What changed in Atmos Energy's 2023 10-K compared to 2022?

Across the narrative sections we track, Atmos Energy (ATO) added 138 paragraphs, removed 151, and edited 117 between the 2022 and 2023 10-K filings. The biggest movers are Item 7. Management's Discussion & Analysis (+70/−78), Item 1. Business (+31/−34), Item 1A. Risk Factors (+22/−25).

Did Atmos Energy add new Risk Factors in the 2023 10-K?

Yes — Item 1A Risk Factors shows 22 new/edited paragraphs and 25 removed paragraphs versus the 2022 10-K.

What changed in Atmos Energy's MD&A (Item 7) in 2023?

Item 7 Management's Discussion & Analysis shows 70 new/edited paragraphs and 78 removed paragraphs year-over-year. Read the side-by-side diff to see exactly which revenue, margin, and outlook commentary was rewritten.

Where does this ATO 10-K diff come from?

The source filings are Atmos Energy's official 2022 and 2023 Form 10-K annual reports from SEC EDGAR. 10q10k.net parses each filing, aligns paragraphs by section (Item 1, 1A, 1C, 2, 3, 7, 7A), and highlights every added, removed and edited sentence side-by-side.

What changed in Atmos Energy's 10-K — 2022 vs 2023

Paragraph-level year-over-year comparison of Atmos Energy's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+138 added−151 removedSource: 10-K (2023-11-14) vs 10-K (2022-11-14)

Top changes in Atmos Energy's 2023 10-K

138 paragraphs added · 151 removed · 117 edited across 6 sections

Item 7. Management's Discussion & Analysis+70 / −78 · 59 edited
Item 1. Business+31 / −34 · 27 edited
Item 1A. Risk Factors+22 / −25 · 18 edited
Item 2. Properties+6 / −6 · 5 edited
Item 5. Market for Registrant's Common Equity+7 / −6 · 6 edited

Item 1. Business

Business — how the company describes what it does

27 edited+4 added−7 removed55 unchanged

2022 filing

2023 filing

Biggest changeAnnual Formula Rate Mechanisms State Infrastructure Programs Formula Rate Mechanisms Colorado System Safety and Integrity Rider (SSIR) — Kansas Gas System Reliability Surcharge (GSRS), System Integrity Program (SIP) — Kentucky Pipeline Replacement Program (PRP) — Louisiana (1) Rate Stabilization Clause (RSC) Mississippi System Integrity Rider (SIR) Stable Rate Filing (SRF) Tennessee (1) Annual Rate Mechanism (ARM) Texas Gas Reliability Infrastructure Program (GRIP), (1) Dallas Annual Rate Review (DARR), Rate Review Mechanism (RRM) Virginia Steps 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 only), until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates. 9 Table of Contents The following table summarizes our annual formula rate mechanisms with effective dates during the fiscal years ended September 30, 2022, 2021 and 2020: Division Jurisdiction Test Year Ended Increase (Decrease) in Annual Operating Income EDIT Impact Increase (Decrease) in Annual Operating Income Excluding EDIT Effective Date (In thousands) 2022 Filings: Kentucky/Mid-States Tennessee ARM 09/2021 $ 2,466 $ — $ 2,466 07/01/2022 Louisiana Louisiana (1) 12/2021 17,650 (10,389) 7,261 07/01/2022 West Texas Amarillo, Lubbock, Dalhart and Channing 12/2021 6,122 — 6,122 06/11/2022 West Texas Triangle 12/2021 1,549 — 1,549 06/11/2022 West Texas Environs 12/2021 1,221 — 1,221 06/11/2022 Mid-Tex ATM Cities 12/2021 12,815 — 12,815 06/10/2022 Mid-Tex Environs 12/2021 5,646 — 5,646 06/10/2022 Mid-Tex DARR (2) 09/2021 13,201 — 13,201 05/25/2022 Atmos Pipeline - Texas Texas 12/2021 78,750 — 78,750 05/18/2022 Colorado-Kansas Kansas SIP 12/2021 623 — 623 04/01/2022 Colorado-Kansas Kansas GSRS 09/2021 1,820 — 1,820 02/01/2022 Colorado-Kansas Colorado SSIR 12/2022 2,610 — 2,610 01/01/2022 Mid-Tex Mid-Tex Cities RRM 12/2020 21,673 33,851 55,524 12/01/2021 West Texas West Texas Cities RRM 12/2020 151 3,347 3,498 12/01/2021 Mississippi Mississippi - SIR 10/2022 8,354 2,123 10,477 11/01/2021 Mississippi Mississippi - SRF 10/2022 (5,624) 4,317 (1,307) 11/01/2021 Kentucky/Mid-States Virginia - SAVE 09/2022 327 — 327 10/01/2021 Total 2022 Filings $ 169,354 $ 33,249 $ 202,603 2021 Filings: Mid-Tex Environs 12/2020 $ 4,632 $ — $ 4,632 09/01/2021 Louisiana Louisiana 12/2020 (2,407) 24,192 21,785 07/01/2021 Mid-Tex ATM Cities (3) 12/2020 11,085 — 11,085 06/11/2021 West Texas Triangle (3) 12/2020 416 — 416 06/11/2021 West Texas Environs (3) 12/2020 1,267 — 1,267 06/11/2021 Mid-Tex DARR (3) 09/2020 1,708 15,114 16,822 06/09/2021 Kentucky/Mid-States Tennessee ARM 09/2020 10,260 — 10,260 06/01/2021 Atmos Pipeline - Texas Texas 12/2020 43,868 — 43,868 05/11/2021 Colorado-Kansas Kansas GSRS 09/2020 1,695 — 1,695 02/01/2021 Colorado-Kansas Colorado SSIR 12/2021 2,366 — 2,366 01/01/2021 Mid-Tex Mid-Tex Cities RRM 12/2019 82,645 — 82,645 12/01/2020 West Texas West Texas Cities RRM 12/2019 5,645 — 5,645 12/01/2020 Mississippi Mississippi - SIR 10/2021 10,556 — 10,556 11/01/2020 Mississippi Mississippi - SRF 10/2021 5,856 — 5,856 11/01/2020 Kentucky/Mid-States Virginia - SAVE 09/2021 305 — 305 10/01/2020 Kentucky/Mid-States Kentucky PRP 09/2021 1,562 — 1,562 10/01/2020 Total 2021 Filings $ 181,459 $ 39,306 $ 220,765 10 Table of Contents 2020 Filings: Mid-Tex DARR 09/2019 $ 14,746 $ — $ 14,746 09/01/2020 Louisiana Louisiana 12/2019 14,781 — 14,781 07/01/2020 West Texas Environs (4) 12/2019 1,031 — 1,031 06/16/2020 Kentucky/Mid-States Tennessee ARM 05/2019 714 — 714 06/15/2020 Mid-Tex ATM Cities (4) 12/2019 11,148 — 11,148 06/12/2020 Mid-Tex Environs (4) 12/2019 4,440 — 4,440 05/20/2020 Atmos Pipeline - Texas Texas 12/2019 49,251 — 49,251 05/20/2020 West Texas Amarillo, Lubbock, Dalhart and Channing (4) 12/2019 5,937 — 5,937 04/28/2020 Colorado-Kansas Colorado SSIR 12/2020 2,082 — 2,082 01/01/2020 Mississippi Mississippi - SIR 10/2020 7,586 — 7,586 11/01/2019 Mississippi Mississippi - SRF 10/2020 6,886 — 6,886 11/01/2019 Kentucky/Mid-States Virginia - SAVE 09/2020 84 — 84 10/01/2019 Kentucky/Mid-States Kentucky PRP 09/2020 2,912 — 2,912 10/01/2019 Mid-Tex Mid-Tex RRM Cities 12/2018 34,380 — 34,380 10/01/2019 West Texas West Texas Cities RRM 12/2018 4,879 — 4,879 10/01/2019 Total 2020 Filings $ 160,857 $ — $ 160,857 (1) Rates were implemented on July 1, 2022, subject to refund.

Biggest changeAnnual Formula Rate Mechanisms State Infrastructure Programs Formula Rate Mechanisms Colorado System Safety and Integrity Rider (SSIR) — Kansas Gas System Reliability Surcharge (GSRS), System Integrity Program (SIP) — Kentucky Pipeline Replacement Program (PRP) — Louisiana (1) Rate Stabilization Clause (RSC) Mississippi System Integrity Rider (SIR) Stable Rate Filing (SRF) Tennessee (1) Annual Rate Mechanism (ARM) Texas Gas Reliability Infrastructure Program (GRIP), (1) Dallas Annual Rate Review (DARR), Rate Review Mechanism (RRM) Virginia Steps 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 only), until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates. 9 Table of Contents The following table summarizes our annual formula rate mechanisms with effective dates during the fiscal years ended September 30, 2023, 2022 and 2021: Division Jurisdiction Test Year Ended Increase (Decrease) in Annual Operating Income EDIT Impact Increase (Decrease) in Annual Operating Income Excluding EDIT Effective Date (In thousands) 2023 Filings: Louisiana Louisiana 12/2022 $ 14,466 $ 17 $ 14,483 07/01/2023 Mid-Tex DARR (1) 09/2022 17,345 51 17,396 06/14/2023 Mid-Tex ATM Cities 12/2022 12,825 — 12,825 06/09/2023 West Texas Amarillo, Lubbock, Dalhart and Channing 12/2022 6,938 — 6,938 06/09/2023 West Texas Triangle 12/2022 717 — 717 06/01/2023 West Texas Environs 12/2022 1,332 — 1,332 06/01/2023 Mid-Tex Environs 12/2022 5,983 — 5,983 06/01/2023 Kentucky/Mid-States Tennessee ARM 09/2022 14 (1,509) (1,495) 06/01/2023 Atmos Pipeline - Texas Texas 12/2022 84,931 — 84,931 05/17/2023 Colorado-Kansas Kansas SIP 12/2022 772 — 772 04/01/2023 Colorado-Kansas Colorado SSIR 12/2023 1,971 — 1,971 01/01/2023 Mississippi Mississippi - SIR 10/2023 8,560 — 8,560 11/01/2022 Mississippi Mississippi - SRF 10/2023 12,188 778 12,966 11/01/2022 Kentucky/Mid-States Kentucky PRP 09/2023 1,588 — 1,588 10/02/2022 Mid-Tex Mid-Tex Cities RRM 12/2021 81,402 (395) 81,007 10/01/2022 West Texas West Texas Cities RRM 12/2021 7,315 (41) 7,274 10/01/2022 Kentucky/Mid-States Virginia - SAVE 09/2023 477 — 477 10/01/2022 Total 2023 Filings $ 258,824 $ (1,099) $ 257,725 2022 Filings: Kentucky/Mid-States Tennessee ARM 09/2021 $ 2,466 $ — $ 2,466 07/01/2022 Louisiana Louisiana 12/2021 17,650 (10,389) 7,261 07/01/2022 West Texas Amarillo, Lubbock, Dalhart and Channing 12/2021 6,122 — 6,122 06/11/2022 West Texas Triangle 12/2021 1,549 — 1,549 06/11/2022 West Texas Environs 12/2021 1,221 — 1,221 06/11/2022 Mid-Tex ATM Cities 12/2021 12,815 — 12,815 06/10/2022 Mid-Tex Environs 12/2021 5,646 — 5,646 06/10/2022 Mid-Tex DARR (2) 09/2021 13,201 — 13,201 05/25/2022 Atmos Pipeline - Texas Texas 12/2021 78,750 — 78,750 05/18/2022 Colorado-Kansas Kansas SIP 12/2021 623 — 623 04/01/2022 Colorado-Kansas Kansas GSRS 09/2021 1,820 — 1,820 02/01/2022 Colorado-Kansas Colorado SSIR 12/2022 2,610 — 2,610 01/01/2022 Mid-Tex Mid-Tex Cities RRM 12/2020 21,673 33,851 55,524 12/01/2021 West Texas West Texas Cities RRM 12/2020 151 3,347 3,498 12/01/2021 Mississippi Mississippi - SIR 10/2022 8,354 2,123 10,477 11/01/2021 Mississippi Mississippi - SRF 10/2022 (5,624) 4,317 (1,307) 11/01/2021 Kentucky/Mid-States Virginia - SAVE 09/2022 327 — 327 10/01/2021 Total 2022 Filings $ 169,354 $ 33,249 $ 202,603 10 Table of Contents 2021 Filings: Mid-Tex Environs 12/2020 $ 4,632 $ — $ 4,632 09/01/2021 Louisiana Louisiana 12/2020 (2,407) 24,192 21,785 07/01/2021 Mid-Tex ATM Cities (3) 12/2020 11,085 — 11,085 06/11/2021 West Texas Triangle (3) 12/2020 416 — 416 06/11/2021 West Texas Environs (3) 12/2020 1,267 — 1,267 06/11/2021 Mid-Tex DARR (3) 09/2020 1,708 15,114 16,822 06/09/2021 Kentucky/Mid-States Tennessee ARM 09/2020 10,260 — 10,260 06/01/2021 Atmos Pipeline - Texas Texas 12/2020 43,868 — 43,868 05/11/2021 Colorado-Kansas Kansas GSRS 09/2020 1,695 — 1,695 02/01/2021 Colorado-Kansas Colorado SSIR 12/2021 2,366 — 2,366 01/01/2021 Mid-Tex Mid-Tex Cities RRM 12/2019 82,645 — 82,645 12/01/2020 West Texas West Texas Cities RRM 12/2019 5,645 — 5,645 12/01/2020 Mississippi Mississippi - SIR 10/2021 10,556 — 10,556 11/01/2020 Mississippi Mississippi - SRF 10/2021 5,856 — 5,856 11/01/2020 Kentucky/Mid-States Virginia - SAVE 09/2021 305 — 305 10/01/2020 Kentucky/Mid-States Kentucky PRP 09/2021 1,562 — 1,562 10/01/2020 Total 2021 Filings $ 181,459 $ 39,306 $ 220,765 (1) The rate increase for this filing was approved based on the effective date herein; however, the new rates were implemented beginning September 1, 2023.

In addition, in accordance with and pursuant to such NYSE listing standards, our Chief Executive Officer during fiscal 2022, John K. Akers, certified to the New York Stock Exchange that he was not aware of any violations by the Company of NYSE corporate governance listing standards.

In addition, in accordance with and pursuant to such NYSE listing standards, our Chief Executive Officer during fiscal 2023, John K. Akers, certified to the New York Stock Exchange that he was not aware of any violations by the Company of NYSE corporate governance listing standards.

Operating Segments As of September 30, 2022, we manage and review our consolidated operations through the following reportable segments: • The distribution segment is primarily comprised of our regulated natural gas distribution and related sales operations in eight states. • The pipeline and storage segment is comprised primarily of the pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana.

Operating Segments As of September 30, 2023, we manage and review our consolidated operations through the following reportable segments: • The distribution segment is primarily comprised of our regulated natural gas distribution and related sales operations in eight states. • The pipeline and storage segment is comprised primarily of the pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana.

Through its system, APT provides transportation and storage services to our 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 reservoirs in Texas.

Through our annual formula rate mechanisms and infrastructure programs, we have the ability to recover approximately 90 percent of our capital expenditures within six months and substantially all of our capital expenditures within twelve months. • Authorization in tariffs, statute or commission rules that allows us to defer certain elements of our cost of service such as depreciation, ad valorem taxes and pension costs, until they are included in rates. • WNA mechanisms in seven states that serve to minimize the effects of weather on approximately 96 percent of our distribution residential and commercial revenues. • The ability to recover the gas cost portion of bad debts in five states which represents approximately 81 percent of our distribution residential and commercial revenues. 6 Table of Contents The following table provides a jurisdictional rate summary for our regulated operations as of September 30, 2022.

Through our annual formula rate mechanisms and infrastructure programs, we have the ability to recover approximately 90 percent of our capital expenditures within six months and substantially all of our capital expenditures within twelve months. • Authorization in tariffs, statute or commission rules that allows us to defer certain elements of our cost of service such as depreciation, ad valorem taxes and pension costs, until they are included in rates. • WNA mechanisms in seven states that serve to minimize the effects of weather on approximately 96 percent of our distribution residential and commercial revenues. • The ability to recover the gas cost portion of bad debts in five states which represents approximately 80 percent of our distribution residential and commercial revenues. 6 Table of Contents The following tables provides a jurisdictional rate summary for our regulated operations as of September 30, 2023.

Available Information Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports, and amendments to those reports, and other forms that we file with or furnish to the Securities and Exchange Commission (SEC) at their website, www.sec.gov , are also available free of charge at our website, www.atmosenergy.com/company/publications-and-sec-filings , as soon as reasonably practicable, after we electronically file these reports with, or furnish these 13 Table of Contents reports to, the SEC.

We safely deliver reliable, affordable, efficient and abundant natural gas through regulated sales and transportation arrangements to approximately 3.3 million residential, commercial, public authority and industrial customers in eight states located primarily in the South. We also operate one of the largest intrastate pipelines in Texas based on miles of pipe.

We safely deliver 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. We also operate one of the largest intrastate pipelines in Texas based on miles of pipe.

The combination of base load and peaking agreements, coupled with the withdrawal of gas held in storage, allows us the flexibility to adjust to changes in weather, which minimizes our need to enter into long-term firm commitments. We estimate our peak-day availability of natural gas supply to be approximately 4.4 Bcf.

We compete in all aspects of our business with alternative energy sources, including, in particular, electricity. Electric utilities offer electricity as a rival energy source and compete for the space heating, water heating and cooking markets. Promotional incentives, improved equipment efficiencies 12 Table of Contents and promotional rates all contribute to the acceptability of electrical equipment.

We compete in all aspects of our business with alternative energy sources, including, in particular, electricity. Electric utilities offer electricity as a rival energy source and compete for the space heating, water heating and cooking markets. Promotional incentives, improved equipment efficiencies and promotional rates all contribute to the acceptability of electrical equipment.

At September 30, 2022, we held 1,028 franchises having terms generally ranging from five to 35 years. A significant number of our franchises expire each year, which require renewal prior to the end of their terms. Historically, we have successfully renewed these franchises and believe that we will continue to be able to renew our franchises as they expire.

At September 30, 2023, we held 1,021 franchises having terms generally ranging from five to 35 years. A significant number of our franchises expire each year, which require renewal prior to the end of their terms. Historically, we have successfully renewed these franchises and believe that we will continue to be able to renew our franchises as they expire.

To recruit and hire individuals with a variety of skills, talents, backgrounds and experiences, we value and cultivate our strong relationships with hundreds of community and diversity outreach sources.

To recruit and hire individuals with a variety of skills, talents, backgrounds and experiences, we value and cultivate our strong relationships with various community and diversity outreach sources.

The principal means to compete against alternative fuels is lower prices, and natural gas historically has maintained its price advantage in the residential, commercial and industrial markets. Our pipeline and storage operations have historically faced competition from other existing intrastate pipelines seeking to provide or arrange transportation, storage and other services for customers.

The principal means to compete against alternative fuels is lower prices, and natural gas historically has maintained its price advantage in the residential, commercial and industrial markets. 12 Table of Contents Our pipeline and storage operations have historically faced competition from other existing intrastate pipelines seeking to provide or arrange transportation, storage and other services for customers.

We will also provide copies of these reports free of charge upon request to Shareholder Relations at the address and telephone number appearing below: Shareholder Relations Atmos Energy Corporation P.O.

We will also provide copies of these reports free of charge upon request to Shareholder Relations at the address and telephone number appearing below: 13 Table of Contents Shareholder Relations Atmos Energy Corporation P.O.

(9) The West Texas rate base represents a "system-wide," or 100 percent, of the West Texas Division's rate base. (10) The West Texas Cities approved the Formula Rate Mechanism filing with rates effective October 1, 2022, which included a rate base of $855.3 million, an authorized return of 7.28%, a debt/equity ratio of 42/58 and an authorized ROE of 9.80%.

(9) The West Texas rate base represents a "system-wide," or 100 percent, of the West Texas Division's rate base. (10) The West Texas Cities approved the Formula Rate Mechanism filing with rates effective October 1, 2023, which included a rate base of $965.3 million, an authorized return of 7.35%, a debt/equity ratio of 42/58 and an authorized ROE of 9.80%.

Major suppliers during fiscal 2022 were ConocoPhillips Company, EnLink Gas Marketing LP, Enterprise Navitas Midstream Midland Basin LLC, EOG Resources, Inc., 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.

Major suppliers during fiscal 2023 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.

GRIP allows us to include in our rate base annually approved capital costs incurred in the prior calendar year provided that we file a complete rate case at least once every five 5 Table of Contents years; the most recent of which was completed in August 2017.

New rates were implemented on October 1, 2022. Our recent ratemaking activity is discussed in greater detail below. 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.

Our recent ratemaking activity is discussed in greater detail below. 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.

The following table summarizes our recent rate case activity during the fiscal years ended September 30, 2022, 2021 and 2020: Division State Increase (Decrease) in Annual Operating Income EDIT Impact Increase (Decrease) in Annual Operating Income Excluding EDIT Effective Date (In thousands) 2022 Rate Case Filings: Kentucky/Mid-States Kentucky (1) $ 5,938 $ 7,379 $ 13,317 05/20/2022 Total 2022 Rate Case Filings $ 5,938 $ 7,379 $ 13,317 2021 Rate Case Filings: West Texas (ALDC) Texas $ 5,119 $ 1,168 $ 6,287 06/01/2021 Total 2021 Rate Case Filings $ 5,119 $ 1,168 $ 6,287 2020 Rate Case Filings: West Texas (Triangle) Texas $ (808) $ — $ (808) 04/21/2020 Colorado-Kansas Kansas (249) — (249) 04/01/2020 Total 2020 Rate Case Filings $ (1,057) $ — $ (1,057) (1) The rate case outcome for Kentucky is inclusive of the fiscal 2022 pipeline replacement program. 11 Table of Contents Other Ratemaking Activity The following table summarizes other ratemaking activity during the fiscal years ended September 30, 2022, 2021 and 2020: Division Jurisdiction Rate Activity Increase (Decrease) in Annual Operating Income Effective Date (In thousands) 2022 Other Rate Activity: Colorado-Kansas Kansas Ad Valorem (1) $ (370) 02/01/2022 Total 2022 Other Rate Activity $ (370) 2021 Other Rate Activity: Colorado-Kansas Kansas Ad Valorem (1) $ (877) 02/01/2021 Total 2021 Other Rate Activity $ (877) 2020 Other Rate Activity: Colorado-Kansas Kansas Ad-Valorem (1) $ 353 02/01/2020 Total 2020 Other Rate Activity $ 353 (1) The Ad Valorem filing relates to property taxes that are either over or undercollected compared to the amount included in our Kansas service area's base rates.

The following table summarizes our recent rate case activity during the fiscal years ended September 30, 2023, 2022 and 2021: Division State Increase in Annual Operating Income EDIT Impact Increase in Annual Operating Income Excluding EDIT Effective Date (In thousands) 2023 Rate Case Filings: Colorado-Kansas Colorado $ 913 $ (54) $ 859 05/14/2023 Colorado-Kansas Kansas 2,027 6,845 8,872 05/09/2023 Total 2023 Rate Case Filings $ 2,940 $ 6,791 $ 9,731 2022 Rate Case Filings: Kentucky/Mid-States Kentucky (1) $ 5,938 $ 7,379 $ 13,317 05/20/2022 Total 2022 Rate Case Filings $ 5,938 $ 7,379 $ 13,317 2021 Rate Case Filings: West Texas (ALDC) Texas $ 5,119 $ 1,168 $ 6,287 06/01/2021 Total 2021 Rate Case Filings $ 5,119 $ 1,168 $ 6,287 (1) The rate case outcome for Kentucky is inclusive of the fiscal 2022 pipeline replacement program. 11 Table of Contents Other Ratemaking Activity The following table summarizes other ratemaking activity during the fiscal years ended September 30, 2023, 2022 and 2021: Division Jurisdiction Rate Activity Increase (Decrease) in Annual Operating Income Effective Date (In thousands) 2023 Other Rate Activity: Colorado-Kansas Kansas Ad Valorem (1) $ 1,320 02/01/2023 Total 2023 Other Rate Activity $ 1,320 2022 Other Rate Activity: Colorado-Kansas Kansas Ad Valorem (1) $ (370) 02/01/2022 Total 2022 Other Rate Activity $ (370) 2021 Other Rate Activity: Colorado-Kansas Kansas Ad-Valorem (1) $ (877) 02/01/2021 Total 2021 Other Rate Activity $ (877) (1) The Ad Valorem filing relates to property taxes that are either over or undercollected compared to the amount included in our Kansas service area's base rates.

The peak-day demand for our distribution operations in fiscal 2022 was on February 3, 2022, when sales to customers reached approximately 3.6 Bcf. Currently, our distribution divisions utilize 38 pipeline transportation companies, both interstate and intrastate, to transport our natural gas.

The peak-day demand for our distribution operations in fiscal 2023 was on December 23, 2022, when sales to customers reached approximately 4.2 Bcf. Currently, our distribution divisions utilize 35 pipeline transportation companies, both interstate and intrastate, to transport our natural gas.

At September 30, 2022, we had 4,791 employees, substantially unchanged from last year. We monitor our workforce data on a calendar year basis. As of December 31, 2021, 61 percent of our employees worked in field roles and 39 percent worked in support/shared services roles. No employees are subject to a collective bargaining agreement.

At September 30, 2023, we had 5,019 employees. We monitor our workforce data on a calendar year basis. As of December 31, 2022, the last date for which information is available, 61 percent of our employees worked in field roles and 39 percent worked in support/shared services roles. No employees are subject to a collective bargaining agreement.

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.

Rate Case Filings A rate case is a formal request from Atmos Energy to a regulatory authority to increase rates that are charged to 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.

We also target jobs fairs including those focused on minority, veteran and women candidates and partner with local colleges and universities to identify and recruit qualified applicants in each of the cities and towns we serve. Over the last five calendar years, we hired over 2,000 employees. Our culture is also reflected in our employee benefits.

We also target jobs fairs including those focused on minority, veteran and women candidates and partner with local colleges and universities to identify and recruit qualified applicants in each of the cities and towns we serve. Finally, we believe we offer a competitive benefits program to help retain our employees.

Division Service Areas Communities Served Customer Meters Mid-Tex Texas, including the Dallas/Fort Worth Metroplex 550 1,822,036 Kentucky/Mid-States Kentucky 230 184,547 Tennessee 162,392 Virginia 24,898 Louisiana Louisiana 270 376,515 West Texas Amarillo, Lubbock, Midland 80 329,378 Mississippi Mississippi 110 273,934 Colorado-Kansas Colorado 170 127,565 Kansas 140,959 We operate in our service areas under terms of non-exclusive franchise agreements granted by the various cities and towns that we serve.

Division Service Areas Communities Served Customer Meters Mid-Tex Texas, including the Dallas/Fort Worth Metroplex 550 1,856,356 Kentucky/Mid-States Kentucky 220 185,630 Tennessee 165,267 Virginia 25,083 Louisiana Louisiana 270 378,483 West Texas Amarillo, Lubbock, Midland 80 330,490 Mississippi Mississippi 110 273,586 Colorado-Kansas Colorado 170 129,197 Kansas 142,292 We operate in our service areas under terms of non-exclusive franchise agreements granted by the various cities and towns that we serve.

Division Jurisdiction Effective Date of Last Rate/GRIP Action Rate Base (thousands) (1) Authorized Rate of Return (1) Authorized Debt/ Equity Ratio (1) Authorized Return on Equity (1) Atmos Pipeline — Texas Texas 05/18/2022 $3,432,180 8.87% 47/53 11.50% Colorado-Kansas Colorado 05/03/2018 134,726 7.55% 44/56 9.45% Colorado SSIR 01/01/2022 98,695 7.55% 44/56 9.45% Kansas 04/01/2020 242,314 7.03% 44/56 9.10% Kansas GSRS 02/01/2022 35,612 7.03% 44/56 9.10% Kansas SIP 04/01/2022 5,881 7.03% 44/56 9.10% Kentucky/Mid-States Kentucky 05/20/2022 568,506 6.82% 45/55 9.23% Kentucky-PRP 10/01/2020 39,368 7.49% 42/58 9.65% Tennessee 07/01/2022 447,448 7.53% 39/61 9.80% Virginia 04/01/2019 47,827 7.43% 42/58 9.20% Virginia-SAVE 10/01/2021 7,466 7.43% 42/58 9.20% Louisiana Louisiana 07/01/2022 942,422 7.30% (4) (4) Mid-Tex Mid-Tex Cities (6) 12/01/2021 4,394,489 (5) 7.36% 42/58 9.80% Mid-Tex ATM Cities 06/10/2022 5,121,370 (5) 7.97% 40/60 9.80% Mid-Tex Environs 06/10/2022 5,121,376 (5) 7.97% 40/60 9.80% Mid-Tex — Dallas 05/25/2022 5,051,984 (5) 7.41% 41/59 9.80% Mississippi Mississippi (7) 11/01/2021 473,932 7.81% (4) (4) Mississippi - SIR (7) 11/01/2021 323,695 7.81% (4) (4) West Texas West Texas Cities (8) (10) 12/01/2021 758,951 (9) 7.36% 42/58 9.80% West Texas - ALDC 06/11/2022 857,631 (9) 7.35% 41/59 (4) West Texas - Environs 06/11/2022 855,152 (9) 7.97% 40/60 9.80% Division Jurisdiction Bad Debt Rider (2) Formula Rate Infrastructure Mechanism Performance Based Rate Program (3) WNA Period Atmos Pipeline — Texas Texas No Yes Yes N/A N/A Colorado-Kansas Colorado No No Yes No N/A Kansas Yes No Yes Yes October-May Kentucky/Mid-States Kentucky Yes No Yes Yes November-April Tennessee Yes Yes Yes Yes October-April Virginia Yes No Yes No January-December Louisiana Louisiana No Yes Yes No December-March Mid-Tex Cities Texas Yes Yes Yes No November-April Mid-Tex — Dallas Texas Yes Yes Yes No November-April Mississippi Mississippi No Yes Yes No November-April West Texas Texas Yes Yes Yes No October-May 7 Table of Contents (1) The rate base, authorized rate of return, authorized debt/equity ratio and authorized return on equity presented in this table are those from the most recent regulatory filing for each jurisdiction.

Division Jurisdiction Effective Date of Last Rate/GRIP Action Rate Base (thousands) (1) Authorized Rate of Return (1) Authorized Debt/ Equity Ratio (1) Authorized Return on Equity (1) Atmos Pipeline — Texas Texas (5) 05/17/2023 $4,055,375 8.87% 47/53 11.50% Colorado-Kansas Colorado 05/14/2023 229,565 7.00% 42-45/55-58 9.3% - 9.6% Colorado SSIR 01/01/2023 31,993 7.00% 42-45/55-58 9.3% - 9.6% Kansas 05/09/2023 295,070 (4) (4) (4) Kansas SIP 04/01/2023 13,270 7.03% 44/56 9.10% Kentucky/Mid-States Kentucky 05/20/2022 568,506 6.82% 45/55 9.23% Kentucky-PRP 10/02/2022 14,375 6.94% 45/55 9.45% Tennessee 06/01/2023 499,447 7.58% 38/62 9.80% Virginia 04/01/2019 47,827 7.43% 42/58 9.20% Virginia-SAVE 10/01/2022 11,753 7.43% 42/58 9.20% Louisiana Louisiana 07/01/2023 1,094,373 7.30% (4) (4) Mid-Tex Mid-Tex Cities (7) 10/01/2022 5,234,981 (6) 7.28% 42/58 9.80% Mid-Tex ATM Cities 06/09/2023 5,932,535 (6) 7.97% 40/60 9.80% Mid-Tex Environs 06/01/2023 5,932,542 (6) 7.97% 40/60 9.80% Mid-Tex — Dallas 09/01/2023 5,904,692 (6) 7.43% 40/60 9.80% Mississippi Mississippi 11/01/2022 525,348 7.53% (4) (4) Mississippi - SIR 11/01/2022 390,276 7.53% (4) (4) West Texas West Texas Cities (8) (10) 10/01/2022 855,328 (9) 7.28% 42/58 9.80% West Texas - ALDC 06/09/2023 960,622 (9) 7.35% 41/59 (4) West Texas - Environs 06/01/2023 958,159 (9) 7.97% 40/60 9.80% West Texas - Triangle 06/01/2023 56,279 7.71% 40/60 9.80% Division Jurisdiction Bad Debt Rider (2) Formula Rate Infrastructure Mechanism Performance Based Rate Program (3) WNA Period Atmos Pipeline — Texas Texas No Yes Yes N/A N/A Colorado-Kansas Colorado No No Yes No N/A Kansas Yes No Yes Yes October-May Kentucky/Mid-States Kentucky Yes No Yes Yes November-April Tennessee Yes Yes Yes Yes October-April Virginia Yes No Yes No January-December Louisiana Louisiana No Yes Yes No December-March Mid-Tex Cities Texas Yes Yes Yes No November-April Mid-Tex — Dallas Texas Yes Yes Yes No November-April Mississippi Mississippi No Yes Yes No November-April West Texas Texas Yes Yes Yes No October-May 7 Table of Contents (1) The rate base, authorized rate of return, authorized debt/equity ratio and authorized return on equity presented in this table are those from the most recent approved regulatory filing for each jurisdiction.

Rate Action Annual Increase (Decrease) in Operating Income EDIT Impact Annual Increase (Decrease) in Operating Income Excluding EDIT (In thousands) 2022 Filings: Annual formula rate mechanisms $ 169,354 $ 33,249 $ 202,603 Rate case filings 5,938 7,379 13,317 Other ratemaking activity (370) — (370) Total 2022 Filings $ 174,922 $ 40,628 $ 215,550 2021 Filings: Annual formula rate mechanisms $ 181,459 $ 39,306 $ 220,765 Rate case filings 5,119 1,168 6,287 Other ratemaking activity (877) — (877) Total 2021 Filings $ 185,701 $ 40,474 $ 226,175 2020 Filings: Annual formula rate mechanisms $ 160,857 $ — $ 160,857 Rate case filings (1,057) — (1,057) Other ratemaking activity 353 — 353 Total 2020 Filings $ 160,153 $ — $ 160,153 8 Table of Contents The following ratemaking efforts seeking $144.5 million in annual operating income were initiated during fiscal 2022 but had not been completed or implemented as of September 30, 2022: Division Rate Action Jurisdiction Operating Income Requested (In thousands) Colorado-Kansas Rate Case Colorado $ 7,554 Colorado-Kansas Rate Case Kansas 7,989 Kentucky/Mid-States Infrastructure Mechanism Virginia (1) 477 Kentucky/Mid-States Infrastructure Mechanism Kentucky (2) 1,904 Mid-Tex Formula Rate Mechanism Mid-Tex Cities (3) 92,615 Mississippi Infrastructure Mechanism Mississippi (4) 10,006 Mississippi Formula Rate Mechanism Mississippi (4) 15,700 West Texas Formula Rate Mechanism West Texas Cities (5) 8,208 $ 144,453 (1) On August 12, 2022, the State Corporation Commission of Virginia approved a rate increase of $0.5 million effective October 1, 2022.

Rate Action Annual Increase (Decrease) in Operating Income EDIT Impact Annual Increase (Decrease) in Operating Income Excluding EDIT (In thousands) 2023 Filings: Annual formula rate mechanisms $ 258,824 $ (1,099) $ 257,725 Rate case filings 2,940 6,791 9,731 Other ratemaking activity 1,320 — 1,320 Total 2023 Filings $ 263,084 $ 5,692 $ 268,776 2022 Filings: Annual formula rate mechanisms $ 169,354 $ 33,249 $ 202,603 Rate case filings 5,938 7,379 13,317 Other ratemaking activity (370) — (370) Total 2022 Filings $ 174,922 $ 40,628 $ 215,550 2021 Filings: Annual formula rate mechanisms $ 181,459 $ 39,306 $ 220,765 Rate case filings 5,119 1,168 6,287 Other ratemaking activity (877) — (877) Total 2021 Filings $ 185,701 $ 40,474 $ 226,175 The following ratemaking efforts seeking $264.6 million in annual operating income were initiated during fiscal 2023 but had not been completed or implemented as of September 30, 2023: 8 Table of Contents Division Rate Action Jurisdiction Operating Income Requested (In thousands) Atmos Pipeline - Texas Rate Case Texas (1) $ 107,417 Colorado-Kansas Infrastructure Mechanism Kansas (2) 1,755 Kentucky/Mid-States Infrastructure Mechanism Virginia (3) 672 Kentucky/Mid-States Infrastructure Mechanism Kentucky (4) 3,424 Kentucky/Mid-States Rate Case Virginia 2,752 Mid-Tex Formula Rate Mechanism Mid-Tex Cities (5) 113,768 Mississippi Infrastructure Mechanism Mississippi 10,969 Mississippi Formula Rate Mechanism Mississippi 13,793 West Texas Formula Rate Mechanism West Texas Cities (6) 10,085 $ 264,635 (1) On October 24, 2023, APT and the intervening parties in its general rate case filed a Joint Notice of Settlement and Proposed Order.

(5) The Mid-Tex rate base represents a “system-wide,” or 100 percent, of the Mid-Tex Division’s rate base. (6) The Mid-Tex Cities approved the Formula Rate Mechanism filing with rates effective October 1, 2022, which included a rate base of $5,235.0 million, an authorized return of 7.28%, a debt/equity ratio of 42/58 and an authorized ROE of 9.80%.

(7) The Mid-Tex Cities approved the Formula Rate Mechanism filing with rates effective October 1, 2023, which included a rate base of $6.1 billion, an authorized return of 7.35%, a debt/equity ratio of 42/58 and an authorized ROE of 9.80%. (8) The West Texas Cities includes all West Texas Division cities except Amarillo, Lubbock, Dalhart and Channing (ALDC).

New rates were implemented on October 1, 2022. (4) The Mississippi Public Service Commission (MPSC) approved an increase in operating income of $8.6 million for the SIR filing.

(4) On September 29, 2023, the Kentucky Public Service Commission approved a rate increase of $2.9 million effective October 1, 2023. (5) The Mid-Tex Cities approved a rate increase of $98.6 million. New rates were implemented on October 1, 2023. (6) The West Texas Cities approved a rate increase of $8.6 million. New rates were implemented on October 1, 2023.

Removed

(7) The Mississippi Public Service Commission approved a settlement at its meeting on October 4, 2022, which included a rate base of $915.6 million and an authorized return of 7.53%. New rates were implemented November 1, 2022. (8) The West Texas Cities includes all West Texas Division cities except Amarillo, Lubbock, Dalhart and Channing (ALDC).

Added

(5) On October 24, 2023, APT and the intervening parties in its general rate case filed a Joint Notice of Settlement and Proposed Order. The settlement proposes a rate base of $4.3 billion, an authorized return of 8.49%, a debt/equity ratio of 40/60 and an authorized ROE of 11.45%.

Removed

(2) On August 12, 2022, the Kentucky Public Service Commission approved a rate increase of $1.9 million effective October 2, 2022, subject to refund. (3) The Mid-Tex Cities approved a rate increase of $81.4 million, which includes $(0.4) million related to the return of excess deferred income taxes that will be offset by lower income tax expense.

Added

We anticipate the settlement agreement will be on the RRC's agenda for its December 13, 2023 meeting. (6) The Mid-Tex rate base represents a “system-wide,” or 100 percent, of the Mid-Tex Division’s rate base.

Removed

The MPSC also approved an increase in operating income of $12.2 million for the SRF filing, which includes $0.8 million related to the refund of excess deferred income taxes that will be offset by lower income tax expense. New rates for both filings were implemented November 1, 2022. (5) The West Texas Cities approved a rate increase of $7.3 million.

Added

We anticipate the settlement agreement will be on the RRC's agenda for its December 13, 2023 meeting. If approved, the settlement would result in a $27.0 million increase in annual operating income, exclusive of the impact of the cessation of $36.9 million in excess deferred income tax refunds, which are substantially offset by a corresponding increase in income taxes.

Removed

(4) The rate increases for our Texas GRIP filings were approved based on the effective date herein; however, the new rates were implemented beginning September 1, 2020. Rate Case Filings A rate case is a formal request from Atmos Energy to a regulatory authority to increase rates that are charged to customers.

Added

New rates are anticipated to be implemented on January 1, 2024. (2) The Kansas Corporation Commission approved the GSRS filing on November 2, 2023, with rates effective November 2, 2023. (3) On September 11, 2023, the State Corporation Commission of Virginia approved a rate increase of $0.6 million effective October 1, 2023.

Removed

There are, however, some rulemaking proceedings that have not yet been finalized, including those relating to capital and margin rules for (non–cleared) swaps. We do not expect these rules to directly impact our business practices or collateral requirements.

Removed

However, depending on the substance of these final rules, in addition to certain international regulatory requirements still under development that are similar to Dodd–Frank, our swap counterparties could be subject to additional and potentially significant capitalization requirements. These regulations could motivate counterparties to increase our collateral requirements or cash postings.

Removed

The physical, mental and financial health of our employees and their families is a top priority for the Company, which is why we have a strong, competitive benefits program to help employees and their families manage and protect their health, wealth and time.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

18 edited+4 added−7 removed61 unchanged

2022 filing

2023 filing

Biggest changeEven though we have insurance coverage in place for many of these cyber-related risks, if such an attack or act of terrorism were to occur, our operations and financial results could be adversely affected to the extent not fully covered by such insurance coverage. 16 Table of Contents Compliance with and changes in cybersecurity requirements have a cost and operational impact on our business, and failure to comply with such laws and regulations could adversely impact our reputation, results of operations, financial condition and/or cash flows.

If a substantial disruption to or reduction in interstate natural gas pipelines’ transmission and storage capacity occurred due to operational failures or disruptions, legislative or regulatory actions, hurricanes, tornadoes, floods, extreme cold weather, terrorist or cyber-attacks or acts of war, our operations or financial results could be adversely affected. 15 Table of Contents Our operations are subject to increased competition.

If a substantial disruption to or reduction in interstate natural gas pipelines’ transmission and storage capacity occurred due to operational failures or disruptions, legislative or regulatory actions, hurricanes, tornadoes, floods, extreme cold weather, terrorist or cyber-attacks or acts of war, our operations or financial results could be adversely affected. Our operations are subject to increased competition.

Our operations are capital-intensive. We must make significant capital expenditures on a long-term basis to modernize our distribution and transmission system and to comply with the safety rules and regulations issued by the regulatory authorities responsible for the service areas we operate. In addition, we must continually build new capacity to serve the growing needs of the communities we serve.

We must make significant capital expenditures on a long-term basis to modernize our distribution and transmission system and to comply with the safety rules and regulations issued by the regulatory authorities responsible for the service areas we operate. In addition, we must continually build new capacity to serve the growing needs of the communities we serve.

FERC has adopted rules designed to prevent market power abuse and market manipulation and to promote compliance with FERC’s other rules, policies and orders by companies engaged in the sale, purchase, transportation or storage of natural 14 Table of Contents gas in interstate commerce. These rules carry increased penalties for violations.

FERC has adopted rules designed to prevent market power abuse and market manipulation and to promote compliance with FERC’s other rules, policies and orders by companies engaged in the sale, purchase, transportation or storage of natural gas in interstate commerce. These rules carry increased penalties for violations.

Any attack on such systems that would 16 Table of Contents result in the unauthorized release of customer, employee or other confidential or sensitive data could have a material adverse effect on our business reputation, increase our costs and expose us to additional material legal claims and liability.

Any attack on such systems that would result in the unauthorized release of customer, employee or other confidential or sensitive data could have a material adverse effect on our business reputation, increase our costs and expose us to additional material legal claims and liability.

Although we have taken steps to structure current and future transactions to comply with applicable current FERC regulations, changes in FERC regulations or their interpretation by FERC or additional regulations issued by FERC in the future could also adversely affect our business, financial condition or financial results.

Although we have taken steps to structure current and future transactions to comply with applicable current FERC regulations, changes in FERC regulations or their 14 Table of Contents interpretation by FERC or additional regulations issued by FERC in the future could also adversely affect our business, financial condition or financial results.

The magnitude of these expenditures may be affected by a number of factors, including new regulations, the general state of the economy and weather. 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.

The magnitude of these expenditures may be affected by a number of factors, including new policy and regulations, and the general state of the economy. 17 Table of Contents 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.

Six of the eight states in which we operate have passed legislation to block attempts by local governments to limit the types of energy available to customers. However, federal, regional and/or state legislative and/or regulatory initiatives may attempt to control or limit the causes of climate change, including greenhouse gas emissions, such as carbon dioxide and methane.

Six of the eight states in which we operate have passed legislation to prevent local governments from limiting the types of energy available to customers. However, federal, regional and/or state legislative and/or regulatory initiatives may attempt to control or limit the causes of climate change, including greenhouse gas emissions, such as carbon dioxide and methane.

The operations and financial results of the Company could be adversely impacted as a result of climate change. As climate change occurs, our businesses could be adversely impacted. To the extent climate change results in temperatures that differ materially from temperatures we are currently experiencing, financial results could be adversely affected through lower gas volumes and revenues.

The operations and financial results of the Company could be adversely impacted as a result of climate change. As climate change occurs, our businesses could be adversely impacted. To the extent climate change results in materially increasing temperatures, financial results could be adversely affected through lower gas volumes and revenues.

While we believe we can meet our capital requirements from our operations and the sources of financing available to us, we can provide no assurance that we will continue to be able to do so in the future, especially if the market price of natural gas increases significantly.

Incidents of COVID-19 or any other future pandemic in our workforce could challenge the availability of our workforce which could threaten the continuity of our business operations. Natural disasters, terrorist activities or other significant events could adversely affect our operations or financial results. Natural disasters are always a threat to our assets and operations.

Incidents that impact the health and availability of our workforce could threaten the continuity of our business operations. Natural disasters, terrorist activities or other significant events could adversely affect our operations or financial results. Natural disasters are always a threat to our assets and operations.

Our pipeline and storage operations historically have faced limited competition from other existing intrastate pipelines and gas marketers seeking to provide or arrange transportation, storage and other services for customers. However, in the last few years, several new pipelines have been completed, which has increased the level of competition in this segment of our business.

Our pipeline and storage operations historically have faced limited competition from other existing intrastate pipelines and gas marketers seeking to provide or arrange transportation, storage and other services for customers. The completion of new pipelines in our service area may increase the competition in this segment of our business.

To the extent we would be unable to recover those costs, or if higher rates resulting from our recovery of such costs would result in reduced demand for our services, our future business, financial condition or financial results could be adversely impacted. 17 Table of Contents Financial, Economic and Market Risks Our growth in the future may be limited by the nature of our business, which requires extensive capital spending.

In residential and commercial customer markets, our distribution operations compete with other energy products, such as electricity and propane. Our primary product competition is with electricity for heating, water heating and cooking. Increases in the price of natural gas could negatively impact our competitive position by decreasing the price benefits of natural gas to the consumer.

This could adversely impact our business if our customer growth slows or if our customers further conserve their use of gas, resulting in reduced gas purchases and customer billings.

If customer 15 Table of Contents growth slows or existing customers choose to conserve their use of gas or choose another energy product, reduced gas purchases and customer billings could adversely impact our business.

Increases in purchased gas costs also slow our natural gas distribution collections as customers are more likely to delay the payment of their gas bills, leading to higher than normal accounts receivable.

Increases in purchased gas costs also slow our natural gas distribution collections as customers may delay the payment of their gas bills, leading to higher than normal accounts receivable. This could result in higher short-term debt levels, greater collection efforts and increased bad debt expense.

As cyber-attacks are becoming more sophisticated, U.S. government warnings have indicated that critical infrastructure assets, including pipeline infrastructure, may be specifically targeted by certain groups. In 2021, the Transportation Security Administration (TSA) announced two new security directives in response to a ransomware attack on the Colonial Pipeline that occurred earlier in the year.

As cyber-attacks are becoming more sophisticated, U.S. government warnings have indicated that critical infrastructure assets, including pipeline infrastructure, may be specifically targeted by certain groups. In recent years, the U.S. government has issued directives that require critical pipeline owners to comply with mandatory reporting measures, designate a cybersecurity coordinator, provide vulnerability assessments and ensure compliance with certain cybersecurity requirements.

The costs of providing a cash-balance pension plan to eligible full-time employees prior to 2011 and postretirement health care benefits to eligible full-time employees and related funding requirements could be influenced by changes in the market value of the assets funding our pension and postretirement health care plans.

Costs of providing benefits and related- funding requirements of these plans are subject to changes in the market value of the assets that fund the plans.

Removed

Compliance with and changes in cybersecurity requirements have a cost and operational impact on our business, and failure to comply with such laws and regulations could adversely impact our reputation, results of operations, financial condition and/or cash flows.

Added

Financial, Economic and Market Risks Our growth in the future may be limited by the nature of our business, which requires extensive capital spending. Our operations are capital-intensive.

Removed

These directives require critical pipeline owners to comply with mandatory reporting measures, designate a cybersecurity coordinator, provide vulnerability assessments, and ensure compliance with certain cybersecurity requirements.

Added

Our pension and other postretirement benefit plans are subject to investment and interest rate risk that could negatively impact our financial condition. We have pension and other postretirement benefit plans that provide benefits to many of our employees and retirees.

Removed

This could result in higher short-term debt levels, greater collection efforts and increased bad debt expense. 18 Table of Contents The costs of providing health care benefits, pension and postretirement health care benefits and related funding requirements may increase substantially. We provide health care benefits, a cash-balance pension plan and postretirement health care benefits to eligible full-time employees.

Added

The funded status of the plans and the related costs reflected in the Company’s financial statements are affected by various factors, which are subject to an inherent degree of uncertainty, including economic conditions, financial market performance, interest rates, life expectancies and demographics.

Removed

The costs of providing health care benefits to our employees could significantly increase over time due to rapidly increasing health care inflation, and any future legislative changes related to the provision of health care benefits. The impact of additional costs which are likely to be passed on to the Company is difficult to measure at this time.

Added

Poor investment returns or lower interest rates may necessitate accelerated funding of the plans to meet minimum federal government requirements, which could have an adverse impact on the Company’s financial condition and results of operations.

Removed

Any significant declines in the value of these investments due to sustained declines in equity markets or a reduction in bond yields could increase the costs of our pension and postretirement health care plans and related funding requirements in the future.

Removed

Further, our costs of providing such benefits and related funding requirements are also subject to a number of factors, including (i) changing demographics, including longer life expectancy of beneficiaries and an expected increase in the number of eligible former employees over the next five to ten years; (ii) various actuarial calculations and assumptions which may differ materially from actual results due primarily to changing market and economic conditions, including changes in interest rates, and higher or lower withdrawal rates; and (iii) future government regulation.

Removed

The costs to the Company of providing these benefits and related funding requirements could also increase materially in the future, should there be a material reduction in the amount of the recovery of these costs through our rates or should significant delays develop in the timing of the recovery of such costs, which could adversely affect our financial results.

Item 2. Properties

Properties — owned and leased real estate

5 edited+1 added−1 removed0 unchanged

2022 filing

2023 filing

Biggest changeThe following table summarizes certain information regarding our underground gas storage facilities at September 30, 2022: State Usable Capacity (Mcf) Cushion Gas (Mcf) (1) Total Capacity (Mcf) Maximum Daily Delivery Capability (Mcf) Distribution Segment Kentucky 7,956,991 9,562,283 17,519,274 146,660 Kansas 3,239,000 2,300,000 5,539,000 32,000 Mississippi 1,907,571 2,442,917 4,350,488 29,136 Total 13,103,562 14,305,200 27,408,762 207,796 Pipeline and Storage Segment Texas 46,083,549 15,878,025 61,961,574 1,710,000 Louisiana 411,040 256,900 667,940 56,000 Total 46,494,589 16,134,925 62,629,514 1,766,000 Total 59,598,151 30,440,125 90,038,276 1,973,796 (1) Cushion gas represents the volume of gas that must be retained in a facility to maintain reservoir pressure. 19 Table of Contents Additionally, we contract for storage service in underground storage facilities on many of the interstate and intrastate pipelines serving us to supplement our proprietary storage capacity.

Biggest changeThe following table summarizes certain information regarding our underground gas storage facilities at September 30, 2023: State Working Capacity (Mcf) Base Gas (Mcf) (1) Total Capacity (Mcf) Maximum Daily Delivery Capability (Mcf) Distribution Segment Kentucky 7,956,991 9,562,283 17,519,274 146,660 Kansas 3,239,000 2,300,000 5,539,000 32,000 Mississippi 1,907,571 2,442,917 4,350,488 29,136 Total 13,103,562 14,305,200 27,408,762 207,796 Pipeline and Storage Segment Texas 53,083,549 19,678,025 72,761,574 2,460,000 Louisiana 411,040 256,900 667,940 56,000 Total 53,494,589 19,934,925 73,429,514 2,516,000 Total 66,598,151 34,240,125 100,838,276 2,723,796 (1) Base gas represents the volume of gas that must be retained in a facility to maintain reservoir pressure.

Unless otherwise noted, MDWQ amounts represent the MDWQ amounts as of November 1, which is the beginning of the winter heating season.

Unless otherwise noted, MDWQ amounts represent the MDWQ amounts as of November 1, which is the beginning of the winter heating season. 19 Table of Contents

The following table summarizes our contracted storage capacity at September 30, 2022: Segment Division/Company Maximum Storage Quantity (MMBtu) Maximum Daily Withdrawal Quantity (MDWQ) (1) Distribution Segment Colorado-Kansas Division 6,343,728 147,965 Kentucky/Mid-States Division 8,175,103 226,320 Louisiana Division 2,594,875 177,765 Mid-Tex Division 6,000,000 230,000 Mississippi Division 5,299,536 202,764 West Texas Division 5,000,000 161,000 Total 33,413,242 1,145,814 Pipeline and Storage Segment Trans Louisiana Gas Pipeline, Inc. 1,000,000 47,500 Total Contracted Storage Capacity 34,413,242 1,193,314 (1) Maximum daily withdrawal quantity (MDWQ) amounts will fluctuate depending upon the season and the month.

The following table summarizes our contracted storage capacity at September 30, 2023: Segment Division/Company Maximum Storage Quantity (MMBtu) Maximum Daily Withdrawal Quantity (Mcf) (1) Distribution Segment Colorado-Kansas Division 6,343,728 147,692 Kentucky/Mid-States Division 8,175,103 226,320 Louisiana Division 2,594,875 177,765 Mid-Tex Division 5,500,000 210,000 Mississippi Division 5,799,536 222,764 West Texas Division 5,000,000 161,000 Total 33,413,242 1,145,541 Pipeline and Storage Segment Trans Louisiana Gas Pipeline, Inc. 1,000,000 47,500 Total Contracted Storage Capacity 34,413,242 1,193,041 (1) Maximum daily withdrawal quantity (MDWQ) amounts will fluctuate depending upon the season and the month.

Storage Assets We own underground gas storage facilities in several states to supplement the supply of natural gas in periods of peak demand.

Through our pipeline and storage segment we owned 5,645 miles of gas transmission lines. Storage Assets We own underground gas storage facilities in several states to supplement the supply of natural gas in periods of peak demand.

ITEM 2. Properties. Distribution, transmission and related assets At September 30, 2022, in our distribution segment, we owned an aggregate of 73,243 miles of underground distribution and transmission mains throughout our distribution systems. These mains are located on easements or rights-of-way.

ITEM 2. Properties. Distribution, transmission and related assets In our distribution segment, we owned an aggregate of 73,689 miles of underground distribution and transmission mains throughout our distribution systems. These mains are located on easements or rights-of-way. We maintain our mains through a program of continuous inspection and repair and believe that our system of mains is in good condition.

Removed

We maintain our mains through a program of continuous inspection and repair and believe that our system of mains is in good condition. Through our pipeline and storage segment we also owned 5,652 miles of gas transmission lines.

Added

Additionally, we contract for storage service in underground storage facilities on many of the interstate and intrastate pipelines serving us to supplement our proprietary storage capacity.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+1 added−0 removed0 unchanged

2022 filing

2023 filing

Biggest changeComparison of Five-Year Cumulative Total Return among Atmos Energy Corporation, S&P 500 Index and S&P 500 Utilities Industry Index Cumulative Total Return 9/30/2017 9/30/2018 9/30/2019 9/30/2020 9/30/2021 9/30/2022 Atmos Energy Corporation 100.00 114.53 141.78 121.61 115.14 136.38 S&P 500 Stock Index 100.00 117.91 122.93 141.55 184.02 155.55 S&P 500 Utilities Stock Index 100.00 102.93 130.82 124.32 138.01 145.71 The following table sets forth the number of securities authorized for issuance under our equity compensation plans at September 30, 2022. 21 Table of Contents Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (a) (b) (c) Equity compensation plans approved by security holders: 1998 Long-Term Incentive Plan 696,744 (1) $ — 874,481 Total equity compensation plans approved by security holders 696,744 — 874,481 Equity compensation plans not approved by security holders — — — Total 696,744 $ — 874,481 (1) Comprised of a total of 301,403 time-lapse restricted stock units, 195,184 director share units and 200,157 performance-based restricted stock units at the target level of performance granted under our 1998 Long-Term Incentive Plan.

Biggest changeNumber of securities to be issued upon exercise of outstanding options, warrants and rights Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (a) (b) (c) Equity compensation plans approved by security holders: 1998 Long-Term Incentive Plan 754,445 (1) $ — 631,409 Total equity compensation plans approved by security holders 754,445 — 631,409 Equity compensation plans not approved by security holders — — — Total 754,445 $ — 631,409 (1) Comprised of a total of 298,748 time-lapse restricted stock units, 206,140 director share units and 249,557 performance-based restricted stock units at the target level of performance granted under our 1998 Long-Term Incentive Plan.

We sold no securities during fiscal 2022 that were not registered under the Securities Act of 1933, as amended. 20 Table of Contents Performance Graph The performance graph and table below compares the yearly percentage change in our total return to shareholders for the last five fiscal years with the total return of the S&P 500 Stock Index (S&P 500) and the total return of the S&P 500 Utilities Industry Index.

We sold no securities during fiscal 2023 that were not registered under the Securities Act of 1933, as amended. 20 Table of Contents Performance Graph The performance graph and table below compares the yearly percentage change in our total return to shareholders for the last five fiscal years with the total return of the S&P 500 Stock Index (S&P 500) and the total return of the S&P 500 Utilities Industry Index.

ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Our stock trades on the New York Stock Exchange under the trading symbol “ATO.” The dividends paid per share of our common stock for fiscal 2022 and 2021 are listed below.

The graph and table below assume that $100.00 was invested on September 30, 2017 in our common stock, the S&P 500 and the S&P 500 Utilities Industry Index ax, as well as a reinvestment of dividends paid on such investments throughout the period.

The graph and table below assume that $100.00 was invested on September 30, 2018 in our common stock, the S&P 500 and the S&P 500 Utilities Industry Index, as well as a reinvestment of dividends paid on such investments throughout the period.

The Board of Directors typically declares dividends in the same fiscal quarter in which they are paid. As of October 31, 2022, there were 10,052 holders of record of our common stock. Future payments of dividends, and the amounts of these dividends, will depend on our financial condition, results of operations, capital requirements and other factors.

The Board of Directors typically declares dividends in the same fiscal quarter in which they are paid. As of October 31, 2023, there were 9,543 holders of record of our common stock. Future payments of dividends, and the amounts of these dividends, will depend on our financial condition, results of operations, capital requirements and other factors.

Fiscal 2022 Fiscal 2021 Quarter ended: December 31 $ 0.680 $ 0.625 March 31 0.680 0.625 June 30 0.680 0.625 September 30 0.680 0.625 $ 2.72 $ 2.50 Dividends are payable at the discretion of our Board of Directors out of legally available funds.

Fiscal 2023 Fiscal 2022 Quarter ended: December 31 $ 0.74 $ 0.68 March 31 0.74 0.68 June 30 0.74 0.68 September 30 0.74 0.68 $ 2.96 $ 2.72 Dividends are payable at the discretion of our Board of Directors out of legally available funds.

Added

Comparison of Five-Year Cumulative Total Return among Atmos Energy Corporation, S&P 500 Index and S&P 500 Utilities Industry Index Cumulative Total Return 9/30/2018 9/30/2019 9/30/2020 9/30/2021 9/30/2022 9/30/2023 Atmos Energy Corporation 100.00 123.80 106.18 100.53 119.08 127.01 S&P 500 Stock Index 100.00 104.25 120.05 156.07 131.92 160.44 S&P 500 Utilities Stock Index 100.00 127.10 120.79 134.09 141.56 131.63 21 Table of Contents The following table sets forth the number of securities authorized for issuance under our equity compensation plans at September 30, 2023.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

59 edited+11 added−19 removed54 unchanged

2022 filing

2023 filing

Biggest changeFor the Fiscal Year Ended September 30 2022 2021 2020 2022 vs. 2021 2021 vs. 2020 (In thousands, unless otherwise noted) Mid-Tex / Affiliate transportation revenue $ 546,038 $ 497,730 $ 474,077 $ 48,308 $ 23,653 Third-party transportation revenue 136,907 127,874 127,444 9,033 430 Other revenue 10,715 11,743 7,818 (1,028) 3,925 Total operating revenues 693,660 637,347 609,339 56,313 28,008 Total purchased gas cost (1,583) 1,582 1,548 (3,165) 34 Operating expenses 378,806 349,281 311,935 29,525 37,346 Operating income 316,437 286,484 295,856 29,953 (9,372) Other non-operating income 26,791 18,549 8,436 8,242 10,113 Interest charges 52,890 46,925 44,840 5,965 2,085 Income before income taxes 290,338 258,108 259,452 32,230 (1,344) Income tax expense 37,917 38,407 61,168 (490) (22,761) Non-cash income tax benefit (1) — — (7,495) — 7,495 Net income $ 252,421 $ 219,701 $ 205,779 $ 32,720 $ 13,922 Gross pipeline transportation volumes — MMcf 776,608 799,724 822,499 (23,116) (22,775) Consolidated pipeline transportation volumes — MMcf 580,488 585,857 621,371 (5,369) (35,514) (1) See Note 14 to the consolidated financial statements for further information.

Biggest changeFor the Fiscal Year Ended September 30 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 (In thousands, unless otherwise noted) Mid-Tex / Affiliate transportation revenue $ 621,987 $ 546,038 $ 497,730 $ 75,949 $ 48,308 Third-party transportation revenue 154,018 136,907 127,874 17,111 9,033 Other revenue 9,169 10,715 11,743 (1,546) (1,028) Total operating revenues 785,174 693,660 637,347 91,514 56,313 Total purchased gas cost (1,220) (1,583) 1,582 363 (3,165) Operating expenses 411,873 378,806 349,281 33,067 29,525 Operating income 374,521 316,437 286,484 58,084 29,953 Other non-operating income 44,787 26,791 18,549 17,996 8,242 Interest charges 60,096 52,890 46,925 7,206 5,965 Income before income taxes 359,212 290,338 258,108 68,874 32,230 Income tax expense 53,747 37,917 38,407 15,830 (490) Net income $ 305,465 $ 252,421 $ 219,701 $ 53,044 $ 32,720 Gross pipeline transportation volumes — MMcf 834,847 776,608 799,724 58,239 (23,116) Consolidated pipeline transportation volumes — MMcf 635,508 580,488 585,857 55,020 (5,369) Fiscal year ended September 30, 2023 compared with fiscal year ended September 30, 2022 Operating income for our pipeline and storage segment increased 18.4 percent.

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, 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; increased dependence on technology that may hinder the Company's business if such technologies fail; 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 22 Table of Contents greenhouse gas emissions or other legislation or regulations intended to address climate change; 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.

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, 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; increased dependence on technology that may hinder the Company's business if such technologies fail; 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 22 Table of Contents or Company information; the impact of new cybersecurity compliance requirements; adverse weather conditions; the impact of greenhouse gas emissions or other legislation or regulations intended to address climate change; 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.

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 services. As part of its pipeline operations, APT owns and operates five underground storage facilities in 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. As part of its pipeline operations, APT owns and operates five underground storage facilities in Texas.

We also completed a public offering of $200 million of 2.625% senior notes due 2029 that were used to repay our $200 million floating-rate term loan. Additionally, during the year ended September 30, 2022, we settled 7,907,833 shares that had been sold on a forward basis for net proceeds of $776.8 million.

We also completed a public offering of $200 million of 2.625% senior notes due September 2029 that were used to repay our $200 million floating-rate term loan. Additionally, during the year ended September 30, 2022, we settled 7,907,833 shares that had been sold on a forward basis for net proceeds of $776.8 million.

As of September 30, 2022, our outlook and current debt ratings, which are all considered investment grade are as follows: S&P Moody’s Senior unsecured long-term debt A- A1 Short-term debt A-2 P-1 Outlook Negative Stable 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.

As of September 30, 2023, our outlook and current debt ratings, which are all considered investment grade are as follows: S&P Moody’s Senior unsecured long-term debt A- A1 Short-term debt A-2 P-1 Outlook Stable Stable 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 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 81 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.

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 80 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.

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 September 30, 2022.

(6) Represents expected contributions to our defined benefit and postretirement benefit plans, which are discussed in Note 10 to the consolidated financial statements. (7) Represents liabilities associated with uncertain tax positions claimed or expected to be claimed on tax returns. The amount does not include interest and penalties that may be applied to these positions.

(6) Represents expected contributions to our defined benefit and postretirement benefit plans, which are discussed in Note 11 to the consolidated financial statements. (7) Represents liabilities associated with uncertain tax positions claimed or expected to be claimed on tax returns. The amount does not include interest and penalties that may be applied to these positions.

See Note 14 to the consolidated financial statements for further details. We 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.

See Note 15 to the consolidated financial statements for further details. We 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.

The following table shows our operating income by distribution division, in order of total rate base, for the fiscal years ended September 30, 2022, 2021 and 2020. The presentation of our distribution operating income is included for financial reporting purposes and may not be appropriate for ratemaking purposes.

The following table shows our operating income by distribution division, in order of total rate base, for the fiscal years ended September 30, 2023, 2022 and 2021. The presentation of our distribution operating income is included for financial reporting purposes and may not be appropriate for ratemaking purposes.

Additionally, the Inflation 29 Table of Contents Reduction Act imposes an excise tax of 1% tax on the fair market value of net stock repurchases made after December 31, 2022. The impact of this provision will be dependent on the extent of share repurchases made in future periods.

Additionally, the Inflation Reduction Act 28 Table of Contents imposes an excise tax of 1% tax on the fair market value of net stock repurchases made after December 31, 2022. The impact of this provision will be dependent on the extent of share repurchases made in future periods.

The fiscal year ended September 30, 2021 compared with fiscal year ended September 30, 2020 for our pipeline and storage segment is described in Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the fiscal year ended September 30, 2021.

The fiscal year ended September 30, 2022 compared with fiscal year ended September 30, 2021 for our pipeline and storage segment is described in Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the fiscal year ended September 30, 2022.

(2) Excluding the $2.2 billion of incremental financing issued to pay for the purchased gas costs incurred during Winter Storm Uri, our equity capitalization ratio would have been 61.3% and 60.6% at September 30, 2022 and 2021. Cash Flows Our internally generated funds may change in the future due to a number of factors, some of which we cannot control.

(2) Excluding the $2.2 billion of incremental financing issued to pay for the purchased gas costs incurred during Winter Storm Uri, our equity capitalization ratio would have been 61.3% at September 30, 2022. Cash Flows Our internally generated funds may change in the future due to a number of factors, some of which we cannot control.

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.

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 25 Table of Contents these taxes included in revenues is influenced by the cost of gas and the level of gas sales volumes.

S ee Note 6 to the consolidated financial statements. (5) Represents liabilities for natural gas commodity financial instruments that were valued as of September 30, 2022. The ultimate settlement amounts of these remaining liabilities are unknown because they are subject to continuing market risk until the financial instruments are settled.

S ee Note 7 to the consolidated financial statements. (5) Represents liabilities for natural gas commodity financial instruments that were valued as of September 30, 2023. The ultimate settlement amounts of these remaining liabilities are unknown because they are subject to continuing market risk until the financial instruments are settled.

Planned Debt Issuance Date Amount Hedged Effective Interest Rate (In thousands) Fiscal 2024 $ 450,000 1.80 % Fiscal 2025 600,000 1.75 % Fiscal 2026 300,000 2.16 % $ 1,350,000 The liquidity provided by these sources is expected to be sufficient to fund the Company's working capital needs and capital expenditures program.

Planned Debt Issuance Date Amount Hedged Effective Interest Rate (In thousands) Fiscal 2025 $ 600,000 1.75 % Fiscal 2026 300,000 2.16 % $ 900,000 The liquidity provided by these sources is expected to be sufficient to fund the Company's working capital needs and capital expenditures program.

We also have an at-the-market (ATM) equity sales program that allows us to issue and sell shares of our common stock up to an aggregate offering price of $1.0 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 June 29, 2024.

During fiscal 2022, we completed regulatory proceedings in our distribution segment resulting in a $96.2 million increase in annual operating income. Excluding the impact of the refund of excess deferred income taxes resulting from previously enacted tax reform legislation, our total fiscal 2022 annualized rate outcomes in our distribution segment were $136.8 million.

During fiscal 2023, we completed regulatory proceedings in our distribution segment resulting in a $178.2 million increase in annual operating income. Excluding the impact of the refund of excess deferred income taxes resulting from previously enacted tax reform legislation, our total fiscal 2023 annualized rate outcomes in our distribution segment were $183.8 million.

Over the last three fiscal years, approximately 88 percent of our capital spending has been committed to improving the safety and reliability of our system. For the fiscal year ended September 30, 2022, we had $2.4 billion in capital expenditures compared with $2.0 billion for the fiscal year ended September 30, 2021.

Over the last three fiscal years, approximately 87 percent of our capital spending has been committed to improving the safety and reliability of our system. For the fiscal year ended September 30, 2023, we had $2.8 billion in capital expenditures compared with $2.4 billion for the fiscal year ended September 30, 2022.

Our debt covenants are described in Note 7 to the consolidated financial statements. 32 Table of Contents Contractual Obligations and Commercial Commitments The following table provides information about contractual obligations and commercial commitments at September 30, 2022.

Our debt covenants are described in Note 8 to the consolidated financial statements. 31 Table of Contents Contractual Obligations and Commercial Commitments The following table provides information about contractual obligations and commercial commitments at September 30, 2023.

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 regulatory lag to six months or less. 25 Table of Contents During fiscal 2022, we completed approximately $1.6 billion of long-term debt and equity financing.

Capital expenditures for fiscal 2023 were $2.8 billion. 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 regulatory lag to six months or less. During fiscal 2023, we completed approximately $1.6 billion of long-term debt and equity financing.

During the year ended September 30, 2022, we implemented ratemaking regulatory actions which resulted in an increase in annual operating income of $174.9 million. Excluding the impact of the refund of excess deferred income taxes resulting from previously enacted tax reform legislation, our total fiscal 2022 rate outcomes were $215.6 million.

During the year ended September 30, 2023, we implemented ratemaking regulatory actions which resulted in an increase in annual operating income of $263.1 million. Excluding the impact of the refund of excess deferred income taxes resulting from previously enacted tax reform legislation, our total fiscal 2023 rate outcomes were $268.8 million.

Additionally, cash dividends increased due to an 8.7 percent increase in our dividend rate and an increase in shares outstanding. 31 Table of Contents The following table shows the number of shares issued for the fiscal years ended September 30, 2022, 2021 and 2020: For the Fiscal Year Ended September 30 2022 2021 2020 Shares issued: Direct Stock Purchase Plan 68,693 79,921 107,989 Retirement Savings Plan and Trust 72,339 84,265 78,941 1998 Long-Term Incentive Plan (LTIP) 427,929 242,216 254,706 Equity Issuance (1) 7,907,883 6,130,875 6,101,916 Total shares issued 8,476,844 6,537,277 6,543,552 (1) Share amounts do not include shares issued under forward sale agreements until the shares have been settled.

Additionally, cash dividends increased due to an 8.8 percent increase in our dividend rate and an increase in shares outstanding. 30 Table of Contents The following table shows the number of shares issued for the fiscal years ended September 30, 2023, 2022 and 2021: For the Fiscal Year Ended September 30 2023 2022 2021 Shares issued: Direct Stock Purchase Plan 64,871 68,693 79,921 Retirement Savings Plan and Trust 69,716 72,339 84,265 1998 Long-Term Incentive Plan (LTIP) 189,337 427,929 242,216 Equity Issuance (1) 7,272,261 7,907,883 6,130,875 Total shares issued 7,596,185 8,476,844 6,537,277 (1) Share amounts do not include shares issued under forward sale agreements until the shares have been settled.

See Note 7 to the consolidated financial statements for further details. (2) Interest charges were calculated using the effective rate for each debt issuance through the contractual maturity date. (3) Finance lease payments shown above include interest totaling $21.3 million. See Note 6 to the consolidated financial statements. (4) Operating lease payments shown above include interest totaling $36.9 million.

See Note 8 to the consolidated financial statements for further details. (2) Interest charges were calculated using the coupon rate for each debt issuance through the contractual maturity date. (3) Finance lease payments shown above include interest totaling $19.5 million. See Note 7 to the consolidated financial statements. (4) Operating lease payments shown above include interest totaling $47.7 million.

On February 11, 2022, APT made a GRIP filing that covered changes in net property, plant and equipment investment from January 1, 2021 through December 31, 2021 with a requested increase in operating income of $78.8 million. On May 18, 2022, the Texas Railroad Commission approved the Company's GRIP filing.

On February 10, 2023, APT made a GRIP filing that covered changes in net property, plant and equipment investment from January 1, 2022 through December 31, 2022 with a requested increase in operating income of $84.9 million. On May 17, 2023, the Texas Railroad Commission (RRC) approved the Company's GRIP filing.

The following table details our consolidated net income by segment during the last three fiscal years: For the Fiscal Year Ended September 30 2022 2021 2020 (In thousands) Distribution segment $ 521,977 $ 445,862 $ 395,664 Pipeline and storage segment 252,421 219,701 205,779 Net income $ 774,398 $ 665,563 $ 601,443 During fiscal 2022, we recorded net income of $774.4 million, or $5.60 per diluted share, compared to net income of $665.6 million, or $5.12 per diluted share in the prior year.

The following table details our consolidated net income by segment during the last three fiscal years: For the Fiscal Year Ended September 30 2023 2022 2021 (In thousands) Distribution segment $ 580,397 $ 521,977 $ 445,862 Pipeline and storage segment 305,465 252,421 219,701 Net income $ 885,862 $ 774,398 $ 665,563 During fiscal 2023, we recorded net income of $885.9 million, or $6.10 per diluted share, compared to net income of $774.4 million, or $5.60 per diluted share in the prior year.

On September 27, 2022, we settled $500 million of forward starting interest rate swaps associated with a planned debt issuance that was completed on October 3, 2022. The following table summarizes our existing forward starting interest rate swaps as of September 30, 2022.

On September 26, 2023, we settled $700 million of forward starting interest rate swaps associated with a debt issuance that was completed on October 10, 2023. The following table summarizes our existing forward starting interest rate swaps as of September 30, 2023.

The year-over-year increase in net income of $108.8 million largely reflects positive rate outcomes driven by safety and reliability spending and distribution customer growth, partially offset by an increase in employee related costs, increased spending on system maintenance activities and an increase in depreciation expense and property taxes associated with increased capital investments.

The year-over-year increase in net income of $111.5 million largely reflects positive rate outcomes driven by safety and reliability spending, partially offset by increased line locating costs, system maintenance activities and an increase in depreciation expense and property taxes associated with increased capital investments.

Substantially all of our financial instruments are valued using external market quotes and indices. 33 Table of Contents The following table shows the components of the change in fair value of our financial instruments for the fiscal year ended September 30, 2022 (in thousands): Fair value of contracts at September 30, 2021 $ 225,417 Contracts realized/settled (167,683) Fair value of new contracts 2,998 Other changes in value 317,130 Fair value of contracts at September 30, 2022 377,862 Netting of cash collateral — Cash collateral and fair value of contracts at September 30, 2022 $ 377,862 The fair value of our financial instruments at September 30, 2022, is presented below by time period and fair value source: Fair Value of Contracts at September 30, 2022 Maturity in years Source of Fair Value Less than 1 1-3 4-5 Greater than 5 Total Fair Value (In thousands) Prices actively quoted $ 23,207 $ 290,267 $ 64,388 $ — $ 377,862 Prices based on models and other valuation methods — — — — — Total Fair Value $ 23,207 $ 290,267 $ 64,388 $ — $ 377,862 RECENT ACCOUNTING DEVELOPMENTS Recent accounting developments and their impact on our financial position, results of operations and cash flows are described in Note 2 to the consolidated financial statements.

Substantially all of our financial instruments are valued using external market quotes and indices. 32 Table of Contents The following table shows the components of the change in fair value of our financial instruments for the fiscal year ended September 30, 2023 (in thousands): Fair value of contracts at September 30, 2022 $ 377,862 Contracts realized/settled (174,107) Fair value of new contracts 5,379 Other changes in value 161,122 Fair value of contracts at September 30, 2023 370,256 Netting of cash collateral — Cash collateral and fair value of contracts at September 30, 2023 $ 370,256 The fair value of our financial instruments at September 30, 2023, is presented below by time period and fair value source: Fair Value of Contracts at September 30, 2023 Maturity in years Source of Fair Value Less than 1 1-3 4-5 Greater than 5 Total Fair Value (In thousands) Prices actively quoted $ (10,513) $ 380,769 $ — $ — $ 370,256 Prices based on models and other valuation methods — — — — — Total Fair Value $ (10,513) $ 380,769 $ — $ — $ 370,256 RECENT ACCOUNTING DEVELOPMENTS Recent accounting developments and their impact on our financial position, results of operations and cash flows are described in Note 2 to the consolidated financial statements.

The net proceeds were used primarily to support capital spending and for other general corporate purposes. We also received $197.1 million from the settlement of forward starting interest rate swaps related to a debt issuance completed in October 2022. Additionally, cash dividends increased due to an 8.8 percent increase in our dividend rate and an increase in shares outstanding.

At September 30, 2022, we were committed to purchase 55.6 Bcf within one year and 89.1 Bcf within two to three years under indexed contracts. At September 30, 2022, we were committed to purchase 13.2 Bcf within one year under fixed price contracts with a weighted average price of $5.39 per Mcf.

At September 30, 2023, we were committed to purchase 65.5 Bcf within one year and 72.3 Bcf within two to three years under indexed contracts. At September 30, 2023, we were committed to purchase 20.6 Bcf within one year under fixed price contracts with a weighted average price of $2.80 per Mcf.

The primary factors that impact the results of our distribution operations are our ability to earn our authorized rates of return, competitive factors in the energy industry and economic conditions in our service areas.

Distribution Segment The distribution segment is primarily comprised of our regulated natural gas distribution and related sales operations in eight states. The primary factors that impact the results of our distribution operations are our ability to earn our authorized rates of return, competitive factors in the energy industry and economic conditions in our service areas.

At September 30, 2022, approximately $481.7 million of equity is available for issuance under this ATM equity sales program. Additionally, as of September 30, 2022, we had $776.6 million in available proceeds from outstanding forward sale agreements.

At September 30, 2023, $760.5 million of equity is available for issuance under this ATM equity sales program. Additionally, as of September 30, 2023, we had $466.8 million in available proceeds from outstanding forward sale agreements.

During the fiscal year ended September 30, 2022, we received $1.6 billion in net proceeds from the issuance of long-term debt and equity. We completed a public offering of $600 million of 2.85% senior notes due 2052.

Finally, Atmos Energy Kansas Securitization I, LLC, a special-purpose, wholly-owned subsidiary of Atmos Energy, issued $95 million in securitized long-term debt. During the fiscal year ended September 30, 2022, we received $1.6 billion in net proceeds from the issuance of long-term debt and equity. We completed a public offering of $600 million of 2.85% senior notes due February 2052.

For the Fiscal Year Ended September 30 2022 2021 2020 2022 vs. 2021 2021 vs. 2020 (In thousands) Total cash provided by (used in) Operating activities $ 977,584 $ (1,084,251) $ 1,037,999 $ 2,061,835 $ (2,122,250) Investing activities (2,429,958) (1,963,655) (1,925,518) (466,303) (38,137) Financing activities 1,387,205 3,143,821 883,777 (1,756,616) 2,260,044 Change in cash and cash equivalents (65,169) 95,915 (3,742) (161,084) 99,657 Cash and cash equivalents at beginning of period 116,723 20,808 24,550 95,915 (3,742) Cash and cash equivalents at end of period $ 51,554 $ 116,723 $ 20,808 $ (65,169) $ 95,915 Cash flows for the fiscal year ended September 30, 2021 compared with fiscal year ended September 30, 2020 is described in Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the fiscal year ended September 30, 2021.

Cash flows from operating, investing and financing activities for the years ended September 30, 2023, 2022 and 2021 are presented below. 29 Table of Contents For the Fiscal Year Ended September 30 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 (In thousands) Total cash provided by (used in) Operating activities $ 3,459,743 $ 977,584 $ (1,084,251) $ 2,482,159 $ 2,061,835 Investing activities (2,795,280) (2,429,958) (1,963,655) (365,322) (466,303) Financing activities (696,769) 1,387,205 3,143,821 (2,083,974) (1,756,616) Change in cash and cash equivalents and restricted cash and cash equivalents (32,306) (65,169) 95,915 32,863 (161,084) Cash and cash equivalents and restricted cash and cash equivalents at beginning of period 51,554 116,723 20,808 (65,169) 95,915 Cash and cash equivalents and restricted cash and cash equivalents at end of period $ 19,248 $ 51,554 $ 116,723 $ (32,306) $ (65,169) Cash flows for the fiscal year ended September 30, 2022 compared with fiscal year ended September 30, 2021 is described in Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the fiscal year ended September 30, 2022.

Also, the Inflation Reduction Act imposes a methane emissions charge for methane emissions in excess of 25,000 metric tons carbon dioxide equivalent per year. Based on our preliminary evaluation of the regulations, we currently do not anticipate this provision of the Inflation Reduction Act will have a material impact on our financial position, results of operations or cash flows.

Based on our preliminary evaluation of the regulations, we currently do not anticipate this provision of the Inflation Reduction Act will have a material impact on our financial position, results of operations or cash flows.

As of September 30, 2022, we had approximately $3.1 billion in total liquidity, consisting of $51.6 million in cash and cash equivalents, $776.6 million in funds available through equity forward sales agreements and $2,309.4 million in undrawn capacity under our credit facilities.

As of September 30, 2023, our equity capitalization was 61.5 percent. As of September 30, 2023, we had approximately $2.7 billion in total liquidity, consisting of $15.4 million in cash and cash equivalents, $466.8 million in funds available through equity forward sales agreements and $2,252.5 million in undrawn capacity under our credit facilities.

The following table presents our capitalization as of September 30, 2022 and 2021: September 30 2022 2021 (In thousands, except percentages) Short-term debt $ 184,967 1.1 % $ — — % Long-term debt (1) 7,962,104 45.3 % 7,330,657 48.1 % Shareholders’ equity (2) 9,419,091 53.6 % 7,906,889 51.9 % Total capitalization, including short-term debt $ 17,566,162 100.0 % $ 15,237,546 100.0 % (1) Inclusive of our finance leases.

The following table presents our capitalization as of September 30, 2023 and 2022: September 30 2023 2022 (In thousands, except percentages) Short-term debt $ 241,933 1.4 % $ 184,967 1.1 % Long-term debt (1) 6,555,701 37.1 % 7,962,104 45.3 % Shareholders’ equity (2) 10,870,064 61.5 % 9,419,091 53.6 % Total capitalization, including short-term debt $ 17,667,698 100.0 % $ 17,566,162 100.0 % (1) Inclusive of our finance leases, but exclusive of AEK's securitized long-term debt.

For the Fiscal Year Ended September 30 2022 2021 2020 2022 vs. 2021 2021 vs. 2020 (In thousands) Mid-Tex $ 315,644 $ 310,293 $ 236,066 $ 5,351 $ 74,227 Kentucky/Mid-States 84,098 73,259 76,745 10,839 (3,486) Louisiana 73,486 72,388 71,892 1,098 496 West Texas 53,604 51,104 52,493 2,500 (1,389) Mississippi 65,947 65,337 55,938 610 9,399 Colorado-Kansas 26,000 32,778 34,039 (6,778) (1,261) Other (14,234) 13,355 1,070 (27,589) 12,285 Total $ 604,545 $ 618,514 $ 528,243 $ (13,969) $ 90,271 Pipeline and Storage Segment Our pipeline and storage segment consists of the pipeline and storage operations of our Atmos Pipeline–Texas Division (APT) and our natural gas transmission operations in Louisiana.

For the Fiscal Year Ended September 30 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 (In thousands) Mid-Tex $ 345,545 $ 315,644 $ 310,293 $ 29,901 $ 5,351 Kentucky/Mid-States 87,258 84,098 73,259 3,160 10,839 Louisiana 80,942 73,486 72,388 7,456 1,098 West Texas 62,351 53,604 51,104 8,747 2,500 Mississippi 78,517 65,947 65,337 12,570 610 Colorado-Kansas 40,674 26,000 32,778 14,674 (6,778) Other (2,661) (14,234) 13,355 11,573 (27,589) Total $ 692,626 $ 604,545 $ 618,514 $ 88,081 $ (13,969) Pipeline and Storage Segment Our pipeline and storage segment consists of the pipeline and storage operations of our Atmos Pipeline–Texas Division (APT) and our natural gas transmission operations in Louisiana.

Additional drivers for the change in operating income include: • a $70.4 million increase due to rate adjustments from GRIP filings approved in May 2021 and 2022. The increase in rates was driven by increased safety and reliability spending.

Key drivers for the change in operating income include: • an $87.3 million increase due to rate adjustments from GRIP filings approved in May 2022 and 2023. The increase in rates was driven by increased safety and reliability spending. • a $5.2 million net increase in APT's through-system activities primarily associated with increased volumes.

Additionally, we had ratemaking efforts in progress at September 30, 2022, seeking a total increase in annual operating income of $144.5 million. During fiscal year 2022, we refunded $167.8 million in excess deferred tax liabilities to customers.

Additionally, we had ratemaking efforts in progress at September 30, 2023, seeking a total increase in annual operating income of $264.6 million. During fiscal year 2023, we refunded $160.3 million in excess deferred tax liabilities to customers. These refunds also reduced our income tax expense, resulting in an immaterial impact to our fiscal 2023 and 2022 results.

Estimates of delivered sales volumes based on actual tariff information and weather information and estimates of customer consumption and/or behavior Estimates of purchased gas costs related to estimated deliveries Estimates of amounts billed subject to refund 23 Table of Contents Critical Accounting Policy Summary of Policy Factors Influencing Application of the Policy Pension and other postretirement plans Pension and other postretirement plan costs and liabilities are determined on an actuarial basis using a September 30 measurement date and are affected by numerous assumptions and estimates including the market value of plan assets, estimates of the expected return on plan assets, assumed discount rates and current demographic and actuarial mortality data.

Decisions of regulatory authorities Issuance of new regulations or regulatory mechanisms Assessing the probability of the recoverability of deferred costs Continuing to meet the criteria of a cost-based, rate regulated entity for accounting purposes 23 Table of Contents Critical Accounting Policy Summary of Policy Factors Influencing Application of the Policy Pension and other postretirement plans Pension and other postretirement plan costs and liabilities are determined on an actuarial basis using a September 30 measurement date and are affected by numerous assumptions and estimates including the market value of plan assets, estimates of the expected return on plan assets, assumed discount rates and current demographic and actuarial mortality data.

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 with an equity-to-total-capitalization ratio between 50% and 60%, inclusive of long-term and short-term debt.

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.

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. 28 Table of Contents Review of Financial and Operating Results Financial and operational highlights for our pipeline and storage segment for the fiscal years ended September 30, 2022, 2021 and 2020 are presented below.

See "Ratemaking Activity" above for further information. 27 Table of Contents 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.

These factors include regulatory changes, the price for our services, the demand for such products and services, margin requirements resulting from significant changes in commodity prices, operational risks and other factors. 30 Table of Contents Cash flows from operating, investing and financing activities for the years ended September 30, 2022, 2021 and 2020 are presented below.

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. 26 Table of Contents Review of Financial and Operating Results Financial and operational highlights for our distribution segment for the fiscal years ended September 30, 2022, 2021 and 2020 are presented below.

For the Fiscal Year Ended September 30 2022 2021 2020 2022 vs. 2021 2021 vs. 2020 (In thousands, unless otherwise noted) Operating revenues $ 4,035,194 $ 3,241,973 $ 2,626,993 $ 793,221 $ 614,980 Purchased gas cost 2,210,302 1,501,695 1,071,227 708,607 430,468 Operating expenses 1,220,347 1,121,764 1,027,523 98,583 94,241 Operating income 604,545 618,514 528,243 (13,969) 90,271 Other non-operating income (expense) 6,946 (20,694) (1,265) 27,640 (19,429) Interest charges 49,921 36,629 39,634 13,292 (3,005) Income before income taxes 561,570 561,191 487,344 379 73,847 Income tax expense 39,593 115,329 105,147 (75,736) 10,182 Non-cash income tax benefit (1) — — (13,467) — 13,467 Net income $ 521,977 $ 445,862 $ 395,664 $ 76,115 $ 50,198 Consolidated distribution sales volumes — MMcf 292,266 308,833 291,650 (16,567) 17,183 Consolidated distribution transportation volumes — MMcf 152,709 152,513 147,387 196 5,126 Total consolidated distribution throughput — MMcf 444,975 461,346 439,037 (16,371) 22,309 Consolidated distribution average cost of gas per Mcf sold $ 7.56 $ 4.86 $ 3.67 $ 2.70 $ 1.19 (1) See Note 14 to the consolidated financial statements for further information.

For the Fiscal Year Ended September 30 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 (In thousands, unless otherwise noted) Operating revenues $ 4,099,690 $ 4,035,194 $ 3,241,973 $ 64,496 $ 793,221 Purchased gas cost 2,061,920 2,210,302 1,501,695 (148,382) 708,607 Operating expenses 1,345,144 1,220,347 1,121,764 124,797 98,583 Operating income 692,626 604,545 618,514 88,081 (13,969) Other non-operating income (expense) 24,988 6,946 (20,694) 18,042 27,640 Interest charges 77,185 49,921 36,629 27,264 13,292 Income before income taxes 640,429 561,570 561,191 78,859 379 Income tax expense 60,032 39,593 115,329 20,439 (75,736) Net income $ 580,397 $ 521,977 $ 445,862 $ 58,420 $ 76,115 Consolidated distribution sales volumes — MMcf 289,948 292,266 308,833 (2,318) (16,567) Consolidated distribution transportation volumes — MMcf 152,963 152,709 152,513 254 196 Total consolidated distribution throughput — MMcf 442,911 444,975 461,346 (2,064) (16,371) Consolidated distribution average cost of gas per Mcf sold $ 7.11 $ 7.56 $ 4.86 $ (0.45) $ 2.70 Fiscal year ended September 30, 2023 compared with fiscal year ended September 30, 2022 Operating income for our distribution segment increased 14.6 percent.

During the fiscal year ended September 30, 2021, we received $3.4 billion in net proceeds from the issuance of long-term debt and equity. We completed a public offering of $600 million of 1.50% senior notes due 2031, $1.1 billion of 0.625% senior notes due 2023 and $1.1 billion floating rate senior notes due 2023.

During the fiscal year ended September 30, 2023, we repaid $2.2 billion in long-term debt, and we received approximately $1.6 billion in net proceeds from the issuance of long-term debt and equity.

As described in Note 9 to the consolidated financial statements, interest related to the incremental financing incurred as a result of Winter Storm Uri was deferred through December 31, 2021 pursuant to a regulatory order issued by the State of Texas. 27 Table of Contents The fiscal year ended September 30, 2021 compared with fiscal year ended September 30, 2020 for our distribution segment is described in Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the fiscal year ended September 30, 2021.

The fiscal year ended September 30, 2022 compared with fiscal year ended September 30, 2021 for our distribution segment is described in Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the fiscal year ended September 30, 2022.

Cash flows from operating activities For the fiscal year ended September 30, 2022, cash flow provided by operating activities was $977.6 million compared with cash flow used in operating activities of $1.1 billion in the prior year. Fiscal 2021 operating cash flow included $2.1 billion of cash paid for gas costs incurred during Winter Storm Uri.

Cash flows from operating activities For the fiscal year ended September 30, 2023, cash flow provided by operating activities was $3,459.7 million compared with $977.6 million in the prior year. Fiscal 2023 operating cash flow included $2,021.9 million of cash received as a result of the conclusion of Texas securitization proceedings.

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 $5.0 billion in common stock and/or debt securities.

We have a shelf registration statement on file with the Securities and Exchange Commission (SEC) that allows us to issue up to $5.0 billion in common stock and/or debt securities. As of the date of this report, $3.1 billion of securities remained available for issuance under the shelf registration statement, which expires March 31, 2026.

Net proceeds from the latter two notes were used to pay for gas costs incurred during Winter Storm Uri. Additionally, during the year ended September 30, 2021, we settled 6,130,875 shares that had been sold on a forward basis for net proceeds of $606.7 million.

Additionally, during the fiscal year ended September 30, 2023, we settled 7,272,261 shares that had been sold on a forward basis for net proceeds of $806.9 million. The net proceeds were used primarily to support capital spending and for other general corporate purposes.

The year-over-year decrease in operating cash flow reflects the refund of excess deferred tax liabilities, increased purchases of gas stored underground and the timing of gas cost recoveries, partially offset by increased customer collections and the positive effects of successful rate case outcomes achieved in fiscal 2021 and 2022.

Excluding this cash inflow, operating cash flow in fiscal 2023 was $1,437.8 million. The year-over-year increase in operating cash flow reflects the positive effects of successful rate case outcomes achieved in fiscal 2022 and 2023 and decreased purchases of gas stored underground.

Interest charges increased $13.3 million due to the issuance of long-term debt during fiscal 2022 and interest expense recognized in fiscal 2022 related to debt incurred as a result of Winter Storm Uri.

Interest charges increased $27.3 million primarily due to the issuance of long-term debt during the first quarter of fiscal 2023.

Partially offset by: • an $8.4 million increase in system maintenance expense primarily due to spending on hydrostatic testing. • a $15.4 million increase in depreciation expense and property taxes associated with increased capital investments.

Partially offset by: • a $65.4 million increase in depreciation expense and property taxes associated with increased capital investments. • a $20.2 million increase in line locate spending, primarily in our Mid-Tex Division. • a $4.9 million increase in bad debt expense primarily due to higher customer bills. • a $21.6 million increase in other operation and maintenance expense primarily due to increased insurance premiums, travel spending, information technology spending and other administrative costs.

General economic and market conditions Projected timing and amount of future discounted cash flows Judgment in the evaluation of relevant data 24 Table of Contents Non-GAAP Financial Measures As described further in Note 14 to the consolidated financial statements, due to the passage of Kansas House Bill 2585, we remeasured our deferred tax liability and updated our state deferred tax rate.

General economic and market conditions Projected timing and amount of future discounted cash flows Judgment in the evaluation of relevant data 24 Table of Contents RESULTS OF OPERATIONS Overview Atmos Energy strives to operate its businesses safely and reliably while delivering superior financial results.

Capital spending increased by $474.9 million, or 24 percent, as a result of planned increases to modernize our system. Cash flows from financing activities Our financing activities provided $1.4 billion and $3.1 billion in cash for fiscal years 2022 and 2021.

Capital spending increased by $361.6 million, or 15 percent, as a result of planned increases to modernize our system and improve pipeline system safety and reliability in Texas and further enhance the safety, reliability, versatility and supply diversification of APT's system.

Additional key drivers for the change in operating income include: • a $149.9 million increase in rate adjustments, primarily in our Mid-Tex, West Texas and Louisiana Divisions. • a $15.2 million increase due to an increase in the number of customers served, primarily in our Mid-Tex Division. • a $24.9 million decrease in bad debt expense, primarily due to the resumption of collection activities in late fiscal 2021 following the expiration of pandemic-related collection moratoriums.

Key drivers for the change in operating income include: • a $166.4 million increase in rate adjustments, primarily in our Mid-Tex Division. • an $18.4 million increase related to residential customer growth, primarily in our Mid-Tex Division, and increased industrial load. • an $11.7 million increase in consumption, net of WNA. • a $7.5 million decrease in refunds of excess deferred taxes to customers, which is substantially offset in income tax expense.

Partially offset by: • a $50.4 million increase in depreciation expense and property taxes associated with increased capital investments. • a $17.3 million decrease in consumption, net of WNA, primarily due to the decline in residential consumption during the second fiscal quarter. • an $8.8 million increase in system maintenance and related activities. • a $25.5 million increase in employee related costs driven by increased headcount, increased number of service orders performed and higher benefits costs. • an $8.9 million increase in insurance premiums.

Partially offset by: • a $33.1 million increase in operating expenses primarily attributable to increased depreciation expense and property taxes associated with increased capital investments, employee-related costs, and pipeline inspection activities. Other non-operating income increased $18.0 million primarily due to higher AFUDC largely as a result of increased capital spending.

Removed

Decisions of regulatory authorities Issuance of new regulations or regulatory mechanisms Assessing the probability of the recoverability of deferred costs Continuing to meet the criteria of a cost-based, rate regulated entity for accounting purposes Unbilled Revenue We follow the revenue accrual method of accounting for distribution segment revenues whereby revenues attributable to gas delivered to customers, but not yet billed under the cycle billing method, are estimated and accrued and the related costs are charged to expense.

Added

Review of Financial and Operating Results Financial and operational highlights for our distribution segment for the fiscal years ended September 30, 2023, 2022 and 2021 are presented below.

Removed

When permitted, we implement rates that have not been formally approved by our regulatory authorities, subject to refund.We recognize this revenue and establish a reserve for amounts that could be refunded based on our experience for the jurisdiction in which the rates were implemented.

Added

Other non-operating income increased $18.0 million primarily due to a higher allowance for funds used during construction (AFUDC) related to increased capital spending as well as unrealized gains on equity investments in the current 26 Table of Contents period compared to unrealized losses on equity investments in the prior period.

Removed

As a result, we recorded a non-cash income tax benefit of $21.0 million for the fiscal year ended September 30, 2020.

Added

Additionally, GRIP requires a utility to file a statement of intent at least once every five years to review its costs and expenses, including capital costs filed for recovery under GRIP. On May 19, 2023, APT filed its statement of intent seeking $107.4 million in additional annual operating income.

Removed

Due to the non-recurring nature of this benefit, we believe that net income and diluted net income per share before the non-cash income tax benefit provide a more relevant measure to analyze our financial performance than net income and diluted net income per share in order to allow investors to better analyze our core results and allow the information to be presented on a comparative basis.

Added

On October 24, 2023, APT and the intervening parties in its general rate case filed a Joint Notice of Settlement and Proposed Order.

Removed

Accordingly, the following discussion and analysis of our financial performance will reference adjusted net income and adjusted diluted earnings per share, non-GAAP measures, which are calculated as follows: For the Fiscal Year Ended September 30 2022 2021 2020 2022 vs. 2021 2021 vs. 2020 (In thousands, except per share data) Net income $ 774,398 $ 665,563 $ 601,443 $ 108,835 $ 64,120 Non-cash income tax benefits — — (20,962) — 20,962 Adjusted net income $ 774,398 $ 665,563 $ 580,481 $ 108,835 $ 85,082 Diluted net income per share $ 5.60 $ 5.12 $ 4.89 $ 0.48 $ 0.23 Diluted EPS from non-cash income tax benefits — — (0.17) — 0.17 Adjusted diluted net income per share $ 5.60 $ 5.12 $ 4.72 $ 0.48 $ 0.40 RESULTS OF OPERATIONS Overview Atmos Energy strives to operate its businesses safely and reliably while delivering superior shareholder value.

Added

Review of Financial and Operating Results Financial and operational highlights for our pipeline and storage segment for the fiscal years ended September 30, 2023, 2022 and 2021 are presented below.

Removed

The refunds reduced operating income and reduced our annual effective income tax rate to 9.1% in fiscal 2022 compared with 18.8% in fiscal 2021. Capital expenditures for fiscal 2022 were $2.4 billion.

Added

Interest charges increased $7.2 million primarily due to the issuance of long-term debt during the first quarter of fiscal 2023.

Removed

As of September 30, 2022, our equity capitalization was 53.6 percent. Excluding the $2.2 billion of incremental financing issued in conjunction with Winter Storm Uri, our equity capitalization was 61.3 percent.

Added

We currently anticipate this tax will apply to us within the next three years, and it could materially impact our cash tax payments. However, we don't anticipate any impact to our results of operations. Also, the Inflation Reduction Act imposes a methane emissions charge for methane emissions in excess of 25,000 metric tons carbon dioxide equivalent per year.

Removed

As a result of the continued stability of our earnings, cash flows and capital structure, our Board of Directors increased the quarterly dividend by 8.8% percent for fiscal 2023. Distribution Segment The distribution segment is primarily comprised of our regulated natural gas distribution and related sales operations in eight states.

Added

Cash flows from financing activities Our financing activities used $696.8 million of cash for fiscal year 2023 compared with $1,387.2 million of cash provided by financing activities for fiscal year 2022.

Removed

Fiscal year ended September 30, 2022 compared with fiscal year ended September 30, 2021 Operating income for our distribution segment decreased two percent. Increased refunds of excess deferred taxes to customers decreased year-over-year operating income $98.5 million and reduced the effective income tax rate for this segment to 7.1% compared to 20.6% in the prior year.

Added

We completed a public offering of $500 million of 5.75% senior notes due October 2052 and $300 million of 5.45% senior notes due October 2032, and received net proceeds from the offering, after the underwriting discount and offering expenses, of $789.4 million.

Removed

The year-over-year change in other non-operating income (expense) of $27.6 million primarily reflects lower non-service costs related to our postretirement medical plan, partially offset by an increase in unrealized losses on equity investments.

Added

We also received $171.1 million from the settlement of forward starting interest rate swaps related to a debt issuance completed in October 2023. Cash dividends increased due to an 8.8 percent increase in our dividend rate and an increase in shares outstanding.

Removed

Fiscal year ended September 30, 2022 compared with fiscal year ended September 30, 2021 Operating income for our pipeline and storage segment increased 10 percent. Increased refunds of excess deferred taxes to customers decreased year-over-year operating income by $13.3 million and reduced the effective income tax rate for this segment to 13.1% compared to 14.9% in the prior year.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

2 edited+0 added−0 removed5 unchanged

2022 filing

2023 filing

Biggest changeHad interest rates associated with our short-term borrowings increased by an average of one percent, our interest expense would not have materially increased during 2022. 34 Table of Contents

Our risk management activities and related accounting treatment are described in further detail in Note 15 to the consolidated financial statements. Additionally, our earnings are affected by changes in short-term interest rates as a result of our issuance of short-term commercial paper and our other short-term borrowings. Commodity Price Risk We purchase natural gas for our distribution operations.

Our risk management activities and related accounting treatment are described in further detail in Note 16 to the consolidated financial statements. Additionally, our earnings are affected by changes in short-term interest rates as a result of our issuance of short-term commercial paper and our other short-term borrowings. Commodity Price Risk We purchase natural gas for our distribution operations.

Top changes in Atmos Energy's 2023 10-K

Item 1. Business

Item 1A. Risk Factors

Item 2. Properties

Item 5. Market for Registrant's Common Equity

Item 7. Management's Discussion & Analysis

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Other ATO 10-K year-over-year comparisons