AGL Resources, Inc. is a Fortune 1000, Forbes 2000 energy services holding company. Their principal business is distribution of natural gas in Florida, Georgia, Maryland, New Jersey, Tennessee and Virginia, providing gas for more than 2.2 million customers

AGL Resources Inc. (AGL Resources) is a energy services holding company whose principal business is the distribution of natural gas in six states: Florida, Georgia, Maryland, New Jersey, Tennessee and Virginia. As of December 31, 2010, the Company’s six utilities served approximately 2.3 million end-use customers. It is also involved in several related and complementary businesses, including retail natural gas marketing to end-use customers in Georgia, Ohio and Florida; natural gas asset management and related logistics activities for each of its utilities, as well as for non-affiliated companies; natural gas storage arbitrage and related activities; and the development and operation of natural gas storage assets. The Company operates in four operating segments: distribution operations, retail energy operations, wholesale services and energy investments, and a non-operating corporate segment. In July 2010, the Company sold AGL Networks, its telecommunication business that constructed and operated conduit fiber infrastructure within select metropolitan areas.
Distribution Operations
The Company’s distribution operations segment includes six natural gas local distribution utilities. These utilities construct, manage and maintain intrastate natural gas pipelines and distribution facilities and include Atlanta Gas Light Company (Atlanta Gas Light) in Georgia; Chattanooga Gas Company (Chattanooga Gas) in Tennessee, Elizabethtown Gas in New Jersey, Elkton Gas in Maryland, Florida City Gas in Florida and Virginia Natural Gas in Virginia. Atlanta Gas Light's role includes distributing natural gas for marketers; constructing, operating and maintaining the gas system infrastructure, including responding to customer service calls and leaks; reading meters and maintaining underlying customer premise information for marketers, and planning and contracting for capacity on interstate transportation and storage systems.
Retail Energy Operations
The Company’s retail energy operations segment consists of SouthStar Energy Services LLC (SouthStar), a joint venture owned 85% by its subsidiary, Georgia Natural Gas Company, and 15% by Piedmont Natural Gas Company, Inc. (Piedmont). SouthStar markets natural gas and related services under the trade name Georgia Natural Gas to retail customers on an unregulated basis in Georgia. SouthStar also serves retail customers in Ohio and Florida and markets natural gas to commercial and industrial customers in Alabama, Tennessee, North Carolina, South Carolina, Florida and Georgia. SouthStar generates revenues in three ways. The first is through the sale of natural gas to residential, commercial and industrial customers, in Georgia.
The second way SouthStar generates revenues is through the collection of monthly service fees and customer late payment fees. The third way SouthStar generates revenues is through its commercial operations of optimizing storage and transportation assets and managing commodity risk. SouthStar is allocated storage and pipeline capacity from Atlanta Gas Light that is used to supply natural gas to its customers in Georgia. Through hedging transactions, SouthStar manages exposures arising from changing commodity prices by using natural gas storage transactions to capture operating margin from natural gas pricing differences that occur over time.
Wholesale Services
The Company’s wholesale services segment consists of Sequent Energy Management, L.P. (Sequent), its wholly owned subsidiary involved in asset management and optimization, storage, transportation, producer and peaking services and wholesale marketing. The wholesale services segment also includes its wholly owned subsidiary Compass Energy (Compass). Compass provides natural gas supply and services to commercial, industrial and governmental customers in Kentucky, Ohio, Pennsylvania, Virginia and West Virginia. Sequent utilizes a portfolio of natural gas storage assets, contracted supply from all of the producing regions, as well as contracted storage and transportation capacity across the Gulf Coast, Eastern, Midwestern and Western sections of the United States and Canada to provide these services to its customers, consisting of electric and natural gas utilities, power generators and industrial customers.
Sequent’s logistical expertise enables it to provide its customers with natural gas from the producing regions and market hubs in the United States and Canada and meet its delivery requirements. Sequent’s asset management customers include affiliated and nonaffiliated utilities, municipal utilities, power generators and industrial customers. Sequent contracts for natural gas transportation capacity and participates in transactions, which manage the natural gas commodity and transportation costs. Sequent’s producer services business focuses on aggregating natural gas supply from various small and medium-sized producers located throughout the natural gas production areas of the United States.
Sequent provides producers with logistical and risk management services. Sequent maintains natural gas storage balances for volumes associated with energy marketing activities and parked gas transactions and records these within natural gas stored underground inventory. Sequent’s recorded natural gas stored underground inventory includes volumes of natural gas it manages for its customers by purchasing the natural gas inventory from and delivering volumes of natural gas back to its customers based on specific delivery dates. Sequent sells New York mercantile exchange (NYMEX) futures contracts or over the counter (OTC) derivatives in forward months to substantially lock in the operating revenue. Sequent routinely enters into park and loan transactions with various pipelines and storage facilities, which allow Sequent to park gas on, or borrow gas from, the pipeline in one period and reclaim gas from, or repay gas to, the pipeline in a subsequent period. For these services, Sequent charges rates, which include the retention of natural gas lost and unaccounted for in-kind.
Energy Investments
The Company’s energy investments segment includes a range of businesses, which is related and complementary to its primary business. Its natural gas storage business, which develops, acquires and operates salt-dome caverns and other storage assets in the Gulf Coast region of the United States. While this business also generate revenue during times of peak market demand for natural gas storage services. This wholly owned subsidiary operates a salt-dome storage and hub facility in Louisiana, approximately eight miles from the Henry Hub. As of December 31, 2010, it consisted of two salt-dome storage caverns with 7.5 billion cubic feet of working gas capacity, 0.7 billion cubic feet per day of withdrawal capacity and 0.4 billion cubic feet per day of injection capacity.
Jefferson Island Storage & Hub, LLC (Jefferson Island) provides storage and hub services through its direct connection to the Henry Hub and its interconnections with eight pipelines in the area. As of December31, 2010, Jefferson Island had 6.9 billion cubic feet under firm subscription, which represented approximately 92% of its working natural gas capacity. It wholly owned subsidiary is a Golden Triangle Storage, a salt dome storage facility in the Gulf Coast region of the United States. In September 2010, the first cavern with six billion cubic feet of working capacity began commercial service.
Corporate
The Company’s corporate segment includes non-operating business units. AGL Services Company is a service company, which provides centralized shared services to its operating segments. AGL Capital, its wholly owned finance subsidiary, provides for its ongoing financing needs through a commercial paper program, the issuance of various debt and hybrid securities, and other financing arrangements. Its corporate segment also includes intercompany eliminations for transactions between its operating business segments.


OVERALL
Beta: 0.47
Market Cap (Mil.): $3,226.89
Shares Outstanding (Mil.): 77.98
Annual Dividend: 1.80
Yield (%): 4.35
FINANCIALS
AGL Industry Sector
P/E (TTM): 13.75 16.95 15.81
EPS (TTM): 4.38 -- --
ROI: 4.84 1.56 1.03
ROE: 13.03 2.86 2.13



Business Description
AGL Resources Inc. (AGL Resources) is an energy services holding company, which is engaged in the distribution of natural gas in six states: Florida, Georgia, Maryland, New Jersey, Tennessee and Virginia. It is also engaged in the retail natural gas marketing to the customers in Georgia; natural gas asset management and related logistics activities for each of the utilities, as well as for non-affiliated companies; natural gas storage arbitrage and related activities, and the development and operation of natural gas storage assets. It also owns and operates a telecommunications business that constructs and operates conduit and fiber infrastructure within select metropolitan areas. AGL Resources operates in four segments: distribution operations, retail energy operations, wholesale services and energy investments, and a non-operating corporate segment. In July 2010, AGL Resources Inc. sold its AGL Networks dark fiber telecommunications business to Zayo Group, LLC.


Name Age Since Current Position
Somerhalder, John 55 2007 Chairman of the Board, President, Chief Executive Officer
Evans, Andrew 44 2010 Chief Financial Officer, Executive Vice President
Tumminello, Peter 48 2010 President of Sequent
Shlanta, Paul 53 2005 Executive Vice President, General Counsel, Chief Ethics and Compliance Officer
Linginfelter, Henry 50 2007 Executive Vice President - Utility Operations
Cleveland, Ralph 48 2008 Executive Vice President - Engineering and Operations
Seas, Bryan 2011 Senior Vice President, Chief Accounting Officer
Platt, Melanie 56 2008 Senior Vice President - Human Resources, Marketing Communications
Nagy, Angela 36 2011 Vice President, Controller
Johnson, Arthur 64 2009 Lead Independent Director
Knox, Wyck 70 1998 Independent Director
Love, Dennis 55 1999 Independent Director
Rubright, James 64 2001 Independent Director
Crisp, Charles 63 2003 Independent Director
Bell, Thomas 61 2004 Independent Director
Whyte, Bettina 61 2004 Independent Director
Wolf, Henry 68 2004 Independent Director
O'Hare, Dean 68 2005 Independent Director
McTier, Charles 72 2006 Independent Director
Bane, Sandra 59 2008 Independent Director

COMPANY ADDRESS
AGL Resources Inc
Ten Peachtree Place NE
Atlanta GA 30309
 
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