Atmos Energy Corporation Completes Acquisition of Woodward Marketing, LLC

Apr 02, 2001, 01:00 ET from Atmos Energy Corporation

    DALLAS, April 2 /PRNewswire/ -- Atmos Energy Corporation (NYSE:   ATO) today
 announced that it completed the acquisition of the remaining 55 percent
 interest in Woodward Marketing, LLC on April 1, 2001.  Atmos acquired the
 interest in exchange for 1,423,193 restricted shares of Atmos common stock.
 Prior to the completion of the transaction, Atmos owned a 45 percent equity
 interest in Woodward.  The acquisition of the remaining interest in Woodward
 is expected to add about $0.04 - $0.06 to consolidated earnings per share
 during fiscal 2002.
     Of the total shares issued, 960,000 shares are subject to adjustment if
 the Atmos share price does not maintain a minimum of $25 per share for
 30 consecutive days within a four-year window, beginning one year from the
 date of closing.  At the closing price of $23.80 on March 30, 2001, the
 1,423,193 Atmos shares had an indicated market value of approximately
 $33.9 million.
     J. D. Woodward, President of Woodward Marketing, LLC, was named Senior
 Vice President of Non-Utility Operations for Atmos concurrent with closing of
 the transaction.  "We are very pleased to have J. D. join our senior
 management team.  We are confident that his leadership and ability will
 contribute greatly to the continued growth and success of Woodward Marketing
 and our non-utility operations," said Robert W. Best, Chairman, President and
 CEO of Atmos Energy Corporation.
 
                  Pending Acquisition of Louisiana Gas Service
 
     Atmos expects to complete the acquisition of the assets of Louisiana Gas
 Service and LGS Natural on or about July 1, 2001, assuming the acquisition is
 approved at the Louisiana Public Service Commission's next meeting on
 April 18, 2001.  The acquisition is expected to be accretive during the first
 full year of operations and add about $0.02 - $0.06 per diluted share.  If the
 acquisition is completed by July 1, 2001, it will result in dilution of about
 $0.07 - $0.10 per diluted share for Atmos' 2001 fourth quarter.
 
             2001 Second Quarter and Fiscal Year Earnings Guidance
 
     During the webcast of Atmos' 2001 first quarter earnings conference call,
 the Company provided earnings guidance for its 2001 second quarter in the
 range of $1.20 - $1.25 per share.  At that time, Atmos expected to be able to
 offset the dilution related to the 6.7 million shares issued during its public
 equity offering.  The impact of dilution is expected to be about $0.20 per
 diluted share in the second quarter.  The Company does not expect to be able
 to overcome the dilution in the second quarter, but remains comfortable with
 its guidance of $1.20 - $1.25, excluding dilution.  For fiscal 2001, the
 Company expects to earn about $1.60 - $1.75 per diluted share, including
 dilution of about $0.15 related to the public equity offering and the
 acquisition of LGS.  This compares to earnings of $1.14 per diluted share in
 fiscal 2000.  At this earnings level for 2001, the Company will achieve its
 targeted range for earnings, excluding dilution.
 
                           Forward-Looking Statements
 
     The matters discussed or incorporated by reference in this release may
 contain "forward-looking statements" within the meaning of Section 27A of the
 Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934.
 All statements other than statements of historical facts included in this
 release are forward-looking statements made in good faith by the Company, and
 are intended to qualify for the safe harbor from liability established by the
 Private Securities Litigation Reform Act of 1995.  When used in this release
 or in any of the Company's other documents or oral presentations, the words
 "anticipate," "expect", "estimate", "plans", "believes", "objective,"
 "forecast," "goal" or similar words are intended to identify forward-looking
 statements.  Such forward-looking statements are subject to risks and
 uncertainties that could cause actual results to differ materially from those
 expressed or implied in the statements relating to the Company's earnings per
 share projections, operations, markets, services, rates, recovery of costs,
 availability of gas supply, and other factors.  A discussion of these risks
 and uncertainties may be found in the Company's Form 10-K for the year ended
 September 30, 2000.  While the Company believes these forward-looking
 statements to be reasonable, there can be no assurance that they will
 approximate actual experience or that the expectations derived from them will
 be realized.  The Company undertakes no obligation to update or revise our
 forward-looking statements, whether as a result of new information, future
 events or otherwise.
     Atmos Energy Corporation of Dallas, Texas distributes natural gas to more
 than one million customers in 11 states through its operating divisions-
 Energas Company, Greeley Gas Company, Trans Louisiana Gas Company, United
 Cities Gas Company, and Western Kentucky Gas Company.  The Company also owns
 Woodward Marketing, LLC, a natural gas services company located in Houston,
 Texas.  In addition to Woodward, Atmos' non-utility operations include
 underground storage fields, the sale of other products and services, and an
 indirect equity interest in Heritage Propane Partners, the nation's fifth
 largest retail propane marketer.  For more information about Atmos, please
 visit the Company's website at www.atmosenergy.com.
 
 

SOURCE Atmos Energy Corporation
    DALLAS, April 2 /PRNewswire/ -- Atmos Energy Corporation (NYSE:   ATO) today
 announced that it completed the acquisition of the remaining 55 percent
 interest in Woodward Marketing, LLC on April 1, 2001.  Atmos acquired the
 interest in exchange for 1,423,193 restricted shares of Atmos common stock.
 Prior to the completion of the transaction, Atmos owned a 45 percent equity
 interest in Woodward.  The acquisition of the remaining interest in Woodward
 is expected to add about $0.04 - $0.06 to consolidated earnings per share
 during fiscal 2002.
     Of the total shares issued, 960,000 shares are subject to adjustment if
 the Atmos share price does not maintain a minimum of $25 per share for
 30 consecutive days within a four-year window, beginning one year from the
 date of closing.  At the closing price of $23.80 on March 30, 2001, the
 1,423,193 Atmos shares had an indicated market value of approximately
 $33.9 million.
     J. D. Woodward, President of Woodward Marketing, LLC, was named Senior
 Vice President of Non-Utility Operations for Atmos concurrent with closing of
 the transaction.  "We are very pleased to have J. D. join our senior
 management team.  We are confident that his leadership and ability will
 contribute greatly to the continued growth and success of Woodward Marketing
 and our non-utility operations," said Robert W. Best, Chairman, President and
 CEO of Atmos Energy Corporation.
 
                  Pending Acquisition of Louisiana Gas Service
 
     Atmos expects to complete the acquisition of the assets of Louisiana Gas
 Service and LGS Natural on or about July 1, 2001, assuming the acquisition is
 approved at the Louisiana Public Service Commission's next meeting on
 April 18, 2001.  The acquisition is expected to be accretive during the first
 full year of operations and add about $0.02 - $0.06 per diluted share.  If the
 acquisition is completed by July 1, 2001, it will result in dilution of about
 $0.07 - $0.10 per diluted share for Atmos' 2001 fourth quarter.
 
             2001 Second Quarter and Fiscal Year Earnings Guidance
 
     During the webcast of Atmos' 2001 first quarter earnings conference call,
 the Company provided earnings guidance for its 2001 second quarter in the
 range of $1.20 - $1.25 per share.  At that time, Atmos expected to be able to
 offset the dilution related to the 6.7 million shares issued during its public
 equity offering.  The impact of dilution is expected to be about $0.20 per
 diluted share in the second quarter.  The Company does not expect to be able
 to overcome the dilution in the second quarter, but remains comfortable with
 its guidance of $1.20 - $1.25, excluding dilution.  For fiscal 2001, the
 Company expects to earn about $1.60 - $1.75 per diluted share, including
 dilution of about $0.15 related to the public equity offering and the
 acquisition of LGS.  This compares to earnings of $1.14 per diluted share in
 fiscal 2000.  At this earnings level for 2001, the Company will achieve its
 targeted range for earnings, excluding dilution.
 
                           Forward-Looking Statements
 
     The matters discussed or incorporated by reference in this release may
 contain "forward-looking statements" within the meaning of Section 27A of the
 Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934.
 All statements other than statements of historical facts included in this
 release are forward-looking statements made in good faith by the Company, and
 are intended to qualify for the safe harbor from liability established by the
 Private Securities Litigation Reform Act of 1995.  When used in this release
 or in any of the Company's other documents or oral presentations, the words
 "anticipate," "expect", "estimate", "plans", "believes", "objective,"
 "forecast," "goal" or similar words are intended to identify forward-looking
 statements.  Such forward-looking statements are subject to risks and
 uncertainties that could cause actual results to differ materially from those
 expressed or implied in the statements relating to the Company's earnings per
 share projections, operations, markets, services, rates, recovery of costs,
 availability of gas supply, and other factors.  A discussion of these risks
 and uncertainties may be found in the Company's Form 10-K for the year ended
 September 30, 2000.  While the Company believes these forward-looking
 statements to be reasonable, there can be no assurance that they will
 approximate actual experience or that the expectations derived from them will
 be realized.  The Company undertakes no obligation to update or revise our
 forward-looking statements, whether as a result of new information, future
 events or otherwise.
     Atmos Energy Corporation of Dallas, Texas distributes natural gas to more
 than one million customers in 11 states through its operating divisions-
 Energas Company, Greeley Gas Company, Trans Louisiana Gas Company, United
 Cities Gas Company, and Western Kentucky Gas Company.  The Company also owns
 Woodward Marketing, LLC, a natural gas services company located in Houston,
 Texas.  In addition to Woodward, Atmos' non-utility operations include
 underground storage fields, the sale of other products and services, and an
 indirect equity interest in Heritage Propane Partners, the nation's fifth
 largest retail propane marketer.  For more information about Atmos, please
 visit the Company's website at www.atmosenergy.com.
 
 SOURCE  Atmos Energy Corporation