Atmos Energy Corporation (NYSE: ATO), headquartered in Dallas, Texas,[1] is the largest distributor of natural gas in the United States, serving 3.2 million customers nationwide.[2][3] Atmos acquired TXU's natural gas and pipeline holdings in 2004. The company began as Energas in 1983, a spinoff of the natural gas distribution division of Pioneer Corporation. In 1988, the company changed its name to Atmos and began trading on the New York Stock Exchange.[4] Atmos Energy is incorporated in Virginia and Texas.
Atmos Energy Corporation (Atmos Energy) incorporated in 1983, is engaged primarily in the regulated natural gas distribution and transmission and storage businesses, as well as other non-regulated natural gas businesses. The Company distributes natural gas through regulated sales and transportation arrangements to over three million residential, commercial, public authority and industrial customers in 12 states located primarily in the South. It also operates an intrastate pipelines in Texas based on miles of pipe. Through its non-regulated businesses, Atmos Energy primarily provides natural gas management and marketing services to municipalities, other local gas distribution companies and industrial customers principally in the Midwest and Southeast and natural gas transportation along with storage services to certain of its natural gas distribution divisions and third parties. The Company operates in four segments: natural gas distribution segment, which includes its regulated natural gas distribution and related sales operations; regulated transmission and storage segment, which includes the regulated pipeline and storage operations of its Atmos Pipeline-Texas Division; natural gas marketing segment, which includes a variety of non-regulated natural gas management services, and pipeline, storage and other segment, which is comprised of its non-regulated natural gas gathering, transmission and storage services.
Natural Gas Distribution
The Company’s natural gas distribution segment consists of six regulated divisions: Atmos Energy Mid-Tex Division, Atmos Energy Kentucky/Mid-States Division, Atmos Energy Louisiana Division, Atmos Energy West Texas Division, Atmos Energy Colorado-Kansas Division and Atmos Energy Mississippi Division. Its Kentucky/Mid-States Division operates in more than 420 communities across Georgia, Illinois, Iowa, Kentucky, Missouri, Tennessee and Virginia. The service areas in these states are primarily rural; however, this division serves Franklin, Tennessee, and other suburban areas of Nashville. In Louisiana, Atmos Energy serves nearly 300 communities, including the suburban areas of New Orleans, the metropolitan area of Monroe and western Louisiana. Its West Texas Division serves approximately 80 communities in West Texas, including the Amarillo, Lubbock and Midland areas. Its Colorado-Kansas Division serves approximately 170 communities throughout Colorado and Kansas and parts of Missouri, including the cities of Olathe, Kansas, a suburb of Kansas City and Greeley, Colorado, located near Denver. In Mississippi, the Company serves about 110 communities throughout the northern half of the state, including the Jackson metropolitan area.
Regulated Transmission and Storage
Atmos Energy’s regulated transmission and storage segment consists of the regulated pipeline and storage operations of its Atmos Pipeline-Texas Division. This division transports natural gas to its Mid-Tex Division, transports natural gas for third parties and manages five underground storage reservoirs in Texas. We also provide ancillary services customary in the pipeline industry including parking arrangements, lending and sales of excess gas. Lending services provide short-term interruptible loans of natural gas from its pipeline to meet market demands.
Natural Gas Marketing
The Company’s natural gas marketing activities are conducted through Atmos Energy Marketing (AEM), which is wholly owned by Atmos Energy Holdings, Inc. (AEH). AEH is a wholly owned subsidiary of AEC and operates primarily in the Midwest and Southeast areas of the United States. AEM’s primary business is to aggregate and purchase gas supply, arrange transportation and storage logistics and deliver gas to customers.
Pipeline, Storage and Other
The Company’s pipeline, storage and other segment primarily consists of the operations of Atmos Pipeline and Storage, LLC (APS), which is wholly owned by AEH. APS is engaged in non-regulated transmission, storage and natural gas gathering services. Its primary asset is a proprietary 21 mile pipeline located in New Orleans, Louisiana. It also owns or controls additional pipeline and storage capacity including interests in underground storage fields in Kentucky and Louisiana. APS’ primary business is to provide storage and transportation services to its Louisiana and Kentucky/Mid-States regulated natural gas distribution divisions.
OVERALL
Beta: 0.53
Market Cap (Mil.): $3,162.74
Shares Outstanding (Mil.): 90.65
Annual Dividend: 1.36
Yield (%): 3.90
FINANCIALS
ATO Industry Sector
P/E (TTM): 17.44 19.30 22.13
EPS (TTM): -11.13 -- --
ROI: 3.26 2.05 1.23
ROE: 8.15 4.14 2.74
The origins of Atmos Energy comes from Amarillo Gas Company which was founded by brothers Frank and J.C. Storm in 1906 [1]. It was founded in order to manufacture coal gas on the Texas frontier. In 1918 it discovered the largest natural gas field in the world, and hence subsequently Amarillo changed its focus to the production of natural gas. Two years later it delivered its first locally produced natural gas.
In 1924 Amarillo Gas, Amarillo Oil and other businesses became part of a new public utility holding company, Southwestern Development Company. Over the years, through various business combinations and mergers, the company became known as Pioneer Corporation, a large diversified West Texas energy company. In 1983 Energas, the natural gas distribution division of Pioneer, was spun off and became an independent, publicly held natural gas distribution company. In October 1988, Energas changed its corporate name to Atmos Energy Corporation and its stock began trading on the New York Stock Exchange under the ticker symbol ATO.
Name Age Since Current Position
Best, Robert 64 2010 Executive Chairman of the Board
Cocklin, Kim 59 2010 President, Chief Executive Officer, Director
Meisenheimer, Fred 66 2009 Chief Financial Officer, Senior Vice President, Treasurer
Gregory, Louis 55 2000 Senior Vice President, General Counsel
Haefner, Michael 50 2008 Senior Vice President - Human Resources
Meziere, Daniel 50 2011 Vice President, Treasurer
Vaughan, Charles 73 1997 Lead Independent Director
Springer, Stephen 64 2005 Director
Meredith, Thomas 69 1995 Independent Director
Ware, Richard 64 1994 Independent Director
Gordon, Richard 61 2001 Independent Director
Quinn, Nancy 57 2004 Independent Director
Douglas, Richard 63 2007 Independent Director
Esquivel, Ruben 67 2008 Independent Director
Grable, Robert 64 2009 Independent Director
Atmos Energy Corp
Three Lincoln Centre
5430 LBJ Freeway
Suite 1800
Dallas TX 75240
Atmos Energy Corporation (Atmos Energy) incorporated in 1983, is engaged primarily in the regulated natural gas distribution and transmission and storage businesses, as well as other non-regulated natural gas businesses. The Company distributes natural gas through regulated sales and transportation arrangements to over three million residential, commercial, public authority and industrial customers in 12 states located primarily in the South. It also operates an intrastate pipelines in Texas based on miles of pipe. Through its non-regulated businesses, Atmos Energy primarily provides natural gas management and marketing services to municipalities, other local gas distribution companies and industrial customers principally in the Midwest and Southeast and natural gas transportation along with storage services to certain of its natural gas distribution divisions and third parties. The Company operates in four segments: natural gas distribution segment, which includes its regulated natural gas distribution and related sales operations; regulated transmission and storage segment, which includes the regulated pipeline and storage operations of its Atmos Pipeline-Texas Division; natural gas marketing segment, which includes a variety of non-regulated natural gas management services, and pipeline, storage and other segment, which is comprised of its non-regulated natural gas gathering, transmission and storage services.
Natural Gas Distribution
The Company’s natural gas distribution segment consists of six regulated divisions: Atmos Energy Mid-Tex Division, Atmos Energy Kentucky/Mid-States Division, Atmos Energy Louisiana Division, Atmos Energy West Texas Division, Atmos Energy Colorado-Kansas Division and Atmos Energy Mississippi Division. Its Kentucky/Mid-States Division operates in more than 420 communities across Georgia, Illinois, Iowa, Kentucky, Missouri, Tennessee and Virginia. The service areas in these states are primarily rural; however, this division serves Franklin, Tennessee, and other suburban areas of Nashville. In Louisiana, Atmos Energy serves nearly 300 communities, including the suburban areas of New Orleans, the metropolitan area of Monroe and western Louisiana. Its West Texas Division serves approximately 80 communities in West Texas, including the Amarillo, Lubbock and Midland areas. Its Colorado-Kansas Division serves approximately 170 communities throughout Colorado and Kansas and parts of Missouri, including the cities of Olathe, Kansas, a suburb of Kansas City and Greeley, Colorado, located near Denver. In Mississippi, the Company serves about 110 communities throughout the northern half of the state, including the Jackson metropolitan area.
Regulated Transmission and Storage
Atmos Energy’s regulated transmission and storage segment consists of the regulated pipeline and storage operations of its Atmos Pipeline-Texas Division. This division transports natural gas to its Mid-Tex Division, transports natural gas for third parties and manages five underground storage reservoirs in Texas. We also provide ancillary services customary in the pipeline industry including parking arrangements, lending and sales of excess gas. Lending services provide short-term interruptible loans of natural gas from its pipeline to meet market demands.
Natural Gas Marketing
The Company’s natural gas marketing activities are conducted through Atmos Energy Marketing (AEM), which is wholly owned by Atmos Energy Holdings, Inc. (AEH). AEH is a wholly owned subsidiary of AEC and operates primarily in the Midwest and Southeast areas of the United States. AEM’s primary business is to aggregate and purchase gas supply, arrange transportation and storage logistics and deliver gas to customers.
Pipeline, Storage and Other
The Company’s pipeline, storage and other segment primarily consists of the operations of Atmos Pipeline and Storage, LLC (APS), which is wholly owned by AEH. APS is engaged in non-regulated transmission, storage and natural gas gathering services. Its primary asset is a proprietary 21 mile pipeline located in New Orleans, Louisiana. It also owns or controls additional pipeline and storage capacity including interests in underground storage fields in Kentucky and Louisiana. APS’ primary business is to provide storage and transportation services to its Louisiana and Kentucky/Mid-States regulated natural gas distribution divisions.
OVERALL
Beta: 0.53
Market Cap (Mil.): $3,162.74
Shares Outstanding (Mil.): 90.65
Annual Dividend: 1.36
Yield (%): 3.90
FINANCIALS
ATO Industry Sector
P/E (TTM): 17.44 19.30 22.13
EPS (TTM): -11.13 -- --
ROI: 3.26 2.05 1.23
ROE: 8.15 4.14 2.74
The origins of Atmos Energy comes from Amarillo Gas Company which was founded by brothers Frank and J.C. Storm in 1906 [1]. It was founded in order to manufacture coal gas on the Texas frontier. In 1918 it discovered the largest natural gas field in the world, and hence subsequently Amarillo changed its focus to the production of natural gas. Two years later it delivered its first locally produced natural gas.
In 1924 Amarillo Gas, Amarillo Oil and other businesses became part of a new public utility holding company, Southwestern Development Company. Over the years, through various business combinations and mergers, the company became known as Pioneer Corporation, a large diversified West Texas energy company. In 1983 Energas, the natural gas distribution division of Pioneer, was spun off and became an independent, publicly held natural gas distribution company. In October 1988, Energas changed its corporate name to Atmos Energy Corporation and its stock began trading on the New York Stock Exchange under the ticker symbol ATO.
Name Age Since Current Position
Best, Robert 64 2010 Executive Chairman of the Board
Cocklin, Kim 59 2010 President, Chief Executive Officer, Director
Meisenheimer, Fred 66 2009 Chief Financial Officer, Senior Vice President, Treasurer
Gregory, Louis 55 2000 Senior Vice President, General Counsel
Haefner, Michael 50 2008 Senior Vice President - Human Resources
Meziere, Daniel 50 2011 Vice President, Treasurer
Vaughan, Charles 73 1997 Lead Independent Director
Springer, Stephen 64 2005 Director
Meredith, Thomas 69 1995 Independent Director
Ware, Richard 64 1994 Independent Director
Gordon, Richard 61 2001 Independent Director
Quinn, Nancy 57 2004 Independent Director
Douglas, Richard 63 2007 Independent Director
Esquivel, Ruben 67 2008 Independent Director
Grable, Robert 64 2009 Independent Director
Atmos Energy Corp
Three Lincoln Centre
5430 LBJ Freeway
Suite 1800
Dallas TX 75240
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