Delivering clean, safe and economical energy
to over 3 million homes and businesses
Atmos Energy
- multi-stateregulated natural gas delivery company achieving strong financial growth through infrastructure investment, enhancing the safety and reliability of our system
June 2021
Leading Natural Gas Delivery Platform
Eight-state distribution territory | Business Mix | Intrastate pipeline system |
Distribution ~67%
Regulated
distribution
68%
RegulatedPipeline & pipeline
Storage29% ~33%
2021 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
- ~62% of distribution rate base is located in Texas
- Blended allowed ROE of 9.8%
- Constructive regulatory mechanisms reduce lag
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
- Five storage facilities with 46 Bcf of working capacity
- Allowed ROE of 11.5%
- Margin derived from tariff-based rates primarily serving Mid-Tex and other LDCs
As of May 5, 2021 | 2 |
Fiscal 2021 YTD Highlights
- Financial Performance
- YTD Diluted EPS of $4.01
- Capital spending of $845.7 million; 87% allocated to safety and reliability spending
- Reaffirmed Fiscal 2021 EPS guidance range of $4.90 - $5.10
- 8.7% increase in fiscal 2021 indicated annual dividend to $2.50 per diluted share
- 37th consecutive year of rising dividends
- Executed Our Regulatory Strategy
- Implemented $169.1 million as of June 1, 2021
- $84.7 million in progress as of June 1, 2021
- Strong Balance Sheet
- Approximately $3.5 billion in liquidity
- $1.1 billion of financing to support operations
- $2.2 billion of long-term debt financing related to Winter Storm Uri
- Equity capitalization at 60% at March 31, 2021, excluding storm-related financing
As of May 5, 2021 | 3 |
Safety Driven, Organic Growth Strategy
Constructive Regulatory Mechanisms Support Efficient Conversion of Safety and Reliability Investments into Financial Results
~ $11 - $12 billion in capital | Constructive rate mechanisms | |||||
investment through 2025; >80% | ||||||
that reduce regulatory lag | ||||||
allocated to safety | ||||||
6% - 8% Consolidated EPS growth
Rate Base | $19.0 - $21.0 | ||||||||
$16.0 | ($billions) | ||||||||
$12.0 | $10.7 | ||||||||
$9.2 | |||||||||
$8.0 | |||||||||
$4.0 | |||||||||
$0.0 | |||||||||
2019 | 2020 | 2025E | |||||||
Distribution | Pipeline and Storage | ||||||||
Annual Capital Recovery
~ 90%
Earning on Annual Investments:
Within 0 - 6 months
Within 7 - 12 months
Greater than 12 months
Adjusted Earnings per Share | ||||
$7.00 | $6.30 - $6.70 | |||
$6.00 | ||||
$5.00 | $4.721 | $4.90 - $5.10 | ||
$4.00 | ||||
$3.00 | ||||
$2.00 | ||||
$1.00 | ||||
$0.00 | ||||
2020 | 2021E | 2025E |
1. Adjusted diluted EPS is a non-GAAP measure defined as diluted EPS before a one-time,non-cash income tax benefit recognized in Q3 2020. See slide 33 for additional details.
As of May 5, 2021 | 4 |
Executing Our Strategy
A Pure-Play,High-Growth Natural Gas Delivery Investment Proposition
Attractive pure-play | Diversified asset base | Strong rate base | Strong financial |
with constructive | foundation with | ||
total return | regulation | growth | consistent track record |
- Earnings are 100% regulated and rate base driven
- 6 - 8% forecasted EPS growth through Fiscal 2025
- Dividend per share grows commensurately with EPS
- Regulated distribution assets in 8 states serving over 3 million customers
- Favorably positioned regulated pipeline spans Texas shale gas supply basins
- Constructive rate mechanisms reduce or eliminate regulatory lag
- Strong forecasted rate base growth through Fiscal 2025
- Capital expenditures of $11-$12 billion through Fiscal 2025; >80% spent on safety and reliability
- Earning on over 90% of annual capex within 6 months; ~99% within 12 months
- 18 consecutive years of EPS growth; 37 consecutive years of dividend growth
- 8.7% indicated dividend increase for 2021E
- High investment-grade credit ratings (A1, A-) with ample liquidity
As of June 1, 2021 | 5 |
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AEC - Atmos Energy Corporation published this content on 07 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 June 2021 20:28:06 UTC.