Gas Natural Inc. Announces Pro Rata Dividend in Connection with Merger with Affiliates of BlackRock, Inc.

CLEVELAND–(BUSINESS WIRE)–Gas
Natural Inc. (NYSE MKT: EGAS) (the “Company”), a holding company
operating local natural gas utilities serving approximately 70,000
customers in four states, announced a special cash dividend equal to
$0.0008152 per share of common stock for each day elapsed from and
including July 1, 2017 and ending on the first business day prior to the
closing date of the previously announced merger with FR Bison Merger
Sub, Inc. (“FR Bison”). FR Bison is an indirect affiliate of BlackRock,
Inc. through BlackRock’s acquisition of First Reserve Energy
Infrastructure Funds.

The special dividend will be payable to shareholders of record at the
close of business on the business day prior to the merger closing date,
which is not yet known. The dividend is permitted by the terms of the
agreement and plan of merger filed by the Company on Form 8-K on October
11, 2016.

The special dividend will not be paid if the merger agreement is
terminated or the merger does not close on or before September 30, 2017,
in which case it will be replaced by the Company’s quarterly dividend.

About Gas Natural Inc.

Gas Natural Inc., a holding company, distributes and sells natural gas
to residential, commercial, and industrial customers. It distributes
approximately 21 billion cubic feet of natural gas to roughly 70,000
customers through regulated utilities operating in Montana, Ohio, Maine
and North Carolina. The Company’s other operations include intrastate
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 its markets, while
looking for acquisitions that are either adjacent to its existing
utilities or in under-served markets. Further information is available
on the Company’s 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 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 acquired and consummate additional acquisitions; the
Company’s continued ability to make or increase dividend payments; the
Company’s ability to implement its business plan, grow earnings and
improve returns on investment; 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.

Contacts

Gas Natural Inc.
James E. Sprague, 216-202-1564
Chief
Financial Officer
[email protected]
or
Investor
Relations
Kei Advisors LLC
Deborah K. Pawlowski,
716-843-3908
[email protected]
or
Karen
L. Howard, 716-843-3942
[email protected]