GREAT FALLS, Mont., Aug. 14 /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 June 30, 2009. Net income for the
quarter ended June 30, 2009 was $686,000 or $0.16 per diluted
share, compared to a net loss of $120,000, or $0.03 per diluted
share, for the same period in 2008. This $806,000 positive change
is primarily the result of increases in gross margin and reductions
in distribution, general and administrative expense from the same
period in 2008. The Natural Gas Operations segment contributed net
income of $559,000 for the second quarter compared to $151,000 for
the same quarter of 2008. The Marketing and Productions segment
contributed net income of $266,000 compared to a net loss of
$49,000 for the same quarter of 2008. The Pipeline Operations
segment contributed net income of $43,000 for the second quarter of
2009 compared to $12,000 for the same quarter in 2008. For the six
months ended June 30, 2009, net income was $2.6 million or $0.62
per diluted share, compared to $2.2 million or $0.50 per diluted
share for the same period in 2008. The Natural Gas Operations
segment contributed net income of $2.1 million for the six months
ended June 30, 2009 compared to $1.8 million for the same period in
2008. The Marketing and Productions segment contributed net income
of $689,000 compared to $622,000 for the same period in 2008. The
Pipeline Operations segment contributed net income of $73,000 for
the six months ended June 30, 2009, compared to $33,000 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 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 September 4, 2009 to shareholders of record as
of August 17, 2009. "Energy, Inc. continues to provide consistent
earnings and solid dividends," said Richard M. Osborne, Chairman
and CEO of Energy, Inc. "We are pleased to report that our earnings
in all of our operating segments increased for the quarter as well
as the six months. We 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 Six Months Ended June 30, June 30,
-------- -------- (unaudited) (unaudited) 2009 2008 2009 2008
REVENUES: Natural gas operations $9,544,306 $14,053,222 $35,685,876
$38,220,701 Gas and electric- wholesale 2,582,758 3,494,963
7,662,345 10,115,959 Pipeline operations 111,401 93,519 224,067
183,316 ------- ------ ------- ------- Total revenues 12,238,465
17,641,704 43,572,288 48,519,976 ---------- ---------- ----------
---------- EXPENSES: Gas purchased 5,029,479 9,655,513 24,464,331
27,364,970 Gas and electric- wholesale 1,960,833 3,381,082
6,085,727 8,910,737 --------- --------- --------- --------- Total
cost of sales 6,990,312 13,036,595 30,550,058 36,275,707 ---------
---------- ---------- ---------- GROSS MARGIN 5,248,153 4,605,109
13,022,230 12,244,269 Distribution, general, and administrative
2,525,331 3,309,542 5,420,885 6,059,970 Maintenance 185,183 121,448
356,590 324,638 Depreciation and amortization 531,471 488,675
1,045,145 975,923 Taxes other than income 482,686 571,687 1,112,266
1,216,531 ------- ------- --------- --------- Total expenses
3,724,671 4,491,352 7,934,886 8,577,062 --------- ---------
--------- --------- OPERATING INCOME 1,523,482 113,757 5,087,344
3,667,207 OTHER INCOME (EXPENSE) (84,939) 77,529 (109,918) 125,686
INTEREST EXPENSE (252,399) (258,886) (598,351) (546,634) --------
-------- -------- -------- INCOME (LOSS) FROM OPERATIONS BEFORE
INCOME TAX EXPENSE 1,186,144 (67,600) 4,379,075 3,246,259 INCOME
TAX EXPENSE (500,059) (52,299) (1,730,267) (1,058,860) --------
------- ---------- ---------- NET INCOME (LOSS) $686,085 $(119,899)
$2,648,808 $2,187,399 ======== ========== ========== ==========
BASIC INCOME PER COMMON SHARE: Income (loss) from continuing
operations $0.16 $(0.03) $0.62 $0.50 DILUTED INCOME PER COMMON
SHARE: Income (loss) from continuing operations $0.16 $(0.03) $0.62
$0.50 DIVIDENDS DECLARED PER COMMON SHARE: $0.14 $0.12 $0.26 $0.22
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 4,300,239
4,347,061 4,299,174 4,342,372 Diluted 4,303,121 4,348,961 4,302,036
4,343,914 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 June 30, December
31, -------- ------------ (unaudited) (audited) (audited) 2009 2008
2008 ---- ---- ---- ASSETS Current Assets: Cash $698,509 $796,302
$1,065,529 Marketable securities 5,702,732 910,778 3,376,875
Accounts and notes receivable less $191,990, $136,399, and
$207,942, respectively, allowance for bad debt 3,031,605 5,108,796
7,430,694 Unbilled gas 825,951 1,252,638 4,839,138 Derivative
assets - 145,428 - Natural gas and propane inventories 2,551,005
5,505,337 9,891,802 Materials and supplies 1,111,688 955,467
1,175,596 Prepayments and other 147,288 193,581 422,514 Income tax
receivable - 417,164 1,014,806 Recoverable cost of gas purchases
467,866 1,054,875 2,041,280 Deferred tax asset 971,850 - 225,953
------- --- ------- Total current assets 15,508,494 16,340,366
31,484,187 Property, Plant and Equipment, Net 37,761,796 31,051,419
34,904,442 Deferred Tax Assets - Long-Term 5,272,114 6,825,575
5,693,310 Deferred Charges 2,312,255 2,761,656 2,558,156 Other
Investments 1,311,208 1,118,264 1,081,423 Other Assets 83,123
279,810 97,447 ------ ------- ------ TOTAL ASSETS $62,248,990
$58,377,090 $75,818,965 =========== =========== ===========
LIABILITIES AND CAPITALIZATION Current Liabilities: Bank overdraft
$421,934 $532,901 $773,199 Accounts payable 3,749,995 7,439,748
5,783,927 Line of credit 3,600,000 - 17,551,276 Derivative
liabilities - 146,206 - Accrued taxes 300,408 - - Deferred income
taxes - 18,039 - Accrued and other current liabilities 3,939,497
3,302,712 4,982,684 Overrecovered gas purchases 2,205,472 522,347
1,022,853 --------- --------- --------- Total current liabilities
14,217,306 11,961,953 30,113,939 ---------- ---------- ----------
Other Obligations: Deferred investment tax credits 229,034 250,096
239,565 Other long-term liabilities 2,379,342 2,516,262 2,383,323
--------- --------- --------- Total other obligations 2,608,376
2,766,358 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, 4,301,369, 4,347,394 and 4,296,603 shares
outstanding at June 30, 2009 and 2008, and December 31, 2008,
respectively 653,218 652,165 652,503 Treasury stock (8,012) -
(8,012) Capital in excess of par value 5,975,868 6,280,649
5,926,028 Accumulated other comprehensive income 454,491 -
(319,147) Retained earnings 25,347,743 23,715,965 23,830,766
---------- ---------- ---------- Total stockholders' equity
32,423,308 30,648,779 30,082,138 ---------- ---------- ----------
TOTAL CAPITALIZATION 45,423,308 43,648,779 43,082,138 ----------
---------- ---------- TOTAL LIABILITIES AND CAPITALIZATION
$62,248,990 $58,377,090 $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.ewst.com/
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