Energy, Inc. Announces Acquisition of Three Ohio Natural Gas Distribution Companies
05 Enero 2010 - 5:37PM
PR Newswire (US)
GREAT FALLS, Mont., Jan. 5 /PRNewswire-FirstCall/ -- Energy, Inc.
(NYSE Amex: EGAS), a natural gas utility and energy marketing
company, today announced that it has completed the acquisitions of
the parent companies of Orwell Natural Gas Company and Northeast
Ohio Natural Gas Corp. (NEO), and Brainard Gas Corp., as well as
Great Plains Land Development, LTD. (GPL). Orwell, NEO and Brainard
are natural gas distribution companies headquartered in Mentor,
Ohio that serve 23,131 customers in Northeastern Ohio and Western
Pennsylvania. These acquisitions increased our customer base by
more than 50%. GPL is a real estate holding company whose primary
asset is real estate that is leased to NEO. These companies were
primarily owned by a trust controlled by Richard M. Osborne, our
chief executive officer and chairman of the board. The acquisitions
were completed by four separate mergers of Energy, Inc.'s
wholly-owned Ohio acquisition subsidiaries with and into each of
the acquired companies. The transaction was approved by the public
service commissions of Ohio and Pennsylvania. In connection with
the mergers, we issued 1,707,308 unregistered shares of our common
stock. The issuance of the shares of our common stock was approved
by our shareholders at the annual meeting on November 13, 2009. In
addition, the acquired companies have debt as of the closing date
of $20.8 million. "These acquisitions fit well with our strategy to
grow our customer base, fully utilize the expertise of our
personnel and leverage our fixed operating costs," said Kevin J.
Degenstein, Energy, Inc.'s president and chief operating officer.
"Orwell, NEO and Brainard serve 23,131 customers and we are excited
about our expansion into Northeastern Ohio and Western
Pennsylvania. In addition, we believe that this transaction will
help us build a solid foundation for future growth in revenue and
increased shareholder value." About Energy, Inc. Energy, Inc.
distributes and sells natural gas to end-use residential,
commercial, and industrial customers. It distributes approximately
30.5 billion cubic feet of natural gas to approximately 61,600
customers through regulated utilities operating in Montana,
Wyoming, North Carolina, Maine, Ohio and Pennsylvania. 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 expected benefits of the transaction may not be
achieved in a timely manner or at all, the company's ability to
successfully integrate the operations of the acquired companies,
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, the company's ability to satisfy
its debt obligations, including compliance with financial
covenants, 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.ewst.com/. DATASOURCE: Energy,
Inc. CONTACT: Kevin J. Degenstein, president and chief operating
officer of Energy, Inc., +1-406-791-7500 Web Site:
http://www.ewst.com/
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