Nov 6 (Reuters) - Atmos Energy (ATO.N) , opens new tab raised its quarterly dividend for 2025 on Wednesday and reported a rise in fourth-quarter profit, as the natural gas utility was helped by higher rates.

The company said higher rates in the distribution segment boosted its operating income by $33.4 million in the quarter, helping it report about a 20% rise in the segment at $64.6 million, from the previous year.

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 quarterly operating earnings in its pipeline and storage unit rose 20.2% to $120.4 million, from the previous year.

Lower storage build and hotter weather in the quarter boosted the amount of gas needed to keep air conditioners humming, creating demand for natgas pipelines in the U.S.

The gas utility also raised its dividend to 87 cents per share for fiscal 2025, 8.1% higher than fiscal 2024.

The company said it expects diluted earnings of $7.05 to $7.25 per share and capital expenditure at about $3.7 billion for fiscal 2025.

The Dallas, Texas-based company's net income was at $134 million, or 86 cents per share, in the quarter ended Sept. 30, compared with $119 million, or 80 cents per share, a year earlier.

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https://www.reuters.com/business/energy/atmos-energy-reports-rise-q4-profit-higher-rates-raises-2025-dividend-2024-11-06/