Atmos Energy Corporation Reports 49 Percent Increase in 2001 Second Quarter Net Income

Apr 25, 2001, 01:00 ET from Atmos Energy Corporation

    DALLAS, April 25 /PRNewswire/ -- Atmos Energy Corporation (NYSE:   ATO)
 today reported net income of $44.1 million for the second quarter ended
 March 31, 2001, a 49 percent increase compared to net income of $29.6 million
 for the same period last year.  Earnings for the quarter were $1.13 per
 diluted share compared to $0.94 per diluted share for the second quarter ended
 March 31, 2000.
     For the six months ended March 31, 2001, the Company reported net income
 of $67.0 million, a 53 percent increase over net income of $43.9 million for
 the same period in 2000.  Earnings for the six months ended March 31, 2001
 were $1.87 per diluted share compared to earnings of $1.40 per diluted share
 for the six months ended March 31, 2000.
 
                      Results for the 2001 Second Quarter
 
     Weather for Atmos' operations during the 2001 second quarter, excluding
 weather-normalized operations, was 2 percent colder than normal and 31 percent
 colder than the prior year.  Operating revenues for the quarter ended
 March 31, 2001 were $675.1 million compared to $314.2 million for the prior
 year.  The 115 percent increase in operating revenues was primarily the result
 of an increase in gas service sales volumes in 2001 due to colder weather and
 an increase in the average cost of gas per Mcf.  For the quarter ended
 March 31, 2001, the average cost of gas was $8.53 per Mcf compared to
 $3.36 per Mcf for the quarter ended March 31, 2000.
     Gross profit for the 2001 second quarter increased $20.2 million over the
 prior year.  The increase in gross profit was due primarily to an increase in
 gas service sales volumes, an increase in authorized rates and base charges,
 and the addition of 48,000 customers through the acquisition of ANG Missouri
 in May 2000.  Gross profit for the quarter was reduced $4.7 million related to
 the Company's former propane operations which were placed into a joint venture
 partnership in 2000.
     Operation and maintenance expenses for the 2001 second quarter declined
 $1.5 million compared to the same period last year.  The decline in 2001's
 second quarter O&M included a reduction of $1 million resulting from continued
 cost control initiatives and a reduction of $1.9 million in O&M and other
 expenses related to the Company's former propane assets which were placed into
 a joint venture partnership in 2000.  This reduction was partially offset
 during the quarter by a $1.4 million increase to the provision for doubtful
 accounts.
     Interest expense declined $1.2 million as a result of lower average
 outstanding debt balances during the quarter.  Miscellaneous income of
 $.3 million for the 2001 second quarter included equity in earnings from
 Heritage Propane of $2.6 million offset by $3.2 million for the amortization
 of weather hedges purchased for Texas and Louisiana.
     Equity in earnings from Woodward Marketing increased $4.7 million during
 the 2001 second quarter.  Accretion from the Woodward transaction was expected
 to add up to $0.07 per diluted share had the transaction closed during the
 second quarter as anticipated.  The closing did not occur until the Company's
 third quarter due to a delay in the required regulatory approval.
 
                Results for the Six Months Ended March 31, 2001
 
     Weather for Atmos' operations, excluding weather-normalized operations,
 for the six months ended March 31, 2001 was 11 percent colder than normal and
 37 percent colder than last year.  Operating revenues for the six months ended
 March 31, 2001 were $1.1 billion compared to $538.7 million for the prior
 year.  The 108 percent increase in operating revenues was primarily the result
 of an increase in gas service sales volumes due to colder weather and an
 increase in the average cost of gas per Mcf.  For the six months ended
 March 31, 2001, the average cost of gas was $7.50 per Mcf compared to
 $3.36 per Mcf for the six months ended March 31, 2000.
     Gross profit for the six months ended March 31, 2001 increased
 $40.6 million over the prior year.  The increase in gross profit was primarily
 due to an increase in gas service sales volumes, an increase in authorized
 rates and base charges, and the addition of 48,000 customers through the
 acquisition of ANG Missouri in May 2000.  Gross profit for the six months
 ended March 31, 2001 was reduced by $8.7 million related to the Company's
 former propane assets which were placed into a joint venture partnership in
 2000.
     Operation and maintenance expenses decreased $1 million for the six months
 ended March 31, 2001 compared to the same period last year.  The year-over-
 year decline included $5.3 million related to continued cost control
 initiatives and a reduction of $4.0 million related to the Company's former
 propane operations offset by an increase to the provision for doubtful
 accounts of $8.4 million.
     Miscellaneous expense for the six months ended March 31, 2001 was
 comprised primarily of $4.9 million for the amortization of weather hedges
 purchased for Texas and Louisiana partially offset by $2.9 million in equity
 in earnings from Heritage Propane.  Equity in earnings from Woodward Marketing
 increased $3.7 million for the six months ended March 31, 2001 compared to the
 same period last year.
     "We are extremely pleased with our financial performance for the 2001
 second quarter.  Our results reflect a growth in net income of 49 percent for
 the second quarter and 53 percent for the six months ended March 31, 2001,"
 said Robert W. Best, Chairman, President and CEO of Atmos Energy Corporation.
     "While favorable weather significantly contributed to our superior second
 quarter and year-to-date financial results, weather was not the only factor
 that positively impacted our performance.  Atmos has been focused on
 minimizing the effects of adverse weather on earnings and has successfully
 executed its business strategy to make that focus a reality.  For the
 2000 - 2001 heating season, Atmos purchased weather hedges for its Texas and
 Louisiana operations.  The hedges were designed to protect earnings from
 warmer than normal weather of 7 percent or more, while preserving the upside.
     "Atmos has continued to successfully execute its strategy of growth
 through acquisitions.  The Company added 48,000 new customers through the
 purchase of ANG Missouri in 2000 and in just a few weeks, Atmos will add
 another 280,000 customers when the purchase of the assets for Louisiana Gas
 Service Company and LGS Natural is completed.
     "Atmos has also been active and successful in the regulatory arena.
 During the past 15 months, Atmos has received approval for over $16.5 million
 dollars in additional revenue, and has received authorization for weather-
 normalized rates for its Kentucky operations.
     "We are continuing to grow our non-utility operations and we recently
 completed the acquisition of the remaining 55 percent of Woodward Marketing
 LLC.  We believe Woodward has the ability to increase its earnings by
 15 - 20 percent per year which will assist Atmos in growing consolidated
 earnings by at least 8 - 10 percent per year on average, including
 acquisitions.  Last year, Atmos enhanced its non-utility operations by placing
 its propane assets into a national propane partnership where the assets are
 being leveraged to create additional value for our shareholders," said Best.
 
                               Earnings Guidance
 
     Atmos expects 2001 third quarter earnings of $0.02 - $0.07 per diluted
 share, compared to a loss of $0.14 per diluted share for the same period last
 year.  Earnings for the 2001 fiscal year are expected to be $1.60 - $1.75 per
 diluted share, a year-over-year increase of more than 50 percent.
     With the purchase of the LGS and LGSN assets expected to be completed by
 June 30, 2001, the Company is expecting dilution in its 2001 fourth quarter of
 $0.07 - $0.10 per diluted share related to the timing of the transaction
 closing.  The Company's business is seasonal in nature and the fourth quarter
 does not contain enough heating degree days to generate sufficient revenues to
 offset expenses.
 
        Pending Asset Purchase of Louisiana Gas Service Company and LGSN
 
     Atmos expects to complete the purchase of the assets of Louisiana Gas
 Service Company (LGS) and LGS Natural Gas Company (LGSN) for $365 million by
 June 30, 2001.  The Louisiana Public Service Commission approved the purchase
 on April 18, 2001.  The transaction is expected to add $0.02 - $0.04 per
 diluted share in the first full year of operations.
 
                             Regulatory Proceedings
 
     Greeley Gas Company filed a $4.2 million rate case with the Colorado
 Public Utilities Commission in November 2000.  The Company expects a final
 decision in the case by May 2001.  Greeley serves about 91,400 customers in
 Colorado.
     United Cities Gas Company filed a $2.1 million rate case in Virginia in
 July 2000.  United Cities recently agreed to a $.5 million rate reduction,
 retroactive to January 2001.  New rates became effective in April 2001 for
 Virginia customers.  United Cities serves about 20,500 customers in Virginia.
     The Iowa Office of Public Counsel evaluates United Cities earnings for its
 Iowa operations each year based on the Company's FERC filing.  During its
 review of United Cities' 2000 filing, the Counsel recommended a reduction in
 rates.  United Cities agreed to a reduction of $.3 million and the new rates
 were effective March 2001.  United Cities serves about 4,600 customers in
 Iowa.
 
               Effects of Gas Costs on the Company's Gross Profit
 
     Changes in natural gas prices have no impact on the Company's gross
 profits from utility operations.  This is true because as regulated utilities,
 Atmos' business units are not authorized to profit from the sale of the
 natural gas commodity.  Therefore, changes in gas prices have no impact on the
 Company's gross profit.
     Regulated utilities are required to purchase adequate gas supplies for
 their customers.  They are also permitted to be reimbursed for gas purchases
 made on behalf of their customers, with no mark-up or profit added.
     A regulated utility earns its profit in proportion to the quantity of gas
 volumes delivered to its customers.  An increase in gas volumes delivered from
 one period to another should result in higher gross profits and earnings for a
 utility.
     Weather is the primary factor determining the amount of gas volumes
 delivered during any period.  When weather is colder, customers use more gas
 to heat their homes and businesses, which means more gas volumes are delivered
 by the utility.  Warmer weather has the opposite effect and results in fewer
 volumes consumed and delivered.
 
                           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's non-
 utility operations include Woodward Marketing, underground storage, the sale
 of retail 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 Energy Corporation, please visit the Company's
 website at www.atmosenergy.com.
 
 
      Atmos Energy Corporation
      Financial Highlights (Unaudited)
 
                                  Three Months Ended      Six Months Ended
     Statements of Income              March 31,              March 31,
     (000's except per share)      2001        2000        2001        2000
 
     Operating revenues          $675,113   $314,197   $1,117,903   $538,655
     Purchased gas cost           536,789    196,070      869,631    330,978
       Gross profit               138,324    118,127      248,272    207,677
 
     Operation & maintenance
      expense                      34,984     36,454       70,943     71,878
     Depreciation and
      amortization                 15,905     16,490       31,686     32,990
     Taxes, other than income      13,544      9,196       22,811     16,681
       Total operating expenses    64,433     62,140      125,440    121,549
 
     Operating income              73,891     55,987      122,832     86,128
     Equity in earnings of
      Woodward Marketing, LLC       6,022      1,355        8,062      4,387
     Miscellaneous income
      (expense)                       317        333       (2,070)     1,259
     Interest charges, net          9,817     11,027       22,063     22,244
 
     Income before income taxes    70,413     46,648      106,761     69,530
     Provision for income taxes    26,339     17,075       39,715     25,633
 
     Net income                   $44,074    $29,573      $67,046    $43,897
 
     Basic net income per share     $1.14      $ .94       $ 1.87      $1.41
 
     Diluted net income per share   $1.13      $ .94       $ 1.87      $1.40
 
     Cash dividends per share       $.290      $.285       $ .580      $.570
 
     Average shares outstanding:
       Basic                       38,815     31,332       35,780     31,226
       Diluted                     38,919     31,544       35,879     31,440
 
     Summary Net Income by
      Segment (000's)
     Utility                      $35,941    $26,486      $58,779    $37,590
     Non-Regulated                  8,133      3,087        8,267      6,307
       Consolidated net income    $44,074    $29,573      $67,046    $43,897
 
 
     Balance Sheet Items        Mar. 31,    Sept. 30,
      (000's)                     2001        2000
     Property, plant
      and equipment            $1,606,692 $1,579,803
     Net property, plant
      and equipment               987,743    982,346
     Total assets               1,452,126  1,348,758
     Shareholders' equity         585,422    392,466
 
 
                                   Three Months Ended      Six Months Ended
                                       March 31,               March 31,
     Statistics                     2001        2000       2001       2000
     Heating degree days            1,371      1,045        2,578      1,885
     Percent of normal               102%         78%         111%        81%
     Total throughput
      (MMcf as metered)            79,383     70,118      147,428    123,780
     Natural gas meters                                 1,104,958  1,045,571
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X27476836
 
 

SOURCE Atmos Energy Corporation
    DALLAS, April 25 /PRNewswire/ -- Atmos Energy Corporation (NYSE:   ATO)
 today reported net income of $44.1 million for the second quarter ended
 March 31, 2001, a 49 percent increase compared to net income of $29.6 million
 for the same period last year.  Earnings for the quarter were $1.13 per
 diluted share compared to $0.94 per diluted share for the second quarter ended
 March 31, 2000.
     For the six months ended March 31, 2001, the Company reported net income
 of $67.0 million, a 53 percent increase over net income of $43.9 million for
 the same period in 2000.  Earnings for the six months ended March 31, 2001
 were $1.87 per diluted share compared to earnings of $1.40 per diluted share
 for the six months ended March 31, 2000.
 
                      Results for the 2001 Second Quarter
 
     Weather for Atmos' operations during the 2001 second quarter, excluding
 weather-normalized operations, was 2 percent colder than normal and 31 percent
 colder than the prior year.  Operating revenues for the quarter ended
 March 31, 2001 were $675.1 million compared to $314.2 million for the prior
 year.  The 115 percent increase in operating revenues was primarily the result
 of an increase in gas service sales volumes in 2001 due to colder weather and
 an increase in the average cost of gas per Mcf.  For the quarter ended
 March 31, 2001, the average cost of gas was $8.53 per Mcf compared to
 $3.36 per Mcf for the quarter ended March 31, 2000.
     Gross profit for the 2001 second quarter increased $20.2 million over the
 prior year.  The increase in gross profit was due primarily to an increase in
 gas service sales volumes, an increase in authorized rates and base charges,
 and the addition of 48,000 customers through the acquisition of ANG Missouri
 in May 2000.  Gross profit for the quarter was reduced $4.7 million related to
 the Company's former propane operations which were placed into a joint venture
 partnership in 2000.
     Operation and maintenance expenses for the 2001 second quarter declined
 $1.5 million compared to the same period last year.  The decline in 2001's
 second quarter O&M included a reduction of $1 million resulting from continued
 cost control initiatives and a reduction of $1.9 million in O&M and other
 expenses related to the Company's former propane assets which were placed into
 a joint venture partnership in 2000.  This reduction was partially offset
 during the quarter by a $1.4 million increase to the provision for doubtful
 accounts.
     Interest expense declined $1.2 million as a result of lower average
 outstanding debt balances during the quarter.  Miscellaneous income of
 $.3 million for the 2001 second quarter included equity in earnings from
 Heritage Propane of $2.6 million offset by $3.2 million for the amortization
 of weather hedges purchased for Texas and Louisiana.
     Equity in earnings from Woodward Marketing increased $4.7 million during
 the 2001 second quarter.  Accretion from the Woodward transaction was expected
 to add up to $0.07 per diluted share had the transaction closed during the
 second quarter as anticipated.  The closing did not occur until the Company's
 third quarter due to a delay in the required regulatory approval.
 
                Results for the Six Months Ended March 31, 2001
 
     Weather for Atmos' operations, excluding weather-normalized operations,
 for the six months ended March 31, 2001 was 11 percent colder than normal and
 37 percent colder than last year.  Operating revenues for the six months ended
 March 31, 2001 were $1.1 billion compared to $538.7 million for the prior
 year.  The 108 percent increase in operating revenues was primarily the result
 of an increase in gas service sales volumes due to colder weather and an
 increase in the average cost of gas per Mcf.  For the six months ended
 March 31, 2001, the average cost of gas was $7.50 per Mcf compared to
 $3.36 per Mcf for the six months ended March 31, 2000.
     Gross profit for the six months ended March 31, 2001 increased
 $40.6 million over the prior year.  The increase in gross profit was primarily
 due to an increase in gas service sales volumes, an increase in authorized
 rates and base charges, and the addition of 48,000 customers through the
 acquisition of ANG Missouri in May 2000.  Gross profit for the six months
 ended March 31, 2001 was reduced by $8.7 million related to the Company's
 former propane assets which were placed into a joint venture partnership in
 2000.
     Operation and maintenance expenses decreased $1 million for the six months
 ended March 31, 2001 compared to the same period last year.  The year-over-
 year decline included $5.3 million related to continued cost control
 initiatives and a reduction of $4.0 million related to the Company's former
 propane operations offset by an increase to the provision for doubtful
 accounts of $8.4 million.
     Miscellaneous expense for the six months ended March 31, 2001 was
 comprised primarily of $4.9 million for the amortization of weather hedges
 purchased for Texas and Louisiana partially offset by $2.9 million in equity
 in earnings from Heritage Propane.  Equity in earnings from Woodward Marketing
 increased $3.7 million for the six months ended March 31, 2001 compared to the
 same period last year.
     "We are extremely pleased with our financial performance for the 2001
 second quarter.  Our results reflect a growth in net income of 49 percent for
 the second quarter and 53 percent for the six months ended March 31, 2001,"
 said Robert W. Best, Chairman, President and CEO of Atmos Energy Corporation.
     "While favorable weather significantly contributed to our superior second
 quarter and year-to-date financial results, weather was not the only factor
 that positively impacted our performance.  Atmos has been focused on
 minimizing the effects of adverse weather on earnings and has successfully
 executed its business strategy to make that focus a reality.  For the
 2000 - 2001 heating season, Atmos purchased weather hedges for its Texas and
 Louisiana operations.  The hedges were designed to protect earnings from
 warmer than normal weather of 7 percent or more, while preserving the upside.
     "Atmos has continued to successfully execute its strategy of growth
 through acquisitions.  The Company added 48,000 new customers through the
 purchase of ANG Missouri in 2000 and in just a few weeks, Atmos will add
 another 280,000 customers when the purchase of the assets for Louisiana Gas
 Service Company and LGS Natural is completed.
     "Atmos has also been active and successful in the regulatory arena.
 During the past 15 months, Atmos has received approval for over $16.5 million
 dollars in additional revenue, and has received authorization for weather-
 normalized rates for its Kentucky operations.
     "We are continuing to grow our non-utility operations and we recently
 completed the acquisition of the remaining 55 percent of Woodward Marketing
 LLC.  We believe Woodward has the ability to increase its earnings by
 15 - 20 percent per year which will assist Atmos in growing consolidated
 earnings by at least 8 - 10 percent per year on average, including
 acquisitions.  Last year, Atmos enhanced its non-utility operations by placing
 its propane assets into a national propane partnership where the assets are
 being leveraged to create additional value for our shareholders," said Best.
 
                               Earnings Guidance
 
     Atmos expects 2001 third quarter earnings of $0.02 - $0.07 per diluted
 share, compared to a loss of $0.14 per diluted share for the same period last
 year.  Earnings for the 2001 fiscal year are expected to be $1.60 - $1.75 per
 diluted share, a year-over-year increase of more than 50 percent.
     With the purchase of the LGS and LGSN assets expected to be completed by
 June 30, 2001, the Company is expecting dilution in its 2001 fourth quarter of
 $0.07 - $0.10 per diluted share related to the timing of the transaction
 closing.  The Company's business is seasonal in nature and the fourth quarter
 does not contain enough heating degree days to generate sufficient revenues to
 offset expenses.
 
        Pending Asset Purchase of Louisiana Gas Service Company and LGSN
 
     Atmos expects to complete the purchase of the assets of Louisiana Gas
 Service Company (LGS) and LGS Natural Gas Company (LGSN) for $365 million by
 June 30, 2001.  The Louisiana Public Service Commission approved the purchase
 on April 18, 2001.  The transaction is expected to add $0.02 - $0.04 per
 diluted share in the first full year of operations.
 
                             Regulatory Proceedings
 
     Greeley Gas Company filed a $4.2 million rate case with the Colorado
 Public Utilities Commission in November 2000.  The Company expects a final
 decision in the case by May 2001.  Greeley serves about 91,400 customers in
 Colorado.
     United Cities Gas Company filed a $2.1 million rate case in Virginia in
 July 2000.  United Cities recently agreed to a $.5 million rate reduction,
 retroactive to January 2001.  New rates became effective in April 2001 for
 Virginia customers.  United Cities serves about 20,500 customers in Virginia.
     The Iowa Office of Public Counsel evaluates United Cities earnings for its
 Iowa operations each year based on the Company's FERC filing.  During its
 review of United Cities' 2000 filing, the Counsel recommended a reduction in
 rates.  United Cities agreed to a reduction of $.3 million and the new rates
 were effective March 2001.  United Cities serves about 4,600 customers in
 Iowa.
 
               Effects of Gas Costs on the Company's Gross Profit
 
     Changes in natural gas prices have no impact on the Company's gross
 profits from utility operations.  This is true because as regulated utilities,
 Atmos' business units are not authorized to profit from the sale of the
 natural gas commodity.  Therefore, changes in gas prices have no impact on the
 Company's gross profit.
     Regulated utilities are required to purchase adequate gas supplies for
 their customers.  They are also permitted to be reimbursed for gas purchases
 made on behalf of their customers, with no mark-up or profit added.
     A regulated utility earns its profit in proportion to the quantity of gas
 volumes delivered to its customers.  An increase in gas volumes delivered from
 one period to another should result in higher gross profits and earnings for a
 utility.
     Weather is the primary factor determining the amount of gas volumes
 delivered during any period.  When weather is colder, customers use more gas
 to heat their homes and businesses, which means more gas volumes are delivered
 by the utility.  Warmer weather has the opposite effect and results in fewer
 volumes consumed and delivered.
 
                           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's non-
 utility operations include Woodward Marketing, underground storage, the sale
 of retail 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 Energy Corporation, please visit the Company's
 website at www.atmosenergy.com.
 
 
      Atmos Energy Corporation
      Financial Highlights (Unaudited)
 
                                  Three Months Ended      Six Months Ended
     Statements of Income              March 31,              March 31,
     (000's except per share)      2001        2000        2001        2000
 
     Operating revenues          $675,113   $314,197   $1,117,903   $538,655
     Purchased gas cost           536,789    196,070      869,631    330,978
       Gross profit               138,324    118,127      248,272    207,677
 
     Operation & maintenance
      expense                      34,984     36,454       70,943     71,878
     Depreciation and
      amortization                 15,905     16,490       31,686     32,990
     Taxes, other than income      13,544      9,196       22,811     16,681
       Total operating expenses    64,433     62,140      125,440    121,549
 
     Operating income              73,891     55,987      122,832     86,128
     Equity in earnings of
      Woodward Marketing, LLC       6,022      1,355        8,062      4,387
     Miscellaneous income
      (expense)                       317        333       (2,070)     1,259
     Interest charges, net          9,817     11,027       22,063     22,244
 
     Income before income taxes    70,413     46,648      106,761     69,530
     Provision for income taxes    26,339     17,075       39,715     25,633
 
     Net income                   $44,074    $29,573      $67,046    $43,897
 
     Basic net income per share     $1.14      $ .94       $ 1.87      $1.41
 
     Diluted net income per share   $1.13      $ .94       $ 1.87      $1.40
 
     Cash dividends per share       $.290      $.285       $ .580      $.570
 
     Average shares outstanding:
       Basic                       38,815     31,332       35,780     31,226
       Diluted                     38,919     31,544       35,879     31,440
 
     Summary Net Income by
      Segment (000's)
     Utility                      $35,941    $26,486      $58,779    $37,590
     Non-Regulated                  8,133      3,087        8,267      6,307
       Consolidated net income    $44,074    $29,573      $67,046    $43,897
 
 
     Balance Sheet Items        Mar. 31,    Sept. 30,
      (000's)                     2001        2000
     Property, plant
      and equipment            $1,606,692 $1,579,803
     Net property, plant
      and equipment               987,743    982,346
     Total assets               1,452,126  1,348,758
     Shareholders' equity         585,422    392,466
 
 
                                   Three Months Ended      Six Months Ended
                                       March 31,               March 31,
     Statistics                     2001        2000       2001       2000
     Heating degree days            1,371      1,045        2,578      1,885
     Percent of normal               102%         78%         111%        81%
     Total throughput
      (MMcf as metered)            79,383     70,118      147,428    123,780
     Natural gas meters                                 1,104,958  1,045,571
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X27476836
 
 SOURCE  Atmos Energy Corporation