Atmos Energy 2008 Annual Report Download

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Blue skies, clear skies: 4reasons to be optimistic
ATMOS ENERGY CORPORATION
2008 SUMMARY ANNUAL REPORT

Table of contents

  • Page 1
    A T M O S 2 0 0 8 S U M M A RY A N N UA L R E P O R T E N E R G Y C O R P O R A T I O N Blue skies, clear skies: 4 reasons to be optimistic

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  • Page 3
    ... economy, energy was in the news. As we have for more than 100 years, Atmos Energy continued to meet our customers' energy demands, improve our service promise, uphold our high standards for safety and reliability, enhance our communities by taking care of our customers and, all the while, keep our...

  • Page 4

  • Page 5
    ... and 5 p.m. Central time. Our Annual Report on Form 10-K also is available on Atmos Energy's Web site at www.atmosenergy.com. Additional investor information is presented on pages 33 and 34 of this report. Opposite: Atmos Energy construction and maintenance technicians inspect new plastic piping...

  • Page 6
    ... settlement with 438 of the 439 Texas cities served by our Mid-Tex Division. We obtained desired outcomes in other cases that were concluded in Georgia, Louisiana, Kansas, Tennessee, Virginia and West Texas. These rate-case results support our goal of stabilizing our regulated earnings by decoupling...

  • Page 7
    ...Colorado, we also are developing a demand-side management program to meet new state regulations. These programs typically involve weatherizing homes for low-income customers and promoting energy conservation. Texas intrastate pipeline benefits from Barnett Shale Our Texas intrastate pipeline turned...

  • Page 8
    ...critical resource. A public policy measure that's very important to our shareholders is preserving the current limitation on capital gains taxes, especially for capital-intensive businesses like Atmos Energy Corporation celebrated 20 years of trading on the New York Stock Exchange on October 1, 2008...

  • Page 9
    ...firm and had worked for 10 years as senior vice president of human resources for Sabre Holdings Corporation. He also had held leadership positions within Sabre while it was part of AMR Corporation and at Xerox Corporation and Eastman Kodak Company. Wynn McGregor, who joined Atmos Energy in 1987, had...

  • Page 10
    ...An efficient fuel, natural gas can be transported thousands of miles without losing its energy the way electricity does. Because it moves through extensive pipeline networks that span the country, natural gas has transmission costs and carbon emissions that are minimal compared to the rail and truck...

  • Page 11
    Under the ground, safe and out of sight, Atmos Energy operates approximately 83,500 miles of underground pipelines to deliver more than 1 billion cubic feet of natural gas annually while protecting communities, farms and ranches, livestock and wildlife, and the environment.

  • Page 12
    ...-gas distribution company with operations primarily in the Southeastern and Midwestern states. U.S. ENERGY CONSUMPTION Natural Gas 23% Coal 22% Oil 40% Nuclear Biomass, Solar, Wind Hydroelectric 8% 4% 3% Highly Efficient Natural gas is a terrific value. Unlike coal, oil or electricity, natural gas...

  • Page 13
    ... to 50 percent less carbon dioxide than homes with all-electric appliances. Natural gas helps us preserve our dwindling unspoiled countryside. It doesn't require the acquisition and transportation processes, such as surface mining and 100-car unit trains, needed to deliver coal for power plants. It...

  • Page 14
    Safe, R eliable and Available D elivering natural gas to customers safely and reliably is what we do. Our company works together with federal, state and local officials and public safety agencies to make natural gas pipelines the safest and most dependable energy delivery system in the country. ...

  • Page 15
    Atmos Energy constantly inspects its pipelines with special trucks, handheld equipment and even airplanes. Here, an all-terrain vehicle with sensitive gas "sniffing" equipment checks a pipeline right of way in the Tennessee countryside.

  • Page 16
    ... measures. We also work with the Department of Homeland Security and other agencies to prevent terrorism and cybercrime. In 2008, for example, Atmos Energy was among a selected group of major corporations that participated with security officials and international governments in the worldwide Cyber...

  • Page 17
    ... allows Atmos Energy, the electric utility, cable and telephone companies and others to mark buried lines to keep everyone safe. Our fleet of service trucks displays the 811 emblem to remind the public to dig safely. Call 811 We actively support the "Call Before You Dig" nationwide program for...

  • Page 18
    ..., to customer call center agents who strive for resolution on the first call, to team leaders who look for ways to improve our service-everyone at Atmos Energy is focused on the customer. A Customer-Centered Vision Most companies say they focus on the customer. But, with customer contact spread out...

  • Page 19
    A surprise visit to a customer by Jeff Hardgrave, vice president of customer service, is business as usual. Atmos Energy employees who directly serve our customers take turns doing other customer-focused jobs to see the customer experience as a seamless opportunity to form loyal relationships.

  • Page 20
    ... understand the lives of our customers. At one time, we had a department of employees whose job was to collect bills. Now, the job of that same group of employees is to learn about our customers, to help them find ways to manage their natural gas usage, to offer a payment plan that suits their needs...

  • Page 21
    ... local energy-assistance agencies. More Ways to Pay We have expanded our customers' payment options. Besides accepting checks by mail, we take online payments by credit cards and electronic funds transfers from checking, savings and other accounts. We also have an extensive network of authorized...

  • Page 22
    ... Environment We work to help customers conserve on natural gas consumption. On our Web site and in our customer communications, we offer energysaving tips and detailed information to keep homes warm and energy usage down. We also underwrite energy conservation and efficiency programs to weatherize...

  • Page 23
    Atmos Energy helps those with low or fixed incomes make the most of their energy dollars by weatherizing their homes against leaks and drafts.

  • Page 24
    ... agencies comes from the federal Low Income Home Energy Assistance Program. Atmos Energy works with state energy-assistance officials to Keeping Rates Affordable In our distribution business, which is regulated by cities and states, we work to establish standards and fair rates for our service...

  • Page 25
    ... vast service territory, hundreds of our employees mentor students, teach reading, raise funds for schools and support higher education institutions. We support numerous other charitable programs, as well, such as United Way, Meals on Wheels, Komen Race for the Cure, Habitat for Humanity and Special...

  • Page 26
    ... Industrial Public authority and other Total gas distribution sales revenues Transportation revenues Other gas revenues Total natural gas distribution revenues Regulated transmission and storage revenues Natural gas marketing revenues Pipeline, storage and other revenues Total operating revenues...

  • Page 27
    ... Gas stored underground Other current assets Total current assets Goodwill and intangible assets Deferred charges and other assets Capitalization and Liabilities Shareholders' equity Common stock, no par value (stated at $.005 per share); 200,000,000 shares authorized; issued and outstanding: 2008...

  • Page 28
    ...30 Dollars in thousands, except per share data 2008 2007 2006 Operating revenues Natural gas distribution segment Regulated transmission and storage segment Natural gas marketing segment Pipeline, storage and other segment Intersegment eliminations Purchased gas cost $ 3,655,130 195,917 4,287,862...

  • Page 29
    ... of long-lived assets Depreciation and amortization: Charged to depreciation and amortization Charged to other accounts Deferred income taxes Stock-based compensation Debt financing costs Other Changes in assets and liabilities Net cash provided by operating activities Cash Flows Used in Investing...

  • Page 30
    ...in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Atmos Energy Corporation at September 30, 2008 and 2007, and the related consolidated statements of income, shareholders' equity, and cash flows for each of the three...

  • Page 31
    ... 994 116 612 3.05 Return on average shareholders' equity Number of employees Net gas distribution plant per meter Gas distribution operation and maintenance expense per meter Meters per employee - gas distribution Times interest earned before income taxes $ $ $ $ $ $ $ $ $ $ *Heating degree...

  • Page 32
    ...E R S Senior Management Team Regulated Divisions Robert W. Best Chairman and Chief Executive Officer J. Kevin Akers President, Kentucky/Mid-States Division Kim R. Cocklin President and Chief Operating Officer Richard A. Erskine President, Atmos Pipeline-Texas Division J. Patrick Reddy* Senior...

  • Page 33
    ...) Mark H. Johnson President, Atmos Energy Marketing, LLC Richard J. Gius Vice President and Chief Information Officer Ronald W. McDowell Vice President, New Business Ventures Conrad E. Gruber Vice President, Strategic Planning John J. Hardgrave Vice President, Customer Service Shared Services...

  • Page 34
    ...S Travis W. Bain II Chairman, Texas Custom Pools, Inc. Plano, Texas Board member since 1988 Committees: Work Session/Annual Meeting (Chairman), Audit, Executive, Human Resources Robert W. Best Chairman and Chief Executive Officer, Atmos Energy Corporation Dallas, Texas Board member since 1997 Dan...

  • Page 35
    ...interactive voice response system 24 hours a day to learn about transferring stock or to check your recent account activity all without the assistance of a customer service representative. Please have available your Atmos Energy shareholder account number and your Social Security or federal taxpayer...

  • Page 36
    ... operator in our Colorado-Kansas Division, is one of 4,750 Atmos Energy employees dedicated to serving our customers. © 2008 Atmos Energy Corporation. All rights reserved. Atmos Energy® is a registered trademark, and Atmos Energy-The Spirit of Service® is a registered service mark of Atmos Energy...

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    A T M O S E N E R G Y P. O . B O X C O R P O R A T I O N 6 5 0 2 0 5 7 5 2 6 5 - 0 2 0 5 D A L L A S, T E X A S A T M O S E N E R G Y. C O M