ATO

Atmos Energy Corporation

DOUBTFUL — METHODS DIFFERstock

Is ATO Halal?

Largest US natural-gas-only distribution utility — the service is generally permissible and the latest asset-based ratios pass, but gross interest income and activity allocation are not disclosed.

What You Should Know

Atmos Energy Corporation is the largest fully regulated, natural-gas-only distribution utility in the United States, delivering natural gas to residential, commercial and industrial customers across eight states, with a smaller pipeline-and-storage segment in Texas. Distributing natural gas is generally permissible, while gas infrastructure, end use and environmental obligations remain qualitative questions. Atmos's March 31, 2026 Form 10-Q reports $30,380.096 million of assets, $9,626.802 million of debt, $125.694 million of cash, $48.4 million of available-for-sale debt securities, $644.63 million of accounts receivable and $1,962.402 million of quarterly revenue. Debt/assets is 31.69%, liquidity/assets is 0.57% and receivables-plus-cash/assets is 2.54%, below the examined asset limits; gross interest income is not separately disclosed, so the result remains methodology-dependent.

⚠️ Concerns

  • Debt/assets is 31.69% under the examined asset limits but can differ under market-cap methods
  • The regulated gas model is structurally capital-intensive and conventionally financed
  • Gross interest income is not separately disclosed, so no purification amount is inferred
  • Pipeline, storage, fuel mix and environmental exposures require qualitative review
  • Verdict is ratio-and-disclosure dependent — re-screen against the next filing

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
31.69%Within limit
Below 33.333% under FTSE Yasaar

9,626.802 / 30,380.096

Cash + interest-bearing securities / assets
0.57%Within limit
Below 33.333% under FTSE Yasaar

174.094 / 30,380.096

Receivables + cash / assets
2.54%Within limit
Below 50% under FTSE Yasaar

770.324 / 30,380.096

FTSE Yasaar
v4.6, February 2026
Financial
Incomplete
Overall
Incomplete

Debt/assets is 31.69%, liquidity/assets is 0.57% and receivables plus cash/assets is 2.54%; the debt and asset ratios pass the examined limits, but gross interest income is unavailable.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Incomplete

Debt/assets is 31.69%, liquidity/assets is 0.57% and receivables plus cash/assets is 2.54%, below the examined MSCI total-assets limits; activity and interest-income classification remain incomplete.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Incomplete

Debt/assets and liquidity/assets are below the examined Malaysia SAC limits; activity and gross interest-income classification remain incomplete, and this is not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Incomplete

A licensed historical market-cap series is not stored, so market-cap denominator methods are not estimated from a current spot price.

Business-activity disclosure

Atmos Energy distributes natural gas through regulated utility operations and owns a smaller pipeline-and-storage business. Energy distribution is generally permissible at the activity level, while gas infrastructure, conventional financing, derivatives and environmental obligations require continuing review.

Limitation: The filing does not allocate revenue into a universal prohibited-activity numerator or separately disclose gross interest income for the operating segments.

Purification

Gross interest income is unavailable in the extracted filing facts, so no purification amount or scholar-approved percentage is inferred.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Atmos Energy's March 31, 2026 Form 10-Q.
  • Debt uses $9,626.802 million of long-term debt and capital lease obligations including current maturities; operating leases are excluded.
  • Cash and cash equivalents are $125.694 million. Available-for-sale debt securities at amortized cost of $48.4 million are included; equity and derivative assets are excluded.
  • Accounts receivable, net is $644.63 million and the latest three-month revenue is $1,962.402 million; the filing also reports $3,304.987 million for the six-month period.
  • Gross interest income is not separately disclosed in the extracted filing facts; interest expense and hedge results are not substituted as income.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

🧾
Own ATO? Purify your portfolio.
Per-holding purification amounts, zakat on your shares, and halal alternatives for flagged holdings — a personalized report prepared for you within 48 hours.
Order Your Report — $49 →
Track ATO and 30,000+ stocks' live compliance status with Islamicly — 50% off with code ZAKAT50.Get Islamicly →

Want to screen more assets?

Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.

Go to Halal Checker →