Atmos Energy 2007 Annual Report Download - page 8

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BRIDGING THE FUTURE
FISCAL 2007
NET INCOME BY SEGMENT
Contributions from regulated and
nonregulated operations
REGULATED 43.5% Natural Gas Distribution
20.5% Regulated Transmission and Storage
NONREGULATED 27.2% Natural Gas Marketing
8.8% Pipeline, Storage and Other
T
o better reflect how Atmos Energy operates,
we realigned our organization and began
reporting our results of operations under the
following segments, effective September 1, 2007.
>>Natural gas distribution segment, formerly the
utility segment, includes our regulated natural
gas distribution and related sales operations.
>>Regulated transmission and storage segment
includes the regulated natural gas pipeline
and storage operations of our Atmos
Pipeline–Texas Division; these operations
previously were included in the former
pipeline and storage segment.
>>Natural gas marketing segment remains
unchanged and includes our nonregulated
natural gas marketing and gas management
services.
>>Pipeline, storage and other segment comprises
primarily our nonregulated natural gas trans-
mission and storage services, which formerly
were in the pipeline and storage segment.
Our nonregulated natural gas marketing,
pipeline and storage operations contributed 36
percent of fiscal 2007 net income. Earnings
from our gas marketing operations went down,
year over year, because of lower unit margins,
but earnings from our nonregulated pipeline and
storage operations increased significantly.
This strategic symmetry is increasingly
important to our success. Most of our growth
for the past 20 years has come from our
disciplined approach to acquiring and integrating
utility properties. Although we remain interested in
future acquisition opportunities, we are now
focusing on opportunities to invest in our
existing regulated and nonregulated operations.
Above all, we are dedicated to ensuring
the continued safety, reliability and efficiency
of our operations.