Atmos Energy Corporation Receives Approval to Acquire Assets of Louisiana Gas Service Company and LGS Natural Gas Company

Apr 18, 2001, 01:00 ET from Atmos Energy Corporation

    DALLAS, April 18 /PRNewswire/ -- Atmos Energy Corporation (NYSE:   ATO)
 today announced that the Louisiana Public Service Commission has voted to
 approve Atmos' acquisition of the assets of Louisiana Gas Service Company, a
 division of Citizens Communications Company (NYSE:   CZN), and LGS Natural Gas
 Company, a subsidiary of Citizens.  Louisiana Gas Service Company (LGS) serves
 approximately 279,000 natural gas distribution customers and is headquartered
 in Harvey, Louisiana.  LGS Natural Gas Company (LGSN) is an intrastate
 pipeline company that provides natural gas transportation service to
 industrial customers in portions of Louisiana.  Atmos expects to complete the
 acquisition of the LGS and LGSN assets by June 30, 2001.
     Atmos will purchase the assets of LGS and LGSN for $365 million.  The
 acquisition will be accounted for as a purchase and is expected to add
 $0.02 - $0.06 per diluted share in the first full year of operations.  Upon
 completion of the transaction, Atmos will become the largest natural gas
 distributor in the State of Louisiana and the 5th largest pure gas utility in
 the United States.  Atmos will serve approximately 1.4 million customers in
 11 states, including 359,000 customers in Louisiana.
     "We are pleased that the Louisiana Public Service Commission has voted to
 approve the acquisition of LGS and LGSN and we expect to finalize the
 transaction in just a few weeks," said Robert W. Best, Chairman, President and
 Chief Executive Officer of Atmos Energy Corporation.  "We are eager to begin
 serving more customers in the State of Louisiana and remain committed to
 delivering exceptional customer service to each of our new customers.  We are
 also anxious to begin working with the dedicated employees of LGS and LGSN who
 have greatly contributed to the success of both companies."
     Louisiana Gas Service Company provides natural gas distribution service to
 residential and commercial customers in approximately 190 communities in
 southeastern and northern Louisiana, an area with a combined population of
 more than 600,000.  Its service territory includes the suburban areas of
 metropolitan New Orleans (excluding Orleans Parish), the north shore of Lake
 Pontchartrain and the Monroe/West Monroe metropolitan area.
 
     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 18 /PRNewswire/ -- Atmos Energy Corporation (NYSE:   ATO)
 today announced that the Louisiana Public Service Commission has voted to
 approve Atmos' acquisition of the assets of Louisiana Gas Service Company, a
 division of Citizens Communications Company (NYSE:   CZN), and LGS Natural Gas
 Company, a subsidiary of Citizens.  Louisiana Gas Service Company (LGS) serves
 approximately 279,000 natural gas distribution customers and is headquartered
 in Harvey, Louisiana.  LGS Natural Gas Company (LGSN) is an intrastate
 pipeline company that provides natural gas transportation service to
 industrial customers in portions of Louisiana.  Atmos expects to complete the
 acquisition of the LGS and LGSN assets by June 30, 2001.
     Atmos will purchase the assets of LGS and LGSN for $365 million.  The
 acquisition will be accounted for as a purchase and is expected to add
 $0.02 - $0.06 per diluted share in the first full year of operations.  Upon
 completion of the transaction, Atmos will become the largest natural gas
 distributor in the State of Louisiana and the 5th largest pure gas utility in
 the United States.  Atmos will serve approximately 1.4 million customers in
 11 states, including 359,000 customers in Louisiana.
     "We are pleased that the Louisiana Public Service Commission has voted to
 approve the acquisition of LGS and LGSN and we expect to finalize the
 transaction in just a few weeks," said Robert W. Best, Chairman, President and
 Chief Executive Officer of Atmos Energy Corporation.  "We are eager to begin
 serving more customers in the State of Louisiana and remain committed to
 delivering exceptional customer service to each of our new customers.  We are
 also anxious to begin working with the dedicated employees of LGS and LGSN who
 have greatly contributed to the success of both companies."
     Louisiana Gas Service Company provides natural gas distribution service to
 residential and commercial customers in approximately 190 communities in
 southeastern and northern Louisiana, an area with a combined population of
 more than 600,000.  Its service territory includes the suburban areas of
 metropolitan New Orleans (excluding Orleans Parish), the north shore of Lake
 Pontchartrain and the Monroe/West Monroe metropolitan area.
 
     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