Atmos Energy 2001 Annual Report Download

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Atmos
Energy
Corporation
2001
Summary
Annual Report

Table of contents

  • Page 1
    Atmos Energy Corporation 2001 Summary Annual Report

  • Page 2

  • Page 3
    The Spirit That Binds Us. Reaffirming our commitment to our strategy, continuing our growth and making the most of our opportunities require vision, determination, passion, creativity, excellence and, above all, energy. 38

  • Page 4
    ... share Book value per share at end of year Total 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...

  • Page 5
    ... Atmos Energy Louisiana, the state's largest pure gas utility; we also announced plans to grow further by acquiring the largest pure gas utility in Mississippi. ➤ In our nonutility operations, we acquired full ownership of Woodward Marketing, launched a new venture to build small electric power...

  • Page 6
    ...in Colorado, Georgia, Illinois, Iowa, Kansas, Kentucky, Louisiana, Missouri, Tennessee, Texas and Virginia through its five operating divisions -Atmos Energy Louisiana; Energas Company, which includes nonutility sales of gas for irrigation; Greeley Gas Company; United Cities Gas Company; and Western...

  • Page 7
    Western Kentucky Gas Company Owensboro, Kentucky United Cities Gas Company Atmos Energy Corporation Dallas, Texas Franklin, Tennessee Mississippi Valley Gas Company Jackson, Mississippi Atmos Energy Louisiana Lafayette, Louisiana Business Unit Headquarters Utility Operations Atmos ...

  • Page 8
    ... 279,000 customers to our utility system and provided valuable assets and relationships for our nonutility business. LGS's utility operations were smoothly integrated with those of our Trans Louisiana Gas Company to form a new business unit, Atmos Energy Louisiana. Teams of our employees from all...

  • Page 9
    ... acquire Mississippi Valley Gas for $75 million cash and $75 million in Atmos common stock. We also will assume Mississippi Valley Gas' outstanding debt, net of working capital, of about $45 million. At an Atmos Energy Corporation paid dividends during 2001 of $1.16 per share. Our annual indicated...

  • Page 10
    ... customer service. In 2001, Woodward Marketing acquired two Kentucky-based natural gas marketing companies, adding about 50 million cubic feet (MMcf) per day of nonutility gas sales. We estimate that Atmos Energy Holdings has the ability to increase its earnings by 10 percent to 15 percent annually...

  • Page 11
    ... to our Customer Support Center in Amarillo, Texas. Our employees undertook extraordinary efforts to cut the customer hold time by setting up satellite call centers, enhancing Web-based customer service options and staffing local offices to be available for customers who wanted to talk to a company...

  • Page 12
    ... deposit. Collecting delinquent accounts will remain a top priority in 2002. Because of the unusually large number of customers disconnected, we have been working with regulatory commissions, social services and public assistance agencies to assist customers in getting their gas service reconnected...

  • Page 13
    ... in gas prices and, in turn, should help lower our customer accounts receivable caused by higher gas prices. In presenting our gas-supply hedging program to state regulatory agencies, we received approvals in some states and broad support from all the commissions. Gas supply outlook The outlook for...

  • Page 14
    ...who retired after 33 years of service. Mr. Hackler was succeeded as president of Atmos Energy Louisiana by Conrad E. Gruber. Mr. Gruber, in turn, was succeeded as president of Western Kentucky Gas by John A. Paris. Succeeding Mr. Fritz as our chief information officer is Leslie H. Duncan, who brings...

  • Page 15
    ... the spirit and results worthy of your confidence. Sincerely, Leading Atmos Energy Corporation is its Management Committee composed of (left to right) J. D. Woodward, senior vice president, nonutility operations; R. Earl Fischer, senior vice president, utility operations; Robert W. Best, chairman...

  • Page 16
    ...our efficiency, but we never forget the importance of the human touch. The true measure is in receiving outstanding marks for service from our customers. Shown is Greeley Gas Company Supervisor Mike Lehman of Steamboat Springs, Colorado, where we use snowmobiles to reach remote homes during times of...

  • Page 17
    ...the length of customer hold times by setting up satellite call centers, enhancing Web-based customer service options and staffing local offices to be available for customers who wanted to talk with a company representative in person. Energas Meter Reader Stella Guerra of Plainview, Texas, has served...

  • Page 18
    ... helpful customer service, but also for the efficiency of its operations. One industry efficiency measure is the number of customers served per employee. The average for Atmos' industry peer group in 2001 was 439 customers served per employee, compared to 587 customers served by each Atmos employee...

  • Page 19
    ... connected or reconnected to our distribution system. We also have worked with social service and public assistance agencies as well as state regulators to help customers restore their service as soon as possible. Increased security To protect our customers, employees and assets, Atmos always has...

  • Page 20
    ... most profitable gas providers in the industry. Our fiscal 2001 results proved how we are accomplishing these two goals by successfully overcoming business challenges. Regulatory relations As a regulated business, we need a reasonable opportunity to earn our allowed rates of return and to recover...

  • Page 21
    ... lessen the effects of higher gas prices during the winter on customers with fixed incomes and on low income customers, Greeley Gas Public Affairs Manager Karen Wilkes (shown left) formed a coalition of industry representatives and energy assistance agencies throughout Colorado. Together, this group...

  • Page 22
    ... are directly related to heating requirements during winter weather. Rates that are weather-normalized help stabilize rates for our customers and operating revenues for our utility business units. As a result, Atmos has a long-term strategy to obtain weather-normalized rates in Texas, Louisiana and...

  • Page 23
    ... our rate base. Mississippi Valley Gas has weather-normalized rates, as well. Weather is a critical factor affecting our sales of natural gas for irrigation. Many West Texas farmers use gas to power irrigation pumps during the spring and summer. Early in the 2001 season, rainfall and high gas prices...

  • Page 24
    ...acquisition of Louisiana Gas Service Company in July and combined it with our Trans Louisiana Gas operations to form Atmos Energy Louisiana. Atmos is now the largest pure natural gas distributor in Louisiana. Shown are Anthony McGehee (left), senior construction operator who worked for Trans La, and...

  • Page 25
    Spirit of...Unity United Cities Gas Journeyman Serviceman Leigh Jackson serves as a volunteer firefighter in Ironton, Missouri. 19

  • Page 26
    Our Spirit of...Continued Growth with Mississippi's No. 1 Gas Company We concluded fiscal 2001 by announcing in September our ninth acquisition since 1983. Atmos will acquire Mississippi Valley Gas Company, Mississippi's largest gas utility. Mississippi Valley Gas will expand our utility operations ...

  • Page 27
    ... 2001 to acquire Mississippi Valley Gas Company, the state's largest gas utility, which will make Atmos the country's third-largest pure gas distributor. Mississippi Valley Gas serves approximately 261,500 Mississippi customers in 144 communities, including Natchez, known for its antebellum homes...

  • Page 28
    Our Spirit of...En Atmos has developed an innovative strategy to enter the electric generation market with minimal risk. In the summer of 2001, Atmos Power Systems completed a 20-megawatt electric generating plant and leased it to the Electric Department of the City of Bolivar, Tennessee. The plant...

  • Page 29
    ... Board in Monroe, Louisiana, which works to bring new businesses and new jobs to the area, such as this site for a shopping center being developed by a national discount department store. Tennessee, and provides peak-demand electricity to the Tennessee Valley Authority. Atmos Power Systems is...

  • Page 30
    ... Annual Report on Form 10-K for the year ended September 30, 2001, by calling Investor Relations at 1-800-382-8667 between 7:30 a.m. and 4:30 p.m. Central time. Our Form 10-K may also be viewed on Atmos' Web site at http://www.atmosenergy.com. Additional investor information can be found inside the...

  • Page 31
    ... E R G Y C O R P O R A T I O N Atmos at a Glance Year ended September 30 2001 2000 Meters in service Residential Commercial Industrial (including agricultural) Public authority and other Total meters Heating degree days Actual (weighted average) Percent of normal Sales volumes (MMcf) Residential...

  • Page 32
    ... T I E S Shareholders' equity Common stock, no par value (...Shareholders' equity Long-term debt Total capitalization Current liabilities Current maturities of long-term debt Short-term debt Accounts payable and accrued liabilities Taxes payable Customers' deposits Liabilities from risk management...

  • Page 33
    ...per share data) Operating revenues Purchased gas cost Gross profit Gas trading margin Operating expenses Operation Maintenance Depreciation and amortization Taxes, other than income Total operating expenses Operating income Other income Equity in earnings of Woodward Marketing, L.L.C. Miscellaneous...

  • Page 34
    ...operating activities: Depreciation and amortization: Charged to depreciation and amortization Charged to other accounts Deferred income taxes Deferred lease income Net assets/liabilities from risk management... common stock Net ...cash equivalents at end of year $ (48,800) 347,099 (17,670) (44,112...

  • Page 35
    ... sheets of Atmos Energy Corporation at September 30, 2001 and 2000, and the related consolidated statements of income, shareholders' equity and cash flows for each of the three years in the period ended September 30, 2001 (not presented separately herein) and in our report dated November 2, 2001, we...

  • Page 36
    ...MMcf) Total throughput (MMcf) Meters in service at end of year Total meters and propane customers Heating degree days# Degree days as a percentage of normal Average gas sales price per Mcf sold Average purchased gas cost per Mcf sold Average transportation fee per Mcf S T A T I S T I C S 156,544 61...

  • Page 37
    ... adjusted for a 3-for-2 stock split in May 1994, and amounts have been restated for pooling of interests with Greeley Gas Company in December 1993. # Heating degree days for 2001 and 2000 are presented excluding service areas with weather-normalized operations. Heating degree days for years prior to...

  • Page 38
    ... per share projections, operations, markets, services, rates, recovery of costs, availability of gas supply and other factors. A discussion of these risks and uncertainties may be found in the Company's Form 10-K for the year ended September 30, 2001. Although the Company believes these forward...

  • Page 39
    ... President, Human Resources Vice President, Investor Relations and UTILITY BUSINESS UNITS Corporate Communications Fred E. Meisenheimer Thomas R. Blose, Jr. Vice President and Controller Gordon J. Roy President, United Cities Gas Company Conrad E. Gruber President, Atmos Energy Louisiana Tom...

  • Page 40
    ...: Nominating (Chairman), Human Resources, Work Session/Annual Meeting Robert W. Best Chairman, President and Chief Executive Officer Atmos Energy Corporation Dallas, Texas Board member since 1997 Committee: Executive Carl S. Quinn General Partner, Quinn Oil Company, Ltd. East Hampton, New York...

  • Page 41
    ...be viewed on Atmos' website: http://www.atmosenergy.com. Annual Meeting of Shareholders The 2002 Annual Meeting of Shareholders will be held at RiverPark Center, 101 Daviess Street, Owensboro, Kentucky 42303 at 11 a.m. CST on February 13, 2002. Direct Stock Purchase Plan Atmos Energy Corporation has...

  • Page 42