Atmos Energy Corporation Enters Equity Distribution Agreement for Shares

Atmos Energy Corporation recently disclosed the initiation of an equity distribution agreement involving its common stock in an 8-K filing with the Securities and Exchange Commission. The agreement, entered into on December 3, 2024, involves the company, alongside Managers and Forward Purchasers, to facilitate the offering and sale of shares of Atmos Energy’s common stock.

The Equity Distribution Agreement follows the completion of sales under a previous at-the-market program, with the current agreement allowing for sales of shares with a total aggregate offering price of up to $1,700,000,000. The sales, if conducted, will be managed through selected Managers as sales agents, with transactions to occur through brokers, block trades, or as per agreements between Atmos Energy and the Managers.

Furthermore, the agreement includes provisions for Atmos Energy to potentially sell shares to a Manager as principal. Under this agreement, Managers acting as the company’s sales agents will be entitled to a commission of 1.00% of the gross offering proceeds from the sales made through them. It is important to note that Atmos Energy holds no obligation to sell any shares under this agreement and retains the right to suspend offers and sales at any time.

In addition to the issuance and sale of shares through Managers, Atmos Energy has the option to enter into forward sale agreements under master forward sale confirmations with Forward Purchasers. The company anticipates utilizing the net proceeds from these sales primarily to invest in capital expenditures to bolster system safety and reliability, in addition to catering to general corporate needs.

The equity sale is expected to be conducted in compliance with Atmos Energy’s automatic shelf registration statement on Form S-3, filed with the Securities and Exchange Commission on December 3, 2024. The details within the report offer an overview of the Equity Distribution Agreement and the Master Forward Sale Confirmations, both of which are attached as exhibits to the Current Report on Form 8-K submitted by Atmos Energy.

The Equity Distribution Agreement and the potential sale of shares signify Atmos Energy’s proactive approach in securing capital for operational enhancements and strategic endeavors, aiming to fortify its position in the market.

The article has been based on information sourced from Atmos Energy’s 8-K filing with the Securities and Exchange Commission, outlining the company’s latest financial endeavors and strategic moves.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Atmos Energy’s 8K filing here.

About Atmos Energy

Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through two segments, Distribution, and Pipeline and Storage. The Distribution segment is involved in the regulated natural gas distribution and related sales operations in eight states.