Industry Overview - Demand for natural gas is increasing in the U.S. and globally due to its clean-burning properties, driven by AI data centers, reshoring of industries, electric vehicle usage, and higher domestic demand during cold winters [1][11] - The U.S. Energy Information Administration (EIA) projects that natural gas will account for 40% of U.S. electricity generation in 2025 and 2026, as coal-fired generation units are phased out [2] - The natural gas distribution industry is crucial for delivering gas through a network of 2.5 million miles of pipelines across the U.S. [5] Investment Opportunities - Capital-intensive gas distribution utilities like Atmos Energy Corporation (ATO) and Spire Inc. (SR) are recommended for investment due to rising natural gas demand and favorable market conditions [3][8] - ATO plans to invest $26 billion by 2030, targeting 6-8% annual earnings growth and maintaining steady dividends [11][12] - SR has increased its capital investment plan to $11.2 billion, aiming for 5-7% adjusted EPS growth through fiscal 2035 [11][14] Financial Performance - ATO's current dividend yield is 2.34%, outperforming the S&P 500 composite's yield of 1.4%, with a beta of 0.75 indicating lower volatility [13] - SR's current dividend yield is 3.93%, with a long-term earnings growth rate projected at 10.54% and a beta of 0.66 [17] - Both companies have shown strong performance, outperforming the Zacks Utilities sector over the past six months [9]