Atmos Energy is set to commence a significant upgrade to its natural gas lines on Watauga Street in Kingsport, Tennessee, starting January 5, as confirmed by the city officials. The project, which will unfold in two phases over a period of approximately six months, stretches from the Watauga Street roundabout to Lamont Street, with all work being carried out without any expected road closures.
Residents and local businesses will experience the beginning of this project immediately after the New Year holiday, with crews starting preparations that include surveying the project area and marking the route. The first phase of the work is anticipated to cover the distance from the Watauga Street roundabout to Linville Street, while the latter half will extend from Linville Street to Lamont Street.
Atmos Energy’s initiative aligns with a broader trend among regulated gas utilities to replace aging infrastructure and minimize gas leaks, a safety-conscious move that is indicative of ongoing capital expenditures. Similar projects are being carried out by other companies in the region, including Spire and ONE Gas, all of whom are committed to maintaining safety and efficiency in their gas supply networks.
As construction progresses, most activities will occur between the sidewalk and the roadway. The public is advised to remain vigilant for flaggers directing traffic around work zones, although no road closures are anticipated. The process of replacing the pipeline typically involves trenching or boring to install new lines, followed by reconnecting services to customers before conducting safety inspections in their homes.
Atmos Energy, headquartered in Dallas, serves approximately 3.4 million customers across eight states, predominantly in the southern region of the United States. While the utility’s shares saw a marginal decline of about 0.2%, the company continues to attract investor interest, particularly due to its consistent dividend profile. Atmos raised its quarterly dividend to $1.00 per share in November, marking its 168th consecutive quarterly dividend distribution.
Investor sentiment remains mixed, with some analysts highlighting the steady fundamentals of Atmos Energy despite acknowledging that the stock’s valuation may already encapsulate its strengths. Mizuho analyst Gabriel Moreen maintained a neutral rating while adjusting the price target, reflecting a cautious yet optimistic outlook on the company’s future trajectory.
Overall, the upcoming infrastructure improvements represent a proactive approach to enhancing service reliability while emphasizing safety in the community.