On this page of StockholderLetter.com we present the latest annual shareholder letter from ATMOS ENERGY CORP — ticker symbol ATO. Reading current and past ATO letters to shareholders can bring important insights into the investment thesis.

 •  12/20/2024 Letter Continued (Full PDF)
 •  12/29/2023 ATO Stockholder Letter
 •  More "Gas Utilities" Category Stockholder Letters
 •  ATO Benford's Law Stock Score = 83

ATO Shareholder/Stockholder Letter Transcript:

2024
Annual Report

Atmos Energy at a Glance
We safely deliver reliable, efficient, and abundant natural gas to more than
3.3 million homes and businesses.
Atmos Energy Corporation
Headquarters, Dallas, TX
Colorado-Kansas Division
Denver, CO
Mississippi Division
Flowood, MS
Kentucky/Mid-States Division
Franklin, TN
Natural gas distribution areas
Proprietary storage
Division offices
Major gas delivery hubs
Waha Hub
Carthage
Hub
West Texas Division
Lubbock, TX
Louisiana Division
Baton Rouge, LA
Katy Hub
Mid-Tex Division
Atmos Pipeline-Texas Division
Dallas, TX
Financial Highlights
3.3 million +
$24 billion
90% | 99%
Regulated distribution assets in
eight states serving
>3.3 million customers
Projected capital expenditures of
about $24 billion through fiscal
2029; over 86% spent on safety and
reliability.
Earning on about 90% of annual
capital expenditures within
6 months and on 99% within
12 months.
6% to 8%
22 | 40 years
6% to 8% forecasted earnings and
dividends per share growth through
fiscal 2029.
22 consecutive years of annual
EPS growth; 40 consecutive
years of annual dividend growth.
Atmos Energy 2024 Annual Report
1

Earnings Growth
Through System and Business Modernization
Constructive Regulatory Mechanisms Support System and
Business Modernization
$24 billion
in capital investments through
2029; >86% allocated to safety
Rate Base (in billions)

Constructive rate
mechanisms reducing
regulatory lag
Earning on Annual Investments
9%
$45
6% to 8%

consolidated EPS
growth
Earnings Per Share
1%
$12
$36.0-$38.0
$8
$27
$18
$9.15-$9.55
$10
$36
$16.6
$6.83
$7.05-$7.25
$6
$18.8
$4
90%
$9
$2
Within 0-6 months
$0
FY2023
FY2024
FY2029E
Distribution
Within 7-12 months
$0
FY2024 FY2025E FY2029E
Greater than 12 months
Pipeline and Storage
Fiscal 2024 by the Numbers
2
$1,043 million
$2.9 billion
Net income for the fiscal year of $1,043 million, compared
with net income of $886 million in fiscal 2023.
In fiscal 2024 we spent $2.9 billion to modernize our
natural gas distribution and transmissions systems.
$6.83 EPS
$3.22 per share
Earnings per diluted share in fiscal 2024 increased
12 percent compared to fiscal 2023 diluted earnings
per share of $6.10, marking our 22nd consecutive
annual increase.
Dividends paid in fiscal 2024 were $3.22 per share.
Atmos Energy 2024 Annual Report

In fiscal 2024, Atmos Energy continued our journey to being the safest
provider of natural gas services.
We invested $2.9 billion with about 83 percent of the capital investment dedicated to safety and reliability projects. These
investments not only improved the safety of our assets but also our environmental footprint. And, although our capital spending
has increased, our average monthly bill remains one of the lowest utility bills in the household.
850 miles
98 percent
54 percent
We replaced approximately
850 miles of natural gas
distribution and transmission
pipelines to make our system
even safer and more reliable.
Our customer support associate
and service technician satisfaction
ratings remained high at 98 percent.
The percentage of electronic bills
issued increased to 54 percent.
55,000 lines
145,000 hours
We replaced approximately
55,000 service lines.
We conducted approximately
145,000 hours of technical training
in order to continue to provide safe
and reliable service.
59,000 residential
customers
We added over 59,000 new
residential customers and
approximately 3,500 commercial
and 39 industrial customers.
Atmos Energy 2024 Annual Report
3

Letter To Our Stakeholders
A Message from Leadership
In Fiscal 2024, we continued to execute our proven investment strategy of operating safely and reliably
while we modernize our natural gas distribution, transmission, and storage systems.
Fiscal 2024 marked Atmos Energy   s 40th anniversary as
an independent company. All 5,200 employees at Atmos
Energy proudly serve our customers and communities as we
continue to be guided by the simple values of our founding
Chairman, Charles K. Vaughan: honesty, integrity, and good
moral character.
During the year, we invested $2.9 billion with approximately
83 percent of that capital investment dedicated to safety
and reliability projects. We also replaced over 850 miles of
distribution and transmission mains and 55,000 service lines.
Our capital investment spending program also supported the
strong economic development we continue to see across our
service territories. In fiscal 2024, we added over 59,000 new
residential and commercial customers with over 46,000 of those
new customers located in Texas. In addition, we saw robust
commercial and industrial customer growth as we added nearly
3,500 new commercial customers and 39 industrial customers.
This growing natural gas demand from all our customer classes
continues to demonstrate the vital role natural gas has in
economic development across our service territories.
our distribution operations contributed 64 percent. During fiscal
2024, we implemented $376 million in annualized operating
income increases. Additionally, we raised approximately $2.0
billion of long-term debt and equity financing in fiscal 2024 that
we used to support our capital spending program and maintain
our financial profile. We also renewed our primary five-year $1.5
billion credit facility and replaced our former three-year $900
million credit facility with a new three-year $1.5 billion credit
facility that will support our operations. We finished the fiscal
year with a strong financial position with total available liquidity
of $4.8 billion and an equity capitalization of 61 percent.
Making a Difference
Financial Performance
Through our Fueling Safe and Thriving Communities campaign,
our employees made a difference in the communities where
they live and work by collaborating with local school districts
and education foundations to promote childhood literacy,
supporting first responders and healthcare workers, and helping
our communities stay warm. Over the last five years, we have
invested more than $50 million to support local food banks and
shelters, provide books, meals, and snacks to local schools, and
supply meals and needed supplies to our hometown healthcare
workers and first responders.
Earnings per diluted share for fiscal 2024 rose for the twentysecond consecutive year to $6.83, which was a 12 percent
increase over fiscal 2023, and our dividend increased for the
fortieth year in a row to $3.22 per share, an 8.8 percent increase
over the prior year. Net income was $1,043 million, of which
In addition, in fiscal 2024, we provided nearly $23 million
in financial assistance for 57,000 of our customers in need.
And, during the last five years, we have assisted customers in
receiving almost $200 million of financial assistance through
LIHEAP, Sharing the Warmth, and other programs.
4
Atmos Energy 2024 Annual Report



 12/20/2024 Letter Continued (Full PDF)