Atmos Energy 2010 Annual Report Download

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Atmos Energy Corporation 2010 Summary Annual Report
Our business
is all about safety.

Table of contents

  • Page 1
    Atmos Energy Corporation 2010 Summary Annual Report Our business is all about safety.

  • Page 2
    To better serve our customers and to ensure safe and reliable service, we designed and built the most advanced technical training facility in the natural gas industry. It was just one of the many things we did to keep natural gas America's safest, most reliable energy source.

  • Page 3
    ...appliances and detect carbon monoxide. KEEPING TH E GAS ON: Our technicians learn to safely bypass our gas meters to do regular and special maintenance without shutting off the gas and inconveniencing the customer. 1 Gas City is part of the company's new Charles K. Vaughan Center in Plano, Texas...

  • Page 4
    ... executive officer (right), stand in front of our Charles K. Vaughan Center in Plano, Texas. Completed in 2010, the Vaughan Center is the premier technical training facility and customer service center in the natural gas utility industry. It reï¬,ects Atmos Energy's commitment to ensuring safety...

  • Page 5
    ..., the Vaughan Center is one of the natural gas distribution industry's finest facilities for training and development. To enhance classroom instruction, the center includes a gas flow-control laboratory and a simulated community, named Gas City, where our service technicians apply their training to...

  • Page 6
    ... million in fiscal 2010. Our Mid-Tex Division, which serves the DallasFort Worth Metroplex and more than 500 other Texas municipalities, reached a settlement with two coalitions of cities and the City of Dallas to recover our investment for a two-year steel service line replacement program. In this...

  • Page 7
    ... operations, the largest being for the Mid-Tex Division's steel service line replacement program. We also will be investing in two long-term improvements to our customer service: a new state-of-the-art customer call center in Amarillo to be completed in 2011 and a multi-year project to modernize...

  • Page 8
    1 6 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT

  • Page 9
    ...legacy service lines with new, modern pipe. And, in every community, we inspect and monitor our pipelines and distribution lines to ensure a reliable system. 2 1 Polyethylene pipe is being used in many areas to replace our older steel service lines. In just the Mid-Tex Division alone, Atmos Energy...

  • Page 10
    ... accurate chemical instruments. 6 Atmos Energy chemists calibrate measuring equipment to continuously monitor the chemical components and Btu value of our product, ensuring that our natural gas meets the exact needs for home and industrial uses alike. 8 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT

  • Page 11
    ... the lines clean. 9 We conduct periodic pipeline-integrity inspections, using a variety of structural, metallurgical and process tests, to prevent problems and safeguard the public. 9 Since 2004, Atmos Energy has spent more than $1 billion to modernize its system. ATMOS ENERGY 2010 SUMMARY ANNUAL...

  • Page 12
    ... communicating with our SCADA control system regarding gas ï¬,ow and system availability. 3 The Vaughan Center also houses our new Plano, Texas, service center, where technicians are dispatched to serve customers in a number of North Texas communities. 3 10 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT

  • Page 13
    1

  • Page 14
    .... 6 New technicians and veterans alike train at the Vaughan Center to be certified and recertified on a regular basis. Virtually our entire technical workforce must be recertified at least every four years to meet federal and state operator qualification requirements. 5 12 ATMOS ENERGY 2010...

  • Page 15
    ..., operate and maintain our field data systems. 8 The entire Vaughan Center, including Gas City, the Flow Lab and the Plano service center, is registered to be LEED certified. Standing for Leadership in Energy and Environmental Design, this green-building certification program encourages using...

  • Page 16
    1 14 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT

  • Page 17
    ...manager of public affairs in Colorado, and Chief Mark Quick of the Durango Fire & Rescue Authority share the same number-one priority of keeping the community safe. Atmos Energy maintains close relationships with first-responders in our communities to keep them informed about our natural gas system...

  • Page 18
    ... that can sense minute gas particles of methane. Our call centers are available at all hours, every day, to dispatch technicians to resolve natural gas issues at homes and businesses. 3 Atmos Energy's "sniffer" trucks patrol streets in cities and towns and along rights of way. These vehicles have...

  • Page 19
    1 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 17

  • Page 20
    ..., compressor stations, city gates and other major facilities for operational integrity and community safety. 5 To patrol our pipelines buried underground, airplanes ï¬,y our rights of way using infrared technologies that can detect leaks from in the air. 5 18 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT

  • Page 21
    ... its many industrial, municipal and power-generation customers. 9 Keeping our customers warm and safe in the winter means keeping natural gas meters clear of snow and debris and the rest of our system in excellent repair to endure frigid temperatures. 9 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 19

  • Page 22
    1 20 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT

  • Page 23
    ... supporting gas safety awareness helps build stronger communities and provides our customers with the safest and most reliable energy available. 1 Jim Bartling, left, Atmos Energy's manager of public affairs in Kansas, enjoys the fun at the annual open house of the City of Olathe Fire Department...

  • Page 24
    ... out for household hazards. 6 Mayor John Shaddinger Jr. of Westwego, Louisiana, discusses safety needs in his community with Atmos Energy employees as part of our ongoing program to communicate with public officials about pipeline safety awareness. 6 22 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT

  • Page 25
    ... their homes or yards. 8 Ray Granado, a manager of public affairs in the Dallas-Fort Worth area, is a big hit in the classroom when he brings our "scratch and sniff" cards so that kids learn what natural gas odorant smells like. 9 Atmos Energy displays the nationwide Call 811 logo on all its service...

  • Page 26

  • Page 27
    ... investor information is presented on pages 35 and 36 of this report. In the Flow Lab of the Charles K. Vaughan Center, Atmos Energy technicians work with some of the most advanced natural gas metering technology available in the industry today. ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 25

  • Page 28
    ... 1,832,912 32,775 4,969,080 Gross plant (000s) Net plant (000s) Miles of pipe Employees * Heating degree days are adjusted for service areas with weather-normalized operations. $ $ 6,542,318 4,793,075 77,157 4,913 $ $ 6,086,618 4,439,103 76,942 4,891 26 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT

  • Page 29
    ... for doubtful accounts of $12,701 in 2010 and $11,478 in 2009 Gas stored underground Other current assets Total current assets Deferred charges and other assets $ $ Common stock, no par value (stated at $.005 per share); 200,000,000 shares authorized; issued and outstanding: 2010 - 90,164...

  • Page 30
    ... 89,941 Natural gas distribution segment Regulated transmission and storage segment Natural gas marketing segment Pipeline, storage and...Net income Per share data Basic net income per share Diluted net income per share $ $ $ $ $ $ $ $ $ Basic Diluted 28 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT

  • Page 31
    ...2008 Net income Adjustments to reconcile net income to net cash $ 205,839 $ 190,978 $ 180,331 Asset impairments Depreciation and amortization: Charged to depreciation and amortization Charged to other accounts Deferred income taxes Stock-based compensation Debt financing costs Other Changes...

  • Page 32
    ... 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, 2010 and 2009, and the related consolidated statements...

  • Page 33
    ...shareholders' equity Number of employees Net gas distribution plant per meter Gas distribution operation and maintenance expense per meter Meters per employee-gas...55 * Heating degree days are adjusted for service areas with weather-normalized operations. ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 31

  • Page 34
    ... General Counsel Gary W. Gregory President, West Texas Division Michael E. Haefner Senior Vice President, Human Resources President, Louisiana Division John A. Paris President, Mid-Tex Division Gary L. Schlessman President, Colorado-Kansas Division 32 ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT

  • Page 35
    ..., Governmental and Public Affairs Corporate Secretary Christopher T. Forsythe Vice President and Controller Kenneth M. Malter Vice President, Gas Supply and Services Susan K. Giles Vice President, Investor Relations Vice President, Customer Service ATMOS ENERGY 2010 SUMMARY ANNUAL REPORT 33

  • Page 36
    ... Dallas, Texas Board member since 1985 Committees: Nominating and Corporate Governance (Chairman), Executive, Human Resources, Work Session/ Annual Meeting Nancy K. Quinn Principal, Hanover Capital, LLC East Hampton, New York Board member since 2004 Committees: Audit, Nominating and Corporate...

  • Page 37
    ...The 2011 Annual Meeting of Shareholders will be held in the Pavilion Ballroom at the Belo Mansion, 2101 Ross Avenue, Dallas, Texas 75201 on Wednesday, February 9, 2011, at 9:30 a.m. Central time. Direct Stock Purchase Plan Atmos Energy Corporation has a Direct Stock Purchase Plan that is available...

  • Page 38
    ... employees as well as the public. Front cover: In Gas City at Atmos Energy's new Charles K. Vaughan Center in Plano, Texas, service technicians learn and practice skills with the coaching and guidance of highly expert instructors. © 2010 Atmos Energy Corporation. All rights reserved. Atmos Energy...

  • Page 39
    Atmos Energy Corporation P.O. Box 650205 Dallas, Texas 75265-0205 atmosenergy.com