/2H%d 1$&%*'ATMOS ENERGY CORPORATION'CONDENSED CONSOLIDATED !'BALANCE SHEETS (UNAUDITED)'(In thousands)^December 31,^September 30, ^1999 ^1999 'ASSETS$'Property, plant and equipment"$1,565,924"$1,549,258* 'Less accum. depreciation and amort. "601,166 "583,476 "---------- "----------( 'Net property, plant and equipment "964,758 "965,782 'Current assets 'Cash and cash equivalents  "25,169  "8,585'Accounts receivable, net"163,653 "70,564('Inventories of supplies and mdse. "7,902 "8,209'Gas stored underground "54,936 "44,653'Prepayments "2,783 "3,142"----------"----------'Total current assets"254,443"135,153('Deferred charges and other assets"134,934"129,602"----------"----------"$1,354,135"$1,230,537+'LIABILITIES AND SHAREHOLDERS' EQUITY"=========="=========='Shareholders' equity'Common stock"$ 157"$ 156!'Additional paid-in capital"298,406"293,359'Retained earnings "88,630 "83,231&'Accumulated other comprehensive 'income "2,362 "917"----------"----------!'Total shareholders' equity"389,555"377,663 'Long-term debt "372,815 "377,483!"----------!"----------"'Total capitalization""762,370""755,146#'Current liabilities+$'Current maturities of long-term debt $"15,519 $"17,848%'Short-term debt%"249,386%"168,304&'Accounts payable &"95,040 &"64,167''Taxes payable '"529 '"848('Customers' deposits ("8,369 ("9,657 )'Other current liabilities )"23,230 )"25,951*"----------*"---------- +'Total current liabilities+"392,073+"286,775,'Deferred income taxes,"121,944,"112,610--'Deferred credits and other liabilities -"77,748 -"76,006."----------."----------/"$1,354,135/"$1,230,5370"==========0"==========+2'See accompanying notes to condensed )3'consolidated financial statements.5'ATMOS ENERGY CORPORATION6'CONDENSED CONSOLIDATED '7'STATEMENTS OF INCOME (UNAUDITED),8'(In thousands, except per share data)9^Three months ended9^Three months ended:^ December 31,:^ December 31,;^------------;^------------------- <^1999 <^1998=^ =^ >'Operating revenues>"$224,458>"$210,227?'Purchased gas cost?"134,908?"119,019@"--------@"--------A'Gross profit A"89,550 A"91,208C'Operating expensesD'Operation D"33,082 D"35,878E'Maintenance E"2,342 E"2,671$F'Depreciation and amortization F"16,500 F"13,600G'Taxes, other than income G"7,485 G"7,371H"--------H"--------I'Total operating expenses I"59,409 I"59,520J"--------J"--------K'Operating income K"30,141 K"31,688M'Other income M"3,958 M"1,720O'Interest charges, net O"11,217 O"9,073P"--------P"--------!Q'Income before income taxes Q"22,882 Q"24,335S'Income taxes S"8,558 S"8,955T"--------T"--------U'Net incomeU"$ 14,324U"$ 15,380V"========V"========!W'Basic net income per shareW"$ .46W"$ .51X"========X"========#Y'Diluted net income per shareY"$ .46Y"$ .50Z"========Z"========['Cash dividends per share["$ .285["$ .275\"========\"========]'Weighted average^'shares outstanding: `'Basic `"31,122 `"30,273a"========a"========b'Diluted b"31,339 b"30,516c"========c"========+e'See accompanying notes to condensed )f'consolidated financial statements.h'ATMOS ENERGY CORPORATION(i'CONDENSED CONSOLIDATED STATEMENTSj' OF CASH FLOWSk'(UNAUDITED)l'(In thousands)n^Three months endedn^Three months endedo^December 31,o^December 31,p^----------p^---------- q^1999 q^1998r^--------r^--------+s'Cash Flows From Operating Activitiest'Net incomet"$14,324t"$ 15,380*u'Adjustments to reconcile net income$v'to net cash used by operatingw'activities:%x'Depreciation and amortization:"y'Charged to depreciation andz'amortization z"16,500 z"13,600 {'Charged to other accounts {"1,151 {"1,020|'Deferred income taxes |"8,511 |"2,180)}'Net change in operating assets and~'liabilities~"(77,483)~"(53,027)"--------"--------,'Net cash used by operating activities"(36,997)"(20,847)+'Cash Flows From Investing Activities'Capital expenditures"(17,472)"(19,900))'Retirements of property, plant and'equipment "845"(1,064)"--------"--------,'Net cash used in investing activities"(16,627)"(20,964)+'Cash Flows From Financing Activities&'Net increase in short-term debt "81,082"101,594'Cash dividends paid"(8,925)"(8,392)"'Repayment of long-term debt"(6,997)"(47,944)'Issuance of common stock "5,048 "6,538"--------"--------'Net cash provided by'financing activities "70,208 "51,796"--------"--------0'Net increase in cash and cash equivalents "16,584 "9,985-'Cash and cash equivalents at beginning'of period "8,585 "4,735"--------"--------''Cash and cash equivalents at end'of period"$25,169"$ 14,720;" ========" ======== 'See accompanying notes to4' condensed consolidated financial statements.