Atmos Energy 2000 Annual Report Download

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ATMOS ENERGY CORPORATION SUMMARY ANNUAL REPORT 2000
CONTINUING OUR TRADITION OF GR0WTH

Table of contents

  • Page 1
    AT M O S E N E R G Y C O R P O R AT I O N S U M M A R Y A N N U A L R E P O R T 2 0 0 0 CONTINUING OUR TRADITION OF GR0WTH

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    ... % of normal ...Meters in service at end of year ...Return on average shareholders' equity ...Shareholders' equity as a ...Shareholders Running Our Utilities Exceptionally Well Expanding Our Non-Utility Operations Growing Through Acquisitions Financial Review Atmos Officers Board of Directors Corporate...

  • Page 4
    ...Headquartered in Dallas, Texas, Atmos Energy Corporation distributes natural gas to more than one million customers in Colorado, Georgia, Illinois, Iowa, Kansas, Kentucky, Louisiana, Missouri, South Carolina, Tennessee,Texas and Virginia through its operating divisions - Energas Company, Greeley Gas...

  • Page 5
    ... to better serve our customers. As you will see in this year's Summary Annual Report, Atmos is growing in a variety of ways - from increasing our presence in the state of Missouri through growth in our utility operations to becoming an owner in one of the nation's largest propane companies. Just as...

  • Page 6
    ... and serving more than one million customers. In 2000, we proved once again that Atmos is a successful acquirer and integrator of natural gas utility operations. In April, we announced our largest acquisition since 1997 - the purchase of the assets of Louisiana Gas Service Company, a division...

  • Page 7
    ... of the propane operations we acquired through United Cities Gas Company in 1997. In February Atmos has grown from a regional company with a customer base of approximately 300,000 to a company with a multi-state presence and more than one million customers. In the future, we plan to continue...

  • Page 8
    ... the core of Atmos' non-utility operations and through the continued leadership of J. D. Woodward and his Woodward Marketing team. Sale of Retail Products and Services. In 2000, we launched the sale of non-traditional retail products and services to a portion of our customer base.This venture seeks...

  • Page 9
    ... e our business. More sophisticated technology has already made it possible to read our customers' meters using hand-held electronic meter reading equipment and to dispatch service orders most efficient operators in the industry. Our operating and maintenance costs of $135 per meter highlights our...

  • Page 10
    ....This technology should further serve as a platform for web-based customer account information and service requests, which we expect to add to our technology infrastructure in the near future. A Bright Future for Natural Gas and for Atmos The strong demand for natural gas and the recent dramatic...

  • Page 11
    .... We remain one of the most efficient natural gas distribution companies in the nation by virtue of our ability to leverage technology to aggressively manage our operating costs, accommodate future growth and provide exceptional customer service. With these accomplishments, we have gained strong...

  • Page 12
    ...an average CUSTOMER SUPPORT CENTER state in which we operate. We will continue to strengthen our utility business by providing superior customer service and reliability, by providing competitive gas rates and by effective cost management. Financial Performance Utility operations reported net income...

  • Page 13
    ...that enhances both customer convenience and our service efficiency. Experienced representatives at our Customer Support Center handle more than 7,000 customer calls each day throughout our company and dispatch work orders to computers located in the vehicles of our service technicians. HOURS, DAYS...

  • Page 14
    .... Customer Additions Customer Support Center with other technology In 2000, Atmos added new meters through used in the field, including automated dispatching internal growth, with the greatest increases occurand the automated transmission of service orders ring in its Kansas City, Western Colorado...

  • Page 15
    ... 2001, compared with 17 percent in 2000. Performance-based regulation (PBR) is in effect for our Kentucky,Tennessee and Georgia operations. PBRs permit the Company and its customers to share in purchased gas cost savings when Atmos can obtain gas supplies below certain benchmark indices. In addition...

  • Page 16
    ... sale of natural gas for agricultural and industrial customers in West Texas, a 45 percent equity interest in Woodward Marketing LLC, the sale of retail products and services, and natural gas storage. Propane Operations Net income for our propane operations increased in 2000 despite weather that...

  • Page 17
    A propane limited partnership formed by Atmos and three other gas utilities merged with Heritage Propane Partners, L.P., and now serves more than 480,000 customers in 28 states, including luxury homes in the Jacksonville Beach area of Florida.

  • Page 18
    ...products through Atmos Energy Services, Inc. Atmos is partnering with mass-marketing experts to offer customers home protection services and memberships in a discount buying club. Customers who purchase products through the Company receive the added convenience of paying only one bill since the cost...

  • Page 19
    ... OWNERSHIP Woodward Marketing has grown by providing natural gas services to industrial customers, natural gas utilities and municipalities, such as Loudon,Tennessee, known for its many recreational and historic attractions.This lovely Civil War era home is a Loudon landmark. Atmos currently owns...

  • Page 20
    ..., Atmos announced that it would acquire from Southwestern Energy its Associated Natural Gas' Missouri natural gas distribution properties, at a cost per customer of $667. The transaction closed on June 1, adding 48,000 customers in Missouri and significantly increasing Atmos' presence in the state...

  • Page 21
    We increased our presence in Missouri, gaining new customers like Noranda Aluminum in New Madrid which employs 1,130 people and has produced more than 10 billion pounds of aluminum used in everything from window frames to automotive wheels and electrical wire. NEW CUSTOMERS

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    ...279,000 meters and its service territories include two of the fastest growing parishes in the state.The acquisition of LGS is a positive one for Atmos for a number of reasons including the existence of a successful and profitable non-utility business operation, the opportunity to increase efficiency...

  • Page 23
    We'll be the biggest fish in Louisiana, serving more than 360,000 total meters when we complete the acquisition of Louisiana Gas Service Company.The acquisition will make us the fifth largest pure natural gas utility in the U.S, with 1.4 million customers. NEW METERS

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    ... in Acadian Gas Pipeline's Napoleonville storage facility and a 19 percent undivided interest in Pine Pipeline in Northern Louisiana. TRANS LA GAS COMPANY LOUISIANA GAS SERVICE The acquisition of LGS will make Atmos the largest natural gas distribution company in the state of Louisiana. 20 ...

  • Page 25
    ... more competitive. Divestiture Opportunities is now an owner in the nation's fifth largest retail We also believe it makes sense to divest the propane marketer. Company of assets in those states where Atmos Acquisition of Remaining I n t e re s t i n Wo o d w a r d Marketing LLC In August 2000, the...

  • Page 26
    ... of operations are presented in our Annual Report on Form 10-K. Investors may request, without charge, our Annual Report on Form 10-K for the year ended September 30, 2000, by calling Investor Relations at 1-800-382-8667 7:30 a.m. - 4:30 p.m. CST. Form 10-K may also be viewed on Atmos' website: http...

  • Page 27
    ...N Year Ended September 30, 2000 Meters in Service Residential ...Commercial ...Industrial (including agricultural) ...Public authority and other ...Total meters ...Propane customers ...Total ...1999 970,873 ...gas revenues ...Total gas revenues ...Propane revenues ...Other revenues ...Total Operating...

  • Page 28
    ... charges and other assets ... 1,230,537 C A P I T A L I Z A T I O N A N D L I A B I L I T I E S Shareholders' equity Common stock, no par value (stated at $.005 per share); issued and outstanding: 2000 - 31,952,340 shares, 1999 - 31,247,800 shares ...Additional paid-in capital ...Retained...

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    ... Ended September 30, 2000 1999 (Dollars in thousands, except per share data) Operating revenues ...Purchased gas cost ...Gross profit ...Operating expenses Operation ...Maintenance ...Depreciation and amortization ...Taxes, other than income ...Total operating expenses ...Operating income ...Other...

  • Page 30
    ...accounts ...Deferred income taxes ...Gain on sale of non-utility assets ...Changes in assets and liabilities ...Net cash provided by operating activities ... $ 35,918 $ 17,744 63,855 3,065 18,251 (5,831) (61,062) 54,196 56,874 4,800... paid ...Issuance of common stock ...Net cash provided by ...

  • Page 31
    ... sheets of Atmos Energy Corporation at September 30, 2000 and 1999, and the related consolidated statements of income, shareholders' equity and cash flows for each of the three years in the period ended September 30, 2000 (not presented separately herein) and in our report dated November 8, 2000, we...

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    ... volumes (MMcf) ...Total throughput (MMcf) ...Meters in service at end of year ...Total meters and propane customers ...Heating degree days ...Degree days as a % of normal ...Average gas sales price per Mcf sold...Average purchased gas cost per Mcf sold ...Average transportation fee per...

  • Page 33
    ... volumes (MMcf) ...Total throughput (MMcf) ...Meters in service at end of year ...Total meters and propane customers ...Heating degree days ...Degree days as a % of normal ...Average gas sales price per Mcf sold ...Average purchased gas cost per Mcf sold ...Average transportation fee per...

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    ... 30

  • Page 35
    ... Wynn D. McGregor Vice President, Human Resources Ron W. McDowell Vice President, New Business Ventures Shared Services Donald P. Burman Assistant Controller Utility Business Units Thomas R. Blose, Jr. President, United Cities Gas Company Conrad E. Gruber President, Western Kentucky Gas Company...

  • Page 36
    ... Senior Vice President and Branch Manager PaineWebber Incorporated Dallas,Texas Board member since 1985 Committees: Nominating (Chairman), Human Resources, Work Session/Annual Meeting Carl S. Quinn Formerly Chairman of the Board, President and Chief Executive Officer United Cities Gas Company...

  • Page 37
    ... Report on Form 10-K is available upon request from Investor Relations, Atmos Energy Corporation, P.O. Box 650205, Dallas,Texas 75265-0205, or by calling 1-800-38-ATMOS (382-8667) 7:30 a.m. - 4:30 p.m. CST. Form 10-K may also be viewed on Atmos' website: http://www.atmosenergy.com. Annual Meeting...

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    Atmos Energy Corporation P.O. Box 650205 Dallas, Texas 75265-0205 (972) 934-9227 3100-AR-2001