Nearly a year and a half ago, AGL Resources acquired the former NUI Corp. of Union, N.J., in a bold $700 million acquisition that launched the Atlanta-based energy company into New Jersey, Maryland and Florida. Now, after putting Elizabethtown Gas and the other former NUI subsidiaries on sound financial footing, the company is poised to grow even more to the benefit of utility customers under new President and CEO John W. Somerhalder II.

In March after a three-month search, AGL Resources (NYSE: ATG) hired Somerhalder, 50, a 30-year veteran of Houston-based El Paso Corp., where he oversaw the nation's largest interstate natural gas pipeline. He replaces Paula Rosput Reynolds, who left AGL Resources in January to become president and CEO of Seattle-based insurer Safeco Corp. 

According to Somerhalder, AGL Resources’ strong financials and experience make the company a natural leader in the energy industry. The oldest corporation in Georgia, AGL Resources is the largest distributor of natural gas in the Southeastern and mid-Atlantic states, serving 2.2 million customers. The company posted net earnings of $193 million in 2005 on revenue of $2.7 billion, up from $153 million and $1.8 billion in 2004, respectively.

Adding another 150-year-old company, Elizabethtown Gas, was a great strategic fit. AGL Resources turned a company in dire financial straights into one accretive to earnings in less than a year. This was accomplished by taking advantage of technology and innovation while improving customer service and giving back to the local community. In fact, one New Jersey company, Skoda Contracting Co., which specializes in natural gas pipeline construction, took advantage of AGL Resources’ highly computerized construction management system to revamp and expand its own operations.

“AGL Resources is on the cutting edge of the utility industry,” said Frank Evans, co-owner of Skoda, which has worked with Elizabethtown Gas since 1968. “The AGL Resources construction model has helped us prepare for the future in New Jersey, where other utilities will be sure to adopt many of their best practices.”

            Elizabethtown Gas recently honored Skoda as the Contractor of the Year for its “culture of excellence” in installing natural gas mains and services, the facilities that deliver the fuel to homes and businesses.

            “At a time when the nation’s attention is focused on energy efficiency, we’re pleased to recognize a family-owned utility construction company in Flanders for its outstanding installation of our natural gas infrastructure in New Jersey,” said Somerhalder. “Skoda and its employees have served us well as we upgrade our delivery systems. Skoda, with its outstanding leadership, has embraced our values of quality performance and customer service and safety.”

According to the new CEO, the big picture for AGL Resources will be growth. "People look at us as a logical acquirer, and we work closely with new vendors to improve their business as well as ours," said Somerhalder, who rose from engineer to pipeline president at El Paso where he helped integrate operations in several mergers. As the NUI acquisition demonstrates, "there is no reason why we could not look across most of the United States for utilities to expand the company's footprint.” He pointed out that AGL Resources could diversify into gas storage, gathering and processing facilities, and longer pipelines.

“Securing additional natural gas capacity to meet rising demand and reduce prices will drive much of the company's agenda,” said Somerhalder, noting that the industry is still feeling the impact of last fall’s hurricanes on energy production in the Gulf of Mexico. AGL Resources relies mainly on Gulf Coast production supplemented by liquefied natural gas (LNG) produced in the Caribbean and other countries to serve the company's customers from New Jersey to Florida.

“The United States has large reserves of natural gas, although much of this supply is located in areas that are environmentally sensitive and will take years to develop for market,” Somerhalder said. “In the meantime, we all can be smarter about using our energy resources more efficiently.”