Atmos Energy : Fiscal 2022 Second Quarter Presentation

Analyst Call to Review

Fiscal 2022 Second Quarter

Financial Results

May 5, 2022 10:00 a.m. Eastern

Fiscal Q2 2022 Review

Q2 Fiscal 2022 Financial Performance

Fiscal 2022 Highlights

• • Financial Performance

  • • YTD Diluted EPS of $4.24

  • • $1.2 billion in capital spending; 87% allocated to safety and reliability spending

  • • 8.8% increase in fiscal 2022 annual dividend to $2.72 per diluted share

    • • 38th consecutive year of rising dividends

• • Executed Our Regulatory Strategy

  • • Implemented $73.1 million as of May 4, 2022; $29.6 million, net of excess deferred tax amortization

  • • $270.0 million currently in progress

• • Strong Balance Sheet

  • • Approximately $3.5 billion in liquidity

  • • $1.4 billion of financing to support operations

    • • Issued $600 million 30-year senior notes at 2.85%

    • • Issued $200 million 2.625% senior notes

    • • Settled $594.3 million of equity forwards

  • • Equity capitalization at 60.9% as of March 31, 2022, excluding storm-related financing

Q2 Fiscal 2022 Financial Performance

Consolidated Financial Highlights

Three Months Ended

March 31

Segment Net Income ($millions, except EPS)

Six Months Ended

March 31

Distribution

Pipeline & Storage

Net Income

Diluted EPS1

Capital Expenditures

386128 514 4.01 845.7

505.8$

$ $ $

388.9

$

1,190.0$

1. Since Atmos Energy has non-vested share-based payments with a nonforfeitable right to dividends, there is a requirement to use the two-class method of computing earnings per share. As a result, EPS cannot be calculated directly from the income statement.

Q2 Fiscal 2022 Financial Performance

Segment Operating Income Highlights

Three Months Ended March 31 ($millions)	2022	2021	Change
Distribution	$ 311.3	$ 303.3	$ 8.0
Pipeline & Storage	73.8	78.5	(4.7)
Operating Income	$ 385.1	$ 381.8	$ 3.3

Distribution Key Drivers

• • $60.0MM - Net increase due to rate case outcomes

• • $6.3MM - Net increase due to customer growth

• • $15.5MM - Decrease due to consumption

• • $39.9MM - Decrease due to EDIT refunds1

• • $6.6MM - Decrease in other O&M - bad debt and other administrative costs

• • $4.1MM - Increase in system maintenance expense

• • $11.0MM - Increase in D&A and property tax expense

Pipeline & Storage Key Drivers

• • $13.9MM - Increase due to rate case outcomes

• • $3.4MM - Decrease due to EDIT refunds 1

• • $3.8MM - Increase in D&A

• • $7.6MM - Increase in system maintenance expense

1. Reductions to operating income from excess deferred income tax (EDIT) refunds substantially offset by lower income tax expense by the end of the fiscal year.