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Blue skies, clear skies: 4 reasons to be optimistic
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A Future as
L i m i t l e s s a s t h e S k y
NAT U R A L G A S I S O U R F U T U R E . Not just for our company and our
customers, but for the future of our country. As our nation’s policymakers seek
new energy possibilities, natural gas—with its reliable delivery infrastructure
and clean-burning efficiency—offers the country a bridge to the future.
At Atmos Energy, our brand reflects this optimistic outlook—a
tomorrow without limits. As the largest all-natural-gas provider in the
United States, our brand stands for four essential values:
SAFE AND
1
RELIABLE SERVICE AS OUR TOP PRIORITY.
2
THE COMFORT, CONVENIENCE,
EFFICIENCY AND ENVIRONMENTAL BENEFITS OF NATURAL GAS.
3
EXCEL-
LENCE IN SERVING OUR CUSTOMERS AND LO OKING FOR WAYS TO IMPROVE.
4
TRUST BET WEEN OUR COMPANY AND THE COMMUNITIES WE SERVE.
For our company and our country, 2008 was a pivotal year. Energy was
front and center. From global warming to the price at the pump, from the
national elections to the world economy, energy was in the news.
As we have for more than 100 years, Atmos Energy continued to meet
our customers’ energy demands, improve our service promise, uphold
our high standards for safety and reliability, enhance our communities by
taking care of our customers and, all the while, keep our focus on financial
performance with a keen eye toward tomorrow.
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FINANCIAL HIGHLIGHTS
Year Ended September 30
Dollars in thousands, except per share data 2008 2007 Change
Operating revenues
Gross profit
Natural gas distribution net income
Regulated transmission and storage net income
Natural gas marketing net income
Pipeline, storage and other net income
Total
Total assets
Total capitalization*
Net income per share – diluted
Cash dividends per share
Book value per share at end of year
Consolidated natural gas distribution throughput (MMcf)
Consolidated regulated transmission and storage transportation volumes (MMcf)
Consolidated natural gas marketing 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
$ 7,221,305
$ 1,321,326
$ 5,898,431
$ 1,250,082
$
$
92,648
41,425
29,989
16,269
180,331
$ 6,386,699
$ 4,172,284
2.00
$
1.30
$
22.60
$
429,354
595,542
389,392
2,820
$
73,283
34,590
45,769
14,850
$ 168,492
$ 5,895,197
$ 4,092,069
1.92
$
1.28
$
22.01
$
427,869
505,493
370,668
2,879
100%
100%
3,191,779
3,187,127
8.8%
8.8%
(including short-term debt) at end of year
45.4%
46.3%
Shareholders of record
Weighted average shares outstanding – diluted (000s)
21,756
90,272
22,829
87,745
* Total capitalization represents the sum of shareholders’ equity and long-term debt, excluding current maturities.
22.4%
5.7%
26.4 %
19.8%
(34.5)%
9.6%
7.0%
8.3%
2.0%
4.2%
1.6%
2.7%
0.3%
17.8%
5.1%
(2.0)%
—
0.1%
—
(1.9)%
(4.7)%
2.9%
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 manage-
ment’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 executed all certifications with respect to the fi-
nancial statements contained therein and have completed management’s report on
internal control over financial reporting, which are required under the Sarbanes-
Oxley Act of 2002 and all related rules and regulations of the Securities and Ex-
change Commission. Investors may request, without charge, our Annual Report on
Form 10-K for the fiscal year ended September 30, 2008, by calling Investor Relations
at 972-855-3729 between 8 a.m. and 5 p.m. Central time. Our Annual Report on
Form 10-K also is available on Atmos Energy’s Web site at www.atmosenergy.com.
Additional investor information is presented on pages 33 and 34 of this report.
Opposite: Atmos Energy construction and maintenance
technicians inspect new plastic piping destined for installation
to help ensure the integrity of our pipelines.
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Dear Fellow
S h a r e h o l d e r
OU R 2 0 0 8 F I S C A L Y E A R , E N D E D S E P T E M B E R 3 0 , WA S H I G H LY
SU C C E S SF U L . Yet, at year-end, the economy was overshadowed by the
world’s worst financial and credit crisis since the Great Depression—
causing growing uncertainties for both our customers and investors. Such
a sobering situation makes our latest record earnings all the more
valuable while it emphasizes the importance of prudent strategies to
achieve continued performance.
Fiscal 2008 consolidated net income increased 7 percent, year
over year, to $180.3 million, and earnings per diluted share
went up 4.2 percent from $1.92 in fiscal 2007 to $2.00 in fiscal
Rate strategy aids
regulated operations
2008. Looking at the longer trend, Atmos Energy’s compound
Net income from regulated operations in 2008 contributed
average growth rate for diluted earnings per share over the
almost three-fourths of net income, or $1.49 per diluted
past five years was 5.4 percent—furthering our stated goal
share. Combined earnings from our natural gas distribution
of increasing earnings, on average, between 4 percent and 6
segment and from our regulated transmission and storage
percent a year.
$1.82
$1.92
$2.00
$1.72
$1.58
04 05 06 07 08
Net Income per Diluted Share
segment increased 24 percent to $134.1 million.
During the fiscal year, we resolved 12 rate cases and other
regulatory proceedings, which contributed $34.5 million of
incremental revenues. In the largest of these cases, we negoti-
ated a three-year settlement with 438 of the 439 Texas cities
served by our Mid-Tex Division. We obtained desired
outcomes in other cases that were concluded in Georgia,
Louisiana, Kansas, Tennessee, Virginia and West Texas.
These rate-case results support our goal of stabilizing
our regulated earnings by decoupling our distribution
revenues from our customers’ gas consumption. Today
about 97 percent of our distribution margins are unaffected
by changes in weather due to weather normalization and
similar rate-design mechanisms. We are continuing to seek
In fiscal 2008, we paid dividends totaling $1.30 per share,
additional improvements in our rate design to eliminate or
with a dividend payout ratio of 65 percent. In November 2008,
reduce price volatility and provide more predictable and
the board of directors again raised the annual dividend by
stable utility bills for our customers.
2 cents a share to an indicated rate of $1.32. This increase,
Traditional rate structures have discouraged utilities
taking into account all mergers and acquisitions, marked the
from offering energy-saving products and services by tying
company’s 25th consecutive annual dividend increase.
the recovery of their allowed rate of return to the amount of
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BL UE
SKIES ,
C LEAR
SKIES
To ensure continued reliability
for serving our regulated distribution
customers in Texas as well as to com-
pete for new transportation business,
Atmos Pipeline–Texas is expanding its
system to serve the growing area
north of Austin. When completed in
our fiscal 2009 third quarter, this new
loop will add sufficient transmission
capacity along the I-35 corridor in the
southern part of our system to serve
new customer growth for many years
in the future.
Nonregulated
operations
contribute 26%
of net income
Net income for nonregulated opera-
Robert W. Best, chairman and chief executive officer, (left)
and Kim R. Cocklin, president and chief operating officer
natural gas delivered to customers. In return for more rate
tions in 2008 declined 24 percent, year over year, to $46.2
stabilization, we are launching energy efficiency and conser-
million, or 51 cents per diluted share.
vation programs in Texas and are enhancing our existing
Lower volatility in natural gas prices reduced the oppor-
Missouri program. In Colorado, we also are developing a
tunities for Atmos Energy Marketing to take advantage of
demand-side management program to meet new state
seasonal and basis pricing spreads. Although our sales
regulations. These programs typically involve weatherizing
volumes to large industrial customers and municipal gas
homes for low-income customers and promoting
utilities increased 5 percent over 2007 volumes, delivered gas
energy conservation.
Texas intrastate pipeline
benefits from Barnett Shale
unit margins remained flat compared to those in 2007.
Atmos Pipeline and Storage added incremental earnings
when it completed its Park City Gathering System in
Edmonson County, Kentucky, in May 2008. It also closed on
October 1, 2008, its purchase of the Shrewsbury Gathering
Our Texas intrastate pipeline turned in an exceptional
System. This smaller nearby system has the potential to
performance in 2008. The drilling boom in the Barnett Shale
double the number of gas wells now connected to the gathering
natural gas field near Fort Worth increased the total
system and to interconnect with the Park City system and
throughput of Atmos Pipeline–Texas by 18 percent over its
our other pipeline and storage assets in western Kentucky.
2007 delivered volumes and enhanced our ability to provide
Assessment work proceeded in northeast Louisiana on
reliable service to our customers.
our Fort Necessity Storage Project. In July, we completed a
In July, wellhead prices for natural gas began to decline,
successful nonbinding “open season,” which identified
and many producers in Texas began cutting back on drilling
many parties interested in contracting for service from the
new wells. Even so, the state’s natural gas production remains
proposed facility. We also engaged a financial adviser to seek
high, and much of that gas flows to market through our
potential project partners to mitigate the market risk and
pipeline system.
to assure access to development capital.
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BL UE
SKIES ,
C LEAR
SKIES
Fiscal 2009 outlook
remains positive
We believe that both the company and
its business will remain healthy and that
we will be able to achieve our financial
targets for fiscal 2009. We forecast that
earnings per diluted share will range
from $2.05 to $2.15.
Because of the uncertain economy, we
have taken steps to preserve our credit
and control discretionary costs. We are
pursuing a prudent approach toward new
construction and the borrowings needed
for expansion. We forecast that fiscal 2009
capital expenditures will be approximately
$510 million to $525 million, compared
to $472.3 million in fiscal 2008.
We have existing credit facilities in
place to guarantee sufficient liquidity for
all of our operations. Our cash flow
Atmos Energy Corporation celebrated 20 years of trading on the New York Stock Exchange on
October 1, 2008, as Charles K. Vaughan, retired company chairman and CEO, rang the NYSE
closing bell. He was accompanied by the company’s Management Committee and guests.
remains solid, and our collections are among the best in the
global climate change will likely encourage a greater use of
industry, as evidenced by the fact that our uncollectibles
natural gas for reducing the greenhouse gas emissions that
constitute less than 0.5 percent of total revenues.
contribute to climate change. Natural gas offers the United
We have assured our employees and the state agencies
States a bridge to the future, leading to cleaner, renewable
that regulate our operations that we will preserve all essential
energy while providing the most versatile fuel available for
functions to serve our customers. We will not make any
many needs.
cutbacks that might undermine the reliability and safety of
In fact, a 2008 study by the American Gas Foundation
our service. We also will continue to assist our customers
found that the increased direct use of natural gas in residential
who are having difficulty paying their monthly gas bills during
and commercial applications can increase the productivity
these trying economic times.
Natural gas serves
the nation
of our country’s existing energy supplies, reduce our overall
energy costs and cut carbon-related emissions.
Natural gas is an all-American resource, with 97 percent
of our supply coming from North America. The Potential Gas
Committee estimates the U.S. has at least an 82-year supply,
We expect the Obama administration and Congress will
and that estimate likely will go up significantly when updated
enact new policies to promote energy efficiency and
in 2009. New exploration technologies are unlocking natural
environmental improvements. Natural gas already is an
gas reserves once thought impossible to recover from shale
anchor in the new administration’s energy proposals, and
and other difficult-to-produce formations. As a result, we will
the president-elect has called for producing more gas on the
continue to work with all appropriate regulatory bodies to
Outer Continental Shelf and building an Alaskan pipeline
advocate the development and use of this critical resource.
to tap shut-in North Slope gas reserves.
A public policy measure that’s very important to our
Global climate change now occupies a place of unprece-
shareholders is preserving the current limitation on capital
dented importance in American politics. The concerns about
gains taxes, especially for capital-intensive businesses like
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BL UE
SKIES ,
C LEAR
SKIES
9%
17%
23%
51%
Natural Gas Distribution
Regulated Transmission and Storage
Natural Gas Marketing
Pipeline, Storage and Other
Net Income by Segment
We appreciate his long and distinguished service.
We also announced on December 2, 2008, that J. Patrick
Reddy resigned as senior vice president and chief financial
officer, effective December 31. Pat joined the company in 1998
and served as vice president, corporate development, and as
treasurer before being promoted to his current position in
2000. During his tenure, Atmos Energy made five significant
acquisitions to more than triple in size. On behalf of the board
of directors, I thank him for his many contributions and wish
him the best.
In the interim, Fred E. Meisenheimer, vice president and
controller, has been appointed by the board of directors to also
serve as chief financial officer.
On September 1, we welcomed Ruben E. Esquivel to the
natural gas distribution companies. Extending this limit on
board of directors. Mr. Esquivel is vice president for
the capital gains tax could help raise new funding and main-
community and corporate relations at The University of
tain investors’ confidence. We encourage you to ask your
Texas Southwestern Medical Center at Dallas. Previously, he
members of Congress to vote to preserve the full value of your
served for more than a decade as president and CEO and
dividends by making the capital gains cap permanent.
as vice chairman of a manufacturer of test and measurement
Leadership changes
announced
equipment for electrical power applications. He has been
extremely active in Dallas civic affairs and has been honored
repeatedly for his tireless commitment to the community.
One of the most important duties of senior management is
to prepare for the continued successful leadership of the
business. As part of our succession planning, we made two
Our brand
represents strength
high-level management changes.
Twenty years ago, the board of directors chose the name
Kim R. Cocklin, who had served as senior vice president,
Atmos Energy not only to differentiate a developing enter-
regulated operations, since June 2006, was promoted to the
prise, but also to distinguish its way of doing business. As
newly created position of president and chief operating officer,
Atmos Energy has grown because of the board’s clear vision,
effective October 1, 2008. Kim has had extensive experience
it has become a major American company, and our brand has
in all segments of the natural gas industry and has proved
come to reflect a set of consistent characteristics. In these
himself to be an excellent leader. In his current role, he oversees
unsettled times, our employees demonstrate these qualities
all regulated and nonregulated operations of the company.
everyday in all they do, and I thank them for their loyal
Michael E. Haefner was named senior vice president,
and dedicated service.
human resources, to succeed Wynn D. McGregor, who
Our annual report presents the four characteristics of our
retired October 1, 2008. Mike had been president of his own
brand and what the enterprise stands for today. More than
consulting firm and had worked for 10 years as senior vice
a trademark, our brand represents the strength of our
president of human resources for Sabre Holdings Corpora-
reputation. It is one of our most valuable assets—if not the
tion. He also had held leadership positions within Sabre while
most valuable one of all.
it was part of AMR Corporation and at Xerox Corporation
and Eastman Kodak Company.
Wynn McGregor, who joined Atmos Energy in 1987, had
served as senior vice president, human resources, since
Robert W. Best
October 2005. Previously, he had been vice president, human
Chairman and Chief Executive Officer
resources, for 11 years and had held other human-resources
management positions at Atmos Energy and other companies.
December 5, 2008
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A Natural Gas
F u t u r e
Natural gas has long been the bedrock of affordable energy for
homes and businesses in this country. While the energy focus of the
last century was on domestic and foreign oil, the 21st century holds
the possibilities of new energy sources—and the possibility of our
country making the leap from petroleum and coal to cleaner sources.
As entrepreneurs and governments alike focus on wind, hydro, solar
and even nuclear energy to power our future, natural gas offers us an
energy platform we can depend on today and tomorrow.
Energy That’s Responsible
Natural gas is not only available; it’s clean, efficient, safe and reliable. A clean-burning
fuel, natural gas is easy to use and easy on the environment. An efficient fuel, natural gas
can be transported thousands of miles without losing its energy the way electricity does.
Because it moves through extensive pipeline networks that span the
country, natural gas has transmission costs and carbon emissions
that are minimal compared to the rail and truck transportation
requirements for coal. A safe and reliable fuel, natural gas has a
proven history of serving America. More than 68 million U.S.
homes and businesses enjoy its benefits.
TOTAL EMISSIONS (Pounds per Billion Btu of Energy Input)
POLLUTANT
NATURAL GAS
OIL
COAL
Carbon Dioxide
117,000
164,000
208,000
Carbon Monoxide
Nitrogen Oxides
Sulfur Dioxide
Particulates
Mercur y
40
92
1
7
33
448
208
457
1,122
2,591
84
2,744
0.000
0.007
0.016
SOURCE: ENERGY INFORMATION ADMINISTRATION OF THE U.S. DEPARTMENT OF ENERGY
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Homes using natural gas
appliances produce up to
50%
LESS
carbon dioxide.
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Under the ground, safe and out of sight, Atmos Energy
operates approximately 83,500 miles of underground pipelines to
deliver more than 1 billion cubic feet of natural gas annually
while protecting communities, farms and ranches, livestock and
wildlife, and the environment.
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>
We have at least 100 years
of natural gas resources
right here in America.
Natural gas distribution areas
From our founding in Amarillo, Texas, 102 years ago,
we have grown to be the country’s largest all-natural-gas
distribution company with operations primarily in the
Southeastern and Midwestern states.
U . S . E N E R G Y C O N S U M P T I O N
Natural Gas 23%
Coal 22%
Oil 40%
Nuclear
8%
Biomass, Solar, Wind 4%
Hydroelectric 3%
Highly Efficient
As American as Natural Gas
Natural gas is a terrific value. Unlike coal, oil or electricity,
Right now, right here in America, we have supplies
natural gas comes out of the ground clean and ready to use.
of natural gas that experts say should last the rest of this
Virtually no refining, converting or energy-depleting
century. Our country owns a ready-to-use energy
and costly processes are required to provide natural gas
source. And, new technologies are opening up geologic
to consumers.
frontiers, like natural gas shale and deep offshore
With 2.3 million miles of natural gas pipelines running
deposits, which were once thought impossible to tap. As
underground, our country has a solid infrastructure that
a result, our country’s natural gas resources could carry
delivers nearly 97 percent of the original energy potential of
us at current demand far into the 22nd century.
each unit of natural gas. Electricity, on the other hand, can
Availability and environmental purity make natural
lose up to two-thirds of its original energy potential from fuel
gas the primary choice to reduce our dependence on
conversion at generating plants and losses in power lines.
foreign oil. The abundance of natural gas in the United
That just doesn’t happen with natural gas.
States makes it a reliable energy platform on which we
can add other clean and renewable forms of energy,
such as wind, solar and biofuels.
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Restaurant cuisine simply isn’t done
without natural gas cooktops.
Dallas Culinary Institute chef and
instructor Brendan Mesch
demonstrates the responsiveness
and elegance of a commercial-
quality gas range.
3.2million
T O MERS IN THE U
N A TUR
CUS
S .
GA
AL
S
.
Clean and Pristine
Warm and Comforting
Natural gas produces significantly fewer
harmful emissions and greenhouse gases
on its way to our homes and businesses. But that’s
just part of the story. Homes with natural gas appliances
Homes with natural gas are just more comfortable. Natural
gas heating is more even, and the warmth is more consistent
than it is with electric heating. The heat from a natural gas
furnace enters a room at a higher temperature, helping to
produce up to 50 percent less carbon dioxide than homes with
eliminate drafts and cool spots.
all-electric appliances.
Natural gas helps us preserve our dwindling unspoiled
countryside. It doesn’t require the acquisition and transporta-
tion processes, such as surface mining and 100-car unit
trains, needed to deliver coal for power plants. It doesn’t
require fleets of ocean tankers that spill millions of barrels of
oil on coastal beaches. And, it doesn’t require intrusive
high-voltage transmission lines running across the country
and through neighborhoods.
Homes served with natural gas are more attractive to
prospective buyers and have better resale value. Newer
amenities, such as outdoor kitchens, gas fireplaces and on-
demand water heaters, rely on the immediacy of the natural
gas flame. That’s also why professional chefs and home
gourmets alike appreciate gas ranges and cooktops. They
offer simmer-to-sizzle responsiveness.
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Safe, R eliable and
A v a i l a b l e
Delivering natural gas to customers safely and reliably is what we
do. Our company works together with federal, state and local
officials and public safety agencies to make natural gas pipelines the
safest and most dependable energy delivery system in the country.
Our natural gas pipelines and storage facilities are inherently safer
than other transportation methods because they are buried in the
ground. This keeps them relatively free from the effects of weather,
tampering and accidents.
The Gas Is Always On
Atmos Energy’s gas control centers in Dallas and in the Greater Nashville area monitor our system demand and supplies
24 hours a day, 7 days a week, to ensure that natural gas is flowing and there is enough to meet peak demands. In
addition, the company has professional trading operations in Dallas and Houston to buy gas supplies on the spot market
and for longer-term contracts. Monitoring usage, anticipating needs and buying natural gas efficiently help keep our
product available and reasonably priced even in the coldest winter seasons.
Where we operate, most people know us as the local natural gas distribution
company. However, other segments of our company keep natural gas powering
industrial facilities, power plants, municipal gas systems and military
installations. Our nonregulated gas marketing subsidiary, Atmos Energy
Marketing, sells natural gas to approximately 1,000 large users. It also provides
gas supply and asset management services to help ensure that our customers’ gas
supplies are available, economical and compliant with regulations.
Our Atmos Pipeline and Storage subsidiary operates our nonregulated
pipeline, gathering and storage assets. Recently, it has been developing or
acquiring gathering systems to move natural gas from wells to pipelines in western
Kentucky. It also is developing
a salt-dome gas storage project in
northeastern Louisiana.
In our Dallas trading room, Atmos Energy gas supply
professionals buy natural gas for upcoming needs and
negotiate longer-term supply contracts to ensure we have
sufficient resources to serve our customers reliably.
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Atmos Energy constantly inspects its pipelines with special
trucks, handheld equipment and even airplanes. Here, an all-terrain
vehicle with sensitive gas “sniffing” equipment checks a pipeline right
of way in the Tennessee countryside.
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>
Atmos Energy works closely with
firefighters, EMTs, police and
first-responders to help prevent
accidents and prepare for handling
critical situations.
Above: Atmos Energy technicians and field employees undergo continual
training and qualification to help ensure the safe and reliable operation of our
distribution and transmission system. Below: We use pipeline inspection
and repair devices, called pigs, to locate and repair cracks, corrosion and
other anomalies to ensure the integrity of our gas pipelines.
for example, Atmos Energy was among a selected group of
major corporations that participated with security officials
and international governments in the worldwide Cyber Storm
II drill to help prevent attacks on critical infrastructure.
We have long been tending to our pipelines and the gas
flowing in our system with extra precautions. The forerunner
to Atmos Energy was one of the first distributors to inject
an odorant into the natural gas flowing through pipelines in
the early 1930s. Today, we also “pig our pipes,” running
specialized equipment through our pipelines and using
sensitive instruments to detect cracks, remove corrosion and
inspect anomalies to prevent problems.
Smart Business Means
Safe Customers
Pipeline safety depends on good information and skilled
experts who constantly monitor the status of our transmis-
sion and distribution systems. We qualify or requalify more
than 900 Atmos Energy employees annually to make sure
they meet federal requirements for pipeline operators. We also
continually inspect our pipelines for leaks and degradation
to ensure integrity and reliability.
We work closely with firefighters, police and emergency
workers by providing training and specialized information to
prevent pipeline incidents and promote safety measures. We
also work with the Department of Homeland Security and
other agencies to prevent terrorism and cybercrime. In 2008,
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Calling 811 three days before
digging allows Atmos Energy,
the electric utility, cable and
telephone companies and
others to mark buried lines
to keep everyone safe.
Our fleet of service trucks displays the 811 emblem
to remind the public to dig safely.
Call 811
Safety at Home
We actively support the “Call Before You Dig” nationwide
Using natural gas is extremely safe because distributors
program for adults and school children. The program com-
like Atmos Energy put an odorant into the natural gas stream
municates in both English and Spanish to call 811 toll-free to
so that any leak is easy to detect. But we go much further
have all buried utility lines marked before digging or excavat-
than that. We produce safety programs, bill inserts and
ing. More than 60 percent of all pipeline accidents are caused
advertisements in English and Spanish to tell consumers
by third-party damage from digging or careless activities.
what to do and what not to do if they smell gas.
Calling 811, which is now the law in all states, is helping
We also inform our customers about the hazard of
reduce damage to natural gas and other pipelines.
carbon monoxide—what it is and the importance of having
carbon monoxide monitors. Furthermore, we distribute
safety information about other topics, such as using space
heaters, preventing accidental scalding and removing snow
from gas meters and roof vents during the winter.
AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT | 1 5
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Our Business Is
S e r v i c e
Service has always been a hallmark of our business. And, Atmos Energy
has always taken pride in the men and women who serve our customers
firsthand. From field technicians who install new service and maintain our
underground infrastructure, to customer billing associates who keep
bills accurate and up to date, to customer call center agents who strive for
resolution on the first call, to team leaders who look for ways to improve
our service—everyone at Atmos Energy is focused on the customer.
A Customer-Centered Vision
Most companies say they focus on the customer. But, with customer contact spread out among separate groups—and
even to foreign countries, it’s difficult to get customer service right. One group might be responsible for billing, another
for collections, another for customers’ calls and yet another for dispatching
service technicians.
Today, Atmos Energy has reshaped that process by putting all
customer-service functions under one organization. We put our
customers in the center and we put ourselves in our customers’ shoes,
redesigning and relearning processes from their point
of view. We are striving to bring fairness, positive
resolution and transparency to every interaction.
And, to make that second-
Our customer call
center agents work
nature, we treat our
closely with our service
employees that way, too.
technicians. To better
understand each
other’s job, agents ride
with technicians on
service calls, and tech-
nicians listen in as
agents handle calls.
ClearBill, our free, online bill-analysis tool, can help
customers understand how the weather, number of billing
days and various charges affect monthly gas bills.
16 | AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT
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A surprise visit to a customer by Jeff Hardgrave, vice
president of customer service, is business as usual. Atmos Energy
employees who directly serve our customers take turns doing
other customer-focused jobs to see the customer experience as a
seamless opportunity to form loyal relationships.
0091_AtmosARr3:AtmosAR 12/14/08 4:07 PM Page 18
Courtesy and Professionalism
82%
Responsiveness
Inquiry Resolution
Customer Communications
Competence
Convenience
Safety Consciousness
0%
25%
50%
77%
76%
76%
75%
73%
70%
75%
Customers responding Very Good or Good
on a five-point scale in fiscal year 2008
100%
Only the best is good enough for us. We continually
measure our customers’ attitudes about our service. In one survey, we ask
how we’re doing on seven traits that make up service excellence. Customers
are asked to rate us against the best brands they use. We far outperform
most products, services and other utilities.
Our commitment to
training, technology and
one-call solutions are
helping us build even
stronger relationships.
AhHa!
The “Ah Ha!” Moments
natural gas usage, to offer a payment plan that suits their needs
and to give them options to stay current in their payments.
Part of our redesigned customer focus includes learning how
It’s a completely new focus.
an action in one department affects another’s ability to serve
customers. We are encouraging our call center agents to ride
with service technicians, billing people to take turns handling
customer calls and executives to talk directly with customers.
Technology with
a Human Touch
We’ve even asked customers with unusual or complex
We also are deploying improved technology—not to reduce
issues to address our Leadership Team. These are valuable
contacts with customers, but to make those contacts more
learning experiences for all of us. The eye-opening, “Ah Ha!”
personal and meaningful. Our Advanced Metering Infra-
moments are helping us improve customer satisfaction.
structure program has proven to be a boon to understanding
We also have learned to look beyond our own walls to
when and how individual customers use natural gas. New
better understand the lives of our customers. At one time, we
wireless meters continuously record usage and automatically
had a department of employees whose job was to collect
interface with our billing and customer service departments.
bills. Now, the job of that same group of employees is to learn
In this way, if a question arises about a bill, we can see
about our customers, to help them find ways to manage their
the customer’s actual day-by-day usage. If it’s our mistake, we
18 | AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT
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Atmos Energy is expanding its Advanced Metering Infrastructure pilot project
in Louisiana and Texas to read customers’ meters by wireless radio technology.
This state-of-the-art metering system measures a customer’s hourly gas usage.
Atmos Energy’s innovative customer service delivers creative
solutions, such as using natural-gas-heated water in underground
pipes to melt snow off streets and sidewalks in Colorado.
Customers come in all shapes and sizes and with all kinds of needs,
including those of the State Fair of Texas, symbolized by Big Tex. Atmos
Energy serves the giant exhibition, which attracts more than 3 million
visitors and ranks as the largest state fair in the country.
correct it. If not, we can ask the customer about usage on a
Another program, Sharing the Warmth, assists those who
certain day. For example, a spike in usage might coincide with
need help paying their gas bills by putting them in touch with
heating up a pool for a backyard birthday party or hosting vis-
local energy-assistance agencies.
iting family members who took lots of showers.
More Ways to Pay
We have expanded our customers’ payment options. Besides
accepting checks by mail, we take online payments by credit
cards and electronic funds transfers from checking, savings
and other accounts. We also have an extensive network of
authorized local merchants that can transact bill payments in
person. In some communities, automated kiosks can accept
payments 24 hours a day.
We offer our Budget Billing plan to make bill amounts
more predictable and to level out monthly payments.
Call Centers That
Break the Mold
Our call centers are different for many reasons. First, they are
right here in the United States. Second, they’re staffed by
full-time Atmos Energy employees—not outsourced to generic
centers handling calls for multiple businesses. And, third,
every call we receive is recorded as we continuously strive for
resolving issues with one call. This approach has greatly
improved the quality of our service. As we solve issues for our
customers, we build those solutions back into our processes
to improve continuously.
AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT | 1 9
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A Trust We
H o l d D e a r
We are one of the country’s larger infrastructure businesses.
We not only have a physical presence in our communities, but also we
hold a presence of trust—the trust communities and neighbors place
in us. As the local gas company in more than 1,600 cities and towns, we
are always conscious of how to responsibly support the communities
we serve. With Atmos Energy, this trust goes beyond providing a
product. It encompasses how we bring better service along with our
natural gas product.
It’s how we actively participate in civic events and celebrations that boost
community spirit. It’s how we support, with funds and volunteer time, local
charitable activities as well as individuals, families and children with a
helping hand. It’s how we respond in times of disaster, crisis or uncertainty.
Promoting Conservation
and the Environment
We work to help customers conserve on natural gas consumption. On
our Web site and in our customer communications, we offer energy-
saving tips and detailed information to keep homes warm and energy
usage down. We also underwrite energy conservation and efficiency
programs to weatherize homes, particularly for our low-income customers.
We support numerous environmental and recycling programs in the communities where we live and work. For
example, we have been honored for our work to remediate former town gas sites. The residues and contamination buried
at these old gas works must be removed carefully to protect the public.
Weatherizing homes helps
keep families warm and
energy bills low. Our Web
site at atmosenergy.com
has easy conservation tips
as well as more detailed
information for using
natural gas wisely.
20 | AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT
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Atmos Energy helps those with low or fixed incomes make
the most of their energy dollars by weatherizing their homes
against leaks and drafts.
0091_AtmosARr3:AtmosAR 12/14/08 4:07 PM Page 22
>
As a Junior Achievement volunteer in
Glasgow, Kentucky, Operations
Supervisor Butch Chidester taught five
one-hour lessons about “Our City.”
In the final meeting about banking,
Chidester gave each of the third-graders
a calculator.
More than two dozen Atmos Energy employees in Murfreesboro,
Tennessee, volunteered their weekends and days off to build a new
Habitat for Humanity home for a local deserving family.
Using laser technologies and special techniques, we’ve
our regulators to help keep our costs low. By avoiding lengthy,
been able to return a number of these sites to safe and
litigated cases, we forge better agreements and reduce legal
productive community uses. In recognition of our efforts,
costs that ultimately increase service charges to customers.
the company received the Environmental Excellence New
Technology Award from the Southern Gas Association.
Atmos Energy also is the recipient of the Continuing
Excellence Award from the U.S. Environmental Protection
Agency for continual improvement in the STAR Program,
a voluntary partnership to reduce emissions of methane. The
company joined the Natural Gas STAR program in 1999.
Keeping Rates Affordable
Sharing Our Warmth
Our Sharing the Warmth program raises funds for commu-
nity energy-assistance agencies that help those who are
unable to pay their heating bills. Sharing the Warmth
primarily assists low-income working families and elderly
and disabled customers living on fixed incomes. Voluntary
donations from our customers and employees are matched
dollar-for-dollar by the company.
In our distribution business, which is regulated by cities and
Most funding for energy assistance agencies comes from
states, we work to establish standards and fair rates for our
the federal Low Income Home Energy Assistance Program.
service. In rate filings, we try to negotiate settlements with
Atmos Energy works with state energy-assistance officials to
22 | AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT
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>
For the Dallas Public Library, Atmos
Energy, working with many private
donors and the Friends of the Dallas
Public Library, contributed major
funding for a new bookmobile to
serve both the young and elderly in
neighborhoods across the city.
You’ll find our Big
Blue cookers and
Atmos Energy grill
chefs supporting their
communities at many
charitable events.
Atmos Energy employees gener-
ously support the United Way
campaigns in the communities we
serve. They also volunteer their
time to assist others during
company-sponsored “Days of
Caring” community-service events.
support expanding LIHEAP benefits for working and home-
Education and Adopt-A-School programs particularly
bound families who need help paying their energy bills. The
touch our hearts. Across our vast service territory, hundreds
company also coordinates with community groups, senior-
of our employees mentor students, teach reading, raise funds
citizens centers and churches to inform people who are eligi-
for schools and support higher education institutions.
ble for LIHEAP.
Strong Hands and a Big Heart
In serving a community, we become part of its fabric. Local
firefighters and emergency responders work alongside Atmos
Energy employees to promote safety around pipelines and to
protect the community if incidents should occur. When hurri-
canes, tornadoes, floods or other disasters strike, our employ-
ees are among the first on the scene to safely restore service to
our customers and to help the community recover.
We support numerous other charitable programs, as well,
such as United Way, Meals on Wheels, Komen Race for the
Cure, Habitat for Humanity and Special Olympics. You can
often find our “Big Blue” cooking trailers staffed by volunteer
employees grilling burgers and hot dogs at community events
or feeding disaster victims and emergency workers.
Atmos Energy’s employees throughout the country work
with community leaders, civic groups and chambers of com-
merce to meet local needs where and when they arise.
AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT | 2 3
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A TMOS ENERG
Y A T A GLANCE
Year Ended September 30
2008 2007
Meters in service
Residential
Commercial
Industrial
Public authority and other
Total meters
Heating degree days
Actual (weighted average)
Percent of normal
Natural gas distribution sales volumes (MMcf)
Residential
Commercial
Industrial
Public authority and other
Total
Natural gas distribution transportation volumes (MMcf)
Total natural gas distribution throughput (MMcf)
Intersegment activity (MMcf)
Consolidated natural gas distribution throughput (MMcf)
Consolidated regulated transmission and storage transportation volumes (MMcf)
Consolidated natural gas marketing throughput (MMcf)
Operating revenues (000s)
Natural gas distribution sales revenues
Residential
Commercial
Industrial
Public authority and other
Total gas distribution sales revenues
Transportation revenues
Other gas revenues
Total natural gas distribution revenues
Regulated transmission and storage revenues
Natural gas marketing revenues
Pipeline, storage and other revenues
Total operating revenues (000s)
Other statistics
Gross plant (000s)
Net plant (000s)
Miles of pipe
Employees
24 | AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT
2,911,475
268,845
2,241
9,218
3,191,779
2,893,543
272,081
2,339
19,164
3,187,127
2,820
100%
2,879
100 %
163,229
93,953
21,734
13,760
292,676
141,083
433,759
(4,405)
429,354
595,542
389,392
166,612
95,514
22,914
12,287
297,327
135,109
432,436
(4,567)
427,869
505,493
370,668
$ 2,131,447
1,077,056
212,531
137,821
3,558,855
59,712
35,771
3,654,338
108,116
3,436,563
22,288
$ 7,221,305
$ 1,982,801
970,949
195,060
114,298
3,263,108
59,195
35,844
3,358,147
84,344
2,432,280
23,660
$ 5,898,431
$ 5,730,156
$ 4,136,859
83,645
4,750
$ 5,396,070
$ 3,836,836
82,725
4,653
0091_AtmosARr3:AtmosAR 12/14/08 4:07 PM Page 25
CO NDENSED CONSOLID
A T ED BALANCE SHEETS
September 30
Dollars in thousands, except share data
2008
2007
Assets
Property, plant and equipment
Construction in progress
Less accumulated depreciation and amortization
Net property, plant and equipment
Current assets
Cash and cash equivalents
Accounts receivable, less allowance for doubtful accounts of
$15,301 in 2008 and $16,160 in 2007
Gas stored underground
Other current assets
Total current assets
Goodwill and intangible assets
Deferred charges and other assets
Capitalization and Liabilities
Shareholders’ equity
Common stock, no par value (stated at $.005 per share);
200,000,000 shares authorized; issued and outstanding:
2008 – 90,814,683 shares, 2007 – 89,326,537 shares
Additional paid-in capital
Accumulated other comprehensive loss
Retained earnings
Shareholders’ equity
Long-term debt
Total capitalization
Current liabilities
Accounts payable and accrued liabilities
Other current liabilities
Short-term debt
Current maturities of long-term debt
Total current liabilities
Deferred income taxes
Regulatory cost of removal obligation
Deferred credits and other liabilities
$ 5,650,096
80,060
5,730,156
1,593,297
4,136,859
$ 5,326,621
69,449
5,396,070
1,559,234
3,836,836
46,717
60,725
477,151
576,617
184,619
1,285,104
739,086
225,650
$ 6,386,699
380,133
515,128
111,189
1,067,175
737,692
253,494
$ 5,895,197
$
454
1,744,384
(35,947)
343,601
2,052,492
2,119,792
4,172,284
395,388
460,372
350,542
785
1,207,087
441,302
298,645
267,381
$ 6,386,699
$
447
1,700,378
(16,198)
281,127
1,965,754
2,126,315
4,092,069
355,255
408,273
150,599
3,831
917,958
370,569
271,059
243,542
$ 5,895,197
AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT | 2 5
0091_AtmosARr3:AtmosAR 12/14/08 4:07 PM Page 26
CONDENSED CONSOLID
A TED ST
A T EMENTS OF INCOME
Year Ended September 30
Dollars in thousands, except per share data
2008
2007
2006
$ 3,655,130
195,917
4,287,862
31,709
(949,313)
7,221,305
$ 3,358,765
163,229
3,151,330
33,400
(808,293)
5,898,431
$ 3,650,591
141,133
3,156,524
25,574
(821,459)
6,152,363
2,649,064
2,406,081
2,725,534
——
—
4,194,841
3,396
(947,322)
5,899,979
1,321,326
3,047,019
792
(805,543)
4,648,349
1,250,082
3,025,897
1,080
(816,718)
4,935,793
1,216,570
500,234
200,442
192,755
—
893,431
427,895
2,731
137,922
292,704
112,373
180,331
2.02
2.00
89,385
90,272
$
$
$
463,373
198,863
182,866
6,344
851,446
398,636
9,184
145,236
262,584
94,092
168,492
433,418
185,596
191,993
22,947
833,954
382,616
881
146,607
236,890
89,153
$ 147,737
1.94
1.92
$
$
1.83
1.82
86,975
87,745
80,731
81,390
$
$
$
Operating revenues
Natural gas distribution segment
Regulated transmission and storage segment
Natural gas marketing segment
Pipeline, storage and other segment
Intersegment eliminations
Purchased gas cost
Natural gas distribution segment
Regulated transmission and storage segment
Natural gas marketing segment
Pipeline, storage and other segment
Intersegment eliminations
Gross profit
Operating expenses
Operation and maintenance
Depreciation and amortization
Taxes, other than income
Impairment of long-lived assets
Total operating expenses
Operating income
Miscellaneous income, net
Interest charges
Income before income taxes
Income tax expense
Net income
Per share data
Basic net income per share
Diluted net income per share
Weighted average shares outstanding:
Basic
Diluted
26 | AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT
0091_AtmosARr3:AtmosAR 12/14/08 4:07 PM Page 27
CONDENSED CONSOLID
A TED ST
A T EMENTS OF CASH FL
OWS
Year Ended September 30
Dollars in thousands
Cash Flows from Operating Activities
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Impairment of long-lived assets
Depreciation and amortization:
Charged to depreciation and amortization
Charged to other accounts
Deferred income taxes
Stock-based compensation
Debt financing costs
Other
Changes in assets and liabilities
Net cash provided by operating activities
Cash Flows Used in Investing Activities
Capital expenditures
Other, net
Net cash used in investing activities
Cash Flows from Financing Activities
Net increase (decrease) in short-term debt
Net proceeds from issuance of long-term debt
Settlement of Treasury lock agreement
Repayment of long-term debt
Cash dividends paid
Issuance of common stock
Net proceeds from equity offering
Net cash provided by (used in) 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
2008
2007
2006
$ 180,331
$
168,492
$ 147,737
—
6,344
22,947
200,442
147
97,940
14,032
10,665
(5,492)
(127,132)
370,933
(472,273)
(10,736)
(483,009)
200,174
—
—
(10,284)
(117,288)
25,466
—
98,068
(14,008)
60,725
46,717
$
198,863
192
62,121
11,934
10,852
(1,516)
89,813
547,095
185,596
371
86,178
10,234
11,117
(2,871)
(149,860)
311,449
(392,435)
(10,436)
(402,871)
(425,324)
(5,767)
(431,091)
(213,242)
247,217
4,750
(303,185)
(111,664)
24,897
191,913
(159,314)
(15,090)
75,815
60,725
237,607
—
—
(3,264)
(102,275)
23,273
—
155,341
35,699
40,116
75,815
$
$
AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT | 2 7
0091_AtmosARr3:AtmosAR 12/14/08 4:07 PM Page 28
REPORT OF INDEPENDENT REGISTERED PUBLIC A
CCOUNTING FIRM
ON CONDENSED FINANCIAL ST
A T EMENTS
The Board of Directors and Shareholders of
Atmos Energy Corporation
We have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United
States), the consolidated balance sheets of Atmos Energy
Corporation at September 30, 2008 and 2007, and the related
consolidated statements of income, shareholders’ equity, and
cash flows for each of the three years in the period ended
September 30, 2008 (not presented herein); and in our report
dated November 18, 2008, we expressed an unqualified opin-
ion on those consolidated financial statements.
In our opinion, the information set forth in the accompany-
ing condensed consolidated financial statements is fairly
stated, in all material respects, in relation to the consoli-
dated financial statements from which it has been derived.
We also have audited, in accordance with the standards of
the Public Company Accounting Oversight Board (United
States), the effectiveness of Atmos Energy Corporation’s
internal control over financial reporting as of September 30,
2008, based on criteria established in Internal Control—
Integrated Framework issued by the Committee of Sponsor-
ing Organizations of the Treadway Commission and our
report dated November 18, 2008 (not presented separately
herein) expressed an unqualified opinion thereon.
Dallas, Texas
November 18, 2008
28 | AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT
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CONSOLID
A TED FINANCIAL AND ST
A TISTICAL SUMMAR
Y 2004–2008
Year Ended September 30
Balance Sheet Data at September 30 (000s)
Capital expenditures
Net property, plant and equipment
Working capital
Total assets
Shareholders’ equity
Long-term debt, excluding current maturities
Total capitalization
Income Statement Data
Operating revenues (000s)
Gross profit (000s)
Net income (000s)
Net income per diluted share
Common Stock Data
Shares outstanding (000s)
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)
Consolidated distribution gas sales volumes (MMcf)
Consolidated distribution gas transportation
volumes (MMcf)
Consolidated distribution throughput (MMcf)
Consolidated transmission and storage
transportation volumes (MMcf)
Consolidated natural gas marketing
throughput (MMcf)
Meters in service at end of year
Heating degree days*
Degree days as a percentage of normal
Gas distribution average cost of gas per Mcf sold
Gas distribution average transportation fee per Mcf
Statistics
Return on average shareholders’ equity
Number of employees
Net gas distribution plant per meter
Gas distribution operation and maintenance
expense per meter
Meters per employee – gas distribution
Times interest earned before income taxes
2008
2007
2006
2005
2004
$ 472,273
4,136,859
78,017
6,386,699
2,052,492
2,119,792
4,172,284
$ 392,435
3,836,836
149,217
5,895,197
1,965,754
2,126,315
4,092,069
$ 425,324
3,629,156
(1,616)
5,719,547
1,648,098
2,180,362
3,828,460
$ 333,183
3,374,367
151,675
5,610,547
1,602,422
2,183,104
3,785,526
$ 190,285
1,722,521
283,310
2,902,658
1,133,459
861,311
1,994,770
$7,221,305
1,321,326
180,331
2.00
$5,898,431
1,250,082
168,492
1.92
$6,152,363
1,216,570
147,737
1.82
$4,961,873
1,117,637
135,785
1.72
$2,920,037
562,191
86,227
1.58
$
$
$
$
$
90,815
90,272
1.30
21,756
29.46
25.09
26.62
22.60
13.31
1.18
4.9%
$
$
$
$
$
89,327
87,745
1.28
22,829
33.11
26.47
28.32
22.01
14.75
1.29
4.5%
$
$
$
$
$
81,740
81,390
1.26
24,690
29.11
25.79
28.55
20.16
15.69
1.42
4.4%
$
$
$
$
$
80,539
79,012
1.24
26,242
29.76
24.85
28.25
19.90
16.42
1.42
4.4%
$
$
$
$
$
62,800
54,416
1.22
27,555
26.86
23.68
25.19
18.05
15.94
1.40
4.8%
292,676
297,327
272,033
296,283
173,219
136,678
429,354
130,542
427,869
121,962
393,995
114,851
411,134
72,814
246,033
595,542
505,493
410,505
373,879
—
389,392
3,191,779
2,820
370,668
3,187,127
2,879
283,962
3,181,199
2,527
238,097
3,157,840
2,587
222,572
1,679,136
3,271
$
$
$
$
100%
9.05
.43
8.8%
4,750
1,091
122
700
3.06
$
$
$
$
100%
8.09
.44
87%
$
$
10.02
.49
8.8%
4,653
1,020
119
713
2.75
$
$
8.9%
4,632
969
112
723
2.55
$
$
$
$
89%
7.41
.49
9.0%
4,543
927
110
730
2.59
$
$
$
$
96%
6.55
.36
9.1%
2,864
994
116
612
3.05
*Heating degree days are adjusted for service areas with weather-normalized operations.
AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT | 2 9
A T M O S
E N E R G Y O F F I C E R S
Senior Management Team
Regulated Divisions
Robert W. Best
Chairman and
Chief Executive Officer
Kim R. Cocklin
President and
Chief Operating Officer
J. Patrick Reddy*
Senior Vice President and
Chief Financial Officer
Mark H. Johnson
Senior Vice President,
Nonregulated Operations
Louis P. Gregory
Senior Vice President and
General Counsel
Michael E. Haefner
Senior Vice President,
Human Resources
* Resigned effective December 31, 2008
30 | AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT
J. Kevin Akers
President,
Kentucky/Mid-States Division
Richard A. Erskine
President,
Atmos Pipeline–Texas Division
David E. Gates
President,
Mississippi Division
Gary W. Gregory
President,
West Texas Division
Tom S. Hawkins, Jr.
President,
Louisiana Division
John A. Paris
President,
Mid-Tex Division
Gary L. Schlessman
President,
Colorado-Kansas Division
A T M O S
E N E R G Y O F F I C E R S
Nonregulated Operations
Shared Services (continued)
Mark H. Johnson
President,
Atmos Energy Marketing, LLC
Richard J. Gius
Vice President and
Chief Information Officer
Shared Services
Ronald W. McDowell
Vice President,
New Business Ventures
Verlon R. Aston, Jr.
Vice President,
Governmental and
Public Affairs
Mark S. Bergeron
Vice President,
Gas Supply and Services
Charles M. Davis, Jr.
Vice President,
Corporate Development
Susan K. Giles
Vice President,
Investor Relations
Conrad E. Gruber
Vice President,
Strategic Planning
John J. Hardgrave
Vice President,
Customer Service
Dwala J. Kuhn
Corporate Secretary
Fred E. Meisenheimer†
Vice President and Controller
Laurie M. Sherwood
Vice President and Treasurer
†Appointed interim Chief Financial Officer effective Januay 1, 2009
AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT | 3 1
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,
Executive, Human Resources
Robert W. Best
Chairman and Chief
Executive Officer,
Atmos Energy Corporation
Dallas, Texas
Board member since 1997
Dan Busbee
Adjunct Professor,
Dedman School of Law,
Southern Methodist
University, Dallas, Texas
Board member since 1988
Committees: Audit
(Chairman), Executive,
Human Resources
Richard W. Cardin
Retired partner of Arthur
Andersen LLP
Nashville, Tennessee
Board member since 1997
Committees: Audit,
Nominating and
Corporate Governance
Richard W. Douglas
Executive Vice President,
Jones Lang LaSalle LLC
Dallas, Texas
Board member since 2007
Committees: Human
Resources, Work Session/
Annual Meeting
Ruben E. Esquivel
Vice President for
Community and Corporate
Relations, The University
of Texas Southwestern
Medical Center at Dallas
Dallas, Texas
Board member since 2008
Committees: Audit,
Human Resources
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
General Partner, Juniper
Energy LP, Juniper Capital
LP and Juniper Advisory LP
Houston, Texas
Board member since 2001
Committees: Human
Resources (Chairman),
Executive, Nominating and
Corporate Governance
Dr. Thomas C. Meredith
Retired, formerly
Commissioner of
Mississippi Institutions
of Higher Learning
Jackson, Mississippi
Board member since 1995
Committees: Audit,
Nominating and Corporate
Governance
Phillip E. Nichol
Retired Senior Vice
President of Central
Division Staff, UBS
PaineWebber Incorporated
Dallas, Texas
Board member since 1985
Committees: Nominating
and Corporate Governance
(Chairman), Executive,
Human Resources, Work
Session/Annual Meeting
Nancy K. Quinn
Principal, Hanover
Capital, LLC
East Hampton, New York
Board member since 2004
Committees: Audit,
Nominating and Corporate
Governance
Stephen R. Springer
Retired Senior Vice President
and General Manager,
Midstream Division, The
Williams Companies, Inc.
Syracuse, Indiana
Board member since 2005
Committee: Work Session/
Annual Meeting
Charles K. Vaughan
Retired 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
and Corporate Governance,
Work Session/Annual
Meeting
Lee E. Schlessman
Honorary Director
President, Dolo
Investment Company
Denver, Colorado
Retired from Board
in 1998
32 | AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT
0091_AtmosARr3:AtmosAR 12/14/08 4:08 PM Page 33
CORPORA
TE INFORMA
TION
Common Stock Listing
New York Stock Exchange. Trading symbol: ATO
Stock Transfer Agent and Registrar
American Stock Transfer and Trust Company
59 Maiden Lane
Plaza Level
New York, New York 10038
800-543-3038
To inquire about your Atmos Energy stock, please call AST at
the telephone number above. You may use the agent’s interactive
voice response system 24 hours a day to learn about transferring
stock or to check your recent account activity all without the
assistance of a customer service representative. Please have
available your Atmos Energy shareholder account number and
your Social Security or federal taxpayer ID number.
To speak to an AST customer service representative, please call
the same number between 8 a.m. and 7 p.m. Eastern time, Monday
through Thursday, or 8 a.m. to 5 p.m. Eastern time on Friday.
You also may send an e-mail message on our agent’s Web site
at http://www.amstock.com. Please refer to Atmos Energy in
your e-mail and include your Atmos Energy shareholder account
number and your Social Security or federal taxpayer ID number.
Independent Registered Public Accounting Firm
Ernst & Young LLP
2100 Ross Avenue, Suite 1500
Dallas, Texas 75201
214-969-8000
Form 10-K
Atmos Energy Corporation’s Annual Report on Form 10-K is
available at no charge from Investor Relations, Atmos Energy
Corporation, P.O. Box 650205, Dallas, Texas 75265-0205 or
by calling 972-855-3729 between 8 a.m. and 5 p.m. Central time.
Atmos Energy’s Form 10-K also may be viewed on Atmos
Energy’s Web site at http://www.atmosenergy.com.
Annual Meeting of Shareholders
The 2009 Annual Meeting of Shareholders will be held in the
Pavilion Ballroom at the Belo Mansion, 2101 Ross Avenue,
Dallas, Texas 75201 on Wednesday, February 4, 2009, at 11 a.m.
Central time.
Direct Stock Purchase Plan
Atmos Energy Corporation has a Direct Stock Purchase Plan
that is available to all investors. For an Enrollment Application
Form and a Plan Prospectus, please call AST at 800-543-3038.
The Prospectus is also available on the Internet at
http://www.atmosenergy.com. You may also obtain information
by writing to Investor 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 Corporation. Shares of Atmos Energy
common stock purchased through the Direct Stock Purchase
Plan will be offered only by Prospectus.
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, other investor
data, corporate governance documents, management
biographies, customer information and facts about Atmos
Energy’s operations.
Atmos Energy Corporation Contacts
To contact Atmos Energy’s Investor Relations, call 972-855-3729
between 8 a.m. and 5 p.m. Central time or send an e-mail
message to InvestorRelations@atmosenergy.com.
Securities analysts and investment managers, please contact:
Susan K. Giles
Vice President, Investor Relations
972-855-3729 972-855-3040 (fax)
InvestorRelations@atmosenergy.com
AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT | 3 3
0091_AtmosARr3:AtmosAR 12/14/08 4:08 PM Page 34
Forward-Looking Statements
Other Information
You can view this Summary Annual Report, our Annual Report
on Form 10-K and other financial documents for fiscal 2008 and
previous years on our Web site at http://www.atmosenergy.com.
If you are a shareholder who would like to receive our Summary
Annual Report and other company documents in the future
electronically, please sign up for electronic distribution. It’s
convenient and easy, and it saves costs to produce and distribute
these materials.
To receive these documents over the Internet next year, please
visit http://www.amstock.com and access your account to give
your consent. Please remember that accessing the Summary
Annual Report and other company documents over the Internet
may result in charges to you from your Internet service provider
or telephone company.
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 and 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 any
other of the Company’s documents or oral presentations, the
words “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “goal,”
“intend,” “objective,” “plan,” “projection,” “seek,” “strategy” 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 discussed in this report. These risks and uncertainties
are discussed in the Company’s Annual Report on Form 10-K
for the fiscal year ended September 30, 2008. Although the
Company believes these forward-looking statements to be reason-
able, 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 any of its forward-looking statements, whether
as a result of new information, future events or otherwise.
Front Cover: General Plant Operator Wayne Eads checks a customer’s gas
meter in Steamboat Springs, Colorado. Ensuring safe and reliable performance
of our natural gas distribution system in the 1,600 communities we serve is
our highest priority.
Back Cover: Jay Clapper, general plant operator in our Colorado-Kansas
Division, is one of 4,750 Atmos Energy employees dedicated to serving
our customers.
© 2008 Atmos Energy Corporation. All rights reserved. Atmos Energy® is a
registered trademark, and Atmos Energy–The Spirit of Service® is a registered
service mark of Atmos Energy Corporation.
34 | AT M O S E N E R G Y 2 0 0 8 SUM M A RY A N N UA L R E P O RT
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0091_ARcvrR1:Layout 1 12/13/08 10:25 PM Page 4
A T M O S
E N E R G Y C O R P O R A T I O N
P . O . B O X 6 5 0 2 0 5
D A L L A S , T E X A S 7 5 2 6 5 - 0 2 0 5
A T M O S E N E R G Y . C O M