8-KMaterial AgreementsFinancial EventsExhibits & Filings

ATMOS ENERGY CORP 8-K Report, Material Agreement (Dec 6, 2005)

Filed December 6, 2005For Securities:ATO

Summary

Atmos Energy Corporation (ATO) announced on December 6, 2005, through an 8-K filing, a significant development regarding pipeline infrastructure. The company, via its Atmos-Pipeline Texas Division, entered into a Pipeline Construction and Operating Agreement with Energy Transfer Fuel, LP (ETF) on November 30, 2005. This agreement establishes a 50/50 joint venture to construct and operate a new 30-inch natural gas pipeline, approximately 45 miles long. This project aims to enhance gas distribution to developing areas in North Texas and provide crucial additional pipeline capacity for producers in the Barnett Shale area and other shippers in the Fort Worth Basin. Atmos Energy's financial commitment for construction is capped at $42,500,000, plus 50% of compression facility costs. The company will also serve as the operator of the pipeline upon completion.

Key Highlights

  • 1Atmos Energy forms a 50/50 joint venture with Energy Transfer Fuel, LP (ETF) for a new natural gas pipeline.
  • 2The new pipeline will be approximately 45 miles long and 30 inches in diameter.
  • 3The project aims to serve gas distribution customers in developing areas of North Texas.
  • 4It will provide increased pipeline capacity for producers in the Barnett Shale area and Fort Worth Basin.
  • 5Atmos Energy's maximum contribution to construction costs is $42,500,000.
  • 6Atmos Energy will contribute 50% of the costs for necessary compression facilities.
  • 7Atmos Energy will operate the pipeline upon its completion.

Frequently Asked Questions

The primary purpose of the new pipeline is to serve gas distribution customers in developing areas of North Texas and to provide additional pipeline capacity for gas producers in the Barnett Shale area and other shippers in the Fort Worth Basin to reach markets.

Atmos Energy is committed to contributing no more than $42,500,000 towards the construction costs of the pipeline and will also contribute 50% of the costs for the compression facilities.

Atmos Energy Corporation will be responsible for operating the pipeline upon the completion of its construction.

Yes, Atmos Energy has a current transportation arrangement with ETF for natural gas delivery to certain areas of its distribution system in Central Texas and has entered into other miscellaneous agreements. However, these are not considered material to the current pipeline agreement.