Atmos Energy Corporation (NYSE: ATO) today announced that it has executed a definitive agreement to sell all of its natural gas distribution assets located in Missouri, Illinois and Iowa to Liberty Energy (Midstates) Corporation, an affiliate of Algonquin Power & Utilities Corp., for an all cash price of approximately $124 million, with the agreement containing usual terms and conditions customary for transactions of this type, including typical adjustments to the purchase price, if applicable.
“We are pleased to be able to consummate this sale to a company of Algonquin’s excellent reputation and know that they will continue our focus on safety, reliability, a strong culture and providing excellent customer service,” said Kim R. Cocklin, President and Chief Executive Officer of Atmos Energy Corporation.
The transaction will include the transfer of approximately 84,000 meters and is expected to close in fiscal 2012, after the receipt of all necessary regulatory approvals. These predominantly residential and commercial meters represent less than three percent of Atmos Energy’s three million natural gas customers. The proceeds from this transaction will be redeployed to fund growth opportunities in other jurisdictions we serve. Upon closing this transaction, Atmos Energy will reduce the number of states in which it operates from twelve to nine, with approximately 80 percent of its utility operations in the three states of Texas, Louisiana and Mississippi.
For additional information, visit our website at atmosenergy.com.
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