The company implemented or received approval to implement ratemaking regulatory actions resulting in an increase in annual operating income of $150.5 million during the quarter. Ratemaking efforts in progress seek a further $95.4 million increase.

The company continues to invest heavily in infrastructure programs, particularly in Texas, Louisiana, and Tennessee, to improve safety and reliability. These investments are supported by regulatory mechanisms that allow for cost recovery.

The company has an at-the-market (ATM) equity sales program in place, allowing it to issue and sell shares of common stock up to an aggregate offering price of $1.7 billion. This program is used to fund capital needs.

Atmos Energy's vision is to be the safest provider of natural gas services. This commitment requires significant capital spending and operating costs.

The principal executive officer and principal financial officer have concluded that the Company's disclosure controls and procedures were effective as of December 31, 2024.

There were no changes in the company's internal control over financial reporting during the first quarter of fiscal year 2025 that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting.

The NTSB issued Preliminary Reports on incidents in Jackson, Mississippi, and Avondale, Louisiana, relating to investigations that resulted in fatalities. Atmos Energy is working closely with the NTSB and other regulators to determine causal factors.

The company identifies federal, state, and local regulatory and political trends and decisions as risks that could cause actual results to differ materially from those expressed or implied in forward-looking statements.

The threat of cyber-attacks or acts of cyber-terrorism that could disrupt business operations and information technology systems or result in the loss or exposure of confidential information is identified as a risk factor.

Increased competition from energy suppliers and alternative forms of energy is identified as a risk factor.

The concentration of operations in Texas is identified as a risk factor, suggesting a potential vulnerability to events or conditions specific to that region.

Higher gas costs, as well as competitive factors and general economic conditions, may cause customers to conserve or use alternative energy sources, impacting sales volumes.

Seasonal weather patterns can affect distribution operations, but the effect of weather that is above or below normal is substantially offset through weather normalization adjustments (WNA) in states covering approximately 97% of residential and commercial revenues.

The company is focused on improving rate design in various ratemaking jurisdictions to minimize regulatory lag and separate the recovery of approved rates from customer usage patterns.

Operating income was partially offset by an $11.0 million increase in employee-related costs and a $9.1 million increase in other operation and maintenance expense due to compliance-related activities and other administrative costs.

Failure of technology that affects the Company's business operations is identified as a risk factor.

The threat of cyber-attacks or acts of cyber-terrorism that could disrupt business operations and information technology systems or result in the loss or exposure of confidential information is identified as a risk factor.

Capital expenditures are primarily used to improve the safety and reliability of our distribution and transmission system through pipeline replacement and system modernization.

Approximately 86 percent of capital spending was invested to improve the safety and reliability of distribution and transportation systems.

Liquidity is provided from a combination of internally generated cash flows and external debt and equity financing, along with commercial paper program and revolving credit facilities.

The company received approximately $1.0 billion in net proceeds from the issuance of long-term debt and equity during the quarter.

Atmos Energy's vision is to be the safest provider of natural gas services, requiring significant capital spending.

Possible increased federal, state, and local regulation of the safety of our operations is identified as a risk factor.

The impact of legislation to reduce or eliminate greenhouse gas emissions or fossil fuels is identified as a risk factor.

The impact of adverse economic conditions on customers and changes in the availability and price of natural gas are identified as risk factors.

Natural disasters, adverse weather, terrorist activities, or other events are identified as risks.

Routine rate regulatory proceedings were in progress in several service areas as of December 31, 2024.