/2H)  d 1$&%*'ATMOS ENERGY CORPORATION'CONDENSED CONSOLIDATED !'BALANCE SHEETS (UNAUDITED)'(In thousands)^March 31,^September 30, ^1999 ^1998 'ASSETS$'Property, plant and equipment"$1,495,381"$1,446,420* 'Less accum. depreciation and amort. "553,836 "528,560 "---------- "----------( 'Net property, plant and equipment "941,545 "917,860 'Current assets 'Cash and cash equivalents  "14,609  "4,735'Accounts receivable, net"100,387 "34,887('Inventories of supplies and mdse. "14,710 "15,219'Gas stored underground "24,493 "48,909'Prepayments "3,007 "3,630"----------"----------'Total current assets"157,206"107,380('Deferred charges and other assets"122,912"116,150"----------"----------"$1,221,663"$1,141,390"=========="==========+'LIABILITIES AND SHAREHOLDERS' EQUITY'Shareholders' equity'Common stock"$ 154"$ 152!'Additional paid-in capital"283,152"271,637'Retained earnings"126,716 "99,369'Treasury stock "(91)"-"----------"----------!'Total shareholders' equity"409,931"371,158 'Long-term debt "386,640 "398,548!"----------!"----------"'Total capitalization""796,571""769,706#'Current liabilities+$'Current maturities of long-term debt $"18,996 $"57,783%'Notes payable%"112,147 %"66,400&'Accounts payable &"71,693 &"44,742''Taxes payable '"18,084 '"12,736('Customers' deposits ("10,805 ("12,029 )'Other current liabilities )"34,832 )"30,369*"----------*"---------- +'Total current liabilities+"266,557+"224,059,'Deferred income taxes ,"84,494 ,"80,213--'Deferred credits and other liabilities -"74,041 -"67,412."----------."----------/"$1,221,663/"$1,141,3900"==========0"==========2'ATMOS ENERGY CORPORATION)3'CONDENSED CONSOLIDATED STATEMENTS 4'OF INCOME (UNAUDITED),5'(In thousands, except per share data)7^Three months ended8^March 31, 9^1999 9^1998:^ :^ ;'Operating revenues;"$261,426;"$288,550<'Purchased gas cost<"149,031<"164,579="--------="-------->'Gross profit>"112,395>"123,971@'Operating expensesA'Operation A"34,312 A"33,227B'Maintenance B"1,156 B"2,288C'Litigation settlement C"3,250C"-$D'Depreciation and amortization D"13,800 D"11,876E'Taxes, other than income E"9,034 E"9,377F"--------F"--------G'Total operating expenses G"61,552 G"56,768H"--------H"--------I'Operating income I"50,843 I"67,203K'Other income K"2,355 K"2,241M'Interest charges, net M"8,166 M"9,336N"--------N"--------!O'Income before income taxes O"45,032 O"60,108Q'Income taxes Q"16,237 Q"22,710R"--------R"--------S'Net incomeS"$ 28,795S"$ 37,398T"========T"========!U'Basic net income per shareU"$ .95U"$ 1.26V"========V"========#W'Diluted net income per shareW"$ .94W"$ 1.25X"========X"========Y'Cash dividends per shareY"$ .275Y"$ .265Z"========Z"========+['Weighted average shares outstanding: \'Basic \"30,449 \"29,740]"========]"========^'Diluted ^"30,698 ^"29,965_"========_"========`'ATMOS ENERGY CORPORATION)a'CONDENSED CONSOLIDATED STATEMENTS b'OF INCOME (UNAUDITED),c'(In thousands, except per share data)e^Six months endedf^March 31, g^1999 g^1998h^ h^ i'Operating revenuesi"$471,653i"$583,881j'Purchased gas costj"268,050j"360,309k"--------k"--------l'Gross profitl"203,603l"223,572n'Operating expenseso'Operation o"70,190 o"69,268p'Maintenance p"3,827 p"4,769q'Litigation settlement q"3,250q"-$r'Depreciation and amortization r"27,400 r"23,784s'Taxes, other than income s"16,405 s"17,596t"--------t"--------u'Total operating expensesu"121,072u"115,417v"--------v"--------w'Operating income w"82,531w"108,155y'Other income y"4,075 y"3,004{'Interest charges, net {"17,239 {"18,645|"--------|"--------!}'Income before income taxes }"69,367 }"92,514'Income taxes "25,192 "34,994"--------"--------'Net income"$ 44,175"$ 57,520"========"========!'Basic net income per share"$ 1.45"$ 1.94"========"========#'Diluted net income per share"$ 1.44"$ 1.94"========"========'Cash dividends per share"$ .55"$ .53"========"========+'Weighted average shares outstanding: 'Basic "30,361 "29,654"========"========'Diluted "30,601 "29,668"========"========'ATMOS ENERGY CORPORATION)'CONDENSED CONSOLIDATED STATEMENTS  'OF CASH FLOWS (UNAUDITED)'(In thousands)^Six months ended^March 31, ^1999 ^1998^ ^ +'Cash Flows From Operating Activities'Net income"$44,175"$57,520*'Adjustments to reconcile net income3'to net cash provided by operating activities$'Depreciation and amortization/'Charged to depreciation and amortization "27,400 "23,784 'Charged to other accounts "2,100 "1,634&'Deferred income taxes (benefit) "4,281 "(342)5'Net change in operating assets and liabilities"(4,625) "7,457"-------"--------1'Net cash provided by operating activities  "73,33 "190,053+'Cash Flows From Investing Activities'Capital expenditures"(51,130)"(52,575)3'Retirements of property, plant and equipment"(2,055) "215"--------"--------,'Net cash used in investing activities"(53,185)"(52,360)+'Cash Flows From Financing Activities/'Net increase (decrease) in notes payable "45,747"(20,457)'Cash dividends paid"(16,828)"(15,828)"'Repayment of long-term debt"(50,695)"(8,522)'Issuance of common stock "11,504 "11,123"--------"--------,'Net cash used by financing activities"(10,272)"(33,684)"--------"--------0'Net increase in cash and cash equivalents "9,874 "4,0097'Cash and cash equivalents at beginning of period "4,735 "6,016"--------"--------1'Cash and cash equivalents at end of period"$14,609"$10,025"========"========