Atmos Energy's $29 billion plan comes with a growing share count

Atmos Energy plans to invest about $29 billion in its gas systems over the next five years. Funding that work will require roughly $17 billion of additional long-term debt and equity.

The plan supports rising earnings and dividends. It also means a bigger business will be spread across more shares, a distinction that matters when judging how much growth reaches each shareholder.

The business grows faster than the per-share result

For fiscal 2027, Atmos expects net income of $1.61 billion to $1.63 billion, up from $1.43 billion in the year ended September 30. Earnings per share are forecast at $9.05 to $9.25, compared with $8.49.

At the midpoints, the forecasts imply about 13.5% growth in total net income and 7.8% growth in earnings per share.

Atmos expects its average diluted share count to rise to between 176 million and 178 million from about 168 million. Raising equity helps finance new assets while giving more shares a claim on the resulting profit.

Borrowing carries a cost too. The company expects annual interest expense to rise to $210 million to $220 million from about $153 million.

Why a utility keeps investing

Atmos delivers natural gas to about 3.4 million customers across eight states and operates pipeline and storage assets. Replacing aging pipes, improving reliability and expanding service adds to the regulated asset base on which it can earn returns.

More than 85% of the new five-year capital plan is allocated to safety. Management says regulatory mechanisms allow more than 90% of annual capital spending to begin recovery within six months of the end of the relevant test year.

The updated plan runs through fiscal 2031, a year beyond the framework presented in September. Atmos targets annual EPS growth of 6% to 8%, reaching $12.35 to $12.55 in 2031.

Financing is already part of the model

At September 30, Atmos had about $871 million of proceeds available under outstanding forward equity agreements covering roughly 5.6 million shares. Those proceeds form part of its reported $3.8 billion of available liquidity, alongside unused credit facilities. Cash itself was about $28 million.

The company completed a $700 million bond offering in October, with a 6% coupon and a November 2036 maturity. Net proceeds were about $691 million.

Fiscal 2026 EPS of $8.49 finished within the $8.40 to $8.50 range reaffirmed in August. Capital spending of $4.17 billion was also close to the earlier $4.2 billion expectation.

For fiscal 2027, Atmos plans about $4.5 billion of investment and indicated a $4.36 annual dividend, up 9%. The central test is whether regulated returns arrive quickly enough to keep earnings per share growing alongside the financing needed to build the assets.

Our Atmos Energy company profile tracks the investment plan, earlier forecasts, cash flow and funding commitments.