Atmos Energy : Analyst Update May 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.

May 2025

Leading Natural Gas Delivery Platform

Eight-state distribution territory

Business Mix

~37% Pipeline & Storage

~63%

Distribution

2025 Estimated Net Income

Intrastate pipeline system

Diversified LDC platform in 8 states

Favorably positioned pipeline spans Texas shale gas supply basins

• 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

• ~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

  
  
  Sustainable Performance Supported By Focused Business Model

  Attractive pure-play total return supported by strong financial foundation

  • 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

    Diversified and growing jurisdictional footprint

  • 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

    Transparent Capital Spending Horizon

  • Comprehensive risk-based replacement program

  • Further enhance resiliency and supply reliability while reducing methane emissions

  • Support strong customer growth in our existing footprint

    Constructive Regulation Focused on Safety and Reliability

  • 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

    Sustainability Integrated Into Strategy

  • 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

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

Constructive rate mechanisms that reduce regulatory lag

6% - 8% Consolidated EPS growth

Rate Base

$36.0B-

$18.8B

$16.6B

$38.0B

Annual Capex Recovery

Earnings per Share $9.15 -

$7.20 -

$7.30

$6.83

1

$9.55

~90%

FY2023 FY2024 FY2029E

Distribution Pipeline

Within 0 - 6 Months

Within 7 - 12 Months

Greater than 12 Months

FY2024 FY2025E FY2029E

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

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
Jurisdiction	Infrastructure	Deferral/ Forward-Looking	Annual Filing	General Case	Meters (000s)	Rate Base1		2025E ($MM)
						($MM)	% of Total
Texas
Mid-Tex	8.209		RRM/DARR/ GRIP	-	1,804	8,100	43	1,675-1,725
APT	GRIP	-	GRIP 2	-	NA	4,900	26	875-885
West Texas	8.209		RRM/GRIP	-	315	1,200	6	225-235
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