Attached files
EXHIBIT 99.1
Energy, Inc. Announces Acquisition of
Three Ohio Natural Gas Distribution Companies
Three Ohio Natural Gas Distribution Companies
Great Falls, Montana, January 5, 2010/PRNewswire First Call/ 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 companys 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
EXHIBIT 99.1
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
companys 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 companys ability to successfully
integrate the operations of the acquired companies, the companys continued ability to make
dividend payments, the companys 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 companys 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 companys control, the risk factors and cautionary statements made in the
companys 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 companys toll-free number is 800-570-5688. The companys address is 1 First Avenue South,
Great Falls, Montana 59401 and its website is www.EnergyWest.com.