Atmos Energy 2002 Annual Report Download - page 11

Woodward Marketing turned in impressive contribu-
tions from increased volumes due to acquisitions
we made in 2001. These include the nonutility assets
of LGS Natural Gas, a large natural gas storage
field in Kentucky and two gas marketing companies.
Woodward also realized increased sales of wholesale
gas, favorable margins on gas trading and gains on
sales of gas from inventory.
Woodward Marketing differs fundamentally
from other gas marketing companies that have been
experiencing difficulty. Five of its strengths
stood out in 2002:
Years of success Woodward Marketing
has grown steadily throughout its 17 -year
history. It is an established competitor
in the natural gas marketing business,
and its employees are highly experi-
enced in this business.
Excellent service Woodward Marketing
knows natural gas marketing and
how to serve its customers extremely
well; in industry surveys, customers
consistently rank it as one of the best
in customer service.
Continual contributions Woodward Marketing’s
contribution to Atmos Energy’s consolidated net
income increased every quarter of fiscal 2002.
Strategic acquisitions Woodward Marketing’s volumes
have grown by making strategic acquisitions and by
managing other Atmos Energy assets.
Stable and growing book of business The bulk of
Woodward Marketing’s business is built on long-term
relationships and excellent customer service.
Woodward has retained approximately 90 percent of
its customers since it was founded in 1985. It has
been ranked consistently among the top three mid-tier
gas marketers in the United States. Its continuity
of business and commitment to service have created
stable and growing contributions
to our earnings.
For these reasons, we take great
confidence in the outlook for our
nonutility operations. This past
July, others showed their confidence,
too, when Woodward Marketing
renegotiated its uncommitted demand
credit facility and increased the
facility’s limit by $85 million to $210
million. This increased credit
facility will be used to support our
growing gas marketing business.
Our nonutility operations — gas
marketing and trading, storage and transportation, and
small distributed power generation — are vital and
honorable businesses. We have great confidence in
the future of Woodward Marketing and our other
nonutility units.
7
Atmos Energy paid dividends during fiscal 2002
of $1.18 per share. Our annual indicated dividend
rate for fiscal 2003 is $1.20.
Atmos Energy Dividend History
‘03
‘02
‘01
‘00
‘99
‘98
‘97
‘95
‘96
‘94
‘93
‘92
‘91
‘90
‘89
‘88
‘87
.20 .40 .60 .80 1.00 1.20
‘86
‘84
‘85
1.20
1.18
1.16
1.14
1.10
1.06
1.01
.98
.96
.91
.82
.79
.75
.74
.73
.71
.54
.50
.40
.35
$0.00