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AGL Resources Revises Full-Year 2012 Earnings Expectations



2013-01-10 23:52:31 -


Accounting Hedge Losses on Transportation Portfolio Negatively Impacted
Wholesale Services; Warmer Than Normal Weather in the Fourth Quarter Affected
Distribution Operations and Retail Operations Segments

ATLANTA - January 10, 2013 - AGL Resources Inc. (NYSE: GAS) today announced
preliminary diluted earnings per share adjusted for merger-related expenses of
approximately $2.45 for 2012. The company's previously disclosed guidance range
was $2.60 - $2.75 per diluted share for 2012, which assumed normal weather and
volatility and no impact from hedge movements. Complete financial results for
the company will be published on February 6, 2013.

The reduction in earnings relative to prior guidance is due primarily to the
following factors:

* Price movements related to the company's natural gas transportation
positions in its wholesale services segment resulted in approximately $22
million of mark-to-market accounting hedge losses during the fourth quarter
of 2012.

* The company expects these transportation hedge losses to be recovered in
2013 through 2015 (with the majority recognized in 2013) via the
physical flow of natural gas and utilization of the contracted
transportation capacity.
* The main driver of the mark-to-market losses during the fourth quarter
was significant volatility experienced at natural gas delivery points
throughout the Northeast corridor related to natural gas supply
constraints in the region.

* Warmer than normal weather negatively impacted the distribution operations
and the retail operations segments by a combined $10 million during the
fourth quarter of 2012.

As a reminder to the investment community, the reported earnings of AGL
Resources' wholesale services business are subject to volatility due to changes
in natural gas prices during the reporting period. Specifically, the company
enters into contracts for natural gas transportation capacity and participates
in transactions that manage natural gas commodity and transportation costs in an
attempt to achieve the lowest cost to serve customers. Geographic pricing
differences arise across various markets as delivered natural gas prices change.

After execution of transactions to secure transportation capacity, the company
often enters into forward financial contracts to hedge its positions and lock in
a margin on future transportation activities. The hedging instruments are
derivatives, and the company reflects changes in the derivatives' fair value in
its reported operating results in the period of change, which can be in periods
prior to actual utilization of the transportation capacity.

AGL Resources' management will discuss fourth-quarter and full-year 2012 results
in greater detail on the company's February 6, 2013 conference call. At that
time, earnings per share guidance will also be provided for full-year 2013. 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.

About AGL Resources
AGL Resources (NYSE: GAS) is an Atlanta-based energy services holding company
with operations in natural gas distribution, retail operations, wholesale
services, midstream operations and cargo shipping. As the nation's largest
natural gas-only distributor based on customer count, AGL Resources serves
approximately 4.5 million utility customers through its regulated distribution
subsidiaries in seven states. The company also serves more than one million
retail customers through its SouthStar Energy Services joint venture and Nicor
National, which market natural gas and related home services. Other non-utility
businesses include asset management for natural gas wholesale customers through
Sequent Energy Management, ownership and operation of natural gas storage
facilities, and ownership of Tropical Shipping, one of the largest containerized
cargo carriers serving the Bahamas and Caribbean region. AGL Resources is a
member of the S&P 500 Index. For more information, visit www.aglresources.com.

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," "believe,"
"can," "could,"
"estimate," "expect," "forecast," "future,"
"goal," "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
expectations. Forward-looking statements contained in this press release
include, without limitation, the timeframe in which we expect to recover our
transportation hedge losses and our 2012 earnings outlook and related
expectations and assumptions.
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.

Contacts:

Financial
Sarah Stashak
Director - Investor Relations
Office: 404-584-4577
Cell: 404-895-7634
sstashak@aglresources.com

Media
Annette Martinez
Director - External Relations
Office: 630-388-2781
Cell: 630-918-2321
amartinez@aglresources.com




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Source: AGL Resources via Thomson Reuters ONE
[HUG#1669745]


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