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Today's Exclusive Content Utility Gas Inflation Is Soaring. This Stock Is a Clear WinnerAuthor: Jordan Chussler. First Published: 1/20/2026. 
Key Takeaways - Last month’s Consumer Price Index report showed inflation for piped utility has increased 10.8% year-over-year.
- That bodes well for Atmos Energy, the largest natural-gas-only utility in the United States.
- Over the past year, the stock’s 17% gain has outperformed the S&P 500 while its dividend is on the verge of joining an exclusive club.
On Jan. 13, the U.S. Bureau of Labor Statistics released December's Consumer Price Index data, showing that headline inflation rose at a year-over-year (YOY) pace of 2.7%. While there were bright spots—gasoline prices fell 3.4% year over year—some figures were strikingly high. Piped utility gas services rose a staggering 10.8% YOY. The former CEO of Google calls it the most important thing to happen in 500, maybe 1,000 years of human society. A former U.S. Treasury Secretary says when your great-grandchildren write the history of this period, the political headlines will be the second or third story. The first story is something none of us have seen before. The dot-com collapse, global financial crisis, and COVID-19 pandemic don't compare to what's coming next. We may be entering a period of dramatic, almost unimaginable change. See the full warning and how to prepare now. This isn't good news for Americans facing already elevated utility bills, especially as the depths of winter increase home heating needs. But it could be positive for shareholders of the largest natural-gas-only utility in the United States. Why Utility Gas Prices Are Surging While a 10.8% YOY increase is concerning, this trend isn't limited to the U.S. Globally, utility gas prices are climbing amid surging demand, particularly for liquefied natural gas (LNG). The U.S. benchmark has provided some relief so far this year (down about 2.94%), while European and U.K. benchmarks have risen roughly 25% and 26%, respectively. U.S. LNG futures have surged about 17% since Jan. 16 amid an Arctic blast that has kept much of the mainland United States below freezing. Rising prices are being driven by limited domestic supply, higher production costs, and an uptick in U.S. LNG exports. On Jan. 2, Reuters reported that in 2025 the United States became the first country to export more than 100 million metric tons of LNG. Demand from AI data centers is another factor. Those facilities rely on LNG—among other energy inputs—for power generation and cooling. According to Natural Gas Intelligence, data centers currently consume more than 1 billion cubic feet per day (Bcf/d) of natural gas; forecasts project that could rise to between 4 Bcf/d and 8 Bcf/d by 2030. All of this should continue to benefit investors who recognize the supply-demand gap and the companies positioned to profit from higher prices. A 120-Year-Old Utility Company That Packs a Growth Punch Founded in 1906 as the Amarillo Gas Company, Atmos Energy (NYSE: ATO)—now headquartered in Dallas—delivers natural gas to more than 3.3 million residential, commercial, and industrial customers across nine states through an extensive pipeline network for heating, cooking, and industrial uses. The utility serves about 1,400 communities from the Blue Ridge Mountains to the Rocky Mountains, offering gas delivery, system integrity and maintenance, storage and transmission connections, and customer programs including billing, conservation, and energy-efficiency initiatives. Over the past fiscal year, Atmos Energy's earnings per share (EPS) rose more than 9.2%, revenue grew nearly 13%, and net income increased almost 15%. That performance has helped ATO's stock remain in the "Green Zone," according to TradeSmith, for more than 12 months. The stock has gained over 17% during that period and more than 47% since the start of 2025. Meanwhile, the company continues to reward shareholders with a long-standing dividend. A Dividend Aristocrat With a 41-Year Track Record Utility stocks are often seen as defensive investments with modest price appreciation but relatively higher yields. Atmos Energy defies some of those stereotypes. Over the past year, ATO's gain has outpaced the S&P 500's roughly 14% return, behaving more like a growth stock. On the income side, Atmos Energy also performs: it yields 2.35% (about $4 per share annually) and has increased its payout for 41 consecutive years. ATO's annualized five-year dividend growth rate is 8.63%, and its dividend payout ratio of just over 53% is considered healthy and sustainable. What Wall Street Thinks About Atmos Energy Based on 14 analysts covering the stock, Atmos Energy carries a consensus Hold rating: three analysts rate it Buy, 11 rate it Hold, and none rate it Sell. Although the average 12-month price target implies only about 1.7% upside, ATO's trailing EPS of $7.49 and price-to-earnings (P/E) ratio of 22.75 imply expected earnings growth of roughly 7.7% next year (from $7.18 to $7.73 per share). Institutional ownership is high at 90.17%, with cumulative inflows of $4.62 billion versus outflows of $2.82 billion. Current short interest of 3.19% of the float suggests relatively little bearish betting against the natural gas utility giant. Atmos Energy scores higher than 88% of the companies evaluated by MarketBeat and ranks 26th out of 89 stocks in the utilities sector.
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