Atmos Energy 2002 Annual Report Download

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Energy.
Atmos Energy Corporation
2002 Summary Annual Report

Table of contents

  • Page 1
    Atmos Energy Corporation 2002 Summary Annual Report Energy.

  • Page 2
    We're bringing more of it to everything we do.

  • Page 3
    ... in Colorado, Georgia, Illinois, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Tennessee, Texas and Virginia. Atmos Energy's nonutility operations, organized under Atmos Energy Holdings, operate in 18 states. They provide natural gas marketing and procurement services to industrial...

  • Page 4
    ... Franklin, Tennessee Recent Acquisition Atmos Energy Holdings Headquarters Houston, Texas 4 Utility Operations Nonutility Operations 5 6 7 Mississippi Valley Gas Division Jackson, Mississippi Atmos Energy Louisiana Division Baton Rouge, Louisiana Atmos Energy Marketing New Orleans, Louisiana...

  • Page 5
    ... single team, one of the nation's largest natural gas companies.They have long shared a spirit of service. Now they share a name. Atmos Energy. For our company and the nearly 1.7 million customers we serve, this change means more than just a new name. It means more capabilities. More potential. More...

  • Page 6
    ... Natural gas marketing net income Other nonutility net income Total Total assets Total capitalization Net income per share - diluted Cash dividends per 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...

  • Page 7
    ... our acquisition of Mississippi Valley Gas directly to customers, fell from the record levels in Company, launched our new nationwide brand as fiscal 2001 when prices spiked at an all-time high. , initiated a major program to raise Atmos Energyâ„¢ Second, the milder winter in fiscal 2002 reduced our...

  • Page 8
    Energy. To The Denver and Rio Grande Railroad connecting Durango and

  • Page 9
    And to the 1.7 million other customers across 12 states who rely on their connection to Silverton, Colorado. Atmos Energy.

  • Page 10
    ... utility division is located. Our utility operations had many $0.0 0 0 Degree Days 2000 20 0 1 2002 achievements in 2002, but Nonutility operations continue growing Our goal is to make our consolidated earnings three in particular will create longAtmos Energy benefited in fiscal 2002 less sensitive...

  • Page 11
    ...used to support our well; in industry surveys, customers .35 '84 growing gas marketing business. consistently rank it as one of the best Atmos Energy paid dividends during fiscal 2002 in customer service. of $1.18 per share. Our annual indicated dividend rate for fiscal 2003 is $1.20. Our nonutility...

  • Page 12
    Energy. To the Hazelton family of Chase County, Kansas, where hard work

  • Page 13
    And to our many other rural farm tap customers who read and report their gas consumption and self-reliance are treasured values. online or over the phone.

  • Page 14
    ... will benefit from entering a growing new market. We will increase our existing diversity of economic activity, weather patterns, classes of customers and ratemaking provisions. Mississippi Valley Gas' rates are weather-normalized and include provisions for monthly purchased gas cost adjustments and...

  • Page 15
    ... base and our allowed rate of return - in Texas, Kansas and possibly other states. Part of our rate strategy is to seek a weather normalization adjustment (WNA) in rates to mitigate the effects of weather on our earnings and our customers' bills. Weather normalization adjusts gas bills downward when...

  • Page 16
    Energy. To historic Jonesborough, Tennessee, where the citizens take pride

  • Page 17
    And to the 2,338 employees of Atmos Energy, whose Spirit of Service is SM in their town's storied past. a cherished tradition.

  • Page 18
    ... on the Louisiana Gas government's best forecast of future U.S. energy Service assets we acquired and full ownership of supply, demand and prices. Among other things, the Woodward Marketing. Additionally, spending was report finds U.S. dependence on foreign oil will elevated due to the purchase of...

  • Page 19
    ... employees are known and respected because they stand for Atmos Energy. By doing their jobs so well - serving customers safely, reliably, efficiently and courteously - they have built Atmos Energy's enviable reputation. Robert W. Best Chairman, President and Chief Executive Officer December 6, 2002...

  • Page 20
    Energy. To the Chevrolet Corvette assembly plant in Bowling Green, Kentucky,

  • Page 21
    And to the thousands of other commercial and industrial customers that Atmos Energy where performance is everything. goes all out to serve.

  • Page 22
    ... our customer service to a new level of excellence. It also reflects a sizable commitment on our part to make doing business with us easier. During 2002, we remodeled and updated more than 150 local offices and service centers, improved the telephone-response capabilities at our Texas and Louisiana...

  • Page 23
    ... for rate-making calculations, in Texas, Kansas and possibly other states. During 2002, we reached agreement with the Louisiana Public Service Commission regarding a tariff rate stabilization adjustment for our Louisiana utility operations. The agreement adds $15.8 million annually to revenues...

  • Page 24
    Energy. To Natchez, Mississippi, where the paddle wheelers still provide a

  • Page 25
    And to the 39,157 miles of underground pipeline by which Atmos Energy delivers vital supplies of vital economic lifeline. natural gas.

  • Page 26
    ... protection against the effects on earnings of warm weather in Texas and Louisiana as has occurred in past years. With the addition of Mississippi Valley Gas Company, beginning in December 2002, our utility operations now serve about 1.7 million customers in more than 1,000 communities across 12...

  • Page 27
    ...suburb of Memphis, Tennessee; and historic Natchez. Benefits of the acquisition Atmos Energy is fully committed to maintaining Mississippi Valley Gas' excellent service standards and adding innovations to benefit customers. Management of the utility will remain in Jackson, and local offices across...

  • Page 28
    ...Atmos Energy. Woodward Marketing has a fundamentally sound business model, giving us great confidence in its future. This is particularly so today in light of the many gas marketing and trading companies that are experiencing difficulties. Strong results of operations Mississippi Valley Gas Company...

  • Page 29
    ... adding about 2.2 Bcf of working gas capacity. It acquired two natural gas marketing companies based in Owensboro, Kentucky, to improve its competitive position within the region and to add to its customer base. It also purchased gas procurement and management services contracts with a throughput of...

  • Page 30
    ... on Form 10-K for the fiscal year ended September 30, 2002, by calling Investor Relations at 1-800-382-8667 between 8 a.m. and 5 p.m. Central time. Our Form 10-K also is available on Atmos Energy's Web site at http://www.atmosenergy.com. Additional investor information is presented inside the back...

  • Page 31
    ... September 30 2002 2001 Meters in service Residential Commercial Industrial (including agricultural) Public authority and other Total meters Heating degree days 1,247,247 122,156 12,694 7,244 1,389,341 1,243,625 122,274 13,020 7,404 1,386,323 Actual (weighted average) Percent of normal Sales...

  • Page 32
    ... Current liabilities Current maturities of long-term debt Short-term debt Accounts payable and accrued liabilities Taxes payable Customers' deposits Liabilities from risk management activities Deferred gas cost Other current liabilities Total current liabilities Deferred income taxes Noncurrent...

  • Page 33
    ... T A T E M E N T S O F I N C O M E September 30 (Dollars in thousands, except per share data) 2002 2001 2000 Operating revenues Purchased gas cost Gross profit Gas trading margin Operating expenses $ 950,849 558,247 392,602 38,538 158,119 81,469 36,221 275,809 155,331 - (1,321) (1,321) 59,174...

  • Page 34
    ... Adjustments to reconcile net income to net cash provided by operating activities: $ 59,656 $ 56,090 $ 35,918 Depreciation and amortization: Charged to depreciation and amortization Charged to other accounts Deferred income taxes Other Net assets/liabilities from risk management activities...

  • Page 35
    ... sheets of Atmos Energy Corporation at September 30, 2002 and 2001, and the related consolidated statements of income, shareholders' equity and cash flows for each of the three years in the period ended September 30, 2002 (not presented separately herein) and in our report dated November 8, 2002, 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 Statistics 145,488 63,053...

  • Page 37
    ... 48,800 213...Gas Company in December 1993. # Heating degree days for 2002 and 2001 are adjusted for service areas with weather-normalized operations. Heating degree days for years prior to 2001 are not adjusted for service areas with weather-normalized operations, as that information was not available...

  • Page 38
    ...to the Company's strategy, earnings 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, 2002. Although the...

  • Page 39
    ...General Counsel Robert E. Mattingly Vice President, Gas Supply Wynn D. McGregor Fred E. Meisenheimer Vice President, Human Resources Utility Divisions J. Kevin Akers Vice President and Controller Gordon J. Roy President, Mississippi Valley Gas Division Vice President, Security and Compliance...

  • Page 40
    ... Investment Company Denver, Colorado Retired from Board in 1998 Gene C. Koonce Formerly Chairman of the Board, President and Chief Executive Officer United Cities Gas Company Nashville, Tennessee Board member since 1997 Committees: Human Resources (Chairman), Executive, Work Session/Annual Meeting...

  • Page 41
    ..., Dallas, Texas 75265-0205 or by calling 1-800-38-ATMOS (382-8667) between 8 a.m. and 5 p.m. Central time. Atmos Energy's Form 10-K may also be viewed on Atmos Energy's Web site: http://www.atmosenergy.com. Annual Meeting of Shareholders Shareholder and Direct Stock Purchase Plan Information: 1-800...

  • Page 42
    Atmos Energy Corporation P.O. Box 650205 Dallas, Texas 75265-0205 atmosenergy.com 3100-AR-2003