Atmos Energy executives outline competitive advantages in New York Society of Security Analysts address.

DALLAS--(BUSINESS WIRE)--Nov. 29, 1995--Atmos Energy Corporation (NYSE:ATO) is an efficient, low-cost natural gas provider and expects to continue its success in an increasingly competitive utility marketplace, President and Chief Operating Officer Robert F. Stephens said today in an address before the New York Society of Security Analysts. Executive Vice President and Chief Financial Officer James F. Purser reviewed the financial condition of the company.

"We're old hands at competition in the industrial market, particularly in our Kentucky service area, where 59 percent of our throughput is to large-volume customers. We're also accustomed to competition at the retail level from other energy sources, and compete for customers against some very low cost electric utilities," Stephens said. "For a low-cost, efficient provider like Atmos, competition brings more opportunity than concern."

Not only does the company have some of the most productive employees in the industry and lowest operating expenses, but also has lower net plant investment per meter than the industry average. The company reduced its already low average cost of gas per Mcf in 1995 to $2.46 per Mcf because its market-sensitive gas contracts allowed its customers to benefit from lower gas prices, thus further enhancing the company's competitiveness.

By operating efficiently to keep its service cost low, looking for ways to trim gas costs, and providing a valuable resource to its customers to reduce their total energy bills, Atmos has achieved a record of success in competitive markets.

The company is continuing its long-term corporate development strategy, including pursuing natural gas utility properties throughout the U.S. to acquire and operate to bring diversity in weather, economic conditions and regulatory climates. The growth resulting from this strategy has rewarded shareholders in the last 10 years, including a nearly 10-fold increase in market capitalization, nearly a four-fold increase in stock price and a 75 percent increase in the dividend.

The company continues to increase customers in its existing service areas, especially Colorado, where the company serves the hot growth areas of Durango, Steamboat Springs and Greeley. The company is developing the market for natural gas cooling and natural gas-engine driven equipment to commercial, industrial and agricultural customers, as well as natural gas as a vehicle fuel.

Purser presented financial highlights for 1995, including a 29 percent increase in earnings despite weather that was 10.1 percent warmer than normal; a 4.3 percent increase in the quarterly dividend announced Nov. 8, 1995, to $.24 per share; and rate increases totaling $2.8 million in fiscal 1995. Cash flow per share increased 40 percent in 1995 to $3.02 per share compared with $2.46 per share in 1994, and return on average shareholder equity increased to 12.3 percent. The company sold about 20 billion cubic feet of natural gas in its agricultural market to fuel natural gas-engine driven irrigation pumps, a unique source of spring and summer revenues for the company. The company also increased sales to industrial customers in spite of an increasingly competitive market.

"We believe that Atmos is an attractive investment for the long- term because of the company's advantages as a low-cost provider in a competitive environment, above-average prospects for internal growth and investment, and a unique corporate development strategy that has brought real rewards to our shareholders," Stephens concluded.

Atmos Energy Corporation provides natural gas service to more than 667,000 customers in Texas, Colorado, Kansas, Missouri, Louisiana and Kentucky through its operating companies - Energas Company, Greeley Gas Company, Trans Louisiana Gas Company and Western Kentucky Gas Company.

CONTACT: Atmos Energy Corporation, Dallas

Margaret Watson, 214/450-4050 (Media)

Jack Eversull, 214/788-3729 (Investor/Analyst)