Atmos Energy Corporation (ATO)

In the past six months, Atmos Energy's stock price has risen by 9.68% and 3.4% against an industry decline of 8.2%. Atmos Energy reported strong Q1 2025 earnings, exceeding estimates, and raised its fiscal 2025 guidance in May 2025. Atmos Energy declared a regular quarterly dividend of $0.87 per share in May 2025 and has a history of increasing its annual dividend for 41 consecutive years. In April 2025, Mizuho downgraded its outlook for Atmos Energy from Outperform to Neutral, while Wolfe Research initiated coverage with a Peer Perform recommendation in March 2025. More recently, in May 2025, Wall Street Zen raised its rating from "sell" to "hold," and Argus and LADENBURG THALM/SH SH upgraded the stock to "strong-buy." JPMorgan Chase & Co. also raised its price target and maintained an "overweight" rating in April 2025. In June 2025, Atmos Energy announced a $500 million underwritten offering of 5.200% senior notes due 2035. The company completed a $1 billion follow-on equity offering in December 2024.

Demand for Atmos Energy's natural gas products and services is seasonal, with heating demand significantly impacting the company's earnings, particularly in its distribution business, with higher demand typically occurring during colder months. The company must secure sufficient natural gas supply, interstate pipeline capacity, and storage capacity to meet annual and seasonal demands, especially peak-day requirements. Atmos Energy utilizes a variety of suppliers and pipeline transportation companies, along with proprietary and contracted storage assets, to manage supply and meet seasonal fluctuations.

Atmos Energy Corp. (ATO) is a prominent, fully regulated, pure-play natural gas utility headquartered in Dallas, Texas. The company operates within the utilities sector, specifically in the natural gas distribution and regulated gas industry. Its core business involves the distribution, storage, and transmission of natural gas to residential, commercial, public authority, and industrial customers. Key services and products include regulated natural gas distribution, natural gas procurement, and marketing services. The company also manages extensive natural gas pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas and five underground storage facilities.

Atmos Energy serves over 3 million natural gas distribution customers across more than 1,400 communities in eight states, spanning from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. The company has a significant presence in Texas, which accounts for about two-thirds to 70% of its earnings, and also operates in Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, and Virginia.

Atmos Energy has maintained a positive brand reputation in the past year, being recognized on Forbes "America's Best Employers" list for the fifth consecutive year in February 2025, highlighting its strong corporate culture, known as "AtmoSpirit," which fosters innovation and engagement. The company's commitment to safety, reliability, and customer service also contributes to its positive image.

Atmos Energy Corporation's ownership is primarily institutional, with approximately 87.91% to 98.34% of the company's stock held by institutional investors, while insiders own about 0.31% to 2.60%, and public companies and individual investors hold the remainder. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., Wellington Management Group Llp, State Street Corp, Capital International Investors, Price T Rowe Associates Inc /md/, Aristotle Capital Management, LLC, Geode Capital Management, LLC, AMRMX - AMERICAN MUTUAL FUND Class A, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares and VFINX - Vanguard 500 Index Fund Investor Shares.