GREAT FALLS, Mont., Nov. 12 /PRNewswire-FirstCall/ -- Energy, Inc.
(NASDAQ:EGAS), a natural gas utility and energy marketing company,
today filed its Form 10-Q with the Securities and Exchange
Commission for the quarter ended September 30, 2009. The Net loss
for the quarter ended September 30, 2009 was $172,000 or $0.04 per
diluted share, compared to net income of $386,000 or $0.09 per
diluted share, for the same period in 2008. The natural gas and
pipeline operations segments continue to see customer growth and
increased net income, as we expand our facilities to meet the
strong demand for natural gas service. The Natural Gas Operations
segment contributed net income of $10,000 for the third quarter
compared to a net loss of $52,000 for the same quarter of 2008. The
Pipeline Operations segment contributed net income of $74,000 for
the third quarter of 2009 compared to $39,000 for the same quarter
in 2008. The Marketing and Productions segment returned a net loss
of $12,000 compared to net income of $395,000 for the same quarter
of 2008. The loss in the Marketing and Production segment is caused
by a drop in the price of natural gas from 2008 to 2009, which
significantly reduced the revenue received for volumes produced in
our production operation. In addition, we made a one-time
expenditure of $139,000, paid to one of the pipelines that provide
delivery of natural gas, for infrastructure improvements which
allows for increased delivery to our Shoshone pipeline. The
Corporate and Other segment returned a net loss of $244,000 for the
quarter compared to net income of $5,000 for the same quarter of
2008. This difference is caused by increased spending on
acquisition related activities, primarily related to the proposed
acquisitions in Ohio. For the nine months ended September 30, 2009,
net income was $2.5 million or $0.58 per diluted share, compared to
$2.6 million or $0.59 per diluted share for the same period in
2008. The Natural Gas Operations segment contributed net income of
$2.1 million for the nine months ended September 30, 2009 compared
to $1.7 million for the same period in 2008. The Marketing and
Productions segment contributed net income of $677,000 compared to
$1.0 million for the same period in 2008. The Pipeline Operations
segment contributed net income of $147,000 for the nine months
ended September 30, 2009, compared to $72,000 for the same period
in 2008. On August 3, 2009, the Company completed a reorganization
to implement a holding company structure. The new holding company,
Energy, Inc., is the successor to Energy West, Incorporated, which
is now a subsidiary of Energy, Inc. The business operations of
Energy West, Incorporated did not change as a result of the
reorganization. In addition, the Company's Board of Directors
approved the monthly dividend of $0.045 per share. The dividend
will be payable on November 30, 2009 to shareholders of record as
of November 13, 2009. "Our natural gas operations continue to
perform well. Although the acquisition costs, low gas prices and a
one-time item led to the current quarter loss, we continue to
provide consistent earnings and solid dividends," said Richard M.
Osborne, Chairman and CEO of Energy, Inc. "We will continue to do
all the necessary work to make our gas utilities even more
efficient and customer focused going forward." About Energy, Inc.
Energy, Inc. is the parent company of Energy West, Incorporated,
which 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, the
company's ability to consummate its pending acquisitions and to
successfully integrate the operations of the acquired companies;
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, risks associated with contracts accounted for as
derivatives 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 or clarification regarding
Energy, Inc., please contact: Kevin Degenstein, President and Chief
Operating Officer. The company's toll-free number is (800)
570-5688. The company's web site is http://www.ewst.com/. The
company's address is 1 First Avenue South, Great Falls, Montana
59401. ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
INCOME --------------------------------- Three Months Ended Nine
Months Ended September 30, September 30, ------------ ------------
(unaudited) (unaudited) 2009 2008 2009 2008 REVENUES: Natural gas
operations $6,134,362 $8,863,202 $41,820,238 $47,083,903 Gas and
electric- wholesale 2,077,309 5,005,390 9,739,654 15,121,349
Pipeline operations 114,417 118,037 338,484 301,353 ------- -------
------- ------- Total revenues 8,326,088 13,986,629 51,898,376
62,506,605 --------- ---------- ---------- ---------- EXPENSES: Gas
purchased 2,398,039 5,271,121 26,862,370 32,636,091 Gas and
electric- wholesale 1,738,394 4,171,544 7,824,121 13,082,281
--------- --------- --------- ---------- Total cost of sales
4,136,433 9,442,665 34,686,491 45,718,372 GROSS MARGIN 4,189,655
4,543,964 17,211,885 16,788,233 Distribution, general, and
administrative 2,707,842 2,632,290 8,128,727 8,692,260 Maintenance
145,866 160,541 502,456 485,179 Depreciation and amortization
553,061 505,912 1,598,206 1,481,835 Taxes other than income 538,377
534,601 1,650,643 1,751,132 ------- ------- --------- ---------
Total expenses 3,945,146 3,833,344 11,880,032 12,410,406 ---------
--------- ---------- ---------- OPERATING INCOME 244,509 710,620
5,331,853 4,377,827 OTHER INCOME (EXPENSE) (213,612) 96,669
(323,530) 222,355 INTEREST EXPENSE (304,404) (240,572) (902,755)
(787,206) ------- ------- ------- ------- INCOME (LOSS) FROM
OPERATIONS BEFORE INCOME TAX EXPENSE (273,507) 566,717 4,105,568
3,812,976 INCOME TAX (EXPENSE) BENEFIT 101,034 (180,381)
(1,629,233) (1,239,241) ------- ------- --------- --------- NET
INCOME (LOSS) $(172,473) $386,336 $2,476,335 $2,573,735 =======
======= ========= ========= BASIC INCOME PER COMMON SHARE: Income
(loss) from continuing operations $(0.04) $0.09 $0.58 $0.59 DILUTED
INCOME PER COMMON SHARE: Income (loss) from continuing operations
$(0.04) $0.09 $0.58 $0.59 DIVIDENDS DECLARED PER COMMON SHARE:
$0.14 $0.12 $0.39 $0.34 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 4,302,085 4,348,239 4,300,156 4,344,342 Diluted 4,302,085
4,349,737 4,303,018 4,345,870 Please refer to the notes as filed on
Form 10-Q that are an integral part of these condensed financial
statements. ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS --------------------------- September 30, December 31,
------------ ----------- (unaudited) (audited) 2009 2008 2008 ----
---- ---- ASSETS Current Assets: Cash $965,906 $993,725 $1,065,529
Marketable securities 5,210,658 3,800,121 3,376,875 Accounts and
notes receivable less $217,052 $161,256, and $207,942,
respectively, allowance for bad debt 2,784,106 3,748,765 7,430,694
Unbilled gas 751,427 1,355,105 4,839,138 Derivative assets - 53,844
- Natural gas and propane inventories 6,865,775 10,787,607
9,891,802 Materials and supplies 1,228,564 1,367,135 1,175,596
Prepayments and other 735,013 566,355 422,514 Income tax receivable
- 955,274 1,014,806 Recoverable cost of gas purchases 505,823
3,000,534 2,041,280 Deferred tax asset 1,549,508 - 225,953
--------- --- ------- Total current assets 20,596,780 26,628,465
31,484,187 Property, Plant and Equipment, Net 39,771,223 32,414,858
34,904,442 Deferred Tax Assets - Long-Term 4,955,820 6,806,557
5,693,310 Deferred Charges 2,219,800 2,672,701 2,558,156 Other
Investments 1,389,026 1,118,264 1,081,423 Other Assets 65,764
401,448 97,447 ------ ------- ------ TOTAL ASSETS $68,998,413
$70,042,293 $75,818,965 ========== ========== ==========
LIABILITIES AND CAPITALIZATION Current Liabilities: Bank overdraft
$817,896 $619,340 $773,199 Accounts payable 3,746,211 5,750,238
5,783,927 Line of credit 9,950,000 11,685,000 17,551,276 Accrued
income taxes 335,362 - - Derivative liabilities - 54,622 - Deferred
income taxes - 836,254 - Accrued and other current liabilities
4,731,957 4,286,684 4,982,684 Overrecovered gas purchases 2,590,218
362,597 1,022,853 --------- ------- --------- Total current
liabilities 22,171,644 23,594,735 30,113,939 ---------- ----------
---------- Other Obligations: Deferred investment tax credits
223,769 244,831 239,565 Other long-term liabilities 2,380,575
2,542,404 2,383,323 --------- --------- --------- Total other
obligations 2,604,344 2,787,235 2,622,888 --------- ---------
--------- Long-Term Debt 13,000,000 13,000,000 13,000,000
========== ========== ========== Commitments and Contingencies (see
note 11) Stockholders' Equity: Preferred stock; $.15 par value,
1,500,000 shares authorized, no shares outstanding - - - Common
stock; $.15 par value, 15,000,000 shares authorized, 4,303,208,
4,348,894 and 4,296, 603 shares outstanding at September 30, 2009
and 2008, and December 31, 2008, respectively 653,494 652,334
652,503 Treasury stock (8,012) - (8,012) Capital in excess of par
value 5,999,601 6,298,753 5,926,028 Accumulated other comprehensive
income (17,049) 128,762 (319,147) Retained earnings 24,594,391
23,580,474 23,830,766 ---------- ---------- ---------- Total
stockholders' equity 31,222,425 30,660,323 30,082,138 ----------
---------- ---------- TOTAL CAPITALIZATION 44,222,425 43,660,323
43,082,138 ---------- ---------- ---------- TOTAL LIABILITIES AND
CAPITALIZATION $68,998,413 $70,042,293 $75,818,965 ==========
========== ========== Please refer to the notes as filed on Form
10-Q that are an integral part of these condensed financial
statements. DATASOURCE: Energy, Inc. CONTACT: Kevin Degenstein,
President and Chief Operating Officer of Energy, Inc.,
1-800-570-5688 Web Site: http://www.energywest.com/
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