in Texas, RRC. Obviously, a lot of data center focus in government, but do you see any shifts that would change your regulatory strategy, either from a timing or affordability standpoint?
Kevin Akers: Well, Constantine Lednev, the short answer is no. Atmos Energy has been around for 43 years, and we have had the privilege of working over that period with various groups, Republicans, Democrats, independents, at the city level, the county level, state level, federal level. It does not change our mission, our vision to be the safest provider of natural gas services. It does not change the construct we have with our communities to deliver safe and reliable natural gas service to them or to help and support in economic development. So, we will continue, as we do every year in and year out, sometimes on a monthly basis, continue to meet with our key stakeholders and help them understand what we do, why we do it, why we are important to the community, and why natural gas is an important component of an overall energy portfolio.
Constantine Lednev: Excellent. No, I appreciate that. Really, thanks for the questions. Thanks for the time.
Kevin Akers: Thank you.
Chris Forsythe: Thank you.
Operator: Your next question comes from the line of Julien Dumoulin-Smith with Jefferies. Your line is now open. Please go ahead.
Luke Fenker: Hey, guys. It is actually Luke Fenker on for Julien. Hey, nicely done on the quarter. Just wanted to ask really quickly on how 2027 drivers percolate to 2028. I mean, clearly FY27 benefits from Mid-Tex and West Texas going into effect on 1 October. I know it is early, but how should we think about the cadence for 2028? Could you see year-over-year growth maybe a bit lower as that step-up lapse, or does filing and your capital deployment keep you in that range?
Chris Forsythe: Well, good questions, Luke. I mean, again, as we talked about just a few minutes ago, we are guiding 6% to 8% off the midpoint of the range. As I also mentioned, the regulatory recovery process, nearly 98% of what we anticipate that recovering through regulatory mechanisms is coming through annual filing mechanisms. We currently do not see the annual filing mechanism cadence calendar, if you will, changing at this point in time. That is what the plan is called for. If you think about the increase in capital from 2026 into 2027, the financing or O&M, all that gets factored into what we anticipate those annual filing mechanisms will look like. We model that through the five-year plan, and we assume execution on the same timeline year in and year out.
Chris Forsythe: Again, with the existing regulatory features, if you will, that we have, a rate of return, capital structure, existing deferral mechanisms, and that type of thing. That is why we have confidence in the five-year plan of executing in that 6% to 8% range through 2031.
Luke Fenker: Got it. Okay, thank you. Then maybe just on WA Loop. You have talked about WA Loop spreads tightening as new takeaway comes online. How much more tightening are you assuming in your forecast? I mean, should we think about APT growth tightening further as spreads kind of narrow a bit? Just getting a sense check on how things have been.
Kevin Akers: Well, let us reset what APT is again. APT exists to serve the LDC customers behind its gates, and we just talked about the population growth and trending here in Texas, and those LDCs that are behind APT. The way we think about it, we continue to think about it, and have communicated on almost all of our calls, is that we look at the benchmark. That is what we set every year when we set the budgetary plan out there. We do not have a crystal ball to project where we think the spreads are going or pricing is going. We do know that a lot of this is going to be seasonally based, so I think you take a wait and see and watch approach right now is how the weather is going to start. Is it going to have a cool start to the year?
Kevin Akers: Is it going to have a warmer start to the year? Then see where we go from there. As we begin this heating season coming up, as you have probably seen in various companies' reports, storage is nearly full or almost full at this point of the year. Pricing appears to be in a good point. Again, I think you look to the benchmark for us, and then we will watch and see where pricing goes from there and what we can do with storage as we move throughout the heating season.
Chris Forsythe: Yeah, and Luke, I will just remind you too, again, it is under APT's regulatory construct, 85% to 90% of APT's revenues come through a fixed delivery charge that it charges to its 11 LDC customers. You are now looking at 10% to 15%, which is outside of that regulatory construct, and over half of that is associated with contracts that we have already had in place that are fixed in nature. You are really talking about a relatively small portion of APT's revenue streams that come from this through-system business, which is a daily business. As Kevin said, there are a number of factors that are out there. That is why we guide back to the benchmark at the end of the day. We certainly had some positive tailwinds this last year as a result of the spread dynamic that we have been talking about.
Chris Forsythe: But going forward, as you alluded to with the through-system capacity coming online from other pipelines in the vicinity, we anticipate those market conditions to be more in line with historical norm.
Kevin Akers: Yeah, and Luke, I will just close that out with APT and our team there review the maximum daily quantities on an annual basis post-winter every year for each of the LDCs that are behind the system to make sure the usage is in line with the contractual demands that are out there and reset if we need to for those LDCs.
Luke Fenker: Got it. Okay, yeah, that is all very helpful. If I could just squeeze one tiny one on O&M, right? I mean, great to see that it is essentially flat year-over-year into 2027. Is that a new run rate that maybe you can carry forward, or is that maybe a few things that line up to get 2027 before costs go back to that 4% range? I am just asking if it is structural or maybe just a one-off.
Chris Forsythe: No, it is more reflective of the Rule 7.7102 deferrals that we have been talking about the entire fiscal year. As I said, we are guiding off of FY2026 levels at a 4% annual increase in this five-year plan.
Kevin Akers: I will add to that again, as we have talked about on several calls, with growth, with system expansion, particularly here in Texas, if you drive around Texas much, you can see all the new infrastructure that is going in from highways and roads and bridges and other utilities being installed as well. That comes with a portion of O&M cost, if you will. What I mean by that is line locating services, system monitoring services, those sort of things as well are associated with growth itself at the end of the day. We continue to monitor that, look for opportunities to balance those contracts that are provided by outside services, or what of those things we can bring in-house or spread across our system as well. So, we look at that on an annual basis.
Luke Fenker: Awesome. I will leave it there. Thanks so much, guys. Nice to see you on again.
Kevin Akers: Thank you.
Chris Forsythe: Thank you.
Operator: Next question comes from the line of Richard Sunderland with Truist Securities. Your line is now open. Please go ahead.
Richard Sunderland: Hey, good morning. Can you hear me?
Chris Forsythe: Yes, good morning.
Richard Sunderland: Great. Thank you for the time. I will start on another kind of 2027 and beyond consideration. The Texas deferrals baked into 2027, is that essentially flat to the $175 million pre-tax you called out for 2026? I know you have talked in the past about 2026 is the full step-up, but just thinking about, I guess, budget assumptions versus how the work may actually play out. What are you baking into 2027, and how might that actually trend over the course of the year? Thank you.
Chris Forsythe: Okay. Yeah, Richie, thanks for the question. Yeah, so again, the deferrals, and it is not just the Rule 7.7102 deferrals. Remember, we have deferrals under AFUDC, we have deferrals under Rule 8.209 in Texas, as well as in Tennessee and Louisiana's mechanisms. So, we talked about an 11% to 13% capital increase per year over this five-year plan. The deferrals, or the capital expenditures that qualify for those deferrals, will grow in line. It will not be exactly 11% to 13% because not all of our capital spending are subject to those qualifying deferrals, but that would be a reasonable guide to think about that on an all-in total basis. That is AFUDC, Rule 8.209, Rule 7.7102, as well as the deferrals that we have in Tennessee and Louisiana.
Richard Sunderland: Okay, understood. So just to make sure I am following, there is, I guess, an inflationary element of the deferral benefit over time as your CapEx grows. But in terms of contribution to growth this year over last, or I should say on 2027 versus 2026, there is no sort of outsized tailwind or headwind that you are baking into that guidance?
Chris Forsythe: No, no. It is more back to that steady run rate that you saw prior to fiscal 2026, and really the implementation of Rule 7.7102.
Richard Sunderland: Perfect.
Chris Forsythe: So, we're not going to see
Richard Sunderland: Yeah
Chris Forsythe: $149 million year-over-year increase again.
Richard Sunderland: No, that's helpful color. Just a clarification. Your slide disclosure talks about 90%, or I guess greater than 90% of annual CapEx begins recoveries within six months from the end of a test year. I think that was 95% in your deck a year ago. Is that reflective of any shift in capital composition or other kind of notable plan changes this go-round versus last year? Just curious about the change in that 90% versus 95%.
Chris Forsythe: Well, the 95% to 90% shift occurred following the completion of the Mississippi general rate case in November, so about a year ago now. They shifted from a forward look to a historical look in that last regulatory decision. We have challenged that decision with the Mississippi Supreme Court, and we are awaiting the court's ruling on that.
Richard Sunderland: Got it. Very helpful. Then, I do not know if Dan's on, but if he is, thanks for all the help over the years, and best of luck in retirement.
Chris Forsythe: Thank you.
Operator: Your next question comes from the line of Dylan Lipner with Mizuho. Your line is now open. Please go ahead.
Dylan Lipner: Hey, congrats on a good quarter, guys. Just kind of wanted to keep piggybacking off of Richard right there. I also noticed that annual rate base growth rate kind of dropped from 13% to 15% to 12% to 14%. I just kind of want to see what's driving that lower growth despite a more capital spend going through 2027 through the rest of the plan.
Chris Forsythe: Yeah, again, it is as we talked about with the first question on today's call. It is all based off of system need. What we go through our rigorous process, again, of planning, outside consulting, internal review, where we see population trending, analysis, performance of the system, demand, all those figure in to the needs of the system, and then those projects are laid out over a one, three, and five-year period as part of that planning process. It is all needs-driven on the system. Again, we do not have any bet-the-company projects in there. These are all small projects in nature. The largest we will have is on APT, probably in the 40 to 60-mile range. We do not do 400 to 600-mile type projects.
Chris Forsythe: These are all of the nature we can phase in over time, we can execute on in a reasonable timeframe to meet the demands and expectations of our customers and our community.
Dylan Lipner: Got you. Understood. Then second one here. A bunch of your peers in Texas have cited the inbound interest tied to LNG, CNG, and other large load ops. Are you guys seeing similar inquiries across Atmos, and what does the pipeline look for large load customers right now as we stand going into 2027?
Chris Forsythe: As we talked about at the top of my remarks there, we continue to get industrial inquiries across our system, not only in Texas, not only on APT system, but Mid-Tex, in Kentucky, Tennessee, Virginia, and Mississippi as well. We get industrial inquiries of the nature that I talked about there. We continue to have a backlog of projects of several dozen. I will not get into specifics because we do not talk about those until the contracts are signed and we are ready to start delivery. But we will have a backlog of projects, economic development projects, individual projects of various types and sizes of interest on our system that we are evaluating from load perspective, from location perspective, those sort of things. So, we continue to have a good interest across the system on large load customer inquiry.
Dylan Lipner: Great. Should we just expect a more maybe fulsome update through 2027 as most of those discussions kind of come more to advancements and contractual obligations?
Chris Forsythe: Yeah, just like we do each quarter, I will give you an update on growth across the system, which will include industrial or large load customers there as well. If we have anything of significance where the contract is signed and we are ready to communicate about that, the load is of short-term nature in starting, we will certainly update this group or on our calls.
Dylan Lipner: All right, great. I appreciate it, guys. Have a good one.
Chris Forsythe: Thank you.
Operator: There are no further questions at this time. I will now turn the call back to Jennifer Wernicki for closing remarks.
Jennifer Wernicki: We appreciate your interest in Atmos Energy, and thank you for joining us. Have a great day.
Operator: This concludes today's call. Thank you for attending. You may now disconnect.
Operator: This event has now concluded. Thank you for joining Atmos Energy Corporation fiscal 2026 Q4 earnings conference call. The line will disconnect automatically.
