Atmos Energy : June 2021 Analyst Presentation

Delivering clean, safe and economical energy

to over 3 million homes and businesses

Atmos Energy

1. 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

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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

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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

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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

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