Atmos Energy Corporation 2010 Summary Annual Report
Our business
is all about safety.
To better serve our customers and to
ensure safe and reliable service, we designed
and built the most advanced technical
training facility in the natural gas industry.
It was just one of the many things we did to
keep natural gas America’s safest, most
reliable energy source.
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KEY HOLE TECHNOL OG Y: Atmos Energy technicians can
cut very small holes in the street to do repairs. Holes are resealed
using the pavement that was cut out, saving time and money.
KEEPING IT CL EAN: After cutting a hole, a VacTron truck
uses pressurized water to excavate around the pipes. It then
vacuums up the water and soil for a cleaner and better repair.
PREVENTING I GNITI ON: In the rare case of fire, all
Atmos Energy technicians are trained to respond appropriately
to minimize potential harm to people and property.
LAUNCHING PIGS: When pipelines are installed, cleaned or
inspected, electronic and mechanical “pigs” are sent through
them to detect anomalies or other conditions that need attention.
LEARNING IN TH E P ITS: Technicians use protective equipment
to repair leaks in a safe manner. Static kits prevent sparks and
allow technicians to squeeze off a leaking line to safely repair it.
SMALL SPACES: Using a special tripod and personal protective
equipment, Atmos Energy technicians are trained to perform
work in very tight, confined spaces.
REA L LIFE: A working natural gas system is the ideal place for
technicians to learn to serve customers in their home—to
find gas leaks, check appliances and detect carbon monoxide.
KEEPING TH E GA S ON: Our technicians learn to safely
bypass our gas meters to do regular and special maintenance
without shutting off the gas and inconveniencing the customer.
WELCOME HOME: We’re there when customers move in.
We visit to turn on the gas, light appliances and show customers
how to safely use their natural gas appliances.
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Gas City
is part of the company’s new Charles K. Vaughan Center in Plano, Texas.
The learning and service center is a tangible example of the company’s
commitment to pipeline safety, infrastructure modernization, technical standards
and employee development. Along with our own employees, emergency
responders, community officials and even school children come here to learn
about natural gas—America’s safest and most plentiful energy source.
Charles K. Vaughan, founding chairman and lead director (center),
Robert W. Best, executive chairman of the board (left), and Kim R.
Cocklin, president and chief executive officer (right), stand in front of
our Charles K. Vaughan Center in Plano, Texas. Completed in 2010,
the Vaughan Center is the premier technical training facility and
customer service center in the natural gas utility industry. It reflects
Atmos Energy’s commitment to ensuring safety and reliability through
superior employee development and service excellence.
2 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
To O ur
Sh arehol ders
Atmos Energy places a top priority on providing safe and reliable natural gas service
to its customers in the more than 1,600 communities we serve across 12 states.
No better evidence exists of our commitment to safety
and reliability than our new Charles K. Vaughan
Center, which opened in the fall of 2010. Honoring
our founding chairman and lead director, the Vaughan
Center is one of the natural gas distribution industry’s
finest facilities for training and development.
To enhance classroom instruction, the center includes
a gas flow-control laboratory and a simulated com-
munity, named Gas City, where our service technicians
apply their training to situations they can encounter
when responding to service and emergency calls.
More than $300 million of our annual capital
budget goes to protect our communities and to deliver
excellent service. We instill a “culture of safety” among
our employees through continual training and safety
awareness meetings. We constantly monitor our
operations and are highly vigilant about the integrity
of our 77,000-mile pipeline system. We offer around-
the-clock service from our U.S. call centers with our
technicians always on the job ready to respond to
customers’ needs. And, we promote awareness of gas
pipeline safety by communicating with our customers,
the public, residents living along our pipeline rights of
way, firefighters and other first-responders, excavators
and contractors, and state and local public officials.
Continual improvement, constant attention and
professional expertise make this nation’s natural gas
transmission and distribution infrastructure among the
world’s best. In this report, you will see activities that
we undertake because our business is all about safety.
2010 Results We are pleased to report that our
operational and financial performance in fiscal 2010
resulted in us achieving our stated goal of increasing
earnings per diluted share, on average, by 4 percent
to 6 percent for the 10th consecutive year.
Our reported earnings per diluted share increased
by 13 cents a share to $2.20. Net income in fiscal 2010
rose 8 percent over that of fiscal 2009 to $205.8 million.
Return on average shareholders’ equity was 9.1 percent.
Regulated operations, comprising our 12-state
natural gas utility distribution system and our Texas
intrastate gas transmission and storage division,
provided more than four out of every five dollars of
net income. Earnings from regulated operations
improved by 6 percent over comparable earnings in
fiscal 2009 to $167.4 million. Net income from non-
regulated operations increased by 16 percent year over
year to $38.4 million.
We paid cash dividends in fiscal 2010 of $1.34 per
share. In November 2010, the board of directors raised
the dividend for the 27th consecutive year, making
the current indicated annual rate $1.36 per share.
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 3
FISCAL 2010 NET INCOME BY SEGMENT
Contributions from Regulated and Nonregulated Operations
61% Natural Gas Distribution
20% Regulated Transmission and Storage
14% Natural Gas Marketing
5% Pipeline, Storage and Other
Operational Highlights Our collaborative approach
with regulators and customers provided settlements
with “win-win” outcomes and acceptable rate changes
in many jurisdictions. We received rate outcomes
that increased operating income by a net $56.8 million
in fiscal 2010.
Our Mid-Tex Division, which serves the Dallas-
Fort Worth Metroplex and more than 500 other Texas
municipalities, reached a settlement with two coalitions
of cities and the City of Dallas to recover our investment
for a two-year steel service line replacement program.
In this program, we are replacing aging steel service lines
with corrosion-resistant polyethylene pipe. The lines run
primarily from our mains to homes and businesses.
In addition, we reached agreement with the two
coalitions of cities to renew until 2012 an existing rate
review mechanism, or RRM, which was first negoti-
ated in 2008. The RRM provides a transparent process
for annually updating our rates by reviewing our costs
and investments in those communities, thereby
avoiding time-consuming and costly rate-case litiga-
tion that ultimately must be paid for by our customers.
Our rate strategy is to continue to improve rate
designs by eliminating regulatory lag in recovering
our costs, streamlining the rate-review process and
reducing volatility in our customers’ bills. An
important protection that we seek in our rate designs
is a weather normalization adjustment, or WNA.
WNA protects approximately 94 percent of our gross
4 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
margins from the vagaries of weather, helps stabilize our
earnings and reduces volatility in our customers’ bills.
Having WNA in rates saved approximately $52 million in
fiscal 2010 for our utility customers by lowering their
gas bills when colder-than-normal weather hit last winter.
Our average customer’s gas bills also remained
relatively unchanged from fiscal 2009 because of our
diligent management of natural gas supplies and taking
advantage of declining gas costs on behalf of our
customers. Our average cost of gas went down from
$6.95 per thousand cubic feet (Mcf) in fiscal 2009 to $5.77
per Mcf in fiscal 2010.
Consolidated natural gas distribution throughput rose
11 percent in fiscal 2010 to 454 billion cubic feet (Bcf)
mainly due to colder weather and higher consumption.
Although our customer growth remained flat because
of the sluggish economy, the appeal of natural gas
continued to grow because of stable prices and abundant
supplies. In some areas, we started to see signs of
economic improvement, such as proposals for large
commercial housing projects that will use natural gas.
In September 2010, our Atmos Pipeline–Texas Division
filed a rate request for a change in operating income of
$38.9 million. The division’s last increase in base rates took
effect in 2004. This case will be decided in fiscal 2011.
Our regulated transmission and storage transportation
volumes declined 19 percent from those in fiscal 2009
because of lower throughput for electricity generation
and reduced shipments of natural gas, especially from the
Barnett Shale production area.
Our nonregulated natural gas marketing business
benefited from unrealized margins that contributed to
the segment’s higher net income in fiscal 2010. However,
Atmos Energy Marketing’s delivered gas margins
declined from those in fiscal 2009. Lower per-unit
margins and a 5 percent decline in consolidated sales
volumes to 354 Bcf reflected the lower market demands
of industrial users and power plants. Despite bearish
conditions in gas markets, Atmos Energy Marketing
attracted new customers and retained nearly all of its
long-standing customers through its dedicated focus on
high-quality customer service.
Financial Condition and Outlook Entering fiscal 2011,
our balance sheet and financial position are in excellent
condition. Our available liquidity at the end of fiscal
2010 was approximately $1.2 billion. We have in place
credit facilities to meet our working capital needs as well
NET INCOME PER DILUTED SHARE
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$2.20
$1.65
$1.10
$0.55
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as plans for refinancings that should lower our cost of
debt in 2011.
During the past year, all three major credit-rating
agencies upgraded or reaffirmed the company’s debt
ratings. This will help us access capital markets for
future needs and obtain financing at reasonable costs.
Our capital expenditures in fiscal 2010 increased by
$33 million to $542.6 million. A portion of this spending
funded a new information technology data center, con-
struction of two service centers and work on the Mid-Tex
Division’s steel service line replacement program.
For fiscal 2011, we expect capital spending to range
from $580 million to $595 million. We will continue
making significant investments in upgrading mains
and service lines in all our utility operations, the
largest being for the Mid-Tex Division’s steel service
line replacement program.
We also will be investing in two long-term improve-
ments to our customer service: a new state-of-the-art
customer call center in Amarillo to be completed
in 2011 and a multi-year project to modernize our
customer-information software system for better
coordination of all aspects of our customer contacts,
service dispatching and customer billing.
We have forecast that our fiscal 2011 earnings per
diluted share will be between $2.25 and $2.35.
Board and Management Transitions In February
2010, two long-time members of the board of directors,
Travis W. Bain II and Thomas J. Garland, retired as
directors. Mr. Bain, whose distinguished career
included management consulting, leading retailing and
manufacturing companies and founding his own busi-
nesses, had served since 1988. Mr. Garland, a highly
respected banker, former Tennessee state senator,
state ethics-panel chairman and university educator,
had served since 1997. We thank these outstanding
directors for their years of dedicated service to Atmos
Energy’s shareholders, customers and employees.
Effective October 1, 2010, the board of directors named
Robert W. Best to the new position of executive chairman
of the board and promoted Kim R. Cocklin to be president
and chief executive officer. This succession in the corpora-
tion’s senior leadership had been planned for the past
four years with the guidance and approval of the board.
Having worked together and known each other for
nearly 30 years at Atmos Energy and at other companies,
we have developed virtually the same business philosophy
and have coordinated closely to make the ongoing
transition seamless. Some management matters may
change; however, Atmos Energy’s vision and strategy will
remain as they have since Charles K. Vaughan put
forth our guiding principles during his 14 years as the
company’s senior leader.
During the past 13 years as chief executive officer, Bob
Best refined these principles and adapted them to the
much-larger company that Atmos Energy has become.
In the future, we intend to continue the company’s track
record of creating shareholder value through
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4 percent to 6 percent a year
(cid:0) (cid:202) (cid:85) (cid:10)(cid:156)(cid:152)(cid:195)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105) (cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143) (cid:136)(cid:152)(cid:86)(cid:192)(cid:105)(cid:62)(cid:195)(cid:105)(cid:195) (cid:136)(cid:152) (cid:204)(cid:133)(cid:105) (cid:195)(cid:133)(cid:62)(cid:192)(cid:105)(cid:133)(cid:156)(cid:143)(cid:96)(cid:105)(cid:192)(cid:195)(cid:189)
(cid:202)
(cid:202) (cid:96)(cid:136)(cid:219)(cid:136)(cid:96)(cid:105)(cid:152)(cid:96)(cid:195)
(cid:0) (cid:202) (cid:85) (cid:45)(cid:204)(cid:192)(cid:62)(cid:204)(cid:105)(cid:125)(cid:222) (cid:118)(cid:156)(cid:86)(cid:213)(cid:195)(cid:105)(cid:96) (cid:156)(cid:152) (cid:204)(cid:133)(cid:105) (cid:86)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195) (cid:86)(cid:156)(cid:192)(cid:105) (cid:152)(cid:62)(cid:204)(cid:213)(cid:192)(cid:62)(cid:143)
gas business
(cid:0) (cid:202) (cid:85) (cid:45)(cid:204)(cid:192)(cid:156)(cid:152)(cid:125) (cid:76)(cid:62)(cid:143)(cid:62)(cid:152)(cid:86)(cid:105) (cid:195)(cid:133)(cid:105)(cid:105)(cid:204) (cid:62)(cid:152)(cid:96) (cid:62)(cid:147)(cid:171)(cid:143)(cid:105) (cid:143)(cid:136)(cid:181)(cid:213)(cid:136)(cid:96)(cid:136)(cid:204)(cid:222)
(cid:0) (cid:202) (cid:85) (cid:31)(cid:62)(cid:221)(cid:136)(cid:147)(cid:136)(cid:226)(cid:105)(cid:96) (cid:86)(cid:62)(cid:171)(cid:62)(cid:76)(cid:136)(cid:143)(cid:136)(cid:204)(cid:222) (cid:156)(cid:118) (cid:192)(cid:105)(cid:125)(cid:213)(cid:143)(cid:62)(cid:204)(cid:105)(cid:96) (cid:105)(cid:62)(cid:192)(cid:152)(cid:136)(cid:152)(cid:125)(cid:195)
(cid:0) (cid:202) (cid:85) (cid:45)(cid:105)(cid:143)(cid:105)(cid:86)(cid:204)(cid:105)(cid:96) (cid:152)(cid:156)(cid:152)(cid:192)(cid:105)(cid:125)(cid:213)(cid:143)(cid:62)(cid:204)(cid:105)(cid:96) (cid:156)(cid:171)(cid:105)(cid:192)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:195) (cid:204)(cid:156) (cid:86)(cid:156)(cid:147)(cid:171)(cid:143)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)
our regulated businesses
(cid:0) (cid:202) (cid:85) (cid:20)(cid:192)(cid:156)(cid:220)(cid:204)(cid:133) (cid:204)(cid:133)(cid:192)(cid:156)(cid:213)(cid:125)(cid:133) (cid:171)(cid:192)(cid:213)(cid:96)(cid:105)(cid:152)(cid:204) (cid:62)(cid:86)(cid:181)(cid:213)(cid:136)(cid:195)(cid:136)(cid:204)(cid:136)(cid:156)(cid:152)(cid:195)
Atmos Energy’s management, working closely with
the board of directors, will build on the past while
staying focused on the future. This strategy serves all our
stakeholders well. In essence, it reflects the same safety
and reliability that underlie all our activities.
Sincerely,
Robert W. Best
Executive Chairman of the Board
Kim R. Cocklin
President and Chief Executive Officer
November 30, 2010
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 5
6 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
1
Inves ti ng
in
Sa fe ty
Smart investments are safe investments. In our case,
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ture modern, our communities safe and our employees
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communities with the highest quality service lines. In
mature neighborhoods, we are continually replacing
legacy service lines with new, modern pipe. And, in
every community, we inspect and monitor our pipelines
and distribution lines to ensure a reliable system.
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1 Polyethylene pipe is being used in many areas to replace
our older steel service lines. In just the Mid-Tex Division
alone, Atmos Energy will replace 100,000 steel service lines
during the next two years.
2 To update older cast iron and steel mains, Atmos
Energy is installing new, high-pressure lines next to
existing lines, which can then be safely and efficiently
removed or abandoned.
3 In many neighborhoods, new flexible polyethylene
piping can be fitted through existing steel pipes to
modernize our natural gas delivery system. This approach
not only increases safety, but also allows us to efficiently
install new piping with minimal disruption.
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ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 7
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4 Atmos Energy technicians use the latest fusing technology to join sections
of polyethylene pipe to make strong and secure connections.
5 Natural gas in its raw state has no odor. To make it identifiable by the
public, we add an odorant to the gas in precise concentrations, using highly
accurate chemical instruments.
6 Atmos Energy chemists calibrate measuring equipment to continuously
monitor the chemical components and Btu value of our product, ensuring that
our natural gas meets the exact needs for home and industrial uses alike.
8 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
2000
1950
1900
1850
1800
PROGRESS IN PIPELINES
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Polyethylene – Late 1960s to present
Coated Steel – 1950s to present
Bare Steel – 1920s to early 1940s
Cast Iron – 1900s to 1920s
Wood – 1830s to 1910
Bamboo – First used by the Chinese
around 900 BC to transport natural gas
7 Wooden pipes were state-of-the-art pipelines in the early 19th century.
Later, they were replaced with more reliable cast iron, steel and coated
steel pipes. Today’s polyethylene pipe will stand the test of time for many
decades to come.
8 To keep our pipelines in top condition, electronic and mechanical
“pigs” are sent through our pipelines to inspect for anomalies, cracks or
scratches and to keep the lines clean.
9 We conduct periodic pipeline-integrity
inspections, using a variety of structural,
metallurgical and process tests, to prevent
problems and safeguard the public.
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Since 2004,
Atmos Energy
has spent more
than $1 billion
to modernize
its system.
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 9
2
The
Vaughan
Ce nte r
From its inception, the Vaughan Center was
designed as a place to teach, learn, innovate and
practice the highest standards of professionalism,
customer service and, most importantly, safety.
When we named it, there was no question.
Embedded in the heart and soul of our company
and in this facility are the visionary leadership
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CEO, Charles K. Vaughan.
1 The Flow Lab inside the Vaughan Center is a high-tech
teaching facility. Compressed air is used in the lab to simulate
the pressures and situations our technicians encounter in
the field. The lab allows us to set up multiple scenarios
with a variety of meters, regulators and other devices to
train and certify our service technicians and field operators.
2 Hands-on classroom training, guided by expert
instructors, teaches our technicians to keep flow-control
devices working accurately and
communicating with our SCADA
control system regarding gas
flow and system availability.
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3 The Vaughan Center also houses our new Plano, Texas,
service center, where technicians are dispatched to serve
customers in a number of North Texas communities.
10 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
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emergency responders, industry innovators and constituents who deal with natural
gas systems. Inside are state-of-the art classrooms and an advanced Flow Lab for
ensuring safety and reliability in the way our natural gas facilities are installed,
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and information transfer today as well as a resource for beta testing the latest
technologies and processes for the future.
4 Solar-paneled field devices allow monitoring natural gas flow in remote areas
of our system. Smart field devices, such as handheld digital assistants and laptop
computers, interface with our SCADA system, so that we constantly know the con-
dition and flow of our natural gas system.
5 As one of the country’s largest natural gas utilities, we work with manufacturers
to beta test their newest equipment, such as this highly complex natural gas meter
designed for energy-demanding industrial environments.
6 New technicians and veterans alike train at the Vaughan Center to be certified
and recertified on a regular basis. Virtually our entire technical workforce must
be recertified at least every four years to meet federal and state operator qualifica-
tion requirements.
5
12 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
DELIVERING YOUR NATURAL GAS
SCADA/Control Center
(cid:32)(cid:62)(cid:204)(cid:213)(cid:192)(cid:62)(cid:143)(cid:202)(cid:125)(cid:62)(cid:195)(cid:202)(cid:204)(cid:192)(cid:62)(cid:152)(cid:195)(cid:147)(cid:136)(cid:195)(cid:195)(cid:136)(cid:156)(cid:152)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:96)(cid:136)(cid:195)(cid:204)(cid:192)(cid:136)(cid:76)(cid:213)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:195)(cid:222)(cid:195)(cid:204)(cid:105)(cid:147)(cid:195)(cid:202)(cid:136)(cid:152)(cid:219)(cid:156)(cid:143)(cid:219)(cid:105)(cid:202)(cid:204)(cid:133)(cid:156)(cid:213)(cid:195)(cid:62)(cid:152)(cid:96)(cid:195)(cid:202)
of interconnected components to ensure safety and reliability. Our
(cid:105)(cid:181)(cid:213)(cid:136)(cid:171)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:118)(cid:62)(cid:86)(cid:136)(cid:143)(cid:136)(cid:204)(cid:136)(cid:105)(cid:195)(cid:93)(cid:202)(cid:192)(cid:62)(cid:152)(cid:125)(cid:136)(cid:152)(cid:125)(cid:202)(cid:118)(cid:192)(cid:156)(cid:147)(cid:202)(cid:125)(cid:62)(cid:195)(cid:202)(cid:147)(cid:105)(cid:204)(cid:105)(cid:192)(cid:195)(cid:202)(cid:204)(cid:156)(cid:202)(cid:125)(cid:136)(cid:62)(cid:152)(cid:204)(cid:202)
(cid:86)(cid:156)(cid:147)(cid:171)(cid:192)(cid:105)(cid:195)(cid:195)(cid:156)(cid:192)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:195)(cid:204)(cid:156)(cid:192)(cid:62)(cid:125)(cid:105)(cid:202)(cid:119)(cid:105)(cid:143)(cid:96)(cid:195)(cid:93)(cid:202)(cid:62)(cid:143)(cid:143)(cid:156)(cid:220)(cid:202)(cid:213)(cid:195)(cid:202)(cid:204)(cid:156)(cid:202)(cid:147)(cid:156)(cid:152)(cid:136)(cid:204)(cid:156)(cid:192)(cid:93)(cid:202)(cid:192)(cid:105)(cid:125)(cid:213)(cid:143)(cid:62)(cid:204)(cid:105)(cid:202)
(cid:62)(cid:152)(cid:96)(cid:202)(cid:147)(cid:105)(cid:204)(cid:105)(cid:192)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:121)(cid:156)(cid:220)(cid:202)(cid:156)(cid:118)(cid:202)(cid:125)(cid:62)(cid:195)(cid:202)(cid:204)(cid:156)(cid:202)(cid:86)(cid:213)(cid:195)(cid:204)(cid:156)(cid:147)(cid:105)(cid:192)(cid:195)(cid:176)
RTU Electronic Flow
Measurement
Meter
Chromatograph
Chromatograph
Gas from Wells,
Pipelines and Plants
Odorizer
Power Plant Customers
Control Valve
Positive Shutoff Valve
Construction,
Maintenance,
Leak Repair
Pig Launcher
Underground Storage
Relief Valves
Cathodic Protection
Liquified Natural
Gas Storage
Pressure Control
Compressor Station
Meter/Advanced
Metering Infrastructure
Monitor Regulators
Remote Terminal
Unit (RTU)
Low Point Controller
Residential/Commercial/
Industrial Customers
City Gate Meter
6
7 Most natural gas systems today rely on digital electronics for data
collection, flow control and continuous monitoring. The Vaughan Center
teaches our technicians how to install, calibrate, operate and maintain
our field data systems.
8 The entire Vaughan Center, including Gas City, the Flow Lab and the
Plano service center, is registered to be LEED certified. Standing for
Leadership in Energy and Environmental Design, this green-building
certification program encourages using sustainable building and
development practices and recognizes projects that are designed for
energy efficiency and environmental betterment.
7
8
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 13
1
14 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
Our
Cultur e
of Sa fe ty
(cid:77)(cid:97)(cid:94)(cid:114)(cid:3)(cid:112)(cid:90)(cid:101)(cid:100)(cid:3)(cid:90)(cid:102)(cid:104)(cid:103)(cid:96)(cid:3)(cid:110)(cid:108)(cid:51)(cid:3)(cid:97)(cid:94)(cid:107)(cid:104)(cid:94)(cid:108)(cid:3)(cid:112)(cid:97)(cid:104)(cid:3)(cid:110)(cid:103)(cid:90)(cid:108)(cid:108)(cid:110)(cid:102)(cid:98)(cid:103)(cid:96)(cid:101)(cid:114)(cid:3)(cid:93)(cid:104)(cid:3)(cid:90)(cid:3)(cid:96)(cid:104)(cid:104)(cid:93)(cid:3)(cid:99)(cid:104)(cid:91)(cid:3)(cid:94)(cid:111)(cid:94)(cid:107)(cid:114)(cid:3)(cid:93)(cid:90)(cid:114)(cid:39)(cid:3)(cid:76)(cid:104)(cid:102)(cid:94)(cid:37)(cid:3)
(cid:98)(cid:103)(cid:3)(cid:109)(cid:97)(cid:94)(cid:3)(cid:92)(cid:104)(cid:110)(cid:107)(cid:108)(cid:94)(cid:3)(cid:104)(cid:95)(cid:3)(cid:109)(cid:97)(cid:94)(cid:98)(cid:107)(cid:3)(cid:93)(cid:90)(cid:98)(cid:101)(cid:114)(cid:3)(cid:107)(cid:104)(cid:110)(cid:109)(cid:98)(cid:103)(cid:94)(cid:37)(cid:3)(cid:108)(cid:110)(cid:93)(cid:93)(cid:94)(cid:103)(cid:101)(cid:114)(cid:3)(cid:219)(cid:103)(cid:93)(cid:3)(cid:109)(cid:97)(cid:94)(cid:102)(cid:108)(cid:94)(cid:101)(cid:111)(cid:94)(cid:108)(cid:3)(cid:90)(cid:109)(cid:3)(cid:109)(cid:97)(cid:94)(cid:3)(cid:92)(cid:94)(cid:103)(cid:109)(cid:94)(cid:107)(cid:3)(cid:104)(cid:95)(cid:3)
(cid:94)(cid:113)(cid:109)(cid:107)(cid:90)(cid:104)(cid:107)(cid:93)(cid:98)(cid:103)(cid:90)(cid:107)(cid:114)(cid:3)(cid:94)(cid:111)(cid:94)(cid:103)(cid:109)(cid:108)(cid:3)(cid:98)(cid:103)(cid:3)(cid:112)(cid:97)(cid:98)(cid:92)(cid:97)(cid:3)(cid:109)(cid:97)(cid:94)(cid:114)(cid:3)(cid:97)(cid:110)(cid:102)(cid:91)(cid:101)(cid:114)(cid:3)(cid:93)(cid:94)(cid:102)(cid:104)(cid:103)(cid:108)(cid:109)(cid:107)(cid:90)(cid:109)(cid:94)(cid:3)(cid:109)(cid:97)(cid:94)(cid:98)(cid:107)(cid:3)(cid:108)(cid:105)(cid:98)(cid:107)(cid:98)(cid:109)(cid:3)(cid:90)(cid:103)(cid:93)(cid:3)(cid:92)(cid:104)(cid:110)(cid:107)(cid:90)(cid:96)(cid:94)(cid:3)
to safeguard others.
2
3
1 Best friends Michael Rangel and Tucker Redden, both 6 years old, were
doing what boys do—playing on Michael’s backyard swing set. Across the
fence, Richard Herrera was doing what Atmos Energy technicians do—
advising Michael’s dad, Mike, about an issue with his water heater. Suddenly,
Tucker came racing from the backyard in a panic with blood on his hands.
Little Michael was caught in a tube slide with a cord tightening around his
neck. Bleeding from his mouth and unconscious, Michael’s situation was
dire. Quickly, Mike and Richard went into action. As Mike pushed his son
up from the bottom of the slide, Richard pulled him out from the top.
Richard cut the rope around Michael’s neck and administered CPR until
paramedics came. Today Michael is fine. He and Tucker are buddies for life,
and in their eyes, Richard Herrera is an Atmos Energy superhero.
2 Partners in safety, Brian Martens, a former fire chief and now Atmos
Energy’s manager of public affairs in Colorado, and Chief Mark Quick of the
Durango Fire & Rescue Authority share the same number-one priority of
keeping the community safe. Atmos Energy maintains close relationships with
first-responders in our communities to keep them informed about our
natural gas system and to coordinate response plans if an emergency arises.
3 Dressed for success and personal safety, Atmos Energy technicians are ready for any situation. Whether
it’s working in closed, confined, underground spaces or dealing with heavy equipment and busy thoroughfares,
our service technicians can suit up and create a safe environment for themselves, their fellow employees and
everyone around them.
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 15
A
Saf e
Jo ur ney
(cid:70)(cid:104)(cid:108)(cid:109)(cid:3)(cid:92)(cid:104)(cid:103)(cid:108)(cid:110)(cid:102)(cid:94)(cid:107)(cid:108)(cid:3)(cid:109)(cid:90)(cid:100)(cid:94)(cid:3)(cid:95)(cid:104)(cid:107)(cid:3)(cid:96)(cid:107)(cid:90)(cid:103)(cid:109)(cid:94)(cid:93)(cid:3)(cid:109)(cid:97)(cid:90)(cid:109)(cid:3)(cid:109)(cid:97)(cid:94)(cid:98)(cid:107)(cid:3)(cid:103)(cid:90)(cid:109)(cid:110)(cid:107)(cid:90)(cid:101)(cid:3)(cid:96)(cid:90)(cid:108)(cid:3)(cid:98)(cid:108)(cid:3)(cid:90)(cid:101)(cid:112)(cid:90)(cid:114)(cid:108)(cid:3)(cid:109)(cid:97)(cid:94)(cid:107)(cid:94)(cid:37)(cid:3)(cid:107)(cid:94)(cid:90)(cid:93)(cid:114)(cid:3)(cid:109)(cid:104)(cid:3)(cid:110)(cid:108)(cid:94)(cid:39)(cid:3)(cid:59)(cid:110)(cid:109)(cid:37)(cid:3)
(cid:109)(cid:97)(cid:94)(cid:107)(cid:94)(cid:8)(cid:108)(cid:3)(cid:102)(cid:104)(cid:107)(cid:94)(cid:3)(cid:109)(cid:104)(cid:3)(cid:93)(cid:94)(cid:101)(cid:98)(cid:111)(cid:94)(cid:107)(cid:98)(cid:103)(cid:96)(cid:3)(cid:103)(cid:90)(cid:109)(cid:110)(cid:107)(cid:90)(cid:101)(cid:3)(cid:96)(cid:90)(cid:108)(cid:3)(cid:109)(cid:97)(cid:90)(cid:103)(cid:3)(cid:102)(cid:94)(cid:94)(cid:109)(cid:108)(cid:3)(cid:109)(cid:97)(cid:94)(cid:3)(cid:94)(cid:114)(cid:94)(cid:39)(cid:3)(cid:63)(cid:107)(cid:104)(cid:102)(cid:3)(cid:102)(cid:90)(cid:103)(cid:90)(cid:96)(cid:98)(cid:103)(cid:96)(cid:3)(cid:97)(cid:110)(cid:103)(cid:93)(cid:107)(cid:94)(cid:93)(cid:108)(cid:3)(cid:104)(cid:95)(cid:3)
billions of cubic feet of gas supplies annually, to monitoring pipelines and inspecting our
(cid:105)(cid:97)(cid:114)(cid:108)(cid:98)(cid:92)(cid:90)(cid:101)(cid:3)(cid:98)(cid:103)(cid:95)(cid:107)(cid:90)(cid:108)(cid:109)(cid:107)(cid:110)(cid:92)(cid:109)(cid:110)(cid:107)(cid:94)(cid:37)(cid:3)(cid:109)(cid:104)(cid:3)(cid:90)(cid:101)(cid:112)(cid:90)(cid:114)(cid:108)(cid:3)(cid:91)(cid:94)(cid:98)(cid:103)(cid:96)(cid:3)(cid:90)(cid:111)(cid:90)(cid:98)(cid:101)(cid:90)(cid:91)(cid:101)(cid:94)(cid:3)(cid:109)(cid:104)(cid:3)(cid:107)(cid:94)(cid:108)(cid:105)(cid:104)(cid:103)(cid:93)(cid:3)(cid:109)(cid:104)(cid:3)(cid:104)(cid:110)(cid:107)(cid:3)(cid:92)(cid:110)(cid:108)(cid:109)(cid:104)(cid:102)(cid:94)(cid:107)(cid:108)(cid:8)(cid:3)(cid:103)(cid:94)(cid:94)(cid:93)(cid:108)(cid:37)(cid:3)(cid:112)(cid:94)(cid:3)
(cid:109)(cid:90)(cid:100)(cid:94)(cid:3)(cid:94)(cid:111)(cid:94)(cid:107)(cid:114)(cid:3)(cid:102)(cid:94)(cid:90)(cid:108)(cid:110)(cid:107)(cid:94)(cid:3)(cid:109)(cid:104)(cid:3)(cid:94)(cid:103)(cid:108)(cid:110)(cid:107)(cid:94)(cid:3)(cid:103)(cid:90)(cid:109)(cid:110)(cid:107)(cid:90)(cid:101)(cid:3)(cid:96)(cid:90)(cid:108)(cid:3)(cid:220)(cid:104)(cid:112)(cid:108)(cid:3)(cid:109)(cid:104)(cid:3)(cid:104)(cid:110)(cid:107)(cid:3)(cid:92)(cid:110)(cid:108)(cid:109)(cid:104)(cid:102)(cid:94)(cid:107)(cid:108)(cid:3)(cid:108)(cid:90)(cid:95)(cid:94)(cid:101)(cid:114)(cid:3)(cid:90)(cid:103)(cid:93)(cid:3)(cid:107)(cid:94)(cid:101)(cid:98)(cid:90)(cid:91)(cid:101)(cid:114)(cid:39)
1 If you smell gas, whether it’s day or night, immediately
leave the area and from a safe distance call Atmos Energy.
Our service technicians will respond promptly and will use
sensitive devices for detecting a leak inside or outside.
2 We regularly inspect our natural gas distribution and
pipeline system with state-of-the art equipment. This service
technician uses a remote methane leak detector that can
sense minute gas particles of methane.
3 Atmos Energy’s “sniffer” trucks patrol streets in cities and
towns and along rights of way. These vehicles have highly
sensitive detection devices to find natural gas seepages from
underground distribution lines or pipelines.
3
2
Our call centers are
available at all hours,
every day, to dispatch
technicians to resolve
natural gas issues at
homes and businesses.
16 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
1
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 17
4
4 SCADA, or supervisory control and data
acquisition, equipment remotely monitors
pipelines, compressor stations, city gates
and other major facilities for operational
integrity and community safety.
5 To patrol our pipelines buried under-
ground, airplanes fly our rights of way
using infrared technologies that can detect
leaks from in the air.
5
18 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
8
6
7
6 “Walk the Safety Circle” is our safety mantra every time
an employee approaches a company vehicle. All drivers
are required to walk a complete 360° circle, making sure that
no children, pets, toys, tools, other vehicles or nearby
objects might pose a hazard.
7 Whether to initiate service, answer a billing question
or respond to an emergency, staff members at our call centers
are always available to care for our customers.
8 In Houston, Atmos Energy Marketing’s trading floor
purchases large volumes of natural gas daily to ensure
reliable supplies and economical prices for its many indus-
trial, municipal and power-generation customers.
9 Keeping our customers warm and safe in the winter
means keeping natural gas meters clear of snow and debris
and the rest of our system in excellent repair to endure
frigid temperatures.
9
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 19
1
20 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
Su ppo rting
S afe, Strong
Commu nities
(cid:58)(cid:109)(cid:102)(cid:104)(cid:108)(cid:3)(cid:62)(cid:103)(cid:94)(cid:107)(cid:96)(cid:114)(cid:3)(cid:98)(cid:108)(cid:3)(cid:105)(cid:90)(cid:107)(cid:109)(cid:3)(cid:104)(cid:95)(cid:3)(cid:109)(cid:97)(cid:94)(cid:3)(cid:92)(cid:104)(cid:102)(cid:102)(cid:110)(cid:103)(cid:98)(cid:109)(cid:114)(cid:39)(cid:3)(cid:59)(cid:114)(cid:3)(cid:109)(cid:97)(cid:94)(cid:3)(cid:103)(cid:90)(cid:109)(cid:110)(cid:107)(cid:94)(cid:3)(cid:104)(cid:95)(cid:3)(cid:104)(cid:110)(cid:107)(cid:3)(cid:104)(cid:105)(cid:94)(cid:107)(cid:90)(cid:109)(cid:98)(cid:104)(cid:103)(cid:108)(cid:37)(cid:3)(cid:104)(cid:110)(cid:107)(cid:3)(cid:108)(cid:94)(cid:107)(cid:111)(cid:98)(cid:92)(cid:94)(cid:3)
(cid:109)(cid:94)(cid:92)(cid:97)(cid:103)(cid:98)(cid:92)(cid:98)(cid:90)(cid:103)(cid:108)(cid:3)(cid:90)(cid:107)(cid:94)(cid:3)(cid:98)(cid:103)(cid:111)(cid:98)(cid:109)(cid:94)(cid:93)(cid:3)(cid:98)(cid:103)(cid:109)(cid:104)(cid:3)(cid:97)(cid:104)(cid:102)(cid:94)(cid:108)(cid:3)(cid:90)(cid:103)(cid:93)(cid:3)(cid:91)(cid:110)(cid:108)(cid:98)(cid:103)(cid:94)(cid:108)(cid:108)(cid:94)(cid:108)(cid:3)(cid:109)(cid:104)(cid:3)(cid:92)(cid:97)(cid:94)(cid:92)(cid:100)(cid:3)(cid:103)(cid:90)(cid:109)(cid:110)(cid:107)(cid:90)(cid:101)(cid:3)(cid:96)(cid:90)(cid:108)(cid:3)(cid:90)(cid:105)(cid:105)(cid:101)(cid:98)(cid:90)(cid:103)(cid:92)(cid:94)(cid:108)(cid:3)
and our infrastructure. In turn, we encourage natural gas safety through school
programs, public meetings and community celebrations. We believe that supporting
gas safety awareness helps build stronger communities and provides our customers
with the safest and most reliable energy available.
1 Jim Bartling, left, Atmos Energy’s manager of public affairs in Kansas,
enjoys the fun at the annual open house of the City of Olathe Fire
Department. The company has supported this family event for years to
help firefighters teach safety awareness especially among children.
2 Atmos Energy’s employees say “thanks” to their neighbors in com-
munities across the country by grilling thousands of hot dogs and
hamburgers every year at civic get-togethers, local fairs and charity events.
3 Call before you dig! We constantly remind the public to ALWAYS
call 811 to have utility lines marked before beginning any digging.
By calling 811 just once, all underground utility lines will be marked
by Atmos Energy, the electric utility, the telephone company and
the water department
to protect both the caller
and the community.
3
2
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 21
4
4 Our company runs on natural gas…literally. New
natural gas vehicles in Atmos Energy’s fleet demon-
strate the clean-burning benefits of natural gas as well
as its reliability as an all-American fuel.
5 Bill stuffers in English and Spanish give our
customers safety information on natural gas topics
and encourage them to watch out for household
hazards.
6 Mayor John Shaddinger Jr. of Westwego,
Louisiana, discusses safety needs in his community
with Atmos Energy employees as part of our
ongoing program to communicate with public
officials about pipeline safety awareness.
22 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
5
6
8
9
7
10
7 Atmos Energy works with schools and community groups to teach children and their parents to
“smell, listen, look and leave” if they suspect a natural gas leak in their homes or yards.
8 Ray Granado, a manager of public affairs in the Dallas-Fort Worth area, is a big hit in the classroom
when he brings our “scratch and sniff” cards so that kids learn what natural gas odorant smells like.
9 Atmos Energy displays the nationwide Call 811 logo on all its service vehicles, customers’ bills
and printed materials as a reminder to always call before digging.
10 Brightly colored yellow markers along natural gas pipeline rights of way warn the public to call before
digging and not to build structures or pile debris on the ground above a pipeline.
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 23
Fina ncia l Hi ghlight s
Year E nded Se pt ember 30
Dollars in t housands, except per share data
2010
2009
Ch an ge
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
$
$
$
$
$
$
$
$
$
4,789,690
1,364,941
125,949
41,486
27,729
10,675
205,839
6,763,791
3,987,899
2.20
1.34
24.16
$
$
$
$
$
$
$
$
$
4,969,080
1,346,702
116,807
41,056
20,194
12,921
190,978
6,367,083
4,346,161
2.07
1.32
23.52
(3.6)%
1.4%
7.8%
1.0%
37.3%
(17.4)%
7.8%
6.2%
(8.2)%
6.3%
1.5%
2.7%
408,885
528,689
370,569
2,713
11.1%
(18.9)%
(4.5)%
2.5%
100% 2.0%
0.2%
2.2%
8.9%
3,178,844
49.3%
20,790
91,620
(1.2)%
(5.1)%
0.9%
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
(including short-term debt) at end of year
Shareholders of record
Weighted average shares outstanding — diluted (000s)
454,175
428,599
353,853
2,780
102%
3,186,040
9.1%
48.7%
19,738
92,422
* Total capitalization represents the sum of shareholders’ equity and long-term debt, excluding current maturities.
† Heating degree days are adjusted for service areas with weather-normalized operations.
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 financial 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 Exchange
Commission. Investors may request, without charge, our Annual Report on Form
10-K for the fiscal year ended September 30, 2010, 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 website at www.atmosenergy.com.
Additional investor information is presented on pages 35 and 36 of this report.
In the Flow Lab of the Charles K. Vaughan Center, Atmos Energy
technicians work with some of the most advanced natural gas
metering technology available in the industry today.
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 25
At mos Energy a t a Gla nc e
Year En ded Septembe r 30
(cid:31)(cid:105)(cid:204)(cid:105)(cid:192)(cid:195)(cid:202)(cid:136)(cid:152)(cid:202)(cid:195)(cid:105)(cid:192)(cid:219)(cid:136)(cid:86)(cid:105)
Residential
Commercial
Industrial
Public authority and other
Total meters
Heating degree days*
Actual (weighted average)
Percent of normal
(cid:32)(cid:62)(cid:204)(cid:213)(cid:192)(cid:62)(cid:143)(cid:202)(cid:125)(cid:62)(cid:195)(cid:202)(cid:96)(cid:136)(cid:195)(cid:204)(cid:192)(cid:136)(cid:76)(cid:213)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:195)(cid:62)(cid:143)(cid:105)(cid:195)(cid:202)(cid:219)(cid:156)(cid:143)(cid:213)(cid:147)(cid:105)(cid:195)(cid:202)(cid:173)(cid:31)(cid:31)(cid:86)(cid:118)(cid:174)
Residential
Commercial
Industrial
Public authority and other
Total
(cid:32)(cid:62)(cid:204)(cid:213)(cid:192)(cid:62)(cid:143)(cid:202)(cid:125)(cid:62)(cid:195)(cid:202)(cid:96)(cid:136)(cid:195)(cid:204)(cid:192)(cid:136)(cid:76)(cid:213)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:204)(cid:192)(cid:62)(cid:152)(cid:195)(cid:171)(cid:156)(cid:192)(cid:204)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:219)(cid:156)(cid:143)(cid:213)(cid:147)(cid:105)(cid:195)(cid:202)(cid:173)(cid:31)(cid:31)(cid:86)(cid:118)(cid:174)(cid:202)
(cid:47)(cid:156)(cid:204)(cid:62)(cid:143)(cid:202)(cid:152)(cid:62)(cid:204)(cid:213)(cid:192)(cid:62)(cid:143)(cid:202)(cid:125)(cid:62)(cid:195)(cid:202)(cid:96)(cid:136)(cid:195)(cid:204)(cid:192)(cid:136)(cid:76)(cid:213)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:204)(cid:133)(cid:192)(cid:156)(cid:213)(cid:125)(cid:133)(cid:171)(cid:213)(cid:204)(cid:202)(cid:173)(cid:31)(cid:31)(cid:86)(cid:118)(cid:174)
(cid:22)(cid:152)(cid:204)(cid:105)(cid:192)(cid:195)(cid:105)(cid:125)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202)(cid:62)(cid:86)(cid:204)(cid:136)(cid:219)(cid:136)(cid:204)(cid:222)(cid:202)(cid:173)(cid:31)(cid:31)(cid:86)(cid:118)(cid:174)(cid:202)
(cid:10)(cid:156)(cid:152)(cid:195)(cid:156)(cid:143)(cid:136)(cid:96)(cid:62)(cid:204)(cid:105)(cid:96)(cid:202)(cid:152)(cid:62)(cid:204)(cid:213)(cid:192)(cid:62)(cid:143)(cid:202)(cid:125)(cid:62)(cid:195)(cid:202)(cid:96)(cid:136)(cid:195)(cid:204)(cid:192)(cid:136)(cid:76)(cid:213)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:204)(cid:133)(cid:192)(cid:156)(cid:213)(cid:125)(cid:133)(cid:171)(cid:213)(cid:204)(cid:202)(cid:173)(cid:31)(cid:31)(cid:86)(cid:118)(cid:174)
(cid:10)(cid:156)(cid:152)(cid:195)(cid:156)(cid:143)(cid:136)(cid:96)(cid:62)(cid:204)(cid:105)(cid:96)(cid:202)(cid:192)(cid:105)(cid:125)(cid:213)(cid:143)(cid:62)(cid:204)(cid:105)(cid:96)(cid:202)(cid:204)(cid:192)(cid:62)(cid:152)(cid:195)(cid:147)(cid:136)(cid:195)(cid:195)(cid:136)(cid:156)(cid:152)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:195)(cid:204)(cid:156)(cid:192)(cid:62)(cid:125)(cid:105)(cid:202)(cid:204)(cid:192)(cid:62)(cid:152)(cid:195)(cid:171)(cid:156)(cid:192)(cid:204)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:219)(cid:156)(cid:143)(cid:213)(cid:147)(cid:105)(cid:195)(cid:202)(cid:173)MM(cid:86)(cid:118)(cid:174)(cid:202)
(cid:10)(cid:156)(cid:152)(cid:195)(cid:156)(cid:143)(cid:136)(cid:96)(cid:62)(cid:204)(cid:105)(cid:96)(cid:202)(cid:152)(cid:62)(cid:204)(cid:213)(cid:192)(cid:62)(cid:143)(cid:202)(cid:125)(cid:62)(cid:195)(cid:202)(cid:147)(cid:62)(cid:192)(cid:142)(cid:105)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:204)(cid:133)(cid:192)(cid:156)(cid:213)(cid:125)(cid:133)(cid:171)(cid:213)(cid:204)(cid:202)(cid:173)MM(cid:86)(cid:118)(cid:174)
(cid:34)(cid:171)(cid:105)(cid:192)(cid:62)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:192)(cid:105)(cid:219)(cid:105)(cid:152)(cid:213)(cid:105)(cid:195)(cid:202)(cid:173)(cid:228)(cid:228)(cid:228)(cid:195)(cid:174)
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
(cid:47)(cid:156)(cid:204)(cid:62)(cid:143)(cid:202)(cid:156)(cid:171)(cid:105)(cid:192)(cid:62)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:192)(cid:105)(cid:219)(cid:105)(cid:152)(cid:213)(cid:105)(cid:195)(cid:202)(cid:173)(cid:228)(cid:228)(cid:228)(cid:195)(cid:174)(cid:202)
Other statistics
Gross plant (000s)
Net plant (000s)
Miles of pipe
Employees
* Heating degree days are adjusted for service areas with weather-normalized operations.
26 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
2010
2009
2,910,672
262,778
2,090
10,500
3,186,040
2,901,577
265,843
2,193
9,231
3,178,844
2,780
102%
2,713
100%
190,424
103,028
19,047
10,129
322,628
135,865
458,493
(4,318)
454,175
428,599
353,853
159,762
91,379
18,563
12,413
282,117
130,691
412,808
(3,923)
408,885
528,689
370,569
$
$
$
$
1,826,752
808,981
112,366
70,580
2,818,679
61,384
31,560
2,911,623
97,023
1,754,523
26,521
4,789,690
6,542,318
4,793,075
77,157
4,913
$
$
$
$
1,830,140
838,184
135,633
89,183
2,893,140
59,115
31,711
2,983,966
119,427
1,832,912
32,775
4,969,080
6,086,618
4,439,103
76,942
4,891
Condense d Consoli da te d Ba lanc e S hee t s
Year E nded Se pt ember 30
Dollars in t housands, except sh are data
2010
2009
Assets
(cid:42)(cid:192)(cid:156)(cid:171)(cid:105)(cid:192)(cid:204)(cid:222)(cid:93)(cid:202)(cid:171)(cid:143)(cid:62)(cid:152)(cid:204)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:105)(cid:181)(cid:213)(cid:136)(cid:171)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202)
Construction in progress
(cid:29)(cid:105)(cid:195)(cid:195)(cid:202)(cid:62)(cid:86)(cid:86)(cid:213)(cid:147)(cid:213)(cid:143)(cid:62)(cid:204)(cid:105)(cid:96)(cid:202)(cid:96)(cid:105)(cid:171)(cid:192)(cid:105)(cid:86)(cid:136)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:62)(cid:147)(cid:156)(cid:192)(cid:204)(cid:136)(cid:226)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)
Net property, plant and equipment
Current assets
Cash and cash equivalents
Accounts receivable, less allowance for doubtful accounts of
$12,701 in 2010 and $11,478 in 2009
Gas stored underground
Other current assets
Total current assets
(cid:20)(cid:156)(cid:156)(cid:96)(cid:220)(cid:136)(cid:143)(cid:143)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:136)(cid:152)(cid:204)(cid:62)(cid:152)(cid:125)(cid:136)(cid:76)(cid:143)(cid:105)(cid:202)(cid:62)(cid:195)(cid:195)(cid:105)(cid:204)(cid:195)(cid:202)
Deferred charges and other assets
(cid:10)(cid:62)(cid:171)(cid:136)(cid:204)(cid:62)(cid:143)(cid:136)(cid:226)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:29)(cid:136)(cid:62)(cid:76)(cid:136)(cid:143)(cid:136)(cid:204)(cid:136)(cid:105)(cid:195)
(cid:45)(cid:133)(cid:62)(cid:192)(cid:105)(cid:133)(cid:156)(cid:143)(cid:96)(cid:105)(cid:192)(cid:195)(cid:189)(cid:202)(cid:105)(cid:181)(cid:213)(cid:136)(cid:204)(cid:222)
Common stock, no par value (stated at $.005 per share);
200,000,000 shares authorized; issued and outstanding:
2010 – 90,164,103 shares, 2009 – 92,551,709 shares
Additional paid-in capital
Accumulated other comprehensive loss
Retained earnings
Shareholders’ equity
(cid:29)(cid:156)(cid:152)(cid:125)(cid:135)(cid:204)(cid:105)(cid:192)(cid:147)(cid:202)(cid:96)(cid:105)(cid:76)(cid:204)(cid:202)
Total capitalization
Current liabilities
Accounts payable and accrued liabilities
Other current liabilities
Short-term debt
Current maturities of long-term debt
Total current liabilities
(cid:12)(cid:105)(cid:118)(cid:105)(cid:192)(cid:192)(cid:105)(cid:96)(cid:202)(cid:136)(cid:152)(cid:86)(cid:156)(cid:147)(cid:105)(cid:202)(cid:204)(cid:62)(cid:221)(cid:105)(cid:195)
(cid:44)(cid:105)(cid:125)(cid:213)(cid:143)(cid:62)(cid:204)(cid:156)(cid:192)(cid:222)(cid:202)(cid:86)(cid:156)(cid:195)(cid:204)(cid:202)(cid:156)(cid:118)(cid:202)(cid:192)(cid:105)(cid:147)(cid:156)(cid:219)(cid:62)(cid:143)(cid:202)(cid:156)(cid:76)(cid:143)(cid:136)(cid:125)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)
Deferred credits and other liabilities
$
$
$
$
6,384,396
157,922
6,542,318
1,749,243
4,793,075
$
5,981,420
105,198
6,086,618
1,647,515
4,439,103
131,952
111,203
273,207
319,038
150,995
875,192
740,148
355,376
6,763,791
451
1,714,364
(23,372)
486,905
2,178,348
1,809,551
3,987,899
266,208
413,640
126,100
360,131
1,166,079
829,128
350,521
430,164
6,763,791
232,806
352,728
132,203
828,940
740,064
358,976
6,367,083
463
1,791,129
(20,184)
405,353
2,176,761
2,169,400
4,346,161
207,421
457,319
72,550
131
737,421
570,940
344,403
368,158
6,367,083
$
$
$
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 27
Condens ed Cons olid at ed St at eme nts of Inco me
Year En ded Septembe r 30
Do llar s in th ousands , except per sha re data
2010
2009
2 0 08
$
2,912,493
203,013
2,151,264
35,318
(512,398)
4,789,690
$
2,984,765
209,658
2,336,847
41,924
(604,114)
4,969,080
$
3,655,130
195,917
4,287,862
31,709
(949,313)
7,221,305
1,863,046
—
2,065,313
7,178
(510,788)
3,424,749
1,364,941
468,038
216,960
190,507
—
875,505
489,436
(339)
154,471
334,626
128,787
205,839
2.22
2.20
91,852
92,422
$
$
$
1,960,137
—
2,252,235
12,428
(602,422)
3,622,378
1,346,702
494,010
217,208
182,700
5,382
899,300
447,402
(3,303)
152,830
291,269
100,291
190,978
2.08
2.07
91,117
91,620
$
$
$
2,649,064
—
4,194,841
3,396
(947,322)
5,899,979
1,321,326
500,234
200,442
192,755
—
893,431
427,895
2,731
137,922
292,704
112,373
180,331
2.00
1.99
89,385
89,941
$
$
$
(cid:34)(cid:171)(cid:105)(cid:192)(cid:62)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:192)(cid:105)(cid:219)(cid:105)(cid:152)(cid:213)(cid:105)(cid:195)
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
(cid:34)(cid:171)(cid:105)(cid:192)(cid:62)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:105)(cid:221)(cid:171)(cid:105)(cid:152)(cid:195)(cid:105)(cid:195)
Operation and maintenance
Depreciation and amortization
Taxes, other than income
Asset impairments
Total operating expenses
Operating income
(cid:31)(cid:136)(cid:195)(cid:86)(cid:105)(cid:143)(cid:143)(cid:62)(cid:152)(cid:105)(cid:156)(cid:213)(cid:195)(cid:202)(cid:136)(cid:152)(cid:86)(cid:156)(cid:147)(cid:105)(cid:202)(cid:173)(cid:105)(cid:221)(cid:171)(cid:105)(cid:152)(cid:195)(cid:105)(cid:174)(cid:93)(cid:202)(cid:152)(cid:105)(cid:204)
Interest charges
Income before income taxes
(cid:22)(cid:152)(cid:86)(cid:156)(cid:147)(cid:105)(cid:202)(cid:204)(cid:62)(cid:221)(cid:202)(cid:105)(cid:221)(cid:171)(cid:105)(cid:152)(cid:195)(cid:105)(cid:202)
Net income
Per share data
Basic net income per share
Diluted net income per share
(cid:55)(cid:105)(cid:136)(cid:125)(cid:133)(cid:204)(cid:105)(cid:96)(cid:202)(cid:62)(cid:219)(cid:105)(cid:192)(cid:62)(cid:125)(cid:105)(cid:202)(cid:195)(cid:133)(cid:62)(cid:192)(cid:105)(cid:195)(cid:202)(cid:156)(cid:213)(cid:204)(cid:195)(cid:204)(cid:62)(cid:152)(cid:96)(cid:136)(cid:152)(cid:125)(cid:92)
Basic
Diluted
28 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
Condens ed C ons olid at ed St at eme nts of Ca s h Fl ow s
Year E nded Se pt ember 30
Dollars in t housands
2010
2009
2 0 0 8
(cid:10)(cid:62)(cid:195)(cid:133)(cid:202)(cid:19)(cid:143)(cid:156)(cid:220)(cid:195)(cid:202)(cid:118)(cid:192)(cid:156)(cid:147)(cid:202)(cid:34)(cid:171)(cid:105)(cid:192)(cid:62)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:1)(cid:86)(cid:204)(cid:136)(cid:219)(cid:136)(cid:204)(cid:136)(cid:105)(cid:195)
Net income
Adjustments to reconcile net income to net cash
(cid:171)(cid:192)(cid:156)(cid:219)(cid:136)(cid:96)(cid:105)(cid:96)(cid:202)(cid:76)(cid:222)(cid:202)(cid:156)(cid:171)(cid:105)(cid:192)(cid:62)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:86)(cid:204)(cid:136)(cid:219)(cid:136)(cid:204)(cid:136)(cid:105)(cid:195)(cid:92)
Asset impairments
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
(cid:10)(cid:62)(cid:195)(cid:133)(cid:202)(cid:19)(cid:143)(cid:156)(cid:220)(cid:195)(cid:202)(cid:49)(cid:195)(cid:105)(cid:96)(cid:202)(cid:136)(cid:152)(cid:202)(cid:22)(cid:152)(cid:219)(cid:105)(cid:195)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:1)(cid:86)(cid:204)(cid:136)(cid:219)(cid:136)(cid:204)(cid:136)(cid:105)(cid:195)
Capital expenditures
Other, net
Net cash used in investing activities
(cid:10)(cid:62)(cid:195)(cid:133)(cid:202)(cid:19)(cid:143)(cid:156)(cid:220)(cid:195)(cid:202)(cid:118)(cid:192)(cid:156)(cid:147)(cid:202)(cid:19)(cid:136)(cid:152)(cid:62)(cid:152)(cid:86)(cid:136)(cid:152)(cid:125)(cid:202)(cid:1)(cid:86)(cid:204)(cid:136)(cid:219)(cid:136)(cid:204)(cid:136)(cid:105)(cid:195)
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
Repurchase of common stock
Repurchase of equity rewards
Issuance of common stock
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
(cid:10)(cid:62)(cid:195)(cid:133)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:202)(cid:105)(cid:181)(cid:213)(cid:136)(cid:219)(cid:62)(cid:143)(cid:105)(cid:152)(cid:204)(cid:195)(cid:202)(cid:62)(cid:204)(cid:202)(cid:76)(cid:105)(cid:125)(cid:136)(cid:152)(cid:152)(cid:136)(cid:152)(cid:125)(cid:202)(cid:156)(cid:118)(cid:202)(cid:222)(cid:105)(cid:62)(cid:192)(cid:202)
(cid:10)(cid:62)(cid:195)(cid:133)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:202)(cid:105)(cid:181)(cid:213)(cid:136)(cid:219)(cid:62)(cid:143)(cid:105)(cid:152)(cid:204)(cid:195)(cid:202)(cid:62)(cid:204)(cid:202)(cid:105)(cid:152)(cid:96)(cid:202)(cid:156)(cid:118)(cid:202)(cid:222)(cid:105)(cid:62)(cid:192)(cid:202)
$
205,839
$
190,978
$
180,331
—
5,382
—
216,960
173
196,731
12,655
11,908
(1,245)
83,455
726,476
(542,636)
(66)
(542,702)
54,268
—
—
(131)
(124,287)
(100,450)
(1,191)
8,766
(163,025)
20,749
111,203
131,952
217,208
94
129,759
14,494
10,364
(1,177)
352,131
919,233
(509,494)
(7,707)
(517,201)
(283,981)
445,623
1,938
(407,353)
(121,460)
—
—
27,687
(337,546)
64,486
46,717
111,203
$
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
$
$
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 29
Rep or t of Independent Regist ere d Pub li c A cco unti ng Fi r m on Condens ed Fi nanci al St at e me nt s
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, 2010 and 2009, and the related consolidated statements of income, shareholders’ equity, and cash
flows for each of the three years in the period ended September 30, 2010 (not presented separately
herein); and in our report dated November 12, 2010, we expressed an unqualified opinion on those
consolidated financial statements.
In our opinion, the information set forth in the accompanying condensed consolidated financial
statements is fairly stated in all material respects in relation to the consolidated 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, 2010, based on criteria established in Internal Control—Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
and our report dated November 12, 2010 (not presented separately herein) expressed an unqualified
opinion thereon.
Dallas, Texas
November 12, 2010
30 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
Cons olidated Finan ci al and St a t i sti cal Su mma r y 2006– 20 10
Year E nded Se pt ember 30
(cid:9)(cid:62)(cid:143)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:45)(cid:133)(cid:105)(cid:105)(cid:204)(cid:202)(cid:12)(cid:62)(cid:204)(cid:62)(cid:202)(cid:62)(cid:204)(cid:202)(cid:45)(cid:105)(cid:171)(cid:204)(cid:105)(cid:147)(cid:76)(cid:105)(cid:192)(cid:202)(cid:206)(cid:228)(cid:202)(cid:173)(cid:228)(cid:228)(cid:228)(cid:195)(cid:174)
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
(cid:10)(cid:213)(cid:195)(cid:204)(cid:156)(cid:147)(cid:105)(cid:192)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:54)(cid:156)(cid:143)(cid:213)(cid:147)(cid:105)(cid:195)(cid:202)(cid:173)(cid:62)(cid:195)(cid:202)(cid:147)(cid:105)(cid:204)(cid:105)(cid:192)(cid:105)(cid:96)(cid:174)
Consolidated distribution gas sales volumes (MMcf)
Consolidated distribution gas transportation
2010
2009
2008
2007
2 0 0 6
$
$
$
$
$
$
$
542,636
4,793,075
(290,887)
6,763,791
2,178,348
1,809,551
3,987,899
4,789,690
1,364,941
205,839
2.20
90,164
92,422
1.34
19,738
30.06
26.41
29.25
24.16
13.30
1.21
4.6%
$
$
$
$
$
$
$
509,494
4,439,103
91,519
6,367,083
2,176,761
2,169,400
4,346,161
4,969,080
1,346,702
190,978
2.07
92,552
91,620
1.32
20,790
28.80
20.20
28.18
23.52
13.61
1.20
4.7%
$
$
$
$
$
$
$
472,273
4,136,859
78,017
6,386,699
2,052,492
2,119,792
4,172,284
7,221,305
1,321,326
180,331
1.99
90,815
89,941
1.30
21,756
29.46
25.09
26.62
22.60
13.38
1.18
4.9%
$
$
$
$
$
$
$
392,435
3,836,836
149,217
5,895,197
1,965,754
2,126,315
4,092,069
5,898,431
1,250,082
168,492
1.91
89,327
87,486
1.28
22,829
33.11
26.47
28.32
22.01
14.83
1.29
4.5%
$
$
$
$
$
$
$
425,324
3,629,156
(1,616)
5,719,547
1,648,098
2,180,362
3,828,460
6,152,363
1,216,570
147,737
1.81
81,740
81,173
1.26
24,690
29.11
25.79
28.55
20.16
15.77
1.42
4.4%
322,628
282,117
292,676
297,327
272,033
volumes (MMcf)
Consolidated distribution throughput (MMcf)
131,547
454,175
126,768
408,885
136,678
429,354
130,542
427,869
121,962
393,995
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
428,599
528,689
595,542
505,493
410,505
353,853
3,186,040
2,780
102%
5.77
.46
9.1%
4,913
1,243
114
676
3.09
$
$
$
$
370,569
3,178,844
2,713
100%
6.95
.46
8.9%
4,891
1,165
116
678
2.82
$
$
$
$
$
$
$
$
389,392
3,191,779
2,820
100%
9.05
.43
8.8%
4,750
1,091
122
700
3.06
$
$
$
$
370,668
3,187,127
2,879
100%
8.09
.44
8.8%
4,653
1,020
119
713
2.75
283,962
3,181,199
2,527
87%
10.02
.49
8.9%
4,632
969
112
723
2.55
$
$
$
$
* Heating degree days are adjusted for service areas with weather-normalized operations.
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 31
Atm os Ene rgy Of fi ce rs
Senior Management Team
Regulated Divis ions
Robert W. Best
Executive Chairman
of the Board
Kim R. Cocklin
President and
Chief Executive Officer
(cid:27)(cid:176)(cid:202)(cid:28)(cid:105)(cid:219)(cid:136)(cid:152)(cid:202)(cid:1)(cid:142)(cid:105)(cid:192)(cid:195)
President,
Kentucky/Mid-States Division
Richard A. Erskine
President,
Atmos Pipeline–Texas Division
Fred E. Meisenheimer
Senior Vice President,
Chief Financial Officer and Treasurer
(cid:12)(cid:62)(cid:219)(cid:136)(cid:96)(cid:202)(cid:13)(cid:176)(cid:202)(cid:20)(cid:62)(cid:204)(cid:105)(cid:195)
President,
Mississippi Division
Louis P. Gregory
Senior Vice President and
General Counsel
Gary W. Gregory
President,
West Texas Division
Michael E. Haefner
Senior Vice President,
Human Resources
(cid:47)(cid:156)(cid:147)(cid:202)(cid:45)(cid:176)(cid:202)(cid:21)(cid:62)(cid:220)(cid:142)(cid:136)(cid:152)(cid:195)(cid:93)(cid:202)(cid:27)(cid:192)(cid:176)
President,
Louisiana Division
John A. Paris
President,
Mid-Tex Division
Gary L. Schlessman
President,
Colorado-Kansas Division
32 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
Atm os Ene rgy Of fi ce rs
Nonr egulated Operations
Shared Ser vices (continued)
Mark S. Bergeron
President,
Atmos Energy Holdings, Inc.
Richard J. Gius
Vice President and
Chief Information Officer
Share d Ser v ices
Verlon R. Aston, Jr.
Vice President,
Governmental and
Public Affairs
Christopher T. Forsythe
Vice President and Controller
Susan K. Giles
Vice President,
Investor Relations
Conrad E. Gruber
Vice President,
Strategic Planning
(cid:12)(cid:220)(cid:62)(cid:143)(cid:62)(cid:202)(cid:27)(cid:176)(cid:202)(cid:28)(cid:213)(cid:133)(cid:152)
Corporate Secretary
Kenneth M. Malter
Vice President,
Gas Supply and Services
(cid:31)(cid:62)(cid:192)(cid:219)(cid:136)(cid:152)(cid:202)(cid:29)(cid:176)(cid:202)(cid:45)(cid:220)(cid:105)(cid:105)(cid:204)(cid:136)(cid:152)
Vice President,
Customer Service
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 33
Boa rd of Dir ectors
Robert W. Best
Executive Chairman
of the Board,
Richard W. Cardin
Kim R. Cocklin
Richard W. Douglas
(cid:44)(cid:213)(cid:76)(cid:105)(cid:152)(cid:202)(cid:13)(cid:176)(cid:202)(cid:13)(cid:195)(cid:181)(cid:213)(cid:136)(cid:219)(cid:105)(cid:143)
Retired partner of Arthur
President and
Executive Vice President,
Vice President for
Andersen LLP
Chief Executive Officer,
Jones Lang LaSalle LLC
Community and Corporate
Atmos Energy Corporation
Nashville, Tennessee
Atmos Energy Corporation
Dallas, Texas
Relations, The University
Dallas, Texas
Board member since 1997
Dallas, Texas
Board member since 2007
of Texas Southwestern
Board member since 1997
Committees: Audit (Chairman),
Board member since 2009
Committees: Human
Medical Center at Dallas
Executive, Nominating and
Corporate Governance
Resources, Work Session/
Dallas, Texas
Annual Meeting
Board member since 2008
Committees: Audit,
Human Resources
Richard K. Gordon
Robert C. Grable
General Partner, Juniper
Partner, Kelly Hart &
Energy LP, Juniper Capital LP
Hallman LLP
Dr. Thomas C.
Meredith
Retired, formerly
Phillip E. Nichol
Nancy K. Quinn
Retired Senior Vice
President of Central
Principal, Hanover
Capital, LLC
and Juniper Advisory LP
Fort Worth, Texas
Commissioner of Mississippi
Division Staff, UBS
East Hampton, New York
Houston, Texas
Board member since 2009
Institutions of Higher Learning
PaineWebber Incorporated
Board member since 2004
Board member since 2001
Committees: Audit, Human
Jackson, Mississippi
Dallas, Texas
Committees: Audit,
Committees: Human
Resources
Board member since 1995
Board member since 1985
Nominating and Corporate
Resources (Chairman),
Executive, Nominating and
Corporate Governance
Committees: Work Session/
Committees: Nominating
Governance
Annual Meeting (Chairman),
and Corporate Governance
Audit, Executive, Nominating
(Chairman), Executive, Human
and Corporate Governance
Resources, Work Session/
Annual Meeting
Stephen R. Springer
Charles K. Vaughan
Richard Ware II
Lee E. Schlessman
Retired Senior Vice President
Retired Chairman
President, Amarillo
and General Manager,
of the Board,
National Bank
Honorary Director
President, Dolo
Midstream Division, The
Atmos Energy Corporation
Amarillo, Texas
Investment Company
Williams Companies, Inc.
Dallas, Texas
Board member since 1994
Denver, Colorado
Syracuse, Indiana
Board member since 1983
Committees: Audit,
Retired from Board in 1998
Board member since 2005
Lead Director since 2003
Nominating and Corporate
Committee: Work Session/
Committee: Executive
Governance, Work
Annual Meeting
(Chairman)
Session/Annual Meeting
34 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
Corpor at e Inf or ma ti on
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 common 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, Mon-
day 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 website
at www.amstock.com. Please refer to Atmos Energy in your
e-mail message and include your Atmos Energy shareholder
account number.
Independent Registered Public Accounting Firm
Ernst & Young LLP
One Victory Park
Suite 2000
2323 Victory Avenue
Dallas, Texas 75219
214-969-8000
(cid:19)(cid:156)(cid:192)(cid:147)(cid:202)(cid:163)(cid:228)(cid:135)(cid:28)
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 website at www.atmosenergy.com.
Annual Meeting of Shareholders
The 2011 Annual Meeting of Shareholders will be held in the
Pavilion Ballroom at the Belo Mansion, 2101 Ross Avenue,
Dallas, Texas 75201 on Wednesday, February 9, 2011, at 9:30 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 at 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
www.atmosenergy.com. Our website 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 (voice) 972-855-3040 (fax)
InvestorRelations@atmosenergy.com
ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 35
(cid:19)(cid:156)(cid:192)(cid:220)(cid:62)(cid:192)(cid:96)(cid:135)(cid:143)(cid:156)(cid:156)(cid:142)(cid:136)(cid:152)(cid:125)(cid:202)(cid:45)(cid:204)(cid:62)(cid:204)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:195)
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-look-
ing 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, 2010.
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 any of its forward-looking statements, whether as a result of new information, future events or otherwise.
Other Information
You can view this Summary Annual Report, our Annual Report on Form 10-K and other financial documents for fiscal 2010 and previous
years at www.atmosenergy.com.
If you are a shareholder who would like to receive our Summary Annual Report and other company documents electronically in the future,
please sign up for electronic distribution. It’s convenient and easy, and it saves the costs to produce and distribute these materials.
To receive these documents over the Internet next year, please visit www.amstock.com and access your account to give your consent. Please
remember that accessing our Summary Annual Report and other company documents over the Internet may result in charges to you from
your Internet service provider or telephone company.
Inside back cover: An Atmos Energy technician uses specialized
protective equipment for working in underground confined spaces.
Atmos Energy’s culture of safely emphasizes taking all precautions
to work safely and protect fellow employees as well as the public.
Front cover: In Gas City at Atmos Energy’s new Charles K. Vaughan
Center in Plano, Texas, service technicians learn and practice skills
with the coaching and guidance of highly expert instructors.
© 2010 Atmos Energy Corporation. All rights reserved.
Atmos Energy® is a registered trademark of Atmos Energy Corporation.
LEED and related logo is a trademark owned by the U.S. Green Building Council and is used by permission.
36 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT
Atmos Energy Corporation
P.O. Box 650205
Dallas, Texas 75265-0205
atmosenergy.com