AGL Resources Reports Quarterly Earnings.

Business Editors

ATLANTA--(BUSINESS WIRE)--April 30, 2002

Exceeds Analyst Expectations

AGL Resources Inc. (NYSE: ATG) today reported earnings per basic share and core earnings per share of $0.90 ($0.89 per diluted share) for the quarter ended March 31, 2002.

Earnings per share for the same quarter last year were $0.96 (basic and diluted), or core earnings per share of $0.83, excluding a one-time gain for the sale of Utilipro, Inc., the company's former customer care subsidiary. The 8 percent increase in core earnings per share is attributed in large part to the increased contribution from the company's investment in SouthStar Energy Services. Core earnings per share is a non-GAAP calculation that excludes one-time items.

"We navigated the waters of volatile energy prices and uncertain public policy in this past quarter," said Paula G. Rosput, chairman and chief executive officer of AGL Resources. "We've brought the ship safely to shore by enabling the execution of the fundamentals in all of our operating units."

Net income for the quarter was $50.1 million, compared with net income of $52.3 million for the same period last year. Excluding the gain on the sale of Utilipro, net income for the quarter ended March 31, 2001 would have been $45.2 million.

DISTRIBUTION OPERATIONS

The distribution operations segment reported earnings before interest and taxes (EBIT) of $71.5 million, a $4.3 million increase over the same quarter last year. Although Virginia Natural Gas experienced warmer than normal weather in its service territory again this quarter, the resulting decline in operating margin was offset by decreased operating costs. The increase in EBIT is attributed to increased revenues from our pipeline replacement program in Georgia and increased carrying charges to marketers for gas stored underground, maintained by Atlanta Gas Light Company (AGLC) on their behalf, as a direct result of an increase in the inventory balances.

WHOLESALE SERVICES

Sequent Energy Management contributed $5.8 million in EBIT for the quarter, reflecting a decrease of $4.2 million in contributions for the same quarter year over year. Sequent's contribution for 2002 is derived primarily from the results of its asset management operations for Virginia Natural Gas, Chattanooga Gas Company and AGLC. Sequent's revenues were significantly higher than last year, reflecting increased momentum in creating a more liquid trading market between producers and consumers in the Southeast. Despite the increased revenues, margins were lower for the quarter on a comparative basis, primarily because of higher margins in the unusually volatile natural gas markets during the same quarter last year.

ENERGY INVESTMENTS

AGL Resources' energy investments segment realized EBIT of $24.6 million, a $5.7 million decrease from last year's quarterly performance, which contained the $10.9 million pre-tax gain on the sale of Utilipro. Excluding the gain on the sale of Utilipro, the energy investments segment realized a $5.2 million increase for the quarter year over year. The $5.2 million increase is a result of the improved earnings of the company's investment in its retail marketing company, SouthStar Energy Services LLC.

EARNINGS OUTLOOK

On April 29, 2002, AGLC announced the results of the earnings review initiated by the Georgia Public Service Commission. The order, effective May 1, 2002, will reduce AGLC customers' base rates by $10 million annually. The net impact of this order to AGLC is a reduction to cash flow from operations, net of income taxes, of approximately $6.5 million on an annual basis. This reduction to operating revenue will be largely offset by a reduction in depreciation expense. The projected effect of the order on AGL Resources' 2002 earnings is a reduction of approximately $0.02 per share. Despite this projected impact, AGL Resources reaffirms its earnings estimate for the calendar year 2002 of $1.65 to $1.70 earnings per share.

The order does not include any effects of the recently passed Georgia legislation entitled the "Natural Gas Consumers' Relief Act." The company believes that any additional costs incurred as a result of implementing the legislation will be recoverable.

Earnings Conference Call Webcast: The AGL Resources First Quarter Ended March 31, 2002 Earnings Conference Call, scheduled for April 30, 2002 at 11 a.m. (EST), can be accessed via the AGL Resources website at www.aglresources.com. The call will address the company's financial results for the three-month period ended March 31, 2002, as well as the results of the earnings review conducted by the Georgia Public Service Commission. The call will be archived on the website through the close of business on Monday, May 6, 2002.

AGL Resources Inc. (NYSE: ATG) is an Atlanta-based energy services holding company. Nearly 2 million natural gas customers are served through subsidiaries Atlanta Gas Light Company, Virginia Natural Gas and Chattanooga Gas Company. Houston-based subsidiary Sequent Energy Management provides asset management services, including the wholesale trading, marketing, gathering and transportation of natural gas. As a member of the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. AGL Networks, the company's telecommunications subsidiary, owns and operates a fiber optic network in Atlanta. For more information, visit www.aglresources.com.

This press release contains forward-looking statements. AGL Resources wishes to caution readers that the assumptions, which form the basis for the forward-looking statements, include many factors that are beyond AGL Resources' ability to control or estimate precisely. Those factors include, but are not limited to, the following: industrial, commercial, and residential growth in the service territories of AGL Resources Inc. and its subsidiaries; changes in price and demand for natural gas and related products; impact of changes in state and federal legislation and regulation on the gas and electric industries and on AGL Resources, including the impact of the performance based rate plan issued by the Georgia Public Service Commission in connection with the review of Atlanta Gas Light Company's rates; effects and uncertainties of deregulation and competition, particularly in markets where prices and providers historically have been regulated, unknown risks related to nonregulated businesses, and unknown issues such as the stability of certificated marketers; effect of the Natural Gas Consumers' Relief Act (HB 1568); concentration of credit risk in certificated marketers; industry consolidation; impact of acquisitions and divestitures; changes in accounting policies and practices issued periodically by accounting standard-setting bodies; interest rate fluctuations, financial market conditions, and general economic conditions; uncertainties about environmental issues and the related impact of such issues; impact of changes in weather upon the temperature sensitive portions of the business; and other risks described in our documents on file with the Securities and Exchange Commission.

                  AGL RESOURCES INC. AND SUBSIDIARIES
              CONDENSED STATEMENTS OF CONSOLIDATED INCOME
                      FOR THE THREE MONTHS ENDED
                        MARCH 31, 2002 AND 2001
                              (UNAUDITED)

                                                        Three Months
                                                        ------------
In millions, except per share amounts                2002         2001
----------------------------------------------------------------------
Operating revenues                                 $492.9       $350.6
Cost of sales                                       320.7        169.6
----------------------------------------------------------------------
Operating margin                                    172.2        181.0
Operating expenses                                  100.8        106.8
----------------------------------------------------------------------
Operating income                                     71.4         74.2
Other income                                         28.9         32.6
----------------------------------------------------------------------
Earnings before interest and taxes (EBIT)           100.3        106.8
Interest expense and preferred stock dividends       22.7         25.5
----------------------------------------------------------------------
Earnings before income taxes                         77.6         81.3
----------------------------------------------------------------------
Income taxes                                         27.5         29.0
----------------------------------------------------------------------
Net income                                          $50.1        $52.3
----------------------------------------------------------------------
Earnings per common share
  Basic                                             $0.90        $0.96
  Diluted                                           $0.89        $0.96
Weighted-average number of common shares outstanding
  Basic                                              55.7         54.3
  Diluted                                            56.0         54.6
Cash dividends paid per common share                $0.27        $0.27


                  AGL RESOURCES INC. AND SUBSIDIARIES
                       EBIT SCHEDULE BY SEGMENT
                  FOR THE THREE MONTHS ENDED MARCH 31
           (Dollars in Millions, except per share amounts)
                              (UNAUDITED)

                                              2002   2001   Fav/(Unfav)
                                              ----   ----   ----------
Distribution Operations                      $71.5  $67.2      $4.3
Wholesale Services                             5.8   10.0      (4.2)
Energy Investments                            24.6   30.3      (5.7)
Corporate                                     (1.6)  (0.7)     (0.9)
                                             ------ ------   ---------
 Consolidated EBIT                           100.3  106.8      (6.5)
                                             ------ ------   ---------
Interest Expense                              22.7   25.5       2.8
Income Taxes                                  27.5   29.0       1.5
                                             ------ ------   ---------
 Net Income                                  $50.1  $52.3     ($2.2)
                                             ====== ======   =========
Earnings per common share
 Basic                                       $0.90  $0.96    ($0.06)
                                             ====== ======   =========
 Diluted                                     $0.89  $0.96    ($0.07)
                                             ====== ======   =========
Throughput (millions of dekatherms)
 Georgia                                      91.3   95.8      (4.5)
 Virginia                                     14.0   13.9       0.1
 Tennessee                                     6.2    6.7      (0.5)

Degree Days (Actual)
 Georgia                                     1,426  1,540      (114)
 Virginia                                    1,555  1,929      (374)
 Tennessee                                   1,587  1,818      (231)