Atmos Energy Corporation Reports Results For Fiscal 2006 Third Quarter and Nine Months; Reaffirms 2006 Guidance.DALLAS Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. -- Atmos Energy Atmos Energy (NYSE: ATO), headquartered in Dallas, Texas, is the largest distributor of natural gas in the United States, serving 3.1 million customers nationwide. Atmos acquired TXU's natural gas and pipeline holdings in 2004. Corporation (NYSE NYSE See: New York Stock Exchange :ATO ATO Australian Taxation Office ATO Ambito Territoriale Ottimale (Italy) ATO Alpha Tau Omega ATO Air Traffic Organization (FAA) ATO Arab Towns Organization ATO Air Tasking Order ATO Assemble To Order ) today reported consolidated results for its fiscal third quarter and nine months ended June June: see month. 30, 2006. --For the fiscal 2006 third quarter, net loss was $18.1 million, or $0.22 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with net income of $4.5 million, or $0.06 per diluted share in the prior-year quarter. --Natural gas marketing gross profit for the three-month period ended June 30, 2006, was negatively impacted by unrealized mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. losses of $21.3 million compared with unrealized mark-to-market losses of $0.2 million for the same period last year. These unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. are temporary and will reverse in future periods. --Utility gross profit for the fiscal 2006 third quarter was negatively affected by approximately $15.3 million primarily due to weather that was 31 percent warmer than normal, which occurred in patterns that discouraged dis·cour·age tr.v. dis·cour·aged, dis·cour·ag·ing, dis·cour·ag·es 1. To deprive of confidence, hope, or spirit. 2. To hamper by discouraging; deter. 3. consumption and encouraged continued customer conservation. Warmer-than-normal weather in the Mid-Tex Division negatively impacted gross profit in the current quarter by about $3.9 million. Atmos Energy's budgeted earnings for the full 2006 fiscal year reflect 30-year normal weather. --In May 2006, the Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. Division was authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: to implement rates with a Weather Normalization In relational database management, a process that breaks down data into record groups for efficient processing. There are six stages. By the third stage (third normal form), data are identified only by the key field in their record. Adjustment (WNA WNA World Nuclear Association (UK) WNA Wisconsin Nurses Association WNA Weather Normalization Adjustment WNA Wireless Network Access WNA Wireless Network Administration WNA Wednesday Night Acro WNA White Noise Acceleration ) beginning with the 2006-2007 winter heating season. In July July: see month. 2006, the Mid-Tex Division received approval to implement WNA, effective October October: see month. 1, 2006. During fiscal 2006, significantly warmer-than-normal weather in the Louisiana and Mid-Tex Divisions accounted for approximately $32.6 million of the reduction in utility gross profit. For the nine months ended June 30, 2006, net income was $141.7 million, or $1.75 per diluted share, compared with net income of $152.6 million, or $1.94 per diluted share for the same period last year. Weighted average shares outstanding increased 3 percent from the prior-year period. The nonutility businesses contributed $57.6 million of net income, or $0.71 per diluted share for the current nine-month period. Gross profit at the utility for the nine months ended June 30, 2006, was adversely impacted by approximately $47.5 million due to weather that was 13 percent warmer than normal, as adjusted for jurisdictions with weather normalized rates. For the nine months of fiscal 2006, weather in the Mid-Tex Division was 28 percent warmer than normal, which accounted for approximately $26.3 million of the reduction in utility gross profit. "Our commitment to utility rate redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re is paying off," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. W. Best, chairman, president and chief executive officer of Atmos Energy Corporation. "With our recent rate successes in the Louisiana and Mid-Tex Divisions, we have successfully decoupled over 90 percent of our utility margins from weather for the upcoming winter. I am confident we are now on the road to realizing the full potential of our utility franchise." Best continued: "Because of the seasonal nature of the company's utility operations, the third quarter of the fiscal year is typically a loss quarter. In addition, we also experienced sizeable unrealized losses in our nonutility marketing business, largely a result of a volatile gas price environment and increased gas in storage. The good news is that the unrealized mark-to-market losses are only temporary and will reverse over time." Results for the 2006 Third Quarter Ended June 30, 2006 Consolidated gross profit for the three months ended June 30, 2006, was $204.5 million, compared with $221.3 million for the three months ended June 30, 2005. The $16.8 million decrease in consolidated gross profit reflects both lower utility and natural gas marketing results. Utility gross profit decreased $5.3 million to $169.9 million in the third quarter, compared with $175.2 million in the same period last year, before intersegment eliminations. Consolidated utility throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. decreased to 62.3 billion cubic feet (Bcf) for the three months ended June 30, 2006, compared with 72.7 Bcf for the prior-year quarter. Approximately $16.2 million of the reduction in utility gross profit and related throughput reflects the adverse impact of weather, as adjusted for jurisdictions with weather-normalized rates, that was 29 percent warmer than the prior-year quarter and continued customer conservation. Additionally, gross profit decreased due to the adverse impact of Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. . These decreases were partially offset by the
recognition of $6.2 million of utility margin in May 2006, that had been
previously deferred in Louisiana and approximately $3.9 million of
increased margins arising from rate adjustments under the Texas Gas
Reliability Infrastructure Program (GRIP).Natural gas marketing gross profit reflected a loss of $0.9 million for the three months ended June 30, 2006, compared with income of $10.4 million in the same quarter last year, before intersegment eliminations. The $11.3 million reduction primarily reflects an unfavorable unrealized margin variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality compared with the prior-year quarter. For the fiscal 2006 third quarter, the storage and marketing margin included a negative $21.3 million mark-to-market impact, which resulted from the change in value of the physical/financial portfolio from March 31, 2006. For the third quarter of fiscal 2005, the storage and marketing margin of $10.4 million included a negative $0.2 million mark-to-market impact, which resulted from the change in value of the physical/financial portfolio from March 31, 2005. As of June 30, 2006, the physical storage position was 19.0 Bcf with equal and offsetting financial hedges, compared to a physical storage position of 14.1 Bcf at June 30, 2005. Consolidated natural gas marketing sales volumes were 66.5 Bcf for the three months ended June 30, 2006, compared with 52.7 Bcf in the prior-year quarter. Consolidated operation and maintenance expense for the three months ended June 30, 2006, was $104.4 million, compared with $91.4 million for the three months ended June 30, 2005. Excluding the provision for doubtful accounts, operation and maintenance expense for the three months ended June 30, 2006, increased $14.8 million compared with the prior-year quarter, primarily due to higher employee costs associated with increased headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. and benefit costs. Partially offsetting these increases was the reversal of a $2.0 million accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. recorded during the first quarter of fiscal 2006 for potential Hurricane Katrina losses, reflecting an improved outlook to fully recover losses sustained from the storm. The provision for doubtful accounts decreased from $4.3 million for the three months ended June 30, 2005, to $2.5 million for the three months ended June 30, 2006. The $1.8 million decrease primarily reflects lower revenues than the prior-year quarter coupled with strong customer account collection efforts. In the utility segment, the average cost of natural gas for the three months ended June 30, 2006, was $7.11 per thousand cubic feet (Mcf), compared with $7.43 per Mcf for the three months ended June 30, 2005. Taxes, other than income taxes, for the three months ended June 30, 2006, were $48.5 million, compared with $46.9 million for the prior-year quarter. The $1.6 million increase was primarily related to franchise fees and state gross receipts taxes A gross receipts tax, sometimes referred to as a gross excise tax, is a tax on the total gross revenues of a company, regardless of their source. It is similar to a sales tax, but it is levied on the seller of goods or services rather than the consumer. , both of which are calculated as a percentage of revenue and are paid by utility customers as a component of their monthly bills. Although these amounts are included as a component of revenue in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the company's tariffs This is a list of tariffs and trade legislation:
adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. or unfavorably affect net income on a temporary basis. However, there is no permanent effect on net income. Interest charges for the three months ended June 30, 2006, were $35.9 million, compared with $33.7 million for the prior-year quarter. The $2.2 million increase was primarily due to higher average outstanding short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. balances used to fund working capital needs, coupled with an increase in the three-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). rate. These increases were partially offset by $1.2 million in interest savings arising from the early payoff of $72.5 million of the company's First Mortgage Bonds in June 2005. Results for the Nine Months Ended June 30, 2006 Consolidated gross profit for the nine months ended June 30, 2006, was $956.5 million, compared with $919.3 million for the nine months ended June 30, 2005. Utility gross profit increased to $765.8 million for the nine months ended June 30, 2006, compared with $755.6 million in the same period last year, before intersegment eliminations. Consolidated utility throughput decreased to 330.9 Bcf for the nine months ended June 30, 2006, compared with 351.7 Bcf for the prior-year period. The increase in utility gross profit primarily reflects higher franchise fees and state gross receipts taxes year over year, which are paid by utility customers and have no permanent effect on net income. Additionally, gross profit increased by approximately $8.3 million due to rate adjustments resulting from the company's 2004 and 2005 GRIP filings. Finally, gross profit increased by about $6.2 million due to the recognition of utility margin that had been previously deferred in Louisiana. These increases were partially offset by a $4.8 million decrease due to the negative impact of Hurricane Katrina on the company's operations. Additionally, weather, as adjusted for jurisdictions with weather-normalized operations, was three percent warmer than the prior-year period, which resulted in a decrease in consolidated utility throughput and a corresponding $22.1 million decrease in utility gross profit, primarily in the Mid-Tex division where weather was 11 percent warmer than the prior-year period. Natural gas marketing gross profit was $69.4 million for the nine months ended June 30, 2006, compared with $48.4 million in the same period last year, before intersegment eliminations. The $21.0 million improvement reflects Atmos Energy Marketing's ability to capture higher margins in a volatile natural gas market in the storage and marketing operations, partially offset by an unfavorable movement in unrealized margin. For the nine months ended June 30, 2006, the storage and marketing margin of $69.4 million included a negative $38.5 million mark-to-market impact, which resulted from the change in value of the physical/financial portfolio from September 30, 2005. For the nine months ended June 30, 2005, the storage and marketing margin of $48.4 million included a negative $10.3 million mark-to-market impact, which resulted from the change in value of the physical/financial portfolio from September 30, 2004. Consolidated natural gas marketing sales volumes were 207.4 Bcf for the nine months ended June 30, 2006, compared with 179.7 Bcf in the prior-year period. Pipeline and storage gross profit was $120.5 million for the nine months ended June 30, 2006, compared with $113.8 million for the nine months ended June 30, 2005. The $6.7 million increase was primarily attributable to higher transportation and related services margins coupled with increased throughput on the Atmos Pipeline-Texas system and Atmos Pipeline & Storage, LLC's ability to capture more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. arbitrage arbitrage: see foreign exchange. arbitrage Business operation involving the purchase of foreign currency, gold, financial securities, or commodities in one market and their almost simultaneous sale in another market, in order to profit from price spreads in its asset management contracts. These increases were partially offset by the absence of inventory sales of $3.0 million realized in the prior-year period. Consolidated operation and maintenance expense for the nine months ended June 30, 2006, was $325.3 million compared with $305.6 million for the nine months ended June 30, 2005. Excluding the provision for doubtful accounts, operation and maintenance expense for the nine months ended June 30, 2006, increased $15.7 million compared with the same period in 2005. The increase was primarily attributable to a net increase in administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. year-over-year, and higher line locate and facilities costs. However, these increases were partially offset by the absence of $2.1 million of merger and integration expenses that were fully amortized in the fiscal 2005 first quarter. The provision for doubtful accounts increased $4.0 million to $18.5 million for the nine months ended June 30, 2006, compared with $14.5 million in the prior-year period. The increase was mainly attributable to increases in the utility segment provision for doubtful accounts due to increased collection risk associated with higher customer bills as a result of higher natural gas prices. In the utility segment, the average cost of natural gas for the nine months ended June 30, 2006, was $10.39 per Mcf, compared with $7.20 per Mcf for the nine months ended June 30, 2005. Taxes, other than income taxes, for the nine months ended June 30, 2006, were $158.7 million, compared with $140.5 million for the prior-year period. The $18.2 million increase was primarily related to franchise fees and state gross receipts taxes, which do not have a permanent effect on net income, as explained above. Miscellaneous expense for the nine months ended June 30, 2006, was $1.0 million, compared with miscellaneous income of $2.9 million for the nine months ended June 30, 2005. The $3.9 million increased expense was attributable to a $3.3 million charge recorded during the fiscal 2006 second quarter associated with an adverse regulatory ruling in Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. related to the calculation of a performance-based rate mechanism associated with gas purchases, coupled with lower interest income earned on lower cash balances during the current-year period compared with the prior-year period. Interest charges for the nine months ended June 30, 2006, were $107.6 million, compared with $99.3 million for the nine months ended June 30, 2005. The $8.3 million increase was primarily due to higher average outstanding short-term debt balances used to fund natural gas purchases at significantly higher prices, coupled with an increase in the three-month LIBOR rate. These increases were partially offset by $3.6 million in interest savings arising from the early payoff of $72.5 million of the company's First Mortgage Bonds in June 2005. For the nine months ended June 30, 2006, cash flow generated from operating activities provided cash of $223.4 million, compared with a $387.4 million cash inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. from operations for the same period last year. Period over period, operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was adversely impacted by significantly higher natural gas prices which contributed to significantly higher under-collected deferred gas costs and an unfavorable timing of cash payments compared with the prior-year period. These adverse changes were partially offset by customer account collections and reduced cash margin deposit requirements to collateralize collateralize To pledge an asset as security for a loan. A loan to a broker is collateralized by pledging securities. certain risk management positions. Capital expenditures increased to $322.7 million for the nine months ended June 30, 2006, from $226.9 million for the nine months ended June 30, 2005. The $95.8 million increase in capital expenditures primarily reflects increased spending associated with the company's North Side Loop project in the Dallas/Fort Worth Metroplex The Dallas–Fort Worth–Arlington metropolitan area, a title designated by the U.S. Census as of 2003, encompasses 12 counties within the U.S. state of Texas. The metropolitan area is further divided into two metropolitan divisions: Dallas–Plano–Irving and other pipeline expansion projects in the Atmos Pipeline-Texas Division, all of which were completed during the fiscal 2006 third quarter. Increased capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. in the Mid-Tex Division also contributed to the increase in capital expenditures. Outlook Atmos Energy's leadership remains focused on enhancing shareholder value by delivering consistent earnings growth and providing a sound and attractive dividend. At June 30, 2006, the ratio of debt to total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. was 59.9 percent compared with 58.9 percent at March 31, 2006 reflecting increased short-term debt borrowings. Atmos Energy remains committed to reducing the debt to capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. ratio to a targeted range of 50 to 55 percent within two to four years. The company believes that despite the unseasonably warm weather that negatively impacted its utility results, continued natural gas price volatility creates the potential for the complementary nonutility businesses to deliver stronger results, thereby partially offsetting the impact of warmer weather on the company's utility operations. As a result, Atmos Energy continues to anticipate earnings per diluted share in the full 2006 fiscal year to be at the lower end of the previously announced range of $1.80 to $1.90. However, changes in these events or other circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that the company cannot currently anticipate, could materially impact earnings, and result in earnings for the fiscal 2006 year that are significantly above or below this outlook. Conference Call to be Webcast August 10, 2006 Atmos Energy Corporation will host a conference call with financial analysts to discuss the financial results for the third quarter and first nine months of fiscal 2006 on Thursday, August 10, 2006, at 9 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT . The telephone number is 800-218-0204. The conference call will be webcast live on the Atmos Energy Web site at www.atmosenergy.com. A slide presentation also will be available on the company's Web site, and a playback Playback could mean:
German chemist known for his research on the components of blood. He won a 1930 Nobel Prize for his work on the synthesis of hemin. , senior vice president, utility operations; Mark Johnson Mark Johnson may refer to: Academics and scientists
The process by which the corporation communicates with its investors. . Highlights and Recent Developments Louisiana Rate Settlement On May 25, 2006, the Louisiana Public Service Commission Louisiana Public Service Commission (LPSC) is an independent regulatory agency serving the public of Louisiana by managing its public utilities and motor carriers. It is the successor to the Railroad Commission of Louisiana. (LPSC LPSC Lunar and Planetary Science Conference (League City, Texas) LPSC Louisiana Public Service Commission (Baton Rouge, LA) LPSC Laboratoire de Physique Subatomique et de Cosmologie ) voted to approve a settlement of several existing dockets filed by the company. The settlement provided for, among other things, a modified WNA which provides for partial decoupling Decoupling The occurrence of returns on asset classes diverging from their normal pattern of correlation. Notes: Take for example stock and corporate bond returns, which normally rise and fall together. , renewal of the Rate Stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders Clause (RSC RSC Royal Society of Chemistry (UK) RSC Royal Shakespeare Company RSC Responsabilidad Social Corporativa (Spanish: corporate social responsibility) RSC Royal Society of Canada ) for both the LGS LGS Laser Guide Star LGS Lennox-Gastaut Syndrome LGS Leaky Gut Syndrome LGS Langer-Giedion Syndrome LGS Light Gauge Steel (steel frame construction system) LGS Looking Glass Studios (game development company) and TransLa service areas with provisions that will reduce regulatory lag and provide a refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies to customers of approximately $400,000. The first RSC filing will be made in August 2006, based on a test year ended December 31, 2005, for the LGS service area. The effective date for any rate adjustment resulting from that filing will be August 12, 2006. The first filing for the TransLa service area will be made by December 31, 2006, for the test period ending September 30, 2006, with any rate adjustment becoming effective on April 1, 2007. WNA for both service areas will be in effect for an initial three-year period beginning with the winter of 2006-2007. Mid-Tex Division Ratemaking rate·mak·ing n. The practice of establishing rates of payment, as for public transportation or utilities. rate Initiatives In May 2006, the Mid-Tex Division filed its case with the Railroad Commission of Texas The Railroad Commission of Texas is the state agency that regulates the oil and gas industry, gas utilities, pipeline safety, safety in the liquefied petroleum gas industry, and surface coal and uranium mining. (RRC RRC Radio Resource Control (3G) RRC Red River College (Canada) RRC Railroad Commission of Texas (Austin, TX) RRC Residency Review Committee (medical) ) seeking incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. annual revenues of $60 million and several rate design changes including WNA, Revenue Stabilization, and recovery of the gas cost component of bad debt. The filing was in response to recent actions taken by some of the cities served by the Mid-Tex Division, including the City of Dallas, which requires the Mid-Tex Division to demonstrate that existing distribution rates are just and reasonable. In July 2006, the Mid-Tex Division and the RRC agreed to implement WNA on both an interim and permanent basis, effective October 1, 2006. The agreement provided that the interim WNA will use 30 years of weather history, while the permanent WNA would allow the parties to contest the appropriate period of weather data to use in calculating normal weather. The permanent WNA should also be modified or adjusted to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the rate design that the commission ultimately approves in the case, which is anticipated no later than the first quarter of calendar 2007. Any rate increase will be effective prospectively from the date of the final order; however, any rate decrease will be effective from May 31, 2006. Natural Gas Gathering Project In May 2006, the company announced plans to construct a natural gas gathering system in Eastern Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. that will originate in Verb 1. originate in - come from stem - grow out of, have roots in, originate in; "The increase in the national debt stems from the last war" Floyd County, Kentucky Floyd County is a county located in the U.S. state of Kentucky. It was formed in 1800. As of 2000, the population was 42,441. Its county seat is Prestonsburg6. The county is named for Colonel John Floyd (1750-1783). Geography According to the U.S. , and extend north approximately 65 miles to interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. with the Tennessee Gas Pipeline Tennessee Gas Pipeline (TGPL) is a natural gas pipeline which runs from the Gulf of Mexico coast in Texas and Louisiana up through Arkansas, Kentucky, Tennessee, Ohio, and Pennsylvania to deliver gas in West Virginia, New Jersey, New York, and New England. in Carter County, Kentucky Carter County is a county located in the U.S. state of Kentucky. It was formed in 1838. As of 2000, the population was 26,889. Its county seat is Grayson, Kentucky6. The county is named for Colonel William Grayson Carter. . The new system is expected to relieve severe gas gathering and transportation constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. that historically have burdened natural gas producers in the area and should improve delivery reliability to natural gas customers. Kinzer Drilling, an independent producer in the area, will have an ownership interest in the project. More than a dozen other producers have signed memoranda of understanding to commit gas volumes to the new system and to enter into agreements on commercially reasonable terms. The project is expected to cost between $75 million to $80 million. Upon receiving all required regulatory approvals, including exemption from regulatory oversight
Oversight may refer to:
Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. The matters discussed in this news release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this news release are forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. from liability established by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. When used in this news release or in any of the company's other documents or oral presentations, the words "anticipate," "believes," "estimate," "expects," "forecast," "goal," "intends," "objective," "plans," "projection," "seek," "strategy" or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in this news release, including the risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the acquisition of the operations of TXU TXU Texas Utilities (Electric and Gas Company) TXU Transmitter Unit Gas, the company's ability to continue to access the capital markets and the other factors discussed in the company's SEC filings. These factors include the risks and uncertainties discussed in the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended September 30, 2005, and the company's Form 10-Q Form 10-Q See 10-Q. for the three and six months ended March 31, 2006. Although the company believes these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. The company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise. About Atmos Energy Atmos Energy Corporation, headquartered in Dallas, is the country's largest natural gas-only distributor, serving about 3.2 million gas utility customers. Atmos Energy's utility operations serve more than 1,500 communities in 12 states from the Blue Ridge Mountains Blue Ridge also Blue Ridge Mountains A range of the Appalachian Mountains extending from southern Pennsylvania to northern Georgia. It rises to 2,038.6 m (6,684 ft) at Mount Mitchell in the Black Mountains of western North Carolina. in the East to the Rocky Mountains Rocky Mountains, major mountain system of W North America and easternmost belt of the North American cordillera, extending more than 3,000 mi (4,800 km) from central N.Mex. to NW Alaska; Mt. Elbert (14,431 ft/4,399 m) in Colorado is the highest peak. in the West. Atmos Energy's nonutility operations, organized under Atmos Energy Holdings, Inc., operate in 22 states. They provide natural gas marketing and procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. services to industrial, commercial and municipal customers and manage company-owned natural gas pipeline and storage assets, including one of the largest intrastate in·tra·state adj. Relating to or existing within the boundaries of a state. Adj. 1. intrastate - relating to or existing within the boundaries of a state; "intrastate as well as interstate commerce" natural gas pipeline systems in Texas. Atmos Energy is a Fortune 500 company. For more information, visit www.atmosenergy.com.
Atmos Energy Corporation
Financial Highlights (Unaudited)
Three Months Ended
Statements of Income (Loss) June 30 Percentage
-------------------------------------
(000s except per share) 2006 2005 Change
--------- --------- ----------
Operating revenues:
Utility segment $402,044 $501,735
Natural gas marketing segment 562,447 466,835
Pipeline and storage segment 35,862 33,449
Other nonutility segment 1,413 1,421
Intersegment eliminations (138,523) (96,563)
--------- ---------
863,243 906,877
Purchased gas cost:
Utility segment 232,192 326,502
Natural gas marketing segment 563,333 456,440
Pipeline and storage segment 379 (1,733)
Other nonutility segment -- --
Intersegment eliminations (137,161) (95,606)
--------- ---------
658,743 685,603
--------- ---------
Gross profit 204,500 221,274 (8)%
Operation and maintenance expense 104,380 91,443 14%
Depreciation and amortization 46,838 43,448 8%
Taxes, other than income 48,479 46,915 3%
--------- --------- ----------
Total operating expenses 199,697 181,806 10%
Operating income 4,803 39,468 (88)%
Miscellaneous income 963 1,524 (37)%
Interest charges 35,944 33,689 7%
--------- --------- ----------
Income (loss) before income taxes (30,178) 7,303 (513)%
Income tax expense (benefit) (12,033) 2,817 (527)%
--------- --------- ----------
Net income (loss) $(18,145) $4,486 (504)%
========= ========= ==========
Basic net income (loss) per share $(0.22) $0.06
Diluted net income (loss) per share $(0.22) $0.06
Cash dividends per share $.315 $.310
Weighted average shares outstanding:
Basic 80,840 79,683
Diluted 80,840 80,144
Three Months Ended
June 30 Percentage
Summary Net Income (Loss) by Segment Change
(000s) 2006 2005
---------------------------------------- --------- -------- ----------
Utility $(18,971) $(6,668) (185)%
Natural gas marketing (5,169) 2,360 (319)%
Pipeline and storage 5,832 8,842 (34)%
Other nonutility 163 (48) 440%
--------- -------- ----------
Consolidated net income (loss) $(18,145) $4,486 (504)%
========= ======== ==========
Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
Nine Months Ended
Statements of Income June 30 Percentage
---------------------------------
(000s except per share) 2006 2005 Change
----------- ----------- ----------
Operating revenues:
Utility segment $3,254,674 $2,650,793
Natural gas marketing segment 2,482,921 1,473,527
Pipeline and storage segment 121,057 122,685
Other nonutility segment 4,500 4,058
Intersegment eliminations (682,243) (290,477)
----------- -----------
5,180,909 3,960,586
Purchased gas cost:
Utility segment 2,488,906 1,895,181
Natural gas marketing segment 2,413,511 1,425,128
Pipeline and storage segment 590 8,895
Other nonutility segment -- --
Intersegment eliminations (678,591) (287,889)
----------- -----------
4,224,416 3,041,315
----------- -----------
Gross profit 956,493 919,271 4%
Operation and maintenance expense 325,295 305,640 6%
Depreciation and amortization 137,174 132,771 3%
Taxes, other than income 158,691 140,537 13%
----------- ----------- ----------
Total operating expenses 621,160 578,948 7%
Operating income 335,333 340,323 (1)%
Miscellaneous income (expense) (1,028) 2,867 (136)%
Interest charges 107,625 99,304 8%
----------- ----------- ----------
Income before income taxes 226,680 243,886 (7)%
Income tax expense 85,002 91,299 (7)%
----------- ----------- ----------
Net income $141,678 $152,587 (7)%
=========== =========== ==========
Basic net income per share $1.76 $1.96
Diluted net income per share $1.75 $1.94
Cash dividends per share $.945 $.930
Weighted average shares
outstanding:
Basic 80,520 78,009
Diluted 81,013 78,478
Nine Months Ended
June 30 Percentage
Summary Net Income by Segment (000s) 2006 2005 Change
--------------------------------------- --------- --------- ----------
Utility $84,070 $104,006 (19)%
Natural gas marketing 28,215 19,413 45%
Pipeline and storage 29,086 28,564 2%
Other nonutility 307 604 (49)%
--------- --------- ----------
Consolidated net income $141,678 $152,587 (7)%
========= ========= ==========
Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
Condensed Balance Sheets June 30, September 30,
--------------------------------------------
(000s) 2006 2005
----------- -------------
Net property, plant and equipment $3,579,083 $3,374,367
Cash and cash equivalents 26,849 40,116
Cash held on deposit in margin account 58,176 80,956
Accounts receivable, net 409,087 454,313
Gas stored underground 437,069 450,807
Other current assets 118,990 238,238
----------- -------------
Total current assets 1,050,171 1,264,430
Goodwill and intangible assets 737,349 737,787
Deferred charges and other assets 249,874 276,943
----------- -------------
$5,616,477 $5,653,527
=========== =============
Shareholders' equity $1,664,556 $1,602,422
Long-term debt 2,180,752 2,183,104
----------- -------------
Total capitalization 3,845,308 3,785,526
Accounts payable and accrued liabilities 306,805 461,314
Other current liabilities 407,575 503,368
Short-term debt 297,087 144,809
Current maturities of long-term debt 3,331 3,264
----------- -------------
Total current liabilities 1,014,798 1,112,755
Deferred income taxes 283,757 292,207
Deferred credits and other liabilities 472,614 463,039
----------- -------------
$5,616,477 $5,653,527
=========== =============
Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
Condensed Statements of Cash Flows Nine Months Ended June 30
-------------------------------------------
(000s) 2006 2005
-------------- -----------
Cash flows from operating activities
Net income $141,678 $152,587
Depreciation and amortization 137,533 133,405
Deferred income taxes 36,160 17,703
Changes in assets and liabilities (103,991) 76,122
Other 12,063 7,593
-------------- -----------
Net cash provided by operating
activities 223,443 387,410
Cash flows from investing activities
Capital expenditures (322,691) (226,851)
Acquisitions -- (1,916,654)
Other (4,811) (1,648)
-------------- -----------
Net cash used in investing activities (327,502) (2,145,153)
Cash flows from financing activities
Net increase in short-term debt 152,278 --
Net proceeds from issuance of long-term
debt -- 1,385,847
Repayment of long-term debt (2,618) (102,801)
Settlement of Treasury lock agreements -- (43,770)
Cash dividends paid (76,559) (74,048)
Net proceeds from equity offering -- 382,014
Issuance of common stock 17,691 32,206
-------------- -----------
Net cash provided by financing
activities 90,792 1,579,448
-------------- -----------
Net decrease in cash and cash equivalents (13,267) (178,295)
Cash and cash equivalents at beginning of
period 40,116 201,932
-------------- -----------
Cash and cash equivalents at end of period $26,849 $23,637
============== ===========
Three Months Ended Nine Months Ended
June 30 June 30
Statistics 2006 2005 2006 2005
-------------------------- ---------- ---------- ---------- ----------
Heating degree days (a) 119 167 2,507 2,580
Percent of normal (a) 69% 97% 87% 89%
Consolidated utility gas
throughput
(MMcf as metered) 62,283 72,678 330,946 351,712
Consolidated natural gas
marketing sales
volumes (MMcf) 66,472 52,739 207,418 179,679
Consolidated pipeline
transportation
volumes (MMcf) 104,680 97,567 277,721 254,528
Natural gas meters in
service 3,186,152 3,163,912 3,186,152 3,163,912
Utility average cost of
gas $7.11 $7.43 $10.39 $7.20
(a) Adjusted for weather-normalized operations.
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