Energy, Inc. Announces Earnings for the Quarter Ended June 30, 2009 and its Monthly Dividend of $.045 per Share.

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 [phone]. 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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