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Atmos Energy
ATO
#830
Rank
C$40.50 B
Marketcap
๐Ÿ‡บ๐Ÿ‡ธ United States
Country
C$242.64
Share price
-2.43%
Change (1 day)
12.70%
Change (1 year)
๐Ÿšฐ Utility companies
Categories
Atmos Energy Corporation, headquartered in Dallas, Texas, is an American natural-gas distributor.
  1. Atmos Energy
  2. Quarterly Reports (10-Q)
  3. Submitted on 2026-05-06

Atmos Energy - 10-Q quarterly report FY


Text size:
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2026
or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to                    
Commission File Number 1-10042
Atmos Energy Corporation
(Exact name of registrant as specified in its charter)
TexasandVirginia75-1743247
(State or other jurisdiction of
incorporation or organization)		(IRS employer
identification no.)
1800 Three Lincoln Centre
5430 LBJ Freeway
DallasTexas75240
(Address of principal executive offices)(Zip code)
(972) 934-9227
(Registrant’s telephone number, including area code)
Title of each classTrading SymbolName of each exchange on which registered
Common stockNo Par ValueATONew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  þ    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filerþAccelerated filer¨Non-accelerated filer¨Smaller reporting company☐Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    Yes  ☐    No  þ
Number of shares outstanding of each of the issuer’s classes of common stock, as of May 1, 2026.
ClassShares Outstanding
Common stockNo Par Value166,919,822


GLOSSARY OF KEY TERMS
 
AECAtmos Energy Corporation
AEKAtmos Energy Kansas Securitization I, LLC
AOCIAccumulated other comprehensive income
ARMAnnual Rate Mechanism
ASCAccounting Standards Codification
BcfBillion cubic feet
DARRDallas Annual Rate Review
FASBFinancial Accounting Standards Board
GAAPGenerally Accepted Accounting Principles
GRIPGas Reliability Infrastructure Program
GSRSGas System Reliability Surcharge
KCCKansas Corporation Commission
McfThousand cubic feet
MMcfMillion cubic feet
Moody’sMoody’s Investors Services, Inc.
PRPPipeline Replacement Program
RRCRailroad Commission of Texas
RRMRate Review Mechanism
RSCRate Stabilization Clause
S&PStandard & Poor’s Corporation
SAVESteps to Advance Virginia Energy
SECUnited States Securities and Exchange Commission
Securitized Utility Tariff BondsSeries 2023-A Senior Secured Securitized Utility Tariff Bonds
Securitized Utility Tariff PropertyAs defined in the financing order issued by the KCC in October 2022
SIPSystem Integrity Program
SIRSystem Integrity Rider
SOFRSecured Overnight Financing Rate
SRFStable Rate Filing
SSIRSystem Safety and Integrity Rider
TCJATax Cuts and Jobs Act of 2017
WNAWeather Normalization Adjustment

2

PART I. FINANCIAL INFORMATION
Item 1.Financial Statements

ATMOS ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS 
March 31,
2026		September 30,
2025
 (Unaudited)
 (In thousands, except
share data)
ASSETS
Property, plant and equipment$31,191,277 $29,264,136 
Less accumulated depreciation and amortization4,121,333 3,971,146 
Net property, plant and equipment27,069,944 25,292,990 
Current assets
Cash and cash equivalents125,694 202,687 
Restricted cash and cash equivalents1,414 1,116 
Cash and cash equivalents and restricted cash and cash equivalents127,108 203,803 
Accounts receivable, net
644,630 375,509 
Gas stored underground135,871 171,756 
Other current assets
354,410 301,627 
Total current assets1,262,019 1,052,695 
Securitized intangible asset, net (See Note 9)
70,433 75,127 
Goodwill731,257 731,257 
Deferred charges and other assets
1,246,443 1,097,453 
$30,380,096 $28,249,522 
CAPITALIZATION AND LIABILITIES
Shareholders’ equity
Common stock, no par value (stated at $0.005 per share); 200,000,000 shares authorized; issued and outstanding: March 31, 2026 — 166,918,310 shares; September 30, 2025 — 161,568,384 shares
$835 $808 
Additional paid-in capital8,925,235 8,221,455 
Accumulated other comprehensive income465,272 475,015 
Retained earnings5,517,308 4,861,612 
Shareholders’ equity14,908,650 13,558,890 
Long-term debt, net9,554,229 8,907,169 
Securitized long-term debt (See Note 9)
63,751 68,236 
Total capitalization24,526,630 22,534,295 
Current liabilities
Accounts payable and accrued liabilities467,022 506,516 
Other current liabilities780,213 835,557 
Current maturities of long-term debt2,395 11,775 
Current maturities of securitized long-term debt (See Note 9)
8,858 8,767 
Total current liabilities1,258,488 1,362,615 
Deferred income taxes3,180,269 2,918,347 
Regulatory excess deferred taxes103,214 117,482 
Regulatory cost of removal obligation509,930 532,461 
Deferred credits and other liabilities801,565 784,322 
$30,380,096 $28,249,522 
See accompanying notes to condensed consolidated financial statements.


3

ATMOS ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 Three Months Ended March 31
 20262025
(Unaudited)
(In thousands, except per
share data)
Operating revenues
Distribution segment$1,877,680 $1,882,528 
Pipeline and storage segment289,289 258,999 
Intersegment eliminations(204,567)(191,025)
Total operating revenues1,962,402 1,950,502 
Purchased gas cost
Distribution segment870,912 969,037 
Pipeline and storage segment721 968 
Intersegment eliminations(204,315)(190,772)
Total purchased gas cost667,318 779,233 
Operation and maintenance expense195,790 233,296 
Depreciation and amortization expense195,687 182,750 
Taxes, other than income138,803 126,284 
Operating income764,804 628,939 
Other non-operating income17,516 24,172 
Interest charges48,731 50,014 
Income before income taxes733,589 603,097 
Income tax expense151,690 117,521 
Net income
$581,899 $485,576 
Basic net income per share$3.49 $3.05 
Diluted net income per share$3.47 $3.03 
Cash dividends per share$1.00 $0.87 
Basic weighted average shares outstanding166,464 159,177 
Diluted weighted average shares outstanding167,812 160,426 
Net income$581,899 $485,576 
Other comprehensive income (loss), net of tax
Net unrealized holding gains (losses) on available-for-sale securities, net of tax of $(45) and $20
(158)73 
Cash flow hedges:
Amortization and unrealized losses on interest rate agreements, net of tax of $(1,366) and $(1,622)
(4,780)(5,660)
Total other comprehensive loss(4,938)(5,587)
Total comprehensive income$576,961 $479,989 
See accompanying notes to condensed consolidated financial statements.




4

ATMOS ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 Six Months Ended March 31
 20262025
(Unaudited)
(In thousands, except per
share data)
Operating revenues
Distribution segment$3,136,506 $2,991,863 
Pipeline and storage segment575,922 514,389 
Intersegment eliminations(407,441)(379,751)
Total operating revenues3,304,987 3,126,501 
Purchased gas cost
Distribution segment1,367,948 1,391,607 
Pipeline and storage segment2,288 910 
Intersegment eliminations(406,919)(379,236)
Total purchased gas cost963,317 1,013,281 
Operation and maintenance expense425,600 440,340 
Depreciation and amortization expense390,332 363,283 
Taxes, other than income246,170 221,178 
Operating income1,279,568 1,088,419 
Other non-operating income39,747 48,806 
Interest charges82,144 102,939 
Income before income taxes1,237,171 1,034,286 
Income tax expense252,308 196,852 
Net income$984,863 $837,434 
Basic net income per share$5.98 $5.31 
Diluted net income per share$5.92 $5.26 
Cash dividends per share$2.00 $1.74 
Basic weighted average shares outstanding164,596 157,739 
Diluted weighted average shares outstanding166,342 159,125 
Net income$984,863 $837,434 
Other comprehensive income (loss), net of tax
Net unrealized holding losses on available-for-sale securities, net of tax of $(45) and $(22)
(157)(65)
Cash flow hedges:
Amortization and unrealized gains (losses) on interest rate agreements, net of tax of $(2,704) and $1,870
(9,586)10,901 
Total other comprehensive income (loss)(9,743)10,836 
Total comprehensive income$975,120 $848,270 
See accompanying notes to condensed consolidated financial statements.
5

ATMOS ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 Six Months Ended March 31
 20262025
(Unaudited)
(In thousands)
Cash Flows From Operating Activities
Net income$984,863 $837,434 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense390,332 363,283 
Deferred income taxes228,488 170,965 
Other(34,970)(32,691)
Net assets / liabilities from risk management activities2,837 845 
Net change in other operating assets and liabilities(540,003)(134,877)
Net cash provided by operating activities
1,031,547 1,204,959 
Cash Flows From Investing Activities
Capital expenditures(2,036,935)(1,730,857)
Debt and equity securities activities, net(5,319)710 
Other, net6,488 12,609 
Net cash used in investing activities
(2,035,766)(1,717,538)
Cash Flows From Financing Activities
Net proceeds from equity issuances671,633 379,490 
Issuance of common stock through stock purchase and employee retirement plans3,738 7,888 
Proceeds from issuance of long-term debt596,532 645,372 
Repayment of long-term debt(10,000)— 
Repayment of securitized long-term debt by AEK(4,394)(4,051)
Cash dividends paid(324,510)(273,869)
Debt issuance costs(5,475)(5,987)
Net cash provided by financing activities
927,524 748,843 
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents
(76,695)236,264 
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period203,803 308,856 
Cash and cash equivalents and restricted cash and cash equivalents at end of period$127,108 $545,120 
See accompanying notes to condensed consolidated financial statements.
6

ATMOS ENERGY CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
March 31, 2026
1.    Nature of Business
Atmos Energy Corporation (“Atmos Energy” or the “Company”) and its subsidiaries are engaged in the regulated natural gas distribution and pipeline and storage businesses. Our distribution business is subject to federal and state regulation and/or regulation by local authorities in each of the states in which our regulated divisions and subsidiaries operate.
Our distribution business delivers natural gas through sales and transportation arrangements to approximately 3.4 million residential, commercial, public authority, and industrial customers through our six regulated distribution divisions, which at March 31, 2026, covered service areas located in eight states.
Our pipeline and storage business, which is also subject to federal and state regulations, includes the transportation of natural gas to our Texas and Louisiana distribution systems and the management of our underground storage facilities used to support our distribution business in various states.
    
2.    Summary of Significant Accounting Policies
Basis of presentation
These consolidated interim-period financial statements have been prepared in accordance with accounting principles generally accepted in the United States on the same basis as those used for the Company’s audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. In the opinion of management, all material adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been made to the unaudited consolidated interim-period financial statements. These consolidated interim-period financial statements are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited consolidated financial statements of Atmos Energy Corporation included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. Because of seasonal and other factors, the results of operations for the six-month period ended March 31, 2026 are not indicative of our results of operations for the full 2026 fiscal year, which ends September 30, 2026.
Significant accounting policies
Our accounting policies are described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.
During the second quarter of fiscal 2026, we completed our annual goodwill impairment assessment using a qualitative assessment, as permitted under U.S. GAAP. We test for goodwill at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit. Based on the assessment performed, we determined that our goodwill was not impaired.
No events have occurred subsequent to the balance sheet date that would require recognition or disclosure in the condensed consolidated financial statements.
Recently issued accounting pronouncements
In November 2024, the FASB issued guidance that will require more detailed information about the types of expenses in commonly presented expense captions. The amendment is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. This amendment will be effective for our Form 10-K for fiscal 2028 and our Form 10-Q for the first quarter of fiscal 2029. We are currently evaluating the impact this may have on our financial statement disclosures.
In September 2025, the FASB issued guidance which provides qualitative updates to the determination of capitalizing internal-use software costs by expanding the scope to allow for various software development methods. The amendment is effective for fiscal years beginning after December 15, 2027. Early adoption is permitted, and the amendment may be applied prospectively, retrospectively, or with a modified transition approach. This amendment will be effective for our Form 10-K for fiscal 2029 and our Form 10-Q for the first quarter of fiscal 2029. We are currently evaluating the impact this may have on our financial statement disclosures.
    
3.    Regulation
Accounting principles generally accepted in the United States require cost-based, rate-regulated entities that meet certain criteria to reflect the authorized recovery of costs due to regulatory decisions in their financial statements. As a result, certain
7

costs are permitted to be capitalized rather than expensed because they can be recovered through rates. We record certain costs as regulatory assets when future recovery through customer rates is considered probable. Regulatory liabilities are recorded when it is probable that revenues will be reduced for amounts that will be credited to customers through the ratemaking process. Substantially all of our regulatory assets are recorded as a component of other current assets and deferred charges and other assets and our regulatory liabilities are recorded as a component of other current liabilities and deferred credits and other liabilities. Deferred gas costs are recorded either in other current assets or liabilities.
Regulatory assets and liabilities as of March 31, 2026 and September 30, 2025 included the following:
March 31,
2026		September 30,
2025
 (In thousands)
Regulatory assets:
Pension and postretirement benefit costs$4,508 $262 
Infrastructure mechanisms (1)
424,630 314,047 
Winter Storm Uri incremental costs1,843 5,841 
Deferred gas costs132,354 140,626 
Regulatory excess deferred taxes (2)
49,093 49,793 
Recoverable loss on reacquired debt2,819 2,903 
Deferred pipeline record collection costs34,911 39,035 
System Safety and Integrity Riders (3)
41,478 43,625 
Other16,869 12,597 
$708,505 $608,729 
Regulatory liabilities:
Regulatory excess deferred taxes (2)
$152,503 $190,274 
Regulatory cost of removal obligation647,575 641,019 
Deferred gas costs11,999 6,879 
APT annual adjustment mechanism128,148 99,393 
Pension and postretirement benefit costs292,213 291,351 
Other45,417 40,732 
$1,277,855 $1,269,648 
(1)Texas, Louisiana, and Tennessee have authorized infrastructure mechanisms that mitigate regulatory lag and allow for the deferral of eligible incurred costs related to qualifying capital expenditures until new rates are implemented. The investment and deferred costs are required to be included in the Company's next rate filing (rate case or annual rate filing) for recovery through base rates.
(2)Regulatory excess deferred taxes represent changes in our net deferred tax liability related to our cost of service ratemaking due to the enactment of the Tax Cuts and Jobs Act of 2017 (the "TCJA"), a Kansas legislative change enacted in fiscal 2020, and a Louisiana legislative change enacted in fiscal 2025. See Note 12 to the condensed consolidated financial statements for further information.
(3)In our APT and West Texas Divisions and portions of our Mid-Tex Division, the RRC has approved the deferral of certain system safety and integrity costs incurred in excess of a specified benchmark. These costs are eligible for recovery in a future filing after such costs are approved by the RRC.

4.    Segment Information
We manage and review our consolidated operations through the following reportable segments:

•The distribution segment is comprised of our regulated natural gas distribution and related sales operations in eight states.
•The pipeline and storage segment is comprised primarily of the regulated pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies found in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.
8

Income statement information and capital expenditures for the three and six months ended March 31, 2026 and 2025 by segment are presented in the following tables:
 Three Months Ended March 31, 2026
 DistributionPipeline and StorageTotal of Reportable Segments
 (In thousands)
Operating revenues from external parties$1,876,911 $85,491 $1,962,402 
Intersegment revenues769 203,798 204,567 
Total operating revenues1,877,680 289,289 2,166,969 
Operation and maintenance expense155,918 27,054 182,972 
Depreciation and amortization expense (2)
146,751 48,936 195,687 
Interest charges (2)
29,130 19,601 48,731 
Income tax expense (2)
109,714 41,976 151,690 
Other segment items (1)
998,864 7,126 1,005,990 
Net income (2)
$437,303 $144,596 $581,899 
Capital expenditures (2)
$717,079 $286,510 $1,003,589 
Reconciliation to consolidated total operating revenues:
Total operating revenues of reportable segments$2,166,969 
Elimination of intersegment revenues(204,567)
Consolidated total operating revenues$1,962,402 

 Three Months Ended March 31, 2025
 DistributionPipeline and StorageTotal of Reportable Segments
 (In thousands)
Operating revenues from external parties$1,881,742 $68,760 $1,950,502 
Intersegment revenues786 190,239 191,025 
Total operating revenues1,882,528 258,999 2,141,527 
Operation and maintenance expense168,097 52,007 220,104 
Depreciation and amortization expense (2)
134,546 48,204 182,750 
Interest charges (2)
30,087 19,927 50,014 
Income tax expense (2)
86,432 31,089 117,521 
Other segment items (1)
1,082,723 2,839 1,085,562 
Net income (2)
$380,643 $104,933 $485,576 
Capital expenditures (2)
$594,853 $244,813 $839,666 
Reconciliation to consolidated total operating revenues:
Total operating revenues of reportable segments$2,141,527 
Elimination of intersegment revenues(191,025)
Consolidated total operating revenues$1,950,502 
9

 Six Months Ended March 31, 2026
 DistributionPipeline and StorageTotal of Reportable Segments
 (In thousands)
Operating revenues from external parties$3,134,960 $170,027 $3,304,987 
Intersegment revenues1,546 405,895 407,441 
Total operating revenues3,136,506 575,922 3,712,428 
Operation and maintenance expense321,286 85,646 406,932 
Depreciation and amortization expense (2)
292,739 97,593 390,332 
Interest charges (2)
53,575 28,569 82,144 
Income tax expense (2)
170,856 81,452 252,308 
Other segment items (1)
1,591,512 4,337 1,595,849 
Net income (2)
$706,538 $278,325 $984,863 
Capital expenditures (2)
$1,521,654 $515,281 $2,036,935 
Reconciliation to consolidated total operating revenues:
Total operating revenues of reportable segments$3,712,428 
Elimination of intersegment revenues(407,441)
Consolidated total operating revenues$3,304,987 

 Six Months Ended March 31, 2025
 DistributionPipeline and StorageTotal of Reportable Segments
 (In thousands)
Operating revenues from external parties$2,990,311 $136,190 $3,126,501 
Intersegment revenues1,552 378,199 379,751 
Total operating revenues2,991,863 514,389 3,506,252 
Operation and maintenance expense313,993 104,741 418,734 
Depreciation and amortization expense (2)
268,173 95,110 363,283 
Interest charges (2)
64,336 38,603 102,939 
Income tax expense (2)
138,102 58,750 196,852 
Other segment items (1)
1,586,403 607 1,587,010 
Net income (2)
$620,856 $216,578 $837,434 
Capital expenditures (2)
$1,220,502 $510,355 $1,730,857 
Reconciliation to consolidated total operating revenues:
Total operating revenues of reportable segments$3,506,252 
Elimination of intersegment revenues(379,751)
Consolidated total operating revenues$3,126,501 
(1)Other segment items consist of purchased gas cost, bad debt expense, taxes other than income taxes, the equity component of AFUDC, community support spending, and other segment income or expense deemed insignificant which are used to reach net income, our measurement of segment profit or loss.
(2)The totals of reportable segments for these items reconcile to consolidated totals.
10

Balance sheet information at March 31, 2026 and September 30, 2025 by segment is presented in the following tables:
 March 31, 2026
 DistributionPipeline and StorageTotal of Reportable Segments
 (In thousands)
Net property, plant and equipment (1)
$20,101,608 $6,968,336 $27,069,944 
Total assets$29,384,731 $7,408,408 $36,793,139 
Reconciliation to consolidated assets:
Total assets of reportable segments$36,793,139 
Elimination of intersegment assets(6,413,043)
Consolidated total assets$30,380,096 
 September 30, 2025
 DistributionPipeline and StorageTotal of Reportable Segments
 (In thousands)
Net property, plant and equipment (1)
$18,765,128 $6,527,862 $25,292,990 
Total assets$27,296,805 $6,896,646 $34,193,451 
Reconciliation to consolidated assets:
Total assets of reportable segments$34,193,451 
Elimination of intersegment assets(5,943,929)
Consolidated total assets$28,249,522 
(1)The total of reportable segments for this item reconciles to consolidated total.

5.    Earnings Per Share
We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic weighted average shares outstanding is calculated based upon the weighted average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock awards that have not yet been issued as common stock. Additionally, the weighted average shares outstanding for diluted EPS includes the incremental effects of the forward sale agreements, discussed in Note 8 to the condensed consolidated financial statements, when the impact is dilutive.
11

Basic and diluted earnings per share for the three and six months ended March 31, 2026 and 2025 are calculated as follows:
 Three Months Ended March 31Six Months Ended March 31
 2026202520262025
 (In thousands, except per share amounts)
Basic Earnings Per Share
Net income$581,899 $485,576 $984,863 $837,434 
Less: Income allocated to participating securities
208 245 361 436 
Income available to common shareholders
$581,691 $485,331 $984,502 $836,998 
Basic weighted average shares outstanding
166,464 159,177 164,596 157,739 
Net income per share — Basic
$3.49 $3.05 $5.98 $5.31 
Diluted Earnings Per Share
Income available to common shareholders$581,691 $485,331 $984,502 $836,998 
Effect of dilutive shares
— — — — 
Income available to common shareholders
$581,691 $485,331 $984,502 $836,998 
Basic weighted average shares outstanding
166,464 159,177 164,596 157,739 
Dilutive shares1,348 1,249 1,746 1,386 
Diluted weighted average shares outstanding
167,812 160,426 166,342 159,125 
Net income per share — Diluted$3.47 $3.03 $5.92 $5.26 

6.    Revenue and Accounts Receivable
Revenue
Our revenue recognition policy is fully described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. The following tables disaggregate our revenue from contracts with customers by customer type and segment and provide a reconciliation to total operating revenues, including intersegment revenues, for the three and six months ended March 31, 2026 and 2025.
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
DistributionPipeline and StorageDistributionPipeline and Storage
(In thousands)
Gas sales revenues:
Residential$1,219,792 $— $1,308,691 $— 
Commercial469,001 — 480,108 — 
Industrial44,479 — 38,885 — 
Public authority and other15,458 — 23,921 — 
Total gas sales revenues1,748,730 — 1,851,605 — 
Transportation revenues44,363 318,780 43,352 266,514 
Miscellaneous revenues3,461 3,351 4,222 4,259 
Revenues from contracts with customers1,796,554 322,131 1,899,179 270,773 
Alternative revenue program revenues77,179 (32,842)(20,117)(11,774)
Other revenues3,947 — 3,466 — 
Total operating revenues$1,877,680 $289,289 $1,882,528 $258,999 
12

Six Months Ended March 31, 2026Six Months Ended March 31, 2025
DistributionPipeline and StorageDistributionPipeline and Storage
(In thousands)
Gas sales revenues:
Residential$2,000,204 $— $2,001,741 $— 
Commercial784,566 — 746,162 — 
Industrial77,340 — 65,206 — 
Public authority and other25,535 — 36,802 — 
Total gas sales revenues2,887,645 — 2,849,911 — 
Transportation revenues85,841 636,183 80,079 532,543 
Miscellaneous revenues6,299 5,981 7,244 6,923 
Revenues from contracts with customers2,979,785 642,164 2,937,234 539,466 
Alternative revenue program revenues149,011 (66,242)47,219 (25,077)
Other revenues7,710 — 7,410 — 
Total operating revenues$3,136,506 $575,922 $2,991,863 $514,389 
We have alternative revenue programs in each of our segments. In our distribution segment, we have weather-normalization adjustment mechanisms that serve to mitigate the effects of weather on our revenue. In our pipeline and storage segment, APT has a regulatory mechanism that requires that we share with its tariffed customers 75% of the difference between the total non-tariffed revenues earned during a test period and a revenue benchmark established by the RRC. Other revenues includes AEK revenues (see Note 9 to the condensed consolidated financial statements) and other miscellaneous revenues.
Accounts receivable and allowance for uncollectible accounts
Accounts receivable arise from natural gas sales to residential, commercial, industrial, public authority, and other customers. Our accounts receivable balance includes unbilled amounts which represent a customer’s consumption of gas from the date of the last cycle billing through the last day of the month. Our policy related to the accounting for our accounts receivable and allowance for uncollectible accounts is fully described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. During the six months ended March 31, 2026, there were no material changes to this policy. Rollforwards of our allowance for uncollectible accounts for the three and six months ended March 31, 2026 and 2025 are presented in the table below. The allowance excludes the gas cost portion of customers’ bills for approximately 89 percent of our customers as we have the ability to collect these gas costs through our gas cost recovery mechanisms in most of our jurisdictions.
 Three Months Ended March 31, 2026
 (In thousands)
Beginning balance, December 31, 2025$45,100 
Current period provisions14,060 
Write-offs charged against allowance(4,275)
Recoveries of amounts previously written off459 
Ending balance, March 31, 2026
$55,344 
 Three Months Ended March 31, 2025
 (In thousands)
Beginning balance, December 31, 2024$39,166 
Current period provisions14,391 
Write-offs charged against allowance(4,761)
Recoveries of amounts previously written off545 
Ending balance, March 31, 2025
$49,341 
13

 Six Months Ended March 31, 2026
 (In thousands)
Beginning balance, September 30, 2025
$45,259 
Current period provisions21,485 
Write-offs charged against allowance(12,866)
Recoveries of amounts previously written off1,466 
Ending balance, March 31, 2026
$55,344 
 Six Months Ended March 31, 2025
 (In thousands)
Beginning balance, September 30, 2024
$37,056 
Current period provisions23,015 
Write-offs charged against allowance(12,209)
Recoveries of amounts previously written off1,479 
Ending balance, March 31, 2025
$49,341 


14

7.    Debt
The nature and terms of our debt instruments and credit facilities are described in detail in Note 8 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. Other than as described below, there were no material changes in the terms of our debt instruments during the six months ended March 31, 2026.
Long-term debt at March 31, 2026 and September 30, 2025 consisted of the following:
March 31, 2026September 30, 2025
 (In thousands)
Unsecured 3.00% Senior Notes, due June 2027
$500,000 $500,000 
Unsecured 2.625% Senior Notes, due September 2029
500,000 500,000 
Unsecured 1.50% Senior Notes, due January 2031
600,000 600,000 
Unsecured 5.45% Senior Notes, due October 2032
300,000 300,000 
Unsecured 5.90% Senior Notes, due November 2033
725,000 725,000 
Unsecured 5.95% Senior Notes, due October 2034
200,000 200,000 
Unsecured 5.20% Senior Notes, due August 2035
500,000 500,000 
Unsecured 5.50% Senior Notes, due June 2041
400,000 400,000 
Unsecured 4.15% Senior Notes, due January 2043
500,000 500,000 
Unsecured 4.125% Senior Notes, due October 2044
750,000 750,000 
Unsecured 4.30% Senior Notes, due October 2048
600,000 600,000 
Unsecured 4.125% Senior Notes, due March 2049
450,000 450,000 
Unsecured 3.375% Senior Notes, due September 2049
500,000 500,000 
Unsecured 2.85% Senior Notes, due February 2052
600,000 600,000 
Unsecured 5.75% Senior Notes, due October 2052
500,000 500,000 
Unsecured 6.20% Senior Notes, due November 2053
500,000 500,000 
Unsecured 5.00% Senior Notes, due December 2054
650,000 650,000 
Unsecured 5.45% Senior Notes, due January 2056
600,000 — 
Medium-term note Series A, 1995-1, 6.67%, due December 2025
— 10,000 
Unsecured 6.75% Debentures, due July 2028
150,000 150,000 
Finance lease obligations101,802 47,234 
Total long-term debt9,626,802 8,982,234 
Less:
Original issue (premium) discount on unsecured senior notes and debentures2,602 (1,332)
Debt issuance cost67,576 64,622 
Current maturities of long-term debt2,395 11,775 
Total long-term debt, net$9,554,229 $8,907,169 
On October 1, 2025, we completed a public offering of $600 million of 5.45% senior notes due January 2056, with an effective interest rate of 4.85%, after giving effect to the offering costs and settlement of our interest rate swaps. The net proceeds from the offering, after the underwriting discount and offering expenses, of $590.0 million were used for general corporate purposes.
Short-term debt
We utilize short-term debt to provide cost-effective, short-term financing until it can be replaced with a balance of long-term debt and equity financing that achieves the Company’s desired capital structure. Our short-term borrowing requirements are driven primarily by construction work in progress and the seasonal nature of the natural gas business.
Our short-term borrowing requirements are satisfied through a combination of a $1.5 billion commercial paper program and four committed revolving credit facilities with third-party lenders that provide $3.1 billion of total working capital funding.
The primary source of our funding is our commercial paper program, which is supported by a five-year unsecured $1.5 billion credit facility. On March 27, 2026, we elected to extend the maturity date from March 28, 2030 to March 28, 2031. This facility bears interest at a base rate or at a Term SOFR-based rate for the applicable interest period, plus a margin ranging from zero percent to 0.25 percent for base rate advances or a margin ranging from 0.75 percent to 1.25 percent for Term SOFR-based advances, based on the Company’s credit ratings. Additionally, the facility contains a $250 million accordion feature,
15

which provides the opportunity to increase the total committed loan to $1.75 billion. At March 31, 2026 and September 30, 2025, there were no amounts outstanding under our commercial paper program.
We also have a $1.5 billion three-year senior unsecured credit facility that is used to provide additional working capital funding. On March 27, 2026, we elected to extend the maturity date from March 28, 2028 to March 28, 2029. This facility bears interest at a base rate or at a Term SOFR-based rate for the applicable interest period, plus a margin ranging from zero percent to 0.25 percent for base rate advances or a margin ranging from 0.75 percent to 1.25 percent for Term SOFR-based advances, based on the Company's credit ratings. Additionally, the facility contains a $250 million accordion feature, which provides the opportunity to increase the total committed loan to $1.75 billion. At March 31, 2026 and September 30, 2025, there were no borrowings outstanding under this facility.
Additionally, we have a $50 million 364-day unsecured facility, which was renewed April 1, 2026 and is used to provide working capital funding. There were no borrowings outstanding under this facility as of March 31, 2026 and September 30, 2025.
Finally, we have a $50 million 364-day unsecured revolving credit facility, which was renewed March 31, 2026 and is used to issue letters of credit and to provide working capital funding. At March 31, 2026, there were no borrowings outstanding under this facility; however, outstanding letters of credit reduced the total amount available to us to $44.4 million.
Debt covenants
The availability of funds under these credit facilities is subject to conditions specified in the respective credit agreements, all of which we currently satisfy. These conditions include our compliance with financial covenants and the continued accuracy of representations and warranties contained in these agreements. We are required by the financial covenants in each of these facilities to maintain, at the end of each fiscal quarter, a ratio of total-debt-to-total-capitalization of no greater than 70 percent. At March 31, 2026, our total-debt-to-total-capitalization ratio, as defined in the agreements, was 40 percent. In addition, both the interest margin and the fee that we pay on unused amounts under certain of these facilities are subject to adjustment depending upon our credit ratings.
These credit facilities and our public indentures contain usual and customary covenants for our business, including covenants substantially limiting liens, substantial asset sales, and mergers. Additionally, our public debt indentures relating to our senior notes and debentures, as well as certain of our revolving credit agreements, each contain a default provision that is triggered if outstanding indebtedness arising out of any other credit agreements in amounts ranging from in excess of $15 million to in excess of $100 million becomes due by acceleration or if not paid at maturity. We were in compliance with all of our debt covenants as of March 31, 2026. If we were unable to comply with our debt covenants, we would likely be required to repay our outstanding balances on demand, provide additional collateral or take other corrective actions.

16

8.    Shareholders' Equity
The following tables present a reconciliation of changes in stockholders' equity for the three and six months ended March 31, 2026 and 2025.
 Common stockAdditional
Paid-in
Capital		Accumulated
Other
Comprehensive Income
(Loss)		Retained
Earnings		Total
Number of
Shares		Stated
Value
 (In thousands, except share and per share data)
Balance, September 30, 2025
161,568,384 $808 $8,221,455 $475,015 $4,861,612 $13,558,890 
Net income— — — — 402,964 402,964 
Other comprehensive loss— — — (4,805)— (4,805)
Cash dividends ($1.00 per share)
— — — — (160,407)(160,407)
Common stock issued:
Public and other stock offerings3,709,647 18 474,625 — — 474,643 
Stock-based compensation plans156,446 1 11,606 — — 11,607 
Balance, December 31, 2025165,434,477 827 8,707,686 470,210 5,104,169 14,282,892 
Net income— — — — 581,899 581,899 
Other comprehensive loss— — — (4,938)— (4,938)
Cash dividends ($1.00 per share)
— — — — (168,760)(168,760)
Common stock issued:
Public and other stock offerings1,445,607 7 205,376 — — 205,383 
Stock-based compensation plans38,226 1 12,173 — — 12,174 
Balance, March 31, 2026166,918,310 $835 $8,925,235 $465,272 $5,517,308 $14,908,650 
 Common stockAdditional
Paid-in
Capital		Accumulated
Other
Comprehensive Income
(Loss)		Retained
Earnings		Total
Number of
Shares		Stated
Value
 (In thousands, except share and per share data)
Balance, September 30, 2024
155,258,845 $776 $7,474,559 $465,715 $4,216,619 $12,157,669 
Net income— — — — 351,858 351,858 
Other comprehensive income— — — 16,423 — 16,423 
Cash dividends ($0.87 per share)
— — — — (135,453)(135,453)
Common stock issued:
Public and other stock offerings3,329,358 17 383,520 — — 383,537 
Stock-based compensation plans137,862 1 6,446 — — 6,447 
Balance, December 31, 2024158,726,065 794 7,864,525 482,138 4,433,024 12,780,481 
Net income— — — — 485,576 485,576 
Other comprehensive loss— — — (5,587)— (5,587)
Cash dividends ($0.87 per share)
— — — — (138,416)(138,416)
Common stock issued:
Public and other stock offerings26,367 — 3,841 — — 3,841 
Stock-based compensation plans82,691 — 12,070 — — 12,070 
Balance, March 31, 2025158,835,123 $794 $7,880,436 $476,551 $4,780,184 $13,137,965 
Shelf Registration, At-the-Market Equity Sales Program and Equity Issuances
We have a shelf registration statement on file with the Securities and Exchange Commission (SEC) that allows us to issue up to $8.0 billion in common stock and/or debt securities, which expires December 3, 2027. At March 31, 2026, $5.2 billion of securities were available for issuance under this shelf registration statement.
17

We also have an at-the-market (ATM) equity sales program under which we may issue and sell shares of our common stock up to an aggregate offering price of $1.7 billion through December 3, 2027 (including shares of common stock that may be sold pursuant to forward sale agreements entered into concurrently with the ATM equity sales program).
During the six months ended March 31, 2026, we settled forward sale agreements with respect to 5,106,782 shares that had been borrowed and sold by various forward sellers under the ATM program for net proceeds of $671.6 million. As of March 31, 2026, $827.1 million of equity was available for issuance under our existing ATM program. Additionally, we had $890.1 million in available proceeds from outstanding forward sale agreements, as detailed below.
MaturityShares AvailableNet Proceeds Available
(In thousands)		Forward Price
June 30, 2026963,081 $127,346 $132.23 
December 31, 20263,392,352 475,986 $140.31 
March 31, 20271,873,444 286,793 $153.08 
Total6,228,877 $890,125 $142.90 
Accumulated Other Comprehensive Income (Loss)
We record deferred gains (losses) in AOCI related to available-for-sale debt securities and interest rate agreement cash flow hedges. Deferred gains (losses) for our available-for-sale debt securities are recognized in earnings upon settlement, while deferred gains (losses) related to our interest rate agreement cash flow hedges are recognized in earnings on a straight-line basis over the life of the related financing. The following tables provide the components of our accumulated other comprehensive income (loss) balances, net of the related tax effects allocated to each component of other comprehensive income (loss).
Available-
for-Sale
Securities		Interest Rate
Agreement
Cash Flow
Hedges		Total
 (In thousands)
September 30, 2025$209 $474,806 $475,015 
Other comprehensive income (loss) before reclassifications(157)— (157)
Amounts reclassified from accumulated other comprehensive income— (9,586)(9,586)
Net current-period other comprehensive income (loss)(157)(9,586)(9,743)
March 31, 2026$52 $465,220 $465,272 
 
Available-
for-Sale
Securities		Interest Rate
Agreement
Cash Flow
Hedges		Total
 (In thousands)
September 30, 2024$213 $465,502 $465,715 
Other comprehensive income (loss) before reclassifications(65)18,041 17,976 
Amounts reclassified from accumulated other comprehensive income— (7,140)(7,140)
Net current-period other comprehensive income (loss)(65)10,901 10,836 
March 31, 2025$148 $476,403 $476,551 

9.    Securitization
Kansas
Atmos Energy Kansas Securitization I, LLC (AEK), a special-purpose entity wholly owned by Atmos Energy, was formed for the purpose of issuing securitized bonds to recover extraordinary costs incurred during Winter Storm Uri in February 2021. In June 2023, AEK completed a public offering of $95 million of Securitized Utility Tariff Bonds. AEK's assets cannot be used to settle Atmos Energy's obligations, and the holders of the Securitized Utility Tariff Bonds have no recourse against Atmos Energy.
As described in Note 10 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, AEK is considered to be a variable interest entity. As a result, AEK is included in the condensed consolidated financial statements of Atmos Energy.
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The following table summarizes the impact of AEK on our condensed consolidated balance sheets, for the periods indicated:
March 31, 2026September 30, 2025
 (In thousands)
Restricted cash and cash equivalents$1,414 $1,116 
Other current assets$2 $1 
Securitized intangible asset, net$70,433 $75,127 
Accrued interest$315 $331 
Current maturities of securitized long-term debt$8,858 $8,767 
Securitized long-term debt$63,751 $68,236 
The following table summarizes the impact of AEK on our condensed consolidated statements of comprehensive income, for the periods indicated:
Three Months Ended March 31Six Months Ended March 31
2026202520262025
 (In thousands)
Operating revenues$3,503 $2,951 $6,805 $6,344 
Operation and maintenance expense(187)(216)(187)(277)
Amortization expense(2,365)(1,689)(4,694)(3,953)
Interest expense, net(951)(1,046)(1,924)(2,114)
Income before income taxes$— $— $— $— 
The securitized long-term debt is recorded at carrying value. The fair value of the securitized long-term debt is determined using third party market value quotations, which are considered Level 2 fair value measurements for debt instruments where fair value is determined using the most recent available quoted market price. The carrying value and fair value of the securitized long-term debt as of March 31, 2026 was $72.6 million and $73.3 million, and as of September 30, 2025 was $77.0 million and $78.8 million.
Texas
In March 2023, the Texas Natural Gas Securitization Finance Corporation (the Finance Corporation), with the authority of the Texas Public Finance Authority (TPFA), issued $3.5 billion in customer rate relief bonds with varying scheduled final maturities from 12 to 18 years. The bonds are obligations of the Finance Corporation, payable from the customer rate relief charges and other bond collateral, and are not an obligation of Atmos Energy. We began collecting the customer rate relief charges on October 1, 2023, and any such property collected is solely owned by the Finance Corporation and not available to pay creditors of Atmos Energy.

10.     Interim Pension and Other Postretirement Benefit Plan Information
The components of our net periodic pension cost for our pension and other postretirement benefit plans for the three and six months ended March 31, 2026 and 2025 are presented in the following tables. Most of these costs are recoverable through our tariff rates. A portion of these costs is capitalized into our rate base or deferred as a regulatory asset or liability. The remaining costs are recorded as a component of operation and maintenance expense or other non-operating income.
19

 Three Months Ended March 31
 Pension BenefitsOther Benefits
 2026202520262025
 (In thousands)
Components of net periodic pension cost:
Service cost$2,580 $2,837 $2,017 $2,033 
Interest cost (1)
6,925 6,663 3,635 3,365 
Expected return on assets (1)
(7,949)(7,655)(4,070)(3,831)
Amortization of prior service cost (credit) (1)
— — (2,879)(3,260)
Amortization of actuarial (gain) loss (1)
(51)256 (2,415)(2,429)
Net periodic pension cost$1,505 $2,101 $(3,712)$(4,122)
 Six Months Ended March 31
 Pension BenefitsOther Benefits
2026202520262025
 (In thousands)
Components of net periodic pension cost:
Service cost$5,160 $5,674 $4,034 $4,066 
Interest cost (1)
13,850 13,326 7,270 6,731 
Expected return on assets (1)
(15,898)(15,309)(8,140)(7,663)
Amortization of prior service cost (credit) (1)
— — (5,759)(6,520)
Amortization of actuarial (gain) loss (1)
(102)511 (4,830)(4,858)
Net periodic pension cost$3,010 $4,202 $(7,425)$(8,244)
(1)    The components of net periodic cost other than the service cost component are included in the line item other non-operating income in the condensed consolidated statements of comprehensive income or are capitalized on the condensed consolidated balance sheets as a regulatory asset or liability, as described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

11.    Commitments and Contingencies
Litigation and Environmental Matters
In the normal course of business, we are subject to various legal and regulatory proceedings. For such matters, we record liabilities when they are considered probable and estimable, based on currently available facts, our historical experience and our estimates of the ultimate outcome or resolution of the liability in the future. While the outcome of these proceedings is uncertain and a loss in excess of the amount we have accrued is possible though not reasonably estimable, it is the opinion of management that any amounts exceeding the accruals will not have a material adverse impact on our financial position, results of operations or cash flows.
The National Transportation Safety Board (NTSB) issued a Preliminary Report on February 14, 2024 relating to its investigation of two incidents that occurred in Jackson, Mississippi on January 24 and 27, 2024 that resulted in one fatality. On March 26, 2026, the NTSB issued its final report that included an Executive Summary, Findings, Probable Cause, and Recommendations. Also on March 26, 2026, a safety recommendation letter was distributed to Atmos Energy.
The NTSB issued a Preliminary Report on December 30, 2024 relating to its investigation of an incident that occurred in Avondale, Louisiana on December 2, 2024 that resulted in one fatality. Atmos Energy is working closely with the NTSB and other state and federal regulators to help determine causal factors.
We are a party to various other litigation and environmental-related matters or claims that have arisen in the ordinary course of our business. While the results of such litigation and response actions to such environmental-related matters or claims cannot be predicted with certainty, we continue to believe the final outcome of such litigation and matters or claims will not have a material adverse effect on our financial condition, results of operations, or cash flows.
Purchase Commitments
Our distribution divisions maintain supply contracts with several vendors that generally cover a period of up to one year. Commitments for estimated base gas volumes are established under these contracts on a monthly basis at contractually negotiated prices. Commitments for incremental daily purchases are made as necessary during the month in accordance with the terms of the individual contract.
20

Our Mid-Tex Division also maintains a limited number of long-term supply contracts to ensure a reliable source of gas for our customers in its service area, which obligate it to purchase specified volumes at prices under contracts indexed to natural gas hubs or fixed price contracts. These purchase commitment contracts are detailed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. At March 31, 2026, we were committed to purchase 80.8 Bcf within one year and 67.4 Bcf within two to three years under indexed contracts. At March 31, 2026, we had no commitments under fixed price contracts.
Rate Regulatory Proceedings
As of March 31, 2026, routine rate regulatory proceedings were in progress in several of our service areas, which are discussed in further detail below in Management’s Discussion and Analysis — Recent Ratemaking Developments. Except for these proceedings, there were no material changes to rate regulatory proceedings for the six months ended March 31, 2026.

12.    Income Taxes
Income Tax Expense
Our interim effective tax rates reflect the estimated annual effective tax rates for the fiscal years ended September 30, 2026 and 2025, adjusted for tax expense associated with certain discrete items. The effective tax rates for the three months ended March 31, 2026 and 2025 were 20.7% and 19.5% and for the six months ended March 31, 2026 and 2025 were 20.4% and 19.0%. These effective tax rates differ from the federal statutory tax rate of 21% primarily due to the amortization of excess deferred federal income tax liabilities, tax credits, state income taxes, and other permanent book-to-tax differences. These adjustments have a relative impact on the effective tax rate proportionally to pretax income or loss.
Regulatory Excess Deferred Taxes
Regulatory excess net deferred taxes represent changes in our net deferred tax liability related to our cost of service ratemaking due to the enactment of the Tax Cuts and Jobs Act of 2017 (the TCJA), a Kansas legislative change enacted in fiscal 2020, and a Louisiana legislative change enacted in fiscal 2025. Currently, the regulatory excess net deferred tax liability of $103.4 million is being returned over various periods. Of this amount, $55.6 million is being returned to customers over 36 - 60 months. An additional $46.8 million is being returned to customers on a provisional basis over 15 - 46 years until our regulators establish the final refund periods. The refund of the remaining $1.0 million will be addressed in future rate proceedings.
As of March 31, 2026 and September 30, 2025, $49.3 million and $72.8 million is recorded in other current liabilities.

13.    Financial Instruments
We currently use financial instruments to mitigate commodity price risk and interest rate risk. The objectives and strategies for using financial instruments and the related accounting for these financial instruments are fully described in Notes 2 and 16 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. During the six months ended March 31, 2026, there were no material changes in our objectives, strategies, and accounting for using financial instruments. Our financial instruments do not contain any credit-risk-related or other contingent features that could cause payments to be accelerated when our financial instruments are in net liability positions. The following summarizes those objectives and strategies.
Commodity Risk Management Activities
Our purchased gas cost adjustment mechanisms essentially insulate our distribution segment from commodity price risk; however, our customers are exposed to the effects of volatile natural gas prices. We manage this exposure through a combination of physical storage, fixed-price forward contracts, and financial instruments, primarily over-the-counter swap and option contracts, in an effort to minimize the impact of natural gas price volatility on our customers during the winter heating season.
We typically seek to hedge between 25 and 50 percent of anticipated heating season gas purchases using financial instruments. For the 2025-2026 heating season (generally October through March), in the jurisdictions where we are permitted to utilize financial instruments, we hedged approximately 23.8 Bcf of the winter flowing gas requirements. We have not designated these financial instruments as hedges for accounting purposes.
Interest Rate Risk Management Activities
We manage interest rate risk by periodically entering into financial instruments to effectively fix the Treasury yield component of the interest cost associated with anticipated financings.
21

Quantitative Disclosures Related to Financial Instruments
The following tables present detailed information concerning the impact of financial instruments on our condensed consolidated balance sheet and statements of comprehensive income.
As of March 31, 2026, our financial instruments were comprised of both long and short commodity positions. A long position is a contract to purchase the commodity, while a short position is a contract to sell the commodity. As of March 31, 2026, we had 9,468 MMcf of net long commodity contracts outstanding. These contracts have not been designated as hedges.
Financial Instruments on the Balance Sheet
The following tables present the fair value and balance sheet classification of our financial instruments as of March 31, 2026 and September 30, 2025. The gross amounts of recognized assets and liabilities are netted within our condensed consolidated balance sheets to the extent that we have netting arrangements with our counterparties. However, as of March 31, 2026 and September 30, 2025, no gross amounts and no cash collateral were netted within our consolidated balance sheet.
March 31, 2026
Balance Sheet LocationAssetsLiabilities
   (In thousands)
Not Designated As Hedges:
Commodity contractsOther current assets /
Other current liabilities		$3,413 $(805)
Gross / Net Financial Instruments$3,413 $(805)
 
September 30, 2025
Balance Sheet LocationAssetsLiabilities
   (In thousands)
Not Designated As Hedges:
Commodity contractsOther current assets /
Other current liabilities		$5,303 $(6,339)
Commodity contractsDeferred charges and other assets /
Deferred credits and other liabilities		4,594 (146)
Total9,897 (6,485)
Gross / Net Financial Instruments$9,897 $(6,485)
Impact of Financial Instruments on the Statement of Comprehensive Income
Cash Flow Hedges
As discussed above, our distribution segment has interest rate agreements, which we designated as cash flow hedges at the time the agreements were executed. The net (gain) loss on settled interest rate agreements reclassified from AOCI into interest charges on our condensed consolidated statements of comprehensive income for the three months ended March 31, 2026 and 2025 was $(6.1) million and $(5.1) million and for the six months ended March 31, 2026 and 2025 was $(12.3) million and $(10.2) million.
The following table summarizes the gains and losses arising from hedging transactions that were recognized as a component of other comprehensive income (loss), net of taxes, for the three and six months ended March 31, 2026 and 2025.
22

 Three Months Ended March 31Six Months Ended March 31
 2026202520262025
 (In thousands)
Increase (decrease) in fair value:
Interest rate agreements$— $(1,678)$— $18,041 
Recognition of gains in earnings due to settlements:
Interest rate agreements(4,780)(3,982)(9,586)(7,140)
Total other comprehensive income (loss) from hedging, net of tax$(4,780)$(5,660)$(9,586)$10,901 
Deferred gains (losses) recorded in AOCI associated with our interest rate agreements are recognized in earnings as they are amortized over the terms of the underlying debt instruments. As of March 31, 2026, we had $465.2 million of net realized gains in AOCI associated with our interest rate agreements. The following amounts, net of deferred taxes, represent the expected recognition in earnings of the deferred net gains recorded in AOCI associated with our interest rate agreements, based upon the fair values of these agreements at the date of settlement. The remaining amortization periods for these settled amounts extend through fiscal 2056. However, the table below does not include the expected recognition in earnings of our outstanding interest rate swaps as those instruments have not yet settled.
Interest Rate
Agreements
 (In thousands)
Next twelve months$19,118 
Thereafter446,102 
Total$465,220 

Financial Instruments Not Designated as Hedges
As discussed above, commodity contracts which are used in our distribution segment are not designated as hedges. However, there is no earnings impact on our distribution segment as a result of the use of these financial instruments because the gains and losses arising from the use of these financial instruments are recognized in the consolidated statement of comprehensive income as a component of purchased gas cost when the related costs are recovered through our rates and recognized in revenue. Accordingly, the impact of these financial instruments is excluded from this presentation.

14.    Fair Value Measurements
We report certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We record cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable, and short-term debt at carrying value, which substantially approximates fair value due to the short-term nature of these assets and liabilities. For other financial assets and liabilities, we primarily use quoted market prices and other observable market pricing information to minimize the use of unobservable pricing inputs in our measurements when determining fair value. The methods used to determine fair value for our assets and liabilities are fully described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. During the six months ended March 31, 2026, there were no changes in these methods.
Fair value measurements also apply to the valuation of our pension and postretirement plan assets. Current accounting guidance requires employers to annually disclose information about fair value measurements of the assets of a defined benefit pension or other postretirement plan. The fair value of these assets is presented in Note 11 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.
23

Quantitative Disclosures
Financial Instruments
The classification of our fair value measurements requires judgment regarding the degree to which market data is observable or corroborated by observable market data. Authoritative accounting literature establishes a fair value hierarchy that prioritizes the inputs used to measure fair value based on observable and unobservable data. The hierarchy categorizes the inputs into three levels, with the highest priority given to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), with the lowest priority given to unobservable inputs (Level 3). The following tables summarize, by level within the fair value hierarchy, our assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2026 and September 30, 2025. Assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement.
Quoted
Prices in
Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)(1)
Significant
Other
Unobservable
Inputs
(Level 3)		Netting and
Cash
Collateral		March 31, 2026
 (In thousands)
Assets:
Financial instruments$— $3,413 $— $— $3,413 
Debt and equity securities
Registered investment companies26,761 — — — 26,761 
Bond mutual funds42,739 — — — 42,739 
Bonds (2)
— 48,464 — — 48,464 
Money market funds— 1,602 — — 1,602 
Total debt and equity securities69,500 50,066 — — 119,566 
Total assets$69,500 $53,479 $— $— $122,979 
Liabilities:
Financial instruments$— $805 $— $— $805 

Quoted
Prices in
Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)(1)
Significant
Other
Unobservable
Inputs
(Level 3)		Netting and
Cash
Collateral		September 30, 2025
 (In thousands)
Assets:
Financial instruments$— $9,897 $— $— $9,897 
Debt and equity securities
Registered investment companies26,463 — — — 26,463 
Bond mutual funds42,106 — — — 42,106 
Bonds (2)
— 42,754 — — 42,754 
Money market funds— 3,615 — — 3,615 
Total debt and equity securities68,569 46,369 — — 114,938 
Total assets$68,569 $56,266 $— $— $124,835 
Liabilities:
Financial instruments$— $6,485 $— $— $6,485 
 
(1)Our Level 2 measurements consist of over-the-counter options and swaps, which are valued using a market-based approach in which observable market prices are adjusted for criteria specific to each instrument, such as the strike price, notional amount or basis differences, municipal and corporate bonds, which are valued based on the most recent available quoted market prices and money market funds that are valued at cost.
(2)Our investments in bonds are considered available-for-sale debt securities in accordance with current accounting guidance.
Debt and equity securities are comprised of our available-for-sale debt securities and our equity securities. As described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, we evaluate the performance of our available-for-sale debt securities on an investment by investment basis for impairment, taking into consideration the investment’s purpose, volatility, current returns, and any intent to sell the security. As
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of March 31, 2026, no allowance for credit losses was recorded for our available-for-sale debt securities. At March 31, 2026 and September 30, 2025, the amortized cost of our available-for-sale debt securities was $48.4 million and $42.5 million. At March 31, 2026, we maintained investments in bonds that have contractual maturity dates ranging from April 2026 through March 2029.
Other Fair Value Measures
Our long-term debt is recorded at carrying value. The fair value of our long-term debt, excluding finance leases, is determined using third party market value quotations, which are considered Level 1 fair value measurements for debt instruments with a recent, observable trade or Level 2 fair value measurements for debt instruments where fair value is determined using the most recent available quoted market price. The carrying value of our finance leases materially approximates fair value. The following table presents the carrying value and fair value of our long-term debt, excluding finance leases, debt issuance costs and original issue premium or discount, as of March 31, 2026 and September 30, 2025:
 March 31, 2026September 30, 2025
 (In thousands)
Carrying Amount$9,525,000 $8,935,000 
Fair Value$8,642,130 $8,272,978 

15.    Concentration of Credit Risk
Information regarding our concentration of credit risk is disclosed in Note 18 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. During the six months ended March 31, 2026, there were no material changes in our concentration of credit risk.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors of Atmos Energy Corporation

Results of Review of Interim Financial Statements
We have reviewed the accompanying condensed consolidated balance sheet of Atmos Energy Corporation (the Company) as of March 31, 2026, the related condensed consolidated statements of comprehensive income for the three- and six-month periods ended March 31, 2026 and 2025, the condensed consolidated statements of cash flows for the six-month periods ended March 31, 2026 and 2025, and the related notes (collectively referred to as the "condensed consolidated interim financial statements"). Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of September 30, 2025, the related consolidated statements of comprehensive income, shareholders’ equity and cash flows for the year then ended, and the related notes (not presented herein); and in our report dated November 14, 2025, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of September 30, 2025, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.
Basis for Review Results
These financial statements are the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
/s/   Ernst & Young LLP
Dallas, Texas
May 6, 2026
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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

INTRODUCTION
The following discussion should be read in conjunction with the condensed consolidated financial statements in this Quarterly Report on Form 10-Q and Management’s Discussion and Analysis in our Annual Report on Form 10-K for the year ended September 30, 2025.
Cautionary Statement for the Purposes of the Safe Harbor under the Private Securities Litigation Reform Act of 1995
The statements contained in this Quarterly Report on Form 10-Q may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this Report are forward-looking statements made in good faith by us and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this Report, or any other of our documents or oral presentations, the words “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “goal”, “intend”, “objective”, “plan”, “projection”, “seek”, “strategy”, or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements relating to our strategy, operations, markets, services, rates, recovery of costs, availability of gas supply, and other factors. These risks and uncertainties include the following: federal, state, and local regulatory and political trends and decisions, including the impact of rate proceedings before various state regulatory commissions; increased federal regulatory oversight and potential penalties; possible increased federal, state, and local regulation of the safety of our operations; possible significant costs and liabilities resulting from pipeline integrity and other similar programs and related repairs; the inherent hazards and risks involved in distributing, transporting, and storing natural gas; the availability and accessibility of contracted gas supplies, interstate pipeline, and/or storage services; increased competition from energy suppliers and alternative forms of energy; failure to attract and retain a qualified workforce; natural disasters, adverse weather, terrorist activities, or other events and other risks and uncertainties discussed herein, all of which are difficult to predict and many of which are beyond our control; failure of technology that affects the Company's business operations; the threat of cyber-attacks or acts of cyber-terrorism that could disrupt our business operations and information technology systems or result in the loss or exposure of confidential or sensitive customer, employee, or Company information; the impact of new cybersecurity compliance requirements; adverse weather conditions; the impact of legislation to reduce or eliminate greenhouse gas emissions or fossil fuels; the impact of climate change; the capital-intensive nature of our business; our ability to continue to access the credit and capital markets to execute our business strategy; market risks beyond our control affecting our risk management activities, including commodity price volatility, counterparty performance or creditworthiness, and interest rate risk; the concentration of our operations in Texas; the impact of adverse economic conditions on our customers; changes in the availability and price of natural gas; and increased costs of providing health care benefits, along with pension and postretirement health care benefits and increased funding requirements. Accordingly, while we believe these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. Further, we undertake no obligation to update or revise any of our forward-looking statements whether as a result of new information, future events or otherwise.
OVERVIEW
Atmos Energy and our subsidiaries are engaged in the regulated natural gas distribution and pipeline and storage businesses. We distribute natural gas through sales and transportation arrangements to approximately 3.4 million residential, commercial, public authority, and industrial customers throughout our six distribution divisions, which at March 31, 2026 covered service areas located in eight states. In addition, we transport natural gas for others through our distribution and pipeline systems.

We manage and review our consolidated operations through the following reportable segments:

•The distribution segment is comprised of our regulated natural gas distribution and related sales operations in eight states.
•The pipeline and storage segment is comprised primarily of the regulated pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana.

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Our vision is to be the safest provider of natural gas services. Our commitment to this vision requires significant levels of capital spending to modernize our natural gas distribution system and operating costs to deliver natural gas safely and reliably and in full compliance with the various safety regulations impacting our business. We have the ability to begin recovering a significant portion of our expenditures timely through rate designs and mechanisms that reduce or eliminate regulatory lag and separate the recovery of our approved rate from customer usage patterns. The execution of our capital spending program, the ability to recover these expenditures timely, and our ability to access the capital markets to satisfy our financing needs are the primary drivers that affect our financial performance.
We anticipate making significant capital expenditures for the foreseeable future to modernize our distribution and transmission system, to comply with the safety rules and regulations issued by the regulatory authorities responsible for the service areas in which we operate, and to prepare to serve the growing needs of the communities we serve. Between fiscal years 2026 and 2030, we anticipate spending approximately $26 billion, with more than 80 percent dedicated to safety and reliability spending. The magnitude and allocation of these expenditures may be affected by factors such as new policy and regulations, population growth, and increased labor and materials costs. Although we believe these costs are ultimately recoverable through our rates based on the regulatory frameworks currently available to us, full recovery is not assured.
CRITICAL ACCOUNTING ESTIMATES AND POLICIES
Our condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States. Preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosures of contingent assets and liabilities. We based our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from such estimates.
Our critical accounting policies used in the preparation of our consolidated financial statements are described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and include the following:
•Regulation
•Pension and other postretirement plans
Our critical accounting policies are reviewed periodically by the Audit Committee of our Board of Directors. There were no significant changes to these critical accounting policies during the six months ended March 31, 2026.
RESULTS OF OPERATIONS
Executive Summary
During the six months ended March 31, 2026, we recorded net income of $984.9 million, or $5.92 per diluted share, compared to net income of $837.4 million, or $5.26 per diluted share for the six months ended March 31, 2025.
The 18 percent year-over-year increase in net income largely reflects positive rate outcomes driven by safety and reliability spending. Additionally, our results for the six months ended March 31, 2026 were favorably impacted by $93.6 million as a result of Texas legislation that became effective during the third quarter of fiscal 2025 related to infrastructure spending. These increases were partially offset by increased depreciation and property tax expenses and higher spending on safety and compliance related activities.
During the six months ended March 31, 2026, we implemented, or received approval to implement, ratemaking regulatory actions which resulted in an increase in annual operating income of $135.3 million. Additionally, as of March 31, 2026, we had ratemaking efforts in progress seeking a total increase in annual operating income of $599.2 million.
Capital expenditures for the six months ended March 31, 2026 were $2,036.9 million. Over 85 percent was invested to improve the safety and reliability of our distribution and transportation systems, with a significant portion of this investment incurred under regulatory mechanisms that reduce lag to six months or less.
During the six months ended March 31, 2026, we completed approximately $1.3 billion of long-term debt and equity financing. As of March 31, 2026, our equity capitalization was 60.9 percent. As of March 31, 2026, we had approximately $4.1 billion in total liquidity, consisting of $125.7 million in cash and cash equivalents, $890.1 million in funds available through equity forward sales agreements and $3,094.4 million in undrawn capacity under our credit facilities.
The following discusses the results of operations for each of our operating segments.
Distribution Segment
The distribution segment is comprised of our regulated natural gas distribution and related sales operations in eight states. The primary factors that impact the results of this segment are our ability to earn our authorized rates of return, competitive factors in the energy industry, and economic conditions in our service areas.
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Our ability to earn our authorized rates of return is based primarily on our ability to improve the rate design in our various ratemaking jurisdictions to minimize regulatory lag and, ultimately, separate the recovery of our approved rates from customer usage patterns. Improving rate design is a long-term process and is further complicated by the fact that we operate in multiple rate jurisdictions. Under our current rate design, approximately 70 percent of our distribution segment revenues are earned through the first six months of the fiscal year. Additionally, we currently recover approximately 50 percent of our distribution segment revenue, excluding gas costs, through the base customer charge, which partially separates the recovery of our approved rate from customer usage patterns.
Seasonal weather patterns can also affect our distribution operations. However, the effect of weather that is above or below normal is substantially offset through weather normalization adjustments, known as WNA, which have been approved by state regulatory commissions for approximately 97 percent of our residential and commercial revenues in the following states for the following time periods:
Kansas, West TexasOctober — May
TennesseeOctober — April
Kentucky, Mississippi, Mid-TexNovember — April
LouisianaDecember — March
VirginiaJanuary — December
Our distribution operations are also affected by the cost of natural gas. We are generally able to pass the cost of gas through to our customers without markup under purchased gas cost adjustment mechanisms; therefore, increases in the cost of gas are offset by a corresponding increase in revenues. Revenues in our Texas and Mississippi service areas include franchise fees and gross receipts taxes, which are calculated as a percentage of revenue (inclusive of gas costs). Therefore, the amount of these taxes included in revenues is influenced by the cost of gas and the level of gas sales volumes. We record the associated tax expense as a component of taxes, other than income.
The cost of gas typically does not have a direct impact on our operating income because these costs are recovered through our purchased gas cost adjustment mechanisms. However, higher gas costs may adversely impact our accounts receivable collections, resulting in higher bad debt expense. This risk is currently mitigated by rate design that allows us to collect from our customers the gas cost portion of our bad debt expense on approximately 89 percent of our residential and commercial revenues. Additionally, higher gas costs may require us to increase borrowings under our credit facilities, resulting in higher interest expense. Finally, higher gas costs, as well as competitive factors in the industry and general economic conditions may cause customers to conserve or, in the case of industrial consumers, to use alternative energy sources.
Three Months Ended March 31, 2026 compared with Three Months Ended March 31, 2025
Financial and operational highlights for our distribution segment for the three months ended March 31, 2026 and 2025 are presented below.
 Three Months Ended March 31
 20262025Change
 (In thousands, unless otherwise noted)
Operating revenues$1,877,680 $1,882,528 $(4,848)
Purchased gas cost870,912 969,037 (98,125)
Operating expenses440,860 429,773 11,087 
Operating income565,908 483,718 82,190 
Other non-operating income10,239 13,444 (3,205)
Interest charges29,130 30,087 (957)
Income before income taxes547,017 467,075 79,942 
Income tax expense109,714 86,432 23,282 
Net income$437,303 $380,643 $56,660 
Consolidated distribution sales volumes — MMcf
117,486 143,153 (25,667)
Consolidated distribution transportation volumes — MMcf
41,917 46,298 (4,381)
Total consolidated distribution throughput — MMcf
159,403 189,451 (30,048)
Consolidated distribution average cost of gas per Mcf sold$7.41 $6.77 $0.64 
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Operating income for our distribution segment increased 17.0 percent. Key drivers for the change in operating income include:
•an $83.0 million increase in rate adjustments, primarily in our Mid-Tex Division.
•a $4.0 million increase related to residential customer growth, primarily in our Mid-Tex Division, and increased industrial load.
•a $4.3 million decrease in refunds of excess deferred taxes to customers.
Partially offset by:
•a $24.4 million increase in depreciation expense and property taxes associated with increased capital investments.
Additionally, our distribution segment's income before income taxes for the three months ended March 31, 2026 was favorably impacted by $24.1 million as a result of Texas legislation that became effective during the third quarter of fiscal 2025 related to infrastructure spending. This amount is reflected in the respective line items in which the costs are incurred, including operating expenses of $23.9 million and interest charges.
The following table shows our operating income by distribution division, in order of total rate base, for the three months ended March 31, 2026 and 2025. The presentation of our distribution operating income is included for financial reporting purposes and may not be appropriate for ratemaking purposes.
 Three Months Ended March 31
 20262025Change
 (In thousands)
Mid-Tex$350,565 $273,478 $77,087 
Kentucky/Mid-States51,556 48,833 2,723 
Louisiana46,060 43,082 2,978 
West Texas56,926 41,551 15,375 
Mississippi42,218 51,066 (8,848)
Colorado-Kansas21,684 24,280 (2,596)
Other(3,101)1,428 (4,529)
Total$565,908 $483,718 $82,190 
Six Months Ended March 31, 2026 compared with Six Months Ended March 31, 2025
Financial and operational highlights for our distribution segment for the six months ended March 31, 2026 and 2025 are presented below.
 Six Months Ended March 31
 20262025Change
 (In thousands, unless otherwise noted)
Operating revenues$3,136,506 $2,991,863 $144,643 
Purchased gas cost1,367,948 1,391,607 (23,659)
Operating expenses853,412 800,490 52,922 
Operating income915,146 799,766 115,380 
Other non-operating income15,823 23,528 (7,705)
Interest charges53,575 64,336 (10,761)
Income before income taxes877,394 758,958 118,436 
Income tax expense170,856 138,102 32,754 
Net income$706,538 $620,856 $85,682 
Consolidated distribution sales volumes — MMcf
192,619 215,077 (22,458)
Consolidated distribution transportation volumes — MMcf
78,994 83,960 (4,966)
Total consolidated distribution throughput — MMcf
271,613 299,037 (27,424)
Consolidated distribution average cost of gas per Mcf sold$7.10 $6.47 $0.63 
Operating income for our distribution segment increased 14.4 percent. Key drivers for the change in operating income include:
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•a $130.7 million increase in rate adjustments, primarily in our Mid-Tex Division.
•a $14.6 million increase in consumption, net of WNA.
•a $9.9 million increase related to residential customer growth, primarily in our Mid-Tex Division, and increased industrial load.
•a $7.1 million decrease in refunds of excess deferred taxes to customers.
Partially offset by:
•a $49.2 million increase in depreciation expense and property taxes associated with increased capital investments.
•a $10.3 million increase in system monitoring, line locating, and other compliance-related activities.
Additionally, our distribution segment's income before income taxes for the six months ended March 31, 2026 was favorably impacted by $44.0 million as a result of Texas legislation that became effective during the third quarter of fiscal 2025 related to infrastructure spending. This amount is reflected in the respective line items in which the costs are incurred, including operating expenses of $29.0 million and interest charges.
 Six Months Ended March 31
 20262025Change
 (In thousands)
Mid-Tex$553,766 $442,086 $111,680 
Kentucky/Mid-States91,862 86,263 5,599 
Louisiana79,213 72,385 6,828 
West Texas92,790 68,236 24,554 
Mississippi67,186 85,266 (18,080)
Colorado-Kansas34,465 37,780 (3,315)
Other(4,136)7,750 (11,886)
Total$915,146 $799,766 $115,380 
Recent Ratemaking Developments
The amounts described in the following sections represent the operating income that was requested or received in each rate filing, which may not necessarily reflect the stated amount referenced in the final order, as certain operating costs may have changed as a result of a commission’s or other governmental authority’s final ruling. During the first six months of fiscal 2026, we implemented, or received approval to implement, regulatory proceedings, resulting in a $135.3 million increase in annual operating income as summarized below. Our ratemaking outcomes include the refund (return) of excess deferred income taxes (EDIT) resulting from previously enacted tax reform legislation and do not reflect the true economic benefit of the outcomes because they do not include the corresponding income tax benefit.
Rate ActionAnnual Increase (Decrease) in
Operating Income		EDIT ImpactAnnual Increase (Decrease) in
Operating Income Excluding EDIT
 (In thousands)
Annual formula rate mechanisms$146,085 $— $146,085 
Rate case filings(10,873)(4,009)(14,882)
Other rate activity81 — 81 
$135,293 $(4,009)$131,284 
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The following ratemaking efforts seeking $487.0 million in increased annual operating income were in progress as of March 31, 2026:
DivisionRate ActionJurisdictionOperating Income Requested
(In thousands)
Colorado-KansasRate Case
Colorado (1)
$17,556 
Colorado-KansasInfrastructure Mechanism
Kansas (2)
777 
Kentucky/Mid-StatesFormula Rate MechanismTennessee14,678 
LouisianaFormula Rate MechanismLouisiana30,845 
Mid-TexInfrastructure MechanismATM Cities28,201 
Mid-TexFormula Rate MechanismCity of Dallas35,840 
Mid-TexInfrastructure MechanismEnvirons15,649 
Mid-TexFormula Rate MechanismMid-Tex Cities273,213 
MississippiFormula Rate MechanismMississippi37,816 
West TexasInfrastructure MechanismAmarillo, Lubbock, Dalhart and Channing14,694 
West TexasInfrastructure MechanismEnvirons4,327 
West TexasFormula Rate MechanismWest Texas Cities13,371 
$486,967 
(1)    On April 15, 2026, we reached a settlement agreement for an operating income increase of $10.8 million pending final approval by the Colorado Public Utilities Commission. We anticipate rates will be implemented during fiscal 2026.
(2)    The Kansas Corporation Commission approved the SIP filing on March 31, 2026, with rates effective April 1, 2026.
Annual Formula Rate Mechanisms
As an instrument to reduce regulatory lag, formula rate mechanisms allow us to refresh our rates on an annual basis without filing a formal rate case. However, these filings still involve discovery by the appropriate regulatory authorities prior to the final determination of rates under these mechanisms. We currently have formula rate mechanisms in our Louisiana, Mississippi, and Tennessee operations and in substantially all the service areas in our Texas divisions. Additionally, we have specific infrastructure programs in substantially all of our distribution divisions with tariffs in place to permit the investment associated with these programs to have their surcharge rate adjusted annually to recover approved capital costs incurred in a prior test-year period. The following table summarizes our annual formula rate mechanisms by state:
Annual Formula Rate Mechanisms
StateInfrastructure ProgramsFormula Rate Mechanisms
ColoradoSystem Safety and Integrity Rider (SSIR)—
KansasGas System Reliability Surcharge (GSRS), System Integrity Program (SIP)—
KentuckyPipeline Replacement Program (PRP)—
Louisiana(1)Rate Stabilization Clause (RSC)
MississippiSystem Integrity Plan (SIP)Stable Rate Filing (SRF)
Tennessee (1)Annual Rate Mechanism (ARM)
TexasGas Reliability Infrastructure Program (GRIP), (1)Dallas Annual Rate Review (DARR), Rate Review Mechanism (RRM)
VirginiaSteps to Advance Virginia Energy (SAVE)—
(1)    Infrastructure mechanisms in Texas, Louisiana, and Tennessee allow for the deferral of all expenses associated with capital expenditures incurred pursuant to these rules, which primarily consists of interest, depreciation, and other taxes (Texas and Tennessee only), until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates.
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The following annual formula rate mechanisms were approved during the six months ended March 31, 2026:
DivisionJurisdictionTest Year
Ended		Increase in
Annual
Operating
Income		EDIT ImpactIncrease in
Annual
Operating
Income Excluding EDIT		Effective
Date
  (In thousands)
2025 Filings:
Colorado-KansasColorado SSIR12/31/2026$409 $— $409 01/01/2026
Colorado-KansasKansas GSRS06/30/20251,949 — 1,949 12/04/2025
Kentucky/Mid-StatesKentucky PRP09/30/20264,670 — 4,670 10/02/2025
Kentucky/Mid-StatesVirginia - SAVE09/30/2026549 — 549 10/01/2025
Mid-TexMid-Tex Cities RRM12/31/2024138,508 — 138,508 10/01/2025
Total 2025 Filings$146,085 $— $146,085 
Rate Case Filings
A rate case is a formal request from Atmos Energy to a regulatory authority to increase rates that are charged to our customers. Rate cases may also be initiated when the regulatory authorities request us to justify our rates. This process is referred to as a “show cause” action. Adequate rates are intended to provide for recovery of the Company’s costs as well as a fair rate of return and ensure that we continue to deliver reliable, reasonably priced natural gas service safely to our customers. The following table summarizes the rate cases completed in our distribution segment during the six months ended March 31, 2026.
DivisionStateIncrease (Decrease) in Annual
Operating Income		EDIT ImpactIncrease (Decrease) in Annual
Operating Income Excluding EDIT		Effective
Date
 (In thousands)
2025 Rate Case Filings:
Colorado-KansasKansas$12,330 $(3,998)$8,332 03/01/2026
Mississippi General Rate CaseMississippi(23,203)(11)(23,214)12/01/2025
Total 2025 Rate Case Filings$(10,873)$(4,009)$(14,882)
Pipeline and Storage Segment
Our pipeline and storage segment consists of the regulated pipeline and storage operations of our Atmos Pipeline–Texas Division (APT) and our natural gas transmission operations in Louisiana. APT is an intrastate pipeline in Texas with a heavy concentration in the established natural gas producing areas of central, northern, and eastern Texas, extending into or near the major producing areas of the Barnett Shale, the Texas Gulf Coast, and the Permian Basin of West Texas. APT provides transportation and storage services to our Mid-Tex Division, other third-party local distribution companies, industrial, and electric generation customers, as well as marketers and producers. Over 80 percent of this segment’s revenues are derived from these APT services. These revenues are subject to traditional ratemaking governed by the Texas Railroad Commission (RRC). As part of its pipeline operations, APT owns and operates five underground storage facilities in Texas.
Our natural gas transmission operations in Louisiana are comprised of a 21-mile pipeline located in the New Orleans, Louisiana area that is primarily used to aggregate gas supply for our distribution division in Louisiana under a long-term contract and, on a more limited basis, to third parties. The demand fee charged to our Louisiana distribution division for these services is subject to regulatory approval by the Louisiana Public Service Commission. We also manage two asset management plans, which have been approved by applicable state regulatory commissions. Generally, these asset management plans require us to share with our distribution customers a significant portion of the cost savings earned from these arrangements.
Our pipeline and storage segment is impacted by seasonal weather patterns, competitive factors in the energy industry, and economic conditions in our Texas and Louisiana service areas. Natural gas prices do not directly impact the results of this segment as revenues are derived from the transportation and storage of natural gas. However, natural gas prices and demand for natural gas could influence the level of drilling activity in the supply areas that we serve, which may influence the level of throughput we may be able to transport on our pipelines. Further, natural gas price differences between the various hubs that we
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serve in Texas could influence the volumes of gas transported for shippers through our Texas pipeline system and rates for such transportation.
The results of APT are also significantly impacted by the natural gas requirements of its local distribution company customers. Additionally, its operations may be impacted by the timing of when costs and expenses are incurred and when these costs and expenses are recovered through its tariffs.
APT annually uses GRIP to recover capital costs incurred in the prior calendar year. On February 13, 2026, APT made a GRIP filing that covered changes in net property, plant and equipment investments from January 1, 2025 through December 31, 2025 with a requested increase in operating income of $112.2 million.
The demand fee our Louisiana natural gas transmission pipeline charges to our Louisiana distribution division increases five percent annually and has been approved by the Louisiana Public Service Commission until September 30, 2027.
Three Months Ended March 31, 2026 compared with Three Months Ended March 31, 2025
Financial and operational highlights for our pipeline and storage segment for the three months ended March 31, 2026 and 2025 are presented below.
 Three Months Ended March 31
 20262025Change
 (In thousands, unless otherwise noted)
Mid-Tex / Affiliate transportation revenue$219,524 $198,239 $21,285 
Third-party transportation revenue66,634 56,690 9,944 
Other revenue3,131 4,070 (939)
Total operating revenues289,289 258,999 30,290 
Total purchased gas cost721 968 (247)
Operating expenses89,672 112,810 (23,138)
Operating income198,896 145,221 53,675 
Other non-operating income7,277 10,728 (3,451)
Interest charges19,601 19,927 (326)
Income before income taxes186,572 136,022 50,550 
Income tax expense41,976 31,089 10,887 
Net income$144,596 $104,933 $39,663 
Gross pipeline transportation volumes — MMcf230,341 244,583 (14,242)
Consolidated pipeline transportation volumes — MMcf158,850 154,675 4,175 
Operating income for our pipeline and storage segment increased 37.0 percent. Key drivers for the change in operating income include:
•a $20.3 million increase primarily due to rate adjustments from the GRIP filing approved in June 2025.
•a $3.9 million increase due to higher capacity contracted by tariff-based customers due to their increased peak day demand.
•an $8.6 million increase in APT's through-system activities primarily associated with increased spreads.
Partially offset by:
•an $8.0 million increase in depreciation expense and property taxes associated with increased capital investments.
Additionally, our pipeline and storage segment's income before income taxes for the three months ended March 31, 2026 was favorably impacted by $34.4 million as a result of Texas legislation that became effective during the third quarter of fiscal 2025 related to infrastructure spending. This amount is reflected in the respective line items in which the costs are incurred, including operating expenses of $30.4 million and interest charges.
Six Months Ended March 31, 2026 compared with Six Months Ended March 31, 2025
Financial and operational highlights for our pipeline and storage segment for the six months ended March 31, 2026 and 2025 are presented below.
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 Six Months Ended March 31
 20262025Change
 (In thousands, unless otherwise noted)
Mid-Tex / Affiliate transportation revenue$437,268 $394,161 $43,107 
Third-party transportation revenue133,136 113,639 19,497 
Other revenue5,518 6,589 (1,071)
Total operating revenues575,922 514,389 61,533 
Total purchased gas cost2,288 910 1,378 
Operating expenses209,212 224,826 (15,614)
Operating income364,422 288,653 75,769 
Other non-operating income23,924 25,278 (1,354)
Interest charges28,569 38,603 (10,034)
Income before income taxes359,777 275,328 84,449 
Income tax expense81,452 58,750 22,702 
Net income$278,325 $216,578 $61,747 
Gross pipeline transportation volumes — MMcf465,390 462,041 3,349 
Consolidated pipeline transportation volumes — MMcf341,723 323,765 17,958 
Operating income for our pipeline and storage segment increased 26.2 percent. Key drivers for the change in operating income include:
•a $40.6 million increase primarily due to rate adjustments from the GRIP filing approved in June 2025.
•a $7.7 million increase due to higher capacity contracted by tariff-based customers due to their increased peak day demand.
•a $16.0 million increase in APT's through-system activities primarily associated with increased spreads.
Partially offset by:
•a $12.3 million increase in depreciation expense and property taxes associated with increased capital investments.
Additionally, our pipeline and storage segment's income before income taxes for the six months ended March 31, 2026 was favorably impacted by $49.6 million as a result of Texas legislation that became effective during the third quarter of fiscal 2025 related to infrastructure spending. This amount is reflected in the respective line items in which the costs are incurred, including operating expenses of $33.1 million and interest charges.
Liquidity and Capital Resources
The liquidity required to fund our working capital, capital expenditures, and other cash needs is provided from a combination of internally generated cash flows and external debt and equity financing. Additionally, we have a $1.5 billion commercial paper program and four committed revolving credit facilities with $3.1 billion in total availability from third-party lenders. The commercial paper program and credit facilities provide cost-effective, short-term financing until it can be replaced with a balance of long-term debt and equity financing that achieves the Company's desired capital structure. Additionally, we have various uncommitted trade credit lines with our gas suppliers that we utilize to purchase natural gas on a monthly basis.
We have a shelf registration statement on file with the Securities and Exchange Commission (SEC) that allows us to issue up to $8.0 billion in common stock and/or debt securities, which expires December 3, 2027. As of March 31, 2026, $5.2 billion of securities were available for issuance under this shelf registration statement.
We also have an at-the-market (ATM) equity sales program under which we may issue and sell shares of our common stock up to an aggregate offering price of $1.7 billion (including shares of common stock that may be sold pursuant to forward sale agreements entered into in connection with the ATM equity sales program), which expires December 3, 2027. As of March 31, 2026, $827.1 million of equity was available for issuance under our existing ATM equity sales program. Additionally, as of March 31, 2026, we had $890.1 million in available proceeds from outstanding forward sale agreements. Additional details are summarized in Note 8 to the condensed consolidated financial statements.
The liquidity provided by these sources is expected to be sufficient to fund the Company's working capital needs and capital expenditure program for the remainder of fiscal year 2026. Additionally, we expect to continue to be able to obtain financing upon reasonable terms as necessary.
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The following table presents our capitalization inclusive of short-term debt and the current portion of long-term debt as of March 31, 2026, September 30, 2025 and March 31, 2025:
 
 March 31, 2026September 30, 2025March 31, 2025
 (In thousands, except percentages)
Short-term debt$— — %$— — %$— — %
Long-term debt (1)
9,556,624 39.1 %8,918,944 39.7 %8,425,437 39.1 %
Shareholders’ equity14,908,650 60.9 %13,558,890 60.3 %13,137,965 60.9 %
Total$24,465,274 100.0 %$22,477,834 100.0 %$21,563,402 100.0 %
(1)    Inclusive of our finance leases, but exclusive of AEK's securitized long-term debt.

Cash Flows
Our internally generated funds may change in the future due to a number of factors, some of which we cannot control. These factors include regulatory changes, the price for our services, demand for such products and services, margin requirements resulting from significant changes in commodity prices, operational risks, and other factors.
Cash flows from operating, investing, and financing activities for the six months ended March 31, 2026 and 2025 are presented below.
 Six Months Ended March 31
 20262025Change
 (In thousands)
Total cash provided by (used in)
Operating activities$1,031,547 $1,204,959 $(173,412)
Investing activities(2,035,766)(1,717,538)(318,228)
Financing activities927,524 748,843 178,681 
Change in cash and cash equivalents and restricted cash and cash equivalents(76,695)236,264 (312,959)
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period203,803 308,856 (105,053)
Cash and cash equivalents and restricted cash and cash equivalents at end of period$127,108 $545,120 $(418,012)
Cash flows from operating activities
For the six months ended March 31, 2026, we generated cash flow from operating activities of $1,031.5 million compared with $1,205.0 million for the six months ended March 31, 2025. Operating cash flow decreased by $173.4 million primarily due to the timing of gas cost recoveries.
Cash flows from investing activities
Our capital expenditures are primarily used to improve the safety and reliability of our distribution and transmission system through pipeline replacement and system modernization and to enhance and expand our system to meet customer needs. Over the last three fiscal years, over 85 percent of our capital spending has been committed to improving the safety and reliability of our system.
For the six months ended March 31, 2026, cash used for investing activities was $2,035.8 million compared to $1,717.5 million for the six months ended March 31, 2025. Capital spending in our distribution segment increased $301.1 million, primarily as a result of increased system modernization. Capital spending in our pipeline and storage segment increased $5.0 million primarily due to increased spending for pipeline system safety and reliability in Texas and system modernization.
Cash flows from financing activities
For the six months ended March 31, 2026, our financing activities provided $927.5 million of cash compared with $748.8 million of cash provided by financing activities in the prior-year period.
In the six months ended March 31, 2026, we received approximately $1.3 billion in net proceeds from the issuance of long-term debt and equity. We completed a public offering of $600 million of 5.45% senior notes due January 2056, and received net proceeds from the offering, after the underwriting discount and offering expenses, of $590.0 million. Additionally,
36

during the six months ended March 31, 2026, we settled 5,106,782 shares that had been sold on a forward basis for net proceeds of $671.6 million. The net proceeds were used primarily to support capital spending and for other general corporate purposes. Cash dividends increased due to a 14.9 percent increase in our dividend rate and an increase in shares outstanding.
In the six months ended March 31, 2025, we received approximately $1.0 billion in net proceeds from the issuance of long-term debt and equity. We completed a public offering of $650 million of 5.00% senior notes due December 2054, and received net proceeds from the offering, after the underwriting discount and offering expenses, of $639.4 million. Additionally, during the six months ended March 31, 2025, we settled 3,300,904 shares that had been sold on a forward basis for net proceeds of $379.5 million. The net proceeds were used primarily to support capital spending and for other general corporate purposes. Cash dividends increased due to an 8.1 percent increase in our dividend rate and an increase in shares outstanding.
The following table summarizes our share issuances for the six months ended March 31, 2026 and 2025:
 Six Months Ended March 31
 20262025
Shares issued:
Direct Stock Purchase Plan22,167 25,431 
1998 Long-Term Incentive Plan194,672 220,553 
Retirement Savings Plan and Trust26,305 29,390 
Equity Issuance5,106,782 3,300,904 
Total shares issued5,349,926 3,576,278 
Credit Ratings
Our credit ratings directly affect our ability to obtain short-term and long-term financing, in addition to the cost of such financing. In determining our credit ratings, the rating agencies consider a number of quantitative factors, including but not limited to, debt to total capitalization, operating cash flow relative to outstanding debt, operating cash flow coverage of interest, and pension liabilities. In addition, the rating agencies consider qualitative factors such as consistency of our earnings over time, the quality of our management and business strategy, the risks associated with our businesses, and the regulatory structures that govern our rates in the states where we operate.
Our debt is rated by two rating agencies: Standard & Poor’s Corporation (S&P) and Moody’s Investors Service (Moody’s). Currently, our outlook and debt ratings, which are all considered investment grade, are as follows:
S&P Moody’s
Senior unsecured long-term debtA-  A2
Short-term debtA-2  P-1
OutlookStableStable
A significant degradation in our operating performance or a significant reduction in our liquidity caused by more limited access to the private and public credit markets as a result of deteriorating global or national financial and credit conditions could trigger a negative change in our ratings outlook or even a reduction in our credit ratings by the two credit rating agencies. This would mean more limited access to the private and public credit markets and an increase in the costs of such borrowings.
A credit rating is not a recommendation to buy, sell, or hold securities. The highest investment grade credit rating is AAA for S&P and Aaa for Moody’s. The lowest investment grade credit rating is BBB- for S&P and Baa3 for Moody’s. Our credit ratings may be revised or withdrawn at any time by the rating agencies, and each rating should be evaluated independently of any other rating. There can be no assurance that a rating will remain in effect for any given period of time or that a rating will not be lowered, or withdrawn entirely, by a rating agency if, in its judgment, circumstances so warrant.
Debt Covenants
We were in compliance with all of our debt covenants as of March 31, 2026. Our debt covenants are described in greater detail in Note 7 to the condensed consolidated financial statements.
Contractual Obligations and Commercial Commitments
Except as noted in Note 11 to the condensed consolidated financial statements, there were no significant changes in our contractual obligations and commercial commitments during the six months ended March 31, 2026.
Risk Management Activities
37

In our distribution and pipeline and storage segments, we use a combination of physical storage, fixed physical contracts, and fixed financial contracts to reduce our exposure to unusually large winter-period gas price increases. Additionally, we manage interest rate risk by periodically entering into financial instruments to effectively fix the Treasury yield component of the interest cost associated with anticipated financings.
The following table shows the components of the change in fair value of our financial instruments for the three and six months ended March 31, 2026 and 2025:
 Three Months Ended March 31Six Months Ended March 31
 2026202520262025
 (In thousands)
Fair value of contracts at beginning of period$(7,260)$116,888 $3,412 $88,651 
Contracts realized/settled5,281 (2,465)1,358 (10,801)
Fair value of new contracts33 (561)42 (43)
Other changes in value4,554 8,786 (2,204)44,841 
Fair value of contracts at end of period2,608 122,648 2,608 122,648 
Netting of cash collateral— — — — 
Cash collateral and fair value of contracts at period end$2,608 $122,648 $2,608 $122,648 
The fair value of our financial instruments at March 31, 2026 is presented below by time period and fair value source:
 Fair Value of Contracts at March 31, 2026
Maturity in Years 
Source of Fair ValueLess
Than 1		1-34-5Greater
Than 5		Total
Fair
Value
 (In thousands)
Prices actively quoted$2,608 $— $— $— $2,608 
Prices based on models and other valuation methods— — — — — 
Total Fair Value$2,608 $— $— $— $2,608 
38

OPERATING STATISTICS AND OTHER INFORMATION
The following tables present certain operating statistics for our distribution and pipeline and storage segments for the three and six months ended March 31, 2026 and 2025.
Distribution Sales and Statistical Data
 Three Months Ended March 31Six Months Ended March 31
 2026202520262025
METERS IN SERVICE, end of period
Residential3,176,116 3,148,902 3,176,116 3,148,902 
Commercial259,186 259,023 259,186 259,023 
Industrial1,482 1,485 1,482 1,485 
Public authority and other5,624 7,724 5,624 7,724 
Total meters3,442,408 3,417,134 3,442,408 3,417,134 
INVENTORY STORAGE BALANCE — Bcf60.4 40.6 60.4 40.6 
SALES VOLUMES — MMcf (1)
Gas sales volumes
Residential69,388 86,552 110,316 125,915 
Commercial39,748 45,926 66,041 70,407 
Industrial6,810 7,825 13,622 14,343 
Public authority and other1,540 2,850 2,640 4,412 
Total gas sales volumes117,486 143,153 192,619 215,077 
Transportation volumes43,846 48,287 82,821 87,825 
Total throughput161,332 191,440 275,440 302,902 
Pipeline and Storage Operations Sales and Statistical Data
 Three Months Ended March 31Six Months Ended March 31
 2026202520262025
CUSTOMERS, end of period
Industrial91 92 91 92 
Other202 209 202 209 
Total293 301 293 301 
INVENTORY STORAGE BALANCE — Bcf0.2 0.3 0.2 0.3 
PIPELINE TRANSPORTATION VOLUMES — MMcf (1)
230,341 244,583 465,390 462,041 
Note to preceding tables:

(1)Sales and transportation volumes reflect segment operations, including intercompany sales and transportation amounts.
RECENT ACCOUNTING DEVELOPMENTS
Recent accounting developments, if any, and their impact on our financial position, results of operations and cash flows are described in Note 2 to the condensed consolidated financial statements.
 

39

Item 3.Quantitative and Qualitative Disclosures About Market Risk
Information regarding our quantitative and qualitative disclosures about market risk are disclosed in Item 7A in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. During the six months ended March 31, 2026, there were no material changes in our quantitative and qualitative disclosures about market risk.

Item 4.Controls and Procedures
Management’s Evaluation of Disclosure Controls and Procedures
We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of the Company’s disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act). Based on this evaluation, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2026 to provide reasonable assurance that information required to be disclosed by us, including our consolidated entities, in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified by the SEC’s rules and forms, including a reasonable level of assurance that such information is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
    
    We did not make any changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the second quarter of the fiscal year ended September 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

40

PART II. OTHER INFORMATION
Item 1.
Legal Proceedings
During the six months ended March 31, 2026, except as noted in Note 11 to the condensed consolidated financial statements, there were no material changes in the status of the litigation and other matters that were disclosed in Note 14 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. We continue to believe that the final outcome of such litigation and other matters or claims will not have a material adverse effect on our financial condition, results of operations or cash flows.
Item 1A.
Risk Factors
There were no material changes from the risk factors disclosed under the heading “Risk Factors” in Item 1A in the Annual Report on Form 10-K for the year ended September 30, 2025.
Item 5.
Other Information
During the three months ended March 31, 2026, no director or Section 16 officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.


41

Item 6.Exhibits
The following exhibits are filed as part of this Quarterly Report.
 
Exhibit
Number		  DescriptionPage Number or
Incorporation by
Reference to
3.1Amended and Restated Certificate of Formation of Atmos Energy Corporation filed with the State of Texas (As Amended and Restated February 6, 2026)
3.2Restated Articles of Incorporation of Atmos Energy Corporation filed with the Commonwealth of Virginia (As Restated Effective February 9, 2026)
3.3Amended and Restated Bylaws of Atmos Energy Corporation (as of February 4, 2026)
10.1
15  
31  
32  
101.INS  XBRL Instance Document - the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH  Inline XBRL Taxonomy Extension Schema
101.CAL  Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF  Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB  Inline XBRL Taxonomy Extension Labels Linkbase
101.PRE  Inline XBRL Taxonomy Extension Presentation Linkbase
104Cover Page Interactive Data File - the cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document

*These certifications, which were made pursuant to 18 U.S.C. Section 1350 by the Company’s Chief Executive Officer and Chief Financial Officer, furnished as Exhibit 32 to this Quarterly Report on Form 10-Q, will not be deemed to be filed with the Commission or incorporated by reference into any filing by the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporates such certifications by reference.

42

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
ATMOS ENERGY CORPORATION
               (Registrant)
 
By: /s/    CHRISTOPHER T. FORSYTHE
 
Christopher T. Forsythe
Senior Vice President and Chief Financial Officer
(Duly authorized signatory)
Date: May 6, 2026
43

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