Atmos Energy raises annual profit forecast on strong natural gas demand

May 6 (Reuters) - Atmos Energy ATO.N raised its annual profit forecast on Wednesday after reporting a rise in second-quarter earnings, as it expects robust demand for its natural gas distribution and pipeline facilities.

With Big Tech pouring billions of dollars into artificial intelligence technologies and the infrastructure needed to develop them, utilities have witnessed a huge surge in demand for power.

U.S. power consumption, which hit its second straight annual record high in 2025, is expected to rise further in 2026 and 2027, according to the Energy Information Administration (EIA).

For the second quarter, Atmos' operating income from its distribution segment rose 17% to $565.9 million, while its pipeline and storage unit earned $198.9 million, 37% higher than a year earlier.

The company distributes natural gas to more than 3.3 million customers across Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, Texas and Virginia.

It reported a net income of $582 million, or $3.47 per share, for the three months ended March 31, compared with $486 million, or $3.03 per share, a year ago.

The Dallas, Texas-based company now forecasts full-year profit between $8.40 and $8.50 per share, compared with its prior outlook of $8.15 to $8.35 apiece.

Analysts expect the utility to post full-year adjusted earnings of $8.25 per share, according to data compiled by LSEG.