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threeon30
Atmos Energy Corporation
2013 Summary Annual Report

Table of contents

  • Page 1
    Atmos Energy Corporation 2013 Summary Annual Report threeon30

  • Page 2
    30years: A solid foundation.

  • Page 3
    ...: In 1983, Charles K. Vaughan was named CEO of Energas Company, a newly independent natural gas utility serving West Texas. The company's former owner, Pioneer Corporation, had given the ï¬,edgling company few resources but had required it to pay its first dividend within 90 days after the spinoff...

  • Page 4
    ... served Atmos Energy well. In 1997, newly named chairman, president and chief executive officer Robert W. Best (left) began meeting monthly for dinner with previous chairman Charles K. Vaughan (center) to discuss business, make plans and enjoy each other's company. Current CEO Kim R. Cocklin (right...

  • Page 5
    ... to its customers, shareholders and employees. The vision of growth and independence of Charles Vaughan ...the creation of lasting assets and a remarkable culture by Bob Best ...and today's strategic and sustainable leadership under Kim Cocklin ...endow Atmos Energy with a solid foundation and...

  • Page 6
    ...: Establishing growth and independence 1 With grit and determination, Charles K. Vaughan bootstrapped Atmos Energy from a small West Texas natural gas utility into a nationally known gas distributor. His 56 years of service to the company have made him not only the company's guiding force, but...

  • Page 7
    ...television and newspaper advertising as the company's spokesperson. We had to do something, or the company wouldn't have survived. Our service territory was limited to West Texas, and it was not growing. What's more, the natural gas business in this country the company's mission today, not what it...

  • Page 8
    ... line and the latest quarterly financials. Kim, Bob and I share a common commitment to Atmos Energy's employees. That dedication to the employees has built a stronger base than anything else this company could ever have done. You can talk to a company meter reader you see on the street-and I've...

  • Page 9
    ...04 06 08 10 12 14 Charlie Vaughan, Bob Best and Kim Cocklin concur that only a financially healthy utility can serve its customers and communities well. The company's 30-year history of consecutively raising its annual cash dividend is one of the best indicators of this financial strength. Their...

  • Page 10
    ...bring Kim Cocklin to Atmos Energy. Kim and I have been friends for more than 30 years. He is an excellent leader who cares deeply about our employees. He is doing an exceptional job as CEO. How will Atmos Energy's culture continue to move the company forward? ABOVE: Charlie Vaughan greeted Bob Best...

  • Page 11
    ... the right chemistry and the right environment. Unlike most companies, Atmos Energy has had tremendous continuity with Charlie Vaughan, myself and now Kim Cocklin. Our genuine mutual respect, admiration and friendship show that we are like-minded about the value of creating a great culture. What...

  • Page 12
    ...T W. BEST ABOVE: Bob Best, one of the natural gas industry's leading advocates, testified in 2000 at a U.S. Senate hearing. As CEO of Atmos Energy, he distinguished himself by serving as chairman of the American Gas Association, American Gas Foundation and Southern Gas Association. Kim Cocklin has...

  • Page 13
    ... 15 years. With Kim in place as CEO and with the strong support of the board of directors and our enterprise leadership team, Atmos Energy's future is very bright indeed. LEFT: Gas City at the company's Charles K. Vaughan Center simulates a minicommunity with buildings, streets, pipelines and other...

  • Page 14
    ...be than in natural gas right now, especially if you're delivering gas to residential and commercial users." - KIM R . C OC KLIN KIM COCKLIN: Building shareholder value Kim R. Cocklin leads Atmos Energy today, continuing the continuity from Charles K. Vaughan and Robert W. Best. Witty and warm, he...

  • Page 15
    ... installed west of Fort Worth, Texas. It will help Atmos Pipeline-Texas supply the needs of local gas distribution utilities in the state. our adoption of a delivered-gas energy services model was part of the reason that Standard & Poor's upgraded Atmos Energy in late 2013. What does Atmos Energy...

  • Page 16
    ... Vaughan demonstrated a compressed natural gas fueling station at a press conference in Lubbock, Texas. Today, a natural-gas-fueled bus of the Lafayette, Louisiana, Transit System reï¬,ects the growing public approval of this idea to save money and reduce air pollution. Does Atmos Energy view...

  • Page 17
    ... Amarillo and Waco, Texas. In fiscal 2011, the company opened a new state-ofthe-art call center in Amarillo. In fiscal 2013, a team involving hundreds of employees completed installation of a new customer-service, billing and dispatch software system. Culture is going to trump strategy every time...

  • Page 18
    ...received approvals during fiscal 2013 for $122.3 million in annualized operating income increases as a result of rate filings and the effects of efficient rate mechanisms. We also recorded a net-of-tax gain of $5.3 million, or 6 cents per diluted share, Kim R. Cocklin President and Chief Executive...

  • Page 19
    ...-Texas (APT), our regulated intrastate transmission and storage unit, completed major pipeline expansions that added capacity and capability to serve local gas utility distribution systems, including our Mid-Tex Division. Of note was the installation of 69 miles of 24-inch Line WX west of Fort Worth...

  • Page 20
    ... work is under way across our system to replace aging cast-iron and bare-steel pipelines with the latest technology. business risk profile from an increasing contribution of earnings from our regulated operations and the focus of our nonregulated operations on its core delivered-gas business...

  • Page 21
    ... under the Atmos Energy® trademark in all states where it had operations, built the Charles K. Vaughan Center for training employees and put heightened emphasis on excellence in customer service. Bob also stressed community service. He has long been active in national and local civic, charitable...

  • Page 22
    ... provides selected employees with advanced training, so that they can serve as facilitators of the culture. By developing highly capable leaders, strengthening team results, solving enterprise problems and engaging employees to perform at their best, the program increases shareholder value. 20

  • Page 23
    ...Investors may request, without charge, our Annual Report on Form 10-K for the fiscal year ended September 30, 2013, 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 website at www.atmosenergy.com...

  • Page 24
    Atmos Energy at a Glance Year Ended September 30 2013 2012 Meters in service Residential Commercial Industrial Public authority and other Total meters Heating degree days... volumes (MMcf) Consolidated nonregulated delivered gas sales volumes (MMcf) Operating revenues (000s) 154,823 88,...

  • Page 25
    ...allowance for doubtful accounts of $20,624 in 2013 and $9,425 in 2012 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...

  • Page 26
    ... Year Ended September 30 - Dollars in thousands, except per share data 2013 2012 2011 Operating revenues Natural gas distribution segment Regulated transmission and storage segment Nonregulated segment Intersegment eliminations Purchased gas cost $ 2,399,493 268,900 1,598,711 (380,847) 3,886...

  • Page 27
    ... in thousands 2013 2012 2011 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities: $ 243,194 $ 216,717 $ 207,601 Asset impairments Gain on sale of discontinued operations Depreciation and amortization: Charged to...

  • Page 28
    ... the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Atmos Energy Corporation at September 30, 2013 and 2012, and the related consolidated statements of income, comprehensive income, shareholders' equity, and cash ï¬,ows for each of the...

  • Page 29
    ...,569 3,178,844 $ 6.95 $ .46 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 $ $ 9.7% 4,720 1,567 126 662 4.01...

  • Page 30
    Atmos Energy Officers Senior Management Team Regulated Divisions Kim R. Cocklin J. Kevin Akers President and Chief Executive Officer President, Kentucky/Mid-States Division Bret J. Eckert Richard A. Erskine Senior Vice President and Chief Financial Officer President, Atmos Pipeline-Texas...

  • Page 31
    ..., Atmos Energy Holdings, Inc. Vice President, Strategic Planning Kenneth M. Malter Vice President, Gas Supply and Services Shared Services Verlon R. Aston, Jr. John S. McDill Vice President, Governmental and Public Affairs Vice President, Pipeline Safety Clay C. Cash Edward Pace McDonald...

  • Page 32
    ...Nominating and Corporate Governance, Work Session/Annual Meeting Vice President for Community and Corporate Relations, UT Southwestern Medical Center Dallas, Texas Board member since 2008 Committees: Audit, Human Resources Richard K. Gordon Robert C. Grable Dr. Thomas C. Meredith Nancy K. Quinn...

  • Page 33
    ... Corporation's Annual Report on Form 10-K is available at no charge from Investor Relations, Atmos Energy Corporation, P.O. Box 650205, Dallas, Texas 75265-0205 or by calling 972-855-3729 between 8 a.m. and 5 p.m. Central time. Atmos Energy's Form 10-K also may be viewed on Atmos Energy's website...

  • Page 34
    ... accessing our Summary Annual Report and other company documents over the Internet may result in charges to you from your Internet service provider or telephone company. © 2013 Atmos Energy Corporation. All rights reserved. Atmos Energy® is a registered trademark of Atmos Energy Corporation. 32

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  • Page 36
    Atmos Energy Corporation P.O. Box 650205 Dallas, Texas 75265-0205 atmosenergy.com