For the six months ended March 31, 2009, net income was $205 million, or $2.24 per diluted share, compared with net income of $185.3 million, or $2.06 per diluted share for the same period last year. Net income for the current six months includes the positive impact of a one-time tax benefit of $11.3 million, or $0.12 per diluted share. For the current six-month period, regulated operations contributed $178.9 million of net income, or $1.96 per diluted share, and non-regulated operations contributed $26.1 million of net income, or $0.28 per diluted share. Non-regulated operations include noncash, unrealized mark-to-market net losses of $16.9 million, or $0.19 per diluted share for the six months ended March 31, 2009, compared with net losses of $5.3 million, or $0.06 per diluted share for the prior-year period.

“The rate and regulatory enhancements achieved in recent years have allowed our core regulated operations the ability to provide relatively stable and predictable results, in spite of declining volumes driven by the downturn in the economy,” said Robert W. Best, chairman and chief executive officer of Atmos Energy. Also, the company’s credit and liquidity positions remain strong in the midst of this economic uncertainty. We are optimistic that Atmos Energy will continue to deliver our annual earnings growth goal of between 4 to 6%, on average.”

Results for the 2009 Second Quarter Ended March 31, 2009

Natural gas distribution gross profit increased $9.6 million to $367.1 million for the fiscal 2009 second quarter, compared with $357.5 million in the prior-year quarter, before intersegment eliminations. This increase reflects a net $21.9 million increase in rates, primarily in the company’s Mid-Tex, Louisiana and West Texas service areas and the reversal of a $7 million accrual for estimated unrecoverable gas costs recorded in a prior year. These increases were partially offset by an $8.9 million decrease in revenue-related taxes due to lower gas costs and a $13.5 million decrease as a result of lower residential and commercial consumption and warmer weather in the Colorado service area, which does not have weather-normalized rates.

Regulated transmission and storage gross profit increased $7.8 million to $59.2 million for the three months ended March 31, 2009, compared with $51.4 million for the three months ended March 31, 2008, before intersegment eliminations. This increase is due primarily to higher per-unit margins earned on through-system deliveries of $3.6 million, an increase in demand-based charges of $3.3 million, a $2.9 million gain associated with the routine sale of excess inventory and a $1.4 million increase in revenues resulting from filings under the Texas Gas Reliability Infrastructure Program (GRIP). These increases were partially offset by a $4.1 million decrease due to a reduction in transportation volumes to the company’s mid-tex division, as a result of warmer weather and a 13% decrease in consolidated throughput, due primarily to a decline in Barnett shale activity, industrial demand and electric generation demand.

Natural gas marketing gross profit increased $7.2 million to $23.5 million for the fiscal 2009 second quarter, compared with $16.3 million for the fiscal 2008 second quarter, before intersegment eliminations. This increase is due principally to a $40 million quarter-over-quarter increase in Atmos Energy Marketing’s (AEM) unrealized margins primarily as a result of lower volatility between current cash prices and forward natural gas prices experienced on its net physical position during the current quarter. This increase was partially offset by a $29.8 million decrease in margins realized from AEM’s storage and trading activities. As a result of falling current cash prices during the quarter, AEM elected to defer physical storage withdrawals into future periods and inject gas into storage. As a result, AEM realized lower storage withdrawal gains in the current quarter. In the prior-year quarter, AEM withdrew gas storage and recognized the associated gains. Finally, delivered gas margins decreased $3 million, primarily as a result of a 13% decrease in consolidated sales volumes.

Pipeline, storage and other gross profit increased $0.9 million to $10.6 million for the three months ended March 31, 2009, compared with $9.7 million for the same period last year, before intersegment eliminations. The increase was attributable primarily to larger realized gains from the settlement of financial positions associated with storage and trading activities and basis gains earned from utilizing leased pipeline capacity. These increases were essentially offset by lower margins earned in the current quarter under asset management plans and increased unrealized losses, due principally to a widening of the spreads between current cash prices and forward natural gas prices.

Results for the quarter ended March 31, 2009, were favorably impacted by a one-time tax benefit of $11.3 million. The benefit arose in the current quarter after the company updated the tax rates used to record its deferred taxes.

Results for the Six Months Ended March 31, 2009

Natural gas distribution gross profit increased $34.8 million to $665.5 million for the six months ended March 31, 2009, compared with $630.7 million in the prior-year period, before intersegment eliminations. This increase is due largely to a net $37.2 million increase in rates, primarily in the company’s Mid-Tex, Louisiana and West Texas service areas, the reversal of the aforementioned $7 million accrual for uncollectible gas costs and an $8.3 million increase due to a non-recurring update to the estimate for gas delivered to customers but not yet billed, resulting from base rate changes in several jurisdictions recorded in the first quarter of fiscal 2009. These increases were partially offset by a $9.2 million decrease in revenue-related taxes due to lower gas costs and a $14.8 million decrease as a result of a 4% reduction in residential and commercial consumption, partially due to warmer weather in the Colorado service area, which does not have weather-normalized rates.

Regulated transmission and storage gross profit increased $17.4 million to $113.9 million for the six months ended March 31, 2009, compared with $96.5 million for the same period last year, before intersegment eliminations. This increase is due primarily to higher per-unit margins earned on through-system deliveries of $7.6 million, a $6.4 million increase in demand-based charges, a $2.9 million gain associated with the routine sale of excess inventory and a $2.7 million increase in revenues resulting from filings under GRIP. These increases were partially offset by a $3.4 million decrease due to a reduction in transportation volumes to the company’s Mid-Tex division, as a result of warmer weather and a 7% decrease in consolidated throughput, due principally to a decline in Barnett shale activity, industrial demand and electric generation demand.