Financial Data and Key Metrics Changes - The total shares present at the meeting were more than 80 million, representing over 50% of the company's outstanding common stock [2][3] - All nominees for election to the board of directors received a full vote from a majority of the shares present or represented by proxy [7] Business Line Data and Key Metrics Changes - The meeting included proposals related to the election of directors, ratification of the independent auditor, and compensation of named executive officers, indicating a focus on governance and executive accountability [4][5] Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting [1] Company Strategy and Development Direction - The company is focused on governance improvements, as evidenced by multiple proposals to amend articles of incorporation, including increasing the number of authorized shares and clarifying indemnification provisions [5][8] Management Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting [1] Other Important Information - The meeting included eight proposals, all of which were approved by a majority of the votes cast, indicating strong shareholder support for the company's governance and operational strategies [8] Q&A Session All Questions and Answers - No shareholder questions were submitted prior to the meeting, and therefore no Q&A session took place [1][2]

Financial Data and Key Metrics Changes - The company reported a net income of $403 million for the first quarter of fiscal 2026, translating to $2.44 per diluted share, which is a 9.4% increase compared to the prior year quarter [4][10] - Capital expenditures for the first quarter totaled $1 billion, with over 85% focused on enhancing safety and reliability [4][5] - The rebased fiscal 2026 earnings per share guidance is set in the range of $8.15-$8.35 per share [4][14] Business Line Data and Key Metrics Changes - The Atmos Pipeline-Texas division completed significant projects, including the installation of approximately 55 miles of pipeline and enhancements to the Bethel Salt Dome storage facility [5][6] - Rate increases across operating segments contributed an additional $68 million to operating income [10] - APT's through system revenues, net of Rider REV, increased by about $7 million, although through system volumes declined by approximately 2 Bcf due to maintenance [10][11] Market Data and Key Metrics Changes - The company added nearly 54,000 new customers over the 12 months ending December 31, 2025, with 42,000 in Texas [7] - Customer satisfaction ratings reached 98% for the quarter, and Atmos Energy was recognized for customer satisfaction in the South and Midwest regions [8][9] Company Strategy and Development Direction - The company continues to focus on system modernization and safety, aiming to be the safest provider of natural gas services [3] - The strategy includes significant capital investments, with a planned capital spending of $4.2 billion for fiscal 2026 [14] - The company is actively engaging in regulatory discussions regarding affordability and reliability, emphasizing the importance of investments for system performance [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the rebased earnings guidance and highlighted the positive impact of recent projects and customer growth [10][14] - The company noted that the recent Winter Storm Fern had minimal impact on supply and operational performance compared to previous storms [24] Other Important Information - The company has $4.6 billion in available liquidity, including $1.1 billion in net proceeds from existing forward sale agreements [13][14] - The company is pursuing additional regulatory filings for annualized operating income increases, seeking approximately $400 million [12] Q&A Session Summary Question: Discussion on the $35 million benefit for the quarter - Management indicated that the benefit will be influenced by spending timing and operational activities, maintaining guidance of $8.15-$8.35 per share [16][17] Question: Financial impacts from Winter Storm Fern - Management stated that the storm's impact was not as significant as previous storms, with minimal supply issues and effective gas supply plans in place [23][24] Question: Affordability pressures in regulatory proceedings - Management confirmed that affordability is a continuous topic with regulators, who understand the need for investment to maintain reliability [31][32] Question: Opportunities in gas power and storage - Management noted ongoing inquiries for large loads and power generation, with evaluations for potential gas storage needs post-winter [55][56] Question: Impact of recent political changes in Texas - Management emphasized an apolitical stance, focusing on collaboration with all stakeholders to promote the importance of natural gas [38][39] Question: Mississippi rate case outcomes - Management indicated that the plan remains unchanged, focusing on safety and reliability investments regardless of regulatory outcomes [40][41]

Financial Data and Key Metrics Changes - The company reported a fiscal 2026 first quarter net income of $403 million, or $2.44 per diluted share, representing a 9.4% increase over the prior year quarter [4][10] - First quarter capital expenditures totaled $1 billion, with over 85% focused on enhancing safety and reliability [4][10] - The rebased fiscal 2026 earnings per share guidance is in the range of $8.15-$8.35 per share [4][14] Business Line Data and Key Metrics Changes - The Atmos Pipeline-Texas division achieved several project milestones, including the installation of approximately 55 miles of pipeline and enhancements to the Bethel Salt Dome storage facility [5][6] - APT's through system revenues, net of Rider REV, increased by about $7 million, although through system volumes declined approximately 2 Bcf due to maintenance [10][11] Market Data and Key Metrics Changes - The company added nearly 54,000 new customers over the 12 months ending December 31, 2025, with approximately 42,000 in Texas [7] - Customer satisfaction ratings reached 98% for the quarter, and Atmos Energy was recognized for customer satisfaction in the South and Midwest regions [8][9] Company Strategy and Development Direction - The company continues to focus on system modernization and safety, with a capital spending plan of $4.2 billion [4][14] - The company is actively engaging in regulatory discussions regarding affordability and reliability, emphasizing the importance of investments for system performance [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage the impacts of Winter Storm Fern, noting minimal supply issues and effective gas supply planning [23][24] - The company remains on track to achieve its fiscal 2026 earnings guidance and is evaluating future needs for gas supply and storage based on customer growth [14][54] Other Important Information - The company completed over $1 billion of long-term debt and equity financing, with $600 million in long-term debt financing completed in October 2025 [12][13] - The company has $4.6 billion in available liquidity, including net proceeds from existing forward sale agreements [13][14] Q&A Session Summary Question: Discussion on the $35 million benefit for the quarter - Management indicated that the impact of the deferrals under House Bill 4384 will depend on spending timing and operational activities, maintaining guidance of $8.15-$8.35 per share [16][17] Question: Financial impacts from Winter Storm Fern - Management noted that the storm's impact was less severe than previous events, with effective gas supply planning mitigating potential issues [23][24] Question: Affordability pressures in regulatory proceedings - Management confirmed that affordability is a continuous topic with regulators, who understand the need for investment to maintain reliability and safety [31][32] Question: Opportunities in gas power projects - Management acknowledged ongoing inquiries regarding large loads and power generation but emphasized the need for signed contracts before making announcements [34] Question: Impact of recent political changes in Texas - Management stated that the company remains apolitical and will work with all stakeholders to emphasize the importance of natural gas for communities [38] Question: Mississippi rate case outcome - Management confirmed that the outcome will not adjust the overall investment plan, which focuses on safety and reliability [39][40]

Financial Data and Key Metrics Changes - For Q1 2026, the company reported a net income of $403 million, or $2.44 per diluted share, representing a 9.4% increase compared to the prior year quarter [4][11] - Capital expenditures for the first quarter totaled $1 billion, with over 85% focused on enhancing safety and reliability [4][11] - The rebased fiscal 2026 earnings per share guidance is in the range of $8.15-$8.35 per share [4][14] Business Line Data and Key Metrics Changes - The Atmos Pipeline-Texas division completed significant projects, including the installation of approximately 55 miles of pipeline and enhancements to the Bethel Salt Dome storage facility [5][6] - APT's through system revenues, net of Rider REV, increased by about $7 million, while through system volumes declined by approximately 2 Bcf due to maintenance [11][12] Market Data and Key Metrics Changes - The Texas Workforce Commission reported that the seasonally adjusted number of employees in Texas was 14.3 million, with job growth outpacing the national rate [8] - The company added nearly 54,000 new customers over the 12 months ending December 31, 2025, with over 1,100 commercial customers added in the first quarter [7][8] Company Strategy and Development Direction - The company continues to focus on system modernization and safety, aiming to be the safest provider of natural gas services [3][4] - The strategy includes significant capital investments, with a planned capital spending of $4.2 billion for the fiscal year [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the rebased earnings per share guidance and highlighted the positive impact of Texas House Bill 4384 on financial performance [11][14] - The company noted that the recent Winter Storm Fern had minimal supply issues, indicating strong operational resilience [23][24] Other Important Information - The company has implemented $123 million in annualized operating income increases in its distribution segment since the beginning of the fiscal year [13] - Customer satisfaction ratings reached 98% for the quarter, with recognition from J.D. Power and Escalent for exceptional customer service [9][10] Q&A Session Summary Question: Discussion on the $35 million benefit for the quarter - Management indicated that the $35 million benefit is influenced by spending timing and operational activities, maintaining guidance of $8.15-$8.35 for earnings per share [16][17] Question: Financial impacts from Winter Storm Fern - Management stated that the storm's impact was not as significant as previous storms, with minimal supply issues and effective gas supply plans in place [20][23] Question: Affordability pressures in regulatory proceedings - Management confirmed that affordability is a continuous topic with regulators, who understand the need for investment to maintain reliability and safety [31][32] Question: Impact of recent political changes in Texas - Management emphasized an apolitical stance, focusing on collaboration with all stakeholders to promote the importance of natural gas for communities [38][39] Question: Updates on the Mississippi rate case - Management noted that the outcome of the Mississippi rate case does not adjust the overall plan, as safety and reliability remain the primary focus [40][41]

Analyst Call to Review Fiscal 2026 First Quarter Financial Results February 4, 2026 9:00 a.m. Eastern Fiscal Q1 2026 Review As of February 3, 2026 Page 2 Q1 Fiscal 2026 Financial Performance Fiscal 2026 Highlights • Financial Performance • Executed Our Regulatory Strategy • Strong Balance Sheet Consolidated Financial Highlights | | | | Three Months Ended December 31 | | | --- | --- | --- | --- | --- | | Segment Net Income ($millions, except EPS) | | | | | | | 2025 | | | 2024 | | Distribution | $ | 269 | $ | ...

Core Insights - Atmos Energy reported revenue of $1.34 billion for the quarter ended December 2025, marking a 14.2% increase year-over-year, but fell short of the Zacks Consensus Estimate of $1.44 billion by -6.45% [1] - The company's EPS for the quarter was $2.44, an increase from $2.23 in the same quarter last year, exceeding the consensus EPS estimate of $2.41 by +1.46% [1] Revenue Performance - Pipeline and Storage segment generated operating revenues of $286.63 million, surpassing the average estimate of $283.06 million by analysts, reflecting a year-over-year increase of +12.2% [4] - Distribution segment reported operating revenues of $1.26 billion, exceeding the average estimate of $1.17 billion, with a year-over-year growth of +13.5% [4] Operating Income - Operating income for the Pipeline and Storage segment was $165.5 million, slightly below the average estimate of $167.62 million from analysts [4] - Operating income for the Distribution segment was $349.2 million, which also fell short of the average estimate of $354.4 million [4] Stock Performance - Atmos Energy's shares have returned -0.2% over the past month, in contrast to the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Atmos Energy (ATO) reported quarterly earnings of $2.44 per share, exceeding the Zacks Consensus Estimate of $2.41 per share, and showing an increase from $2.23 per share a year ago, representing an earnings surprise of +1.46% [1][2] Financial Performance - The company posted revenues of $1.34 billion for the quarter ended December 2025, which was 6.45% below the Zacks Consensus Estimate, compared to $1.18 billion in revenues from the same quarter last year [2] - Over the last four quarters, Atmos has surpassed consensus EPS estimates three times but has only topped consensus revenue estimates once [2] Stock Performance - Atmos shares have decreased by approximately 0.7% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current Zacks Rank for Atmos is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $3.28, with expected revenues of $2.22 billion, and for the current fiscal year, the estimate is $8.08 on revenues of $5.61 billion [7] - The trend of estimate revisions for Atmos was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Utility - Gas Distribution industry, to which Atmos belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Sempra (SRE), is expected to report quarterly earnings of $1.13 per share, reflecting a year-over-year decline of -24.7% [9]

Core Insights - Atmos Energy reported a 14.5% increase in first-quarter profit, driven by strong demand for its gas distribution and pipeline facilities [1] Company Performance - The profit rise indicates robust operational performance within the natural gas utility sector, highlighting the effectiveness of Atmos Energy's distribution and pipeline services [1]

Financial Performance - For the three months ended December 31, 2025, the company recorded net income of $403.0 million, or $2.44 per diluted share, representing a 15% year-over-year increase from $351.9 million, or $2.23 per diluted share in the same period of 2024 [109][110]. - The increase in net income was primarily driven by positive rate outcomes from safety and reliability spending, along with a $35.2 million impact from Texas legislation related to infrastructure spending [110]. - Operating revenues for the three months ended December 31, 2025, increased to $1,258,826,000 from $1,109,335,000 in 2024, representing a change of $149,491,000 or 13.5% [121]. - Operating income for the distribution segment increased by 10.5%, with total operating income reaching $349,238,000 compared to $316,048,000 in the previous year, an increase of $33,190,000 [122]. - Net income for the three months ended December 31, 2025, was $133.7 million, reflecting a 19.8% increase from $111.6 million in the prior year [141]. Capital Expenditures and Financing - Capital expenditures for the three months ended December 31, 2025, totaled $1,033.3 million, with over 85% allocated to improving safety and reliability of distribution and transportation systems [112]. - The company anticipates spending approximately $26 billion on capital expenditures between fiscal years 2026 and 2030, with over 80% dedicated to safety and reliability [106]. - The company completed approximately $1.1 billion of long-term debt and equity financing during the same period, with an equity capitalization of 59.9% as of December 31, 2025 [113]. - The company has a shelf registration statement allowing for the issuance of up to $8.0 billion in common stock and/or debt securities, with $5.2 billion available as of December 31, 2025 [143]. - The company issued approximately $1.1 billion in net proceeds from long-term debt and equity during the three months ended December 31, 2025 [154]. Regulatory and Rate Adjustments - Ratemaking regulatory actions implemented or approved during the three months resulted in an increase in annual operating income of $122.5 million, with additional efforts in progress seeking a total increase of $34.0 million [111]. - A $122.5 million increase in annual operating income was achieved through regulatory proceedings, including a $145,676,000 increase from annual formula rate mechanisms [125]. - Rate adjustments contributed an increase of $47.7 million, primarily in the Mid-Tex Division, and residential customer growth added $5.8 million [127]. - The company is pursuing $34.0 million in increased annual operating income through ongoing rate actions in the Colorado-Kansas division [128]. - The company implemented regulatory mechanisms to reduce lag, allowing for annual rate adjustments without formal rate cases in several states [130]. Liquidity and Financial Position - As of December 31, 2025, the company had approximately $4.6 billion in total liquidity, including $367.0 million in cash and cash equivalents [113]. - The carrying amount of the company's long-term debt as of December 31, 2025, was $9,525.0 million, with a fair value of $8,772.2 million [94]. - As of December 31, 2025, total long-term debt was $9.6 billion, representing 40.1% of total capitalization, while shareholders' equity was $14.3 billion, or 59.9% [146]. - The company maintains a $1.5 billion commercial paper program and $3.1 billion in committed revolving credit facilities to support liquidity needs [142]. - Credit ratings from S&P and Moody's remain investment grade, with senior unsecured long-term debt rated A- and A2, respectively [158]. Market and Sales Performance - Consolidated distribution sales volumes rose to 75,133 MMcf, up from 71,924 MMcf, reflecting an increase of 3,209 MMcf or 4.5% [121]. - The average cost of gas per Mcf sold increased to $6.62 from $5.88, a rise of $0.74 or 12.6% [121]. - Total operating revenues for the three months ended December 31, 2025, increased to $286.6 million, up 12.2% from $255.4 million in the same period of 2024 [141]. - Operating income rose by 15.4% to $165.5 million, driven by a $20.2 million increase from rate adjustments and a $3.8 million increase due to higher capacity contracted by tariff-based customers [141][144]. - Cash flow from operating activities increased to $308.1 million, up from $282.0 million, primarily due to successful rate case outcomes [149]. Risk Management - The effective tax rates for the three months ended December 31, 2025, and 2024 were 20.0% and 18.4%, respectively, differing from the federal statutory tax rate of 21% due to various adjustments [71]. - The company manages interest rate risk by entering into financial instruments to fix the Treasury yield component of anticipated financings [77]. - The company utilizes a combination of physical storage, fixed-price forward contracts, and financial instruments to manage exposure to volatile natural gas prices [75]. - There were no material changes in the company's concentration of credit risk during the three months ended December 31, 2025 [95]. - The company reported no material changes in quantitative and qualitative disclosures about market risk during the three months ended December 31, 2025 [166].

February 3, 2026 Date of Report (Date of earliest event reported) ATMOS ENERGY CORPORATION (Exact Name of Registrant as Specified in its Charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Texas and Virginia 1-10042 75-1743247 --------------------------------- ------------------------ ---------------------- (State or Other Jurisdiction (Commission File (I.R.S. Employer of Incorporation ...