ATO · 10-Q · 2026Q2 · Full report

Market Demand Trends

ATMOS ENERGY CORP · 2026-08-05 · Importance 30 · Surprise 40

Atmos Energy serves approximately 3.4 million residential, commercial, public authority and industrial customers across six distribution divisions in eight states. Distribution sales volumes decreased 10.2% year over year to 229,995 MMcf for the nine months ended June 30, 2026, while transportation volumes declined 3.0% to 114,761 MMcf. The company reported increased residential customer growth, primarily in the Mid-Tex Division, and increased industrial load, which contributed $13.7 million to distribution operating income. Management also noted that higher gas costs and broader competitive or economic conditions may cause customers to conserve or industrial customers to use alternative energy sources.

Key facts

• For the 2025-2026 heating season, we hedged approximately 23.8 Bcf of the winter flowing gas requirements in jurisdictions where financial instruments are permitted source
• Nine months drivers included a $14.7 million increase in consumption, net of WNA source
• Distribution segment three-month drivers included a $3.9 million increase related to residential customer growth, primarily in Mid-Tex Division, and increased industrial load source
• As of June 30, 2026, Atmos Energy had 18,662 MMcf of net long commodity contracts outstanding source
• In our distribution and pipeline and storage segments, we use physical storage, fixed physical contracts, and fixed financial contracts to reduce exposure to unusually large winter-period gas price increases. source