AGL Resources Reports Strong Second-Quarter Results

Key Drivers are Accelerated Integration of VNG and Strong Performances

From Utility and Energy Services Businesses



Apr 25, 2001, 01:00 ET from AGL Resources

    ATLANTA, April 25 /PRNewswire/ -- Marking yet another quarter of sustained
 growth, AGL Resources (NYSE:   ATG) reported earnings of $0.83 per share,
 excluding one-time items, for the second fiscal quarter ended March 31, 2001,
 more than doubling its previous-year earnings of $0.41 for the same period.
 These results exclude a one-time, after-tax gain of $0.13 per share from the
 previously announced sale of its Utilipro customer care subsidiary.  Including
 the effects of this gain, earnings for the second quarter of fiscal 2001 were
 $0.96 per share.
     The key drivers of earnings growth for the second quarter include
 continued operational efficiencies in the company's utility operations; strong
 customer growth coupled with the effects of colder weather in the company's
 retail marketing unit; and solid performance in the company's wholesale energy
 trading activities.  The company's utility performance included
 lower-than-anticipated operation and maintenance expenses at Virginia Natural
 Gas, primarily driven by the accelerated integration of VNG (acquired in
 October 2000) into AGL Resources' utility operations.
     "Our performance shows we are hitting our growth targets and delivering
 the results we have promised our investors," said Paula G. Rosput, AGL
 Resources President and Chief Executive Officer.  "We're making tremendous
 progress in executing our strategy and distinguishing ourselves from our
 traditional peer group.  We're just not the same old gas distributor."
     During the second quarter of fiscal 2001, the company generated net income
 from operations of $45.2 million, compared with $22.7 million for the same
 period in fiscal 2000.  Operating revenues for the quarter were $350.6 million
 in fiscal 2001, compared with $160.1 million in fiscal 2000.
     "We have now exceeded consensus earnings expectations for six straight
 quarters," said Donald P. Weinstein, Senior Vice President and Chief Financial
 Officer.  "Our excellent financial performance this quarter is further proof
 that we are consistently improving our operations and building momentum around
 our growth strategy."
 
     Six-Month Results
     For the six months ended March 31, 2001, core earnings were $67.7 million,
 or $1.25 per share, excluding one-time items, a 70 percent increase over the
 $39.8 million, or $0.71 per share, the company earned for the same period last
 year.  Including the effects of the one-time gain in the second quarter 2001,
 net income was $1.38 per share (basic) for the six months ended March 31,
 2001, compared with $0.71 per share for the same period last fiscal year.
 Operating revenues for the six months ended March 31, 2001, were
 $645.4 million, compared with $342.4 million for the same period last fiscal
 year.
 
     Earnings Outlook
     Looking to the future, Ms. Rosput said:  "As we have consistently
 communicated to the investment community, we have a sound growth strategy
 aimed at delivering double-digit earnings growth for this fiscal year.  Given
 the year-to-date performance of our business units in executing this strategy,
 we are comfortable with the upper range of current analysts' estimates of
 $1.40 to $1.46 per share for fiscal 2001, exclusive of weather impacts and
 one-time items.  We obviously will keep you informed of any changes to this
 earnings guidance throughout the remainder of this year."
 
     AGL Resources Inc. is a regional holding company for energy and
 infrastructure related businesses in the Southeast.  The company is the
 second-largest natural gas-only distribution company in the United States and
 serves more than 1.8 million customers throughout Georgia; Chattanooga,
 Tennessee; and southeastern Virginia.  AGL Resources also is engaged through
 subsidiaries and partnerships in other businesses, including
 telecommunications, retail energy marketing, wholesale energy services, and
 wholesale and retail propane sales.  More information about the company is
 available on the Internet at www.aglresources.com .
 
     This press release contains forward-looking statements.  AGL Resources
 wishes to caution readers that the assumptions, which form the basis for the
 forward-looking statements, include many factors that are beyond AGL
 Resources' ability to control or estimate precisely.  Those factors include,
 but are not limited to, the following:  changes in the price and demand for
 natural gas; the impact of changes in weather; the impact of changes in state
 and federal legislation and regulation on the company and the natural gas
 industry; the effects of competition, particularly in markets where prices and
 providers historically have been regulated; financial market conditions; and
 other risks described in our documents on file with the Securities and
 Exchange Commission.
 
     Earnings Conference Call Webcast:  The AGL Resources 2001 Second Quarter
 Earnings Conference Call, scheduled for Wednesday, April 25, at 8:30 a.m.
 (EDT), can be accessed via the AGL Resources website at www.aglresources.com .
 The call will address the company's financial results for the second quarter
 and first six months of fiscal 2001, as well as the outlook for the full
 fiscal year.
 
 
                  AGL RE

SOURCES INC. AND SUBSIDIARY COMPANIES CONSOLIDATED FINANCIAL INFORMATION March 31, 2001 (Unaudited) In millions, except per share data 3 Months Ended 6 Months Ended March 31, March 31, 2001 2000 2001 2000 Operating Revenues $350.6 $160.1 $645.4 $342.4 Cost of Sales 174.4 30.7 305.1 85.3 Operating Margin 176.2 129.4 340.3 257.1 Other Operating Expenses 111.6 91.9 220.4 186.1 Operating Income 64.6 37.5 119.9 71.0 Other Income 42.2 12.4 47.4 19.3 Income before Interest and Income Taxes 106.8 49.9 167.3 90.3 Interest Expense and Preferred Dividends Interest Expense 23.9 12.4 47.1 24.6 Dividends on Preferred Stock of Sub. 1.6 1.6 3.1 3.1 Total Interest Expense and Preferred Div. 25.5 14.0 50.2 27.7 Income Before Income Taxes 81.3 35.9 117.1 62.6 Income Taxes 29.0 13.2 42.3 22.8 Net Income $52.3 $22.7 $74.8 $39.8 Earnings Per Share Basic $0.96 $0.41 $1.38 $0.71 Diluted $0.96 $0.41 $1.37 $0.71 Avg. Number of Shares Outstanding Basic 54.3 55.5 54.2 56.2 Diluted 54.6 55.5 54.5 56.2 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X23715435

SOURCE AGL Resources
    ATLANTA, April 25 /PRNewswire/ -- Marking yet another quarter of sustained
 growth, AGL Resources (NYSE:   ATG) reported earnings of $0.83 per share,
 excluding one-time items, for the second fiscal quarter ended March 31, 2001,
 more than doubling its previous-year earnings of $0.41 for the same period.
 These results exclude a one-time, after-tax gain of $0.13 per share from the
 previously announced sale of its Utilipro customer care subsidiary.  Including
 the effects of this gain, earnings for the second quarter of fiscal 2001 were
 $0.96 per share.
     The key drivers of earnings growth for the second quarter include
 continued operational efficiencies in the company's utility operations; strong
 customer growth coupled with the effects of colder weather in the company's
 retail marketing unit; and solid performance in the company's wholesale energy
 trading activities.  The company's utility performance included
 lower-than-anticipated operation and maintenance expenses at Virginia Natural
 Gas, primarily driven by the accelerated integration of VNG (acquired in
 October 2000) into AGL Resources' utility operations.
     "Our performance shows we are hitting our growth targets and delivering
 the results we have promised our investors," said Paula G. Rosput, AGL
 Resources President and Chief Executive Officer.  "We're making tremendous
 progress in executing our strategy and distinguishing ourselves from our
 traditional peer group.  We're just not the same old gas distributor."
     During the second quarter of fiscal 2001, the company generated net income
 from operations of $45.2 million, compared with $22.7 million for the same
 period in fiscal 2000.  Operating revenues for the quarter were $350.6 million
 in fiscal 2001, compared with $160.1 million in fiscal 2000.
     "We have now exceeded consensus earnings expectations for six straight
 quarters," said Donald P. Weinstein, Senior Vice President and Chief Financial
 Officer.  "Our excellent financial performance this quarter is further proof
 that we are consistently improving our operations and building momentum around
 our growth strategy."
 
     Six-Month Results
     For the six months ended March 31, 2001, core earnings were $67.7 million,
 or $1.25 per share, excluding one-time items, a 70 percent increase over the
 $39.8 million, or $0.71 per share, the company earned for the same period last
 year.  Including the effects of the one-time gain in the second quarter 2001,
 net income was $1.38 per share (basic) for the six months ended March 31,
 2001, compared with $0.71 per share for the same period last fiscal year.
 Operating revenues for the six months ended March 31, 2001, were
 $645.4 million, compared with $342.4 million for the same period last fiscal
 year.
 
     Earnings Outlook
     Looking to the future, Ms. Rosput said:  "As we have consistently
 communicated to the investment community, we have a sound growth strategy
 aimed at delivering double-digit earnings growth for this fiscal year.  Given
 the year-to-date performance of our business units in executing this strategy,
 we are comfortable with the upper range of current analysts' estimates of
 $1.40 to $1.46 per share for fiscal 2001, exclusive of weather impacts and
 one-time items.  We obviously will keep you informed of any changes to this
 earnings guidance throughout the remainder of this year."
 
     AGL Resources Inc. is a regional holding company for energy and
 infrastructure related businesses in the Southeast.  The company is the
 second-largest natural gas-only distribution company in the United States and
 serves more than 1.8 million customers throughout Georgia; Chattanooga,
 Tennessee; and southeastern Virginia.  AGL Resources also is engaged through
 subsidiaries and partnerships in other businesses, including
 telecommunications, retail energy marketing, wholesale energy services, and
 wholesale and retail propane sales.  More information about the company is
 available on the Internet at www.aglresources.com .
 
     This press release contains forward-looking statements.  AGL Resources
 wishes to caution readers that the assumptions, which form the basis for the
 forward-looking statements, include many factors that are beyond AGL
 Resources' ability to control or estimate precisely.  Those factors include,
 but are not limited to, the following:  changes in the price and demand for
 natural gas; the impact of changes in weather; the impact of changes in state
 and federal legislation and regulation on the company and the natural gas
 industry; the effects of competition, particularly in markets where prices and
 providers historically have been regulated; financial market conditions; and
 other risks described in our documents on file with the Securities and
 Exchange Commission.
 
     Earnings Conference Call Webcast:  The AGL Resources 2001 Second Quarter
 Earnings Conference Call, scheduled for Wednesday, April 25, at 8:30 a.m.
 (EDT), can be accessed via the AGL Resources website at www.aglresources.com .
 The call will address the company's financial results for the second quarter
 and first six months of fiscal 2001, as well as the outlook for the full
 fiscal year.
 
 
                  AGL RESOURCES INC. AND SUBSIDIARY COMPANIES
                       CONSOLIDATED FINANCIAL INFORMATION
                                 March 31, 2001
                                  (Unaudited)
                       In millions, except per share data
 
                                 3 Months Ended             6 Months Ended
                                    March 31,                  March 31,
                               2001          2000         2001          2000
 
     Operating Revenues      $350.6        $160.1       $645.4        $342.4
      Cost of Sales           174.4          30.7        305.1          85.3
     Operating Margin         176.2         129.4        340.3         257.1
 
     Other Operating
      Expenses                111.6          91.9        220.4         186.1
       Operating Income        64.6          37.5        119.9          71.0
 
     Other Income              42.2          12.4         47.4          19.3
      Income before Interest
       and Income Taxes       106.8          49.9        167.3          90.3
 
     Interest Expense
      and Preferred Dividends
       Interest Expense        23.9          12.4         47.1          24.6
       Dividends on Preferred
        Stock of Sub.           1.6           1.6          3.1           3.1
     Total Interest Expense
      and Preferred Div.       25.5          14.0         50.2          27.7
 
     Income Before
      Income Taxes             81.3          35.9        117.1          62.6
 
     Income Taxes              29.0          13.2         42.3          22.8
 
     Net Income               $52.3         $22.7        $74.8         $39.8
 
     Earnings Per Share
      Basic                   $0.96         $0.41        $1.38         $0.71
      Diluted                 $0.96         $0.41        $1.37         $0.71
 
     Avg. Number of Shares Outstanding
      Basic                    54.3          55.5         54.2          56.2
      Diluted                  54.6          55.5         54.5          56.2
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X23715435
 
 SOURCE  AGL Resources