Atmos Energy Corporation · NYSE:ATO
Atmos Energy — Q3 2025 Earnings Presentation
32 slides from Atmos Energy's earnings presentation, Aug 7, 2025
Slide 1: Analyst Call to Review Fiscal 2025 Third Quarter Financial Results
Analyst Call to Review Fiscal 2025 Third Quarter Financial Results August 7, 2025 10:00 a.m. Eastern
Slide 2: Fiscal Q3 2025 Review
Fiscal Q3 2025 Review As of August 6, 2025 Page 2
Slide 3: Q3 Fiscal 2025 Financial Performance
Q3 Fiscal 2025 Financial Performance Fiscal 2025 Highlights • Financial Performance • YTD Diluted EPS of $6.40 • $2.6 billion in capital spending; 86% allocated to safety and reliability spending • Raised fiscal 2025 EPS guidance range to $7.35 to $7.45 from $7.20 to $7.30 • 8.1% increase in fiscal
Slide 4: Consolidated Financial Highlights
Q3 Fiscal 2025 Financial Performance Consolidated Financial Highlights Three Months Ended Nine Months Ended June 30 June 30 Segment Net Income 2025 2024 2025 2024 ($millions, except EPS) Distribution $ 70 $ 66 $ 691 $ 630 Pipeline & Storage 116 100 333 279 Net Income $ 186 $ 166 $ 1,024 $ 909 Dilute
Slide 5: Segment Operating Income Highlights
Q3 Fiscal 2025 Financial Performance Segment Operating Income Highlights Three Months Ended June 30 2025 2024 Change ($millions) Distribution $ 95.5 $ 83.1 $ 12.4 Pipeline & Storage 156.6 137.2 19.4 Operating Income $ 252.1 $ 220.3 $ 31.8 Distribution Key Drivers Pipeline & Storage Key Drivers • $33
Slide 6: Segment Operating Income Highlights (Nine Months)
Q3 Fiscal 2025 Financial Performance Segment Operating Income Highlights Nine Months Ended June 30 2025 2024 Change ($millions) Distribution $ 895.2 $ 789.8 $ 105.4 Pipeline & Storage 445.3 380.6 64.7 Operating Income $ 1,340.5 $ 1,170.4 $ 170.1 Distribution Key Drivers Pipeline & Storage Key Driver
Slide 7: Capital Spending Highlights
Q3 Fiscal 2025 Financial Performance Capital Spending Highlights $millions Fiscal 2025 YTD CapEx Repair and replace transmission and distribution $ 1,139 pipelines 386 Fortifications 1% 274 Service line replacement 13% Install & replace measurement & regulating 191 86% equipment 137 Enhance storage
Slide 8: Strong Financial Foundation Supports Capital Spending Program
Q3 Fiscal 2025 Financial Performance Strong Financial Foundation Supports Capital Spending Program Capitalization and Liquidity Profile Liquidity Profile as of Total Capitalization June 30, 2025 100% $6,000 $5,000 $709 40% 39% 75% $4,000 $1,684 $5.5 billion 50% $3,000 $100 Available $1,500 Liquidity
Slide 9: Financing Highlights
Q3 Fiscal 2025 Financial Performance Financing Highlights • $1.15 billion of long-term debt financing issued • $650 million 5.00% 30-year senior notes issued in October 20241 • $500 million 5.20% 10-year senior notes issued in June 20252 • Equity needs satisfied through our ATM program as of June 30
Slide 10: Manageable Debt Maturity Schedule Supports Capital Spending Program
Q3 Fiscal 2025 Financial Performance Manageable Debt Maturity Schedule Supports Capital Spending Program Weighted Average Maturity ~17.1 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 $500 3.00% 2.625% 5.20% 4.15% 6.20
Slide 11: Strong Investment Grade Ratings Support Affordable Customer Bills
Q3 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
Q3 Fiscal 2025 Financial Performance Regulatory Highlights Approved Annualized Key Rate Activity Operating Income Increases1,2 Through August 6, 2025 $600 • $350.8MM Implemented $550 • $116.6MM – Texas RRMs $500 • $ 77.2MM – APT GRIP Filing $450 $229.1 • $ 33.7MM – Kentucky General Case 3 $400 • $ 3
Slide 13: Financial Outlook: Fiscal 2025E Guidance
Financial Outlook Fiscal 2025E Guidance ($millions, except EPS) FY 2024 FY 2025E1 Distribution $ 671 $ 750 - 760 Pipeline & Storage 372 435 - 445 Total Net Income $ 1,043 $ 1,185 - 1,205 Average Diluted Shares 152.7 159 - 161 Diluted EPS2 $ 6.833 $ 7.35 - 7.45 Capital Spending $ 2,937 $ ~3,700 1. Ch
Slide 14: Financial Outlook: Selected Expenses Guidance
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 $ 185 - 195 Income Tax $ 193 $ 270 - 280 Effective Tax Rate 15.6% 18% - 20%2 1. Changes in events or other circumstances that
Slide 15: Regulatory Information
Regulatory Information 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 Kentucky – Implemented General Case Louisiana – Implemented Rate Stabilization Mid-Tex and WTX Cities – Implemented RRM Colorado – Implemented SSIR of $1.9MM
Slide 18: Regulatory Summary
Regulatory Summary Date of Authorized Requested Authorized Effective Date Requested Authorized Requested Authorized Requested Requested Last Rate Operating Operating Rate Base Debt/ Meters Jurisdiction Fn. of Last Rate (1) Rate Base Rate of Rate of Return on Return on Debt/Equity Filing Income Incom
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 Fn. Rate Base Rate of Rate of Return on Return on Debt/Equity Last Rate Filing Inco
Slide 20: Atmos Pipeline - Texas
Atmos Pipeline - Texas • Atmos Pipeline: Filed 2025 System Safety & Integrity (SSI) Rider on June 13, 2025 • Allows for the recovery of certain system safety and integrity costs incurred each year • Costs above a benchmark are deferred onto the balance sheet as incurred • Revenue and expense are rec
Slide 21: 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 22: Colorado - Kansas Division
Colorado - Kansas Division • Kansas: Filed General Rate Case on July 25, 2025 • Requested an increase in annual operating income of $16.0 million • Requested ROE: 10.80%; ROR: 8.20% • Requested capital structure: 39% debt / 61% equity • Requested rate base: $335.1 million • Test year ending March 31
Slide 23: Colorado - Kansas Division
Colorado - Kansas Division • Colorado: Implemented System Safety & Integrity Rider (SSIR) on January 1, 2025 • Authorized an increase in annual operating income of $1.9 million • Authorized rate base: $73.6 million • Test year ending December 31, 2025 As of August 6, 2025 Page 23
Slide 24: Kentucky/Mid-States Division
Kentucky/Mid-States Division • Kentucky: Filed Annual PRP on July 31, 2025 • Requested an annual operating income increase of $7.2 million • Requested ROE: 10.95%; ROR: 8.30% • Requested capital structure: 39% debt / 61% equity • Requested rate base: $107.8 million • Tennessee: Implemented Annual Re
Slide 25: Kentucky/Mid-States Division
Kentucky/Mid-States Division • Virginia: Filed SAVE Infrastructure Program on May 30, 2025 • Requested an annual operating income increase of $0.6 million • Requested ROE: 9.90%; ROR: 7.57% • Requested capital structure: 39% debt / 61% equity • Requested rate base: $27.3 million • Kentucky: Implemen
Slide 26: Louisiana Division
Louisiana Division • Louisiana: Implemented Annual Rate Stabilization Clause (RSC) Subject to Refund on July 1, 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: $1.4 bi
Slide 27: Mid-Tex Division
Mid-Tex Division • Mid-Tex ATM: Implemented Statement of Intent on August 1, 2025 • Authorized an increase in annual operating income of $4.4 million • Authorized ROE: 9.8%; ROR: 7.59% • Authorized capital structure: 39% debt / 61% equity • Authorized rate base: $8.0 billion • Test year ending June
Slide 28: 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 29: Mississippi Division
Mississippi Division • Mississippi: Filed General Rate Case (SIR and SRF) on June 2, 2025 • Requested an increase in annual operating income of $40.3 million • Requested ROE: 10.41%; ROR: 7.92% • Requested capital structure: 40% debt / 60% equity • Requested rate base: $1.4 billion • Forward-looking
Slide 30: Mississippi Division
Mississippi Division • Mississippi: Implemented Annual Stable Rate Filing (SRF) on November 4, 2024 • Authorized an increase in annual operating income of $3.8 million • Authorized ROR: 7.8% • Authorized rate base: $592.2 million • Forward-looking components - PP&E, accumulated depreciation, accumul
Slide 31: West Texas Division
West Texas Division • West Texas Systemwide: Implemented Statement of Intent on June 1, 2025 • Authorized an increase in annual operating income of $30.6 million • Authorized ROE: 9.80%; ROR: 7.59% • Authorized capital structure: 39% debt / 61% equity • Authorized rate base: $1.2 billion • Test year
Slide 32: 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