Atmos Energy : February 2022 Analyst Presentation

vision is for Atmos to be the Safest provider of natural gas

services. We will be recognized for Exceptional Customer Service, for being a

Employer and for achieving Superior Financial Results.

February 2022

Leading Natural Gas Delivery Platform

Eight-state distribution territory

Business Mix

Intrastate pipeline system

~32%

Pipeline &

Storage

~68%

Distribution

2022 Estimated Net Income

Diversified LDC platform in 8 states

• Largest pure-play natural gas LDC with over 3 million customers in 8 states
• ~72,000 miles of distribution and transmission mains
• ~63% of distribution rate base is located in Texas
• Blended allowed ROE of 9.8%
• 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
• ~46 Bcf of working storage capacity
• Allowed ROE of 11.5%
• Margin derived from tariff-based rates primarily serving Mid-Tex and other LDCs

As of February 8, 2022

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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 2026
• 100% of earnings from fully regulated, leading natural gas delivery platform
• 19 consecutive years of EPS growth; 37 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 is most jurisdictions offer regular, consistent rate adjustments
• Earning on over 90% of annual capex within 6 months; ~99% within 12 months
• High 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
• Providing safe, reliable and affordable service, with a lower carbon footprint than electricity
• Investing in the communities we serve

As of February 8, 2022

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Safety Driven, Organic Growth Strategy

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

• $13 - $14 billion in capital investment through 2026; >80% allocated to safety

Rate Base

($billions)

$21.0 -

$23.0

$12.1

$10.7

20202021 2026E

Distribution Pipeline & Storage

Constructive rate mechanisms

that reduce regulatory lag

Annual Capex Recovery

~90%

Within 0 - 6 Months

Within 7 - 12 Months

Greater than 12 Months

6% - 8% Consolidated EPS

growth

Earnings per Share

$7.00 -

$7.40

$5.40 -

$5.60

$5.12

2021 2022E 2026E

As of February 8, 2022

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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	2022E
Jurisdiction	Infrastructure	Forward-	Meters (000s)			% of
Filing	Case	($MM)		($MM)
			Looking
							Total
Texas
•	Mid-Tex	8.209	Π	RRM/DARR/	-	1,791	4,900		40	950-975
GRIP
•	APT	GRIP	-	GRIP 2	-	NA	3,000		25	840-860
•	West	8.209	Π	RRM/GRIP	-	326	890		7	135-145
	Texas
Louisiana	RSC	Π	RSC	-	373	920		8	145-155
Mississippi	SIR	Π	SRF/SIR	-	273	750		6	135-145
Kentucky	PRP	Π	PRP	Π	184	570		5	60-70
Tennessee	-	Π	ARM	-	159	470		4	65-75
Kansas	GSRS	-	GSRS	Π	140	280		2	35-45
Colorado	SSIR	Π	SSIR	Π	125	230		2	30-40
Virginia	SAVE	-	SAVE	Π	25	60		1	5-10

1. Represents an estimate of rate base as of September 30, 2021
2. Requires a rate case every 5 years

As of February 8, 2022

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