MENTOR, Ohio, July 24, 2014 /PRNewswire/ -- Gas Natural Inc. (NYSE MKT: EGAS) ("Gas Natural" or the "Company"), a holding company operating local natural gas utility companies serving approximately 73,000 customers in seven states, is responding to a press release issued yesterday by Algonquin Power & Utilities Corp. ("Algonquin").  The Company announced on July 21, 2014 that, after careful consideration and consultation with its financial and legal advisors, the independent directors and the Board as a whole unanimously determined that offers made by Algonquin on January 14, March 5 and May 7, 2014 were inadequate and not in the best interests of the Company's shareholders and, as a result, rejected each offer.  Today, the Company is reiterating its position and responding to misleading and incorrect information distributed by Algonquin yesterday.

W. Gene Argo, Chairman of the Board of Gas Natural, said, "Our Board was unanimous in its determination that all three of Algonquin's unsolicited offers were grossly inadequate and substantially undervalue Gas Natural as Algonquin attempted to create value for itself.  We are committed to aggressively implementing our detailed, long-term strategic plan to create value for our shareholders by executing on opportunities for significant revenue and EBITDA growth and generating strong shareholder returns.  Our plan includes continuing to invest in our existing utilities, particularly in our underpenetrated and emerging markets in North Carolina and Maine, which we expect will drive growth in our overall customer base by 4% to 5% annually. We are also continuously focused on improving our operational efficiencies to strengthen our earnings power and maximize the value of our assets.  In addition to our organic growth focus, we evaluate potential acquisitions of utilities that are either adjacent to current operations or are in underserved markets.  Further, we evaluate our assets to ensure we can generate strong earnings growth, including consideration of what may be less strategic assets.  We have confidence in the leadership of our recently appointed senior management team consisting of our President and CEO, Gregory J. Osborne and our Vice President and CFO, James E. Sprague, CPA.  Both have extensive industry knowledge and experience to lead the significant changes we are undertaking.  And in addition to executing our strategic growth plan, we provide monthly cash returns to our shareholders in the form of a dividend yielding approximately 5.2% annually."

Mr. Argo added, "We believe Algonquin is failing to see the transformative changes that have been implemented at Gas Natural and chooses to focus on past events that we have rectified.  We have driven change at every level of the organization and have the right people, processes and structure to succeed and drive shareholder value.  Algonquin also appears to be willfully ignoring relevant facts about the Company and making accusations and negligent assumptions as another tactic to distract our shareholders from the positive strides we have made.  Such actions speak to their self interest, and further support our position."

About Gas Natural Inc.
Gas Natural Inc., a holding company, distributes and sells natural gas to end-use residential, commercial, and industrial customers.  It distributes approximately 36 billion cubic feet of natural gas to approximately 73,000 customers through regulated utilities operating in Montana, Wyoming, Ohio, Pennsylvania, Maine, North Carolina and Kentucky.  The Company's other operations include interstate pipeline, natural gas production and natural gas marketing.  The Company's Montana public utility was originally incorporated in 1909.  Its strategy for growth is to expand throughput in the Maine and North Carolina markets while looking for acquisitions that are either adjacent to its existing utilities or in under saturated markets.  Gas Natural Inc. regularly posts information on its website at www.egas.net.

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, Gas Natural 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 ability to successfully integrate the operations of the companies it has recently acquired and consummate additional acquisitions, the Company's continued ability to make dividend payments, the Company's ability to implement its business plan, 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, the Company's ability to satisfy its debt obligations, including compliance with financial covenants, weather conditions, litigation risks, 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. Gas Natural Inc. expressly undertakes no obligation to update or revise any forward-looking statement contained herein to reflect any change in Gas Natural Inc.'s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

SOURCE Gas Natural Inc.