/2H<  d 1$&%*%'PART 1. FINANCIAL INFORMATION$'Item 1. Financial Statements'ATMOS ENERGY CORPORATION8'CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)'(In thousands)'' ^June 30,^September 30, ^2000 ^1999 'ASSETS$ 'Property, plant and equipment "$1,585,824 "$1,549,258* 'Less accum. depreciation and amort. "585,350 "583,476 "---------- "----------( 'Net property, plant and equipment "1,000,474 "965,782'Current assets 'Cash and cash equivalents "8,148 "8,585'Accounts receivable, net "83,657 "70,564('Inventories of supplies and mdse. "8,509 "8,209'Gas stored underground "30,576 "44,653'Prepayments "2,304 "3,142"----------"----------'Total current assets"133,194"135,153('Deferred charges and other assets"143,561"129,602"----------"----------"$1,277,229"$1,230,537"=========="==========+'LIABILITIES AND SHAREHOLDERS' EQUITY'Shareholders' equity'Common stock"$ 159"$ 156!'Additional paid-in capital"302,833"293,359'Retained earnings "95,801 "83,231&'Accumulated other comprehensive 'income  "1,946  "917!"----------!"----------"'Shareholders' equity""400,739""377,663#'Long-term debt#"368,781#"377,483$"----------$"----------%'Total capitalization%"769,520%"755,146&'Current liabilities+''Current maturities of long-term debt '"15,688 '"17,848('Short-term debt("163,882("168,304)'Accounts payable )"65,998 )"64,167*'Taxes payable *"17,275 *"848+'Customers' deposits +"8,471 +"9,657 ,'Other current liabilities ,"33,742 ,"25,951-"-----------"---------- .'Total current liabilities."305,056."286,775/'Deferred income taxes/"123,741/"112,610-0'Deferred credits and other liabilities 0"78,912 0"76,0061"----------1"----------2"$1,277,2292"$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 ;^Three<^ months ended<^ months ended=^June 30,=^June 30, >^2000 >^1999@'Operating revenues@"$152,362@"$109,590A'Purchased gas cost A"92,332 A"56,214B"--------B"--------C'Gross profit C"60,030 C"53,376E'Operating expensesF'Operation F"38,511 F"29,796G'Maintenance G"1,611 G"2,342$H'Depreciation and amortization H"15,138 H"14,043I'Taxes, other than income I"7,114 I"6,783J"--------J"--------K'Total operating expenses K"62,374 K"52,964L"--------L"--------M'Operating income (loss)M"(2,344) M"412O'Other income O"4,794 O"1,126Q'Interest charges, net Q"10,164 Q"9,689R"--------R"--------S'Loss before income taxesS"(7,714)S"(8,151)U'Income tax benefitU"(3,318)U"(2,856)V"--------V"--------W'Net lossW"$ (4,396)W"$ (5,295)X"========X"========+Y'Basic and diluted net loss per shareY"$ (.14)Y"$ (.17)Z"========Z"========['Cash dividends per share["$ .285["$ .275\"========\"========,]'Weighted average shares outstanding -^'Basic and diluted ^"31,501 ^"30,669_"========_"========Aa'See accompanying notes to condensed consolidated financialb'statements.d'ATMOS ENERGY CORPORATION>e'CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED),f'(In thousands, except per share data)'g'  g^Nine g^Nineh^ months endedh^ months endedi^June 30,i^June 30, j^2000 j^1999l'Operating revenuesl"$691,017l"$581,243m'Purchased gas costm"423,310m"324,264n"--------n"--------o'Gross profito"267,707o"256,979q'Operating expensesr'Operationr"106,202r"103,236s'Maintenance s"5,798 s"6,169$t'Depreciation and amortization t"48,128 t"41,443u'Taxes, other than income u"23,795 u"23,188v"--------v"--------w'Total operating expensesw"183,923w"174,036x"--------x"--------y'Operating income y"83,784 y"82,943{'Other income {"10,440 {"5,201}'Interest charges, net }"32,408 }"26,928~"--------~"--------!'Income before income taxes "61,816 "61,216'Income taxes "22,315 "22,336"--------"--------'Net income"$ 39,501"$ 38,880"========"========!'Basic net income per share"$ 1.26"$ 1.28"========"========#'Diluted net income per share"$ 1.25"$ 1.27"========"========'Cash dividends per share"$ .855"$ .825"========"========'Weighted average'shares outstanding: 'Basic "31,363 "30,464"========"========'Diluted "31,510 "30,710"========"========A'See accompanying notes to condensed consolidated financial'statements.'ATMOS ENERGY CORPORATIONB'CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)'(In thousands)('  ^Nine  ^Nine^months ended^ months ended^June 30,^June 30, ^2000 ^1999+'Cash Flows From Operating Activities'Net income"$39,501"$38,880*'Adjustments to reconcile net income('to net cash provided by operating'activities:%'Depreciation and amortization:"'Charged to depreciation and'amortization "48,128 "41,443 'Charged to other accounts "2,296 "3,024'Deferred income taxes "10,545 "6,270)'Net change in operating assets and'liabilities "16,947 "17,134"-------"--------'Net cash provided by'operating activities"117,417"106,751+'Cash Flows From Investing Activities,'Acquisition of Missouri assets of ANG"(32,000)"-'Capital expenditures"(54,347)"(79,782))'Retirements of property, plant and'equipment "1,231 "4,215"-------"--------,'Net cash used in investing activities"(85,116)"(75,567)+'Cash Flows From Financing Activities!'Net increase (decrease) in'short-term debt"(4,422) "43,828'Cash dividends paid"(26,931)"(25,327)"'Repayment of long-term debt"(10,862)"(56,724)'Issuance of common stock "9,477 "16,745"-------"--------,'Net cash used in financing activities"(32,738)"(21,478)"-------"--------*'Net increase (decrease) in cash and'cash equivalents "(437) "9,706-'Cash and cash equivalents at beginning'of period "8,585 "4,735"-------"--------''Cash and cash equivalents at end'of period"$ 8,148"$14,441"======="========A'See accompanying notes to condensed consolidated financial'statements.