Energy West, Incorporated to Acquire Natural Gas Utility in Cut Bank, Montana
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GREAT FALLS, Mont., Dec. 20 / -- ENERGY WEST, INCORPORATED (NASDAQ:EWST), a natural gas utility and energy marketing company and Cut Bank Gas Company, a natural gas utility serving Cut Bank Montana, today jointly announced the execution of a stock purchase agreement among Energy West and certain shareholders of Cut Bank for the sale of 83.16% of the outstanding shares of Cut Bank Gas Company for a purchase price of $500,000 in shares of common stock of Energy West. In addition, Energy West will offer to purchase the remaining shares of Cut Bank Gas Company from the shareholders holding such shares for a purchase price of $66.44 per share or approximately $100,000 in shares of common stock of Energy West.
The acquisition is subject to the approval of the Montana Public Service Commission (MPSC) and is expected to be completed between three to six months. The acquisition will close on the last business day of the month after all closing conditions have been satisfied, including MPSC approval, as the case may be.
Rick Osborne, Energy West's Chairman and Chief Executive Officer indicated that "We are very excited with this opportunity to acquire the Cut Bank Gas Company which fits so well into our strategy of serving smaller and emerging markets. We are also pleased that its service territory is so close to our production and gathering assets."
Dan F. Whetstone, President of Cut Bank Gas Company has stated that he "welcomes this opportunity to merge with Energy West, Inc." Mr. Whetstone believes that "this is an opportunity for both the Cut Bank Gas Company shareholder and the consumer and we look forward to favorable consideration from the Montana Public Service Commission".
About Energy West
Energy West, Incorporated distributes and sells natural gas to end-use residential, commercial, and industrial customers in the United States. It currently distributes approximately 25 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 2.0 billion cubic feet of natural gas to commercial and industrial customers in Montana and Wyoming. It also has an ownership interest in approximately 165 natural gas producing wells and gas gathering assets near Cut Bank, Montana. In addition, the company owns the Shoshone interstate and the Glacier gathering pipeline located in Montana and Wyoming. Energy West was incorporated in 1909 and is headquartered in Great Falls, Montana.
FCMN Contact: cajohnson@ewst.com
Source: Energy West, Incorporated
CONTACT: Dave Cerotzke, Vice Chairman of Energy West, Incorporated,
+1-406-791-7506
Web site: http://www.energywest.com/
