Atmos Energy (ATO) Corporate presentation summary

Business overview and strategy

• Operates a leading natural gas delivery platform across eight states, serving over 3.4 million customers with a diversified LDC platform and 76,000 miles of distribution and transmission mains.

• Focuses on safety-driven, organic growth with a strategy supporting 6%-8% EPS and dividend growth through 2030.

• Over 85% of a $26 billion capital plan through 2030 is allocated to safety and reliability, including modernization and risk-based replacement programs.

• Constructive regulatory mechanisms in most jurisdictions enable efficient recovery of capital investments and reduce regulatory lag.

• 96% of rate base is in states with supportive policy for natural gas infrastructure investment.

Financial performance and outlook

• Fiscal 2026 guidance projects net income of $1.38–$1.4 billion and diluted EPS of $8.15–$8.35, with capital spending of ~$4.2 billion.

• Q1 FY2026 diluted EPS was $2.44, with $1.03 billion in capital spending (89% for safety and reliability) and a 14.9% dividend increase to $4.00 per share.

• Maintains strong investment-grade credit ratings (A-/A2), a weighted average debt maturity of 17.2 years, and $4.6 billion in available liquidity.

• Over 90% of annual capex begins to earn within six months, supporting predictable earnings and cash flow.

• 42 consecutive years of dividend growth, with a 2026 indicated dividend increase of 14.9%.

Regulatory environment

• Utilizes annual filing mechanisms, infrastructure riders, and forward-looking test periods to ensure timely recovery of investments.

• Recent and pending rate filings across all divisions, with significant increases requested and/or authorized in Texas, Louisiana, Mississippi, Kentucky, and Colorado.

• Allowed ROEs generally range from 9.4% to 11.45%, with capital structures typically around 40% debt/60% equity.

• Regulatory mechanisms include weather normalization, bad debt recovery, and expense deferrals, enhancing revenue stability.