Atmos Energy Corporation
2002 Summary Annual Report
Energy.
We’re bringing more of it to everything we do.
P U T T I N G T H E P I E C E S T O G E T H E R
Atmos Energy Corporation, headquartered in Dallas,
Texas, is one of the largest pure natural gas distributors
in the United States, serving about 1.7 million utility
customers. Atmos Energy’s utility operations serve more
than 1,000 small and medium-size communities in
Colorado, Georgia, Illinois, Iowa, Kansas, Kentucky,
Louisiana, Mississippi, Missouri, Tennessee, Texas
and Virginia.
Atmos Energy’s nonutility operations, organized under
Atmos Energy Holdings, operate in 18 states. They
provide natural gas marketing and procurement services
to industrial, commercial and municipal customers,
manage company-owned natural gas storage and pipeline
assets, construct distributed electric generating plants
for industrial and municipal customers and hold an
indirect equity interest in Heritage Propane Partners,
L.P., the fourth-largest U.S. propane marketer.
Cover: To Anne and Tom Christian’s Figure 3 Ranch
at Claude, Texas, where the gas service is as reliable
as any city-dweller’s. And to the local Atmos Energy
office, which can read the meter remotely and accept
their payment online.
A T M O S E N E R G Y O P E R A T I O N S
4
3
1
2
Atmos Energy Corporation Headquarters
Dallas, Texas
Atmos Energy Holdings Headquarters
Houston, Texas
Utility Operations
Nonutility Operations
5
6
1
2
7
8
9
3
4
5
6
7
8
9
Regional Offices
Atmos Energy Texas Division
Lubbock, Texas
Atmos Energy Colorado–Kansas Division
Denver, Colorado
Atmos Energy Kentucky Division
Atmos Energy Marketing
Owensboro, Kentucky
Atmos Energy Mid-States Division
Atmos Energy Marketing
Franklin, Tennessee
Recent Acquisition
Mississippi Valley Gas Division
Jackson, Mississippi
Atmos Energy Louisiana Division
Baton Rouge, Louisiana
Atmos Energy Marketing
New Orleans, Louisiana
Across a 2,000-mile expanse of
the United States, six of America’s
great regional gas providers have
come together as a single team, one
of the nation’s largest natural gas
companies.They have long shared
a spirit of service. Now they share
a name. Atmos Energy. For our
company and the nearly 1.7 million
customers we serve, this change
means more than just a new name.
It means more capabilities.
More potential. More Energy.
F I N A N C I A L H I G H L I G H T S
Year ended September 30 (Dollars in thousands, except per share data)
2002
2001
Change
Operating revenues
Gross profit
Utility net income
Natural gas marketing net income
Other nonutility net income
Total
Total assets
Total capitalization
Net income per share – diluted
Cash dividends per share
Book value per share at end of year
Total throughput (MMcf)
Heating degree days
Degree days as a percentage of normal
Meters in service at end of year
Return on average shareholders’ equity
Shareholders’ equity as a percentage
of total capitalization (including short-term
debt) at end of year
Shareholders of record
Weighted average shares outstanding – diluted (000s)
$
$
$
$
950,849
392,602
42,994
12,614
4,048
59,656
$ 1,980,221
$ 1,243,698
$
$
$
1.45
1.18
13.75
208,541
3,368
94%
1,389,341
9.9%
40.6%
28,829
41,250
$ 1,442,275
$ 374,720
$
$
49,881
2,551
3,658
56,090
$ 2,036,180
$ 1,276,263
$
$
$
1.47
1.16
14.31
217,774
4,124
115%
1,386,323
10.4%
39.0%
30,524
38,247
-34.1%
4.8%
-13.8%
394.5%
10.7%
6.4%
-2.7%
-2.6%
-1.4%
1.7%
-3.9%
-4.2%
-18.3%
-18.3%
.2%
-4.8%
4.1%
-5.6%
7.9%
Table of Contents
Letter to Shareholders
Operational Review
Financial Review
Atmos Energy Officers
Board of Directors
3
18
26
35
36
Inside Back Cover
Corporate Information
Atmos Energy turned in solid results in a year that
was difficult for many natural gas utilities and for
energy companies, in general. We finished all work
to close our acquisition of Mississippi Valley Gas
Company, launched our new nationwide brand as
Atmos Energy™, initiated a major program to raise
our customer service to a new level of excellence,
added $15.8 million in future annual
revenues from a settled tariff adjust-
ment, reduced our doubtful accounts
by $26.2 million and achieved a
significant increase in earnings from
our nonutility operations.
10%
-5%
0%
5%
Total Return in Fiscal 2002
S5UTIL UTIL SPX INDU PEER
AVG
4.3%
4.9%
6.5%
Net income for the year was $59.7
million, a 6 percent increase over the
$56.1 million earned in fiscal 2001.
Earnings per diluted share of $1.45 were
2 cents lower than in fiscal 2001
because of a year-over-year increase of
about 3.1 million average diluted shares
outstanding. Return on average share-
holders’ equity was 9.9 percent.
-12.5%
-20.4%
-25.5%
-1 0%
-1 5%
-20%
-25%
-3 0%
-35%
-4 0%
-35.6%
Atmos Energy’s 2002 total return to shareholders
surpassed most major market indices as well as
Key: ATO - Atmos Energy UTIL - Dow Jones Utilities Index
SPX -
’
S5UTIL -
’
S6GASU - Standard
& Poor’s Small-Cap Gas Index
L E T T E R T O S H A R E H O L D E R S
Operating revenues were $950.8 million, compared
with $1,442.3 million in fiscal 2001. The decline
resulted mainly from two factors. First, natural gas
commodity prices, which are passed through
directly to customers, fell from the record levels in
fiscal 2001 when prices spiked at an all-time high.
Second, the milder winter in fiscal 2002 reduced our
throughput from 217.8 billion cubic
feet in fiscal 2001 to 208.5 Bcf in 2002.
ATO S6GA SU
Gross profit went up 5 percent
from $374.7 million in fiscal 2001 to
$392.6 million. A major factor was
the contribution from the Louisiana
Gas Service assets and the 279,000
Louisiana customers we acquired in
July 2001.
Utility operations reduce costs
Our utility operations contributed
72 percent of our fiscal 2002
net income.
Utility operations benefited from much lower natural
gas commodity prices. Our system’s average gas cost
in fiscal 2002 declined 44 percent to $3.81 per million
cubic feet from our average gas cost in fiscal 2001
of $6.83 per Mcf.
We are particularly proud of the successful efforts by
our utility employees to collect past-due accounts.
Their efforts significantly lowered the provision for
Atmos Energy paid cash dividends in fiscal 2002
of $1.18 per share. On November 13, 2002, the
Board of Directors increased the quarterly dividend
rate by 2 percent to an annual indicated dividend
of $1.20 per share — our 15th consecutive annual
dividend increase.
Total return to shareholders in fiscal 2002 was
4.9 percent. That compares with an average total
return for our industry peers of 4.3 percent and
a negative return for most of the key stock indices.
3
Energy. To The Denver and Rio Grande Railroad connecting Durango and
Silverton, Colorado.
And to the 1.7 million
other customers across
12 states who rely
on their connection to
Atmos Energy.
L E T T E R T O S H A R E H O L D E R S
doubtful accounts below its historic level of about
four-tenths of 1 percent of revenues. Their efforts
also contributed to a total year-over-year savings of
$26.2 million.
Gas. On October 31, 2002, we received the Mississippi
Public Service Commission’s final order, the last of many
state and federal regulatory approvals needed to close the
transaction, which was completed on December 3, 2002.
A third achievement was an agreement with the
It’s gratifying to note that we achieved an earnings
increase despite weather that was
6 percent warmer than normal and
18 percent warmer than in fiscal
2001. Weather continued to be a major
factor underlying our earnings.
During the winter heating season of
2001-2002, we had in place weather
insurance to mitigate any severe effects
of warm weather on earnings. This
insurance will continue in force during
the 2002-2003 heating season.
$0.50
$1.00
$1. 50
$1.14
Earnings per Diluted Share
Compared with Winter Heating
Degree Days
Earnings Per Diluted Share
$1.47
$1.45
4, 124
2, 06 2
Our utility operations had many
achievements in 2002, but
three in particular will create long-
lasting benefits.
$0. 00
2000
2001
2002
0
Degree
Days
Our goal is to make our consolidated earnings
less sensitive to the effects of weather.
Louisiana Public Service Commission
regarding a rate stabilization
adjustment for our Louisiana utility
operations. The agreement will
add $15.8 million annually to rev-
enues during the first two years,
beginning in November 2002, and
$12.2 million annually thereafter.
The way the agreement is structured
also will help reduce our sensitivity
to weather in Louisiana, where our
largest utility division is located.
Nonutility operations continue growing
Atmos Energy benefited in fiscal 2002
from improved results in nonutility
One was the successful launch of our new Atmos
Energy national brand. It reflects a major initiative
we’ve undertaken to raise our customer service
to new standards of excellence. We believe that our
strengthened identity and service improvements
will benefit us as we expand our utility business.
A second achievement was finishing all the regulatory
and financing work to acquire Mississippi Valley
operations. These operations contributed 28 percent
of net income, with gains coming largely from the
Woodward Marketing unit of Atmos Energy Marketing.
In 2001, Atmos Energy acquired the remaining
55 percent interest in Woodward Marketing that it
did not already own. Woodward Marketing’s
business primarily is marketing natural gas and gas
transportation services to wholesale industrial
customers and municipalities. It also makes gas
trades that have limited risks.
6
Woodward Marketing turned in impressive contribu-
tions from increased volumes due to acquisitions
we made in 2001. These include the nonutility assets
of LGS Natural Gas, a large natural gas storage
field in Kentucky and two gas marketing companies.
Woodward also realized increased sales of wholesale
gas, favorable margins on gas trading and gains on
sales of gas from inventory.
Woodward Marketing differs fundamentally
from other gas marketing companies that have been
experiencing difficulty. Five of its strengths
stood out in 2002:
Strategic acquisitions Woodward Marketing’s volumes
have grown by making strategic acquisitions and by
managing other Atmos Energy assets.
Stable and growing book of business The bulk of
Woodward Marketing’s business is built on long-term
relationships and excellent customer service.
Woodward has retained approximately 90 percent of
its customers since it was founded in 1985. It has
been ranked consistently among the top three mid-tier
gas marketers in the United States. Its continuity
of business and commitment to service have created
Years of success Woodward Marketing
has grown steadily throughout its 17-year
history. It is an established competitor
in the natural gas marketing business,
and its employees are highly experi-
enced in this business.
Excellent service Woodward Marketing
knows natural gas marketing and
how to serve its customers extremely
well; in industry surveys, customers
consistently rank it as one of the best
in customer service.
‘03
‘0 2
‘01
‘0 0
‘99
‘9 8
‘97
‘9 6
‘95
‘9 4
‘93
‘9 2
‘9 1
‘90
‘89
‘8 8
‘8 7
‘8 6
‘85
‘84
Atmos Energy Dividend History
$0 .00
.20 .40 .60 .80 1.00 1.20
1.20
1.18
1.16
1.14
1.10
1.06
1.01
.98
.96
.91
.82
.79
.75
.74
.73
.71
.54
.50
.40
.35
Atmos Energy paid dividends during fiscal 2002
of $1.18 per share. Our annual indicated dividend
rate for fiscal 2003 is $1.20.
stable and growing contributions
to our earnings.
For these reasons, we take great
confidence in the outlook for our
nonutility operations. This past
July, others showed their confidence,
too, when Woodward Marketing
renegotiated its uncommitted demand
credit facility and increased the
facility’s limit by $85 million to $210
million. This increased credit
facility will be used to support our
growing gas marketing business.
Our nonutility operations — gas
Continual contributions Woodward Marketing’s
contribution to Atmos Energy’s consolidated net
income increased every quarter of fiscal 2002.
marketing and trading, storage and transportation, and
small distributed power generation — are vital and
honorable businesses. We have great confidence in
the future of Woodward Marketing and our other
nonutility units.
7
Energy. To the Hazelton family of Chase County, Kansas, where hard work
And to our many
other rural farm tap
customers who
read and report their
gas consumption
and self-reliance are treasured values.
online or over the phone.
L E T T E R T O S H A R E H O L D E R S
Acquiring Mississippi Valley Gas
On October 31, 2002, we received the final
regulatory approval needed to complete our acquisition
of privately held Mississippi Valley Gas Company,
the largest gas provider in Mississippi. We completed
the transaction on December 3, 2002, paying $75
million cash and $75 million of Atmos Energy common
stock for the company and repaying approximately $45
million of its long-term debt. We expect that Mississippi
Valley Gas’ operations will be slightly accretive to
our fiscal 2003 earnings.
I have often referred to Atmos Energy as a “patient
acquirer.” We have not jumped at every opportunity
and, as a result, we have not regretted the acquisitions
we have made. Our Mississippi Valley Gas transaction
took us 14 months to complete from the time we signed
the agreement, largely because Mississippi is a new
market for us. In other recent acquisitions, we were
already operating in the states and had a track
record for regulators to evaluate.
In that regard, we spent much time meeting
with the Mississippi Public Utilities Staff to assure
the Mississippi regulators that we will maintain
Mississippi Valley Gas’ high standards of customer
service and will contribute many improvements
of our own. Our information technologies, for instance,
will add significant value over time.
Acquisitions like Mississippi Valley Gas have been
the main engine of growth for Atmos Energy since
1986. Mississippi Valley Gas is our ninth major
acquisition. We are gaining approximately 260,000
utility customers, and our expanded customer
base will further spread our overhead and lower the
costs for all our customers. Adding Mississippi
customers will help us achieve greater synergies
across our system.
Longer-range, we will benefit from entering a growing
new market. We will increase our existing diversity of
economic activity, weather patterns, classes of
customers and ratemaking provisions. Mississippi Valley
Gas’ rates are weather-normalized and include
provisions for monthly purchased gas cost adjustments
and semi-annual rate adjustments. Its rate structure
is designed to mitigate the effects of weather, provide
predictable and stable earnings and cash flow, and
reward the utility for its excellent customer service.
We believe it will fit well into our system and
will make long-term contributions to our earnings.
Earnings expected to grow 5%–7%
Going forward, our five-year projections show
an average annual growth rate in Atmos Energy’s net
income of 5 percent to 7 percent. We plan to achieve
this growth — and help our stock price — primarily
through two strategic goals.
One is additional revenue from our utility operations
as a result of rate filings. We project adding up to
$66 million in annual revenues during the next five
years. These increases will tend to occur more in
10
the early years than in the later years. Already, our
successful tariff case in Louisiana has contributed
$15.8 million of the expected total. Fiscal 2003 will
be a test year — which is what regulators use to
determine our rate base and our allowed rate of
return — in Texas, Kansas and possibly other states.
nonutility acquisitions and by expanding our nonutility
markets. Woodward Marketing’s strong base of
business numbers approximately 800 industrial and
municipal customers today. Growing our nonutility
customer base and retaining present customers will
help us meet our earnings target.
Part of our rate strategy is to seek a weather normal-
ization adjustment (WNA) in rates to mitigate the
effects of weather on our earnings and our customers’
bills. Weather normalization adjusts gas bills down-
ward when temperatures during the heating season
are much colder than normal and WNA increases
the bills when temperatures are warmer than normal.
Over time, the plus and minus weather normalization
adjustments balance each other out statistically.
But as a more practical matter, WNA helps consumers
better budget their energy costs and allows utilities
to earn a return closer to their authorized return. Many
states in which Atmos Energy operates have approved
WNA in our rates or in those of other gas utilities.
Obtaining WNA in jurisdictions where we now do
not have it will help protect our customers from large
changes in their gas bills. Doing so also will allow
us to cancel our weather insurance, saving us about
$4 million a year in premiums.
A second major goal is to increase our nonutility
earnings at an average annual rate of 10 percent. We
intend to achieve this growth by making more
We also will continue to focus on controlling
future operation and maintenance expenses. We are
proud of our ranking as one of the most efficient
pure natural gas providers in the industry. However,
like all businesses today, we face higher pension,
post-retirement and medical costs. As a company with
a goal of being an employer of choice, we do not
believe it is right to shift all the extra burdens onto
our employees and retirees and their dependents.
Therefore, Atmos Energy is absorbing a proportionate
share of the increase while also asking our employees
and retirees to pay a greater share.
Atmos Energy’s outlook
Increased utility revenues and nonutility growth will drive
our earnings at an expected growth rate of 5 percent
to 7 percent a year during the next five years.
Our utility earnings base will grow with the acquisition of
Mississippi Valley Gas and through future rate filings.
Rate filings during the next five years are projected
to add up to $66 million in revenues; in many
filings, we will ask for weather normalization to protect
our investors and our customers from abnormal
weather patterns.
11
Energy. To historic Jonesborough, Tennessee, where the citizens take pride
in their town’s storied past.
And to the 2,338
employees of
Atmos Energy, whose
Spirit of Service SM is
a cherished tradition.
L E T T E R T O S H A R E H O L D E R S
We will continue to control our costs. We already are
one of the most efficient pure gas utilities based on
customers served per employee and operation and
maintenance expense per customer.
We intend to limit our nongrowth spending to remain
at or below our overall depreciation levels and our
growth spending to earn our cost of capital or better.
Our nonutility operations will grow
through new strategic acquisitions
and will take advantage of market
opportunities that become available.
Operation and Maintenance
Expense per Customer
$150
$146
$136
$135
$130
$101
‘00
‘01
‘02
Controlling operation and maintenance expense
has made Atmos Energy one of the most efficient
pure gas distributors in the United States.
We intend to remain faithful to our
strategy of running our utilities well,
growing our nonutility business
and making sound acquisitions.
100
50
Capital spending rises
‘99
0
‘98
Our capital expenditures during fiscal
2002 were $132.3 million, up from
$113.1 million for the same period
in 2001. The $19.2 million increase
was primarily due to spending on the Louisiana Gas
Service assets we acquired and full ownership of
Woodward Marketing. Additionally, spending was
elevated due to the purchase of additional billing
software licenses and integration expenditures for
Mississippi Valley Gas.
For fiscal 2003, we expect capital expenditures
will increase primarily due to $8 million in higher
capitalized employee benefits and an additional
$18 million to $20 million for Mississippi Valley
Gas operations.
National energy policy needed
One disappointment to me in 2002
was the inability of Congress to agree
upon a national energy policy.
Although many bills were introduced
in both the Senate and House of
Representatives, a final compromise
bill faltered. Congressional leaders
promise a renewed effort next January.
The federal Energy Information
Administration’s Annual Energy
Outlook for 2003, which was
issued in November 2002, predicts
our country’s dependence on
foreign oil and natural gas will
continue to grow through 2025. The EIA report is the
government’s best forecast of future U.S. energy
supply, demand and prices. Among other things, the
report finds U.S. dependence on foreign oil will
jump to 68 percent in 2025, up from 55 percent in
2001. Imported natural gas will account for 22
percent of U.S. demand by 2025, up from 16 percent
in 2001.
Natural gas, in particular, should be the focus
of new development by our country since it offers
so many benefits. All but 1 percent of the gas
consumed in the U.S. comes from North America,
making it our most reliable fuel source. Gas is the
14
cleanest burning fuel, making it our most flexible fuel
for direct use as well as for generating electricity.
Potential gas reserves are abundant, with many areas
in the lower 48 states, in Alaska and on the outer
continental shelf still untapped. All that is needed to
take greater advantage of the benefits of natural
gas is a sound policy that promotes development,
storage, transportation and wise use.
I thank them for all they do. And I would note, it
was with complete confidence that Pat Reddy, our
chief financial officer, and I signed and certified
the accuracy and fairness of our financial statements
and disclosures under the Sarbanes-Oxley Act of
2002. Atmos Energy’s financial statements fully comply
with all new and previous financial reporting
requirements because of our employees’ integrity.
Personally, I am more excited today than at any time
during the past five years about the prospects for
Atmos Energy. We have remained faithful to the strategy
set in 1997, and that course has continued to reward
our shareholders while serving our customers and
providing for our employees. You should expect to
see more of the same in the coming years.
On behalf of the Board of Directors, management
and employees, thank you for your investment
in Atmos Energy and your continued trust in us.
Sincerely,
Robert W. Best
Chairman, President and Chief Executive Officer
December 6, 2002
Looking at 2003 and beyond
As we enter our 2003 fiscal year, we at Atmos Energy
are mindful that this year marks the corporation’s
20th anniversary. With roots dating back to 1906, the
company has enjoyed a long and proud heritage.
During the past two decades, Atmos Energy has grown
from a regional West Texas natural gas utility serving
300,000 customers into one of America’s largest
natural gas providers. Yet, as we have grown, we have
respected our past and the values it represents —
integrity, honesty, value and community service.
We have worked to maintain the warmth and spirit
of a small company while achieving the savings and
efficiencies of a large one. Of the more than 1,000
cities and towns we now serve, most have populations
of less than 5,000. In all these communities, our
employees are known and respected because they stand
for Atmos Energy. By doing their jobs so well —
serving customers safely, reliably, efficiently and
courteously — they have built Atmos Energy’s
enviable reputation.
15
Energy. To the Chevrolet Corvette assembly plant in Bowling Green, Kentucky,
where performance is everything.
And to the thousands of other
commercial and industrial
customers that Atmos Energy
goes all out to serve.
O P E R A T I O N A L R E V I E W
Running our utilities exceptionally well
Atmos Energy is one of the largest pure natural gas
distributors in the United States. During fiscal
2002, our utility operations continued to grow with
added efficiency and improved service.
Gross profit benefited from an increase in sales volumes
associated with the performance of the Louisiana
Gas Service assets we purchased in July 2001. Our LGS
acquisition added 279,000 new utility customers.
Utility operations contributed $43.0 million, or
72 percent, of consolidated net income. Earnings for
the segment declined year-over-year primarily
because of increased expenses for operation and
maintenance associated with the LGS acquisition
and for increased labor and employee benefits in all
utility divisions.
However, our utility employees achieved impressive
savings in many areas. In fiscal 2001, natural gas
prices set all-time highs, causing an unprecedented run
up in our bad-debt expense. Our employees reduced
bad debts significantly in fiscal 2002 through consistent
and innovative collection methods. As a result, the
provision for doubtful accounts in fiscal 2002 decreased
by $26.2 million for the entire company.
One team, one name
A major achievement during the year was the con-
solidation of our former regional trade names
under one new national trademark — Atmos Energy.™
For upwards of 70 years, our divisions had operated
under well-known names, which had reputations for
reliable, safe and friendly service.
Atmos Energy’s employees have long been one team.
With the adoption of our new trademark, the company
now has one name by which people across the country
will know us. This new national brand will help our
customers, investors and communities better recog-
nize and understand the full scope of our operations
and will help us attract industrial and economic
development to our communities.
Excellence in customer service
Our new image results in more than just appearance.
It symbolizes our strategy to raise our customer
service to a new level of excellence. It also reflects a
sizable commitment on our part to make doing
business with us easier.
During 2002, we remodeled and updated more than
150 local offices and service centers, improved
the telephone-response capabilities at our Texas and
Louisiana call centers, added convenient bill-
payment options and electronic payment over the
Internet, and conducted seminars about service
improvement for more than 2,000 employees to
identify ways to better serve our customers.
We are raising our own already high expectations
for customer service to set the mark for the gas
industry as a whole. We expect our national brand to
stand for a new level of service excellence and
for Atmos Energy to be known, not just in the utility
industry but across the country, as one of the
best service providers.
18
As we pursue this initiative in 2003, we will be assessing
new service guarantees, such as more flexible
scheduling to better accommodate customers’ needs.
We will be adding innovative e-commerce features
to our Web site to let customers start and stop service,
pay bills and get help, and we will be working to
better understand our customers’ needs through research.
Tariff adjustments
As a regulated utility, Atmos Energy is dedicated to
controlling costs paid by its customers. Our employees
do an extremely good job in this regard, as shown by
key industry measures like operation and maintenance
expense per customer.
However, some costs are beyond our control. This was
true of the societal costs of bad debts owed by
customers who could not pay for the record-high costs
of natural gas during the winter of 2000-2001.
Our employees worked with these customers and with
agencies that provide energy-assistance funds to
help lower the burden whenever possible. In addition,
we gained special approval in four states to recover
some of the extraordinary bad-debt expenses incurred.
Atmos Energy monitors its actual rates of return
compared with its authorized rates of return. In
jurisdictions where our actual return does not keep
up with our allowed return, we typically evaluate
the need for a rate filing. During 2002, we made
plans to file in a number of jurisdictions during
the next five years. We expect these filings will produce
up to $66 million in additional annual revenues.
Fiscal 2003 will be what is called a test year, used by
regulators for rate-making calculations, in Texas,
Kansas and possibly other states.
During 2002, we reached agreement with the Louisiana
Public Service Commission regarding a tariff
rate stabilization adjustment for our Louisiana utility
operations. The agreement adds $15.8 million
annually to revenues in the first two years and $12.2
million annually thereafter. Equally important,
the tariff revisions lower our sensitivity to weather.
Weather normalization
Our operations are sensitive to weather conditions.
However, we have steadily lowered the effects that
weather can have on our customers and investors using
a number of methods. Our system had weather
normalization adjustments in rates covering 27 percent
of our utility customer base during 2002. With the
acquisition of Mississippi Valley Gas, that percentage
has increased to 38 percent.
If winter weather is abnormally warm – resulting
in lower than normal income, weather normaliza-
tion increases gas bills. It also reduces winter gas
bills if the weather turns extremely cold, which
usually generates above-normal income. Over time,
these weather normalization adjustments generally
balance out.
19
Energy. To Natchez, Mississippi, where the paddle wheelers still provide a
vital economic lifeline.
And to the 39,157 miles
of underground pipeline
by which Atmos Energy
delivers vital supplies of
natural gas.
O P E R A T I O N A L R E V I E W
In our future rate filings, we intend to seek weather
normalization in rates in most jurisdictions both to
protect Atmos Energy’s income and to prevent
shocks to our customers’ budgets. Many state utility
commissions have approved weather normalization
because it provides consumer protection while it gives
the gas utility adequate income to maintain its
distribution system and make new improvements.
Weather insurance
To limit the uncertainties of weather, Atmos Energy
also uses various financial techniques, such as weather
insurance. Adjusted for our weather-normalized
jurisdictions, weather across our system for all of fiscal
2002 was 6 percent warmer than normal.
In fiscal 2002, we had in force the first year of a
three-year weather policy. The policy pays a benefit
when weather in Texas and Louisiana during the
months of October through March averages 7 percent
warmer than normal. Breakeven on the policy is
weather that averages 11 percent warmer than normal.
This policy will remain in force for the 2002-2003
heating season. We have an option for a third season
in 2003-2004 if we continue to need the protection.
Because the weather in Texas and Louisiana was about
6 percent warmer than normal during the covered
six-month heating season of fiscal 2002, we did not
realize a benefit from the weather insurance. Having
weather insurance provides protection against the
effects on earnings of warm weather in Texas and
Louisiana as has occurred in past years.
Lower gas prices
A positive development in 2002 was the return of
natural gas prices to more historically normal and
stable levels. Our average cost of gas for the fiscal year
was $3.81 per Mcf, compared with $6.83 per Mcf
for the same period last year. The sharp decline in the
year’s gas costs benefited our customers and our
utility operating results.
To moderate the potentially wide spread in gas
commodity costs, Atmos Energy uses a gas-hedging
program. For the 2002-2003 heating season, we
have covered between 45 percent and 50 percent of
our anticipated flowing gas requirements. We will
use the “natural hedge” of our own gas storage fields
for about 20 percent to 25 percent of our winter
requirements and will hedge the remainder with
financial hedges and fixed-forward contracts.
Hedging offers benefits to our utility customers
and to Atmos Energy by avoiding severe price spikes.
This is our second year for a formal gas-hedging
program, and the response to it from our state utility
commissions has been favorable.
Making sound acquisitions
With the addition of Mississippi Valley Gas Company,
beginning in December 2002, our utility operations
now serve about 1.7 million customers in more than
1,000 communities across 12 states.
22
Atmos Energy announced in September 2001 that it
would acquire Mississippi Valley Gas for approximately
$150 million — $75 million cash and $75 million of
Atmos Energy common stock. Atmos Energy also repaid
about $45 million of Mississippi Valley Gas’ long-
term debt. We expect Mississippi Valley Gas’ operations
to be slightly accretive to fiscal 2003 earnings.
Benefits of the acquisition
Atmos Energy is fully committed to maintaining
Mississippi Valley Gas’ excellent service standards
and adding innovations to benefit customers.
Management of the utility will remain in Jackson,
and local offices across the system will continue
to be responsive to customers’ needs.
Over the long-term, we expect
Mississippi Valley Gas’ cost of service
will decline from levels it otherwise
would have reached if the utility were
to remain a stand-alone company.
The savings are expected from new
efficiencies and economies of scale
that can be achieved by being part of
Atmos Energy.
For Atmos Energy, the acquisition
offers many potential benefits,
too. We will benefit from serving
260,000 new gas utility customers.
Our expanded base of customers will
further spread our overhead,
lowering the costs for all customers. More customers
also will help us to achieve greater synergies,
especially with new technologies. Longer-term, we
will benefit from the diversity of economic activity,
weather patterns, types of customers and rate-making
provisions in the Mississippi market.
Mississippi Valley Gas is the largest
natural gas local distribution company
in Mississippi, serving 144 communi-
ties in 36 counties of the state. The
major cities served are Jackson, the
state capital; Greenville, a busy port on
the Mississippi River; Tupelo, an
industrial city; Meridian, home of two
airbases; Southaven, a fast-growing
suburb of Memphis, Tennessee; and
historic Natchez.
Mississippi Valley Gas Company
i
idian
ee
Mississippi Valley Gas operates
5,500 miles of natural gas
distribution system and 335 miles
of transmission pipeline. It owns
two underground storage facilities having a total
working gas capacity of 2.05 Bcf.
Utility Operations
Residential consumers make up about nine out
of 10 of its customers and provide about half of its
revenues. Industrial and commercial customers
together account for about 40 percent of revenues.
Its rates are weather-normalized and include
provisions for monthly purchased gas cost adjustments
and semi-annual rate adjustments.
23
O P E R A T I O N A L R E V I E W
To finance the transaction, Atmos Energy used
a $150 million bank-loan facility to provide initial
financing for the $75 million cash portion of the
acquisition and to repay Mississippi Valley Gas’ long-
term debt. In time, we will replace this short-term
financing with long-term borrowings.
Woodward Marketing’s main business is procuring
natural gas supplies and managing transportation
and storage-capacity assets to provide citygate gas
service for some 800 wholesale industrial customers
and municipalities. It is primarily a physical trader.
Growing our nonutility operations
Nonutility operations grew significantly
in fiscal 2002, contributing $16.7
million to net income, or 28 percent.
That compares to $6.2 million in
fiscal 2001.
Nonutility operations benefited
from our April 2001 acquisition of the
remaining interest in Woodward
Marketing, our acquisition of LGS
Natural Gas assets in July 2001
and our purchases in 2001 and 2002
of other nonutility assets.
Mississippi Valley Gas Company
Customers served (approx.)
260,000
Communities served
Number of employees
144
619
Total assets at
Sept. 30, 2002 (000s)
$210,073
Annual revenues for fiscal year
ending Sept. 30, 2002 (000s)
$219,126
Net income for fiscal year
ending Sept. 30, 2002 (000s)
$9,639
Total gas throughput (MMcf)
during fiscal year 2002
36,705
Woodward also offers many spe-
cialized gas-management services.
Through its affiliation with
Atmos Pipeline and Storage, it
manages nonutility storage and
transportation assets owned by Atmos
Energy. Woodward Marketing
has a fundamentally sound business
model, giving us great confidence
in its future. This is particularly so
today in light of the many gas
marketing and trading companies
that are experiencing difficulties.
Our full ownership of Woodward Marketing increased
the benefits Atmos Energy derives from Woodward’s
leading position in the domestic gas marketing and
trading business. Woodward Marketing consistently
has been ranked as one of the industry’s best in
customer service, and its reputation has ensured long
and continuing relations with its customers.
Strong results of operations
Nonutility operations in fiscal 2002 had higher
operating margins, largely due to Woodward
Marketing’s increased sales volumes from new and
existing gas customers and its favorable margins
on sales of gas from inventory.
Along with strong marketing and trading results,
Woodward Marketing negotiated several strategic
acquisitions that added to 2002 results.
24
It completed the acquisition of the East Diamond
storage field in Kentucky, adding about 2.2 Bcf of
working gas capacity.
It acquired two natural gas marketing companies
based in Owensboro, Kentucky, to improve its com-
petitive position within the region and to add to its
customer base.
It also purchased gas procurement and management
services contracts with a throughput of about
7.5 Bcf to serve 40 additional municipal customers
in seven states.
Through acquisitions, Woodward is strategically growing
its revenue base in its existing markets. As our
nonutility operations grow, their need for credit will
increase, too. In 2002, Woodward Marketing
renegotiated its uncommitted demand credit facility
to increase the limit by $85 million to $210 million.
25
F I N A N C I A L R E V I E W
Summary Annual Report
The financial information presented in this report
about Atmos Energy Corporation is condensed. Our
complete financial statements, including notes, as well
as management’s discussion and analysis of financial
condition and results of operations are presented
in our Annual Report on Form 10-K. Atmos Energy’s
chief executive officer and its chief financial officer
have complied with, and have executed, all certifications
of these financial statements required under the
Sarbanes-Oxley Act of 2002 and all related rules of the
Securities and Exchange Commission with respect
to the financial statements contained within. Investors
may request, without charge, our Annual Report
on Form 10-K for the fiscal year ended September 30,
2002, by calling Investor Relations at 1-800-382-8667
between 8 a.m. and 5 p.m. Central time. Our Form
10-K also is available on Atmos Energy’s Web site
at http://www.atmosenergy.com. Additional investor
information is presented inside the back cover of
this report.
27
28
29
30
31
32
34
Atmos Energy at a Glance
Condensed Consolidated Balance Sheets
Condensed Consolidated Statements of Income
Condensed Consolidated Statements of Cash Flows
Report of Independent Auditors
Consolidated Financial and Statistical Summary 1992-2002
Forward-Looking Statements
A T M O S E N E R G Y A T A G L A N C E
Year ended September 30
2002
2001
Meters in service
Residential
Commercial
Industrial (including agricultural)
Public authority and other
Total meters
Heating degree days
Actual (weighted average)
Percent of normal
Sales volumes (MMcf)
Residential
Commercial
Industrial (including agricultural)
Public authority and other
Total
Transportation volumes (MMcf)
1,247,247
122,156
12,694
7,244
1,389,341
1,243,625
122,274
13,020
7,404
1,386,323
3,368
94%
4,124
115%
77,386
35,796
26,431
5,875
145,488
63,053
79,000
36,922
33,730
6,892
156,544
61,230
Total throughput (MMcf)
208,541
217,774
Operating revenues (000s)
Gas sales revenues
Residential
Commercial
Industrial (including agricultural)
Public authority and other
Total
Transportation revenues
Other gas revenues
Total gas revenues
Other revenues
$
535,981
$
788,902
221,728
112,172
31,731
901,612
36,591
11,258
949,461
1,388
342,945
208,168
58,539
1,398,554
28,668
10,925
1,438,147
4,128
Total operating revenues (000s)
$
950,849
$ 1,442,275
Other statistics
Gross plant (000s)
Net plant (000s)
Miles of pipe
Employees
$ 2,127,827
$ 1,300,320
39,157
2,338
$ 2,109,867
$ 1,335,398
38,938
2,361
27
C O N D E N S E D C O N S O L I D A T E D
B A L A N C E S H E E T S
September 30 (Dollars in thousands, except share data)
2002
2001
Assets
Property, plant and equipment
Construction in progress
Less accumulated depreciation and amortization
Net property, plant and equipment
Current assets
Cash and cash equivalents
Cash held on deposit in margin account
Accounts receivable, net
Inventories
Gas stored underground
Assets from risk management activities
Deferred gas cost
Other current assets and prepayments
Total current assets
Intangible assets
Goodwill
Noncurrent assets from risk management activities
Deferred charges and other assets
Capitalization and Liabilities
Shareholders' equity
Common stock, no par value (stated at $.005 per share);
100,000,000 shares authorized; issued and outstanding:
2002 – 41,675,932 shares, 2001 – 40,791,501 shares
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income (loss)
Shareholders' equity
Long-term debt
Total capitalization
Current liabilities
Current maturities of long-term debt
Short-term debt
Accounts payable and accrued liabilities
Taxes payable
Customers' deposits
Liabilities from risk management activities
Deferred gas cost
Other current liabilities
Total current liabilities
Deferred income taxes
Noncurrent liabilities from risk management activities
Deferred credits and other liabilities
$ 2,103,428
$ 2,055,986
24,399
2,127,827
827,507
1,300,320
46,827
10,192
136,227
3,769
91,783
27,984
—
13,209
329,991
5,365
185,015
5,241
154,289
53,881
2,109,867
774,469
1,335,398
15,263
66,666
124,046
6,041
89,555
95,968
10,999
15,713
424,251
12,125
64,745
29,771
169,890
$ 1,980,221
$ 2,036,180
$
208
$
204
508,265
106,142
(41,380)
573,235
670,463
489,948
95,132
(1,420)
583,864
692,399
1,243,698
1,276,263
21,980
145,791
135,609
15,626
31,147
18,487
21,947
72,520
463,107
134,540
3,663
135,213
20,695
201,247
84,471
11,620
32,351
119,484
—
41,161
511,029
138,934
7,412
102,542
$ 1,980,221
$ 2,036,180
28
C O N D E N S E D C O N S O L I D A T E D
S T A T E M E N T S O F
I N C O M E
September 30 (Dollars in thousands, except per share data)
2002
2001
2000
Operating revenues
Purchased gas cost
Gross profit
Gas trading margin
Operating expenses
Operation and maintenance
Depreciation and amortization
Taxes, other than income
Total operating expenses
Operating income
Other income (expense)
Equity in earnings of Woodward Marketing, L.L.C.
Miscellaneous income (expense), net
Total other income (expense)
Interest charges
Income before income taxes
Income taxes
Net income
Basic net income per share
Diluted net income per share
Cash dividends per share
Weighted average shares outstanding:
Basic
Diluted
$
950,849
$ 1,442,275
$
850,152
558,247
392,602
38,538
158,119
81,469
36,221
275,809
155,331
—
(1,321)
(1,321)
59,174
94,836
35,180
59,656
1.45
1.45
1.18
41,171
41,250
$
$
$
$
1,067,555
374,720
488
139,608
67,664
37,655
244,927
130,281
8,062
(1,874)
6,188
47,011
89,458
33,368
56,090
1.47
1.47
1.16
38,156
38,247
$
$
$
$
524,446
325,706
—
147,897
63,855
28,638
240,390
85,316
7,307
7,437
14,744
43,823
56,237
20,319
35,918
1.14
1.14
1.14
31,461
31,594
$
$
$
$
29
C O N D E N S E D C O N S O L I D A T E D
S T A T E M E N T S O F C A S H F L O W S
Year ended September 30 (Dollars in thousands)
2002
2001
2000
$
59,656
$
56,090
$
35,918
63,855
3,065
18,251
—
—
(5,831)
(61,062)
54,196
(75,557)
(32,000)
957
—
—
6,467
(100,133)
81,743
—
(14,567)
(35,995)
13,550
—
44,731
(1,206)
8,585
7,379
Cash Flows from Operating Activities
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization:
Charged to depreciation and amortization
Charged to other accounts
Deferred income taxes
Other
Net assets/liabilities from risk management activities
Gain on sale of non-regulated assets
Changes in assets and liabilities
Net cash provided by operating activities
Cash Flows Used in Investing Activities
Capital expenditures
Acquisitions
Retirements of property, plant and equipment, net
Assets for leasing activities
Increase in cash from acquisition
Proceeds from sale of assets, net
81,469
2,452
14,509
(3,371)
(9,576)
—
151,092
296,231
(132,252)
(15,747)
(1,725)
(8,511)
—
—
67,664
2,806
18,501
(979)
13,881
—
(74,968)
82,995
(113,109)
(363,399)
(1,460)
(5,377)
8,644
6,625
Net cash used in investing activities
(158,235)
(468,076)
Cash Flows from Financing Activities
Net increase (decrease) in short-term debt
Net proceeds from issuance of long-term debt
Repayment of long-term debt
Cash dividends paid
Issuance of common stock
Net proceeds from equity offering
Net cash provided (used) by financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
(55,456)
—
(20,651)
(48,646)
18,321
—
(106,432)
31,564
15,263
(48,800)
347,099
(17,670)
(44,112)
14,405
142,043
392,965
7,884
7,379
$
46,827
$
15,263
$
30
R E P O R T O F
I N D E P E N D E N T A U D I T O R S
To Shareholders of Atmos Energy Corporation:
We have audited, in accordance with generally
accepted auditing standards, the consolidated
balance sheets of Atmos Energy Corporation at
September 30, 2002 and 2001, and the related
consolidated statements of income, shareholders’
equity and cash flows for each of the three years
in the period ended September 30, 2002 (not
presented separately herein) and in our report dated
November 8, 2002, we expressed an unqualified
opinion on those consolidated financial statements.
In our opinion, the information set forth in the
accompanying condensed consolidated balance sheets
and statements of income and cash flows are fairly
stated in all material respects in relation to the basic
consolidated financial statements from which they
have been derived.
Dallas, Texas
November 8, 2002
31
S T A T I S T I C A L S U M M A R Y
C O N S O L I D A T E D F I N A N C I A L A N D
( 1 9 9 2 - 2 0 0 2 )
Year ended September 30
2002
2001
2000
1999
1998
Balance Sheet Data at September 30 (Dollars in thousands)
Capital expenditures
Net property, plant and equipment
Working capital
Total assets
Shareholders’ equity
Long-term debt, excluding current maturities
Total capitalization
Income Statement Data (Dollars in thousands, except per share data)
Operating revenues
Gross profit
Net income
Net income per share – diluted
Common Stock Data
Shares outstanding (In thousands)
End of year
Weighted average
Cash dividends per share
Shareholders of record
Market price – High
Low
End of year
Book value per share at end of year
Price/Earnings ratio at end of year
Market/Book ratio at end of year
Annualized dividend yield at end of year
Customers and Volumes (As metered)
Gas sales volumes (MMcf)
Gas transportation volumes (MMcf)
Total throughput (MMcf)
Meters in service at end of year
Total meters and propane customers
Heating degree days #
Degree days as a percentage of normal
Average gas sales price per Mcf sold
Average purchased gas cost per Mcf sold
Average transportation fee per Mcf
Statistics
Return on average shareholders’ equity
Number of employees
Net plant per meter
Operating, maintenance and administrative
expense per meter
Customers per employee
Times interest earned before income taxes
$
$
$
$
$
$
$
$
$
$
$
$
132,252
1,300,320
(133,116)
1,980,221
573,235
670,463
1,243,698
950,849
392,602
59,656
1.45
41,676
41,250
1.18
28,829
24.46
18.37
21.50
13.75
14.83
1.56
5.5%
145,488
63,053
208,541
1,389,341
1,389,341
3,368
94%
6.20
3.81
.58
9.9%
2,338
936
101
594
2.55
$
113,109
1,335,398
(86,778)
2,036,180
583,864
692,399
1,276,263
$ 1,442,275
374,720
56,090
1.47
$
$
$
$
$
$
$
$
$
$
40,792
38,247
1.16
30,524
26.25
19.31
21.60
14.31
14.69
1.51
5.4%
156,544
61,230
217,774
1,386,323
1,386,323
4,124
115%
8.93
6.83
.47
10.4%
2,361
963
130 ‡
587
2.83
32
$
$
$
$
$
$
$
$
$
$
$
$
75,557
982,346
(181,890)
1,348,758
392,466
363,198
755,664
850,152
325,706
35,918
1.14
31,952
31,594
1.14
32,394
25.00
14.75
20.63
12.28
18.09
1.68
5.5%
138,199
59,365
197,564
1,096,599
1,096,599
2,096
82%
5.65
3.79
.40
9.3%
1,885
896
135
582
2.28
$
$
$
$
$
$
$
$
$
$
$
$
110,353
965,782
(151,622)
1,230,537
377,663
377,483
755,146
690,196
299,794
17,744
.58
31,248
30,819
1.10
35,179
32.69
23.06
24.13
12.09
41.59
2.00
4.6%
140,119
55,468
195,587
1,037,995
1,077,534
3,374
85%
4.53
2.79
.42
4.7%
2,062
930
146
523
1.56
$
$
$
$
$
$
$
$
$
$
$
$
134,989
917,860
(116,679)
1,141,390
371,158
398,548
769,706
848,208
331,836
55,265
1.84
30,398
30,031
1.06
36,949
31.06
24.63
28.56
12.21
15.52
2.34
3.7%
159,373
56,224
215,597
1,004,532
1,041,932
3,799
95%
4.87
3.24
.43
15.8%
2,193
914
136
475
3.09
1997*
1996
1995
1994†
1993†
1992†
$
$
$
$
$
$
$
$
$
$
$
$
122,312
849,127
(169,518)
1,088,311
327,260
302,981
630,241
906,835
329,654
23,838
.81
29,642
29,422
1.01
29,867
27.88
22.13
24.88
11.04
30.71
2.25
4.1%
164,208
48,800
213,008
985,448
1,014,545
3,909
98%
5.11
3.51
.41
7.3%
2,679
862
183
379
2.04
$
$
$
$
$
$
$
$
$
$
$
$
117,589
770,211
(102,764)
1,010,610
329,582
276,162
605,744
886,691
324,412
41,151
1.42
29,242
28,994
.98
36,472
31.00
18.00
23.38
11.27
16.46
2.07
4.2%
178,293
44,146
222,439
976,308
1,002,416
4,043
101%
4.51
3.15
.43
13.0%
2,863
789
160
350
3.00
$
$
$
$
$
$
$
$
$
$
$
$
103,904
697,287
(41,980)
900,948
304,349
294,463
598,812
749,555
300,158
28,808
1.06
28,246
27,208
.96
31,782
20.63
15.88
19.38
10.77
18.28
1.80
5.0%
166,656
47,647
214,303
949,213
972,572
3,706
93%
4.07
2.70
.42
10.1%
2,944
735
163
330
2.44
$
$
$
$
$
$
$
$
$
$
$
$
85,471
638,787
(32,340)
829,385
267,584
282,647
550,231
826,302
297,020
26,772
1.05
25,911
25,604
.91
27,005
21.13
16.38
17.75
10.33
16.90
1.72
5.1%
170,691
47,882
218,573
943,728
965,421
3,855
97%
4.41
3.10
.45
10.3%
3,052
677
169
316
2.45
$
$
$
$
$
$
$
$
$
$
$
$
74,110
592,887
(31,830)
786,739
251,317
257,696
509,013
794,893
289,394
29,694
1.21
25,183
24,535
.82
24,649
20.63
13.50
20.25
9.98
16.74
2.03
4.1%
166,065
51,665
217,730
888,315
908,813
4,080
102%
4.32
3.04
.42
12.5%
3,105
645
169
293
2.47
$
$
$
$
$
$
$
$
$
$
$
$
71,056
552,599
(16,398)
723,632
223,984
269,887
493,871
708,968
264,098
21,216
.91
24,100
23,324
.79
12,989
15.25
12.63
14.88
9.29
16.35
1.60
5.3%
151,316
43,320
194,636
876,142
897,262
3,676
92%
4.20
2.94
.50
10.1%
3,102
611
163
289
2.07
* Amounts for years before 1997 have been restated for pooling of interests with United Cities Gas Company in July 1997.
† Share data have been adjusted for a 3-for-2 stock split in May 1994, and amounts have been restated for pooling of interests with Greeley Gas Company in December 1993.
# Heating degree days for 2002 and 2001 are adjusted for service areas with weather-normalized operations. Heating degree days for years prior to 2001 are not adjusted for
service areas with weather-normalized operations, as that information was not available.
‡ Adjusted for partial-year results of Louisiana Gas Service Company, which was acquired in July 2001.
Although 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. Further, the Company
undertakes no obligation to update or revise its forward-
looking statements, whether as a result of new
information, future events or otherwise.
F O R W A R D - L O O K I N G S T A T E M E N T S
The matters discussed or incorporated by reference
in this Summary Annual Report 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 fact included in
this report 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 report 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 strategy,
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, 2002.
34
A T M O S E N E R G Y O F F I C E R S
Senior Management Team
Nonutility Business
Robert W. Best
Chairman, President and Chief Executive Officer
Ron W. McDowell
Vice President, New Business Ventures
Shared Services
Leslie H. Duncan
Vice President and Chief Information Officer
Shirley A. Hines
Corporate Secretary
Susan C. Kappes
Vice President, Investor Relations and Corporate Communications
Robert E. Mattingly
Vice President, Gas Supply
Fred E. Meisenheimer
Vice President and Controller
Gordon J. Roy
Vice President, Security and Compliance
Laurie M. Sherwood
Vice President, Corporate Development, and Treasurer
J. Patrick Reddy
Senior Vice President and Chief Financial Officer
R. Earl Fischer
Senior Vice President, Utility Operations
JD Woodward
Senior Vice President, Nonutility Operations
Louis P. Gregory
Senior Vice President and General Counsel
Wynn D. McGregor
Vice President, Human Resources
Utility Divisions
J. Kevin Akers
President, Mississippi Valley Gas Division
Thomas R. Blose, Jr.
President, Mid-States Division
Conrad E. Gruber
President, Louisiana Division
Tom S. Hawkins, Jr.
President, Texas Division
John A. Paris
President, Kentucky Division
Gary L. Schlessman
President, Colorado–Kansas Division
35
Dr. Thomas C. Meredith
Chancellor of the University System of Georgia
Atlanta, Georgia
Board member since 1995
Committees: Audit, Nominating
Phillip E. Nichol
Senior Vice President of Central Division Staff
UBS PaineWebber Incorporated
Dallas, Texas
Board member since 1985
Committees: Nominating (Chairman), Human
Resources, Work Session/Annual Meeting
Carl S. Quinn
General Partner, Quinn Oil Company, Ltd.
East Hampton, New York
Board member since 1994
Committees: Audit, Executive, Nominating
Charles K. Vaughan
Formerly Chairman of the Board
Atmos Energy Corporation
Dallas, Texas
Board member since 1983
Committee: Executive (Chairman)
Richard Ware II
President, Amarillo National Bank
Amarillo, Texas
Board member since 1994
Committees: Nominating,
Work Session/Annual Meeting
Lee E. Schlessman
Honorary Director
President, Dolo Investment Company
Denver, Colorado
Retired from Board in 1998
B O A R D O F D I R E C T O R S
Travis W. Bain II
Chairman, Texas Custom Pools, Inc.
Plano, Texas
Board member since 1988
Committees: Work Session/Annual Meeting
(Chairman), Audit, Human Resources
Robert W. Best
Chairman, President and Chief Executive Officer
Atmos Energy Corporation
Dallas, Texas
Board member since 1997
Committee: Executive
Dan Busbee
Attorney
Dallas, Texas
Board member since 1988
Committees: Audit (Chairman), Human
Resources
Richard W. Cardin
Consultant, and retired partner of
Arthur Andersen LLP
Nashville, Tennessee
Board member since 1997
Committees: Audit, Nominating
Thomas J. Garland
Chairman of the Tusculum Institute for Public
Leadership and Policy
Greeneville, Tennessee
Board member since 1997
Committees: Human Resources,
Work Session/Annual Meeting
Richard K. Gordon
Vice Chairman, Investment Banking
Merrill Lynch & Company
Houston, Texas
Board member since 2001
Committee: Human Resources
Gene C. Koonce
Formerly Chairman of the Board, President and
Chief Executive Officer
United Cities Gas Company
Nashville, Tennessee
Board member since 1997
Committees: Human Resources (Chairman),
Executive, Work Session/Annual Meeting
36
C O R P O R A T E
I N F O R M A T I O N
Common Stock Listing
New York Stock Exchange. Trading symbol: ATO
Stock Transfer Agent and Registrar
Shareholder inquiries on stock transfers may be directed to EquiServe
Trust Company, N.A., P.O. Box 43010, Providence, RI 02940-3010.
You may also call the interactive voice response system 24 hours a day
at 1-800-543-3038. To speak to a customer service representative,
call between 9 a.m. and 6 p.m. Eastern time, Monday through Friday.
You may also send an e-mail through our agent’s Web site at
http://www.equiserve.com and refer to Atmos Energy in your e-mail.
Independent Auditors
Ernst & Young LLP
2121 San Jacinto, Suite 1500
Dallas, Texas 75201
(214) 969-8000
Form 10-K
Atmos Energy Corporation’s Annual Report on Form 10-K is available
upon request from Investor Relations, Atmos Energy Corporation,
P.O. Box 650205, Dallas, Texas 75265-0205 or by calling 1-800-38-ATMOS
(382-8667) between 8 a.m. and 5 p.m. Central time. Atmos Energy’s
Form 10-K may also be viewed on Atmos Energy’s Web site:
http://www.atmosenergy.com.
Annual Meeting of Shareholders
The Annual Meeting of Shareholders will be held at the Crowne Plaza
Hotel, 200 E. Amite Street, Jackson, Mississippi 39201 on Wednesday,
February 12, 2003, at 11 a.m. Central Standard Time.
Atmos Energy Information by Telephone
Atmos Energy Corporation shareholder information is available by
phone seven days a week, 24 hours a day through EquiServe’s interactive
voice response system. To transfer stock, listen to current company
information and access daily stock quotes without the assistance of a
customer service representative, call 1-800-543-3038 and have your
Atmos Energy shareholder account number and your Social Security
or federal taxpayer ID number.
Atmos Energy on the Internet
Information about Atmos Energy is available on the Internet at
http://www.atmosenergy.com. Our Web site includes news releases,
current and historical financial reports and other investor
information, management biographies, customer information and
information about Atmos Energy’s operations and utility
service areas.
Atmos Energy Corporation Contacts
Shareholder and Direct Stock Purchase Plan Information:
1-800-38-ATMOS (382-8667) between 8 a.m. and 5 p.m. Central time.
InvestorRelations@atmosenergy.com
Financial Information for Securities Analysts, Investment Managers
and General Information:
Susan C. Kappes
Vice President, Investor Relations and Corporate Communications
(972) 855-3729 (office)
(972) 855-3040 (fax)
susan.kappes@atmosenergy.com
Direct Stock Purchase Plan
Atmos Energy Corporation has a Direct Stock Purchase Plan that is
available to all investors.
© 2002 by Atmos Energy Corporation. All rights reserved.
Atmos EnergyTM is a trademark and Spirit of ServiceSM is a service mark
of Atmos Energy Corporation.
For an initial Investment Form or Enrollment Authorization Form
and a Plan Prospectus, please call Atmos Energy’s Shareholder Relations
at 1-800-38-ATMOS (382-8667) between 8 a.m. and 5 p.m. Central
time or EquiServe at 1-800-543-3038. The Prospectus is also available
on the Internet at http://www.atmosenergy.com. You may also
obtain information by writing to Shareholder Relations, Atmos Energy
Corporation, P.O. Box 650205, Dallas, Texas 75265-0205.
This is not an offer to sell, or a solicitation to buy, any securities of
Atmos Energy. Shares of Atmos Energy common stock purchased through
the Direct Stock Purchase Plan will be offered only by Prospectus.
Atmos Energy Corporation
P.O. Box 650205
Dallas, Texas 75265-0205
atmosenergy.com
3100-AR-2003