1) Financial Performance Overview - Year-to-date net income for fiscal 2026 reached $985 million, translating to $5.92 per diluted share, a 12.5% increase YoY. - The earnings per share guidance was updated to a range of $8.40 to $8.50 for the fiscal year. - Capital expenditures for the first half totaled $2 billion, with 89% focused on enhancing safety and reliability.

2) Customer Growth and Operational Highlights - Atmos Energy added over 51,000 new customers in the last 12 months, with 39,000 in Texas alone. - The company completed Phase 2 of the Line WA project, installing 44 miles of pipeline to support growth in the DFW Metroplex. - Customer satisfaction ratings stood at 97% for the first half of the fiscal year, reflecting strong service performance.

3) Regulatory and Legislative Impact - The impact of Texas House Bill 4384 contributed $94 million to year-to-date results, with $44 million in the Distribution segment and $50 million in APT. - The finalization of Rule 7.7102 is expected to yield a pretax benefit of $155 million to $165 million for fiscal 2026, significantly higher than initial estimates.

4) Guidance and Future Outlook - The company anticipates that APT's through-system business will add an additional $0.08 to $0.12 to fiscal 2026 results in the second half. - O&M expenses are expected to range between $865 million to $885 million, with interest expenses projected at $155 million to $160 million. - Atmos Energy remains on track for $4.2 billion in capital expenditures for fiscal 2026.

5) Market Conditions and Strategic Considerations - The company is monitoring natural gas pricing dynamics, particularly in the Permian Basin, which may impact future earnings. - There was no pricing activity in the ATM during the second quarter, as the company is assessing market conditions before further equity needs for fiscal 2027.

Bottom line: Atmos Energy's strong financial performance, customer growth, and regulatory advantages position it well for continued growth, with an optimistic outlook for fiscal 2026 and beyond. The updated earnings guidance and strategic investments suggest a solid foundation for shareholder value.