AGL Resources Expects 2007 Earnings to Be at Lower End of Previously Announced Earnings Guidance Range

    ATLANTA, Oct. 22 /CNW/ -- AGL Resources Inc. (NYSE:   ATG) announced that
its third quarter 2007 earnings results are expected to be in the range of
$0.16 to $0.18 per basic share.  Based on these results and the outlook for
the remainder of the year, the company expects full-year 2007 earnings to be
at the lower end of its previously announced guidance range of $2.75 to $2.85
per basic share.
    These results are principally due to lower contributions from the
Wholesale Services segment (Sequent Energy) driven by lower volatility in the
natural gas wholesale market.  The reduction in natural gas price volatility
has limited Sequent's opportunity to generate margins from storage and
transportation arbitrage.  The current expectation is that earnings in the
Wholesale Services segment will be below the 2007 EBIT (earnings before
interest and taxes) contribution range included in the company's previously
announced earnings guidance, but will be partially offset by improved results
in the company's other business segments.
    "We have a commitment to our investors to provide as much transparency
around our results as possible, and in as timely a manner as we can," said
John W. Somerhalder II, president and chief executive officer of AGL
Resources.  "While our other business units, including our core utility
business, have seen strong year-to-date results and remain on track to meet or
exceed our expectations, we clearly have seen and continue to see a lack of
volatility in the natural gas markets that has impacted Sequent's ability to
generate economic value."
    The expectation for 2007 earnings assumes normal winter weather
conditions in the fourth quarter, with no material impact to earnings from the
effect of forward natural gas price movements on storage and transportation
hedges in the Wholesale Services segment.  Changes in these factors, as well
as other circumstances or events the company cannot currently anticipate,
could result in earnings for fiscal 2007 that are above or below this outlook.
    AGL Resources does not provide or publish forecasts of quarterly earnings
or other quarterly results, and this announcement is not intended to change
that policy.  AGL Resources will report its third-quarter and year-to-date
earnings results on Thursday, November 1, 2007.  The earnings release will be
issued prior to the market opening, followed by a conference call and webcast
with the investor community at 9 a.m. ET.  The company will discuss third-
quarter and year-to-date 2007 earnings results and its expectations for full-
year 2007 results in more detail at that time.
    The earnings call and webcast can be accessed via the Investor Relations
section of the AGL Resources Web site at, or by dialing
866/700-5192 (in the United States) or 617/213-8833 (outside the United
States), and using the confirmation code 25466134.  A webcast replay of the
call will be available on the Web site through the close of business on
Thursday, November 8, 2007.  The telephone replay can be accessed by dialing
(888) 286-8010, using the passcode 96410247.  International callers should
dial (617) 801-6888 and use the same passcode.
    About AGL Resources
    AGL Resources (NYSE:   ATG), an Atlanta-based energy services company,
serves more than 2.2 million customers in six states.  As a 70 percent owner
in the SouthStar partnership, AGL Resources markets natural gas to consumers
in Georgia under the Georgia Natural Gas brand.  The company also owns
Houston-based Sequent Energy Management, an asset manager serving natural gas
wholesale customers throughout the nation.  The company also owns and operates
Jefferson Island Storage & Hub, a high-deliverability natural gas storage
facility near the Henry Hub in Louisiana.  For more information, visit
    Forward-Looking Statements
    Certain expectations and projections regarding our future performance
referenced in this press release are forward-looking statements. Forward-
looking statements involve matters that are not historical facts and because
these statements involve anticipated events or conditions, forward-looking
statements often include words such as "anticipate," "assume," "can," "could,"
"estimate," "expect," "forecast," "future," "indicate," "intend," "may,"
"outlook," "plan," "predict," "project," "seek," "should," "target," "will,"
"would," or similar expressions. Our expectations are not guarantees and are
based on currently available competitive, financial and economic data along
with our operating plans. While we believe our expectations are reasonable in
view of the currently available information, our expectations are subject to
future events, risks and uncertainties, and there are several factors - many
beyond our control - that could cause results to differ significantly from our
    Such events, risks and uncertainties include, but are not limited to,
changes in price, supply and demand for natural gas and related products; the
impact of changes in state and federal legislation and regulation; actions
taken by government agencies on rates and other matters; concentration of
credit risk; utility and energy industry consolidation; impact of acquisitions
and divestitures; direct or indirect effects on AGL Resources' business,
financial condition or liquidity resulting from a change in our credit ratings
or the credit ratings of our counterparties or competitors; interest rate
fluctuations; financial market conditions and general economic conditions;
uncertainties about environmental issues and the related impact of such
issues; the impact of changes in weather upon the temperature-sensitive
portions of the business; impacts of natural disasters such as hurricanes upon
the supply and price of natural gas; acts of war or terrorism; and other
factors which are provided in detail in our filings with the Securities and
Exchange Commission, which we incorporate by reference in this press release.
Forward-looking statements are only as of the date they are made, and we do
not undertake to update these statements to reflect subsequent changes.
    Supplemental Information
    Company management evaluates segment financial performance based on
earnings before interest and taxes (EBIT), which includes the effects of
corporate expense allocations. EBIT is a non-GAAP (accounting principles
generally accepted in the United States of America) financial measure. Items
that are not included in EBIT are financing costs, including debt and interest
expense and income taxes. The company evaluates each of these items on a
consolidated level and believes EBIT is a useful measurement of our
performance because it provides information that can be used to evaluate the
effectiveness of our businesses from an operational perspective, exclusive of
the costs to finance those activities and exclusive of income taxes, neither
of which is directly relevant to the efficiency of those operations.
    EBIT should not be considered an alternative to, or a more meaningful
indicator of, the company's operating performance than operating income or net
income as determined in accordance with GAAP. In addition, the company's EBIT
may not be comparable to similarly titled measures of another company.
    Reconciliation of non-GAAP financial measures referenced in this press
release and otherwise in the earnings conference call and webcast is attached
to this press release and is available on the company's website at under the Investor Relations section.

For further information:

For further information: Financial, Steve Cave, +1-404-584-3801, Cell, 
+1-678-642-4258,, or Media, John Kennedy, 
+1-404-584-4319, Cell, +1-404-227-3565,, both for 
AGL Resources Inc. Web Site:

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