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Lehman Brothers Energy & Power Conference
Robert W. BestChairman, President & CEO
September 2, 2008
2
Forward Looking Statements
The matters discussed or incorporated by reference in this presentation 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 presentation are forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this presentation or in any of our other documents or oral presentations, the words “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “objective,” “plan,”“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 presentation, including the risks relating to regulatory trends and decisions, our ability to continue to access the capital markets, and the other factors discussed in our filings with the Securities and Exchange Commission. These factors include the risks and uncertainties discussed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2007 and in our Quarterly Report on Form 10-Q for the three and nine months ended June 30, 2008. Although we believe 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. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Further, we will only update earnings guidance through our quarterly and annual earnings releases. All estimated financial metrics for fiscal year 2008 and beyond that appear in this presentation are current as of the date noted on each relevant slide.
3
OverviewThe Nation’s Largest Pure Gas Distribution CompanyRegulated gas distribution operates in 12 states (gold)Nonregulated operates primarily in the Midwest & Southeast (gray)
4
1.16
0.42
1.38
0.34
0.98
0.84
1.23
0.69
1.53-1.59
0.42-0.46
$0.00
$0.30
$0.60
$0.90
$1.20
$1.50
$1.80
$2.10
2004 2005 2006 2007 2008E
NonregulatedOperationsRegulatedOperations
Diluted Earnings Per Share Contribution Shows Steady Growth
Overview
$1.82$1.72
$1.92$1.95-$2.05
$1.58
CAGR 6.1%
As of August 5, 2008
5
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
'84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08
Note: Amounts are adjusted for mergers and acquisitions. For fiscal 2008, $1.30 is the indicated annual dividend.
$1.30E
OverviewAnnual Dividend Remains Steady
6
Overview
16.4%
14.5%
15.5%
12.7%13.1%
14.4%
10.0%
12.0%
14.0%
16.0%
18.0%
2003 2004 2005 2006 2007 5 Yr Avg
2.552.75
3.05
2.59 2.552.75
3.00
1.5
2.0
2.5
3.0
3.5
2002 2003 2004 2005 2006 2007 2008E
7.4%
6.9%
6.4%6.0%
5.6%5.9%
6.1% 6.1%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
2001 2002 2003 2004 2005 2006 2007 2008E
51.5%53.7%
60.9%59.3%
43.3%
53.6%
40
45
50
55
60
65
2003 2004 2005 2006 2007 Jun-08
ROIC - Return on invested capital is calculated using the following GAAP financial measures: Income before interest expense and income taxes plus common stock dividends paid, divided by the average of the year’s beginning and ending long-term debt plus common equity. This measure is used to more precisely evaluate operational performance and management effectiveness.
The times interest earned ratio measures the ability to satisfy annual interest costs.
As of December 2007
Return on Invested Capital (ROIC) Times Interest Earned Ratios
Weighted Average Cost of Debt Debt Capitalization Ratio
Financial Metrics Continue to Improve1 2
3
(1) (2) (3)
(1)
(2)
7
Investment Grade Credit Ratings Allow Financial Flexibility
Moody’s RatingSenior Unsecured Debt: Baa3Commercial Paper: P-3Outlook: stable
Standard & Poor’sSenior Unsecured Debt: BBBCommercial Paper: A-2Outlook: positive
FitchSenior Unsecured Debt: BBB+Commercial Paper: F-2Outlook: stable
Overview
8
Atmos Energy Holdings, Inc.(Nonregulated Operations)
Atmos Energy Holdings, Inc.(Nonregulated Operations)
Atmos Energy Marketing• Marketing• Asset Optimization
Atmos Energy Marketing• Marketing• Asset Optimization
Atmos Pipeline, Storageand Other
• Non-Texas Assets (Storage & Pipeline)• Midstream• Other
Atmos Pipeline, Storageand Other
• Non-Texas Assets (Storage & Pipeline)• Midstream• Other
Kentucky/Mid-StatesKentucky/Mid-States
Atmos Energy Corporation(Regulated Operations)
Gas Distribution DivisionsTransmission & Storage
Atmos Energy Corporation(Regulated Operations)
Gas Distribution DivisionsTransmission & Storage
West TexasWest Texas
Colorado-KansasColorado-Kansas
LouisianaLouisiana
Mid-Tex Mid-Tex
MississippiMississippi
Atmos Pipeline -TexasAtmos Pipeline -Texas
Regulated Operations
9
Profit Drivers in the Distribution Business
Customer and meter growth
Growing rate base
Managing costs
Executing our rate strategy
Regulated Gas Distribution Operates in 12 States (gold)
Regulated Natural Gas Distribution
10
Successfully Executing on the Rate Strategy
Regulated Natural Gas Distribution
GRIP/
Partial means applicable within certain jurisdictions within the category.Excludes Colorado, Iowa and Illinois for a total of 137,657 customers.Includes Missouri, Kansas and Georgia for a total of 258,102 customers.Includes Missouri for a total of 59,672 customers.Includes Amarillo for a total of 69,772 customers.Includes Kansas and Virginia for a total of 151,545 customers.Includes Mid-Tex Division customers residing in cities covered by settlement agreements. Includes Mid-Tex Division for a total of 1,500,000 customers.
Number of Customers
Percentage of Total
Purchased Gas Cost Adjustments WNA
Accelerated Capital Recovery
Decoupling/ Rate Stabilization
Gas Cost Bad Debt Recovery
Texas 1,800,000 57% Partial
Louisiana 350,000 11%
Mississippi 270,000 8%Remaining Jurisdictions 770,000 24% PartialPartialPartial 2 3
4,7
51
1
2
3
4
5
6
6Partial
7
11
10.0%Authorized Return on Equity (ROE)9.6%
Effective 7/1/08Capital Structure 52% Debt; 48% EquityEffective 10/1/08
__$33.5 Million RRM FilingPending;
Effective 10/1/08
Effective 11/08 (est.)$10.3 Million GRIP Filing RecoveryIncluded in RRM filing
Effective 7/1/08Gas Cost Recovery of Bad DebtEffective 10/1/08
$1 Million Conservation Program
$19.6 Million Rate Increase
$10 Million Rate Increase
Systemwide Increase in Revenues
100%
Effective 10/1/08
__
Effective 4/1/08
Settlement(438 of 439 Cities)
~80%
Effective 10/1/08
__
Effective 7/8/08
RRC Order(City of Dallas & Environs)
~20%
Mid-Tex Division 2008 Rate Outcome Summary
12
15.8
2.8
10.5
5.7
4.51.8
3.3
34.3
1.4
11.6
25.6
2.9
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
2003 2004 2005 2006 2007 2008-2012E
Annual Mechanism GRIP General Rate Case Aggregate
($ M
illio
ns)
Approved Annual Rate Increases in the Regulated Operations
$6.3
$50 - $60
$39.0
Regulated Operations
$40.1
$18.6$16.2
As of August 5, 2008
13
Favorably positioned; spans Texas gas supply basins and growing consumer market
Pipeline Operations• Connects to major market hubs-
Waha, Katy and Carthage• 6,300 miles of intrastate pipeline• Estimated transportation volume of
780 Bcf in fiscal 2008• Current average volume of
approximately 2.0 Bcf/d• Demonstrated peak day deliveries
of 3.5 Bcf/d
Five Storage Facilities• One salt cavern, four reservoirs• 39 Bcf working gas capacity• 1.2 Bcf/d maximum withdrawal• 270 MMcf/d maximum injection
West Texas Division
Mid-Tex Division
Atmos Pipeline-TexasAtmos Energy Headquarters
Strategically Positioned Atmos Pipeline –Texas
Regulated Transmission and Storage
14
Growth Drivers Growth Drivers Pursue capacity and compression growth opportunities
Increased through-system volumes primarily from producers in Barnett Shale
Margin expansion through ancillary services such as parking and lending, balancing, blending, and compression
Gas price volatility increasing basis differentials between Texas hubs
Regulated Transmission and StorageAtmos Pipeline – Texas Growth Drivers
Tran
spor
tatio
n Vo
lum
es(B
cf)
78
60
77
64
85
78
95-97
93-97
0
25
50
75
100
125
150
175
200
2005 2006 2007 2008E
Tariff Based Market Based
Mar
gin
Com
posi
tion
($m
illio
ns)
181
374
170
411
194
505
1188-195
587-590
0
150
300
450
600
750
2005 2006 2007 2008E
Mid-Tex Division Third Party
555 581
699775-785
138 141163
188-194
As of August 5, 2008
15
Regulated Transmission and Storage
Barnett Shale
Cotton Valley
Bossier
Sands
Permian
Location of gassupply basins
16
Atmos Energy Holdings, Inc.(Nonregulated Operations)
Atmos Energy Holdings, Inc.(Nonregulated Operations)
Atmos Energy Marketing• Marketing• Asset Optimization
Atmos Energy Marketing• Marketing• Asset Optimization
Atmos Pipeline, Storage and Other
• Non-Texas Assets (Storage & Pipeline)• Midstream• Other
Atmos Pipeline, Storage and Other
• Non-Texas Assets (Storage & Pipeline)• Midstream• Other
Nonregulated Operations
Kentucky/Mid-StatesKentucky/Mid-States
Atmos Energy Corporation(Regulated Operations)
Gas Distribution DivisionsTransmission & Storage
Atmos Energy Corporation(Regulated Operations)
Gas Distribution DivisionsTransmission & Storage
West TexasWest Texas
Colorado-KansasColorado-Kansas
LouisianaLouisiana
Mid-TexMid-Tex
MississippiMississippi
Atmos Pipeline -TexasAtmos Pipeline -Texas
Organization Structure
17
Atmos Energy Marketing Customers (gray states)
About 1,100 customers
Target market is Atmos Energy’s natural gas distribution footprint
Focus on areas where we manage, lease or own storage and transportation assets
Regional offices allow for more direct customer access
Nonregulated Operations
18
Delivered Gas
(Bundled gas deliveries &peaking sales)
Delivered Gas
(Bundled gas deliveries &peaking sales)
Asset Optimization
(Storage & transportationmanagement)
Asset Optimization
(Storage & transportationmanagement)
Total AEMMarginsTotal AEMMargins
Impacted by customer volume demand Sales prices are:
• Cost plus profit margin• Cost plus demand charges
Margins: More predictable
Impacted by gas price spread values in the market (arbitrage opportunity)Physical storage capabilitiesAvailable storage and transport capacity
7.8 Bcf proprietary contracted capacity27 Bcf customer-owned / AEM- managedstorage
Margins: More variable
Total margins reflect:Stability from delivered gas margins Upside from optimizing our storage and transportation assets to capture arbitrage value
Margins: Stable with potential upside
2008E
$65 - $70 Million
$10 - $15 Million
$75 - $85 Million
=
Atmos Energy Marketing – Margin Composition
Nonregulated Operations
As of August 5, 2008
19
Key Growth DriversKey Growth Drivers
Retain existing customersSaturate existing markets Expand into targeted growth markets (Texas, Alabama, etc.)Expand asset management businessUnit margin expansion from premium value-added services provided to customersAccess to storage assetsGas price volatility
Gro
ss S
ales
Vol
umes
BC
F
265 273337
424450-485
0
100
200
300
400
500
2004 2005 2006 2007 2008E
0.230.25
0.31
0.15 0.14-0.15
0.00
0.10
0.20
0.30
2004 2005 2006 2007 2008E
Del
iver
ed G
as U
nit M
argi
ns(c
ents
per
Mcf
)
Delivered Gas Volumes Continue Growth Trend
Nonregulated Operations
As of August 5, 2008
20
60.0
28.0
(26.0)
87.2
26.2
17.2
57.1
28.8
18.4
65.0-70.0
10.0-15.0
(30.0)
(10.0)
10.0
30.0
50.0
70.0
90.0
110.0
130.0
150.0
2005 2006 2007 2008E
Delivered Gas Asset Optimization Unrealized Margins
($ m
illio
ns)
Nonregulated Operations
62.0
130.6
104.3
75.0-85.0
Delivered Gas Margins have remained fairly constant at about $60 million, with the exception of Fiscal 2006 due to effects of Hurricane Katrina
Asset Optimization Margins remained fairly constant between $25 million - $30 million annually until fiscal 2008 when the effects of dampened market volatility can be seen
Fiscal 2008 marketing segment margins are expected to be between $75 million and $85 million, excluding any mark-to-market impact
Mark-to-market accounting impact is recognized in Unrealized Margins. An example of the accounting can be found in the appendix to this presentation
Delivered Gas and Asset Optimization MarginsNonregulated Atmos Energy Marketing
As of August 5, 2008
21
Initial project includes development of three 5 Bcf caverns with six-turn injection and withdrawal capabilities
Storage facility adjacent to large interstate pipelines
Pending FERC approval, first cavern projected to be operational in 2011; the other two caverns operational by 2012 and 2014
Depending on market demand, four additional storage caverns could potentially be developed
Successful non-binding open season completed in July 2008
Ft. Necessity Gas Storage Project in Louisiana
Nonregulated Operations
Salt Storage ProjectFranklin Parish, LA
Legend of Nearby Pipelines
Regency ANR
LIG CGT
TGT TGP
TLGFort Necessity
Salt Dome
22
Atmos Energy continues to expect earnings to be in range of $1.95 - $2.05 per diluted share for the 2008 fiscal yearAssumptions include:
Contribution from natural gas marketing segment reflecting significantly less volatility in gas price spreads
o Total expected gross margin contribution from the marketing segment in the range of $75 million to $85 million, excluding any material mark-to-market impact at September 30, 2008
Continued successful execution of rate strategy and collection effortsBad debt expense of no more than $15 millionAverage annual short-term interest rate of 6.5%
Note: Changes in these events or other circumstances that the company cannot currently anticipate could materially impact earnings, and could result in earnings for fiscal 2008 significantly above or below this outlook.
Consolidated Earnings Guidance – Fiscal 2008E
Financial Review
As of August 5, 2008
23
Natural Gas DistributionRegulated Trans & Storage Natural Gas MarketingPipeline, Storage & OtherTotalAvg. Diluted SharesEarnings Per Share
2006$ 53
275810
14881.4
$ 1.82
$ 95 - 99 43 - 4427 - 30 11 - 12
176 - 18590.1
$1.95 - $2.05
2008E2007$ 73
344615
16887.7
$ 1.92
2005$ 81
2823
413679.0
$ 1.72
($ millions, except EPS)
Projected Net Income by Segment
Financial Review
As of August 5, 2008
24
99.1
228.3
80-83
285- 288
$0$50
$100$150$200$250$300$350$400
2007 2008E
RegulatedGas Distribution
RegulatedTransmission & Storage
$365-$371
Capital Expenditures
$327.4
2.1
57.2
10-11
61-62
$0
$25
$50
$75
$100
2007 2008E
$71-73
4.61.1
15-16
4-5
$0
$5
$10
$15
$20
$25
2007 2008E
Nonregulated
$59.3
$5.7
Financial Review
Consolidated fiscal 2008 CAPEX projection is $455-$465 million
($ millions)
$19-21
Growth Capital
Maintenance Capital
As of August 5, 2008
25
Financial Review
14.3x14.9x
13.1x
11.0
12.0
13.0
14.0
15.0
16.0
S&P 500 Peer GroupAvg.
Compelling Valuation and Total Return Proposition
5.1
3.9
4.7
4.9 12.1
2.1
3.0
6.0
9.0
12.0
15.0
Peer GroupAvg.
S&P 500
5 year growth rate dividend yield
Forward P/E Estimates 5 Year Expected Total Return
Companies in the peer group include AGL Resources, Laclede, New Jersey Resources, Nisource, Northwest Natural Gas, Oneok, Piedmont Natural Gas, Southwest Gas and WGL Holdings.
Source: Bloomberg @ 8/26/08Peer group averages exclude Atmos
9.0% 9.6%
14.2%
Atmos EnergyAtmos
Energy
26
Summary
Company Profile
The nation’s largest pure-gas distribution companySolid financial foundationTrack record of creating shareholder value• Consistent earnings growth• 24 consecutive years of increasing dividends
Focused strategy over time• Grow through prudent acquisitions• Maximize core regulated earnings capability• Complement core regulated businesses through select
nonregulated operations
27
SlideAppendix
28
Mid-Tex – rate case completed• Settlement agreement reached with all major parties in January and February 2008, except City of
Dallas and environs customers• Final order issued by the Texas Railroad Commission in June 2008 applicable to the City of Dallas
and environs• Details included on slides located in the presentation appendix
Louisiana – annual rate stabilization filings complete• Approved $1.7 million increase in June 2008 for LGS jurisdiction (about 265,000 customers) effective
immediately• Approved $2.1 million increase for Trans La jurisdiction (about 80,000 customers) effective April, 2008
Kansas – rate case settled• Filed for $5 million in September 2007• Reached $2.1 million “black box” settlement with staff, effective May 2008 (about 124,000 customers)
Georgia – pending rate case• Filed for over $6 million in March 2008, decision expected September 2008 (about 76,000 customers)• Forward-looking filing with test year ending March 30, 2009
Atmos Pipeline - Texas – 2007 GRIP filing for revenue increase of approximately $7.0 million implemented on April 15th
Mid-Tex Division – 2007 GRIP filing on a system-wide basis filed in May 2008 of $10.3 million; anticipate implementation November 2008 of approximately $2.0 million annually for the customers in the City of Dallas and unincorporated areas
Recent Regulatory Activity Aids Margin GrowthRegulated Operations
29
Rate Case Settlement in Mid-Tex DivisionSettlement agreement reached with 438 of 439 cities served in Mid-Tex Division, representing approximately 80% of Mid-Tex customers
Includes initial increase of $10 million on a systemwide basis, implemented in the consumption charge and effective April 1, 2008
Implements Rate Review Mechanism (RRM) effective for a three-year trial period
Reflects annual changes in cost of service and rate base, replaces GRIP filings for the Settlement CitiesLowers base customer charge to $7.00 for residential customers, effective October 1, 2008Two basic components of this mechanism:
o Prospective component adjusts rates for the next year, including known and measurable changes in O&M; and
o True-up component adjusts the prior year, up or down, to the authorized ROE April 14, 2008, made initial RRM filing with the settling cities for $33.5 million on a systemwide basis, with October 1st implementationFuture RRM filings by March 1st, to be effective July 15th
Authorized ROE of 9.6%; capital structure of 52% debt / 48% equityEstablishes a conservation program effective October 1, 2008
Funded annually with $1 million contributions each by the company and customers
Regulated Natural Gas Distribution
30
Rate Case Decision in Mid-Tex Division
June 24, 2008, Railroad Commission of Texas issued final order applicable to approximately 20% of customers
Includes City of Dallas and environs customersThe remaining 80% of Mid-Tex division customers (438 of 439 cities) were entities who reached earlier settlement; therefore not affected by this order
Systemwide annual revenue increase of about $19.6 million; July 8, 2008 implementation; increased residential customer charge to $14Capital structure of 52% debt / 48% equityAuthorized ROE of 10.0%; Allowed Rate of Return of 7.98%Systemwide Rate Base of $1.128 billion; Systemwide Authorized Net Plant of $1.244 billionRecovery of bad debt gas cost through a Gas Cost Recovery (GCR) mechanism beginning October 1, 2008Establishes a conservation & energy efficiency program
Effective October 1, 2008; funded annually with $1 million contributions each by the company and customers
Test year ended June 30, 2007
Regulated Natural Gas Distribution
31
($ in in millions))
(15.7)
6.1
(5.6)
1.8
(12.4)
10.3
(6.3)
1.8
($20.0)($15.0)($10.0)($5.0)$0.0$5.0
$10.0$15.0$20.0
3Q 2007 3Q 2008
Natural gas distribution Regulated transmission & storageNatural gas marketing Pipeline, storage & other
$(6.6)
Consolidated Financial Results – Fiscal 2008 3Q
$(13.4)51%
Key DriversKey DriversRate increases, primarily in TexasIncrease in transportation volumes and fees at the regulated pipelineDecrease in nonregulated natural gas marketing margins, primarily due to decrease in storage and trading activitiesIncrease in O&M expenses, primarily due to higher administrative costs
Net Income by Segment
32
($ in in millions))
92.4
29.140.4
12.5
113.4
35.319.6
10.4
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
YTD 2007 YTD 2008
Natural gas distribution Regulated transmission & storageNatural gas marketing Pipeline, storage & other
$178.7
Consolidated Financial Results – Fiscal YTD
$174.42%
Key DriversKey DriversRate increases, primarily in Texas
Decrease in nonregulated natural gas marketing margins, primarily due to decrease in storage and trading activities
Increase in transportation volumes and fees at the regulated pipeline
Increase in O&M expenses, primarily due to higher administrative costs
Net Income by Segment
33
67.9
154.6
58.6
208.2
$0
$50
$100
$150
$200
$250
$300
YTD 2007 YTD 2008
RegulatedGas Distribution
RegulatedTransmission & Storage
Total Fiscal 2008 YTD Expenditures: $312.9 millionTotal Maintenance Capital: $245.4 millionTotal Growth Capital: $ 67.5 million
$266.8
Consolidated Financial Results – Fiscal YTD
$222.5
37.1
5.3
35.1
$0
$10
$20
$30
$40
$50
YTD 2007 YTD 2008
$40.4
2.7
0.7 3.6
2.1
$0
$2
$4
$6
$8
YTD 2007 YTD 2008
Nonregulated
$37.1
$3.4
$5.7
Growth Capital
Maintenance Capital
Capital Expenditures
34
Consolidated Financial Results – Fiscal 2008 3Q
Natural Gas Marketing Segment 2008 2007 Change
Delivered gas $11,231 $9,999 $1,232
Asset optimization (37,551) (33,376) (4,175)
Unrealized margin 23,689 22,801 888
GROSS PROFIT ($2,631) ($576) ($2,055)
Net physical position (Bcf) 17.5 21.5 (4.0)
Three Months Ended June 30
(In thousands, except physical position)
Natural Gas Marketing Segment
35
Consolidated Financial Results – Fiscal YTD
Natural Gas Marketing Segment 2008 2007 Change
Delivered gas $55,599 $44,320 $11,279
Asset optimization (10,339) 38,558 (48,897)
Unrealized margin 14,404 2,733 11,671
GROSS PROFIT $59,664 $85,611 ($25,947)
Net physical position (Bcf) 17.5 21.5 (4.0)
Nine Months Ended June 30
(In thousands, except physical position)
Natural Gas Marketing Segment
36
Nonregulated OperationsAtmos Energy Marketing
We commercially manage our storage assets by capturing arbitrage value through optimization strategies that create embedded (forward) value in the portfolio. We financially report the transactions for external reporting purposes in accordance with generally accepted accounting principles (“GAAP”).
GAAP Reported Value is the period to period net change in fair value of the portfolio reported in the income statement that results from the process of marking to market the physical storage volumes and corresponding financial instruments in an interim period.
Economic Value is the period to period forward margin of our storage portfolio that results from the process of calculating our weighted average cost of inventory (WACOG), and our weighted average sales price of our forward financials (WASP), then multiplying the difference times inventory volumes. This margin will be realized in cash when the hedged transaction is executed or when financials are settled and then reset to stay hedged against physical volumes.
• Economic Value represents the “forward” economic margin of the transactions, while GAAP reported results reflect that portion of our “forward” margin that has been recorded in the income statement.
• Volatility in earnings includes the impact of the accounting treatment of our storage portfolio in accordance with GAAP and is reflective of relatively high price volatility of the prompt month, and the relatively low volatility of the offsetting forward months.
Economic Value vs. GAAP Reported Results
37
Reported GAAPValue
- Physical and FinancialPositions
$34.3 MM
Reported GAAPValue
- Physical and FinancialPositions
$34.3 MM
Economic Value*(Commercial Value)
- Physical and FinancialPositions
$48.2 MM
Market Spread
*Potential Gross Profit$13.9 MM
* There is no assurance thatthe economic value or the potential gross profit will be fully realized in the future.
At June 30, 2008
Economic Value vs. GAAP Reported Results
Nonregulated OperationsAtmos Energy Marketing
38
Physical Period Volume Total Total TotalEnding (Bcf) WASP WACOG EV ($ in millions) ($ per mcf) ($ in millions) ($ per mcf) ($ in millions)
3/31/2007 19.6 8.2196 7.6701 0.5495 10.8 (1.2347) (24.2) 1.7842 35.06/30/2007 21.5 9.5409 7.6238 1.9171 41.2 (0.3343) (7.2) 2.2514 48.4
2007 Variance 1.9 1.3213$ (0.0463)$ 1.3676$ 30.4$ 0.9004 17.0$ 0.4672$ 13.4$
3/31/2008 20.7 8.6763 8.1555 0.5208 10.8 (0.0296) (0.6) 0.5504 11.46/30/2008 17.5 11.0565 8.3037 2.7528 48.2 1.9616 34.3 0.7912 13.9
2008 Variance (3.2) 2.3802$ 0.1482$ 2.2320$ 37.4$ 1.9912 34.9$ 0.2408$ 2.5$
($ per mcf)Economic Value (EV) Market SpreadGAAP Reported Value - MTM
WASP: Weighted average sales price for gas held in storageWACOG: Weighted average cost of AEM’s gas in storageEV: “Economic Value” which equals gas sales price (WASP) minus cost of gas (WACOG) on a per unit basis
Nonregulated OperationsAtmos Energy MarketingEconomic Value vs. GAAP Reported ResultsThree Months Ended
39
Physical Period Volume Total Total TotalEnding (Bcf) WASP WACOG EV ($ in millions) ($ per mcf) ($ in millions) ($ per mcf) ($ in millions)
9/30/2006 14.5 11.9716 7.8329 4.1387 60.0 (1.1076) (16.0) 5.2463 76.06/30/2007 21.5 9.5409 7.6238 1.9171 41.2 (0.3343) (7.2) 2.2514 48.4
2007 Variance 7.0 (2.4307)$ (0.2091)$ (2.2216)$ (18.8)$ 0.7733 8.8$ (2.9949)$ (27.6)$
9/30/2007 12.3 11.1547 7.8297 3.3250 40.8 0.8819 10.8 2.4431 30.06/30/2008 17.5 11.0565 8.3037 2.7528 48.2 1.9616 34.3 0.7912 13.9
2008 Variance 5.2 (0.0982)$ 0.4740$ (0.5722)$ 7.4$ 1.0797 23.5$ (1.6519)$ (16.1)$
($ per mcf)Economic Value (EV) Market SpreadGAAP Reported Value - MTM
WASP: Weighted average sales price for gas held in storageWACOG: Weighted average cost of AEM’s gas in storageEV: “Economic Value” which equals gas sales price (WASP) minus cost of gas (WACOG) on a per unit basis
Nonregulated OperationsAtmos Energy MarketingEconomic Value vs. GAAP Reported ResultsNine Months Ended