/2H> d 1$&|&A%|Page #*'ATMOS ENERGY CORPORATION6'CONSOLIDATED BALANCE SHEETS ('(In thousands, except share data)"September 30, "September 30,  "--------"-------- 'ASSETS$'Property, plant and equipment #A !A 'Construction in progress  [.   "-------- "--------  V$A  >+"A/ 'Less accumulated depreciation and amort.  8A  XU A "-------- "--------('Net property, plant and equipment =A +A'Current assets 'Cash and cash equivalents  *'Accounts receivable, less allowance''for doubtful accounts of $716 in'1996 and $916 in 1995 b Zd'Inventories  ['Gas stored underground <9 *'Prepayments   "--------"--------'Total current assets @ @('Deferred charges and other assets  @ @"--------"-------- A \5A%'CAPITALIZATION AND LIABILITIES"========"========'Shareholders' equity2'Common stock, no par value (stated at $.0050'per share); authorized 75,000,000 shares;/ 'issued and outstanding 1996 - 16,021,321'!'shares, 1995 - 15,519,112 shares !P !N!"'Additional paid-in capital "`&@ "@#'Retained earnings #@ #?@$"--------$"--------!%'Total shareholders' equity %PA %0RA&'Long-term debt &@ &8A'"--------'"--------('Total capitalization ($A (A)'Current liabilities+*'Current maturities of long-term debt *(# *X+'Notes payable to banks +@ +[@,'Accounts payable ,{ ,qa-'Taxes payable - -.'Customers' deposits .& .$ /'Other current liabilities /) /)0"--------0"-------- 1'Total current liabilities 1@$@ 1S@2'Deferred income taxes 2@ 2,@-3'Deferred credits and other liabilities 3@ 3q@4"--------4"-------- 5A 5\5A6"========6"========D7'See accompanying notes to consolidated financial statements. >'ATMOS ENERGY CORPORATION(?'CONSOLIDATED STATEMENTS OF INCOMEA'Year ended September 30,'B'--------------------------------,C'(In thousands, except per share data) E E EF"--------F"--------F"--------H'Operating revenues HA HA HAI'Purchased gas cost IA I(hA I<AJ"--------J"--------J"--------K'Gross profit K@A KcA KhAM'Operating expensesN'Operation Np7@ Np^@ N@~@O'Maintenance Ot O O$P'Depreciation and amortization PqQ PQ PIQ'Taxes, other than income QA Q@ QAR'Income taxes R3 Rf% RS"--------S"--------S"--------T'Total operating expenses THA THoA TXNAU"--------U"--------U"--------W'Operating income W@ Wy~ WbgX'Other income (expense)Y'Interest income Yq Y YZ'Other, net Zg Z ZO["--------["--------["--------\'Total other income]'(expense) ] ] ]_'Interest charges _j9 _5 _0`"--------`"--------`"--------b'Net income b] bI bW9c"========c"========c"========d'Net income per share d)\(? dQ? d ףp= ?e"========e"========e"========f'Cash dividends per share fQ? fq= ףp? f)\(?g"========g"========g"========!h'Average shares outstanding h> h8< h[;i"========i"========i"========Ck'See accompanying notes to consolidated financial statements.q'ATMOS ENERGY CORPORATION,r'CONSOLIDATED STATEMENTS OF CASH FLOWSt'Year ended September 30, u'-------------------------v'(In thousands) x x xy"-------y"--------y"-------+z'CASH FLOWS FROM OPERATING ACTIVITIES{'Net income {] {I {W9*|'Adjustments to reconcile net income(}'to net cash provided by operating~'activities$'Depreciation and amortization"'Charged to depreciation and'amortization qQ Q I 'Charged to other accounts   'Deferred income taxes 8   'Other   5"-------"-------"------- `@ @s@ ;@''Change in assets and liabilities&'(Increase) decrease in accounts'receivable   ")'(Increase) decrease in inventories U  ('(Increase) decrease in gas stored'underground  k R)'(Increase) decrease in prepayments  J ''Decrease in deferred charges and'other assets v  &'Increase (decrease) in accounts'payable '  (#'Increase (decrease) in taxes'payable F 2 &'Increase in customers' deposits  >  'Increase in other current'liabilities !  G''Increase in deferred credits and'other liabilities 9 . !"-------"-------"-------%'Net cash provided by operating'activities @~@ @ !@+'CASH FLOWS FROM INVESTING ACTIVITIES'Capital expenditures   `)'Retirements of property, plant and'equipment   r"-------"-------"-------!'Net cash used in investing'activities  @b  +'CASH FLOWS FROM FINANCING ACTIVITIES''Net increase (decrease) in notes'payable tr  W 'Proceeds from issuance of'long-term debt"- @"-"'Repayment of long-term debt  ` ''Cash dividends and distributions 'paid }  D'Issuance of common stock v  "-------"-------"-------%'Net cash provided by financing'activities *  "-------"-------"-------*'Net increase (decrease) in cash and'cash equivalents  ( #'Cash and cash equivalents at'beginning of year   "-------"-------"-------''Cash and cash equivalents at end'of year    "======="======="=======D'See accompanying notes to consolidated financial statements.