Company: ATO
Filing Date: 2025-11-14
Form Type: 10-K
Source: 0000731802-25-000056
Chunk: 76

Company: ATMOS ENERGY CORP
Filing Date: 2025-11-14
Form: 10-K
Item: Item 8
Chunk 76
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 recognized are based upon the Company’s historical experience and understanding of the regulations. As of September 30, 2025, there were $608.7 million of deferred costs included in regulatory assets and $1,269.6 million of regulatory liabilities awaiting cash outflow or potential refund.Auditing the effects of regulatory matters is complex as it requires specialized knowledge of rate-regulated activities and assessments as to matters that could affect the recording or updating of regulatory assets and liabilities.

How We Addressed the Matter in Our AuditWe obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls over the Company's accounting for regulatory assets and liabilities, including, among others, controls over management's assessment of the likelihood of approval by regulators for new matters and controls over the evaluation on rulings with regulatory bodies on existing regulatory assets and liabilities, including factors that may affect the timing or nature of recoverability. We performed audit procedures that included, among others, examining evidence of correspondence with regulatory bodies to test that the Company appropriately evaluated information obtained from regulatory rulings. For example, we assessed the recoverability and completeness of various regulatory assets and liabilities, considering information obtained from regulatory rulings. In addition, we tested that amortization of regulatory assets and liabilities corresponded to relevant regulatory rulings.

/s/   Ernst & Young LLP

We have served as the Company’s auditor since 1983.

Dallas, Texas 

November 14, 2025 

38

ATMOS ENERGY CORPORATION

CONSOLIDATED BALANCE SHEETS September 30 20252024 (In thousands,except share data)ASSETSProperty, plant and equipment$28,028,820 $24,784,285 Construction in progress1,235,316 1,063,798 29,264,136 25,848,083 Less accumulated depreciation and amortization3,971,146 3,643,716 Net property, plant and equipment25,292,990 22,204,367 Current assetsCash and cash equivalents202,687 307,340 Restricted cash and cash equivalents1,116 1,516 Cash and cash equivalents and restricted cash and cash equivalents203,803 308,856 Accounts receivable, less allowance for uncollectible accounts of $45,259 in 2025 and $37,056 in 2024375,509 365,882 Gas stored underground171,756 169,508 Other current assets301,627 288,068 Total current assets1