Atlanta’s natural gas utility holding company, AGL ResourcesInc., whose stock prices have fallen nearly 14% in the past year,said last week that cost cutting and more customers will pushthird-quarter profits ahead of analysts’ estimates. AGL wasexpected to earn 21 cents a share in the three months ending lastFriday (June 30), the average estimate of several analysts polledby First Call/Thomson Financial.

In November 1998, the state of Georgia deregulated its gassales, which moved AGL’s Atlanta Gas Light Co. to change its focusand begin to zero in on delivery and turn away from supply. Thechange appears to have been a good one. Already, the growingutility — now the largest gas distributor in the Southeast —has added about 1.5 million customers as Atlanta’s populationgrows, and more businesses and homes turn to natural gas.

Company officials attributed the strength of predicted earningsto “aggressive cost management, system modernization and growth inthe customer base.” The 2000 earnings do not include gains AGL isexpected to record following Heritage Propane Partner’s proposedacquisition of US Propane, a joint venture that includes AGL.

Third quarter earnings are expected to be announced July 27. Forthe same period in 1999, AGL posted a net income of $7.2 million,or 12 cents. This year, First Call predicts the company will earn$1.12 for fiscal 2000, and $1.20 in fiscal 2001.

Carolyn Davis, Houston

©Copyright 2000 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.