Atmos Energy Corp 2026 Annual Report

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule405of RegulationS-T (§232.405 of this chapter) during the preceding 12months (or for such shorter period that the registrant was required to submit such Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or anemerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growthcompany" in Rule12b-2 of the Exchange Act. (Check one): GLOSSARY OF KEY TERMS ATMOS ENERGY CORPORATION 1.Nature of Business Atmos Energy Corporation (“Atmos Energy” or the “Company”) and its subsidiaries are engaged in the regulated natural gasdistribution and pipeline and storage businesses. Our distribution business is subject to federal and state regulation and/or regulation by local Our distribution business delivers natural gas through sales and transportation arrangements to approximately 3.4million residential,commercial, public authority, and industrial customers through our six regulated distribution divisions, which at December31, 2025, Our pipeline and storage business, which is also subject to federal and state regulations, includes the transportation of natural gas toour Texas and Louisiana distribution systems and the management of our underground storage facilities used to support our distribution 2.Summary of Significant Accounting Policies Basis of Presentation These consolidated interim-period financial statements have been prepared in accordance with accounting principles generallyaccepted in the United States on the same basis as those used for the Company’s audited consolidated financial statements included in ourAnnual Report on Form 10-K for the fiscal year ended September30, 2025. In the opinion of management, all material adjustments(consisting of normal recurring accruals) necessary for a fair presentation have been made to the unaudited consolidated interim-periodfinancial statements. These consolidated interim-period financial statements are condensed as permitted by the instructions to Form 10-Q Significant accounting policies Our accounting policies are described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for thefiscal year ended September30, 2025. No events have occurred subsequent to the balance sheet date that would require recognition or disclosure in the condensedconsolidated financial statements. Recently issued accounting pronouncements In November 2024, the FASB issued guidance that will require more detailed information about the types of expenses in commonlypresented expense captions. The amendment is effective for fiscal years beginning after December 15, 2026, and interim periods withinfiscal years beginning after December 15, 2027. Early adoption is permitted. This amendment will be effective for our Form 10-K for fiscal In September 2025, the FASB issued guidance which provides qualitative updates to the determination of capitalizing internal-usesoftware costs by expanding the scope to allow for various software development methods. The amendment is effective for fiscal yearsbeginning after December 15, 2027. Early adoption is permitted, and the amendment may be applied prospectively, retrospectively, or with amodified transition approach. This amendment will be effective for our Form 10-K for fiscal 2029 and our Form 10-Q for the first quarter of 3.Regulation Accounting principles generally accepted in the United States require cost-based, rate-regulated entities that meet certain criteria toreflect the authorized recovery of costs due to regulatory decisions in their financial statements. As a result, certain costs are permitted to becapitalized rather than expensed because they can be recovered through rates. We record certain costs as regulatory assets when futurerecovery through customer rates is considered probable. Regulatory liabilities are recorded when it is probable that revenues will be reduced assets and our regulatory liabilities are recorded as a component of other current liabilities and deferred credits and other liabilities. Deferredgas costs are recorded either in other current assets or liabilities. Regulatory assets and liabilities as of December31, 2025 and September30, 2025 included the following: (1)Texas, Louisiana, and Tennessee have authorized infrastructure mechanisms that mitigate regulatory lag and allow for the deferral of eligible incurred costs related toqualifying capital expenditures until new rates are implemented. The investment and deferred costs are required to be included in the Company's next rate filing (ratecase or annual rate filing) for recovery through base rates. (2)Regulatory excess deferred taxes represent changes in our net deferred tax liability related to our cost