Energy services holding company AGL Resources Inc. GAS reported weak first-quarter 2016 results as a warmer-than-normal weather dampened its gas distribution business. AGL Resources – which expects to close its merger with electric utility Southern Company SO in the second half of 2016 – announced adjusted earnings per share of $1.30. The bottom line missed the Zacks Consensus Estimate of $1.64 and also deteriorated from the year-ago adjusted profit of $1.34. Total operating revenues, at $1,334 million were also below the year-ago figure of $1,721 million. Segmental Performance Distribution Operations: The segment, comprising seven utilities, reported earnings before interest and taxes (EBIT) of $234 million, up from $228 million in the first quarter of 2015. Retail Operations: Comprising SouthStar Energy Services, Nicor Services, Nicor Solutions and Nicor Advanced Energy, this segment achieved an EBIT of $80 million as against $87 million a year ago. Wholesale Services: The unit, which includes Sequent Energy Management, earned $44 million for the quarter, compared with $56 million profit in the corresponding period of 2015. Midstream Operations: This segment, mainly comprising natural gas storage facilities, reported a loss of $1 million, narrower than last year’s loss of $2 million. Operating Expenses The company’s total operating cost was $986 million, reflecting a decrease of 27% from $1,357 million in the year-ago quarter. Zacks Rank AGL Resources currently sports a Zacks Rank #3 (Hold). Meanwhile, one can look at better-ranked players in the same industry like Atmos Energy Corp. ATO and ONE Gas Inc. OGS. Both these stocks sport a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SOUTHERN CO (SO): Free Stock Analysis Report AGL RESOURCES (GAS): Free Stock Analysis Report ATMOS ENERGY CP (ATO): Free Stock Analysis Report ONE GAS INC (OGS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research