- Atmos Energy to sell its nonregulated gas marketing business to a subsidiary of CenterPoint Energy
- Transaction expected to close in the first calendar quarter of 2017, subject to customary approvals
- No impact on earnings per share growth of six to eight percent through fiscal 2020
DALLAS–(BUSINESS WIRE)–Atmos Energy Corporation (NYSE: ATO) today announced that Atmos Energy Holdings, Inc., a wholly-owned subsidiary has executed a definitive agreement to sell all of the equity interest in Atmos Energy Marketing, LLC (AEM) to CenterPoint Energy Services, Inc., an indirect wholly-owned subsidiary of CenterPoint Energy, Inc. (NYSE: CNP). The transaction will include the transfer of approximately 800 delivered gas customers and AEM’s related asset optimization business at an all cash price of $40.0 million plus working capital at the date of closing. No material gain or loss is currently anticipated in connection with the closing of this transaction.
“We are pleased to have found a strategic buyer for our nonregulated delivered gas business, Atmos Energy Marketing, in CenterPoint Energy,” said Kim Cocklin, Chief Executive Officer of Atmos Energy Corporation. “CenterPoint brings substantial scale and diversity, with a sharp focus on superior customer service and excellent employee relations.”
“Given our company’s long-term vision to become the nation’s safest regulated natural gas utility and to further our strategy to grow organically by investing in our regulated infrastructure, now is the perfect time to move forward with this sale,” said Mike Haefner, President and Chief Operating Officer of Atmos Energy Corporation. “This transaction results in Atmos Energy becoming a fully regulated pure-play natural gas company. Finally, it is important to note that the sale of this business will not reduce our ability and commitment to deliver earnings per diluted share growth in the six to eight percent range through fiscal 2020.”
The sale is expected to close in the first calendar quarter of 2017. The proceeds from this transaction will be redeployed to fund infrastructure investment in the regulated business. Once the sale is complete, Atmos Energy will have fully exited the nonregulated gas marketing business. Atmos Energy will release fiscal 2016 results and give fiscal 2017 earnings guidance after the market close on November 9, 2016.