Feb 3 (Reuters) - Atmos Energy ( ATO ) reported a 14.5%

rise in first-quarter profit on Wednesday, as the natural gas

utility benefited from strong demand for its gas distribution

and pipeline facilities.

Natural gas output ‌and demand are expected to reach record

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

Administration's Short-Term Energy Outlook.

At the ‍same time, U.S. natural gas utilities ⁠are

experiencing steady ⁠demand growth as surging power needs from

data centers drive up electricity ‌consumption, further boosting

gas-fired generation.

U.S. natural ​gas futures rose over 11% sequentially

in the fourth quarter, breaking a falling streak that ⁠started in

the second quarter.

Atmos ‍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.

The company's pipeline and storage segment primarily

comprises operations at the Atmos Pipeline-Texas division and

its natural gas transmission operations in Louisiana.

Atmos said quarterly earnings from its ​distribution ‍segment

rose 10.5% to $349.2 million, while its pipeline and storage

unit earned $165.5 million, which was 15.4% higher ​than a year

earlier.

The Dallas, Texas-based company reported a net income of

$403 million, or $2.44 per share, for the quarter ended December

31, compared with $352 million, or $2.23 per share, a year

earlier.

The company, which also operates about 5,700 miles of

transmission ​pipelines in Texas, reported that its operation and

maintenance expenses rose to $229.8 million in the reported

quarter, compared with $207 million a year earlier.