Atmos Energy is a regulated natural gas utility that distributes natural gas to residential, commercial and industrial customers across several states, primarily concentrated in Texas along with other parts of the central and southern United States. As a regulated utility, its earnings are tied to a rate of return approved by state regulators on the capital it invests in its gas distribution pipelines and infrastructure, providing predictable earnings in exchange for accepting limits on customer rates. The company has invested heavily in replacing aging pipeline infrastructure in recent years, a modernization program that both improves safety and generates rate base growth that regulators typically allow the company to earn a return on. Atmos Energy's business is relatively insulated from commodity natural gas price swings compared to gas producers, since its regulated distribution model is designed to pass through gas costs to customers while earning its return on the distribution infrastructure itself.