Atmos Energy Corporation · NYSE:ATO
Atmos Energy — Q2 2025 Earnings Presentation
29 slides from Atmos Energy's earnings presentation, May 8, 2025
Slide 1: Analyst Call to Review Fiscal 2025 Second Quarter Financial Results
Analyst Call to Review Fiscal 2025 Second Quarter Financial Results May 8, 2025 10:00 a.m. Eastern
Slide 2: Fiscal Q2 2025 Review
Fiscal Q2 2025 Review As of May 7, 2025 Page 2
Slide 3: Q2 Fiscal 2025 Financial Performance
Q2 Fiscal 2025 Financial Performance Fiscal 2025 Highlights • Financial Performance • YTD Diluted EPS of $5.26 • $1.7 billion in capital spending; 85% allocated to safety and reliability spending • Raised fiscal 2025 EPS guidance range to $7.20 to $7.30 from $7.05 to $7.25 • 8.1% increase in fiscal
Slide 4: Consolidated Financial Highlights
Q2 Fiscal 2025 Financial Performance Consolidated Financial Highlights Three Months Ended Six Months Ended March 31 March 31 Segment Net Income ($millions, except EPS) 2025 2024 2025 2024 Distribution $ 381 $ 343 $ 621 $ 564 Pipeline & Storage 105 89 216 179 Net Income $ 486 $ 432 $ 837 $ 743 1 Dilu
Slide 5: Segment Operating Income Highlights – Three Months
Q2 Fiscal 2025 Financial Performance Segment Operating Income Highlights Three Months Ended March 31 2025 2024 Change ($millions) Distribution $ 483.7 $ 426.2 $ 57.5 Pipeline & Storage 145.2 124.8 20.4 Operating Income $ 628.9 $ 551.0 $ 77.9 Distribution Key Drivers Pipeline & Storage Key Drivers •
Slide 6: Segment Operating Income Highlights – Six Months
Q2 Fiscal 2025 Financial Performance Segment Operating Income Highlights Six Months Ended March 31 2025 2024 Change ($millions) Distribution $ 799.8 $ 706.7 $ 93.1 Pipeline & Storage 288.6 243.4 45.2 Operating Income $ 1,088.4 $ 950.1 $ 138.3 Distribution Key Drivers Pipeline & Storage Key Drivers •
Slide 7: Capital Spending Highlights
Q2 Fiscal 2025 Financial Performance Capital Spending Highlights $millions Fiscal 2025 YTD CapEx Repair and replace transmission and distribution $ 760 pipelines 261 Fortifications 2% 173 Service line replacement Install & replace measurement & regulating 13% 126 equipment 85% 93 Enhance storage and
Slide 8: Strong Financial Foundation Supports Capital Spending Program
Q2 Fiscal 2025 Financial Performance Strong Financial Foundation Supports Capital Spending Program Capitalization and Liquidity Profile Total Capitalization Liquidity Profile as of March 31, 2025 100% $6,000 39% 39% $5,000 $544 75% $4,000 $1,660 $5.3 billion 50% $100 $3,000 Available $1,500 Liquidit
Slide 9: Financing Highlights
Q2 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 • $658.2 million of equity forward arrangements priced • $379.5 million in se
Slide 10: Manageable Debt Maturity Schedule Supports Capital Spending Program
Q2 Fiscal 2025 Financial Performance Manageable Debt Maturity Schedule Supports Capital Spending Program Weighted Average Maturity ~17.6 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 5.50
Slide 11: Strong Investment Grade Ratings Support Affordable Customer Bills
Q2 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 A2 A- 4.1% 4.1% 4.0% 4.0% $8,000 3.8% 4.0% Commercial Paper
Slide 12: Regulatory Highlights
Q2 Fiscal 2025 Financial Performance Regulatory Highlights Approved Annualized Key Rate Activity Operating Income Increases1,2 Through May 7, 2025 $600 • $153.2MM Implemented $550 • $116.6MM – Texas RRMs $500 • $ 27.8MM – Mississippi Annual Filings $450 $400 $350 $389.1 • $389.1MM In-Progress $ mill
Slide 13: Financial Outlook: Fiscal 2025E Guidance
Financial Outlook Fiscal 2025E Guidance ($millions, except EPS) FY 2024 FY 2025E1 Distribution $ 671 $ 720 - 730 Pipeline & Storage 372 430 - 440 Total Net Income $ 1,043 $ 1,150 - 1,170 Average Diluted Shares 152.7 159 - 161 Diluted EPS2 $ 6.833 $ 7.20 - 7.30 Capital Spending $ 2,937 $ ~3,700 1. Ch
Slide 14: Financial Outlook: Selected Expenses
Financial Outlook Fiscal 2025E Guidance Selected Expenses FY 2024 FY 2025E1 ($millions) O&M, excluding bad debt expense $ 815 $ 860 - 880 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 15: Regulatory Information
Regulatory Information As of May 7, 2025 Page 15
Slide 16: 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 17: 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 and WTX Cities – Implemented RRM Mid-Tex Environs – Anticipate filing GRIP Colorado – Implemented SSIR of $1.9MM Kansas – Implemented SIP filing of $0
Slide 18: 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 19: 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 20: Atmos Pipeline - Texas
Atmos Pipeline - Texas • Atmos Pipeline: Filed 2024 GRIP on February 26, 2025 • Requested an increase in annual operating income of $77.2 million • Requested ROE: 11.45%; ROR: 8.49% • Requested capital structure: 40% debt / 60% equity • Requested rate base: $5.2 billion • Test year ended: December 3
Slide 21: Colorado - Kansas Division
Colorado - Kansas Division • Kansas: Implemented System Integrity Program (SIP) on April 1, 2025 • Authorized an increase in annual operating income of $0.6 million • Authorized rate base: $25.7 million • Test Year Ending December 31, 2024 • Kansas: Implemented Gas Safety Reliability Surcharge (GSRS
Slide 22: 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 23: 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 May 7,
Slide 24: Louisiana Division
Louisiana Division • Louisiana: Filed Annual Rate Stabilization Clause RSC on March 31, 2025 • Requested an annual operating income increase of $22.3 million • Requested ROE: 9.80%; ROR: 7.42% • Requested capital structure: 42% debt / 58% equity • Requested rate base: $1.35 billion • Test year endin
Slide 25: Mid-Tex Division
Mid-Tex Division • Mid-Tex Cities: Filed Rate Review Mechanism (RRM) on April 1, 2025 • Requested an increase in annual operating income of $165.0 million • Requested ROE: 9.80%; ROR: 7.55% • Requested capital structure: 40% debt / 60% equity • Requested rate base: $8.3 billion • Test year ending De
Slide 26: Mid-Tex Division
Mid-Tex Division • Mid-Tex Environs: Filed Statement of Intent on November 18, 2024 • Requested an increase in annual operating income of $8.0 million • Requested ROE: 10.85%; ROR: 8.23% • Requested capital structure: 39% debt / 61% equity • Requested rate base: $8.0 billion • Test year ending June
Slide 27: 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 28: 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 29: 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