Atmos Energy 2000 Annual Report Download - page 12

Download and view the complete annual report

Please find page 12 of the 2000 Atmos Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 38

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38

8
........
8
atural gas may be the energy
success story for the next 20 years.
The American Gas Foundation
and other organizations project
average annual U.S. natural gas consumption will
increase from the current level of 22 quadrillion
Btus to 30 – 35 quadrillion Btus by 2020. Atmos
is positioned to benefit from the bright future
of natural gas.
Atmos’ core business remains the distribution
of natural gas through its five operating divisions:
Energas Company, Greeley Gas Company,Trans
Louisiana Gas Company, United Cities Gas
Company and Western Kentucky Gas Company.
We intend to increase earnings by profitably
growing our residential, commercial and industrial
customer bases, improving our efficiency and
earning our allowed rates of return in each
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 of
$22.4 million on revenues of $740 million in
Running Our Utilities ExceptionallyWell
2000, or about 63 percent of total net income.This
compares with utility net income of $10.8 million
on revenues of $621.2 million in 1999. Utility net
income was higher in 2000 primarily due to the
positive impact of new rate designs and revenue
increases approved in recent regulatory proceed-
ings, as well as the addition of approximately 48,000
customers as the result of the closing of the ANG
Missouri acquisition. Reduced operating costs in
fiscal 2000 also contributed to improved net income.
Enhancing Efficiency
and Convenience
A major part of Atmos’ strategy for increasing
its earnings is managing costs through efficient oper-
ations. Atmos is one of the most efficient operators
in the industry, with operating and maintenance
costs of $135 per meter compared to an average
of $220 per meter for
our peer group.We
are ahead of many
companies in having the
technology that provides
Atmos the foundation for
delivering exceptional
customer service while
N
CUSTOMER SUPPORT CENTER
...................