# ATMOS ENERGY CORP (ATO)

Informational only - not investment advice.

CIK: 0000731802
SIC: 4924 Natural Gas Distribution
SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [Electric, Gas, And Sanitary Services](/major-group/49/) > [SIC 4924 Natural Gas Distribution](/industry/4924/)
Latest 10-K filed: 2025-11-14
SEC page: https://www.sec.gov/edgar/browse/?CIK=731802
Filing source: https://www.sec.gov/Archives/edgar/data/731802/000073180225000056/ato-20250930.htm

## At a glance

FY2025 · period end 2025-09-30 · filed 2025-11-14 · accession 0000731802-25-000056 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000731802.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 4,702,755,000 USD | 2025 | verified |
| Net income | 1,198,754,000 USD | 2025 | verified |
| Assets | 28,249,522,000 USD | 2025 | verified |
| Free cash flow | -1,511,943,000 USD | 2025 | computed |
| Net margin | 25.49% | 2025 | computed |
| Operating margin | 33.17% | 2025 | computed |
| Revenue YoY | +12.91% | 2025 | computed |
| ROE | 8.84% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | ATO | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 25.5% | 11.0% | 88 | 9 |
| Operating margin | 33.2% | 21.8% | 75 | 9 |
| Revenue growth | 12.9% | 13.4% | 38 | 9 |
| ROE | 8.8% | 8.0% | 62 | 9 |
| ROA | 4.2% | 3.0% | 62 | 9 |
| Liabilities / equity | 1.08 | 2.17 | 12 | 9 |
| Current ratio | 0.77 | 0.72 | 75 | 9 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 4924 Natural Gas Distribution, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 4702755000 | USD | 2025 | 2025-11-14 |
| Net income | 1198754000 | USD | 2025 | 2025-11-14 |
| Assets | 28249522000 | USD | 2025 | 2025-11-14 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-14. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000731802.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 2,454,648,000 | 2,759,735,000 | 3,115,546,000 | 2,901,848,000 | 2,821,137,000 | 3,407,490,000 | 4,201,662,000 | 4,275,357,000 | 4,165,187,000 | 4,702,755,000 |
| Net income | 350,104,000 | 396,421,000 | 603,064,000 | 511,406,000 | 601,443,000 | 665,563,000 | 774,398,000 | 885,862,000 | 1,042,895,000 | 1,198,754,000 |
| Operating income | 657,230,000 | 735,628,000 | 727,934,000 | 746,058,000 | 824,099,000 | 904,998,000 | 920,982,000 | 1,067,147,000 | 1,355,362,000 | 1,559,971,000 |
| Diluted EPS | 3.38 | 3.73 | 5.43 | 4.35 | 4.89 | 5.12 | 5.60 | 6.10 | 6.83 | 7.46 |
| Operating cash flow | 794,990,000 | 867,090,000 | 1,124,662,000 | 968,769,000 | 1,037,999,000 | -1,084,251,000 | 977,584,000 | 3,459,743,000 | 1,733,746,000 | 2,049,456,000 |
| Capital expenditures | 1,086,950,000 | 1,137,089,000 | 1,467,591,000 | 1,693,477,000 | 1,935,676,000 | 1,969,540,000 | 2,444,420,000 | 2,805,973,000 | 2,937,124,000 | 3,561,399,000 |
| Dividends paid | 175,126,000 | 191,931,000 | 214,906,000 | 245,717,000 | 282,444,000 | 323,904,000 | 375,914,000 | 430,345,000 | 492,950,000 | 553,761,000 |
| Assets | 10,010,889,000 | 10,749,596,000 | 11,874,437,000 | 13,367,619,000 | 15,359,032,000 | 19,608,662,000 | 22,192,989,000 | 22,516,968,000 | 25,194,465,000 | 28,249,522,000 |
| Stockholders' equity | 3,463,059,000 | 3,898,666,000 | 4,769,951,000 | 5,750,223,000 | 6,791,203,000 | 7,906,889,000 | 9,419,091,000 | 10,870,064,000 | 12,157,669,000 | 13,558,890,000 |
| Cash and cash equivalents | 47,534,000 | 26,409,000 | 13,771,000 | 24,550,000 | 20,808,000 | 116,723,000 | 51,554,000 | 15,404,000 | 307,340,000 | 202,687,000 |
| Free cash flow | -291,960,000 | -269,999,000 | -342,929,000 | -724,708,000 | -897,677,000 | -3,053,791,000 | -1,466,836,000 | 653,770,000 | -1,203,378,000 | -1,511,943,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 14.26% | 14.36% | 19.36% | 17.62% | 21.32% | 19.53% | 18.43% | 20.72% | 25.04% | 25.49% |
| Operating margin | 26.77% | 26.66% | 23.36% | 25.71% | 29.21% | 26.56% | 21.92% | 24.96% | 32.54% | 33.17% |
| Return on equity | 10.11% | 10.17% | 12.64% | 8.89% | 8.86% | 8.42% | 8.22% | 8.15% | 8.58% | 8.84% |
| Return on assets | 3.50% | 3.69% | 5.08% | 3.83% | 3.92% | 3.39% | 3.49% | 3.93% | 4.14% | 4.24% |
| Liabilities / equity | 1.89 | 1.76 | 1.49 | 1.32 | 1.26 | 1.48 | 1.36 | 1.07 | 1.07 | 1.08 |
| Current ratio | 0.38 | 0.53 | 0.25 | 0.38 | 0.60 | 0.81 | 0.85 | 0.65 | 0.94 | 0.77 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/ATO/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000731802.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-12-31 |  |  | 1.91 | reported discrete quarter |
| 2023-Q2 | 2023-03-31 |  |  | 2.48 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  |  | 0.94 | reported discrete quarter |
| 2023-Q4 | 2023-09-30 | 587,642,000 | 118,464,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-12-31 | 1,158,467,000 | 311,106,000 | 2.08 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 | 1,647,227,000 | 431,768,000 | 2.85 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 | 701,549,000 | 165,477,000 | 1.08 | reported discrete quarter |
| 2024-Q4 | 2024-09-30 | 657,944,000 | 133,953,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-12-31 | 1,175,999,000 | 351,699,000 | 2.23 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 | 1,950,502,000 | 485,331,000 | 3.03 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 | 838,774,000 | 186,342,000 | 1.16 | reported discrete quarter |
| 2025-Q4 | 2025-09-30 | 737,480,000 | 174,826,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-12-31 | 1,342,585,000 | 402,825,000 | 2.44 | reported discrete quarter |
| 2026-Q2 | 2026-03-31 | 1,962,402,000 | 581,691,000 | 3.47 | reported discrete quarter |
| 2026-Q3 | 2026-06-30 | 879,059,000 | 242,613,000 | 1.43 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ATO's latest 10-K: [/company/ATO/business/](/company/ATO/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ATO's latest 10-K: [/company/ATO/risk-factors/](/company/ATO/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/731802/000073180226000102/ato-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

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 June 30, 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.

28

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 nine months ended June 30, 2026.

RESULTS OF OPERATIONS

Executive Summary

During the nine months ended June 30, 2026, we recorded net income of $1,227.6 million, or $7.33 per diluted share, compared to net income of $1,023.9 million, or $6.40 per diluted share for the nine months ended June 30, 2025.

The 20 percent year-over-year increase in net income largely reflects positive rate outcomes driven by safety and reliability spending. Additionally, our results for the nine months ended June 30, 2026 were favorably impacted by $132.4 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, higher spending on safety and compliance related activities, and increased employee-related costs.

During the nine months ended June 30, 2026, we implemented ratemaking regulatory actions which resulted in an increase in annual operating income of $355.0 million. Additionally, as of June 30, 2026, we had ratemaking efforts in progress seeking a total increase in annual operating income of $373.4 million.

Capital expenditures for the nine months ended June 30, 2026 were $3,076.3 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 nine months ended June 30, 2026, we completed approximately $2.2 billion of long-term debt and equity financing. As of June 30, 2026, our equity capitalization was 59.8 percent. As of June 30, 2026, we had approximately $4.6 billion in total liquidity, consisting of $521.0 million in cash and cash equivalents, $936.8 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.

29

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:

[[GREPCENT_TABLE]]
[["Kansas, West Texas","October \u2014 May"],["Tennessee","October \u2014 April"],["Kentucky, Mississippi, Mid-Tex","November \u2014 April"],["Louisiana","December \u2014 March"],["Virginia","January \u2014 December"]]
[[/GREPCENT_TABLE]]

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

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/731802/000073180225000056/ato-20250930.htm
Complete FY 2025 MD&A: /company/ATO/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-11-14
Report date: 2025-09-30

ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

INTRODUCTION

This section provides management’s discussion of the financial condition, changes in financial condition, and results of operations of Atmos Energy Corporation and its consolidated subsidiaries with specific information on results of operations and liquidity and capital resources. It includes management’s interpretation of our financial results, the factors affecting these results, the major factors expected to affect future operating results, and future investment and financing plans. This discussion should be read in conjunction with our consolidated financial statements and notes thereto.

Several factors exist that could influence our future financial performance, some of which are described in Item 1A above, “Risk Factors”. They should be considered in connection with evaluating forward-looking statements contained in this report or otherwise made by or on behalf of us since these factors could cause actual results and conditions to differ materially from those set out in such forward-looking statements.

Cautionary Statement for the Purposes of the Safe Harbor under the Private Securities Litigation Reform Act of 1995

The statements contained in this Annual Report on Form 10-K 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

24

Table of Contents

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's 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 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 POLICIES

Our 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 base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from estimates.

Our significant accounting policies are discussed in Note 2 to our consolidated financial statements. The accounting policies discussed below are both important to the presentation of our financial condition and results of operations and require management to make difficult, subjective, or complex accounting estimates. Accordingly, these critical accounting policies are reviewed periodically by the Audit Committee of the Board of Directors.

[[GREPCENT_TABLE]]
[["Critical Accounting Policy","Summary of Policy","Factors Influencing Application of the Policy"],["Regulation","Our distribution and pipeline operations meet the criteria of a cost-based, rate-regulated entity under accounting principles generally accepted in the United States. Accordingly, the financial results for these operations reflect the effects of the ratemaking and accounting practices and policies of the various regulatory commissions to which we are subject. As a result, certain costs that would normally be expensed under accounting principles generally accepted in the United States are permitted to be capitalized or deferred on the balance sheet because it is probable they can be recovered through rates. Further, regulation may impact the period in which revenues or expenses are recognized. The amounts expected to be recovered or recognized are based upon historical experience and our understanding of the regulations. Discontinuing the application of this method of accounting for regulatory assets and liabilities or changes in the accounting for our various regulatory mechanisms could significantly increase our operating expenses as fewer costs would likely be capitalized or deferred on the balance sheet, which could reduce our net income.","Decisions of regulatory authorities Issuance of new regulations or regulatory mechanisms Assessing that the recoverability of deferred costs and utility assets is probable Continuing to meet the criteria of a cost-based, rate regulated entity for accounting purposes"]]
[[/GREPCENT_TABLE]]

25

Table of Contents

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/ATO/mda/fy2025/
All MD&A years: /company/ATO/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ATO/mda/fy2024/): filed 2024-11-18; accession 0000731802-24-000030 (https://www.sec.gov/Archives/edgar/data/731802/000073180224000030/ato-20240930.htm)
- [FY 2023 MD&A](/company/ATO/mda/fy2023/): filed 2023-11-14; accession 0000731802-23-000028 (https://www.sec.gov/Archives/edgar/data/731802/000073180223000028/ato-20230930.htm)
- [FY 2022 MD&A](/company/ATO/mda/fy2022/): filed 2022-11-14; accession 0000731802-22-000037 (https://www.sec.gov/Archives/edgar/data/731802/000073180222000037/ato-20220930.htm)
- [FY 2021 MD&A](/company/ATO/mda/fy2021/): filed 2021-11-12; accession 0000731802-21-000040 (https://www.sec.gov/Archives/edgar/data/731802/000073180221000040/ato-20210930.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 4924 Natural Gas Distribution) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ATO.md · JSON record: /company/ATO.json · verified financials: /company/ATO/financials.json / /company/ATO/financials.csv · machine TOC for the whole site: /llms.txt