EXHIBIT 99.1
[ATMOS ENERGY CORPORATION LETTERHEAD AND LOGO APPEAR HERE]
DATE: August 8, 2000 INVESTOR & MEDIA CONTACT:
FOR RELEASE: Immediately Lynn Hord (972) 855-3729
ATMOS ENERGY CORPORATION TO ACQUIRE REMAINING INTEREST
IN WOODWARD MARKETING, LLC
Dallas, Texas - August 8, 2000 -- Atmos Energy Corporation (NYSE: ATO)
today announced that it will acquire from Woodward Marketing, Inc., the
remaining 55 percent interest in Woodward Marketing, LLC in exchange
for 1,423,193 shares of Atmos common stock, valued at $33.3 million.
Of the 1,423,193 shares to be issued, 960,000 shares are subject to
adjustment if the Atmos share price does not reach $25 per share for
any 30 consecutive trading days over a five-year period from the date
of closing.
Atmos currently owns a 45 percent interest in Woodward Marketing, LLC.
The acquisition of the remaining interest in Woodward Marketing, LLC is
expected to add about $0.04 - $0.06 to consolidated earnings per share
during the first full year of complete ownership. The acquisition of
Woodward Marketing will not require shareholder approval but will
require regulatory approval in six of the 13 states in which Atmos
operates. J. D. Woodward, President of Woodward Marketing, LLC will
become Senior Vice President of Non-Utility Operations for Atmos upon
completion of the transaction.
"Woodward Marketing, LLC has a track record of strong financial growth
accompanied by some of the highest customer satisfaction ratings in the
industry under the leadership of J. D. Woodward and Jim Kifer," said
Robert W. Best, Atmos Chairman, President and Chief Executive Officer.
"The acquisition of the remaining interest in Woodward Marketing will
increase the profitability, scale and scope of Atmos' non-utility
operations," said Best.
"I have known J. D. Woodward for several years and I have been very
impressed with his expertise, sound business judgment and ability to
grow his business profitably. We look forward to having J. D. join
Atmos as the head of our non-utility operations. We are also pleased
that Jim Kifer and the talented professional staff at Woodward
Marketing, LLC will also be joining our company", said Robert W. Best.
Woodward Marketing, LLC is a natural gas services company headquartered
in Houston, Texas, which serves natural gas utility, municipal, and
industrial customers located primarily in the Southeast, Midwest and in
California. Atmos acquired its 45 percent interest in the gas services
company as part of the acquisition of United Cities Gas Company in
1997. Since then, Woodward's realized pretax income has increased by
more than 20 percent each year. For the nine months ended June 30,
2000, Woodwards's pretax realized income increased about 44 percent
compared to the nine months ended June 30, 1999.
All statements, other than historical financial information and
statements of historical facts included in this press release may be
deemed to be "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These statements reflect the Company's current
views made in good faith with respect to future events and performance.
Actual results may differ materially from those suggested in any such
forward-looking statements as a result of certain risks and
uncertainties. A discussion of these risks and uncertainties is
included in the Company's periodic reports filed with the Securities
and Exchange Commission including its Annual Report on Form 10-K for
the year ended September 30, 1999.
Atmos Energy Corporation of Dallas, Texas, distributes natural gas and
propane to more than one million customers in 13 states through its
operating divisions - Energas Company, Greeley Gas Company, Trans
Louisiana Gas Company, United Cities Gas Company, Western Kentucky Gas
Company and United Cities Propane Gas, Inc. For additional information
about the Company, please visit the Atmos website at
www.atmosenergy.com.
# # #
