About Atmos Energy

Atmos Energy Corporation and its subsidiaries engage in the regulated natural gas distribution and pipeline and storage businesses. The company safely delivers reliable, efficient and abundant natural gas through regulated sales and transportation arrangements to over 3.3 million residential, commercial, public authority and industrial customers in eight states located primarily in the South. The company also operates one of the largest intrastate pipelines in Texas based on miles of pipe. Operating Segments The company operates through Distribution, and Pipeline and Storage segments. Distribution This segment consists of the company's regulated natural gas distribution and related sales operations in eight states. The company operates in its service areas under terms of non-exclusive franchise agreements granted by the various cities and towns that it serves. As of September 30, 2023, the company held 1,021 franchises having terms generally ranging from five to 35 years. In addition, the company transports natural gas for others through its distribution systems. The company's supply of natural gas is provided by a variety of suppliers, including independent producers and marketers. The gas is delivered into the company's systems by various pipeline companies, withdrawals of gas from proprietary and contracted storage assets and base load and peaking arrangements, as needed. During the year ended September 30, 2023, the company's major suppliers were Cima Energy, LP; ConocoPhillips Company; EnLink Gas Marketing LP; Enterprise Navitas Midstream Midland Basin LLC; Hartree Partners, L.P.; Sequent Energy Management LLC; Symmetry Energy Solutions, LLC; Targa Gas Marketing LLC; Texla Energy Management, Inc.; and Twin Eagle Resource Management, LLC. The company estimates its peak-day availability of natural gas supply to be approximately 5.3 Bcf (billion cubic feet). The peak-day demand for the company's distribution operations for the year ended September 30, 2023, was on December 23, 2022, when sales to customers reached approximately 4.2 Bcf. The company's distribution divisions utilize 35 pipeline transportation companies, both interstate and intrastate, to transport its natural gas. The natural gas supply for the company's Mid-Tex Division is delivered primarily by its APT Division. Pipeline and Storage This segment consists primarily of the pipeline and storage operations of the company's Atmos Pipeline-Texas division (APT) and its natural gas transmission operations in Louisiana. APT is one of the largest intrastate pipeline operations 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. Through its system, APT provides transportation and storage services to the company's Mid-Tex Division, other third party local distribution companies, industrial and electric generation customers, marketers and producers. As part of its pipeline operations, APT owns and operates five underground storage facilities in Texas. The company's natural gas transmission operations in Louisiana are consisted of a 21-mile pipeline located in the New Orleans, Louisiana area that is primarily used to aggregate gas supply for its distribution division in Louisiana under a long-term contract and, on a more limited basis, to third parties. The demand fee charged to the company's Louisiana distribution division for these services is subject to regulatory approval by the Louisiana Public Service Commission. The company also manages two asset management plans that serve distribution affiliates of the company, which have been approved by applicable state regulatory commissions. Properties Distribution, Transmission and Related Assets In its distribution segment, the company owned an aggregate of 73,689 miles of underground distribution and transmission mains throughout its distribution systems. These mains are located on easements or rights-of-way. The company maintains its mains through a program of continuous inspection and repair and its system of mains is in good condition. Through its pipeline and storage segment the company owned 5,645 miles of gas transmission lines. Storage Assets The company owns underground gas storage facilities in several states to supplement the supply of natural gas in periods of peak demand. Additionally, the company contracts for storage service in underground storage facilities on many of the interstate and intrastate pipelines serving it to supplement its proprietary storage capacity. Regulation The company is regulated by various state or local public utility authorities. It is also subject to regulation by the United States Department of Transportation with respect to safety requirements in the operation and maintenance of its transmission and distribution facilities. The Federal Energy Regulatory Commission (FERC) allows, pursuant to Section 311 of the Natural Gas Policy Act (NGPA), gas transportation services through the company's APT assets 'on behalf of' interstate pipelines or local distribution companies served by interstate pipelines, without subjecting these assets to the jurisdiction of the FERC under the NGPA. The United States Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission, pursuant to the Dodd-Frank Act, established numerous regulations relating to the U.S. financial markets. The company enacted procedures and modified existing business practices and contractual arrangements to comply with such regulations. History Atmos Energy Corporation was founded in 1906. The company was incorporated in 1981.