Atmos Energy rated buy with $26B plan to double rate base by 2030, promising 45% returns by 2029

Atmos Energy is rated a buy due to its $26 billion capital plan aimed at nearly doubling its rate base by fiscal year 2030. The company’s ability to convert over 90% of its capital spending into earnings within six months supports a clear path for earnings per share growth. Additionally, its Texas pipeline operations provide further regulated growth opportunities. Assuming an 8% annual EPS growth and a stable price-to-earnings ratio of 20, Atmos Energy could deliver approximately 45% total returns by fiscal year 2029, with manageable risks related to regulatory and execution delays.