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Western New York Investor Conference – Gas Natural Inc.

Gas Natural Inc. · Sep 26, 2014 · 27 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. Western New York Investor Conference – Gas Natural Inc. – slide 1
    Western New York Investors Conference September 26, 2014 Gregory J. Osborne James E. Sprague, CPA President & CEO Vice President & CFO
  2. Western New York Investor Conference – Gas Natural Inc. – slide 2
    GREGORY J. OSBORNE PRESIDENT & CHIEF EXECUTIVE OFFICER Corporate Overview 2014 Gas Natural Inc. 3
  3. Western New York Investor Conference – Gas Natural Inc. – slide 3
    We are a well positioned and growing natural gas utility led by a new and experienced management team. We provide responsive, reliable customer service at fair and reasonable rates, resulting in solid profitability. 2014 Gas Natural…
  4. Western New York Investor Conference – Gas Natural Inc. – slide 4
    Gas Natural Inc. Utility operations in: Montana, Wyoming, Ohio, Pennsylvania, Maine, North Carolina, Kentucky Market and distribute natural gas and conduct interstate pipeline operations in Montana and Wyoming Founded: 1909 IPO:…
  5. Western New York Investor Conference – Gas Natural Inc. – slide 5
    Recent Highlights Increased utility throughput in 2013 by 9%, to 36 bcf Expanded natural gas customer count in 2013 by 5%, to over 72,000 Executed multi-year agreement with customer in ME Completed activation of Phase 1 of Loring…
  6. Western New York Investor Conference – Gas Natural Inc. – slide 6
    Investment Highlights Creating Shareholder Value Transforming Gas Natural to drive earnings growth Strategic growth initiatives Revenue EBITDA** ( in millions) ( in millions) 142.2 19.3 18.5 118.8 96.2 15.2 14.7 15.1 91.5…
  7. Western New York Investor Conference – Gas Natural Inc. – slide 7
    Risk Mitigation Through Geographic Diversification Customers and Weather Pennsylvania Montana Maine Ohio North Carolina Wyoming Kentucky 7,500 customers 27,900 customers 37,800 customers 324 miles of transmission 1,056…
  8. Western New York Investor Conference – Gas Natural Inc. – slide 8
    Transforming Gas Natural Inc. Changes in executive management May 2014: Gregory J. Osborne appointed CEO James E. Sprague, C.P.A. appointed CFO August 2014: Kevin J. Degenstein appointed COO & CCO Appointed MaloneBailey as…
  9. Western New York Investor Conference – Gas Natural Inc. – slide 9
    Strategic Growth Initiatives Quality, Service, Safety Cost, Controls, Compliance Investments in Organic Growth Opportunities Further Growth Through Acquisition 2014 Gas Natural Inc. 10
  10. Western New York Investor Conference – Gas Natural Inc. – slide 10
    Invest in Organic Growth [1] Approximately 73,000 local customers in seven Customers states (in thousands) 75 Average + 300 customers/month 73 Average + 4% to 5% customers/year 69 67 Rapidly expanding market share in ME and NC 64…
  11. Western New York Investor Conference – 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. Western New York Investor Conference – Gas Natural Inc. – slide 12
    Proven Acquisition Experience Purchase Price 2013 Gas marketing operations in northern OH 2.9MM plus earn out 2012 LDC in eastern KY; 1,600 customers 1.6MM Loring Pipeline and various parcels of land in ME 4.5MM 2011 Spelman…
  13. Western New York Investor Conference – Gas Natural Inc. – slide 13
    JAMES E. SPRAGUE, CPA VICE PRESIDENT & CFO Financial Highlights 2014 Gas Natural Inc. 14
  14. Western New York Investor Conference – 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. Western New York Investor Conference – Gas Natural Inc. – slide 15
    Profitability Trends Gross Margin Operating Income ( in millions) ( in millions) 50.8 13.2 47.5 11.1 11.8 39.0 42.0 10.2 9.6 36.8 40% 39% 45% 40% 36% 12% 10% 10% 11% 8% 2010 2011 2012 2013 Q2 2014 TTM 2010 2011 2012 2013 Q2…
  16. Western New York Investor Conference – Gas Natural Inc. – slide 16
    Q2 2014 Financial Results Gross Margin Operating Income ( in millions) ( in millions) 9.2 8.2 0.0 20% (1.6) Q2 2013 Q2 2014 Q2 2013 Q2 2014 Net Income & EPS Gross margin 13% growth driven by customer expansion and colder (…
  17. Western New York Investor Conference – Gas Natural Inc. – slide 17
    Strong Cash Flows Operating Cash Flow Cash & Cash Equivalents ( in millions) ( in millions) 16.6 14.9 13.0 13.1 10.5 9.1 9.8 6.7 3.4 3.2 2010 2011 2012 2013 Q2 2014 TTM 2010 2011 2012 2013 Q2 2014 Operating cash flow…
  18. Western New York Investor Conference – Gas Natural Inc. – slide 18
    Capital Structure to Support Growth Total Debt & Equity Dividends ( in millions) 0.56 0.54 0.54 0.55 97.5 98.6 73.7 74.8 71.1 76.3 71.1 63.6 55.7 55.5 0.27 2010 2011 2012 2013 Q2 2014 Debt Equity 2010 2011 2012 2013 1H…
  19. Western New York Investor Conference – Gas Natural Inc. – slide 19
    Peer Comparisons Price to Earnings Price to Book Dividend Yield (TTM) 4.7% 4.7% 2.25x 25.9x 2.12x 4.3% 4.2% 3.9% 1.84x 1.85x 21.9x 3.6% 19.8x 20.2x 1.64x 1.53x 1.53x 17.9x 16.8x 17.2x 15.4x 1.23x 2.4% 2.3% Data as of…
  20. Western New York Investor Conference – Gas Natural Inc. – slide 20
    GREGORY J. OSBORNE PRESIDENT & CHIEF EXECUTIVE OFFICER Outlook 2014 Gas Natural Inc. 21
  21. Western New York Investor Conference – Gas Natural Inc. – slide 21
    2014 Priorities Solidify management team Drive customer growth by 4%-5% Increase throughput Improve regulatory transparency Continue pipeline investments Drive culture change throughout organization 2014 Gas Natural Inc. 22
  22. Western New York Investor Conference – Gas Natural Inc. – slide 22
    Long-Term Outlook Capital investment plans Invest in utilities Execute strategic growth initiatives Build on successful acquisition strategy Continue organic growth Implement operational efficiencies 2014 Gas Natural Inc.…
  23. Western New York Investor Conference – Gas Natural Inc. – slide 23
    SUPPLEMENTAL INFORMATION 2014 Gas Natural Inc. 24
  24. Western New York Investor Conference – Gas Natural Inc. – slide 24
    Heating Degree Days Three Months Ended Percent Colder (Warmer) June 30, 2014 Compared to Normal 2014 2013 Normal 2013 Great Falls, MT 2,141 1,273 1,310 (40.54%) (2.82%) Cody, WY 2,074 1,116 1,155 (46.19%) (3.38%) Bangor, ME 1,934…
  25. Western New York Investor Conference – Gas Natural Inc. – slide 25
    Income Statement Year Ended December 31, Six Months Ended June 30, Three Months Ended June 30, REVENUES 2010 2011 2012 2013 2014 2013 2014 2013 Natural gas operations 83,607,356 89,994,616 81,305,951 106,264,609 81,031,278 57,690,959…
  26. Western New York Investor Conference – Gas Natural Inc. – slide 26
    Adjusted EBITDA Reconciliation For Years Ended For Six Months Ended (in thousands) December 31, June 30, 2010 2011 2012 2013 2014 2013 Net Income 5,797 5,370 3,719 6,671 3,590 4,461 +Net Interest Expense 2,178 2,034 2,700 3,179 1,571…
  27. Western New York Investor Conference – Gas Natural Inc. – slide 27
    Western New York Investors Conference September 26, 2014 2014 Gas Natural Inc. 28

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