/2H8d 1$&%*'ATMOS ENERGY CORPORATION,'CONDENSED CONSOLIDATED BALANCE SHEETS'(In thousands)^December 31,^September 30, ^2000 ^2000^(Unaudited) 'ASSETS$'Property, plant and equipment"$ 1,592,248"$ 1,579,8030 'Less accum. depreciation and amortization "610,166 "597,457 "-------------- "-------------( 'Net property, plant and equipment "982,082 "982,346 'Current assets 'Cash and cash equivalents  "5,559  "7,379'Accounts receivable, net"357,760"114,448''Inventories of supplies and mdse "6,740 "6,456'Gas stored underground "76,713 "64,222'Prepayments "6,447 "8,101"--------------"-------------'Total current assets"453,219"200,606('Deferred charges and other assets"164,713"165,806"--------------"-------------"$ 1,600,014"$ 1,348,758"=============="=============+'SHAREHOLDERS' EQUITY AND LIABILITIES'Shareholders' equity'Common stock"$ 194"$ 160!'Additional paid-in capital"452,275"306,887'Retained earnings "96,841 "83,1544'Accumulated other comprehensive income (loss)"(2,891) "2,265"--------------"------------- 'Shareholders' equity "546,419 "392,466!'Long-term debt!"357,241!"363,198""--------------""-------------#'Total capitalization#"903,660#"755,664$'Current liabilities+%'Current maturities of long-term debt %"15,630 %"17,566&'Short-term debt&"147,601&"250,047''Accounts payable'"259,314 '"73,031('Taxes payable ("29,113 ("10,844)'Customers' deposits )"12,926 )"9,923 *'Other current liabilities *"23,446 *"21,085+"--------------+"------------- ,'Total current liabilities,"488,030,"382,496-'Deferred income taxes-"126,127-"131,619-.'Deferred credits and other liabilities ."82,197 ."78,979/"--------------/"-------------0"$ 1,600,0140"$ 1,348,7581"==============1"=============M3^See accompanying notes to condensed consolidated financial statements.5'ATMOS ENERGY CORPORATION>6'CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED),7'(In thousands, except per share data)9^Three months ended9^Three months ended:^December 31,:^December 31, ;^2000 ;^1999='Operating revenues="$ 442,790="$ 224,458>'Purchased gas cost>"332,842>"134,908@'Gross profit@"109,948 @"89,550B'Operating expensesC'Operation C"34,269 C"33,082D'Maintenance D"1,690 D"2,342$E'Depreciation and amortization E"15,781 E"16,500F'Taxes, other than income F"9,267 F"7,485H'Total operating expenses H"61,007 H"59,409J'Operating income J"48,941 J"30,141L'Other income (expense) L"(347) L"3,958N'Interest charges, net N"12,246 N"11,217!P'Income before income taxes P"36,348 P"22,882R'Income taxes R"13,376 R"8,558T'Net incomeT"$ 22,972T"$ 14,324!V'Basic net income per shareV"$ .70V"$ .46#X'Diluted net income per shareX"$ .70X"$ .46Z'Cash dividends per shareZ"$ .290Z"$ .285+\'Weighted average shares outstanding: ]'Basic ]"32,810 ]"31,122_'Diluted _"32,908 _"31,339Ma'See accompanying notes to condensed consolidated financial statements.c'ATMOS ENERGY CORPORATION6d'CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSe'(UNAUDITED)f'(In thousands)g^Three months endedg^Three months endedh^December 31,h^December 31, i^2000 i^1999+j'Cash Flows From Operating Activitiesk'Net incomek"$ 22,972k"$ 14,324-l'Adjustments to reconcile net income to-m'net cash used by operating activities:%n'Depreciation and amortization:"o'Charged to depreciation andp'amortization p"15,781 p"16,500 q'Charged to other accounts q"750 q"1,151&r'Deferred income taxes (benefit)r"(4,606) r"8,511)s'Net change in operating assets andt'liabilitiest"(49,529)t"(77,483),v'Net cash used by operating activitiesv"(14,632)v"(36,997)+x'Cash Flows From Investing Activitiesy'Capital expendituresy"(19,464)y"(17,472))z'Retirements of property, plant and{'equipment, net {"(147) {"845+|'Proceeds from sale of utility assets |"6,625|"-,~'Net cash used in investing activities~"(12,986)~"(16,627)+'Cash Flows From Financing Activities1'Net increase (decrease) in short-term debt"(102,446) "81,082'Cash dividends paid"(9,285)"(8,925)"'Repayment of long-term debt"(7,893)"(6,997)'Issuance of common stock "3,379 "5,048)'Proceeds from equity offering, net"142,043"-0'Net cash provided by financing activities "25,798 "70,208/'Net increase (decrease) in cash and cash'equivalents"(1,820) "16,584-'Cash and cash equivalents at beginning'of period "7,379 "8,585''Cash and cash equivalents at end'of period"$ 5,559"$ 25,169M'See accompanying notes to condensed consolidated financial statements.