Atmos Energy Corporation · NYSE:ATO
Atmos Energy — Q1 2026 Earnings Presentation
29 slides from Atmos Energy's earnings presentation, Feb 4, 2026
Slide 1: Analyst Call to Review Fiscal 2026 First Quarter Financial Results
Analyst Call to Review Fiscal 2026 First Quarter Financial Results February 4, 2026 9:00 a.m. Eastern
Slide 2: Fiscal Q1 2026 Review
Fiscal Q1 2026 Review As of February 3, 2026 Page 2
Slide 3: Q1 Fiscal 2026 Financial Performance
Q1 Fiscal 2026 Financial Performance Fiscal 2026 Highlights • Financial Performance • YTD Diluted EPS of $2.44 • $1,033.3 million in capital spending; 89% allocated to safety and reliability spending • 14.9% increase in fiscal 2026 indicated annual dividend to $4.00 per diluted share • 42nd consecut
Slide 4: Consolidated Financial Highlights
Q1 Fiscal 2026 Financial Performance Consolidated Financial Highlights Three Months Ended December 31 Segment Net Income ($millions, except EPS) 2025 2024 Distribution $ 269 $ 240 Pipeline & Storage 134 112 Net Income $ 403 $ 352 Diluted EPS1 $ 2.44 $ 2.23 Capital Expenditures $ 1,033.3 $ 891.2 1. S
Slide 5: Segment Operating Income Highlights
Q1 Fiscal 2026 Financial Performance Segment Operating Income Highlights Three Months Ended December 31 2025 2024 Change ($millions) Distribution $ 349.2 $ 316.0 $ 33.2 Pipeline & Storage 165.5 143.4 22.1 Operating Income $ 514.7 $ 459.4 $ 55.3 Distribution Key Drivers Pipeline & Storage Key Drivers
Slide 6: Capital Spending Highlights
Q1 Fiscal 2026 Financial Performance Capital Spending Highlights $millions Fiscal 2026 YTD Capital Spending Repair and replace transmission and distribution $ 489 pipelines 169 Fortifications 1% 128 Service line replacement 10% Install & replace measurement & regulating 77 89% equipment 36 Enhance s
Slide 7: Strong Financial Foundation Supports Capital Spending Program
Q1 Fiscal 2026 Financial Performance Strong Financial Foundation Supports Capital Spending Program Capitalization and Liquidity Profile Total Capitalization Liquidity Profile as of December 31, 2025 100% $6,000 $5,000 40% 39% 75% $367 $4,000 $1,089 50% $3,000 $100 $4.6 billion Available $1,500 60% 6
Slide 8: Financing Highlights
Q1 Fiscal 2026 Financial Performance Financing Highlights • $600 million of long-term debt financing issued • $600 million 5.45% 30-year senior notes issued in October 20251 • Equity needs satisfied through our ATM program • $472.0 million in settled equity forward arrangements • $1.1 billion availa
Slide 9: Manageable Debt Maturity Schedule Supports Capital Spending Program
Q1 Fiscal 2026 Financial Performance Manageable Debt Maturity Schedule Supports Capital Spending Program Weighted Average Maturity ~17.2 Years $1,100 4.168% $950 3.73% $750 $725 Total Amount Maturing 4.125% 5.90% $650 $600 $600 5.00% $600 1.50% 4.30% 5.45% $500 $500 $500 $500 3.00% 2.625% 4.15% 6.20
Slide 10: Strong Investment Grade Ratings Support Affordable Customer Bills
Q1 Fiscal 2026 Financial Performance Strong Investment Grade Ratings Support Affordable Customer Bills Weighted Average Cost of Debt $12,000 5.0% 4.3% 4.5% 4.2% 4.1% $10,000 4.0% Strong Investment 3.8% 4.0% Grade Credit Ratings 3.5% Standard & $8,000 Moody’s Poor’s Interest Rate % Net Long Term Debt
Slide 11: Regulatory Highlights
Q1 Fiscal 2026 Financial Performance Regulatory Highlights Approved Annualized Key Rate Activity Operating Income Increases1,2 Through February 3, 2026 $600 • $122.9MM Implemented $550 • $138.5MM – Mid-Tex Cities RRM $500 • $ 4.7MM – Kentucky PRP $450 • ($ 23.2MM) – Mississippi GRC $400 • $ 81.2MM I
Slide 12: Financial Outlook: Fiscal 2026E Guidance
Financial Outlook Fiscal 2026E Guidance ($millions, except EPS) FY 2025 FY 2026E1 Distribution $ 747 $ 865 - 875 Pipeline & Storage 452 515 - 525 Total Net Income $ 1,199 $ 1,380 - 1,400 Average Diluted Shares 161 168 – 171 Diluted EPS2 $ 7.46 $ 8.15 - 8.35 Capital Spending $ 3,561 $ ~4,200 1. Chang
Slide 13: Financial Outlook: Selected Expenses Guidance
Financial Outlook Fiscal 2026E Guidance Selected Expenses FY 2025 FY 2026E1 ($millions) O&M, excluding bad debt expense $ 874 $ 865 - 885 D&A $ 735 $ 785 - 795 Interest $ 172 $ 80 - 90 Income Tax $ 279 $ 340 - 350 Effective Tax Rate 19% 19% - 21%2 1. Changes in events or other circumstances that the
Slide 14: Residential use of natural gas remains competitive
Sustainability Integrated Into Strategy Residential use of natural gas remains competitive Average Monthly Customer Bill Key Assumptions $140 • Normal weather and consumption $121 • ~$26 billion of CAPEX $120 spending through 2030 • Commodity pricing $100 • FY 26-30: $2.75 to $3.75 $80 • Delivery co
Slide 15: Natural Gas Price Advantage Over Electricity
Sustainability Integrated Into Strategy Natural Gas Price Advantage Over Electricity Electricity1 vs Natural Gas2 - kWh Equivalent 18 15.82 15.44 15.44 14.51 13.71 14.02 13.35 13 12.47 7.67 8 7.03 6.27 4.29 4.00 3.63 3.78 3.79 3 Colorado Kansas Kentucky Louisiana Mississippi Tennessee Texas Virginia
Slide 16: Consolidated Residential Bill
Consolidated Residential Bill Residential Gas Bill Wallet Share by Jurisdiction Wallet Share Wallet Share Median Income1 Low Income1 Tennessee 0.66% 0.82% Louisiana 0.85% 1.07% Virginia 0.90% 1.13% Mid-Tex 1.00% 1.25% Kansas 1.00% 1.25% West Texas 1.05% 1.31% Kentucky 1.06% 1.32% Colorado 1.14% 1.43
Slide 17: Residential Natural Gas Bills Remain the Lowest Monthly Utility Bill
Sustainability Integrated Into Strategy Residential Natural Gas Bills Remain the Lowest Monthly Utility Bill Water2 Cable & Internet3 $127 $121 CO KS KY TN LA Natural Gas1 $80 Electric4 Mobile Phone5 $164 $141 1. FY 2025 Atmos Energy enterprise-wide average monthly residential bill 2. Bluefield Rese
Slide 18: Regulatory Information
Regulatory Information Page 18
Slide 19: Regulatory Mechanisms To Support Recovery
Regulatory Mechanisms To Support Recovery Annual Revenue and Revenue Stability and Lag Mechanisms Lag Mechanisms Pension and Annual Rate Bad Debt in SSI CAMT Cloud Jurisdiction Infrastructure Retirement Cost WNA 1 Stabilization GCA Recovery Recovery Computing Trackers Colorado Kansas Ken
Slide 20: Key Regulatory Filings – Fiscal 2026E
Key Regulatory Filings – Fiscal 2026E Rate Filing Planned Timing Q1 Q2 Q3 Q4 October – December January – March April – June July – September Mid-Tex and WTX Cities – Anticipate filing Kansas – Anticipate filing Gas Safety Colorado – Implemented System Safety & Virginia – Implemented SAVE filing of
Slide 21: 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 22: 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 23: Atmos Pipeline - Texas
Atmos Pipeline - Texas • Atmos Pipeline: Implemented 2025 System Safety & Integrity (SSI) Rider on November 1, 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 expens
Slide 24: Colorado - Kansas Division
Colorado - Kansas Division • Kansas: Filed System Integrity Program (SIP) on January 15, 2026 • Requested an increase in annual operating income of $0.8 million • Requested rate base: $32.8 million • Test year ending December 31, 2025 • Colorado: Implemented Final System Safety & Integrity Rider (SS
Slide 25: Colorado - Kansas Division
Colorado - Kansas Division • Colorado: Filed General Rate Case on November 25, 2025 • Requested an increase in annual operating income of $17.6 million • Requested ROE: 10.80%; ROR: 8.17% • Requested capital structure: 40% debt / 60% equity • Requested rate base: $318.8 million • Test year ending Ju
Slide 26: Kentucky/Mid-States Division
Kentucky/Mid-States Division • Tennessee: Filed Annual Review Mechanism (ARM) on January 30, 2026 • Requested an annual operating income increase of $14.7 million • Requested ROE: 9.80%; ROR: 7.56% • Requested capital structure: 40% debt / 60% equity • Requested rate base: $694.3 million • Kentucky:
Slide 27: Mid-Tex Division
Mid-Tex Division • Mid-Tex Cities: Filed Dallas Annual Rate Review on January 15, 2026 • Requested an increase in annual operating income of $35.8 million • Requested ROE: 9.80%; ROR: 7.56% • Requested capital structure: 40% debt / 60% equity • Requested rate base: $9.4 billion • Test year ending Se
Slide 28: Mississippi Division
Mississippi Division • Mississippi: Implemented General Rate Case (SIR and SRF) on December 1, 2025 • Authorized a decrease in annual operating income of ($23.2 million) • Historic test year 12 months ended December 31, 2024 • Authorized ROE: 9.40%; ROR: 6.80% • Authorized capital structure: 50% deb
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