Atmos Energy 2009 Annual Report Download

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Natural gas is the superhighway to America’s energy future.
Atmos Energy Corporation 2009 Summary Annual Report

Table of contents

  • Page 1
    Atmos Energy Corporation 2009 Summary Annual Report Natural gas is the superhighway to America's energy future.

  • Page 2
    It's the integral fuel source that underpins the best energy options for America today.

  • Page 3
    Atmos Energy is helping pave the way.

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    While

  • Page 5
    ... and build nuclear power plants that communities will feel comfortable with, and to encourage the role of natural gas in the future. Robert W. Best, chairman and chief executive officer, (right) and Kim R. Cocklin, president and chief operating officer ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 3

  • Page 6
    ... be highly valued for its naturally clean characteristics. 7.9 Tcf The United States consumed about 23.2 trillion cubic feet (Tcf) of natural gas in 2008, providing 24 percent of the country's total energy supply. Source: U.S. Energy Information Administration 4 | ATMOS ENERGY 2009 SUMMARY ANNUAL...

  • Page 7
    ... fuel and that, when you ï¬,ip a light switch on, more than half of the electricity we use is generated by burning coal. Add to that the carbon emissions required to mine coal and transport it, and you can imagine coal has a pretty large carbon footprint. ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 5

  • Page 8
    .... Atmos Energy dedicates a significant amount of capital annually to maintaining our infrastructure. We monitor our pipelines 24 hours a day, 7 days a week, 365 days a year and we have highly trained crews who can quickly solve any problem. We have an excellent safety record. 6 | ATMOS ENERGY 2009...

  • Page 9

  • Page 10
    ...to understand the role different forms of energy can play. Some groups have done a marvelous job of advertising for windmills and wind energy, solar energy and other renewables. Yet, wind and solar today supply only about 2 percent of the energy we use. Natural gas, on the other hand, supplies about...

  • Page 11
    ...it's easy to set up central refueling stations and begin to make the change. Right here in Dallas, DART (Dallas Area Rapid Transit Authority) recently changed a decision to buy new diesel buses in favor of 600 natural gas buses. Every bus, large truck and large utility vehicle powered by natural gas...

  • Page 12
    ... primary ingredient of natural gas, is being recovered Elect ric 10.1 home tons CO today as a sustainable resource from many landfills. At the Carter Valley Landfill in Church Hill, Tennessee, Manufactured Methane Corporation delivers pipeline-quality methane gas to Atmos Energy Marketing. AEM is...

  • Page 13
    ...and distributing electricity reaches customers. That's an important point for consumers to remember when they choose new appliances. It's also critical for policymakers to consider when setting energy standards and regulations in a carbon-constrained economy. ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT...

  • Page 14
    ... Zero Energy House, a 2009 demonstration project for the U.S. Department of Energy's Building America program, reï¬,ects dual goals of saving money on energy bills and reducing adverse effects on the environment. Builder Chris Miles, Atmos Energy's manager of energy-efficiency programs Randy...

  • Page 15
    ... water heater, providing a constant supply of hot water and using about half the total energy of an electric water heater. The average American home uses about one-third less natural gas today than in 1980. This decline, even as demand for energy has risen, is the result of conservation programs...

  • Page 16
    ... the bills our customers receive, so that their heating costs are much more predictable and stable. It's a little bit ironic that, even though we're the largest all-natural-gas distributor in the United States, we're really not a "gas" company at all. We're a service company. 14 | ATMOS ENERGY 2009...

  • Page 17
    ...About three-fourths of a residential customer's natural gas bill pays for fuel, which we charge at our cost. Atmos Energy earns its income from delivering natural gas at rates set by state and local regulators. Source: Atmos Energy Corporation, 2008 data ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 15

  • Page 18
    To Our Shareholders For the ninth consecutive year in fiscal 2009, we achieved our stated goal of growing Atmos Energy's earnings per share by 4 percent to 6 percent, on average, despite the enormous economic challenges faced by our country, our customers and our company. Superhighway to the ...

  • Page 19
    ... and competitive service. Today more than 93 percent of our natural gas distribution customers are charged rates that are weathernormalized to reduce price volatility in their gas bills. In 86 percent of our markets, we are able to adjust rates annually to reï¬,ect changes in our costs, revenues and...

  • Page 20
    ... debt markets until 2011. At September 30, 2009, we had more than $1 billion of liquidity available. Major capital projects in 2010 include constructing a new information technology center and a new customer service and training facility as well as breaking ground for a new customer contact center...

  • Page 21
    ...Energy's manager of public affairs in San Angelo, Texas, appears on the evening news to talk about using natural gas safely. Providing safe and reliable service is Atmos Energy's highest priority. The company uses many ways to communicate with the public about what to do if they detect a natural gas...

  • Page 22
    ... percent of the natural gas used in the United States comes from North America. Natural gas makes wind and solar energy viable and provides a foundation for them to grow. Our country has more than a 100-year supply of natural gas. Natural gas is an affordable and readily available long-term solution...

  • Page 23
    ... may request, without charge, our Annual Report on Form 10-K for the fiscal year ended September 30, 2009, by calling Investor Relations at 972-855-3729 between 8 a.m. 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...

  • Page 24
    ... September 30 2009 2008 Meters in service Residential Commercial Industrial Public authority and other Total meters Heating degree days* 2,901,577 265,843 2,193 9,231 3,178,844 2,911,475 268,845 2,241 9,218 3,191,779 Actual (weighted average) Percent of normal Natural gas distribution sales...

  • Page 25
    ... and cash equivalents Accounts receivable, less allowance for doubtful accounts of $11,478 in 2009 and $15,301 in 2008 Gas stored underground Other current assets Total current assets Goodwill and intangible assets Deferred charges and other assets Common stock, no par value (stated at $.005 per...

  • Page 26
    ...Dollars in thousands, except per share data 2009 2008 2007 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 $ 2,984,765 209,658 2,336,847 41...

  • Page 27
    ...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...,913 (159,314) (15,090) 75,815 60,725 ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 25

  • Page 28
    ... and Shareholders of Atmos Energy Corporation We have audited, 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, 2009 and 2008, and the related consolidated statements...

  • Page 29
    ...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...are adjusted for service areas with weather-normalized operations. ATMOS ENERGY 2009 SUMMARY ANNUAL REPORT | 27

  • Page 30
    Atmos Energy Officers 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 Fred ...

  • Page 31
    ...) Mark S. Bergeron President, Atmos Energy Holdings, Inc. Susan K. Giles Vice President, Investor Relations Ronald W. McDowell Vice President, New Business Ventures Richard J. Gius Vice President and Chief Information Officer Conrad E. Gruber Vice President, Strategic Planning Shared Services...

  • Page 32
    ...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 Richard W. Cardin Retired partner of Arthur Andersen LLP Nashville, Tennessee Board member...

  • Page 33
    ... Public Accounting Firm The 2010 Annual Meeting of Shareholders will be held in the Pavilion Ballroom at the Belo Mansion, 2101 Ross Avenue, Dallas, Texas 75201 on Wednesday, February 3, 2010, at 11 a.m. Central time. Direct Stock Purchase Plan Atmos Energy Corporation has a Direct Stock Purchase...

  • Page 34
    ... budget and ahead of schedule. The 24-inch transmission line will significantly increase the capacity of Atmos Pipeline-Texas to serve natural gas distribution utilities and electric power plants in the center part of the state. Back cover: Atmos Energy project manager Kimberly Winn led the team...

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    Atmos Energy Corporation P.O. Box 650205 Dallas, Texas 75265-0205 atmosenergy.com