8-KMaterial AgreementsExhibits & Filings

ATMOS ENERGY CORP 8-K Report, Material Agreement (Aug 7, 2012)

Filed August 7, 2012For Securities:ATO

Summary

Atmos Energy Corporation (ATO) has filed an 8-K report detailing a significant divestiture. On August 1, 2012, the company entered into a commitment letter to sell substantially all of its natural gas distribution operations in Georgia to Liberty Energy (Georgia) Corp., an affiliate of Algonquin Power & Utilities Corp. The agreed-upon purchase price for this transaction is approximately $141 million. This sale is subject to the execution of a definitive asset purchase agreement, the completion of due diligence by Algonquin, and approval from Algonquin's board of directors. The commitment letter has a specific expiration date of August 8, 2012, by which time these conditions must be met for the transaction to proceed. Investors should monitor the closing of this deal, as it represents a strategic move to divest assets in Georgia, following a similar divestiture in other states previously.

Key Highlights

  • 1Atmos Energy entered into a commitment letter to sell its Georgia natural gas distribution operations.
  • 2The buyer is Liberty Energy (Georgia) Corp., an affiliate of Algonquin Power & Utilities Corp.
  • 3The proposed sale price for the Georgia operations is approximately $141 million.
  • 4The transaction is conditional upon the execution of a definitive agreement, completion of due diligence by Algonquin, and Algonquin's board approval.
  • 5The commitment letter has a short expiration date of August 8, 2012.
  • 6This divestiture follows a previous sale of natural gas distribution operations in Missouri, Illinois, and Iowa to Liberty Energy (Midstates Corp.).

Frequently Asked Questions

Atmos Energy has entered into a commitment letter to sell substantially all of its natural gas distribution operations in Georgia for approximately $141 million. This agreement is subject to the execution of a definitive asset purchase agreement, Algonquin's completion of due diligence, and approval from Algonquin's board of directors. The commitment letter expires on August 8, 2012.

The buyer is Liberty Energy (Georgia) Corp., which is an affiliate of Algonquin Power & Utilities Corp.

This filing reports the entry into a commitment letter and an agreement in principle. The actual sale has not yet closed. Therefore, the financial impact will depend on the successful completion of the transaction, including the finalization of the asset purchase agreement and closing conditions. Investors should look for subsequent filings that confirm the closing of the sale and detail its financial impact.

Yes, the filing mentions that this transaction is subject to Algonquin executing a guaranty in the form previously used in connection with the sale by Atmos Energy of its natural gas distribution operations in Missouri, Illinois, and Iowa to Liberty Energy (Midstates Corp.). This indicates a pattern of strategic asset divestitures.