Feb 3 (Reuters) - Atmos Energy ATO.N 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 NGc1 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.

(Reporting by Katha Kalia in Bengaluru; Editing by Krishna Chandra Eluri)

((Katha.Kalia@thomsonreuters.com;))