Atmos Energy announces $500 million senior notes offering due 2035

Atmos Energy Corporation (NYSE:ATO), a $24.27 billion market cap utility company with strong financial health according to InvestingPro analysis, announced Monday that it has entered into an underwriting agreement for the public offering and sale of $500 million aggregate principal amount of its 5.200% Senior Notes due 2035. The company, which maintains a healthy current ratio of 1.33 and has consistently demonstrated its ability to meet short-term obligations, expects to receive net proceeds of approximately $493.5 million after deducting underwriting discounts and estimated offering expenses.

According to the press release statement, the underwriting agreement was made with Credit Agricole (OTC:CRARY) Securities (USA) Inc., J.P. Morgan Securities LLC, and U.S. Bancorp (BVMF:USBC34) Investments, Inc., acting as representatives of the underwriters. The offering, which comes at a time when the company maintains a manageable debt-to-equity ratio of 0.65, has been registered under the Securities Act of 1933 through a registration statement on Form S-3 and a prospectus supplement dated Monday.

The notes are expected to be issued under an indenture dated March 26, 2009, between Atmos Energy and U.S. Bank Trust Company, National Association, as trustee. The terms of the notes will be set forth in an Officers’ Certificate scheduled for delivery Thursday. The notes will be represented by a global security.

The offering is expected to close on or about Thursday, subject to customary closing conditions. Legal opinions related to the registration statement have been filed as exhibits to the SEC filing.

Atmos Energy’s common stock is listed on the New York Stock Exchange under the ticker symbol ATO. The information in this article is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, Atmos Energy Corporation reported its Q1 2025 financial results, which significantly exceeded expectations. The company achieved earnings per share (EPS) of $5.26, far surpassing the forecast of $2.88, while revenue reached $1.95 billion, exceeding the anticipated $1.63 billion. This strong performance led Atmos Energy to raise its fiscal 2025 EPS guidance to a range of $7.20 to $7.30. Additionally, Citi analyst Ryan Levine increased the price target for Atmos Energy from $148.00 to $163.00, maintaining a Neutral rating. This adjustment reflects discussions with the Texas Railroad Commission and improvements in earnings guidance. Atmos Energy has also made progress in regulatory matters, with a $3.5 billion regulatory asset tracker authorized for System Safety and Integrity Rider expenditures post-June 2024. Furthermore, the company filed a consolidated rate case in Mid-Texas, impacting a portion of its customer base, with a decision expected soon. These developments highlight Atmos Energy’s strategic initiatives and growth prospects, particularly in Texas.

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