Atmos Energy 2013 Annual Report Download - page 7

size of the company. Current CEO Kim
Cocklin is showing a great deal of cour-
age, too, by investing billions of dollars
in the company’s infrastructure through
strategic capital spending. Not to men-
tion, he’s already made tough choices to
divest operations when it made sense. It
takes courage to sell protable opera-
tions. But, it’s all based on your focus for
the future.
You became an industry maverick
in late 1985 when you launched the
first-ever hostile takeover of a utility.
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
was being deregulated. So, with support
from the board, we devised a plan to
expand and made a tender oer for
Trans Louisiana Gas Company, which
had recently been in play.
CEOs at other utilities and securities
analysts told me I was crazy, that the deal
would never close. But, in time, our
negotiations turned friendly, and we
completed the acquisition. Buying Trans
La increased our number of customers
by about 25 percent. We also added many
large industrial users to our customer
mix, and we diversied operations with
a dierent economy, dierent customer
demands and dierent state regulations.
Most important of all, we proved we
could grow by acquiring utility assets.
We could build on a bigger base, so that
we could buy an even larger property
the next time around. And, that’s what
we did, again and again.
What kind of investments is Atmos
Energy making today?
We’re investing in growth by putting
pipe in the ground rather than by
acquiring companies. Kim is focusing on
the company’s mission today, not what
it was when Bob was CEO or when I
was CEO. Kim is a brilliant thinker and
nancial strategist as well as a dedicated
people person. He’s transitioning the
company’s focus from acquiring assets
to investing in existing assets; he’s rein-
forcing the infrastructure to seek stable
earnings growth in the years ahead.
5
determination >>
ABOVE: “At the time of the spinoff from
Pioneer, we began thinking about a new
vision for the company. We needed to
change the direction to better reflect our
intent to eventually become a nationally
known utility company,” Charlie said. He
personally recruited the highly respected
former Dallas Cowboys Hall of Famer
Bob Lilly, who appeared in television and
newspaper advertising as the company’s
spokesperson.
LEFT: Creating a strong, separate
brand for the company was one of
Charlie’s goals. “We wanted a new
name that was distinctive and tied to
the energy industry,” Charlie said. Af-
ter considering more than 100 choic-
es, he announced the winner, Atmos
Energy. The corporation changed to its
present name on October 1, 1988.
“ Together, we’re
going to make this
company grow.”
—CHARLES K. VAUGHAN