Atmos Energy

Methodology

Atmos Energy's regulated natural gas distribution business provides highly predictable earnings based on approved rate structures across its service territories. The company's pure-play gas utility focus and rate-base growth strategy create stable, visible earnings progression. This calculation works very well given regulatory protections and consistent execution on infrastructure investment plans, making fair value estimates reliable barring major regulatory changes.

Methodology

Atmos typically commands premium PEG ratios that appear expensive but reflect the bond-like stability and regulatory protection of a pure-play gas utility. The company's consistent earnings growth from rate-base expansion justifies higher multiples given defensive characteristics. Compare to other regulated gas utilities and the broader utility sector to assess whether Atmos' execution track record and regulatory relationships warrant its current pricing.

Methodology

Atmos Energy's moderate dividend yield is central to the investment thesis for a regulated utility focused on steady income and capital preservation. The company targets consistent dividend growth aligned with rate-base driven earnings expansion. PEGY provides essential context for utility investors, as the combination of yield and predictable growth creates the defensive total return profile that attracts income-focused capital to gas distribution stocks.