Atmos Energy : Analyst Update March 2025

Our vision is for Atmos Energy to be the Safest provider of natural gas services. We will be recognized for Exceptional Customer Service, for being a Great Employer and for achieving Superior Financial Results.

March 2025

Leading Natural Gas Delivery Platform

Eight-state distribution territory

Business Mix

Intrastate pipeline system

~37% Pipeline

& Storage

~63%

Distribution

2025 Estimated Net Income

Diversified LDC platform in 8 states

• Largest pure-play natural gas LDC with over 3.3 million customers in 8 states
• ~75,000 miles of distribution and transmission mains
• ~65% of distribution rate base is located in Texas
• Blended allowed ROE of 9.8%
• 97% of rate base covered by all fuels legislation
• Constructive regulatory mechanisms reduce lag
• ~13 Bcf of working storage capacity

Favorably positioned pipeline spans

Texas shale gas supply basins

• ~5,700 miles of intrastate pipeline
• • Spans multiple key shale gas formations
  • Connection to major market hubs
• ~53 Bcf of working storage capacity
• Allowed ROE of 11.45%
• Margin derived from tariff-based rates primarily serving Mid-Tex and other LDCs

As of March 24, 2025

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Sustainable Performance Supported By Focused Business Model

Attractive pure-play total return supported by strong financial foundation

Diversified and

growing jurisdictional

footprint

Transparent Capital Spending Horizon

Constructive

Regulation Focused

on Safety and

Reliability

Sustainability

Integrated Into

Strategy

• Safety-driven,organic growth strategy supports 6% - 8% earnings per share and dividend per share growth through Fiscal 2029
• 100% of earnings from fully regulated, leading natural gas delivery platform
• 22 consecutive years of EPS growth; 41 consecutive years of dividend growth
• Strong investment-grade credit ratings/liquidity
• Regulated distribution assets in 8 states serving over 3 million customers
• 97% of rate base in states that offer policy support for investment in natural gas infrastructure
• Strong customer growth
• Favorably positioned regulated pipeline spans Texas shale gas supply basins
• Comprehensive risk-based replacement program
• Further enhance resiliency and supply reliability while reducing methane emissions
• Support strong customer growth in our existing footprint
• Annual filing mechanisms in most jurisdictions offer regular, consistent rate adjustments
• Earning on ~90% of annual capex within 6 months; ~99% within 12 months
• Significant percentage of revenue earned through fixed or tariff-based charges
• Formal Board of Director oversight over sustainability
• Comprehensive plan to reduce environmental impact from operations
• Safely providing reliable, efficient and abundant natural gas with a lower carbon footprint than electricity
• Investing in the communities we serve

As of February 5, 2025

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Safety Driven, Organic Growth Strategy

Constructive Regulatory Mechanisms Support Efficient Conversion of Safety and Reliability Investments into Financial Results

• $24 billion in capital investment through 2029; >86% allocated to safety

Rate Base	$36.0B-
	$38.0B

Constructive rate mechanisms

that reduce regulatory lag

Annual Capex Recovery

6% - 8% Consolidated EPS

growth

Earnings per Share $9.15 - $9.55

$7.05 -

$18.8B

$16.6B

FY2023 FY2024 FY2029E

Distribution		Pipeline

~90%

Within 0 - 6 Months

Within 7 - 12 Months

Greater than 12 Months

$6.831

$7.25

FY2024 FY2025E FY2029E

1. Inclusive of $0.17 of one-time benefits. See footnote 3 on slide 35.

As of February 5, 2025

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Constructive Regulation Focused on Safety and Reliability

~90% of Annual Capital Spend Begins to Earn Within Six Months

		Regulatory Mechanisms	Recovery Method	Service Territory Detail		CapEx
			Deferral/	Annual	General		Rate Base1	2025E
Jurisdiction	Infrastructure	Forward-	Meters (000s)			% of
Filing	Case	($MM)		($MM)
			Looking
							Total
Texas
•	Mid-Tex	8.209		RRM/DARR/	-	1,804	8,100		43	1,675-1,725
GRIP
•	APT	GRIP	-	GRIP 2	-	NA	4,900		26	875-885
•	West	8.209		RRM/GRIP	-	315	1,200		6	225-235
	Texas
Louisiana	RSC		RSC	-	361	1,300		7	195-205
Mississippi	SIR		SRF/SIR	-	251	1,100		6	215-225
Kentucky	PRP		PRP		177	680		4	65-75
Tennessee	-		ARM	-	161	630		3	85-95
Kansas	GSRS	-	GSRS		139	360		2	40-50
Colorado	SSIR		SSIR		130	300		2	35-45
Virginia	SAVE	-	SAVE		24	90		1	10-15

1. Represents an estimate of rate base as of September 30, 2024
2. Requires a rate case every five years

As of February 5, 2025

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Constructive Regulation Focused on Safety and Reliability

Ongoing Modernization Supported By Efficient Recovery Mechanisms

Constructive Regulation Supports

• Pipe replacement via risk models and industry identified materials
• Performance of necessary maintenance & monitoring work
• Employee training to improve safety
• Compliance with evolving rules and regulations

Constructive Regulation Provides

• Reduced Regulatory Lag
• • Annual mechanisms / Infrastructure mechanisms
  • Forward-lookingtest periods
  • Expense deferrals
• Revenue Stability
• • Base charges - 62% of residential distribution revenue1
  • WNA - covers 96% of distribution revenue1
  • Bad debt recovery covers 89% of distribution customers, insulating revenue from the commodity portion of bad debt expense
  • Pipeline & Storage segment - tariff-based revenue

• More predictable earnings and cash flow

• Regular, consistent rate adjustments

• Smaller annual impact to customer bills

1. Revenue excluding gas costs

As of March 24, 2025

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Leading Natural Gas Delivery Platform

97% of Rate Base in states that offer policy support for investment in natural gas infrastructure

Passed	Passed	Proposed Legislation
(Atmos
Jurisdictions)
As of March 24, 2025		Page 7

Leading Natural Gas Delivery Platform

Diversified LDC Platform in Eight States

• Largest pure-play natural gas LDC with over 3 million customers

• Largest Natural Gas Distributor in Texas with ~ 2.1 million customers

• ~75,000 miles of distribution and transmission mains

• Connected to 38 different pipelines across 8 states providing supplier diversity

• Blended allowed ROE of 9.8%

• Constructive regulatory mechanisms reduce lag

• ~65% of revenues earned in the first 6 months of the fiscal year

• $13.8 billion estimated rate base as of September 30, 2024

• Represents 67% of consolidated net income

As of March 24, 2025

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Modernizing Our Distribution System

~$18 Billion Capital Plan Through 2029; > 80% Focused On Safety and Reliability

• Replace 4,500 - 5,500 miles of distribution system pipe
• • 6% - 8% of total system
• Replace 120,000-170,000 steel service lines
• • 15% - 20% reduction
• Install wireless meter reading
• • ~75% anticipated WMR coverage

Distribution Miles Replaced1

1250

1000

750

500

250

0

2017	2018 2019 2020 2021		2022 2023 2024 25E-29E
Bare	Steel, Cast Iron, Vintage Plastics		Other Risk-Based Materials

Inventory of Steel Service Lines2

• Support Customer Growth

Thousands

1,2001,167

1,000

800

600

400

200

0

647

~500-530

1. Fiscal year basis

2012

2024

2029E

2. 2024 DOT Report

As of February 5, 2025

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Leading Natural Gas Delivery Platform

APT is a Favorably Positioned Intrastate Pipeline that Spans Texas Shale Gas Supply Basins

• Regulated by the Railroad Commission of Texas

• Established to provide gas transportation service for Mid-Tex and other LDCs

• 100% of LDC revenue derived from tariff- based rates

• ~5,700 miles of intrastate pipeline

• Spans multiple key shale gas formations

• Connections at all 3 Texas Hubs - Waha, Katy & Carthage

• Transported approximately 831 Bcf in Fiscal 2024

• Average throughput of 2.3 Bcf/d

• Five storage facilities with 53 Bcf of working capacity

• Allowed ROE of 11.45%

• Majority of revenue is derived from tariff- based rates primarily serving Mid-Tex and other LDCs

• $4.9 billion estimated rate base as of September 30, 2024

• Represents ~33% of consolidated net income

As of March 24, 2025

Page 10