Atmos Energy 1999 Annual Report Download - page 8

Atmos
Energy
Corporation
4
Creating a performance culture. Our vision of building value at Atmos and our strate-
gies for growth will only come to life in the hands, hearts and minds of skilled, committed
employees working every day as one team with a shared set of values and expectations. We
are creating an atmosphere at Atmos that fosters, measures and rewards performance.
Our Total Rewards program ties compensation for the Board, management and employees to
company performance, and addresses ways to improve the workplace environment. By
working from the inside out, we are creating a performance culture with employees who
take pride in their work and convey that spirit of caring to our customers.
Acquisition strategy. Growth through acquisitions is a key component of our strategy for
growing earnings and increasing the value of the Company. In October 1999, Atmos entered
into a definitive agreement to acquire the Missouri natural gas distribution assets of
Associated Natural Gas, part of a wholly-owned subsidiary of Southwestern Energy Company.
Under the terms of the agreement, Atmos will purchase the Missouri gas system for $32
million in cash. The transaction will add 48,000 customers in Missouri, and is expected to be
completed by mid-year 2000, subject to regulatory approvals. Atmos has a proven history of
successfully making acquisitions and integrating the operations quickly and efficiently.
Track record of increasing the dividend. Nowhere is our confidence in the future shown
more clearly than in Atmos’ history of increasing its dividend. For the 12th consecutive year,
Atmos has increased its quarterly dividend. A 3.6 percent increase was approved for fiscal
2000, bringing the regular quarterly dividend to $.285 per share, for an annual indicated
dividend of $1.14 per share. The Company has paid 64 consecutive quarterly dividends.
Looking ahead. Our actions over the past two and one-half years have established a firm
foundation for profitable growth in the more competitive environment we expect in the future.
We will continue to be aggressive and proactive, focusing on profitably growing the market
share of our utility and non-utility businesses, and making acquisitions to sustain our growth
rate. The combined talents and energy of the Atmos Board of Directors, management and
employees are dedicated to building the value of Atmos.
I’d like to close by recognizing the outstanding contribution of our employees this year in achiev-
ing many of our goals and helping to position Atmos for future success. They tirelessly devoted
untold hours configuring and testing our new customer information and financial systems,
often over nights, weekends and holidays away from home and family. The result is that the
conversions were as seamless as possible for our customers. The added urgency of completing
our Year 2000 plans required yet another level of dedication and planning by our employees. We
counted on the best from them in a very demanding period, and they delivered with unwavering
enthusiasm while continuing to provide excellent customer service. The high marks we received
in our customer satisfaction survey are a testament to our employees. With this spirited team
focused on building value, you can see why I am confident about the future of Atmos.
Robert W. Best
Chairman, President and Chief Executive Officer
November 10, 1999
1985 1990 1995 2000*
$0.40
$0.60
$0.80
$1.00
$1.20
Dividend History
* Indicated Annual Dividend
Letter To Shareholders continued