Atmos Energy

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

Introduction

This study on Atmos Energy, which is part of our coverage of the 10,000 largest companies in the world, is definitive. It is created and updated at a rapid pace to provide the most up-to-date information available.

Premium members have full access to this study on Atmos Energy, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis, and a myriad of additional high value sections.

Apart from the sections that rely on analysis, we look at prospects for new products and/or services; predict future market developments; and assess how Atmos Energy might collaborate with other organisations.

Company Description

Atmos Energy is a natural gas distribution company headquartered in Dallas, Texas, founded in 1906. It is the largest natural gas distribution company in the United States, providing natural gas to over 3 million customers across 8 states. Its main products and services are the delivery of natural gas to residential, commercial and industrial customers and services related to those products. Atmos Energy serves markets in Texas, Louisiana, Mississippi, Tennessee, Oklahoma, Arkansas, Kansas, and Colorado.

Industry Overview

Atmos Energy operates in the natural gas distribution industry, which has an estimated annual market size of $233 billion in the United States. The industry employs roughly 1.1 million people in the US and more than 44,000 people in other countries, primarily in Canada, Mexico, and Europe. Atmos Energy is one of the largest natural gas distribution companies in the US, with more than 8,000 employees in the US alone.

Industry Classification

In terms of formal classification, Platform Executive has tagged Atmos Energy as a business operating within the Gas industry.

1. Introduction
2. Company Description
3. Industry Overview
    3.1 Industry Classification
4. Intellectual Property
5. Major Products and Services
6. Key Competitors
7. Stakeholders
8. Value Proposition
9. Customers and Cohorts
10. Competitive Advantages
11. Market Trends
12. Key Performance Indicators
13. Financials (BETA)
    13.1 Highlights
    13.2. Board members
    13.3 Share Performance
    13.4 Income Statement
14. PESTLE Analysis
15. Potential Products/Services
16. Potential Synergies
17. Porter's Five Forces
18. CATWOE Analysis
19. SWOT Analysis
    19.1 Strengths
    19.2 Weaknesses
    19.3 Opportunities
    19.4 Threats
20. 5C Analysis
21. MOST Analysis
22. Innovation Scorecard
23. Appendices

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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Gas Meter with Radio Frequency Identification
Patent ID: 10,284,967
Date: 5/14/2019

Patent Title: Systems and Methods for Controlling Gas Flow
Patent ID: 10,284,964
Date: 5/14/2019

Patent Title: System and Method for Automatically Computing Gas Consumption
Patent ID: 10,284,963
Date: 5/14/2019

Patent Title: System and Method for Automatically Determining an Expected Gas Consumption
Patent ID: 10,284,962
Date: 5/14/2019

Patent Title: System and Method for Determining a Gas Consumption Model
Patent ID: 10,284,961
Date: 5/14/2019

Patent Title: System and Method for Automatically Detecting Gas Leakage
Patent ID: 10,284,960
Date: 5/14/2019

Patent Title: System and Method for Automatically Detecting Gas Leakage Using Acoustic Signals
Patent ID: 10,284,959
Date: 5/14/2019

Patent Title: System and Method for Automatically Detecting Gas Leakage Using Temperature Signals
Patent ID: 10,284,958
Date: 5/14/2019

Patent Title: System and Method for Automatically Detecting Gas Leakage Using Pressure Signals
Patent ID: 10,284,957
Date: 5/14/2019

Patent Title: System and Method for Automatically Detecting Gas Leakage Using Chemical Signals
Patent ID: 10,284,956
Date: 5/14/2019

Major Products & Services

The main products and/or services commercialised by this business include the following:

Natural gas delivery and services
Natural gas storage
Home heating and cooling
Industrial services
Pipeline construction and maintenance
Natural gas transportation
Renewable energy solutions
Energy efficiency programs
Gas leak detection and repair

Key Competitors

We have identified the following organisations as being key competitors:

Xcel Energy
Southern Company Gas
Dominion Energy
CenterPoint Energy
Spire
National Fuel Gas
PEPCO Holdings
Black Hills Energy
PSEG
NiSource

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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Customers: Residential, Commercial and Industrial customers who purchase natural gas and related services from Atmos Energy.

2. Employees: Atmos Energy employees who provide services and products to customers.

3. Investors: Investors and shareholders who provide capital to Atmos Energy and receive financial returns.

4. Suppliers: Suppliers who provide materials and services to Atmos Energy.

5. Regulatory Agencies: Regulatory agencies such as the Federal Energy Regulatory Commission, state public utility commissions, and local and state governments.

6. Local Communities: Local communities in which Atmos Energy operates, including those affected by its activities.

7. Environmental Organisations: Environmental organisations and advocates who seek to minimize environmental impacts from Atmos Energy's activities.

8. Competitors: Competitors in the energy industry who compete with Atmos Energy for customers and market share.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like Atmos Energy different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand Atmos Energy and its position within the marketplace.

Atmos Energy provides customers with an environmentally responsible and affordable energy solution. We provide clean, reliable energy to our customers at an affordable price.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Reliability: Atmos Energy has invested in its infrastructure to ensure reliable service with no interruption.

Customer Service: Atmos Energy has invested in customer service, including 24/7 customer service and automated payment options, to ensure that customers have the best possible experience.

Safety: Atmos Energy is committed to safety and has implemented safety protocols and procedures to protect both its customers and employees.

Sustainable Solutions: Atmos Energy has taken steps to reduce its carbon footprint, such as using renewable energy sources, reducing waste, and investing in energy efficiency.

Pricing: Atmos Energy strives to offer competitive pricing and has a variety of plans and payment options for customers.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

Residential customers
Commercial customers
Industrial customers
Government customers
Agricultural customers
Wholesale customers
Non-profit customers

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Decentralization of Energy Markets: Decentralization of energy markets, particularly in the US, could have a significant impact on Atmos Energy. Currently Atmos Energy is a major supplier to residential customers, but with the move to decentralized energy, customers may look to other sources for their energy needs such as rooftop solar panels and other energy sources.

Increased Demand for Renewable Energy: As the world moves towards a more sustainable future, the demand for renewable energy sources will increase. This will put increased pressure on Atmos Energy to diversify their energy portfolio and move towards more renewable energy sources.

Rise of Smart Grid Technology: Smart grid technology will soon become the norm in the energy sector. This technology will enable customers to monitor their energy usage and make more efficient decisions about how they use energy. This will potentially reduce demand for Atmos Energy’s services and put pressure on the company to innovate and adapt to this new technology.

Emergence of New Energy Sources: As technology advances, new energy sources are being developed and implemented. This could have a significant impact on Atmos Energy as they may need to compete with these new energy sources in order to remain competitive. Atmos Energy will need to be at the forefront of this new technology in order to remain successful.

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for Atmos Energy include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Personnel

Income Statement

[eod_financials target="ATO.US" id="10329343" preset="Income Statement" years="2018-2023"]

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Home Energy Audits: Atmos Energy could provide energy audits for customers to identify areas of energy consumption and suggest ways to reduce energy costs.

Solar Energy Installations: Atmos Energy could offer solar energy installation services for customers who want to switch to renewable energy sources.

Smart Thermostats: Atmos Energy could offer smart thermostats that allow customers to control their energy usage and save money.

Home Insulation Services: Atmos Energy could offer home insulation services to reduce energy costs and improve the comfort of homes.

Smart Appliances: Atmos Energy could offer smart appliances that can automatically adjust their settings to optimize energy usage.

Electric Car Charging Stations: Atmos Energy could install electric car charging stations in public areas to help reduce emissions and promote the adoption of electric vehicles.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Solar energy companies
2. Wind energy companies
3. Natural gas distributors
4. Electrical utilities
5. Environmental engineering firms
6. Smart home automation companies
7. Energy efficiency companies
8. Renewable energy companies
9. Geothermal energy companies
10. Building insulation companies

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

Competitive rivalry
Supplier power
Buyer power
Threat of substitution
Threat of new entries

Porter's 5 forces is a framework used to analyse the competitive environment of a business. It takes into account the following 5 forces:

1. Threat of new entrants: The threat of new entrants is LOW. Atmos Energy has a strong brand and a large customer base. It also has a large network of distribution channels.

2. Bargaining power of buyers: The bargaining power of buyers is LOW. Atmos Energy has a monopoly in the markets it serves.

3. Threat of substitute products: The threat of substitute products is LOW. Atmos Energy's products are essential for customers in the markets it serves.

4. Bargaining power of suppliers: The bargaining power of suppliers is LOW. Atmos Energy has a monopoly in the markets it serves.

5. Competitive rivalry: The competitive rivalry is LOW. Atmos Energy has a monopoly in the markets it serves.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

Political
Economic
Social
Technological
Legal
Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

CATWOE Analysis

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

Customers
Actors
Transformation process
World view
Owners
Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: Atmos Energy services residential and commercial customers in the areas of natural gas distribution and energy services. Their customers are located in eight US states and include businesses, state agencies, and individuals.

Actors: Atmos Energy's actors are the people and organisations who are responsible for providing services to their customers. This includes the employees, contractors, vendors, and other partners who are involved in the delivery of services.

Transformation process: Atmos Energy provides natural gas and energy services to their customers by delivering the energy in a safe and reliable manner. This includes an ongoing effort to maintain and improve the infrastructure, as well as an effort to provide customers with the best service possible.

World view: Atmos Energy believes in providing the best services possible to their customers with a commitment to sustainability and safety. They strive to be a responsible corporate citizen by taking steps to reduce their environmental impact and ensure that their customers have access to reliable energy sources.

Owners: Atmos Energy is owned by a consortium of private investors, including institutional investors and individual shareholders.

Environmental constraints: Atmos Energy is subject to environmental regulations and must adhere to all applicable laws and regulations. These regulations include those related to emissions, safety, and other environmental factors. In addition, they must also take into account the effects of their activities on the environment and strive to reduce their environmental impact.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Atmos Energy business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

Strengths

Below is a list of the strengths we have identified for the business:

1. Atmos Energy is one of the largest natural gas distributors in the United States with operations in eight states.

2. The company has a strong track record of operational and financial performance.

3. Atmos Energy has a well-established relationships with its customers and regulators.

4. The company has a strong safety record.

Opportunities

Below is a list of opportunities we have identified for the business:

1. Increase customer engagement: Atmos Energy should focus on enhancing customer experience by introducing innovative methods such as online billing and payment services, mobile app, customer loyalty programs, and online chat support. This will help to increase customer engagement and satisfaction.

2. Expand renewable energy portfolio: Atmos Energy should focus on increasing its renewable energy sources such as wind, solar and geothermal. This will help the company to reduce its reliance on fossil fuels and reduce carbon emissions.

3. Improve infrastructure: Atmos Energy should focus on investing in infrastructure to improve efficiency and reliability. This includes ongoing investments in infrastructure such as pipelines and storage tanks, as well as upgrades to existing infrastructure.

4. Increase safety and compliance: Atmos Energy should focus on increasing safety and compliance by implementing safety protocols, improving emergency response plans, and training employees on safety procedures. This will help to protect employees, customers, and the environment.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Lack of geographic diversity: Atmos Energy Corporation is heavily reliant on the US market, with over 90% of its revenues coming from the country. This leaves it exposed to adverse changes in the US economy.

2. Limited scale: Atmos Energy Corporation is a relatively small company, with a market capitalization of around $5 billion. This limits its ability to compete against larger rivals.

3. High debt levels: Atmos Energy Corporation has a debt-to-equity ratio of over 2.5, which is relatively high. This increases the company's financial risks.

4. Dependence on weather: Atmos Energy Corporation's earnings are highly dependent on weather conditions, as demand for natural gas varies significantly in different seasons. This makes the company's earnings somewhat volatile.

Threats

Below is a list of the threats we have identified for the business:

1. Increased competition in the natural gas sector: As more and more companies try to enter the natural gas sector, Atmos Energy may face an increased level of competition which could impact their market share.

2. Risk of cyber-attacks: Atmos Energy's IT infrastructure is vulnerable to cyber-attacks, which could result in data breaches, system outages and financial losses.

3. Regulatory changes: Changes in regulatory policies could increase Atmos Energy's costs and reduce their profitability.

4. Aging infrastructure: Atmos Energy's infrastructure is aging and in need of repairs and upgrades, which could result in higher operational costs and decreased efficiency.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for Atmos Energy. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Atmos Energy, as well as areas where the company needs to improve its operations or strategy.

Company: Atmos Energy is a natural gas distributor with an extensive network of pipelines and storage facilities that serve over 3 million customers in 8 states throughout the US. They have been in business for over 100 years and are committed to providing safe and reliable energy to their customers.

Collaborators: Atmos Energy works with a variety of partners, including local governments, energy suppliers, and other energy companies. They also collaborate with energy research organisations to ensure their services remain safe and reliable.

Customers: Atmos Energy’s customers consist of residential and commercial customers. They provide natural gas to households, businesses, and industrial customers.

Competitors: Other natural gas suppliers in the US include, but are not limited to, Xcel Energy, Cascade Natural Gas, and Southern California Gas.

Content: Atmos Energy is committed to providing both safety and reliability to their customers. They offer a variety of services, such as pipeline construction and maintenance, natural gas storage, and customer service. They also provide customers with educational opportunities and resources on energy conservation and other various topics.

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

Mission
Objectives
Strategy
Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Industry score:

A	The industry is amongst the most innovative; with the leading players all driving the sector forward. Example industry: PaaS
B	The industry and its leading players have a good track record of innovation; and can quickly react to change. Example industry: Pharmaceutical
C	Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate. Example industry: FMCG
D	Businesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption. Example industry: Retail Banking
E	The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change. Example industry: Publishing

Company score:

1	The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2	The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3	The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4	The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5	The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.

The team at Platform Executive has judged Atmos Energy as having an innovation score of C2.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on Atmos Energy forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

Corporate websites
Proprietary research databases
SEC Filings
Corporate press releases
News articles
Financial data API's
Product-matching algorithm

Further Information

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Disclaimer

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 13th June 2023

Industry Keywords

Related keywords:

Energy Solutions Gas Distribution Pipeline Services Regulated Utility

Far Eastern New Century

SBA Communications