Gas Natural wholly-owned subsidiary Public Gas Company has signed a agreement to sell assets used in the operation of its Kentucky utility business to Kentucky Frontier Gas for $1.9m.
The closing is subject to customary closing conditions, as well as regulatory approvals.
Mr. Gregory J. Osborne, President and Chief Executive Officer of Gas Natural, commented, "With the proposed sale of our Kentucky utility, along with the pending sale of our Pennsylvania business and the recent divestiture of our Wyoming operations, we have measurably advanced our plan to rationalize non-core assets. We plan to redeploy the capital from the sales to markets where we can focus on growth, quality customer service and solid returns on investment. We believe our Kentucky customers will be in very good hands. Kentucky Frontier provides thousands of customers in eastern Kentucky with safe, efficient and cost effective natural gas service."
Public Gas Company, a Kentucky corporation, annually distributes 147.4 million cubic feet within seven counties in eastern Kentucky. Kentucky Frontier Gas, a Colorado corporation, is based in Prestonsburg, Kentucky and currently serves approximately 4,000 customers in the surrounding area.