/2H5d 1$&%*'ATMOS ENERGY CORPORATION,'CONDENSED CONSOLIDATED BALANCE SHEETS'(In thousands)^December 31,^September 30, ^2001 ^2001^(Unaudited) 'ASSETS$ 'Property, plant and equipment "$ 2,148,347 "$ 2,109,8675 'Less accumulated depreciation and amortization "792,850 "774,469( 'Net property, plant and equipment "1,355,497 "1,335,398 'Current assets 'Cash and cash equivalents "12,785 "15,263-'Cash held on deposit in margin account "47,529 "66,666'Accounts receivable, net"233,602"124,046'Inventories "5,595 "6,041'Gas stored underground"109,356 "89,555-'Assets from risk management activities "69,601 "95,968'Deferred gas cost "2,509 "10,999+'Other current assets and prepayments "10,198 "15,713'Total current assets"491,175"424,251'Intangible assets "11,774 "12,125'Goodwill "64,941 "64,7458'Noncurrent assets from risk management activities "30,374 "29,771('Deferred charges and other assets"169,785"169,890"$ 2,123,546"$ 2,036,180+ 'SHAREHOLDERS' EQUITY AND LIABILITIES!'Shareholders' equity"'Common stock""$ 205""$ 204!#'Additional paid-in capital#"494,307#"489,948$'Retained earnings$"103,693 $"95,1324%'Accumulated other comprehensive income (loss) %"(783)%"(1,420)''Shareholders' equity'"597,422'"583,864('Long-term debt("679,057("692,399*'Total capitalization*"1,276,479*"1,276,263+'Current liabilities+,'Current maturities of long-term debt ,"20,413 ,"20,695-'Short-term debt-"207,136-"201,247/.'Accounts payable and accrued liabilities."204,191 ."84,471/'Taxes payable /"8,375 /"11,6200'Customers' deposits 0"30,065 0"32,35121'Liabilities from risk management activities 1"81,5581"119,484 2'Other current liabilities 2"34,596 2"41,161 4'Total current liabilities4"586,3344"511,0295'Deferred income taxes5"145,7315"138,934=6'Noncurrent liabilities from risk management activities 6"9,521 6"7,412-7'Deferred credits and other liabilities7"105,4817"102,5429"$ 2,123,5469"$ 2,036,180L;^See accompanying notes to condensed consolidated financial statements='ATMOS ENERGY CORPORATION>>'CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED),?'(In thousands, except per share data)A^Three months endedA^Three months endedB^December 31B^December 31 C^2001 C^2000E'Operating revenuesE"$ 271,342E"$ 442,790F'Purchased gas costF"161,977F"332,842H'Gross profitH"109,365H"109,948J'Gas trading margin J"7,163 J"--L'Operating expenses M'Operation and maintenance M"42,528 M"35,959$N'Depreciation and amortization N"20,474 N"15,781O'Taxes, other than income O"10,080 O"9,267Q'Total operating expenses Q"73,082 Q"61,007S'Operating income S"43,446 S"48,9416U'Equity in earnings of Woodward Marketing, L.L.C U"-- U"2,040%V'Miscellaneous income (expense) V"5,401V"(2,387)W'Interest charges, net W"15,992 W"12,246!Y'Income before income taxes Y"32,855 Y"36,348['Income taxes ["12,222 ["13,376]'Net income]"$ 20,633]"$ 22,972!_'Basic net income per share_"$ .51_"$ .70#a'Diluted net income per sharea"$ .50a"$ .70c'Cash dividends per sharec"$ .295c"$ .290+e'Weighted average shares outstanding: f'Basic f"40,837 f"32,810h'Diluted h"40,922 h"32,908Lk'See accompanying notes to condensed consolidated financial statementsm'ATMOS ENERGY CORPORATION6n'CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSo'(UNAUDITED)q'(In thousands)s^Three months endeds^Three months endedt^December 31t^December 31 u^2001 u^2000+x'Cash Flows From Operating Activitiesy'Net incomey"$ 20,633y"$ 22,972-z'Adjustments to reconcile net income to8{'net cash provided (used) by operating activities:%|'Depreciation and amortization:"}'Charged to depreciation and~'amortization ~"20,474 ~"15,781 'Charged to other accounts "693 "750&'Deferred income taxes (benefit) "6,421"(4,606) 'Other "(171) "--='Net assets/liabilities from risk management activities"(8,035) "--5'Net change in operating assets and liabilities "16,587"(49,529)7'Net cash provided (used) by operating activities "56,602"(14,632)+'Cash Flows From Investing Activities'Capital expenditures"(28,009)"(19,464)'Acquisitions"(15,747) "--)'Retirements of property, plant and'equipment, net "123 "(147)('Proceeds from sale of assets, net "-- "6,625,'Net cash used in investing activities"(43,633)"(12,986)+'Cash Flows From Financing Activities1'Net increase (decrease) in short-term debt "5,889"(102,446)'Cash dividends paid"(12,072)"(9,285)"'Repayment of long-term debt"(13,624)"(7,893)'Issuance of common stock "4,360 "3,379)'Proceeds from equity offering, net "--"142,0437'Net cash provided (used) by financing activities"(15,447) "25,7980'Net decrease in cash and cash equivalents"(2,478)"(1,820)-'Cash and cash equivalents at beginning'of period "15,263 "7,379''Cash and cash equivalents at end'of period"$ 12,785"$ 5,559L'See accompanying notes to condensed consolidated financial statements