GREAT FALLS, Mont., Aug. 14 /PRNewswire-FirstCall/ -- Energy, Inc. , 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.
Energy, Inc.
CONTACT: Kevin Degenstein, President and Chief Operating Officer of
Energy, Inc., 1-800-570-5688
Web Site: http://www.ewst.com/
