Nov 5 (Reuters) - U.S. natural gas distributor Atmos

Energy ( ATO ) on Wednesday forecast higher earnings for fiscal

2026, after posting an over 30% jump in fourth-quarter profit,

as the utility ramps up capital spending on pipeline safety and

modernization.

The Dallas-based utility expects profit per share of $8.15

to $8.35 in fiscal 2026, up from $7.46 it earned this year.

U.S. natural gas output and demand are expected to hit

record highs in 2025, according to the U.S. Energy Information

Administration's Short-Term Energy Outlook.

Atmos also said it will raise its 2026 dividend by 14.9% to

$4.00 per share and invest about $4.2 billion next year as part

of a broader $26 billion capital program through 2030.

For the reported quarter, Atmos said its operating income

rose 18.6% to $219.5 million from last year.

Its quarterly earnings from its distribution segment rose

34% to $55 million, while its pipeline and storage unit earned

$120 million, 29% higher than last year.

The company's pipeline and storage segment comprises

primarily the regulated pipeline and storage operations of the

Atmos Pipeline-Texas division and its natural gas transmission

operations in Louisiana.

Atmos reported a net income of $175 million, or $1.07 per

share, for the quarter ended September 30, compared with $134

million, or 86 cents per share, in the same period last year.

It delivers natural gas to about 3.3 million distribution

customers in eight U.S. states and operates regulated utility

operations in Colorado, Kansas, Kentucky, Louisiana,

Mississippi, Tennessee, Texas and Virginia.