Atmos Energy Corporation Q4 FY2025 earnings call

• Thanksgiving to veterans: Took opportunity to thank armed forces, noting ~300 Atmos Energy teammates who served. - Fiscal '25 results: 23rd consecutive year of EPS growth, 41st consecutive year of dividend growth. Added ~57,000 residential, ~3,200 commercial, and 29 industrial customers in fiscal '25. - Pipeline-Texas updates: Bethel to Groesbeck project nearing completion, Line WA Loop Phase 2 nearing completion, integrity inspections on caverns. - 5-year plan: Focus on safety/reliability via system modernization, $26B investment with 85% for safety/reliability, $21B in Texas. Impact of HB 4384 on capital recovery, expecting to recover over 95% of capital spending within 6 months and 99% within 12 months.

In fiscal '25, Atmos Energy reported diluted earnings per share of $7.46. Consolidated capital spending was $3.6 billion, with 87% dedicated to improving safety and reliability. Rate base increased by 14% to an estimated $21 billion as of September 30. While specific revenue contribution percentages by product segment aren't explicitly broken down, approximately $21 billion or 80% of the total planned capital spending is expected to be incurred in Texas.

• Fiscal '26 EPS guidance: $8.15 to $8.35, with anticipated EPS growth at 6% to 8% from the midpoint of rebased fiscal '26 EPS guidance. - Dividend to grow in line with EPS growth. - 5-year plan: Plan to invest $26 billion, with ~85% allocated to safety and reliability, ~$21 billion in Texas. - Anticipate O&M, excluding bad debt expense, to range from $865 million to $885 million in fiscal '26.

• Forward-looking statements could differ materially from actual results, with factors outlined in SEC filings. - Weather, market conditions, and regulatory changes pose potential risks to financial performance.

Q: Just wanted to start on maybe some of the larger load customers you guys are seeing across your service territory.

A: 85% of spend is dedicated towards safety and reliability, with modest growth included. Long-range planning models indicate need for fortifications due to population and demand growth in Texas.

Q: Talking a little bit about capital recovery.

A: Blessed with supportive jurisdictions, planning process has been on same cadence since 2011-2012, identifying system needs for safety, reliability, and growth.

Q: Double-click on the EPS rebase, specifically on capital recovery.

A: Impact from Texas HB 4384, plan has been consistent, including APT's investment.

Q: On O&M budgeting for '26.

A: Guidance midpoint consistent with current year, reset O&M plan based on compliance, system monitoring, and damage prevention activities, with 4% annual increases evaluated.

Q: Waha gas prices.

A: Do not incorporate into guidance, assume normal activity, monitor, and 75% of Waha impact benefits customers.

Q: Texas HB 4384 and EPS rebase.

A: Rebasing due to full year impact of HB 4384, factored into 6%-8% growth from midpoint.

Q: Equity funding.

A: Balance between equity and debt, roughly 50-50 split, with equity capitalization at ~60%.

Q: HB 4384 benefits and 60-40 split.

A: 5-year plan has consistent cadence, 60% impact in distribution over 5-year plan.

Q: Dividend and HB 4384 durability.

A: Dividend moved 15% from '25 to '26, intends to grow 6%-8% over next 5 years in line with EPS growth