AGL Resources Revises Full-Year 2012 Earnings Expectations

Thu Jan 10, 2013 5:50pm EST

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

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.
*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 .

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
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.


Sarah Stashak
Director - Investor Relations
Office: 404-584-4577
Cell: 404-895-7634 

Annette Martinez
Director - External Relations
Office: 630-388-2781 
Cell: 630-918-2321


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Source: AGL Resources via Thomson Reuters ONE