Summary
Atmos Energy Corporation (ATO) has reported a significant asset acquisition, effective July 1, 2001. The company acquired the Louisiana Gas Service Company (LGS) division and its subsidiary LGS Natural Gas Company (LGSN) from Citizens Communications Company for approximately $365 million in cash. This acquisition is expected to expand Atmos Energy's regulated natural gas sales and distribution operations within Louisiana. The company financed this substantial transaction primarily through the issuance of $350 million in Senior Notes on May 22, 2001. The acquisition received necessary approvals from the Louisiana Public Service Commission and the Federal Trade Commission. Atmos Energy has integrated the acquired LGS assets with its existing Trans Louisiana Gas Company division, forming a new division named Atmos Energy Louisiana. The former LGSN assets have been assigned to newly established wholly-owned subsidiaries, indicating a strategic move to consolidate and manage these newly acquired operations.
Key Highlights
- 1Atmos Energy acquired the Louisiana Gas Service Company (LGS) division and LGS Natural Gas Company (LGSN) from Citizens Communications Company for approximately $365 million.
- 2The acquisition was effective July 1, 2001.
- 3The transaction was financed primarily through the issuance of $350 million in Senior Notes in May 2001.
- 4Regulatory approvals from the Louisiana Public Service Commission and the Federal Trade Commission were obtained.
- 5Acquired assets consist of regulated natural gas sales and distribution properties, as well as unregulated natural gas-related operations in Louisiana.
- 6The LGS assets have been combined with Atmos Energy's Trans Louisiana Gas Company division to form a new division: Atmos Energy Louisiana.
- 7The LGSN assets have been assigned to three new wholly-owned subsidiaries.