Atmos Energy : Analyst Update July 2024

ATO

Our vision is for Atmos Energy to be the Safest provider of natural gas services. We will be recognized for Exceptional Customer Service, for being a Great Employer and for achieving Superior Financial Results.

July 2024

Leading Natural Gas Delivery Platform

Eight-state distribution territory

Business Mix

Intrastate pipeline system

~34%

Pipeline &

Storage

~66%

Distribution

2024 Estimated Net Income

Diversified LDC platform in 8 states

Favorably positioned pipeline spans

Texas shale gas supply basins

As of July 1, 2024

Page 2

Sustainable Performance Supported By Focused Business Model

Attractive pure-play total return supported by strong financial foundation

Diversified and

growing jurisdictional

footprint

Transparent Capital Spending Horizon

Constructive

Regulation Focused

on Safety and

Reliability

Sustainability

Integrated Into

Strategy

As of May 9, 2024

Page 3

Safety Driven, Organic Growth Strategy

Constructive Regulatory Mechanisms Support Efficient Conversion of Safety and Reliability Investments into Financial Results

Rate Base

$28.0B- $30.0B

$16.6B

$14.1B

Constructive rate mechanisms

that reduce regulatory lag

Annual Capex Recovery

6% - 8% Consolidated EPS

growth

Earnings per Share $8.35 - $8.75

$6.70 -

$6.80

$6.10

~90%

FY2022

FY2023

FY2028E

Distribution

Pipeline

Within 0

- 6 Months

Within 7

- 12

Months

FY2023

FY2024E

FY2028E

Greater than

12 Months

As of May 9, 2024

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Constructive Regulation Focused on Safety and Reliability

~90% of Annual Capital Spend Begins to Earn Within Six Months

Regulatory Mechanisms

Recovery Method

Service Territory Detail

CapEx

Deferral/

Annual

General

Rate Base1

2024E

Jurisdiction

Infrastructure

Forward-

Meters (000s)

% of

Filing

Case

($MM)

($MM)

Looking

Total

Texas

Mid-Tex

8.209

RRM/DARR/

-

1,856

6,800

41

1,250-1,275

GRIP

APT

GRIP

-

GRIP 2

-

NA

4,400

27

830-840

West

8.209

RRM/GRIP

-

331

1,150

7

170-180

Texas

Louisiana

RSC

RSC

-

378

1,200

7

160-170

Mississippi

SIR

SRF/SIR

-

274

1,000

6

160-170

Kentucky

PRP

PRP

186

640

4

60-70

Tennessee

-

ARM

-

165

560

3

80-90

Kansas

GSRS

-

GSRS

142

320

2

40-50

Colorado

SSIR

SSIR

129

270

2

30-40

Virginia

SAVE

-

SAVE

25

80

1

10-15

As of July 1, 2024

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Constructive Regulation Focused on Safety and Reliability

Ongoing Modernization Supported By Efficient Recovery Mechanisms

Constructive Regulation Supports

Constructive Regulation Provides

• More predictable earnings and cash flow

• Regular, consistent rate adjustments

• Smaller annual impact to customer bills

1. Revenue excluding gas costs

As of July 1, 2024

Page 6

Leading Natural Gas Delivery Platform

97% of Rate Base in states that offer policy support for investment in natural gas infrastructure

Passed

(Atmos Passed Proposed Legislation

Jurisdictions)

As of July 1, 2024

Page 7

Leading Natural Gas Delivery Platform

Diversified LDC Platform in Eight States

• Largest pure-play natural gas LDC with over 3 million customers

• Largest Natural Gas Distributor in Texas with ~ 2.1 million customers

• ~73,500 miles of distribution and transmission mains

• Connected to 38 different pipelines across 8 states providing supplier diversity

• Blended allowed ROE of 9.8%

• Constructive regulatory mechanisms reduce lag

• ~65% of revenues earned in the first 6 months of the fiscal year

• $12.2 billion estimated rate base as of September 30, 2023

• Represents 67% of consolidated net income

As of July 1, 2024

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Modernizing Our Distribution System

~$12.5 Billion Capital Plan Through 2028; > 82% Focused On Safety and Reliability

Distribution Miles Replaced1

1000

750

500

250

0

2016 2017 2018 2019 2020

2021 2022 2023 24E-28E

Bare Steel, Cast Iron, Vintage Plastics

Other Risk-Based Materials

Inventory of Steel Service Lines2

Thousands

1,200

1,167

1,000

800

685

~600-630

600

400

200

0

2012

2023

2028E

As of May 15, 2024

Page 9

Leading Natural Gas Delivery Platform

APT is Favorably Positioned Intrastate Pipeline Spans Texas Shale Gas Supply Basins

• Regulated by the Railroad Commission of Texas

• Established to provide gas supply service to Mid-Tex and other LDCs

• 100% of margin derived from tariff-based rates

• ~5,700 miles of intrastate pipeline

• Spans multiple key shale gas formations

• Connections at all 3 Texas Hubs - Waha, Katy & Carthage

• Transported approximately 831 Bcf in Fiscal 2023

• Average throughput of 2.3 Bcf/d

• Five storage facilities with 53 Bcf of working capacity

• Allowed ROE of 11.45%

• Margin derived from tariff-based rates primarily serving Mid-Tex and other LDCs

• $4.4 million estimated rate base as of September 30, 2023

• Represents ~33% of consolidated net income

As of July 1, 2024

Page 10

Disclaimer

AEC - Atmos Energy Corporation published this content on 01 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 July 2024 03:32:04 UTC.