Energy, Inc. Announces Acquisition of Cut Bank Gas Company
05 November 2009 - 10:51PM
PR Newswire (US)
GREAT FALLS, Mont., Nov. 5 /PRNewswire-FirstCall/ -- Energy, Inc.
(NASDAQ: EGAS), a natural gas utility and energy marketing company,
today announced that its subsidiary Energy West, Incorporated has
completed the acquisition of approximately 83% of the outstanding
shares of Cut Bank Gas Company, a natural gas utility serving Cut
Bank, Montana. On December 18, 2007, we entered into a stock
purchase agreement with certain shareholders of Cut Bank Gas to
acquire their shares of Cut Bank for a purchase price of
approximately $500,000, paid in shares of our common stock. The
Montana Public Service Commission approved the acquisition on
November 2, 2009. We issued 56,900 shares of our common stock in
consideration for the 83% interest in Cut Bank. Energy West,
Incorporated is actively seeking to acquire the remaining 17% of
outstanding shares of Cut Bank Gas Company. "The Cut Bank Gas
transaction fits well with our growth strategy, which includes the
acquisition of smaller natural gas utility operations in Montana
and Wyoming that are complementary to our existing business," said
Kevin J. Degenstein, Energy Inc.'s president and chief operating
officer. "Cut Bank Gas serves approximately 1,500 customers in Cut
Bank and we are excited about the opportunity to improve their
service while adding them to our customer base in Montana." About
Energy, Inc. Energy, Inc. distributes and sells natural gas to
end-use residential, commercial, and industrial customers. It
distributes approximately 26 billion cubic feet of natural gas to
approximately 37,000 customers through regulated utilities
operating in Montana, Wyoming, North Carolina and Maine. The
company markets approximately 2.3 billion cubic feet of natural gas
to commercial and industrial customers in Montana and Wyoming on an
unregulated basis. The company also has a majority ownership
interest in 160 natural gas producing wells and gas gathering
assets. In addition, the company owns the Shoshone interstate and
the Glacier gathering pipelines located in Montana and Wyoming. The
company's Montana public utility was originally incorporated in
1909 and is headquartered in Great Falls, Montana. Safe Harbor
Regarding Forward-Looking Statements The company is including the
following cautionary statement in this release to make applicable
and to take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 for any forward-looking
statements made by, or on behalf of, Energy, Inc. Forward-looking
statements are all statements other than statements of historical
fact, including, without limitation, those that are identified by
the use of the words "anticipates," "estimates," "expects,"
"intends," "plans," "predicts," "believes" and similar expressions.
Such statements are inherently subject to a variety of risks and
uncertainties that could cause actual results to differ materially
from those expressed. Factors that may affect forward-looking
statements and the company's business generally include but are not
limited to the company's continued ability to make dividend
payments, the company's ability to implement its business plan,
fluctuating energy commodity prices, the possibility that
regulators may not permit the company to pass through all of its
increased costs to its customers, changes in the utility regulatory
environment, wholesale and retail competition, weather conditions,
litigation risks, and various other matters, many of which are
beyond the company's control, the risk factors and cautionary
statements made in the company's public filings with the Securities
and Exchange Commission, and other factors that the company is
currently unable to identify or quantify, but may exist in the
future. Energy, Inc. expressly undertakes no obligation to update
or revise any forward-looking statement contained herein to reflect
any change in Energy, Inc.'s expectations with regard thereto or
any change in events, conditions or circumstances on which any such
statement is based. For additional information about Energy, Inc.,
please contact: Kevin J. Degenstein, president and chief operating
officer, at 406-791-7500. The company's toll-free number is
800-570-5688. The company's address is 1 First Avenue South, Great
Falls, Montana 59401 and its website is http://www.energywest.com/.
DATASOURCE: Energy, Inc. CONTACT: Kevin J. Degenstein, president
and chief operating officer of Energy, Inc., +1-406-791-7500 Web
Site: http://www.energywest.com/
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