Energy Buys Majority Stake In Cut Bank Gas

November 6, 2009

November 6, 2009 (FinancialWire) — Energy, Inc. (NASDAQ: EGAS) said that its Energy West subsidiary has completed the acquisition of around 83% of the outstanding shares of Cut Bank Gas Co., a natural gas utility serving Cut Bank, Montana.

In December 2007, the company entered into a stock purchase agreement with shareholders of Cut Bank Gas to acquire their shares of Cut Bank for around $500,000 of Energy common stock.

Montana’s public service commission approved the acquisition on November 2. Energy issued 56,900 shares of its common stock in consideration for the 83% interest in Cut Bank.

Energy West said it is actively seeking to acquire the remaining 17% of outstanding shares of Cut Bank Gas.

Great Falls, Montana-based Energy distributes and sells natural gas to end-use residential, commercial, and industrial customers. It distributes around 26 billion cubic feet of natural gas to roughly 37,000 customers through regulated utilities operating in Montana, Wyoming, North Carolina and Maine.

The company markets around 2.3 billion cubic feet of natural gas to commercial and industrial customers in Montana and Wyoming on an unregulated basis.

Energy 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.

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