Atmos Energy Announces Public Offering of 5,500,000 Shares of Common Stock.

DALLAS -- Atmos Energy Corporation (NYSE: ATO) said today that it plans to make a public offering of 5,500,000 shares of its common stock. The offering will be made under the company's effective registration statement on Form S-3 filed today with the Securities and Exchange Commission. Lehman Brothers and Goldman, Sachs & Co. will serve as the joint book-running managers for the offering with Banc of America Securities LLC, JP Morgan, Merrill Lynch & Co., SunTrust Robinson Humphrey and Wachovia Securities serving as co-managers. The underwriters will be granted an option to purchase up to an additional 825,000 shares. The company will offer all of the shares.

Atmos Energy intends to use the net proceeds of this offering to repay existing indebtedness under its commercial paper program.

The offering of the shares of common stock may be made only by means of a prospectus supplement and the accompanying prospectus. A copy of the preliminary prospectus supplement and the accompanying prospectus may be obtained from Lehman Brothers or Goldman, Sachs & Co. at the following:

[TABLE OMITTED]

This news release does not constitute an offer to sell any securities under the offering.

As a result of this public offering, Atmos Energy will not conduct the previously scheduled analyst conferences in New York on December 6, 2006, or Boston on December 8, 2006.