/2 H=d 1$&%*%'PART 1. FINANCIAL INFORMATION$'Item 1. Financial Statements'ATMOS ENERGY CORPORATION8'CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)'(In thousands)'' ^March 31,^September 30, ^2000 ^1999 'ASSETS$ 'Property, plant and equipment "$1,574,105 "$1,549,258* 'Less accum. depreciation and amort. "606,716 "583,476 "---------- "----------( 'Net property, plant and equipment "967,389 "965,782'Current assets 'Cash and cash equivalents "22,994 "8,585'Accounts receivable, net"119,116 "70,564('Inventories of supplies and mdse. "8,199 "8,209'Gas stored underground "19,013 "44,653'Prepayments "2,381 "3,142"----------"----------'Total current assets"171,703"135,153('Deferred charges and other assets"137,589"129,602"----------"----------"$1,276,681"$1,230,537"=========="==========+'LIABILITIES AND SHAREHOLDERS' EQUITY'Shareholders' equity'Common stock"$ 158"$ 156!'Additional paid-in capital"300,053"293,359'Retained earnings"109,212 "83,231&'Accumulated other comprehensive 'income  "2,753  "917!"----------!"----------!"'Total shareholders' equity""412,176""377,663#'Long-term debt#"372,543#"377,483$"----------$"----------%'Total capitalization%"784,719%"755,146&'Current liabilities+''Current maturities of long-term debt '"14,475 '"17,848('Short-term debt("126,739("168,304)'Accounts payable )"83,963 )"64,167*'Taxes payable *"28,777 *"848+'Customers' deposits +"7,894 +"9,657 ,'Other current liabilities ,"33,426 ,"25,951-"-----------"---------- .'Total current liabilities."295,274."286,775/'Deferred income taxes/"117,643/"112,610-0'Deferred credits and other liabilities 0"79,045 0"76,0061"----------1"----------2"$1,276,6812"$1,230,5373"==========3"==========A5'See accompanying notes to condensed consolidated financial6'statements.8'ATMOS ENERGY CORPORATION>9'CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED),:'(In thousands, except per share data)';' <^Three months ended<^Three months ended=^March 31,=^March 31, >^2000 >^1999@'Operating revenues@"$314,197@"$261,426A'Purchased gas costA"196,070A"149,031B"--------B"--------C'Gross profitC"118,127C"112,395E'Operating expensesF'Operation F"34,609 F"37,562G'Maintenance G"1,845 G"1,156$H'Depreciation and amortization H"16,490 H"13,800I'Taxes, other than income I"9,196 I"9,034J"--------J"--------K'Total operating expenses K"62,140 K"61,552L"--------L"--------M'Operating income M"55,987 M"50,843O'Other income O"1,688 O"2,355Q'Interest charges, net Q"11,027 Q"8,166R"--------R"--------!S'Income before income taxes S"46,648 S"45,032U'Income taxes U"17,075 U"16,237V"--------V"--------W'Net incomeW"$ 29,573W"$ 28,795X"========X"========!Y'Basic net income per shareY"$ .94Y"$ .95Z"========Z"========#['Diluted net income per share["$ .94["$ .94\"========\"========]'Cash dividends per share]"$ .285]"$ .275^"========^"========_'Weighted average`'shares outstanding: b'Basic b"31,332 b"30,449c"========c"========d'Diluted d"31,544 d"30,698e"========e"========Ag'See accompanying notes to condensed consolidated financialh'statements.j'ATMOS ENERGY CORPORATION>k'CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED),l'(In thousands, except per share data)'m' n^Six months endedn^Six months endedo^March 31,o^March 31, p^2000 p^1999q" q" r'Operating revenuesr"$538,655r"$471,653s'Purchased gas costs"330,978s"268,050t"--------t"--------u'Gross profitu"207,677u"203,603w'Operating expensesx'Operation x"67,691 x"73,440y'Maintenance y"4,187 y"3,827$z'Depreciation and amortization z"32,990 z"27,400{'Taxes, other than income {"16,681 {"16,405|"--------|"--------}'Total operating expenses}"121,549}"121,072~"--------~"--------'Operating income "86,128 "82,531'Other income "5,646 "4,075'Interest charges, net "22,244 "17,239"--------"--------!'Income before income taxes "69,530 "69,367'Income taxes "25,633 "25,192"--------"--------'Net income"$ 43,897"$ 44,175"========"========!'Basic net income per share"$ 1.41"$ 1.45"========"========#'Diluted net income per share"$ 1.40"$ 1.44"========"========'Cash dividends per share"$ .57"$ .55"========"========'Weighted average'shares outstanding: 'Basic "31,226 "30,361"========"========'Diluted "31,440 "30,601"========"========A'See accompanying notes to condensed consolidated financial'statements.'ATMOS ENERGY CORPORATIONB'CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)'(In thousands)(' ^Six months ended^Six months ended^March 31,^March 31, ^2000 ^1999" " +'Cash Flows From Operating Activities'Net income"$43,897"$44,175*'Adjustments to reconcile net income('to net cash provided by operating'activities:%'Depreciation and amortization:"'Charged to depreciation and'amortization "32,990 "27,400 'Charged to other accounts "2,290 "2,100'Deferred income taxes "3,987 "4,281)'Net change in operating assets and'liabilities "29,230"(4,625)"-------"--------'Net cash provided by'operating activities"112,394 "73,331+'Cash Flows From Investing Activities'Capital expenditures"(38,400)"(51,130))'Retirements of property, plant and'equipment "1,513"(2,055)"-------"--------,'Net cash used in investing activities"(36,887)"(53,185)+'Cash Flows From Financing Activities/'Net increase(decrease) in short-term deb"t (41,565) "45,747'Cash dividends paid"(17,916)"(16,828)"'Repayment of long-term debt"(8,313)"(50,695)'Issuance of common stock "6,696 "11,504"-------"--------,'Net cash used in financing activities"(61,098)"(10,272)"-------"--------0'Net increase in cash and cash equivalents "14,409 "9,874-'Cash and cash equivalents at beginning'of period "8,585 "4,735"-------"--------''Cash and cash equivalents at end'of period"$22,994"$14,609"======="========A'See accompanying notes to condensed consolidated financial'statements.