Strong First Half Positions Atmos to Deliver at High End of Guidance

We are reaffirming our $99 fair value estimate for Atmos Energy after the company reported fiscal second-quarter operating earnings per share of $2.37 compared with $2.30 in the year-ago period. Management narrowed its 2022 operating earnings guidance range to $5.50-$5.60 from $5.40-$5.60. We don't expect to significantly alter our $5.52 EPS forecast or fair value estimate. Our 7.5% earnings growth outlook is at the high end of management's 6%-8% guidance range. Our narrow moat and stable moat trend are unchanged.