SEATTLE, Jan. 18 /PRNewswire/ -- Cascade Natural Gas Corporation
(NYSE: CGC) reported a 15% improvement in first quarter earnings per share
over first quarter 1999 results. Net earnings available to common shareholders
were $7,640,000, or $0.69 per share, for the Fiscal Year 2000 first quarter.
Earnings for the Fiscal Year 1999 first quarter, were $6,631,000, or $0.60 per
share.
    Operating margin for the quarter ended December 31, 1999 was higher by
$446,000. Major contributors to the increase were:

    -- 8,300 new residential & commercial customers resulted in increased
margin of $912,000, partially offset by a reduction of $580,000 from lower
consumption per customer and higher revenue taxes. Consumption was negatively
affected by weather 4% warmer than last year and 3% warmer than normal.
    -- Industrial margin increased $267,000 due to increased gas consumption
by customers in various industrial classifications.

    Operating expenses for the quarter decreased $872,000, or 9%. Of this
decrease, $394,000 is from lower labor expense, primarily from the reduction
of 27 (5.6%) in the number of employees. All other categories of expense, with
the exception of medical benefits, decreased or remained essentially flat as a
result of the Company's ongoing efforts to improve efficiencies.
    Depreciation & Amortization expense increased $133,000 as a result of
asset additions.
    Interest and Other for the quarter includes a one time gain of
$131,000 (a $0.01 contribution to net earnings for the quarter) on the sale of
surplus property.
    First quarter capital expenditures, net of contributions in aid of
construction, were $3.0 million. Predominantly, expenditures were to extend
the distribution system to connect new customers. For the quarter, there was
$900,000 more in contributions in aid of construction from new customers. The
fiscal year 2000 capital budget is $23.5 million. These expenditures are
expected to be financed approximately 75% from operating cash flow and
25% from debt financing.
    The Company previously announced its declaration of a quarterly $0.24 per
share dividend on common stock, payable February 15, 2000 to shareholders of
record at the close of business January 14, 2000.
    Cascade Natural Gas Corporation is a local distribution company providing
natural gas service to over 185,000 customers in the states of Washington and
Oregon. The common stock is listed on the New York Stock Exchange with the
symbol CGC.
    Statements containing "forward-looking" information involve uncertainty.
Actual future results may differ materially depending on a variety of factors,
including the Company's successful execution of internal performance plans;
regulatory uncertainties; the weather; performance issues with key natural gas
suppliers and collective bargaining labor disputes.


                         Cascade Natural Gas Corporation
           Financial Highlights - (Thousands, except per share amounts)
                            First Quarter Fiscal 2000


                                          Fiscal Year 2000

                                         Three Months Ended            Year
                                                                      Ended
                                 Dec 31  Mar 31   Jun 30    Sep 30   Sep 30

    Revenues                    $73,791                             $73,791
    Operating Margin             27,608                              27,608
    Cost of Operations           13,016                              13,016

    Operating Income (Loss)      14,592                              14,592
    Interest and Other            2,559                               2,559
    Income Taxes                  4,392                               4,392

    Net Earnings (Loss)           7,641                               7,641

    Preferred Dividends               1                                   1

    Net Earnings (Loss)
     Available to
     Common Shareholders         $7,640                              $7,640


    Common Shares Outstanding:
      End of Period              11,045                              11,045
      Average                    11,045                              11,045

    Net Earnings
     (Loss) Per Share             $0.69                               $0.69

    Dividends Paid per share      $0.24                               $0.24

    Capital Expenditures (net)   $2,990                              $2,990

    Book Value Per Share         $10.81                              $10.81

    Market Closing Price         $16.13                              $16.13

    Customers (End of Period)       185                                 185

    Gas Deliveries (Therms):
      Residential & Commercial   79,432                              79,432
      Industrial & Other        358,102                             358,102

    Degree Days
      Normal                      2,002                               2,002
      Actual                      1,942                               1,942

    Colder (warmer) than normal    (3%)                                (3%)

                                             Fiscal Year 1999

                                           Three Months Ended          Year
                                                                      Ended
                                Dec 31  Mar 31   Jun 30    Sep 30    Sep 30

    Revenues                   $62,917 $71,118  $42,869   $31,706  $208,610
    Operating Margin            27,162  29,195   17,292    12,418    86,067
    Cost of Operations          13,724  13,791   13,501    12,712    53,728

    Operating Income (Loss)     13,438  15,404    3,791     (294)    32,339
    Interest and Other           2,622   2,584    2,477     2,528    10,211
    Income Taxes                 4,062   4,801      503   (1,291)     8,075

    Net Earnings (Loss)          6,754   8,019      811   (1,531)    14,053

    Preferred Dividends            123     119      121       120       483

    Net Earnings (Loss)
     Available to
     Common Shareholders        $6,631  $7,900     $690  $(1,651)   $13,570


    Common Shares Outstanding:
      End of Period             11,045  11,045   11,045    11,045    11,045
      Average                   11,045  11,045   11,045    11,045    11,045

    Net Earnings
     (Loss) Per Share            $0.60   $0.72    $0.06   $(0.15)     $1.23

    Dividends Paid per share     $0.24   $0.24    $0.24     $0.24     $0.96

    Capital Expenditures (net)  $6,038  $3,206   $3,488    $4,530   $17,262

    Book Value Per Share        $10.45  $10.92   $10.75    $10.33    $10.33

    Market Closing Price        $18.13  $14.94   $19.00    $17.88    $17.88

    Customers (End of Period)      177     179      178       177       177

    Gas Deliveries (Therms):
      Residential
       & Commercial             76,888  88,636   40,937    20,406   226,867
      Industrial & Other       347,585 281,395  240,793   286,768 1,156,541

    Degree Days
      Normal                     2,002   2,367      982       318     5,669
      Actual                     2,015   2,205    1,014       302     5,536

    Colder (warmer) than normal     1%    (7%)       3%      (5%)      (2%)


    CONTACT:  J. D. Wessling of Cascade Natural Gas Corporation,
206-624-3900.

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