Gas Natural Inc. (the company), a holding company operating local natural gas utilities serving approximately 67 000 customers in four states, announced that it recently completed the sale of its Kentucky utility, Public Gas Company, to Kentucky Frontier Gas, LLC and its Pennsylvania utilities, Clarion and Walker, to Utility Pipeline, Ltd. Regulatory approval preceded both closings.
As anticipated, total proceeds were approximately US$2.7 million and the financial effect of the sales will be reflected in 4Q15 results. The company had previously announced that it entered into agreements for both transactions.
Gregory J. Osborne, President and Chief Executive Officer of Gas Natural, said, "The completion of these divestitures and our program to monetise non-core assets marks yet another milestone along the path to focus our business on opportunities that will create greater shareholder value. Selling our non-core assets enables us to direct our energies and resources on our operations that have higher growth potential. In Montana and Ohio, we can leverage the scale we already have in those markets. North Carolina and Maine are both underserved markets where demand for natural gas is growing."
Adapted from press release by Francesca Brindle
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