2 5 I5 Arial5! Arial5" Arial5# Arial5$ Arial5% Arial Unicode MS5& Arial Unicode MS5'  Arial5(  Arial5) Arial5* Arial5+Arial !!""            !!!"!#!$!%%&  '& (% ) *%+%,& -% . /'0'1( 2' 3'4)5)6* 7) 8)9):);)<*=)>* @@ @@ @@ @ @  @ @ @ @ @@@  @@  @ @ @ @ @ @@ @  @  @  @  @  @  @  @ @ @  @  @  @  @  @ @ @ @ @ @ @  @@ @@ ! @ " @ # @ $ @ %@ @ & @ ' @ (@ @ ) @ * @@ + @ , @ - @ . @ / @ 0 @ 1 @ 2 @ 3@ @ 4 @ 5 @ 6 @ 7 @ 8@ @ 9@ @ :@ @ ;@@ < @@ >@@ ?@@ @@@ B@ @  C@ @  D@ @  E@ @ F @ G @ H@ @ I @ K @ M @@ N @ O @ P @ Q@ @ R @ S@ @ T @ V @ W @ X @ Y@ @ Z @ \ @ ]@ @ ^ @ _@ @ ` @ a@ @ b @ c@ @ d @ e@ @ g @@ h @ i@ @ j @ k@ @ l@@ m @@ o@@ p@@ q@@ s@ @  t@ @  u@ @  v@ @ w @ x @ y@ @ z @ | @ ~ @@  @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @@ @ @ @ @ @ @ @@ @@ @@ @@ @@ @@ @@ @ @  @ @  @ @  @ @ @@ @ @@ @@ @@ @@ @ @ @ @ @ @ @ @ @ @@ @ @ @@ @ @ @ @ @ @@ @ @ @ @ @ @ @ @ @ @ @ @@ @ @ @ @@ @ @ @ @@ @@ q@' q@' q@'q0*'ATMOS ENERGY CORPORATION+'CONDENSED CONSOLIDATED BALANCE SHEETS'(In thousands)^March 31,^September 30, ^2002 ^2001^(Unaudited) 'ASSETS#'Property, plant and equipment"$ 2,178,997"$ 2,109,8674 'Less accumulated depreciation and amortization "810,193 "774,469' 'Net property, plant and equipment "1,368,804 "1,335,398 'Current assets 'Cash and cash equivalents "3,113 "15,263,'Cash held on deposit in margin account "26,611 "66,666'Accounts receivable, net "226,259 "124,046'Inventories "5,420 "6,041'Gas stored underground "55,906 "89,555,'Assets from risk management activities "11,311 "95,968'Deferred gas cost"-- "10,999*'Other current assets and prepayments "5,271 "15,713'Total current assets "333,891 "424,251'Intangible assets "11,423 "12,125'Goodwill "65,228 "64,7457'Noncurrent assets from risk management activities "11,590 "29,771''Deferred charges and other assets "169,466 "169,890"$ 1,960,402"$ 2,036,180*'SHAREHOLDERS' EQUITY AND LIABILITIES 'Shareholders' equity!'Common stock!"$ 206!"$ 204 "'Additional paid-in capital ""498,887 ""489,948#'Retained earnings #"132,945 #"95,1323$'Accumulated other comprehensive income (loss) $"(1,159) $"(1,420)&'Shareholders' equity &"630,879 &"583,864''Long-term debt '"678,985 '"692,399)'Total capitalization)"1,309,864)"1,276,263*'Current liabilities*+'Current maturities of long-term debt +"20,413 +"20,695,'Short-term debt ,"42,561 ,"201,247.-'Accounts payable and accrued liabilities -"163,112 -"84,471.'Taxes payable ."47,387 ."11,620/'Customers' deposits /"31,760 /"32,35110'Liabilities from risk management activities 0"10,129 0"119,4841'Deferred gas cost 1"35,4881"--2'Other current liabilities 2"42,275 2"41,1614'Total current liabilities 4"393,125 4"511,0295'Deferred income taxes 5"131,183 5"138,934<6'Noncurrent liabilities from risk management activities 6"6,682 6"7,412,7'Deferred credits and other liabilities 7"119,548 7"102,5429"$ 1,960,4029"$ 2,036,180K<^See accompanying notes to condensed consolidated financial statements>'ATMOS ENERGY CORPORATION=?'CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)+@'(In thousands, except per share data)B^Three months endedB^Three months endedC^March 31C^March 31 D^2002 D^2001F'Operating revenuesF"$ 379,481F"$ 675,113G'Purchased gas cost G"229,598 G"536,789I'Gross profit I"149,883 I"138,324K'Gas trading margin K"9,604K"--M'Operating expensesN'Operation and maintenance N"42,254 N"34,984#O'Depreciation and amortization O"20,039 O"15,905P'Taxes, other than income P"10,861 P"13,544R'Total operating expenses R"73,154 R"64,433T'Operating income T"86,333 T"73,8915V'Equity in earnings of Woodward Marketing, L.L.CV"-- V"6,022$W'Miscellaneous income (expense) W"(6,112) W"317X'Interest charges, net X"14,489 X"9,817 Z'Income before income taxes Z"65,732 Z"70,413\'Income taxes \"24,354 \"26,339^'Net income^"$ 41,378^"$ 44,074 `'Basic net income per share`"$ 1.01`"$ 1.14"b'Diluted net income per shareb"$ 1.01b"$ 1.13'd'Cash dividends declared per shared"$ .295d"$ .290*g'Weighted average shares outstanding: h'Basic h"41,040 h"38,815 j'Diluted j"41,135 j"38,919Km'See accompanying notes to condensed consolidated financial statementso'ATMOS ENERGY CORPORATION=p'CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)+q'(In thousands, except per share data)s^Six months endeds^Six months endedt^March 31t^March 31 u^2002 u^2001w'Operating revenuesw"$ 650,823w"$ 1,117,903x'Purchased gas cost x"391,575 x"869,631z'Gross profit z"259,248 z"248,272|'Gas trading margin |"16,767|"--~'Operating expenses'Operation and maintenance "84,782 "70,943#'Depreciation and amortization "40,513 "31,686'Taxes, other than income "20,941 "22,811'Total operating expenses "146,236 "125,440'Operating income "129,779 "122,8325'Equity in earnings of Woodward Marketing, L.L.C"-- "8,062$'Miscellaneous income (expense) "(711) "(2,070)'Interest charges, net "30,481 "22,063 'Income before income taxes "98,587 "106,761'Income taxes "36,576 "39,715'Net income"$ 62,011"$ 67,046 'Basic net income per share"$ 1.51"$ 1.87"'Diluted net income per share"$ 1.51"$ 1.87''Cash dividends declared per share"$ .590"$ .580*'Weighted average shares outstanding: 'Basic "40,937 "35,780 'Diluted "41,032 "35,879K'See accompanying notes to condensed consolidated financial statements'ATMOS ENERGY CORPORATION5'CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS'(UNAUDITED)'(In thousands)^Six months ended^Six months ended^March 31^March 31 ^2002 ^2001*'Cash Flows From Operating Activities'Net income"$ 62,011"$ 67,046,'Adjustments to reconcile net income to0'net cash provided by operating activities:$'Depreciation and amortization:!'Charged to depreciation and'amortization "40,513 "31,686'Charged to other accounts "1,364 "1,475%'Deferred income taxes (benefit) "(7,905)"(31,018) 'Other "(1,115)"--<'Net assets/liabilities from risk management activities "(5,229)"--4'Net change in operating assets and liabilities "163,212 "45,839/'Net cash provided by operating activities "252,851 "115,028*'Cash Flows From Investing Activities'Capital expenditures"(60,869)"(42,507)'Acquisitions"(15,747)"--('Retirements of property, plant and'equipment, net "(746) "745''Proceeds from sale of assets, net"-- "6,625+'Net cash used in investing activities"(77,362)"(35,137)*'Cash Flows From Financing Activities%'Net decrease in short-term debt"(158,686)"(197,060)'Cash dividends paid"(24,198)"(20,567)!'Repayment of long-term debt"(13,696)"(10,778)'Issuance of common stock "8,941 "6,715('Proceeds from equity offering, net"-- "142,043+'Net cash used by financing activities"(187,639)"(79,647):'Net increase (decrease) in cash and cash equivalents"(12,150) "244,'Cash and cash equivalents at beginning'of period "15,263 "7,379&'Cash and cash equivalents at end'of period"$ 3,113"$ 7,623K'See accompanying notes to condensed consolidated financial statements 6Sheet1 6Sheet2 6Sheet3d_ ArialArial    O4!*d"""dFM3FM3 PropertyWK3WK3 Property  : $9: :$9: :CMHdr: