Exhibit 99.1
First Quarter 2012
Earnings Presentation
Earnings Presentation
May 1, 2012
Forward-Looking Statements & Supplemental Information
Forward-Looking Statements
Certain expectations and projections regarding our future performance referenced in this presentation, in other reports or statements we file with the SEC or otherwise release to the public, and
on our website, are forward-looking statements. Senior officers and other employees may also make verbal statements to analysts, investors, regulators, the media and others that are forward-
looking. Forward-looking statements involve matters that are not historical facts, such as statements regarding our future operations, prospects, strategies, financial condition, economic
performance (including growth and earnings), industry conditions and demand for our products and services. Because these statements involve anticipated events or conditions, forward-looking
statements often include words such as "anticipate," "assume," "believe," "can," "could," "estimate," "expect," "forecast," "future," "goal," "indicate," "intend," "may," "outlook," "plan," "potential,"
"predict," "project," "seek," "should," "target," "would," or similar expressions. Forward-looking statements contained in this presentation include, without limitation, statements regarding future
earnings per share, capital expenditures, quarterly EBIT contribution, anticipated results of our storage rollout schedule and fixed bill contracts, completion schedule of our storage facilities, our
ability to renegotiate certain asset management and supply agreements at lower rates and our priorities for 2012. 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 expectations.
on our website, are forward-looking statements. Senior officers and other employees may also make verbal statements to analysts, investors, regulators, the media and others that are forward-
looking. Forward-looking statements involve matters that are not historical facts, such as statements regarding our future operations, prospects, strategies, financial condition, economic
performance (including growth and earnings), industry conditions and demand for our products and services. Because these statements involve anticipated events or conditions, forward-looking
statements often include words such as "anticipate," "assume," "believe," "can," "could," "estimate," "expect," "forecast," "future," "goal," "indicate," "intend," "may," "outlook," "plan," "potential,"
"predict," "project," "seek," "should," "target," "would," or similar expressions. Forward-looking statements contained in this presentation include, without limitation, statements regarding future
earnings per share, capital expenditures, quarterly EBIT contribution, anticipated results of our storage rollout schedule and fixed bill contracts, completion schedule of our storage facilities, our
ability to renegotiate certain asset management and supply agreements at lower rates and our priorities for 2012. 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 expectations.
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 including changes related to climate change; actions taken by government agencies on rates and other matters; concentration of credit risk; utility and energy industry
consolidation; the impact on cost and timeliness of construction projects by government and other approvals, development project delays, adequacy of supply of diversified vendors, unexpected
change in project costs, including the cost of funds to finance these projects; the impact of acquisitions and divestitures including the Nicor merger; limits on natural gas pipeline capacity; direct
or indirect effects on our 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, including disruptions in the capital markets and lending environment and the current economic uncertainty; general economic conditions; uncertainties about
environmental issues and the related impact of such issues; the impact of changes in weather, including climate change, on the temperature-sensitive portions of our business; the impact of
natural disasters such as hurricanes on the supply and price of natural gas; the outcome of litigation; acts of war or terrorism; and other factors which are provided in detail in our filings with the
Securities and Exchange Commission. 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.
legislation and regulation including changes related to climate change; actions taken by government agencies on rates and other matters; concentration of credit risk; utility and energy industry
consolidation; the impact on cost and timeliness of construction projects by government and other approvals, development project delays, adequacy of supply of diversified vendors, unexpected
change in project costs, including the cost of funds to finance these projects; the impact of acquisitions and divestitures including the Nicor merger; limits on natural gas pipeline capacity; direct
or indirect effects on our 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, including disruptions in the capital markets and lending environment and the current economic uncertainty; general economic conditions; uncertainties about
environmental issues and the related impact of such issues; the impact of changes in weather, including climate change, on the temperature-sensitive portions of our business; the impact of
natural disasters such as hurricanes on the supply and price of natural gas; the outcome of litigation; acts of war or terrorism; and other factors which are provided in detail in our filings with the
Securities and Exchange Commission. 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 and on
operating margin. EBIT is a non-GAAP (accounting principles generally accepted in the United States of America) financial measure that includes operating income, other income and
expenses. 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. Operating margin is a non-
GAAP measure calculated as operating revenues minus cost of goods sold and revenue taxes, excluding operation and maintenance expense, depreciation and amortization, and taxes other
than income taxes. These items are included in the company's calculation of operating income. The company believes operating margin is a better indicator than operating revenues of the
contribution resulting from customer growth, since cost of goods sold and revenue taxes are generally passed directly through to customers. In addition, in this presentation, the company has
presented a non-GAAP measure of both its net income and its earnings per share each adjusted to exclude expenses incurred with respect to the Nicor merger. As the company does not
routinely engage in transactions of the magnitude of the Nicor merger, and consequently does not regularly incur transaction related expenses with correlative size, the company believes
presenting net income and EPS excluding Nicor merger expenses provides investors with an additional measure of the company’s core operating performance. The company also uses a non-
GAAP measure when it presents the impact of warmer than normal weather on its diluted EPS. EBIT, operating margin, net income excluding merger expenses (also referred to as adjusted net
income), EPS excluding merger expenses (also referred to as adjusted EPS) and the impact of warmer than normal weather should not be considered as alternatives to, or more meaningful
indicators of, the company's operating performance than operating income, net income attributable to AGL Resources Inc. or EPS as determined in accordance with GAAP. In addition, the
company's EBIT, operating margin, adjusted net income and adjusted EPS may not be comparable to similarly titled measures of another company. Reconciliations of non-GAAP financial
measures referenced in this presentation are available on the company’s Web site at www.aglresources.com
operating margin. EBIT is a non-GAAP (accounting principles generally accepted in the United States of America) financial measure that includes operating income, other income and
expenses. 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. Operating margin is a non-
GAAP measure calculated as operating revenues minus cost of goods sold and revenue taxes, excluding operation and maintenance expense, depreciation and amortization, and taxes other
than income taxes. These items are included in the company's calculation of operating income. The company believes operating margin is a better indicator than operating revenues of the
contribution resulting from customer growth, since cost of goods sold and revenue taxes are generally passed directly through to customers. In addition, in this presentation, the company has
presented a non-GAAP measure of both its net income and its earnings per share each adjusted to exclude expenses incurred with respect to the Nicor merger. As the company does not
routinely engage in transactions of the magnitude of the Nicor merger, and consequently does not regularly incur transaction related expenses with correlative size, the company believes
presenting net income and EPS excluding Nicor merger expenses provides investors with an additional measure of the company’s core operating performance. The company also uses a non-
GAAP measure when it presents the impact of warmer than normal weather on its diluted EPS. EBIT, operating margin, net income excluding merger expenses (also referred to as adjusted net
income), EPS excluding merger expenses (also referred to as adjusted EPS) and the impact of warmer than normal weather should not be considered as alternatives to, or more meaningful
indicators of, the company's operating performance than operating income, net income attributable to AGL Resources Inc. or EPS as determined in accordance with GAAP. In addition, the
company's EBIT, operating margin, adjusted net income and adjusted EPS may not be comparable to similarly titled measures of another company. Reconciliations of non-GAAP financial
measures referenced in this presentation are available on the company’s Web site at www.aglresources.com
2
1Q12 Highlights
• 1Q12 GAAP EPS of $1.11 per
diluted share
diluted share
• Adjusted diluted EPS of $1.16,
excluding approximately $6 million in
after-tax costs related to Nicor merger
excluding approximately $6 million in
after-tax costs related to Nicor merger
• Distribution segment EBIT up 38%
1Q12 vs. 1Q11, primarily due to
addition of Nicor Gas in 1Q12
1Q12 vs. 1Q11, primarily due to
addition of Nicor Gas in 1Q12
• Retail segment EBIT down $8 million
vs. 1Q11, driven by historically warm
weather
vs. 1Q11, driven by historically warm
weather
• Wholesale, midstream and cargo
shipping segments remain challenged
due to market fundamentals
shipping segments remain challenged
due to market fundamentals
• Normal (10-year average)
weather at distribution and
retail segments likely to have
improved EPS by
approximately $0.11
weather at distribution and
retail segments likely to have
improved EPS by
approximately $0.11
• Distribution operations
contributed 70% of operating
EBIT during 1Q12
contributed 70% of operating
EBIT during 1Q12
Note: Please review the AGL Resources 10-Q as filed with the SEC on 5/1/12 for detailed information.
EBIT, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Please see the appendix to
this presentation or visit the investor relations section of www.aglresources.com for a reconciliation to
GAAP.
EBIT, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Please see the appendix to
this presentation or visit the investor relations section of www.aglresources.com for a reconciliation to
GAAP.
(1) Results for Nicor’s businesses are not included in 1Q11 GAAP results.
(2) Adjusted for revenue tax expenses for Nicor Gas which are passed directly through to customers.
(3) Adjusted net income and adjusted EPS exclude Nicor-related merger costs of approximately $6
million, net of tax, for 1Q12 and $3 million, net of tax, for 1Q11.
million, net of tax, for 1Q12 and $3 million, net of tax, for 1Q11.
3
• 1Q12 EBIT increased 38% vs. 1Q11
• Key drivers
• Nicor Gas added EBIT of $51 million
• Record warmth in 1Q12 negatively
impacted EBIT at Nicor Gas by $13
million vs. normal
impacted EBIT at Nicor Gas by $13
million vs. normal
• EBIT at legacy AGLR utilities favorable
by $2 million
by $2 million
• Expenses increased $142 million vs.
1Q11 due to addition of Nicor Gas
(excluding revenue taxes); 1Q12
expenses at legacy AGLR utilities flat
vs. prior year period
1Q11 due to addition of Nicor Gas
(excluding revenue taxes); 1Q12
expenses at legacy AGLR utilities flat
vs. prior year period
• Customer count stable
• 2.294 million customers in 1Q12 (avg.)
vs. 2.298 million in 1Q11 (avg.) for
legacy AGLR utilities
vs. 2.298 million in 1Q11 (avg.) for
legacy AGLR utilities
• 2.193 million Nicor Gas customers in
1Q12 (avg.)
1Q12 (avg.)
Distribution Operations
NOTE: COG = Cost of Goods Sold
1Q12 Financial Performance Summary
Illinois Heating Degree Days
4
Source: NOAA
Retail Operations
• 1Q12 EBIT down $8 MM vs. 1Q11
• Weather in Georgia that was 32% warmer
than normal resulted in lower usage and an
$8 million decline in EBIT
than normal resulted in lower usage and an
$8 million decline in EBIT
• LOCOM adjustment higher by $3 million vs.
1Q11
1Q11
• Addition of Nicor’s retail businesses
resulted in a $1 million reduction to EBIT,
though loss expected to reverse in summer
due to accounting method for fixed bill
contracts
resulted in a $1 million reduction to EBIT,
though loss expected to reverse in summer
due to accounting method for fixed bill
contracts
• Operating expenses higher by $16 million
year-over-year due primarily to addition of
Nicor’s retail businesses
year-over-year due primarily to addition of
Nicor’s retail businesses
• Market share and customer count
• Georgia market share remains 32% at end
of 1Q12 (equivalent to 1Q11)
of 1Q12 (equivalent to 1Q11)
• Georgia customer count (avg.): 494K at
3/31/12 vs. 498K at 3/31/11
3/31/12 vs. 498K at 3/31/11
• Integration of retail businesses ongoing
1Q12 Financial Performance Summary
Georgia Heating Degree Days
5
Source: NOAA
• 1Q12 EBIT down $14 million vs. 1Q11 due to
lower commercial activity and higher LOCOM
lower commercial activity and higher LOCOM
• Commercial activity lower by $21 million y/y
primarily related to historically warm 1Q12
weather, tight transportation and storage spreads
and natural gas over-supply
primarily related to historically warm 1Q12
weather, tight transportation and storage spreads
and natural gas over-supply
• $18 million higher LOCOM
• $23 million higher MTM gains/losses on hedges
y/y
y/y
• Improving seasonal storage spreads resulted
in $19 million storage rollout schedule on 47
Bcf of inventory at Sequent at the end of 1Q12
in $19 million storage rollout schedule on 47
Bcf of inventory at Sequent at the end of 1Q12
• At 12/31/11, Sequent had a $3 million storage
rollout schedule on 37 Bcf of inventory
rollout schedule on 37 Bcf of inventory
• At 3/31/11, Sequent had an $11 million rollout
schedule on 12 Bcf of inventory
schedule on 12 Bcf of inventory
• 5-year extension of asset management
agreement (AMA) with Atlanta Gas Light
(expiration March 2017)
agreement (AMA) with Atlanta Gas Light
(expiration March 2017)
Wholesale Operating Margin Components
1Q12 Financial Performance Summary
Wholesale Services
3Q11
6
Midstream Operations
• 1Q12 EBIT up $1 million vs. 1Q11 due
mainly to hedge gains net of LOCOM at
Central Valley Gas Storage for natural gas
volumes related to bringing the facility into
service
mainly to hedge gains net of LOCOM at
Central Valley Gas Storage for natural gas
volumes related to bringing the facility into
service
• Golden Triangle Storage (GTS)
• Completion of Cavern 2 construction on target
for mid-year 2012 (expected 7.3 Bcf of
working gas capacity)
for mid-year 2012 (expected 7.3 Bcf of
working gas capacity)
• Storage values remain depressed due to high
supply of natural gas and reduced demand
supply of natural gas and reduced demand
• Jefferson Island Storage and Hub (JISH)
• Expansion permit application remains under
review by Louisiana Department of Natural
Resources
review by Louisiana Department of Natural
Resources
• Central Valley Gas Storage
• Construction expected to be complete mid-
year 2012 (expected 11 Bcf of working gas
capacity)
year 2012 (expected 11 Bcf of working gas
capacity)
1Q12 Financial Performance Summary
Contracted Storage Summary (at 3/31/12)
7
(1) Subscribed capacity includes 2 Bcf at Jefferson Island and 2 Bcf at GTS
that are contracted by Sequent.
that are contracted by Sequent.
(2) 3 Bcf of contracted capacity expired 3/31/12 (2 Bcf related to Sequent)
and has been fully re-contracted as of April 1, 2012 (Sequent re-contracted
for 1 Bcf) at an average rate of $0.08; current blended rate for capacity $0.14.
and has been fully re-contracted as of April 1, 2012 (Sequent re-contracted
for 1 Bcf) at an average rate of $0.08; current blended rate for capacity $0.14.
Balance Sheet Highlights
• Solid balance sheet with significant
opportunity to fund capital
requirements
opportunity to fund capital
requirements
• Good access to capital markets
• Company credit metrics support
solid, investment-grade ratings
solid, investment-grade ratings
• $4.3 billion debt outstanding
• Long-term debt $3.6 billion
• Short-term debt of $0.7 billion
• Debt to Cap Ratio: 54%
• 2012 cap ex estimated at $825
million
million
• Approximately $725 million of utility
cap ex expected in 2012 vs. $604
million in 2011 for legacy AGLR
utilities + Nicor Gas
cap ex expected in 2012 vs. $604
million in 2011 for legacy AGLR
utilities + Nicor Gas
• $300 million of 2012 utility cap ex is
rider-based
rider-based
• Approximately $100 million of non-
utility cap ex expected in 2012
utility cap ex expected in 2012
8
January to March Weather Anomalies
9
During 1Q12, weather across AGL Resources’ service territories was 21% warmer than normal1
2012 vs. 30 year average anomaly
Source: NOAA
(1) 21% departure from normal based on 10-year average
Cash Basis Average to Northeast Deliveries
Warm weather and oversupply of natural gas resulted in significant
degradation of transportation spreads in 1Q12 vs. 1Q11
degradation of transportation spreads in 1Q12 vs. 1Q11
10
11
Widening Storage Spreads
March 23, 2011 -- Apr 11 / Jan 12 spread at $0.806
March 23, 2012 -- Apr 12 / Jan 13 spread at $1.165
2012 Priorities
• Make necessary capital investment to enhance and maintain the safety and
reliability of our distribution systems, while minimizing regulatory lag
reliability of our distribution systems, while minimizing regulatory lag
• Remain a low-cost leader within the industry
• Maintain market share in Georgia and Illinois while expanding further into new
territories such as Ohio and Florida
territories such as Ohio and Florida
• Leverage experience across SouthStar and Nicor’s retail businesses
• Renew affiliated and non-affiliated asset management agreements and add new asset
management, gas-fired power generation and producer services contracts
management, gas-fired power generation and producer services contracts
• Continually enhance risk management, credit management and overall controls
Distribution
Retail
Wholesale
Midstream
Cargo Shipping
Expense &
Balance Sheet
Discipline
Balance Sheet
Discipline
• Complete construction of Golden Triangle Cavern 2 and Central Valley Gas
Storage and execute contracts for newly available capacity
Storage and execute contracts for newly available capacity
• Reduce project development costs in response to low volatility environment
• Effectively control expenses and focus on capital discipline in each of our
business segments
business segments
• Maintain strong balance sheet and liquidity profile
• Expand market share in key service areas while providing quality total
transportation and logistics solutions for our customers
transportation and logistics solutions for our customers
• Prudently deploy capital investment and diligently manage operating costs
12
Additional Resources
Company resources
• www.aglresources.com
• Sarah Stashak
Director, Investor Relations
404-584-4577
sstashak@aglresources.com
Industry resources
• www.aga.org
• www.eia.doe.gov
13
Appendix & GAAP Reconciliations
14
AGL Resources Debt Maturities
15
The following table sets forth a reconciliation of AGL Resources’ operating margin to operating income and earnings before interest and taxes (EBIT) to
earnings before income taxes, net income to net income attributable to AGL - as reported and net income attributable to AGL - as adjusted, and net income
attributable to AGL - as adjusted - to diluted EPS - as adjusted for the three months ended March 31, 2012 and 2011.
earnings before income taxes, net income to net income attributable to AGL - as reported and net income attributable to AGL - as adjusted, and net income
attributable to AGL - as adjusted - to diluted EPS - as adjusted for the three months ended March 31, 2012 and 2011.
GAAP Reconciliation
GAAP Reconciliation
The following tables set forth a reconciliation of AGL Resources’ Basic and Diluted earnings per share - as reported (GAAP) to Basic and Diluted earnings
per share - as adjusted (Non-GAAP; excluding Nicor merger costs), for the three months ended March 31, 2012 and 2011. The table below also notes the
impact of warmer than normal weather on 1Q12 earnings per share.
per share - as adjusted (Non-GAAP; excluding Nicor merger costs), for the three months ended March 31, 2012 and 2011. The table below also notes the
impact of warmer than normal weather on 1Q12 earnings per share.
The following tables set forth a reconciliation of AGL Resources’ Statement of Income to earnings before interest and taxes (EBIT) by segment for the
quarter ended March 31, 2012.
quarter ended March 31, 2012.
GAAP Reconciliation
18
The following tables set forth a reconciliation of AGL Resources’ Statement of Income to earnings before interest and taxes (EBIT) by segment for the
quarter ended March 31, 2011.
quarter ended March 31, 2011.
GAAP Reconciliation
19
Reconciliations of operating margin, EBIT by segment, net income excluding merger expenses and EPS excluding merger expenses are available in our
quarterly reports (Form 10-Q) and annual reports (Form 10-K) filed with the Securities and Exchange Commission.
quarterly reports (Form 10-Q) and annual reports (Form 10-K) filed with the Securities and Exchange Commission.
Our management evaluates segment financial performance based on 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. We evaluate each of these items on a consolidated level and believe 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.
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. We evaluate each of these items on a consolidated level and believe 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.
We also use EBIT internally to measure performance against budget and in reports for management and the Board of Directors. Projections of forward-
looking EBIT are used in our internal budgeting process, and those projections are used in providing forward-looking business segment EBIT projections
to investors. We are unable to reconcile our forward-looking EBIT business segment guidance to GAAP net income, because we do not predict the
future impact of unusual items and mark-to-market gains or losses on energy contracts. The impact of these items could be material to our operating
results reported in accordance with GAAP.
looking EBIT are used in our internal budgeting process, and those projections are used in providing forward-looking business segment EBIT projections
to investors. We are unable to reconcile our forward-looking EBIT business segment guidance to GAAP net income, because we do not predict the
future impact of unusual items and mark-to-market gains or losses on energy contracts. The impact of these items could be material to our operating
results reported in accordance with GAAP.
Operating margin is a non-GAAP measure calculated as revenues minus cost of goods sold and revenue taxes, excluding operation and maintenance
expense, depreciation and amortization, taxes other than income taxes, and the gain or loss on the sale of our assets. These items are included in our
calculation of operating income. We believe operating margin is a better indicator than operating revenues of the contribution resulting from customer
growth, since cost of goods sold and revenue taxes are generally passed directly through to customers.
expense, depreciation and amortization, taxes other than income taxes, and the gain or loss on the sale of our assets. These items are included in our
calculation of operating income. We believe operating margin is a better indicator than operating revenues of the contribution resulting from customer
growth, since cost of goods sold and revenue taxes are generally passed directly through to customers.
We present our net income excluding merger expenses and our EPS excluding expenses incurred with respect to the merger with Nicor. As we do not
routinely engage in transactions of the magnitude of the Nicor merger, and consequently do not regularly incur transaction related expenses of
correlative size, we believe presenting our EPS excluding Nicor merger expenses provides investors with an additional measure of our core operating
performance.
routinely engage in transactions of the magnitude of the Nicor merger, and consequently do not regularly incur transaction related expenses of
correlative size, we believe presenting our EPS excluding Nicor merger expenses provides investors with an additional measure of our core operating
performance.
Net income attributable to AGL Resources, as adjusted, and Basic and Diluted earnings per share, as adjusted, are non-GAAP measures and exclude
transaction costs related to the merger with Nicor. We also use a non-GAAP measure when we discuss the impact of warmer than normal weather on
our diluted EPS. EBIT, operating margin, net income excluding merger expenses (also referred to as adjusted net income), EPS excluding merger
expenses (also referred to as adjusted EPS) and the impact of warmer than normal weather should not be considered as alternatives to, or more
meaningful indicators of, the company's operating performance than operating income, net income attributable to AGL Resources Inc. or EPS as
determined in accordance with GAAP. In addition, our EBIT, operating margin, adjusted net income and adjusted EPS may not be comparable to
similarly titled measures of another company.
transaction costs related to the merger with Nicor. We also use a non-GAAP measure when we discuss the impact of warmer than normal weather on
our diluted EPS. EBIT, operating margin, net income excluding merger expenses (also referred to as adjusted net income), EPS excluding merger
expenses (also referred to as adjusted EPS) and the impact of warmer than normal weather should not be considered as alternatives to, or more
meaningful indicators of, the company's operating performance than operating income, net income attributable to AGL Resources Inc. or EPS as
determined in accordance with GAAP. In addition, our EBIT, operating margin, adjusted net income and adjusted EPS may not be comparable to
similarly titled measures of another company.
We believe these financial measures are useful to investors because they provide an alternative method for assessing the Company’s operating results
in a manner that is focused on the performance of the Company’s ongoing operations. The presentation of these financial measures is not meant to be a
substitute for financial measures prepared in accordance with GAAP.
in a manner that is focused on the performance of the Company’s ongoing operations. The presentation of these financial measures is not meant to be a
substitute for financial measures prepared in accordance with GAAP.
GAAP Reconciliation
20