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Atmos Energy Corporation (NYSE:ATO), a $27.41 billion market cap utility company with a strong financial health rating according to InvestingPro, announced Wednesday that it has entered into an underwriting agreement for a public offering of $600 million aggregate principal amount of 5.450% senior notes due 2056. The agreement was reached on September 18, 2025, with BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Mizuho Securities USA LLC, and U.S. Bancorp Investments, Inc., acting as representatives of the underwriters.
The offering has been registered under the Securities Act of 1933 through a registration statement on Form S-3 and a prospectus supplement dated September 18, 2025, which was filed with the Securities and Exchange Commission. Atmos Energy expects to receive net proceeds of approximately $589.8 million after deducting underwriting discounts and estimated offering expenses. The company maintains healthy liquidity with a current ratio of 1.37, indicating sufficient assets to cover short-term obligations.
The closing of the offering is expected to occur on or about October 1, 2025, subject to customary closing conditions. The notes will 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 to be dated October 1, 2025.
This information is based on a press release statement included in the company’s recent SEC filing. The stock currently trades near its 52-week high of $171.20, with detailed valuation metrics and additional financial insights available through InvestingPro’s comprehensive research reports.
In other recent news, Atmos Energy reported its third-quarter earnings for fiscal year 2025, meeting analysts’ expectations with an earnings per share of $1.16. The company exceeded revenue forecasts, posting $838.77 million compared to the anticipated $821.21 million. Additionally, Mizuho raised its price target for Atmos Energy to $170.00, up from $164.00, reflecting the expected positive impact of Texas House Bill 4384 on the company’s earnings over the next five years. Despite this, Ladenburg Thalmann downgraded Atmos Energy from Buy to Neutral due to valuation concerns, while maintaining a price target of $163.00. This downgrade followed Atmos Energy’s second increase in its 2025 EPS guidance this year, now projected at $7.35-$7.45, up from the previous $7.20-$7.30 range. These developments highlight significant financial and regulatory factors influencing Atmos Energy’s outlook.
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