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<TITLE>UNITED STATES</TITLE>
<META NAME="author" CONTENT="James D. Anderson">
<META NAME="date" CONTENT="01/30/2003">
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<TABLE><TR><TD valign=top width=636 colspan=3><P style="margin:0pt; line-height:16pt; font-size:14pt" align=center><B>UNITED STATES</B></P>
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<TR><TD valign=top width=636 colspan=3><P style="margin:0pt; line-height:16pt; font-size:14pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt; line-height:14pt; font-size:12pt" align=center><B>Washington, D.C. &nbsp;20549</B></P>
</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt; line-height:16pt; font-size:14pt" align=center><B>FORM 8-K</B></P>
</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt; line-height:16pt; font-size:14pt" align=center><B>CURRENT REPORT</B></P>
</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt; font-size:14pt" align=center><B>PURSUANT TO SECTION 13 OR 15(d) OF</B></P>
</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt; line-height:16pt; font-size:14pt" align=center><B>THE SECURITIES EXCHANGE ACT OF 1934</B></P>
</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt; line-height:14pt; font-size:12pt" align=center>Date of Report (Date of earliest event reported): January 31, 2003</P>
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<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt; line-height:18pt; font-size:16pt" align=center><B>AGL RESOURCES INC.</B></P>
</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt; line-height:14pt; font-size:12pt" align=center>(Exact name of registrant as specified in its charter)</P>
</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=252><P style="margin:0pt; line-height:14pt; font-size:12pt" align=center><B>Georgia</B></P>
</TD><TD valign=top width=170.4><P style="margin:0pt; line-height:14pt; font-size:12pt" align=center><B>1-14174</B></P>
</TD><TD valign=top width=213.6><P style="margin:0pt; line-height:14pt; font-size:12pt" align=center><B>58-2210952</B></P>
</TD></TR>
<TR><TD valign=top width=252><P style="margin:0pt; padding-left:-14.4pt; text-indent:14.4pt" align=center>(State or other jurisdiction of incorporation or organization)</P>
</TD><TD valign=top width=170.4><P style="margin:0pt" align=center>(Commission File No.)</P>
</TD><TD valign=top width=213.6><P style="margin:0pt" align=center>(I.R.S. Employer Identification No.)</P>
</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt; line-height:14pt; font-size:12pt" align=center><B>817 West Peachtree Street, N.W., Suite 1000 Atlanta, Georgia 30308</B></P>
</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt" align=center>(Address and zip code of principle executive offices) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Zip Code)</P>
</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt; line-height:14pt; font-size:12pt" align=center><B>404-584-9470</B></P>
</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt" align=center>(Registrant's telephone number, including area code)</P>
</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=170.4>&nbsp;</TD><TD valign=top width=213.6>&nbsp;</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt; line-height:14pt; font-size:12pt" align=center><B>Not Applicable</B></P>
</TD></TR>
<TR><TD valign=top width=636 colspan=3><P style="margin:0pt" align=center>(Former name or former address, if changed since last report)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-size:12pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin-top:0pt; margin-bottom:12pt; line-height:14pt; font-size:12pt"><B>Item 9. Regulation FD Disclosure</B></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt">[AGL Resources logo]</P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:11pt; line-height:13pt; font-size:11pt"><B>FOR IMMEDIATE RELEASE</B></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; text-indent:279pt; font-size:11pt"><B><BR></B></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt"><B><I>Financial/Media Contact</I></B></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt">Steve Cave</P>
<P style="margin:0pt; line-height:13pt; font-size:11pt">Director, Investor Relations</P>
<P style="margin:0pt; line-height:13pt; font-size:11pt">(404) 584-3801</P>
<P style="margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:14pt; line-height:16pt; font-size:14pt" align=center><B>AGL RESOURCES ANNOUNCES 2002 EARNINGS
</B></P>
<P style="margin-top:0pt; margin-bottom:14pt; line-height:16pt; font-size:14pt" align=center><B>AND 2003 GUIDANCE</B></P>
<P style="margin-top:0pt; margin-bottom:14pt; font-size:14pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:14pt; font-size:14pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt; line-height:14pt; font-size:12pt" align=center><B><I>STRONG OPERATING PERFORMANCE AND LOWER EXPENSES </I></B></P>
<P style="margin-top:0pt; margin-bottom:12pt; line-height:14pt; font-size:12pt" align=center><B><I>DRIVE 10 PERCENT INCREASE IN YEAR-OVER-YEAR RESULTS</I></B></P>
<P style="margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt">ATLANTA, January 3
0, 2003 &#150;
AGL Resources Inc. (NYSE: ATG) today reported earnings of $1.84 per basic share and $1.82 per diluted share for the year ended December 31, 2002, compared with $1.67 per basic share for the 12 months ended December 31, 2001. &nbsp;Th ese results represent
a 10 percent
year-over-year increase in earnings per share , and exceed FirstCall consensus estimates of $1.7
6 per share. &nbsp;Excluding
from 2001 results the one-time $7.1 million after-tax gain
of $0.13 per share
 on the sale of Utilipro, Inc.,
the year-over-year increase is 19 percent. &nbsp; Net income in 2002 was $
103.0 million, compared with $
91.3 million in 2001.
</P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:5.5pt; line-height:13pt; font-size:11pt"> The company&#146;s 2002 results were
driven by improvement in the performance of each of its operating segments. &nbsp;Key performance drivers were lower operating expenses in Distribution Operations, improved contributions in Energy Investments from SouthStar Energy Services, and better performance in Wholesale Services. &nbsp;Earnings for the year also were e
nhanced by lower corporate interest expense , offset
by an increase in income taxes resulting from the increase in &nbsp;earnings. &nbsp;</P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt"> Fourth quarter 2002 consolidated net income was $31.2 million, or $0.55 per basic share, compared with $24.9 million, or $0.45 per basic share, for the same period in 2001. &nbsp;Consolidated earnings before interest and taxes (EBIT) in the fourth quarter 2002 was $70.5 million, an $8.2 million increase over the $62.3 million reported for the same period last year. &nbsp;As with the full-year results, key drivers of fourth-quarter earnings were strong operating performance in each of our business segments and lower interest expense
..</P>
<P style="margin-top:0pt; margin-bottom:5.5pt; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt">&#147;In a world of unrest, we are gratified to be a haven of value for our owners,&#148; said Paula G. Rosput, chairman, president and chief executive officer of AGL Resources. &nbsp;&#147;We are grateful for robust markets and the continuing commitment of our employees to improve our performance.&#148; </P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt"><B> KEY 2002 EBIT DRIVERS BY SEGMENT
</B></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:18pt; text-indent:-18pt; line-height:13pt; font-size:11pt">&#8226;</P>
<P style="margin:0pt; padding-left:18pt; line-height:13pt; font-size:11pt">The Distribution Operations segment continued to perform well during 2002, contributing EBIT
of $224.4 million for the 12 months ended
December 31, 2002, a n
 $11.3 million increase over the $213.1 million for the comparable period in 2001 . &nbsp;The increase was primarily the result of l
ower payroll and benefits
 expenses, decreases in bad debt expense and depreciation and amortization, as well as increases in operating margin due to increased revenues from Atlanta Gas Light Company&#146;s pipeline replacement program, customer growth at Virginia Natural Gas and Chattanooga Gas Company and the effect of a two-year
experimental weather normalization program implemented at VNG in November 2002 .
 &nbsp; These results were offset by a $
1.1 million
expected EBIT reduction due to the performance-based rate plan approved earlier in the year by the Georgia Public Service Commission in 2002
 for AGLC, which decreased revenues $6.7 million
, offset by decreased depreciation expense of $5.6 million .
 &nbsp;Additionally, AGLC&#146;s EBIT decreased as a result of a
 one-time adjustment in 2001 related to the reduction of inventory costs of natural gas stored underground and a decline in the number of customers connected to the system.</P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; padding-left:18pt; font-size:11pt"><B> <BR>
</B></P>
<P style="margin:0pt; padding-left:18pt; font-size:11pt"> <BR>
</P>
<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:18pt; text-indent:-18pt; line-height:13pt; font-size:11pt"> &#8226;
</P>
<P style="margin:0pt; padding-left:18pt; line-height:13pt; font-size:11pt"> The Wholesale Services segment contributed
</P>
<P style="margin:0pt; padding-left:18pt; line-height:13pt; font-size:11pt">
$9.1
 million in EBIT for the year compared to $6.5 million last year, a $2.6 million increase. &nbsp;Sequent benefited from warmer weather in the northeast and market disruptions caused by two hurricanes during the late summer, plus significant weather and supply-related price volatility in November and December, and the effect of a full year of providing peaking services. &nbsp;As a result, operating margin improved by $5.2 million from 2001 to 2002. &nbsp;The increased operating margin was offset by higher operating expenses of $13.6 million in 2002, compared with $8.8 million in 2001, primarily attributable to the addition of personnel to support the growth of the wholesale services business and a full year of operating expenses. &nbsp;In addition, 2001 EBIT for the segment included a one-time charge of $2.6 million related to the dissolution of a pre-existing joint venture development project formed in 1997, but later discontinued. &nbsp;&nbsp;</P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:18pt; text-indent:-18pt; line-height:13pt; font-size:11pt"> &#8226;
</P>
<P style="margin:0pt; padding-left:18pt; line-height:13pt; font-size:11pt"> The Energy Investments segment contributed $23.6 million in EBIT this year, compared
with $18.3 million last year, a $5.3 million increase. The year-over-year improvement reflects downward adjustments last year to
record lower-of-cost-or-market inventory issues at SouthStar Energy Services. &nbsp;&nbsp;
The 2002 r esults also were enhanced by increased contributions from AGL Resources&#146; investment in Heritage Propane and the receipt of a contract renewal payment associated with the terms of the
earlier sale of Utilipro. &nbsp;
2001 results include a one-time pre-tax gain of $10.9 million
 associated with the sale of Utilipro.
</P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; padding-left:18pt; line-height:13pt; font-size:11pt">
The Corporate segment&#146;s EBIT
</P>
<P style="margin:0pt; padding-left:18pt; line-height:13pt; font-size:11pt">
d
ecreased $10.2 million compared with the previous year primarily due to adjustments to establish reserves during 2002 for the contemplated settlement of a technology contract dispute, to record employee severance costs and to write off capital costs related to a terminated management software implementation project. &nbsp;These decreases were offset by the release of reserves related to the settlement of regulatory matters during the year and for unbilled revenue
issues at SouthStar during 2001. &nbsp;Additionally, the company&#146;s earnings <B>in 2002 </B>were enhanced by lower corporate interest expense of $10.5 million<B> ,
</B> offset by a<B> year-over-year</B> increase in income taxes of $7.8 million<B>, driven primarily by
higher earnings.</B></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt"><B> 2003
EARNINGS OUTLOOK</B></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt"> AGL Resources&#146; guidance for 2003 is consistent with the current
 range of FirstCall estimates (as of January 3
0 , 2003)
 of $1.85 to $1.90. &nbsp;This guidance
includes the effect of the
 company&#146;s planned equity offering
 announced today. &nbsp;</P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt"><B>Earnings Conference Call Webcast:</B> &nbsp;The AGL Resources year-end 2002 earnings conference call, scheduled for Friday, January 31, 2003, at 8:15 a.m. (EST)
, can be accessed via the AGL Resources website at <U>www.aglresources.com</U>. &nbsp;An audio replay of the call also will be available; the dial-in number for the replay is
800-633-8284 (PIN: 21116862). The webcast
will be archived on the website, and the audio replay will be available, through Friday, February 7, 2003. &nbsp;
&nbsp;</P>
<P style="margin:0pt; font-size:12pt" align=center><BR></P>
<P style="margin:0pt">AGL Resources Inc. (NYSE: ATG) is an Atlanta-based energy services holding company. &nbsp;Nearly 2 million natural gas customers are served through subsidiaries Atlanta Gas Light Company, Virginia Natural Gas and Chattanooga Gas Company. &nbsp;Houston-based subsidiary Sequent Energy Management provides asset management services, including the wholesale trading, marketing, gathering and transportation of natural gas. &nbsp;As a member of the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. &nbsp;AGL Networks, the company&#146;s telecommunications subsidiary, owns and operates fiber optic networks in Atlanta and Phoenix. &nbsp;For more information, visit www.aglresources.com.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify>This press release contains forward-looking statements. &nbsp;AGL Resources wishes to caution readers that the assumptions, which form the basis for the forward-looking statements, include many factors that are beyond AGL Resources&#146; ability to control or estimate precisely. &nbsp;Those factors include, but are not limited to, the following: changes in industrial, commercial and residential growth in the service territories of AGL Resources Inc. and its subsidiaries; changes in price, supply and demand for natural gas and related products; impact of changes in state and federal legislation and regulation, including orders of various state public service commissions and of the Federal Energy Regulatory Commission, on the gas and electric industries and on AGL Resources, including the impact of Atlanta Gas Light Company's performance based rate plan; effects and uncertainties of deregulation and competition, particularly in markets where prices and providers historically have been regulated, unknown issues following deregulation such as the stability of certificated marketers, and unknown risks related to nonregulated businesses, including risks related to energy marketing and risk management; market changes due to Georgia&#146;s Natural Gas Consumers' Relief Act of 2002; concentration of credit risk in certificated marketers; excess high-speed network capacity and demand for dark fiber in metropolitan network areas of AGL Networks&#146; customers; market acceptance of new fiber-optic technologies and products, as well as the adoption of new networking standards; our ability to negotiate new contracts with telecommunications providers for the provision of AGL Networks&#146; dark fiber services; utility and energy industry consolidation; impact of acquisitions and divestitures; the ultimate impact of the Sarbanes-Oxley Act of 2002 and any future changes in accounting regulations or practices in general with respect to public companies, the energy industry or AGL Resources; the enactment of new accounting standards by standard-setting bodies such as the Financial Accounting Standards Board or the Securities and Exchange Commission that could impact the way AGL Resources records revenues, assets and liabilities, which could lead to negative impacts on reported earnings or increases in liabilities, which in turn could affect AGL Resources&#146; reported results of operations; performance of equity and bond markets and the impact on pension funding costs; direct or indirect effects on AGL Resources&#146; business, financial condition or liquidity resulting from a change in the company&#146;s credit ratings or the credit ratings of its competitors or counterparties; interest rate fluctuations, financial market conditions and general economic conditions; uncertainties about environmental issues and the related impact of such issues; impact of changes in weather upon the temperature-sensitive portions of the business; impact of litigation; impact of changes in prices on the margins achievable in the unregulated retail gas marketing business and other risks described in AGL Resources&#146; documents on file with the Securities and Exchange Commission.</P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; font-size:12pt"><BR></P>
<TABLE><TR><TD valign=bottom width=628.067 colspan=9><P style="margin:0pt" align=center><B>AGL Resources Inc.</B></P>
</TD></TR>
<TR><TD valign=bottom width=628.067 colspan=9><P style="margin:0pt" align=center><B>Condensed Statements of Consolidated Income</B></P>
</TD></TR>
<TR><TD valign=bottom width=628.067 colspan=9><P style="margin:0pt" align=center><B>For the Three Months and Twelve Months Ended </B></P>
</TD></TR>
<TR><TD valign=bottom width=628.067 colspan=9><P style="margin:0pt" align=center><B>December 31, 2002 and 2001</B></P>
</TD></TR>
<TR><TD valign=bottom width=628.067 colspan=9><P style="margin:0pt" align=center><B>(In millions, except per share amounts)</B></P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=192.867 colspan=3><P style="margin:0pt" align=center><B>Three Months</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=191.467 colspan=3><P style="margin:0pt" align=center><B>Twelve Months</B></P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD style="border:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=center><B>12/31/2002</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border:0.5pt solid #000000" valign=bottom width=89.267><P style="margin:0pt" align=center><B>12/31/2001</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=center><B>12/31/2002</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=center><B>12/31/2001</B></P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=228 colspan=2><P style="margin:0pt">Operating Revenues</P>
</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>$249.7</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267><P style="margin:0pt" align=right>$201.0</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>$868.9</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>$847.1</P>
</TD></TR>
<TR><TD valign=bottom width=228 colspan=2><P style="margin:0pt">Cost of Sales</P>
</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>89.7 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267><P style="margin:0pt; text-indent:38.6pt" align=right>49.1 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>268.2 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>245.6 </P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=228 colspan=2><P style="margin:0pt"><B>Operating Margin</B></P>
</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>160.0 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=89.267><P style="margin:0pt" align=right><B>151.9 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>600.7 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>601.5 </B></P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=228 colspan=2><P style="margin:0pt">Total Operating Expenses</P>
</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>99.2 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267><P style="margin:0pt" align=right>97.3 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>392.5 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>388.6 </P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=228 colspan=2><P style="margin:0pt"><B>Operating Income</B></P>
</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>60.8 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=89.267><P style="margin:0pt" align=right><B>54.6 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>208.2 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>212.9 </B></P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=228 colspan=2><P style="margin:0pt"><B>Other (Loss) Income</B></P>
</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>9.7 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267><P style="margin:0pt" align=right>7.7 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>38.8 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>25.1 </P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=228 colspan=2><P style="margin:0pt"><B>Earnings Before Interest &amp; Taxes</B></P>
</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>70.5 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=89.267><P style="margin:0pt" align=right><B>62.3 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>247.0 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>238.0 </B></P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=228 colspan=2><P style="margin:0pt">Interest Expense</P>
</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>20.7 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267><P style="margin:0pt" align=right>23.8 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>86.0 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>96.5 </P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=228 colspan=2><P style="margin:0pt"><B>Earnings Before Income Taxes</B></P>
</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>49.8 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=89.267><P style="margin:0pt" align=right><B>38.5 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>161.0 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>141.5 </B></P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=228 colspan=2><P style="margin:0pt">Income Taxes</P>
</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>18.6 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267><P style="margin:0pt" align=right>13.6 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>58.0 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>50.2 </P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=228 colspan=2><P style="margin:0pt"><B>Net Income</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.75pt double #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>$31.2 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.75pt double #000000" valign=bottom width=89.267><P style="margin:0pt" align=right><B>$24.9 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.75pt double #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>$103.0 </B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.75pt double #000000" valign=bottom width=87.867><P style="margin:0pt" align=right><B>$91.3 </B></P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=117.8><P style="margin:0pt"><B>EPS</B></P>
</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=117.8><P style="margin:0pt">&nbsp;</P>
</TD><TD valign=bottom width=110.2><P style="margin:0pt">Basic</P>
</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>$0.55 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267><P style="margin:0pt" align=right>$0.45 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>$1.84 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>$1.67 </P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2><P style="margin:0pt">Diluted</P>
</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>$0.55 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267><P style="margin:0pt" align=right>$0.45 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>$1.82 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>$1.65 </P>
</TD></TR>
<TR><TD valign=bottom width=228 colspan=2><P style="margin:0pt"><B>Shares Outstanding</B></P>
</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2><P style="margin:0pt">Basic</P>
</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>56.5 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267><P style="margin:0pt" align=right>55.3 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>56.1 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>54.8 </P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2><P style="margin:0pt">Diluted</P>
</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>57.1 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267><P style="margin:0pt" align=right>55.6 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>56.6 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>55.2 </P>
</TD></TR>
<TR><TD valign=bottom width=117.8>&nbsp;</TD><TD valign=bottom width=110.2>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=228 colspan=2><P style="margin:0pt" align=justify><B>Cash Dividends paid per common share</B></P>
</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>$0.27 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=89.267><P style="margin:0pt" align=right>$0.27 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>$1.08 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=87.867><P style="margin:0pt" align=right>$1.08 </P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin-top:0pt; margin-bottom:10pt"><BR></P>
<TABLE><TR><TD valign=bottom width=694.267 colspan=13><P style="margin:0pt" align=center><B>AGL Resources Inc.</B></P>
</TD></TR>
<TR><TD valign=bottom width=694.267 colspan=13><P style="margin:0pt" align=center><B>EBIT Schedule </B></P>
</TD></TR>
<TR><TD valign=bottom width=694.267 colspan=13><P style="margin:0pt" align=center><B>For the Three Months and Twelve Months Ended</B></P>
</TD></TR>
<TR><TD valign=bottom width=694.267 colspan=13><P style="margin:0pt" align=center><B>December 31, 2002 and 2001</B></P>
</TD></TR>
<TR><TD valign=bottom width=694.267 colspan=13><P style="margin:0pt" align=center><B>(In millions, except per share amounts)</B></P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=140.267>&nbsp;</TD><TD valign=bottom width=71.133>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=77.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=140.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=261.4 colspan=5><P style="margin:0pt" align=center><B>Three Months</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=261.133 colspan=5><P style="margin:0pt" align=center><B>Twelve Months</B></P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=140.267>&nbsp;</TD><TD valign=bottom width=71.133>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=77.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=140.267>&nbsp;</TD><TD style="border:1pt solid #000000" valign=bottom width=71.133><P style="margin:0pt" align=center><B>12/31/2002</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD style="border:1pt solid #000000" valign=bottom width=76.6><P style="margin:0pt" align=center><B>12/31/2001</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD style="border:1pt solid #000000" valign=bottom width=76.6><P style="margin:0pt" align=center><B>Fav/(Unfav)</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border:1pt solid #000000" valign=bottom width=70><P style="margin:0pt" align=center><B>12/31/2002</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD style="border:1pt solid #000000" valign=bottom width=76.6><P style="margin:0pt" align=center><B>12/31/2001</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD style="border:1pt solid #000000" valign=bottom width=77.467><P style="margin:0pt" align=center><B>Fav/(Unfav)</B></P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=140.267>&nbsp;</TD><TD valign=bottom width=71.133>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=77.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=156 colspan=2><P style="margin:0pt"><B>Distribution Operations </B></P>
</TD><TD valign=bottom width=71.133><P style="margin:0pt" align=right><B>$60.4</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:31.15pt"><B>$59.8</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:35.75pt"><B>$0.6</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; text-indent:30.1pt"><B>$224.4</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt" align=right><B>$213.1</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=77.467><P style="margin:0pt; text-indent:31.25pt"><B>$11.3</B></P>
</TD></TR>
<TR><TD valign=bottom width=156 colspan=2><P style="margin:0pt"><B>Wholesale Services</B></P>
</TD><TD valign=bottom width=71.133><P style="margin:0pt" align=right><B>4.3</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:41.15pt"><B>3.4</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:40.75pt"><B>0.9</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; text-indent:45.1pt"><B>9.1</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt" align=right><B>6.5</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=77.467><P style="margin:0pt; text-indent:41.25pt"><B>2.6</B></P>
</TD></TR>
<TR><TD valign=bottom width=156 colspan=2><P style="margin:0pt"><B>Energy Investments</B></P>
</TD><TD valign=bottom width=71.133><P style="margin:0pt" align=right><B>5.5</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:41.15pt"><B>3.6</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:40.75pt"><B>1.9</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; text-indent:40.1pt"><B>23.6</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt" align=right><B>18.3</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=77.467><P style="margin:0pt; text-indent:41.25pt"><B>5.3</B></P>
</TD></TR>
<TR><TD valign=bottom width=156 colspan=2><P style="margin:0pt"><B>Corporate</B></P>
</TD><TD valign=bottom width=71.133><P style="margin:0pt" align=right><B>0.3</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:37.8pt"><B>(4.5)</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:40.75pt"><B>4.8</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; text-indent:36.75pt"><B>(10.1)</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt" align=right><B>0.1</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=77.467><P style="margin:0pt; text-indent:32.9pt"><B>(10.2)</B></P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=140.267><P style="margin:0pt"><B>ConsolidatedEBIT</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=71.133><P style="margin:0pt" align=right><B>70.5</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=18.533>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=76.6><P style="margin:0pt; text-indent:36.15pt"><B>62.3</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=18.533>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=76.6><P style="margin:0pt; text-indent:40.75pt"><B>8.2</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=70><P style="margin:0pt; text-indent:35.1pt"><B>247.0</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=18.533>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=76.6><P style="margin:0pt" align=right><B>238.0</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=18.533>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=77.467><P style="margin:0pt; text-indent:41.25pt"><B>9.0</B></P>
</TD></TR>
<TR><TD valign=bottom width=156 colspan=2><P style="margin:0pt"><B>Interest Expense</B></P>
</TD><TD valign=bottom width=71.133><P style="margin:0pt" align=right><B>20.7</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:36.15pt"><B>23.8</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:40.75pt"><B>3.1</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; text-indent:40.1pt"><B>86.0</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt" align=right><B>96.5</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=77.467><P style="margin:0pt; text-indent:36.25pt"><B>10.5</B></P>
</TD></TR>
<TR><TD valign=bottom width=156 colspan=2><P style="margin:0pt"><B>Income Taxes</B></P>
</TD><TD valign=bottom width=71.133><P style="margin:0pt" align=right><B>18.6</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:36.15pt"><B>13.6</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:37.4pt"><B>(5.0)</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; text-indent:40.1pt"><B>58.0</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt" align=right><B>50.2</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=77.467><P style="margin:0pt; text-indent:37.9pt"><B>(7.8)</B></P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=140.267><P style="margin:0pt"><B>NetIncome</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=71.133><P style="margin:0pt" align=right><B>$31.2</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=18.533>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=76.6><P style="margin:0pt; text-indent:31.15pt"><B>$24.9</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=18.533>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=76.6><P style="margin:0pt; text-indent:35.75pt"><B>$6.3</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=70><P style="margin:0pt; text-indent:30.1pt"><B>$103.0</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=18.533>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=76.6><P style="margin:0pt" align=right><B>$91.3</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=18.533>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=77.467><P style="margin:0pt; text-indent:31.25pt"><B>$11.7</B></P>
</TD></TR>
<TR><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=140.267>&nbsp;</TD><TD valign=bottom width=71.133>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:46.15pt"><B><BR></B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:45.75pt"><B><BR></B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; text-indent:50.1pt"><BR></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=77.467><P style="margin:0pt; text-indent:46.25pt"><B><BR></B></P>
</TD></TR>
<TR><TD valign=bottom width=156 colspan=2><P style="margin:0pt"><B>Earnings per Common Share</B></P>
</TD><TD valign=bottom width=71.133>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:46.15pt"><B><BR></B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6><P style="margin:0pt; text-indent:45.75pt"><B><BR></B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; text-indent:50.1pt"><BR></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=76.6>&nbsp;</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=77.467><P style="margin:0pt; text-indent:46.25pt"><B><BR></B></P>
</TD></TR>
<TR><TD valign=bottom width=156 colspan=2><P style="margin:0pt"><B>&nbsp;&nbsp;&nbsp;Basic</B></P>
</TD><TD style="border-bottom:0.75pt double #000000" valign=bottom width=71.133><P style="margin:0pt" align=right><B>$0.55</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD style="border-bottom:0.75pt double #000000" valign=bottom width=76.6><P style="margin:0pt; text-indent:36.15pt"><B>$0.45</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD style="border-bottom:0.75pt double #000000" valign=bottom width=76.6><P style="margin:0pt; text-indent:35.75pt"><B>$0.10</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.75pt double #000000" valign=bottom width=70><P style="margin:0pt; text-indent:40.1pt"><B>$1.84</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD style="border-bottom:0.75pt double #000000" valign=bottom width=76.6><P style="margin:0pt" align=right><B>$1.67</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD style="border-bottom:0.75pt double #000000" valign=bottom width=77.467><P style="margin:0pt; text-indent:36.25pt"><B>$0.17</B></P>
</TD></TR>
<TR><TD valign=bottom width=156 colspan=2><P style="margin:0pt"><B>&nbsp;&nbsp;&nbsp;Diluted</B></P>
</TD><TD style="border-bottom:0.75pt double #000000" valign=bottom width=71.133><P style="margin:0pt" align=right><B>$0.55</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD style="border-bottom:0.75pt double #000000" valign=bottom width=76.6><P style="margin:0pt; text-indent:36.15pt"><B>$0.45</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD style="border-bottom:0.75pt double #000000" valign=bottom width=76.6><P style="margin:0pt; text-indent:35.75pt"><B>$0.10</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.75pt double #000000" valign=bottom width=70><P style="margin:0pt; text-indent:40.1pt"><B>$1.82</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD style="border-bottom:0.75pt double #000000" valign=bottom width=76.6><P style="margin:0pt" align=right><B>$1.65</B></P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD style="border-bottom:0.75pt double #000000" valign=bottom width=77.467><P style="margin:0pt; text-indent:36.25pt"><B>$0.17</B></P>
</TD></TR>
</TABLE>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin-top:0pt; margin-bottom:12pt; line-height:14pt; font-size:12pt"><B>SIGNATURE</B></P>
<P style="margin-top:0pt; margin-bottom:6pt; line-height:14pt; font-size:12pt" align=justify>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<TABLE><TR><TD valign=top width=217.2>&nbsp;</TD><TD valign=top width=372><P style="margin:0pt; line-height:14pt; font-size:12pt"><B>AGL RESOURCES INC.</B></P>
</TD></TR>
<TR><TD valign=top width=217.2>&nbsp;</TD><TD valign=top width=372><P style="margin:0pt; line-height:14pt; font-size:12pt">(Registrant)</P>
</TD></TR>
<TR><TD valign=top width=217.2><P style="margin:0pt; line-height:14pt; font-size:12pt">Date: &nbsp;January 31, 2003</P>
</TD><TD valign=top width=372><P style="margin:0pt; line-height:14pt; font-size:12pt"><U>/s/ Richard T. O&#146;Brien</U></P>
</TD></TR>
<TR><TD valign=top width=217.2>&nbsp;</TD><TD valign=top width=372><P style="margin:0pt; line-height:14pt; font-size:12pt">Executive Vice President and Chief Financial Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-size:12pt"><BR></P>
</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "item9.htm", "description": "EARNINGS RELEASE FOR QTR AND YEAR ENDED 12/31/02", "secsgml_size_bytes": 56455}]
{"company-data": {"conformed-name": "AGL RESOURCES INC", "cik": "0001004155", "assigned-sic": "4924", "irs-number": "582210952", "state-of-incorporation": "GA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-14174", "film-number": "03533118"}, "business-address": {"street1": "817 WEST PEACHTREE ST NW", "street2": "10TH FLOOR", "city": "ATLANTA", "state": "GA", "zip": "30308", "phone": "4045849470"}, "mail-address": {"street1": "1219 CAROLINE ST.", "street2": "DEPT. 1200", "city": "ATLANTA", "state": "GA", "zip": "30307"}}
UNITED STATES
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 31, 2003
AGL RESOURCES INC.
(Exact name of registrant as specified in its charter)
Georgia
1-14174
58-2210952
(State or other jurisdiction of incorporation or organization)
(Commission File No.)
(I.R.S. Employer Identification No.)
817 West Peachtree Street, N.W., Suite 1000 Atlanta, Georgia 30308
(Address and zip code of principle executive offices)              (Zip Code)
404-584-9470
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Item 9. Regulation FD Disclosure
[AGL Resources logo]
FOR IMMEDIATE RELEASE
Financial/Media Contact
Steve Cave
Director, Investor Relations
(404) 584-3801
AGL RESOURCES ANNOUNCES 2002 EARNINGS
AND 2003 GUIDANCE
STRONG OPERATING PERFORMANCE AND LOWER EXPENSES
DRIVE 10 PERCENT INCREASE IN YEAR-OVER-YEAR RESULTS
ATLANTA, January 3
0, 2003 –
AGL Resources Inc. (NYSE: ATG) today reported earnings of $1.84 per basic share and $1.82 per diluted share for the year ended December 31, 2002, compared with $1.67 per basic share for the 12 months ended December 31, 2001.  Th ese results represent
a 10 percent
year-over-year increase in earnings per share , and exceed FirstCall consensus estimates of $1.7
6 per share.  Excluding
from 2001 results the one-time $7.1 million after-tax gain
of $0.13 per share
 on the sale of Utilipro, Inc.,
the year-over-year increase is 19 percent.   Net income in 2002 was $
103.0 million, compared with $
91.3 million in 2001.
The company's 2002 results were
driven by improvement in the performance of each of its operating segments.  Key performance drivers were lower operating expenses in Distribution Operations, improved contributions in Energy Investments from SouthStar Energy Services, and better performance in Wholesale Services.  Earnings for the year also were e
nhanced by lower corporate interest expense , offset
by an increase in income taxes resulting from the increase in  earnings.
Fourth quarter 2002 consolidated net income was $31.2 million, or $0.55 per basic share, compared with $24.9 million, or $0.45 per basic share, for the same period in 2001.  Consolidated earnings before interest and taxes (EBIT) in the fourth quarter 2002 was $70.5 million, an $8.2 million increase over the $62.3 million reported for the same period last year.  As with the full-year results, key drivers of fourth-quarter earnings were strong operating performance in each of our business segments and lower interest expense
..
"In a world of unrest, we are gratified to be a haven of value for our owners," said Paula G. Rosput, chairman, president and chief executive officer of AGL Resources.  "We are grateful for robust markets and the continuing commitment of our employees to improve our performance."
KEY 2002 EBIT DRIVERS BY SEGMENT
•
The Distribution Operations segment continued to perform well during 2002, contributing EBIT
of $224.4 million for the 12 months ended
December 31, 2002, a n
 $11.3 million increase over the $213.1 million for the comparable period in 2001 .  The increase was primarily the result of l
ower payroll and benefits
 expenses, decreases in bad debt expense and depreciation and amortization, as well as increases in operating margin due to increased revenues from Atlanta Gas Light Company's pipeline replacement program, customer growth at Virginia Natural Gas and Chattanooga Gas Company and the effect of a two-year
experimental weather normalization program implemented at VNG in November 2002 .
   These results were offset by a $
1.1 million
expected EBIT reduction due to the performance-based rate plan approved earlier in the year by the Georgia Public Service Commission in 2002
 for AGLC, which decreased revenues $6.7 million
, offset by decreased depreciation expense of $5.6 million .
  Additionally, AGLC's EBIT decreased as a result of a
 one-time adjustment in 2001 related to the reduction of inventory costs of natural gas stored underground and a decline in the number of customers connected to the system.
•
The Wholesale Services segment contributed
$9.1
 million in EBIT for the year compared to $6.5 million last year, a $2.6 million increase.  Sequent benefited from warmer weather in the northeast and market disruptions caused by two hurricanes during the late summer, plus significant weather and supply-related price volatility in November and December, and the effect of a full year of providing peaking services.  As a result, operating margin improved by $5.2 million from 2001 to 2002.  The increased operating margin was offset by higher operating expenses of $13.6 million in 2002, compared with $8.8 million in 2001, primarily attributable to the addition of personnel to support the growth of the wholesale services business and a full year of operating expenses.  In addition, 2001 EBIT for the segment included a one-time charge of $2.6 million related to the dissolution of a pre-existing joint venture development project formed in 1997, but later discontinued.
•
The Energy Investments segment contributed $23.6 million in EBIT this year, compared
with $18.3 million last year, a $5.3 million increase. The year-over-year improvement reflects downward adjustments last year to
record lower-of-cost-or-market inventory issues at SouthStar Energy Services.   
The 2002 r esults also were enhanced by increased contributions from AGL Resources' investment in Heritage Propane and the receipt of a contract renewal payment associated with the terms of the
earlier sale of Utilipro.  
2001 results include a one-time pre-tax gain of $10.9 million
 associated with the sale of Utilipro.
The Corporate segment's EBIT
d
ecreased $10.2 million compared with the previous year primarily due to adjustments to establish reserves during 2002 for the contemplated settlement of a technology contract dispute, to record employee severance costs and to write off capital costs related to a terminated management software implementation project.  These decreases were offset by the release of reserves related to the settlement of regulatory matters during the year and for unbilled revenue
issues at SouthStar during 2001.  Additionally, the company's earnings
in 2002
were enhanced by lower corporate interest expense of $10.5 million
,
offset by a
year-over-year
increase in income taxes of $7.8 million
, driven primarily by
higher earnings.
2003
EARNINGS OUTLOOK
AGL Resources' guidance for 2003 is consistent with the current
 range of FirstCall estimates (as of January 3
0 , 2003)
 of $1.85 to $1.90.  This guidance
includes the effect of the
 company's planned equity offering
 announced today.
Earnings Conference Call Webcast:
The AGL Resources year-end 2002 earnings conference call, scheduled for Friday, January 31, 2003, at 8:15 a.m. (EST)
, can be accessed via the AGL Resources website at
www.aglresources.com
.  An audio replay of the call also will be available; the dial-in number for the replay is
800-633-8284 (PIN: 21116862). The webcast
will be archived on the website, and the audio replay will be available, through Friday, February 7, 2003.
AGL Resources Inc. (NYSE: ATG) is an Atlanta-based energy services holding company.  Nearly 2 million natural gas customers are served through subsidiaries Atlanta Gas Light Company, Virginia Natural Gas and Chattanooga Gas Company.  Houston-based subsidiary Sequent Energy Management provides asset management services, including the wholesale trading, marketing, gathering and transportation of natural gas.  As a member of the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand.  AGL Networks, the company's telecommunications subsidiary, owns and operates fiber optic networks in Atlanta and Phoenix.  For more information, visit www.aglresources.com.
This press release contains forward-looking statements.  AGL Resources wishes to caution readers that the assumptions, which form the basis for the forward-looking statements, include many factors that are beyond AGL Resources' ability to control or estimate precisely.  Those factors include, but are not limited to, the following: changes in industrial, commercial and residential growth in the service territories of AGL Resources Inc. and its subsidiaries; changes in price, supply and demand for natural gas and related products; impact of changes in state and federal legislation and regulation, including orders of various state public service commissions and of the Federal Energy Regulatory Commission, on the gas and electric industries and on AGL Resources, including the impact of Atlanta Gas Light Company's performance based rate plan; effects and uncertainties of deregulation and competition, particularly in markets where prices and providers historically have been regulated, unknown issues following deregulation such as the stability of certificated marketers, and unknown risks related to nonregulated businesses, including risks related to energy marketing and risk management; market changes due to Georgia's Natural Gas Consumers' Relief Act of 2002; concentration of credit risk in certificated marketers; excess high-speed network capacity and demand for dark fiber in metropolitan network areas of AGL Networks' customers; market acceptance of new fiber-optic technologies and products, as well as the adoption of new networking standards; our ability to negotiate new contracts with telecommunications providers for the provision of AGL Networks' dark fiber services; utility and energy industry consolidation; impact of acquisitions and divestitures; the ultimate impact of the Sarbanes-Oxley Act of 2002 and any future changes in accounting regulations or practices in general with respect to public companies, the energy industry or AGL Resources; the enactment of new accounting standards by standard-setting bodies such as the Financial Accounting Standards Board or the Securities and Exchange Commission that could impact the way AGL Resources records revenues, assets and liabilities, which could lead to negative impacts on reported earnings or increases in liabilities, which in turn could affect AGL Resources' reported results of operations; performance of equity and bond markets and the impact on pension funding costs; direct or indirect effects on AGL Resources' business, financial condition or liquidity resulting from a change in the company's credit ratings or the credit ratings of its competitors or counterparties; interest rate fluctuations, financial market conditions and general economic conditions; uncertainties about environmental issues and the related impact of such issues; impact of changes in weather upon the temperature-sensitive portions of the business; impact of litigation; impact of changes in prices on the margins achievable in the unregulated retail gas marketing business and other risks described in AGL Resources' documents on file with the Securities and Exchange Commission.
AGL Resources Inc.
Condensed Statements of Consolidated Income
For the Three Months and Twelve Months Ended
December 31, 2002 and 2001
(In millions, except per share amounts)
Three Months
Twelve Months
12/31/2002
12/31/2001
12/31/2002
12/31/2001
Operating Revenues
$249.7
$201.0
$868.9
$847.1
Cost of Sales
89.7
49.1
268.2
245.6
Operating Margin
160.0
151.9
600.7
601.5
Total Operating Expenses
99.2
97.3
392.5
388.6
Operating Income
60.8
54.6
208.2
212.9
Other (Loss) Income
9.7
7.7
38.8
25.1
Earnings Before Interest & Taxes
70.5
62.3
247.0
238.0
Interest Expense
20.7
23.8
86.0
96.5
Earnings Before Income Taxes
49.8
38.5
161.0
141.5
Income Taxes
18.6
13.6
58.0
50.2
Net Income
$31.2
$24.9
$103.0
$91.3
EPS
Basic
$0.55
$0.45
$1.84
$1.67
Diluted
$0.55
$0.45
$1.82
$1.65
Shares Outstanding
Basic
56.5
55.3
56.1
54.8
Diluted
57.1
55.6
56.6
55.2
Cash Dividends paid per common share
$0.27
$0.27
$1.08
$1.08
AGL Resources Inc.
EBIT Schedule
For the Three Months and Twelve Months Ended
December 31, 2002 and 2001
(In millions, except per share amounts)
Three Months
Twelve Months
12/31/2002
12/31/2001
Fav/(Unfav)
12/31/2002
12/31/2001
Fav/(Unfav)
Distribution Operations
$60.4
$59.8
$0.6
$224.4
$213.1
$11.3
Wholesale Services
4.3
3.4
0.9
9.1
6.5
2.6
Energy Investments
5.5
3.6
1.9
23.6
18.3
5.3
Corporate
0.3
(4.5)
4.8
(10.1)
0.1
(10.2)
ConsolidatedEBIT
70.5
62.3
8.2
247.0
238.0
9.0
Interest Expense
20.7
23.8
3.1
86.0
96.5
10.5
Income Taxes
18.6
13.6
(5.0)
58.0
50.2
(7.8)
NetIncome
$31.2
$24.9
$6.3
$103.0
$91.3
$11.7
Earnings per Common Share
Basic
$0.55
$0.45
$0.10
$1.84
$1.67
$0.17
Diluted
$0.55
$0.45
$0.10
$1.82
$1.65
$0.17
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AGL RESOURCES INC.
(Registrant)
Date:  January 31, 2003
/s/ Richard T. O'Brien
Executive Vice President and Chief Financial Officer