SOUTHWESTERN SELLS MO. UTILITY ASSETS

FAYETTEVILLE, Ark. -- Southwestern Energy Company (NYSE: SWN) announced Tuesday that it has signed a definitive agreement to sell its Missouri gas distribution assets to Atmos Energy Corporation (NYSE: ATO) for $32.0 million. The transaction is subject to regulatory approval from the Missouri Public Service Commission and the Federal Energy Regulatory Commission."From the employees' standpoint, there should be little or no change," Harold M. Korrell, president and chief executive officer of Southwestern told the Signal Wednesday. "Atmos has assured us that they have positions for the people we currently have, in their new operation. It should be transparent to customer, as well. I don't think our customers should see any change. They should have the same reliable service they have had."The Missouri assets are part of Associated Natural Gas Company (Associated), a division of Arkansas Western Gas Company, which is a wholly-owned subsidiary of Southwestern. In Missouri, Associated employs 91 people and serves approximately 48,000 residential, commercial and industrial customers, primarily located near the towns of Sikeston, Kirksville, Butler and Jackson. Arkansas Western Gas Company serves approximately 131,000 customers in Arkansas and will continue to own and operate Associated's assets that are located in that state.

Korrell sees the transaction as being a positive one for both corporations."This is an area Atmos is already present in," he said. "It allows them to concentrate on an area of strength. It's a win-win transaction. That's behind it all."Southwestern will now focus energies in Arkansas, where it already has a bigger piece of the energy pie. Atmos, in a better position to compete in Missouri, will be able to put more emphasis here."It's a transaction that fits with our strategy as a company," Korrell said. "We're a relatively small player in Missouri. We decided we want to focus efforts in areas where we have a competitive advantage, such as the Arkansas region."He noted that it may take 10 months or more for the sale to be approved."In addition, this transaction will reduce our long-term debt and strengthen our capital structure," Korrell said. "We are grateful for the dedication and hard work of all our Associated employees and want to express special thanks to our Missouri employees that will now become a part of Atmos.""This transaction is consistent with Atmos' long-term corporate development strategy of increasing the value of the Company through strategic acquisitions," said Robert W. Best, Chairman, president and chief executive officer of Atmos Energy Corporation. "The addition of Southwestern Energy's 48,000 customers in Missouri increases our presence in that state and provides economies of scale which will result in a greater competitive advantage."Southwestern Energy Company is an integrated natural gas company whose wholly-owned subsidiaries are engaged in gas and oil exploration and production, natural gas gathering, transmission, and marketing, and natural gas distribution. Additional information on the Company can be found on the Internet at http://www.swn.com.