NewYorkStockBrokersClub 960402 Atmos Energy

Minimallly edited notes of the presentation of Atmos Energy ( NYSE : ATO ) to Ted Feit`s NYSBC Meeting with Management at Harry`s at Hanover Square

| DDT |>| TUE.APR,960402,19:33

Emending @ Johns St Pub ( DaveSheerin Prp ) w 2$ pints of Harpoon IPA , Shipyard ExportAle , Sierra Nevada PaleAle , RogueGolden Ale , .

See http://www.researchmag.com/company/csi/csato.htm
for quite thorough coverage .

Note : I always use true proportions rather than percents , and in ASCII , the APL uses the percent symbol '%' for division .

  ============================ TUE.APR,960402 ============================
NewYorkStockBrokersClub |16:41| Harrys @ HanoverSq | TedFeit :
 President : BobStevens :
 24th largest # customers Naturl Gas Distributor based in Dallas | operating
 in | TX LA CO NB KY
 ( equity , stock ) up | 4 3  x | since 85 |
                                        Eqty M$  Stk $  Div  MktCap
       1995 |                  s T0 is   158.3  19.375  .92  300.6       |>|
       1985 |                  s T1 is    36.6   5.5    .55   31.1       |>|
Ratio  |               T0 % T1     |>|     4.33  3.52  1.67    9.67
AGR  | CmpdAmnt T0 w T1 w n w 10   |>|     0.16  0.13  0.05    0.25      |#|
                                                    95   85
     Yield |   %/ ( T0 CAT0 T1 ) [ ; 2 1 ]      |>| 0.05 0.1

  # custs  .016 up las yr |  CO up > .08 |
 Pushing : gas cooling  & vehicls || growth | .052  .11 , last 5 , 10 yrs |
  2x growth of peer grp | irrigation well pumps |
|16:51| CFO : James   fiskl yr sept 30 |95 weather not in their favor .
 | good rate increases |
                                  `95    `94    |   dif  ratio
  rev  | ( -/ P ) , %/ D          499.3 435.8   |>| 63.5 1.15          | M$
  net  | ( -/ P ) , %/ D           19    14.7   |>| 4.3 1.29           | M$
 % shr | ( -/ ToS ) , %/ D          1.22   .97  |>| 0.25 1.26          | $
  Shrs | 15.5 15.3                              |>| 15.5 15.3          | M
         Current price \|/
  E%S  | .001 FMT P % 23+1%8    |>| 0.053 0.042        | $%$   |#|
   |  weather .101 warmer than norm ,  .09 than FY94
   impact  .26 %shr , offset by gain in irrigation |
 Expensed Mntd  O&M  10.3 M$ .  94 had greely acq cost .
 capex thru 96 | 40.4 52.6 56.1 66.5 | rate increases all 6 states since Eo
 93 . However rates some of lowest in nation . | div .85 .88 .92 .96 | thru
 anticipated 96 |

   Annual tot return | .143  over 85 - 95  | Stock now @ high of 23+18
 .87 div reinvest participation . | 23500 shareholders `95 vs 6880 in `91
 96 95 q0 ( Dec 31 ):  130   117 , 9.2 6.5 ,  .59 .42    ,  15.9 15.3
                     |    rev    , net     ,  net  shr  ,    shrs

 .096 coldr than 95 thru Feb ; .051 higher than normal |
|17:1| Bob :
 .59 of thruput in KY to industral | Know competition , win caus  cost |
 employee : 1  400 vs 380 |  552 vs 959  invest  meter | ATO vs peers
 .24 of stok owned by Atmos employ  mng & board | .98 of employees own some .

 gas cost 2.46 vs peer 2.89 |  mcf || Electronic Flow measuremtent for
 largest custs .
 Compete everyday , Capitalize on new opportunities |

?s : \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \/ \
Mona : div policy ? no stated ratio , lower than industry but hier
growth , tax free portion ? all ordinary icome | detail of .24 ownership ?
 ESOP , up to .04 of salary , almost all participate | Big : MrSlessman Brd
 mem owned Greely | Salary deferal election | 1 % 1 match | ESOP shares come
 from both mkt & new issue | .12 - .15 owned by board | ESOP ~ .1
| Business definition ? buy comodity gas for resale |
 from eg Mobil | located in high supply areas .
 | Always looking for non-dilutive but broadning acquisitions |
 Origins West ( Lubok ) TX , went thru seveer recession | Methenex (?) , gas
 price ? flow thru | Gas Futures ? suplyers do . they giv price for contract
| Holding Co strukcure & state by state regs would defeat hostile acq atk .
 Book ? 10.+ | so , abt 2 book . ; CFO : is best defense | do pooling of
 interests & some cash on their Acqs | .5 .5 w Debt Equ | Collection ? < .01
 nonpay | Me : scale of competition , eg : town , individual ? TX does have
 some competition to curb . but once in ground do essentially have monopoly
 on area . | .67 of rev is gas cost | .04 net before tax | ESOP can invest up
 to .1 of salay , only .04 $ matched by co . Electronic meter reading ? done
 a few tests | rural less advantage than metro , ARCO , MOBIL UnionPacific |
 Spun off of Pioneer Natrl Gas |17:32|