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JUNE 2015 INVESTOR PRESENTATION – Atmos Energy

Atmos Energy · Jun 19, 2015 · 37 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 1
    Atmos Energy Corporation Delivering clean, safe and economical energy to over 3 million homes and businesses Atmos Energy A multi-state regulated natural gas delivery company achieving strong financial growth through…
  2. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 2
    Investment Highlights A Pure-Play, High-Growth Natural Gas Delivery Investment Proposition Attractive total return proposition of 9 - 11% Attractive pure-play 6 - 8% forecasted EPS growth through Fiscal 2018; current dividend yield of…
  3. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 3
    Attractive, Pure-Play Return Constructive Regulatory Mechanisms Support Efficient Conversion of Rate Base Growth Opportunities into Financial Results 900 million - 1.1 billion in annual Constructive rate mechanisms 6% - 8%…
  4. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 4
    Leading Natural Gas Delivery Platform Eight-state distribution territory Business mix Intrastate pipeline system Regulated distribution 61% Regulated distribution 68% Regulated Nonregulated pipeline 9% Regulated 30%…
  5. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 5
    Regulated Operations in Texas Scope of Texas Operations Distribution and Pipeline Over 60% of consolidated margins and about 70% of asset base are concentrated in Texas Constructive regulatory framework supports investment in system…
  6. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 6
    Distribution Divisions in Texas Operate in Constructive Regulatory Environment Distribution Divisions in Texas Serve Approximately 1.8 Million Customers Largest natural gas distributor in Texas Regulated by the Railroad…
  7. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 7
    Favorably Positioned Regulated Pipeline Spans Texas Shale Gas Supply Basins Atmos Pipeline Texas Regulated by the Railroad Commission of Texas Established to provide gas supply service to Mid-Tex and other LDCs 100% of margin…
  8. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 8
    Constructive Rate Mechanisms Reduce Regulatory Lag 45% of Fiscal 2015E CAPEX is Unlagged % of 2015E Spend Months of Lag Capex (in millions) Unlagged Unlagged Fiscal Capital Mid-Tex and West Texas Rule 8.209, 400 450 Mississippi,…
  9. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 9
    Regulatory and Recovery Mechanisms Regulatory Mechanism Recovery Method Jurisdiction Infrastructure Forward General Rate Base Annual Filing Program Looking Case (in millions) Texas Mid-Tex 8.209 - RRM/DARR/GRIP - 1,956…
  10. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 10
    Constructive Rate Outcomes Drive Operating Income Growth Annual Increases to Operating Income 1 Distribution and Pipeline Operations 150.0 Customers and investors 122.3 134.0 benefit from fair and 125.0 105 - 125 reasonable…
  11. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 11
    Average Residential Bill Average Customer Bill Remains Affordable 70 60 58 57 56 2015E 2018E Assumptions 50 Monthly / Customer Normal weather and consumption 40 900 million - 1.1 billion annual CAPEX 30 Average all-in…
  12. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 12
    Capital Expenditures Drive Rate Base Growth Consolidated 2015E Capital Expenditures of 900 million - 1.0 billion ( millions) 1,100 900M - 1.1B Safety & Reliability 750 - 900 1,000 900M - 1.0B million 900 845.0 835.3 Pipeline…
  13. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 13
    Capital Spending Drives Rate Base Growth Strong Regulated Rate Base Growth Focused on enhancing system safety and reliability 7.2 - 7.4 Billion 8,000 7,000 6,000 ( billions) 5,000 4.1 Billion 4,000 3,000 2,000 1,000…
  14. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 14
    Investments Drive Rate Base Growth that Drives Earnings Growth Earnings Per Share Expected to Grow Between 6% 8% Annually Consolidated Results Factors Included in Projections 3.50 - 3.75 Capital expenditures of 900 4.00 million - 1.1…
  15. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 15
    Fiscal 2015E Guidance Atmos Energy continues to expect earnings to be in the range of 2.90 to 3.05 per diluted share for the 2015 fiscal year, excluding unrealized margins. Net Income (excluding Mark-to-Market) Selected Expenses (…
  16. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 16
    Strong Financial Foundation Long-Term Debt Maturity and Liquidity Profile Debt Maturity as of Liquidity Profile as of March 31, 2015 March 31, 2015 millions millions 1,760 1,500 95.5 1,800 1.2 billion 75.0 1,200…
  17. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 17
    Strong Financial Foundation Improved Weighted Average Cost of Long-Term Debt Average maturities about 20 years after 500 million issuance in October 2014 2,500 8.0 2,000 Net Long Term Debt 7.0 Interest Rate % 6.9 6.9…
  18. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 18
    Sustainable and Growing Dividend 31 Consecutive Years of Dividend Increases 1.56E Quarterly Dividend 1.60 On May 6, 2015, the 1.40 Board of Directors declared a quarterly dividend of 0.39 per 1.20 share 1.00 126th consecutive…
  19. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 19
    Total Shareholder Return Since Implementing Growth through Infrastructure Investment Strategy 150.0 135.7 131.4 125.0 100.0 92.7 Percent 76.5 75.0 Peer Average*: 65.7% 65.8 64.8 50.8 51.6 50.0 45.2 41.4 34.6 24.9…
  20. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 20
    Investment Highlights A Pure-Play, High-Growth Natural Gas Delivery Investment Proposition Attractive total return proposition of 9 - 11% Attractive pure-play 6 - 8% forecasted EPS growth through Fiscal 2018; current dividend yield of…
  21. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 21
    Appendix 22
  22. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 22
    Consolidated Financial Results Fiscal 2015 2Q Q2 Fiscal 2015 Net Income versus Q2 Fiscal 2014 Net Income Average Q2 Fiscal 2015 Net Income Regulated Non Diluted (millions, except EPS) Distribution Pipeline Regulated TOTAL Shares EPS *…
  23. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 23
    Consolidated Financial Results Fiscal YTD YTD Fiscal 2015 Net Income versus YTD Fiscal 2014 Net Income Average Fiscal YTD 2015 Net Income Regulated Non Diluted (millions, except EPS) Distribution Pipeline Regulated TOTAL Shares EPS *…
  24. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 24
    Segment Financial Results Fiscal 2015 Q2 Regulated Distribution Key Drivers Quarter Ended 3/31 QTD 2015 2014 Change 21.0M gross profit increase: ( millions) 26.1M net increase in rate adjustments Gross Profit 406.2 385.2 21.0 1.2M…
  25. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 25
    Segment Financial Results Fiscal 2015 Q2 Regulated Pipeline Quarter Ended 3/31 Key Drivers QTD ( millions) 2015 2014 Change 18.1M gross profit increase: 15.3M increase in rates from the GRIP filings approved in 2014 & 2015 Gross…
  26. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 26
    Consolidated Financial Results Fiscal 2015 Capital Expenditures Spending Mix YTD 2015: 441.6 million YTD 2014: 359.0 million 55.6 39.5 13% 11% 39.2 34.1 9% 10% 346.8 285.4 78% 79% Safety & Reliability Customer Expansion…
  27. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 27
    Key Regulatory Developments - Fiscal 2015 YTD Annual Increases in Operating Income from Rate Activity 84 Million Key Rates Approved 90.0 Fiscal 2015 YTD 80.0 70.0 APT GRIP - 37.2M 60.0 Mid-Tex Cities 2014 RRM - 16.8M (…
  28. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 28
    Key Regulatory Developments - Fiscal 2015 YTD Louisiana Gas Service: Settled Rate Stabilization Clause (RSC) on May 14, 2015, authorizing a net increase in annual operating income of 1.3 million Authorized ROE of 9.8 percent; overall…
  29. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 29
    Key Regulatory Developments - Fiscal 2015 YTD Mid-Tex Cities: Settled 2013 Rate Review Mechanism (RRM) authorizing a net increase in annual operating income of 33.4 million Authorized ROE of 10.5 percent; overall return of 8.58…
  30. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 30
    Key Regulatory Developments - Fiscal 2015 YTD West Texas Cities of Amarillo/Lubbock/Dalhart/Channing (ALDC): Implemented the 2014 GRIP increase in annual operating income of 4.6 million on April 28, 2015 Based on return, depreciation…
  31. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 31
    Key Regulatory Developments - Fiscal 2015E Rate Filing Outlook Fiscal 2015E Q1 Q2 Q3 Q4 October December January March April June July September Kansas Issued GSRS for 0.3M Mid-Tex (Dallas) Settled Colorado Filed rate case in Kansas…
  32. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 32
    Segment Financial Results Fiscal 2015 Q2 Nonregulated Operations Quarter Ended 3/31 Key Drivers ( millions) 2015 2014 Change Gas Delivery & Related Services 17.9 12.5 5.4 5.4M increase in gas Storage/Transportation 3.3 3.7 (0.4)…
  33. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 33
    Segment Financial Results Fiscal 2015 YTD Nonregulated Operations Six Months Ended 3/31 Key Drivers ( millions) 2015 2014 Change Gas Delivery & Related Services 28.6 24.9 3.7 3.7M increase in gas Storage/Transportation 6.7 7.2 (0.5)…
  34. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 34
    Texas Enjoys a Diverse Economy Employment by Sector at December 31, 2014 30.0 20.0 20.0 Percent 15.7 13.5 13.2 10.3 10.0 7.6 6.1 5.7 2.6 1.7 0.0 y t es es ty ng ng on ng gy it lit m en v ic v ic tali u r i nti c…
  35. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 35
    Low Oil Prices Benefit Most States Effect of a 50% Decline in Oil prices on Employment -2.0 -4.3 - -0.7 - -2.3 -0.7 -1.6 -1.2 -1.7 Alaska Hawaii February Unemployment Rate: US=5.5%; TX= 4.3% Percent change in…
  36. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 36
    Regulated Operations Effective Date of Authorized Requested Date of Last Rate Operating Operating Rate Base Requested Authorized Requested Authorized Requested Authorized Requested Texas thousands Rate Base Last Rate Filing Income…
  37. JUNE 2015 INVESTOR PRESENTATION – Atmos Energy – slide 37
    Regulated Operations (continued) Date of Authorized Requested Effective Date Last Rate Operating Operating Rate Base Requested Authorized Requested Authorized Requested Authorized Requested Remaining thousands of Last Rate Filing…

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