Real Results Real 2003 AGL Resources Shareholder Meeting Presented By Paula G. Rosput Chairman, President and Chief Executive Officer 2003 AGL Resources Shareholder Meeting Presented By Paula G. Rosput Chairman, President and Chief Executive Officer

Welcome To Ten Peachtree Place 2003 AGL Resources Shareholder Meeting AGLR Board of Directors Officers and Management Guests Ten Peachtree Place 2003 AGL Resources Shareholder Meeting AGLR Board of Directors Officers and Management Guests

Then and Now

Setting Records value highest earnings per share peak-day send outs highest stock price customers

value

Today’s Objectives Review of 2002 Goals and Results Goals for 2003 Challenges & Opportunities AGL Resources Corporate Values Review of 2002 Goals and Results Goals for 2003 Challenges & Opportunities AGL Resources Corporate Values

value improve earnings improve earnings

ATG Earnings Per Share (By Calendar Quarter) $1.84 per share 19% increase over $1.84 per share 19% increase over 2001 Cents 1.00, Cents 1.00, Q2Q3Q4Q

Strategy or Tactics?  No “new and improved” strategy necessary  Stay the course  Execute with precision  Stick with the fundamentals

ATG Stock Price 2002 Dec 16: Hits $25.00 High Dec 16: Hits $25.00 High

ATG versus S&P and Peer Group 10.7% 2.0% -22.1% ATG LDC S&P

CORE EARNINGS Dollars in millions CORE EARNINGS PER SHARE Dollar

ATG 3-Year Stock & Return Index LDCs ATG S&P 500 4/00 4/01 4/02 4/03 LDCs ATG S&P 500 STOCK PRICE RETURN ON INVESTMENT

ATG Outperforming Blue-chip Stocks ATG is trading at 94% of its 52-week high, outpacing nearly every company in the Dow Jones Industrial Average index *As of April 2, 2003

ATG Outperforming Its Peers, Too Trading at 94% of its 52-week high, ATG is outperforming its energy sector peer group, which is trading at an average of 80% of the 52-week high. *As of April 2, 2003

value regulatory paradigm regulatory paradigm change the change the

Regulatory Highlights

Georgia Settlement reached Performance- based plan Settlement reached Performance- based plan

Virginia Weather normalization adjustment

Stability In Rates & Relations Sequent

value accelerate telecom accelerate telecom

Our Current Networks Atlanta Metro Phoenix Metro

value our accomplishments our accomplishments

$25 6% $1.84 CORE EARNINGS PER SHARE Dollar SHARE PRICE Dollar TOTAL RETURN TO SHAREHOLDERS Percent 11% value Expanded AGL Networks Rate and regulatory stability

SouthStar 70% 30% Georgia Natural Gas Improve customer base Improve service Enhance quality of earnings Improve customer base Improve service Enhance quality of earnings

value realities realities

If You Don’t Drill… Source: EIA …and you consume more –

Storage Will Fall & Prices Rise Source: EIA Mar 01 Mar 02March 03 $ $ Historical range of storage volumes Weekly storage volumes Natural gas spot prices Historical range of storage volumes Weekly storage volumes Natural gas spot prices

NYMEX Forward Curve & Volatility Close of Business April 10, 2003

Volatility and Pricing Use Sequent’s expertise to benefit our customers Diversify pipelines and storage Increased LNG use Use Sequent’s expertise to benefit our customers Diversify pipelines and storage Increased LNG use

value goals for 2003 goals for 2003

value ourselves ourselves financially financially strengthen strengthen

Equity Offering Completed a $137 million equity offering in February 6.4 million shares Reduced our debt-to- capitalization ratio from 67 to 57 percent Solidified our credit ratings Received upgrade to A- by Fitch Completed a $137 million equity offering in February 6.4 million shares Reduced our debt-to- capitalization ratio from 67 to 57 percent Solidified our credit ratings Received upgrade to A- by Fitch

Post-Offering Consensus:$ Includes dilution of $0.10 per share from equity offering Price has recovered nicely Trading in mid-to-high $23 range with healthy volumes Continued after-market institutional support Consensus:$ Includes dilution of $0.10 per share from equity offering Price has recovered nicely Trading in mid-to-high $23 range with healthy volumes Continued after-market institutional support

value around our around our existing assets existing assets grow grow

Meeting Expectations Wall Street: 5-7% growth Operate well run utilities Limited growth Regulatory restrictions Slowing regional economies Keep costs low – raise revenue Wall Street: 5-7% growth Operate well run utilities Limited growth Regulatory restrictions Slowing regional economies Keep costs low – raise revenue

Opportunity

value flawlessly flawlessly in every business segment in every business segment execute execute

Not a Luxury – A Necessity Safety a must Required commodity Avoid costly mistakes Use proven technology Enhance Sequent’s capabilities using strict risk management framework Extend system disciplines to SouthStar Reduce Networks’ sales cycle time Safety a must Required commodity Avoid costly mistakes Use proven technology Enhance Sequent’s capabilities using strict risk management framework Extend system disciplines to SouthStar Reduce Networks’ sales cycle time

value a compelling a compelling proposition to our stakeholders proposition to our stakeholders demonstrate demonstrate

Committing To Our Stakeholders value customers communities regulators shareholders

value governance governance

Compensation Corporate Responsibility Corporate Responsibility Audit Finance & Risk Management Finance & Risk Management Nominations & Corp Gov Nominations & Corp Gov Board Committees Executive aglresources.com

value ^ ^ s s

Our Core Values honesty value seeking

Where We’re Doing It Reducing leak response time Creating appointment times Payment history improvement at SouthStar Hold and handle times down at our Customer Care Center Reducing leak response time Creating appointment times Payment history improvement at SouthStar Hold and handle times down at our Customer Care Center $1100 $1000 $900 $1100 $1000 $900 AGLC Cost Per New Meter AGLC Cost Per New Meter $140 $130 $120 $140 $130 $120 AGLC O&M Cost Per Customer AGLC O&M Cost Per Customer

Our Core Values generosity of spirit inside the lines honesty value seeking

V-Force 32,000 hours in ,000 hours in nd Habitat for Humanity house Polar Plunge for Special Olympics American Heart Association’s Heartwalk MLK Day United Way Tug-A-Plane

Volunteer of the Year Timothy Dasher Meter Reader Savannah service center Timothy Dasher Meter Reader Savannah service center

AGLR Employees

What’s Good For The Company?

2002 the value is “here” marketers & constituents continuing to find the value 2003 strengthen our finances flawless execution asset use value

the real is still here at

value the real is still here at