Atmos Energy : June 2025 Analyst Update
ATO
Published on 06/20/2025 at 16:47
June 2025
Eight-state distribution territory
Business Mix
~37% Pipeline & Storage
~63%
Distribution
2025 Estimated Net Income
Intrastate pipeline system
Diversified LDC platform in 8 states
Favorably positioned pipeline spans Texas shale gas supply basins
Largest pure-play natural gas LDC with over 3.3 million customers in 8 states
~75,000 miles of distribution and transmission mains
~65% of distribution rate base is located in Texas
Blended allowed ROE of 9.8%
97% of rate base covered by all fuels legislation
Constructive regulatory mechanisms reduce lag
~13 Bcf of working storage capacity
~5,700 miles of intrastate pipeline
Spans multiple key shale gas formations
Connection to major market hubs
~53 Bcf of working storage capacity
Allowed ROE of 11.45%
Margin derived from tariff-based rates primarily serving Mid-Tex and other LDCs
Attractive pure-play total return supported by strong financial foundation
Safety-driven, organic growth strategy supports 6% - 8% earnings per share and dividend per share growth through Fiscal 2029
100% of earnings from fully regulated, leading natural gas delivery platform
22 consecutive years of EPS growth; 41 consecutive years of dividend growth
Strong investment-grade credit ratings/liquidity
Diversified and growing jurisdictional footprint
Regulated distribution assets in 8 states serving over 3 million customers
97% of rate base in states that offer policy support for investment in natural gas infrastructure
Strong customer growth
Favorably positioned regulated pipeline spans Texas shale gas supply basins
Transparent Capital Spending Horizon
Comprehensive risk-based replacement program
Further enhance resiliency and supply reliability while reducing methane emissions
Support strong customer growth in our existing footprint
Constructive Regulation Focused on Safety and Reliability
Annual filing mechanisms in most jurisdictions offer regular, consistent rate adjustments
Earning on ~90% of annual capex within 6 months; ~99% within 12 months
Significant percentage of revenue earned through fixed or tariff-based charges
Sustainability Integrated Into Strategy
Formal Board of Director oversight over sustainability
Comprehensive plan to reduce environmental impact from operations
Safely providing reliable, efficient and abundant natural gas with a lower carbon footprint than electricity
Investing in the communities we serve
Constructive Regulatory Mechanisms Support Efficient Conversion of Safety and Reliability Investments into Financial Results
~ $24 billion in capital investment through 2029; >86% allocated to safety
Constructive rate mechanisms that reduce regulatory lag
6% - 8% Consolidated EPS growth
Rate Base
$36.0B-
$18.8B
$16.6B
$38.0B
Annual Capex Recovery
Earnings per Share
$9.15 -
$6.831
$7.20 -
$7.30
$9.55
~90%
FY2023 FY2024 FY2029E
FY2024 FY2025E FY2029E
1. Inclusive of $0.17 of one-time benefits. See footnote 3 on slide 31.
~90% of Annual Capital Spend Begins to Earn Within Six Months
Regulatory Mechanisms
Recovery Method
Service Territory Detail
CapEx
Jurisdiction
Infrastructure
Deferral/ Forward-Looking
Annual Filing
General Case
Meters (000s)
Rate Base1
2025E ($MM)
($MM)
% of Total
Texas
Mid-Tex
8.209
✓
RRM/DARR/ GRIP
-
1,804
8,100
43
1,675-1,725
APT
GRIP
-
GRIP 2
-
NA
4,900
26
875-885
West Texas
8.209
✓
RRM/GRIP
-
315
1,200
6
225-235
Louisiana
RSC
✓
RSC
-
361
1,300
7
195-205
Mississippi
SIR
✓
SRF/SIR
-
251
1,100
6
215-225
Kentucky
PRP
✓
PRP
✓
177
680
4
65-75
Tennessee
-
✓
ARM
-
161
630
3
85-95
Kansas
GSRS
-
GSRS
✓
139
360
2
40-50
Colorado
SSIR
✓
SSIR
✓
130
300
2
35-45
Virginia
SAVE
✓
SAVE
✓
24
90
1
10-15
Represents an estimate of rate base as of September 30, 2024
Requires a rate case every five years
Disclaimer
AEC - Atmos Energy Corporation published this content on June 20, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 20, 2025 at 20:46 UTC.