Atmos Energy Corporation · NYSE:ATO
Atmos Energy — Q1 2025 Earnings Presentation
27 slides from Atmos Energy's earnings presentation, Feb 5, 2025
Slide 1: Analyst Call to Review Fiscal 2025 First Quarter Financial Results
Analyst Call to Review Fiscal 2025 First Quarter Financial Results February 5, 2025 9:00 a.m. Eastern
Slide 2: Fiscal Q1 2025 Review
Fiscal Q1 2025 Review As of February 4, 2025 Page 2
Slide 3: Q1 Fiscal 2025 Financial Performance
Q1 Fiscal 2025 Financial Performance Fiscal 2025 Highlights • Financial Performance • YTD Diluted EPS of $2.23 • $891.2 million in capital spending; 86% allocated to safety and reliability spending • 8.1% increase in fiscal 2025 indicated annual dividend to $3.48 per diluted share • 41st consecutive
Slide 4: Consolidated Financial Highlights
Q1 Fiscal 2025 Financial Performance Consolidated Financial Highlights Three Months Ended December 31 Segment Net Income ($millions, except EPS) 2024 2023 Distribution $ 240 $ 221 Pipeline & Storage 112 90 Net Income $ 352 $ 311 Diluted EPS1 $ 2.23 $ 2.08 Capital Expenditures $ 891.2 $ 769.7 1. Sinc
Slide 5: Segment Operating Income Highlights
Q1 Fiscal 2025 Financial Performance Segment Operating Income Highlights Three Months Ended December 31 2024 2023 Change ($millions) Distribution $ 316.1 $ 280.5 $ 35.6 Pipeline & Storage 143.4 118.6 24.8 Operating Income $ 459.5 $ 399.1 $ 60.4 Distribution Key Drivers Pipeline & Storage Key Drivers
Slide 6: Capital Spending Highlights
Q1 Fiscal 2025 Financial Performance Capital Spending Highlights $millions Fiscal 2025 YTD Capital Spending Repair and replace transmission and distribution $ 409 pipelines 116 Fortifications 1% 84 Service line replacement 13% Install & replace measurement & regulating 86% 71 equipment 48 Enhance st
Slide 7: Strong Financial Foundation Supports Capital Spending Program
Q1 Fiscal 2025 Financial Performance Strong Financial Foundation Supports Capital Spending Program Capitalization and Liquidity Profile Liquidity Profile as of Total Capitalization December 31, 2024 100% $6,000 $5,000 40% 39% $585 75% $4,000 $1,476 $3,000 $100 $5.2 billion 50% Available $2,000 $1,50
Slide 8: Financing Highlights
Q1 Fiscal 2025 Financial Performance Financing Highlights • $650 million of long-term debt financing issued • $650 million 5.00% 30-year senior notes issued in October 20241 • Equity needs satisfied through our ATM program • $476.0 million of equity forward arrangements priced • $379.5 million in se
Slide 9: Manageable Debt Maturity Schedule Supports Capital Spending Program
Q1 Fiscal 2025 Financial Performance Manageable Debt Maturity Schedule Supports Capital Spending Program Weighted Average Maturity ~17.81 Years $1,100 4.168% $950 3.73% $750 $725 Total Amount Maturing 4.125% 5.90% $650 $600 $600 5.00% 1.50% 4.30% $500 $500 $500 $500 3.00% 2.625% 4.15% 6.20% $400 5.5
Slide 10: Strong Investment Grade Ratings Support Affordable Customer Bills
Q1 Fiscal 2025 Financial Performance Strong Investment Grade Ratings Support Affordable Customer Bills Strong Investment Weighted Average Cost of Debt Grade Credit Ratings Standard & $10,000 5.0% Moody’s Poor’s $9,000 4.5% Senior Unsecured A1 A- 4.1% 4.1% 4.0% 4.0% $8,000 3.8% 4.0% Commercial Paper
Slide 11: Regulatory Highlights
Q1 Fiscal 2025 Financial Performance Regulatory Highlights Approved Annualized Key Rate Activity Operating Income Increases1,2 Through February 4, 2025 $600 $550 • $152.5MM Implemented $500 • $116.6MM – Texas RRMs • $ 27.8MM – Mississippi Annual Filings $450 $400 $350 • $125.2MM In-Progress $ millio
Slide 12: Financial Outlook: Fiscal 2025E Guidance
Financial Outlook Fiscal 2025E Guidance ($millions, except EPS) FY 2024 FY 2025E1 Distribution $ 671 $ 700 - 720 Pipeline & Storage 372 420 - 430 Total Net Income $ 1,043 $ 1,120 - 1,150 Average Diluted Shares 152.7 159 - 161 Diluted EPS2 $ 6.833 $ 7.05 - 7.25 Capital Spending $ 2,937 $ ~3,700 1. Ch
Slide 13: Financial Outlook: Selected Expenses Guidance
Financial Outlook Fiscal 2025E Guidance Selected Expenses FY 2024 FY 2025E1 ($millions) O&M, excluding bad debt expense $ 815 $ 840 - 860 D&A $ 670 $ 740 - 750 Interest $ 191 $ 180 - 190 Income Tax $ 193 $ 265 -280 Effective Tax Rate 15.6% 18% - 20%2 1. Changes in events or other circumstances that
Slide 14: Regulatory Information
Regulatory Information Page 14
Slide 15: Regulatory Mechanisms To Support Recovery
Regulatory Mechanisms To Support Recovery Annual Revenue and Lag Revenue Stability and Lag Mechanisms Mechanisms Pension and Annual Rate Bad Debt in Jurisdiction Infrastructure Retirement Cost WNA Stabilization GCA Trackers Colorado Kansas Kentucky Tennessee Virginia
Slide 16: Key Regulatory Filings – Fiscal 2025E
Key Regulatory Filings – Fiscal 2025E Rate Filing Planned Timing Q1 Q2 Q3 Q4 October – December January – March April – June July – September Mid-Tex Cities – Anticipate filing Rate Mississippi – Anticipate Stable Rate Mid-Tex and WTX Cities – Implemented RRM Review Mechanism (RRM) in April 2025; Co
Slide 17: Regulatory Summary
Regulatory Summary Effective Date of Authorized Requested Authorized Requested Authorized Requested Authorized Requested Requested Date of Last Rate Operating Operating Rate Base Debt/ Meters Jurisdiction Rate Base Rate of Rate of Return on Return on Debt/Equity Last Rate Filing Income Income $milli
Slide 18: Regulatory Summary (continued)
Regulatory Summary (continued) Effective Date of Authorized Requested Authorized Requested Authorized Requested Authorized Requested Requested Date of Last Rate Operating Operating Rate Base Debt/ Meters Jurisdiction Rate Base Rate of Rate of Return on Return on Debt/Equity Last Rate Filing Income I
Slide 19: Atmos Pipeline - Texas
Atmos Pipeline - Texas • Atmos Pipeline: Implemented 2024 System Safety & Integrity (SSI) Rider on November 1, 2024 • New annual mechanism approved in the 2023 SOI • Allows for the recovery of certain system safety and integrity costs incurred each year • Costs above a benchmark are deferred onto th
Slide 20: Colorado - Kansas Division
Colorado - Kansas Division • Kansas: Filed System Integrity Program (SIP) on January 15, 2025 • Requested an increase in annual operating income of $0.6 million • Requested rate base: $25.7 million • Test Year Ending December 31, 2024 • Kansas: Implemented Gas Safety Reliability Surcharge (GSRS) on
Slide 21: Kentucky/Mid-States Division
Kentucky/Mid-States Division • Kentucky: Implemented Annual PRP on October 2, 2024 • Authorized an annual operating income increase of $3.4 million • Authorized ROE: 9.45%; ROR: 6.94% • Authorized capital structure: 45% debt / 55% equity • Authorized rate base: $69.3 million • Implemented subject to
Slide 22: Kentucky/Mid-States Division
Kentucky/Mid-States Division • Tennessee: Filed Annual Review Mechanism (ARM) on January 31, 2025 • Requested an annual operating income increase of $1.7 million • Requested ROE: 9.80%; ROR: 7.63% • Requested capital structure: 39% debt / 61% equity • Requested rate base: $611.7 million As of Februa
Slide 23: Mid-Tex Division
Mid-Tex Division • Mid-Tex Cities: Filed Dallas Annual Rate Review (DARR) on January 15, 2025 • Requested an increase in annual operating income of $29.5 million • Requested ROE: 9.80%; ROR: 7.52% • Requested capital structure: 40% debt / 60% equity • Requested rate base: $8.0 billion • Test year en
Slide 24: Mid-Tex Division
Mid-Tex Division • Mid-Tex Cities: Implemented Rate Review Mechanism (RRM) on October 1, 2024 • Authorized an increase in annual operating income of $112.1 million • Authorized ROE: 9.80%; ROR: 7.41% • Authorized capital structure: 42% debt / 58% equity • Authorized rate base: $7.1 billion • Test ye
Slide 25: Mississippi Division
Mississippi Division • Mississippi: Implemented Annual System Integrity Rider (SIR) on November 4, 2024 • Authorized an increase in annual operating income of $24.0 million • Authorized ROR: 7.8% • Authorized rate base: $629.7 million • Forward-looking components - PP&E, accumulated depreciation, ac
Slide 26: West Texas Division
West Texas Division • West Texas Systemwide: Filed Statement of Intent on October 25, 2024 • Requested an increase in annual operating income of $39.2 million • Requested ROE: 10.85%; ROR: 8.23% • Requested capital structure: 39% debt / 61% equity • Requested rate base: $1.2 billion • Test year endi
Slide 27: Forward Looking Statements
Forward Looking Statements The matters discussed or incorporated by reference in this presentation may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of