Atmos Energy 1997 Annual Report Download - page 12

Second, we want to increase the scope, scale and market share
of our non-utility operations. We see many opportunities for
extending the use of propane in service areas where it would
be difficult to install natural gas distribution systems. We also
are going to pursue opportunities to increase the customer
base of Woodward Marketing, a wholesale natural gas mar-
keting and gas services limited liability corporation in which
we own a 45 percent interest.
Third, we intend to develop a plan to participate in retail
energy services behind the meter. We also intend to survey
and evaluate customer preferences, now and for the future,
and develop specific strategies to deliver those services that
we choose to provide. Our strategy is to seek partners to
join us in providing retail energy services to customers.
These partners, we expect, will be experienced in retail
services and marketing and will recognize the value of our
connection to over 1 million customers and our brand equity.
Fourth, we are going to continue our acquisition strategy to
add new customers and service areas for both our natural
gas distribution and propane operations. We have an excel-
lent track record of acquiring LDC operations that provide
us with diversity in weather, regulation, economies and
markets. We have achieved synergies and benefits quickly,
while preserving brand equity.
What paths for growth
do not make sense for Atmos?
Our management team has invested considerable time
this year analyzing our strengths, core competencies and
distinctive assets. From these discussions came our focused
initiatives I have previously outlined. But it also was impor-
tant not just to identify initiatives we should pursue, but
also areas we should not pursue. We will not be investing
to create a national position in retail marketing. We will look,
however, for joint venture partners, as I explained earlier. We
are not interested in investing in the sector of natural gas pro-
duction, gathering, processing, or in international distribution
projects. We will not pursue electric acquisitions, although
we, along with Woodward, will look for an electric partner for
the Woodward L.L.C. We believe these kinds of projects
would dilute our energy and take away financial resources
from our main business focus.
What are the performance targets that
the company expects to achieve?
Our objective is to continue to provide total returns to our
shareholders that are in the top quartile when compared to
other LDCs of comparable size. We expect to do this through
growth in our customer base and in earnings annually.
When do you expect to see results
of this plan for growth?
We made a number of investments in 1997 from which we
expect to see benefits beginning in 1998 and extending into
1999 and beyond. The United Cities integration is in progress
and on schedule — their organization has been restructured
to match Atmos’ operating model. Our customer service ini-
tiative will be completed in September 1998, when all our
operating divisions are using the central call center. The man-
agement reorganization is complete, with a new leadership
team in place to build on our successful past with our focus
firmly on the future.
Total Assets
93 $786,739
94 $829,385
95 $900,948
96 $1,010,610
97 $1,088,311
Book Value
Per Share
93 $9.98
94 $10.33
95 $10.77
96 $11.27
97 $11.04
93 94 95 96 97
93 94 95 96 97
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