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.
December 2024
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 November 6, 2024 | Page 2 |
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 November 6, 2024 | Page 3 |
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 |
$18.8B
$16.6B
FY2023 | FY2024 | FY2029E |
Distribution | Pipeline |
Constructive rate mechanisms | 6% - 8% Consolidated EPS |
that reduce regulatory lag | growth |
Annual Capex Recovery | Earnings per Share $9.15 - |
$9.55 | |
$7.05 - | |
$6.831 | $7.25 |
~90%
Within 0 - 6 Months
Within 7 - 12 Months
Greater than 12 Months
FY2024 FY2025E FY2029E
1. Inclusive of 17 cents of one-time benefits. See footnote 3 on slide 35.
As of November 6, 2024 | Page 4 |
Constructive Regulation Focused on Safety and Reliability
~90% of Annual Capital Spend Begins to Earn Within Six Months
Regulatory Mechanisms | Recovery Method | Service Territory Detail | CapEx | ||||||
Deferral/ | Annual | General | Rate Base1 | 2025E | |||||
Jurisdiction | Infrastructure | Forward- | Meters (000s) | % of | |||||
Filing | Case | ($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 |
- Represents an estimate of rate base as of September 30, 2024
- Requires a rate case every 5 years
As of November 6, 2024 | Page 5 |
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 December 6, 2024 | Page 6 |
Leading Natural Gas Delivery Platform
97% of Rate Base in states that offer policy support for investment in natural gas infrastructure
Passed
(Atmos Passed Proposed Legislation
Jurisdictions)
As of December 6, 2024 | 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 December 6, 2024 | Page 8 |
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
1,200 1,167
1,000
800
600
400
200
0
685
~500-530
1. Fiscal year basis | 2012 | 2023 | 2029E |
2. 2023 DOT Report
As of November 6, 2024 | Page 9 |
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 December 6, 2024 | Page 10 |
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AEC - Atmos Energy Corporation published this content on December 06, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on December 06, 2024 at 21:47:44.741.
