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AGA Financial Forum – Gas Natural Inc.

Gas Natural Inc. · May 19, 2015 · 28 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. AGA Financial Forum – Gas Natural Inc. – slide 1
    AGA Financial Forum May 17-19, 2015 Gregory J. Osborne James E. Sprague, CPA President & CEO Vice President & CFO
  2. AGA Financial Forum – Gas Natural Inc. – slide 2
    GREGORY J. OSBORNE PRESIDENT & CHIEF EXECUTIVE OFFICER Corporate Overview 2015 Gas Natural Inc. 3
  3. AGA Financial Forum – Gas Natural Inc. – slide 3
    Our VISION: To be a premier natural gas company recognized as the benchmark in the natural gas utility industry by customers, peers and investors 2015 Gas Natural Inc. 4
  4. AGA Financial Forum – Gas Natural Inc. – slide 4
    Gas Natural Inc. Our MISSION: To provide safe, reliable, cost-effective natural gas services to current and future customers Utility operations in: Montana, Ohio, Maine, North Carolina, Kentucky, Pennsylvania Market and distribute…
  5. AGA Financial Forum – Gas Natural Inc. – slide 5
    Strategy Our strategy is to leverage our utility management operation and investment capabilities to capture greater market penetration and earn the highest allowed returns where there are growth opportunities 2015 Gas Natural…
  6. AGA Financial Forum – Gas Natural Inc. – slide 6
    Investment Highlights Creating Shareholder Value Transforming Gas Natural to drive earnings growth Strategic growth initiatives Revenue[1] Adjusted EBITDA[1]* ( in millions) ( in millions) 132.6 124.8 18.7 19.1 19.1 109.4 86.4…
  7. AGA Financial Forum – Gas Natural Inc. – slide 7
    Recent Highlights Expanded natural gas customer count by 4.6% in 2014 to over 68,000[1] Increased full service distribution throughput by 12.4%[1] in 2014 Right-sized operations to get right people in right positions; reduced…
  8. AGA Financial Forum – Gas Natural Inc. – slide 8
    Risk Mitigation Through Geographic Diversification Pennsylvania Ohio Maine Montana North Carolina Kentucky 8,300 customers, up 18.6% 28,900 customers, up 5.1% 31,200 customers, up 0.6% 250 miles of transmission 1,344 miles…
  9. AGA Financial Forum – Gas Natural Inc. – slide 9
    Strategic Growth Initiatives Quality, Service, Safety Cost, Controls, Compliance Investments in Organic Growth Opportunities Further Growth Through Acquisition 2015 Gas Natural Inc. 10
  10. AGA Financial Forum – Gas Natural Inc. – slide 10
    Invest in Organic Growth [1] Approximately 68,000 local customers Customers [1] (in thousands) in six states 68.0 Average + 180 customers/month 65.4 62.5 Approximately + 4% to 5% customers/year 59.0 Rapidly expanding market share…
  11. AGA Financial Forum – Gas Natural Inc. – slide 11
    Future Growth Through Acquisition Bolt-On New Market Transformational Create critical Target areas Provide step- mass; add rate with low change to base near saturation rates operational existing utility for natural gas efficiencies…
  12. AGA Financial Forum – Gas Natural Inc. – slide 12
    Proven Acquisition Experience Purchase Price 2013 Gas marketing operations in northern OH 2.9MM plus earn out 2012 Loring Pipeline and various parcels of land in ME 4.5MM LDC in eastern KY; 1,600 customers 1.6MM 2011 Spelman…
  13. AGA Financial Forum – Gas Natural Inc. – slide 13
    JAMES E. SPRAGUE, CPA VICE PRESIDENT & CFO Financial Highlights 2015 Gas Natural Inc. 14
  14. AGA Financial Forum – Gas Natural Inc. – slide 14
    Thoughtful Financial Strategy Measured CapEx investment Capital driving throughput Structure Solid internal controls and transparent regulatory environment Financial Efficient systems to Strategy facilitate dynamic…
  15. AGA Financial Forum – Gas Natural Inc. – slide 15
    Profitability Trends Gross Margin[1] Adjusted Operating Income[1]* ( in millions) ( in millions) 12.8 12.0 43.4 44.9 45.0 11.6 34.7 36.9 9.8 8.7 40% 40% 45% 40% 36% 11% 11% 12% 9% 9% 2011 2012 2013 2014 Q1 2015 TTM 2011 2012…
  16. AGA Financial Forum – Gas Natural Inc. – slide 16
    Q1 2015 Financial Results ( in millions) Gross Margin[1] ( in millions) Adjusted Operating Income[1]* 17.4 17.6 8.7 8.3 28.3% 32.7% 14% 15% Q1 2014 Q1 2015 Q1 2014 Q1 2015 Increased gross margin driven by ( in millions,…
  17. AGA Financial Forum – Gas Natural Inc. – slide 17
    Cash and Capital Investments Operating Cash Flow[1] Cash & Cash Equivalents[1] ( in millions) ( in millions) 15.4 12.7 12.7 13.6 11.1 10.4 7.6 3.2 2.7 1.6 2011 2012 2013 2014 Q1 2015 TTM 2011 2012 2013 2014 3/31/2015 2015…
  18. AGA Financial Forum – Gas Natural Inc. – slide 18
    Capital Structure to Support Growth Total Debt[1] & Equity[1] Dividends Paid per Share ( in millions) 0.55 0.55 97.5 96.3 99.9 0.54 0.54 0.54 74.8 71.1 76.3 71.1 71.1 67.0 55.5 2011 2012 2013 2014 3/31/2015 2011 2012 2013…
  19. AGA Financial Forum – Gas Natural Inc. – slide 19
    Peer Comparisons Price to Earnings (TTM) Dividend Yield CNIG: NM CRBO: No Dividend 5.4% 32.3 4.1% 4.2% 3.8% 24.4 3.5% 3.5% 22.3 22.5 20.8 21.0 18.2 2.6% 17.7 2.1% 8.6 CRBO UTL CPK RGCO NWN DGAS UIL CNIG EGAS CPK CNIG…
  20. AGA Financial Forum – Gas Natural Inc. – slide 20
    GREGORY J. OSBORNE PRESIDENT & CHIEF EXECUTIVE OFFICER Outlook 2015 Gas Natural Inc. 21
  21. AGA Financial Forum – Gas Natural Inc. – slide 21
    2015 Priorities Drive customer growth by 4%-5% Increase throughput Continue to proactively improve regulatory transparency Continue strategic pipeline investments with greater cost discipline Enhance operational efficiency with…
  22. AGA Financial Forum – Gas Natural Inc. – slide 22
    Long-Term Outlook Capital investment plans Continue organic growth Strategic rationalization of assets Execute strategic growth initiatives Build on successful acquisition strategy Implement operational efficiencies 2015…
  23. AGA Financial Forum – Gas Natural Inc. – slide 23
    AGA Financial Forum May 17-19, 2015 2015 Gas Natural Inc. 24
  24. AGA Financial Forum – Gas Natural Inc. – slide 24
    SUPPLEMENTAL INFORMATION 2015 Gas Natural Inc. 25
  25. AGA Financial Forum – Gas Natural Inc. – slide 25
    Heating Degree Days Heating Degree Days Three Months Ended Percent Colder (Warmer) March 31, 2015 Compared to Normal 2015 2014 Normal 2014 Great Falls, MT 3,211 2,778 3,590 (13.48%) (22.62%) Bangor, ME 3,576 4,453 4,039 24.52% 10.25%…
  26. AGA Financial Forum – Gas Natural Inc. – slide 26
    Income Statement ( in thousands, except share and per share data) Year Ended December 31, Three Months Ended March 31, 2010 2011 2012 2013 2014 2015 2014 REVENUES Natural gas operations 75,202 80,575 73,901 97,233 123,053 51,280…
  27. AGA Financial Forum – Gas Natural Inc. – slide 27
    Adjusted EBITDA Reconciliation ( in thousands) For Years Ended Three Months Ended December 31, March 31, 2011 2012 2013 2014 2015 2014 GAAP Income from continuing operations 4,065 3,195 5,852 2,729 4,417 4,537 +Interest expense 2,032…
  28. AGA Financial Forum – Gas Natural Inc. – slide 28
    Adjusted Operating Income, Net Income & EPS For Years Ended Three Months Ended ( in thousands) December 31, March 31, 2011 2012 2013 2014 2015 2014 GAAP Operating Income 9,147 8,743 11,752 7,099 7,675 8,011 +Customer bankruptcy…

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