Energy West Announces the Completion of Acquisition of North Carolina Distribution Properties
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Announces Audited Earnings and Files 10-K
GREAT FALLS, Mont., Oct. 1 / -- Energy West, Incorporated (NASDAQ:EWST), a natural gas and energy marketing company serving the Rocky Mountain states, announced today that it had completed the acquisition of Frontier Utilities of North Carolina, Inc. The purchase price was $4,500,000, plus certain adjustments for taxes and working capital. Energy West took possession of the operation, headquartered in Elkin N.C., today.
Thomas J. Smith, Interim President, said, "We are extremely pleased to complete this transaction. We now have a 138 mile high-pressure transmission system and a 149 mile distribution system serving an area with 127,000 households in an attractive and fast growing area. The business should be accretive to earnings for Energy West's current fiscal year and offers tremendous opportunity for growth as we expand the 1% natural gas utilization rate in Frontier's service territory."
Energy West also filed its Annual Report on Form 10-K for the fiscal year ended June 30, 2007 with the Securities and Exchange Commission on September 27, 2007. The Company reported audited consolidated net income for the year of $6.2 million, or $2.08 per share, including a gain from the disposal of assets, and income from discontinued operations of $3.95 million, or $1.34 per share, and net income from continuing operations of $2.25 million, or $0.76 per share. For the fiscal year ended June 30, 2007, Energy West reported net income of $2.3 million, or $0.79 per share, including net income from the discontinued operations of $0.4 million, or $0.14 per share, and net income from continuing operations of $1.9 million, or $0.65 per share. These audited results did not change from the unaudited results initially reported by the Company on August 30, 2007. The audited net income from continuing operations for fiscal year 2007 represents an 18% improvement over the results reported for fiscal year 2006, primarily due to increased operating efficiencies in Energy West's utility segment and improvements in its unregulated marketing and production business.
Mr. Smith continued, "The strong earnings reported for the fiscal year ended June 30, 2007 coupled with exciting growth prospects continue our commitment to bring value to Energy West shareholders."
For additional information or clarification, please contact: Wade Brooksby (406) 868-0730.
Our toll-free number is 1-800-570-5688.Our web address is www.energywest.com/.Our address is P.O. Box 2229, Great Falls, MT 59403-2229.
FCMN Contact: cajohnson@ewst.com
Source: Energy West, Incorporated
CONTACT:Wade Brooksby of Energy West, Incorporated, +1-406-868-0730
Web site: http://www.energywest.com/
