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 and growing jurisdictional footprint.

• Focuses on safety-driven, organic growth with 100% of earnings from fully regulated operations and a 6–8% EPS and dividend growth target through 2030.

• Maintains a blended allowed ROE of 9.8% and utilizes constructive regulatory mechanisms to reduce lag and support capital recovery.

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

• Pipeline network spans key Texas shale basins, with 5,700 miles of intrastate pipeline and 53 Bcf of storage capacity.

Financial performance and outlook

• Fiscal 2026 YTD diluted EPS reached $7.33, with full-year guidance reaffirmed at $8.40–$8.50.

• Capital spending for fiscal 2026 is projected at ~$4.2 billion, with 88% focused on safety and reliability.

• Net income guidance for 2026 is $1.41–$1.43 billion, with segment growth in both distribution and pipeline & storage.

• Maintains strong liquidity with $4.6 billion available and a 60% equity capitalization as of June 30, 2026.

• 42 consecutive years of dividend increases, with a 14.9% rise to $4.00 per share in 2026.

Regulatory environment and rate activity

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

• Constructive regulatory mechanisms allow >90% of annual capex to earn within 6 months, supporting predictable earnings and cash flow.

• Recent rate filings and approvals include significant increases in Texas, Louisiana, Colorado, Kentucky, and other jurisdictions.

• Annual and infrastructure mechanisms, forward-looking test periods, and expense deferrals are widely used across service territories.

• Weighted average cost of debt remains low, supported by strong investment-grade ratings from Moody’s and S&P.