Atmos Energy Corporation
), a distributor of natural gas, has declared the pricing of its
previously announced public offering of common shares. The
company plans to issue 8,000,000 shares at $44.00 per stock.
ATMOS ENERGY CP (ATO): Free Stock Analysis
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Atmos Energy has also sanctioned a 30-day option to the
underwriters for buying up to 1,200,000 additional shares in case
of over-allotment. The company reveals that the share offering's
net proceeds of roughly $339.3 million will likely be utilized to
pay back short-term debts. The proceeds are also expected to be
expended on infrastructure development and normal corporate
Atmos Energy announced its first-quarter fiscal 2014 (three
months ended Dec 31, 2013) results on Feb 4, 2014. Quarterly
earnings per share (excluding net unrealized margins) came in at
88 cents, beating the Zacks Consensus Estimate of 83 cents.
Moreover, compared with the year-ago quarter's adjusted profit,
the results increased 18.9% from 74 cents. Increased natural gas
demand for room heating purposes, owing to an extreme drop in
temperature, aided the results.
Along with the first quarter of fiscal 2014 earnings report,
Atmos Energy also provided its fiscal 2014 outlook. The company
is planning to invest $830.0-$850.0 million of capital in fiscal
2014. Moreover, Atmos Energy maintains its fiscal 2014 earnings
per share guidance at the $2.66-$2.76 range.
Dallas, Texas-based Atmos Energy currently holds a Zacks Rank #3
(Hold), implying that it is expected to perform in line with the
broader U.S. equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the gas
distribution utility sector like
National Fuel Gas Company
Southwest Gas Corporation
). All the stocks sport a Zacks Rank #2 (Buy).