SECURITIES AND EXCHANGE COMMISSION

                     Washington, D.C.  20549




                             FORM 8-K


                          CURRENT REPORT



              Pursuant to Section 13 or 15(d) of the
                 Securities Exchange Act of 1934


Date of report (Date of earliest event reported):November 2, 1996


                     ATMOS ENERGY CORPORATION
      (Exact Name of Registrant as Specified in its Charter)




     Texas                     1-10042               75-1743247
(State or Other Juris-    (Commission File  (IRS Employer Identi-
diction of Incorporation)     Number)            fication No.)




         1800 Three Lincoln Centre                     75240
               5430 LBJ Freeway                      (Zip Code)
                Dallas, Texas
     (Address of Principal Executive Offices)          
          



       Registrant's telephone number, including area code:
                          (972) 934-9227





Item 5.   Other Events.

     Atmos Energy Corporation, a  Texas corporation ("Atmos") and
United Cities  Gas Company, an Illinois  and Virginia corporation
("United   Cities")   have  entered   into   an   agreement  (the
"Agreement") with Southern Union Company, a  Delaware corporation
("Southern Union")  relating  to all  litigation and  proceedings
among them arising from the proposed merger of United Cities with
and into Atmos and Southern Union's purported ownership of United
Cities  common stock.  Copies  of the  Atmos/United Cities  joint
press  release and  of  the  Agreement  are  attached  hereto  as
exhibits and incorporated herein by reference.


Item 7.   Financial Statements and Exhibits.

(c)  Exhibits.

     99.1  Press Release of Atmos Energy Corporation dated November 4, 1996.
     99.2  Agreement dated November 2, 1996   
 





                            SIGNATURES

     Pursuant to the requirements  of the Securities Exchange Act
of 1934, the Registrant has duly  caused this Report to be signed
on its behalf by the undersigned, thereunto duly authorized.



                                   ATMOS ENERGY CORPORATION


Date:  November 5, 1996        By: /s/ Robert F. Stephens
                                   ---------------------------------  
                                   Robert F. Stephens, President and
                                   Chief Operating Officer