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
$6.10
~90%
FY2022
FY2023
FY2028E
Distribution
Pipeline
Within 0
- 6 Months
Within 7
- 12
Months
FY2023
FY2024E
FY2028E
Greater than
12 Months
As of May 9, 2024
Page 4
Constructive Regulation Focused on Safety and Reliability
~90% of Annual Capital Spend Begins to Earn Within Six Months
Regulatory Mechanisms
Recovery Method
Service Territory Detail
CapEx
Deferral/
Annual
General
Rate Base1
2024E
Jurisdiction
Infrastructure
Forward-
Meters (000s)
% of
Filing
Case
($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
Page 5
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
Page 8
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.