Financial Analysis

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. Atmos Energy is working closely with the NTSB and other state and federal regulators to help determine causal factors. 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 …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Long-term debt Long-term debt at September 30, 2025 and 2024 consisted of the following: 2025 2024 (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 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 Medium term Series A notes, 1995-1, 6.67%, due December 2025 10,000 10,000 Unsecured 6.75% Debentures, due July 2028 150,000 150,000 Finance lease obligations (see Note 7) 47,234 48,890 Total long-term debt 8,982,234 7,833,890 Less: Net original issue premium on unsecured senior notes and debentures (1,332) (9,071) De …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables disaggregates our revenue from contracts with customers by customer type and segment and provides a reconciliation to total operating revenues, including intersegment revenues, for the periods presented. Year Ended September 30, 2025 Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 2,877,456 $ Commercial 1,145,710 Industrial 122,284 Public authority and other 51,354 Total gas sales revenues 4,196,804 Transportation revenues 151,876 1,119,015 Miscellaneous revenues 13,123 12,749 Revenues from contracts with customers 4,361,803 1,131,764 Alternative revenue program revenues 49,215 (66,464) Other revenues 14,379 Total operating revenues $ 4,425,397 $ 1,065,300 Year Ended September 30, 2024 Distribution Pipeline and Storage Gas sales revenues: Residential $ 2,542,438 $ Commercial 1,006,593 Industrial 100,363 Public authority and other 51,337 Total gas sales revenues 3,700,731 Transportation revenues 134,600 982,795 Miscellaneous revenues 11,836 15,892 Revenues from contracts with customers 3,847,167 998,687 Alternative revenue program revenues 52,401 (60,658) Other revenues 15,573 Total operating revenues $ 3,915,141 $ 938,029 Year Ended September 30, 2023 Distribution Pipeline and Storage Gas sales revenues: Residential $ 2,606,658 $ Commercial 1,100,773 Industrial 151,538 Public authority and other 61,345 Total gas sales revenues 3,920,314 Transportation revenues 121,420 811,968 Miscellaneous revenues 10,044 12,180 Revenues …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock and Other Compensation Plans Stock-Based Compensation Plans Total stock-based compensation cost was $33.2 million, $25.4 million, and $23.7 million for the fiscal years ended September 30, 2025, 2024, and 2023. Of this amount, $20.5 million, $14.7 million, and $13.5 million was capitalized. 1998 Long-Term Incentive Plan We have the 1998 Long-Term Incentive Plan (LTIP), which provides a comprehensive, long-term incentive compensation plan providing for discretionary awards of incentive stock options, non-qualified stock options, stock appreciation rights, bonus stock, time-lapse restricted stock, time-lapse restricted stock units, performance-based restricted stock units, and stock units to certain employees and non-employee directors of the Company and our subsidiaries. The objectives of this plan include attracting and retaining the best available personnel and providing for additional performance incentives by providing employees with the opportunity to acquire common stock. We are authorized to grant awards up to a maximum cumulative amount of 13.2 million shares of common stock under this plan subject to certain adjustment provisions. As of September 30, 2025, non-qualified stock options, bonus stock, time-lapse restricted stock, time-lapse restricted stock units, performance-based restricted stock units, and stock units had been issued under this plan, and 2.2 million shares are available for future issuance. Restricted Stock Units Award Grants As noted above, the …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

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 and restricted cash and cash equivalents, accounts receivable, and accounts payable 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. Fair value measurements also apply to the valuation of our pension and postretirement plan assets. The fair value of these assets is presented in Note 11 to the consolidated financial statements. Quantitative Disclosures Financial Instruments The classification of our fair value measurements requires judgment regarding the degree to which market data are observable or corroborated by observable market data. 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 September 30, 2025 and 2024. A …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes Income Tax Expense Reconciliations of the provision for income taxes computed at the statutory rate of 21 percent to the reported provisions for income taxes from continuing operations for 2025, 2024, and 2023 are set forth below: 2025 2024 2023 (In thousands) % (In thousands) % (In thousands) % U.S federal statutory tax rate $ 310,387 21.0 % $ 259,513 21.0 % $ 209,925 21.0 % State and local income taxes, net of federal income tax effect (1) 24,254 1.6 % 27,367 2.2 % 19,853 2.0 % Changes in valuation allowances % 1,106 0.1 % % Changes in unrecognized tax benefits 2,004 0.1 % 926 0.1 % 5,302 0.5 % Nontaxable or nondeductible items 741 0.1 % 2,464 0.2 % 1,000 0.1 % Amortization of excess deferred taxes (60,727) (4.1) % (100,270) (8.1) % (123,953) (12.4) % Other, net 2,621 0.2 % 1,775 0.1 % 1,652 0.2 % Income tax expense $ 279,280 18.9 % $ 192,881 15.6 % $ 113,779 11.4 % (1) The states that contribute to the majority (greater than 50%) of the tax effect in this category include Texas and Louisiana. Deferred income taxes reflect the tax effect of differences between the basis of assets and liabilities for book and tax purposes. The tax effect of temporary differences that gave rise to significant components of the deferred tax liabilities and deferred tax assets at September 30, 2025 and 2024 are presented below: 2025 2024 (In thousands) Deferred tax assets: Employee benefit plans $ 34,202 $ 41,184 Net operating loss carryforwards 473,642 484,816 Charitable and other …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases We utilize operating leases for office and warehouse space, tower space, vehicles, and heavy equipment used in our operations. We also have finance leases for certain build-to-suit service centers. The following table presents our weighted average remaining lease term for our leases. September 30, 2025 September 30, 2024 Weighted average remaining lease term (years) Finance leases 15.7 16.7 Operating leases 8.8 9.9 The following table represents our weighted average discount rate: September 30, 2025 September 30, 2024 Weighted average discount rate Finance leases 4.0 % 4.0 % Operating leases 4.5 % 4.1 % Lease costs for the years ended September 30, 2025, 2024, and 2023 are presented in the table below. These costs include both amounts recognized in expense and amounts capitalized. For the years ended September 30, 2025, 2024, and 2023 we did not have material short-term lease costs or variable lease costs. Year Ended September 30 2025 2024 2023 (In thousands) Finance lease cost $ 4,467 $ 4,523 $ 4,499 Operating lease cost 56,695 48,421 44,090 Total lease cost $ 61,162 $ 52,944 $ 48,589 Our ROU assets and lease liabilities are presented as follows on the consolidated balance sheets: Balance Sheet Classification September 30, 2025 September 30, 2024 (In thousands) Assets Finance leases Net property, plant and equipment $ 42,064 $ 44,748 Operating leases Deferred charges and other assets 293,934 249,556 Total right-of-use assets $ 335,998 $ 294,304 Liabilities Current Fin …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

In November 2023, the Financial Accounting Standards Board (FASB) issued guidance which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. We adopted this amendment as of September 30, 2025 and applied it retrospectively for all periods presented. See Note 4 for further discussion. In December 2023, the FASB issued guidance which provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. We early adopted this amendment as of September 30, 2025 and applied it retrospectively for all periods presented. See Note 15 for further discussion. Accounting pronouncements that will be effective after fiscal 2025 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 reporting periods 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 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Retirement and Postretirement Employee Benefit Plans We have both funded and unfunded noncontributory defined benefit plans that together cover most of our employees. We also maintain a postretirement plan that provides health care benefits to retired employees. Finally, we sponsor a defined contribution plan that covers substantially all employees. These plans are discussed in further detail below. As a rate regulated entity, most of our net periodic pension and other postretirement benefits costs are recoverable through our rates over a period of up to 15 years. A portion of these costs are 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 expense. Additionally, the amounts that have not yet been recognized in net periodic pension cost that have been recorded as regulatory assets or liabilities are as follows: Employee Pension Plan Supplemental Executive Retirement Plans Postretirement Plan Total (In thousands) September 30, 2025 Unrecognized prior service credit $ $ $ (9,984) $ (9,984) Unrecognized actuarial (gain) loss (179,351) 17,661 (116,690) (278,380) $ (179,351) $ 17,661 $ (126,674) $ (288,364) September 30, 2024 Unrecognized prior service credit $ $ $ (24,897) $ (24,897) Unrecognized actuarial (gain) loss (126,989) 16,136 (111,500) (222,353) $ (126,989) $ 16,136 $ (136,397) $ (247,250) Defined Benefit Plans Employee Pension Plan As …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue and Accounts Receivable The following tables disaggregates our revenue from contracts with customers by customer type and segment and provides a reconciliation to total operating revenues, including intersegment revenues, for the periods presented. Year Ended September 30, 2025 Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 2,877,456 $ Commercial 1,145,710 Industrial 122,284 Public authority and other 51,354 Total gas sales revenues 4,196,804 Transportation revenues 151,876 1,119,015 Miscellaneous revenues 13,123 12,749 Revenues from contracts with customers 4,361,803 1,131,764 Alternative revenue program revenues 49,215 (66,464) Other revenues 14,379 Total operating revenues $ 4,425,397 $ 1,065,300 Year Ended September 30, 2024 Distribution Pipeline and Storage Gas sales revenues: Residential $ 2,542,438 $ Commercial 1,006,593 Industrial 100,363 Public authority and other 51,337 Total gas sales revenues 3,700,731 Transportation revenues 134,600 982,795 Miscellaneous revenues 11,836 15,892 Revenues from contracts with customers 3,847,167 998,687 Alternative revenue program revenues 52,401 (60,658) Other revenues 15,573 Total operating revenues $ 3,915,141 $ 938,029 Year Ended September 30, 2023 Distribution Pipeline and Storage Gas sales revenues: Residential $ 2,606,658 $ Commercial 1,100,773 Industrial 151,538 Public authority and other 61,345 Total gas sales revenues 3,920,314 Transportation revenues 121,420 811,968 Miscellaneous …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information As of September 30, 2025, we manage and review our consolidated operations through the following two 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. Our determination of reportable segments considers the strategic operating units under which we manage sales of various products and services to customers. Although our distribution segment operations are geographically dispersed, they are aggregated and reported as a single segment as each natural gas distribution division has similar economic characteristics. In addition, because the pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana have similar economic characteristics, they have been aggregated and reported as a single segment. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. We evaluate performance based on net income or loss of the respective operating units. We allocate interest and pension expense to the pipeline and storage segment; however, there is no debt or pension liability recorded on the pipeline and storage segment balance sheet. All material intercompa …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies Principles of consolidation The accompanying consolidated financial statements include the accounts of Atmos Energy Corporation and its wholly-owned subsidiaries. All material intercompany transactions have been eliminated; however, we have not eliminated intercompany profits when such amounts are probable of recovery under the affiliates rate regulation process. Reclassification Certain reclassifications have been made to prior period amounts to conform to current period presentation. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. The most significant estimates include the allowance for doubtful accounts, unbilled revenues, contingency accruals, pension and postretirement obligations, deferred income taxes, risk management and trading activities, and fair value measurements. Actual results could differ from those estimates. Regulation Our distribution and pipeline and storage operations are subject to regulation with respect to rates, service, maintenance of accounting records, and various other matters by the respective regulatory authorities in the states in which we operate. Our accounting policies recognize the financial effects of the ratemaking and accounting practices and policies of the various regulato …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Shareholders' Equity Shelf Registration, At-the-Market Equity Sales Program and Equity Issuances On December 3, 2024, we filed a shelf registration statement 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. This shelf registration statement replaced our previous shelf registration statement which was filed on March 31, 2023. As of the date of this report, $5.2 billion of securities remained available for issuance under the shelf registration statement. On December 3, 2024, we filed a prospectus supplement under the shelf registration statement relating to 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 year ended September 30, 2025, we executed forward sales under our ATM equity sales program with various forward sellers who borrowed and sold 5,967,768 shares of our common stock at an aggregate price of $871.5 million. During the year ended September 30, 2025, we also settled forward sale agreements with respect to 5,931,289 shares that had been borrowed and sold by various forward sellers under the ATM program for net proceeds of $698.5 million. As of September 30, 2025, $82 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

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. Atmos Energy is working closely with the NTSB and other state and federal regulators to help determine causal factors. 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 …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

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 three months ended December 31, 2025. Long-term debt at December 31, 2025 and September 30, 2025 consisted of the following: December 31, 2025 September 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 No …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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 months ended December 31, 2025 and 2024. Three Months Ended December 31, 2025 Three Months Ended December 31, 2024 Distribution Pipeline and Storage Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 780,412 $ $ 693,050 $ Commercial 315,565 266,054 Industrial 32,861 26,321 Public authority and other 10,077 12,881 Total gas sales revenues 1,138,915 998,306 Transportation revenues 41,478 317,403 36,727 266,029 Miscellaneous revenues 2,838 2,630 3,022 2,664 Revenues from contracts with customers 1,183,231 320,033 1,038,055 268,693 Alternative revenue program revenues 71,832 (33,400) 67,336 (13,303) Other revenues 3,763 3,944 Total operating revenues $ 1,258,826 $ 286,633 $ 1,109,335 $ 255,390 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

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 three months ended December 31, 2025, 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 fisca …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

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 December 31, 2025 and 2024 were 20.0% and 18.4%. 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 $121.9 million is being returned over various periods. Of this amount, $73.7 million is being returned to customers over 36 - 60 months. An additional $47.2 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 December 31, 2025 and S …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

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.

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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 months ended December 31, 2025 and 2024 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. Three Months Ended December 31 Pension Benefits Other Benefits 2025 2024 2025 2024 (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) (2,880) (3,260) Amortization of actuarial (gain) loss (1) (51) 256 (2,415) (2,429) Net periodic pension cost $ 1,505 $ 2,101 $ (3,713) $ (4,122) (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. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

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 months ended December 31, 2025 and 2024. Three Months Ended December 31, 2025 Three Months Ended December 31, 2024 Distribution Pipeline and Storage Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 780,412 $ $ 693,050 $ Commercial 315,565 266,054 Industrial 32,861 26,321 Public authority and other 10,077 12,881 Total gas sales revenues 1,138,915 998,306 Transportation revenues 41,478 317,403 36,727 266,029 Miscellaneous revenues 2,838 2,630 3,022 2,664 Revenues from contracts with customers 1,183,231 320,033 1,038,055 268,693 Alternative revenue program revenues 71,832 (33,400) 67,336 (13,303) Other revenues 3,763 3,944 Total operating revenues $ 1,258,826 $ 286,633 $ 1,109,335 $ 255,390 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 th …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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. Income statement information and capital expenditures for the three months ended December 31, 2025 and 2024 by segment are presented in the following tables: Three Months Ended December 31, 2025 Distribution Pipeline and Storage Total of Reportable Segments (In thousands) Operating revenues from external parties $ 1,258,049 $ 84,536 $ 1,342,585 Intersegment revenues 777 202,097 202,874 Total operating revenues 1,258,826 286,633 1,545,459 Operation and maintenance expense 165,368 58,592 223,960 Depreciation and amortization expense (2) 145,988 48,657 194,645 Interest charges (2) 24,445 8,968 33,413 Income tax expense (2) 61,142 39,476 100,618 Other segment items (1) 592,648 (2,789) 589,859 Net income (2) $ 269,235 $ 133,729 $ 402,964 Capital expenditures (2) $ 804,575 $ 228,772 $ 1,033,347 Reconciliation to consolidated total operating revenue …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

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 Companys 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 three-month period ended December 31, 2025 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. No events have occurred subsequent to the balance sheet date that would require recognition or disclosure in the condensed consolidated financi …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Shareholders' Equity The following tables present a reconciliation of changes in stockholders' equity for the three months ended December 31, 2025 and 2024. Common stock Additional 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 offerings 3,709,647 18 474,625 474,643 Stock-based compensation plans 156,446 1 11,606 11,607 Balance, December 31, 2025 165,434,477 $ 827 $ 8,707,686 $ 470,210 $ 5,104,169 $ 14,282,892 Common stock Additional 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 offerings 3,329,358 17 383,520 383,537 Stock-based compensation plans 137,862 1 6,446 6,447 Balance, December 31, 2024 158,726,065 $ 794 $ 7,864,525 $ 482,138 $ 4,433,024 $ 12,780,481 Shelf Registration, At-the-Market Equity Sales Program and Equity Issuances We ha …

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