Cap Rock Energy Announces Issuance of Stock Grants, Officer Appointment and Director Retirement
December 22 2004 - 7:23PM
PR Newswire (US)
Cap Rock Energy Announces Issuance of Stock Grants, Officer
Appointment and Director Retirement MIDLAND, Texas, Dec. 22
/PRNewswire-FirstCall/ -- Cap Rock Energy Corporation (AMEX:RKE)
today announced a grant of restricted stock to all company
employees and directors in recognition of the company's successful
transition to an investor-owned utility and its high rates of
customer satisfaction. These restricted stock grants are part of
the Company's continuing effort to reward and provide incentives to
employees and directors, for developing one of the best electric
utilities in the southwest, according to David W. Pruitt,
President/CEO and Co-Chairman of the Board. The Company was the
first electric cooperative in the nation to change its corporate
structure to a shareholder owned corporation and it has created
approximately $100 million in value for its shareholders in the
process. The restricted stock grants allow the Company to reward
employees and directors at no cost to the Company's customers,
since the stock grants are not included in the Company's rate base.
"It has been our model all along to have a part of all employee
compensation paid in stock in their Company as a reward for their
efforts and as an incentive for future success," Pruitt said. "This
model was approved by our shareholders in 2002 and has proven to be
a success. We have performed very well for our shareholders and our
customers since changing from an electric cooperative to an
investor-owned utility and we have laid the groundwork for other
electric cooperatives to follow our lead." "This was not an easy
transition and our success is due to the continued efforts of our
dedicated employees and directors. These restricted stock grants
are a reward to our employees for their commitment and hard work as
Cap Rock's high level of customer satisfaction is directly related
to their efforts. The dilution effect of the restricted stock
grants is approximately 5% on the Company's stock." The Company
provides electric distribution services to its customers and is
known for its exemplary customer service. Cap Rock changed its
corporate structure from an electric cooperative to a shareholder
owned corporation in 2002 and has experienced a great deal of
success since the transition, as evidenced by strong earnings and
rising stock prices. The approximately 120,000 shares of restricted
stock awards require all recipients to continue to hold at least
25% of the stock awarded as long as they remain with the Company.
These restricted stock awards will ensure that the devoted
employees who have contributed to the Company's success will remain
with the Company and benefit from its continued success. Cap Rock
Energy also announced today that the Board, upon the recommendation
of Mr. Pruitt, elected Will West to serve as President of the
Company. Mr. West earned both a Bachelor's and a Master's degree in
accounting from Texas A&M University and is a Certified Public
Accountant. Prior to joining the Company, he was a part of the
senior management team of KPMG, LLC, and worked as a senior officer
for Benchmark, a privately held energy company operating across the
southwest. Mr. West joined Cap Rock Energy in July 2003 and most
recently served as Vice-President and Chief Strategic Officer. Mr.
West will immediately assume the duties of President. Mr. Pruitt
will remain with the Company as CEO and Co-Chairman of the Board of
Directors. Mr. West also was appointed to serve on Cap Rock
Energy's Board of Directors, replacing Newell Tate, a longtime
director of the Company and its predecessor, who announced his
intent to retire and submitted his resignation as a director. With
Mr. Tate's retirement, the Board voted to appoint Mr. West to fill
his unexpired term. "We are excited to have someone of Will's
caliber to serve as President of the Company and to serve on the
Board," Mr. Pruitt said. "He has continually taken on more and more
responsibility since he came to us in 2003 and has proven to be an
outstanding leader capable of making tough decisions." Added
Russell E. Jones, Co-Chairman of the Board of Directors, "Newell
Tate will be greatly missed. While we are blessed to have Will, we
hate to lose Newell. He has been instrumental in making this
Company a success and in creating value for all of the customers
and shareholders of the Company and its predecessor. He has been a
valuable member of the Board for a long time and we wish him the
very best." Mr. West said, "I am very excited about the opportunity
to lead this great Company and grateful to David and the Board for
their trust and vote of confidence. I will continue to build upon
the strong foundation that has been laid and look forward to
guiding our Company in becoming a leader in the industry." Cap Rock
Energy provides electric distribution services to over 35,000
meters in 28 counties in Texas. Its corporate office is located in
Midland, Texas, with service divisions in Stanton, Colorado City,
Brady and Celeste, Texas. The Company also provides management
services to the Farmersville Municipal Electric System. The
Company's predecessor, Cap Rock Electric Cooperative, Inc., was
incorporated as an electric cooperative in the State of Texas in
1939. All statements, other than statements of historical fact
included in this news release are forward looking statements as
that term is defined in the Private Securities Litigation Reform
Act of 1995. Any such forward looking statements involve risks and
uncertainties and actual results, performance or achievements of
Cap Rock Energy may be different from those expressed or implied in
the forward looking statements. DATASOURCE: Cap Rock Energy
Corporation CONTACT: Ronnie Lyon, VP/General Counsel of Cap Rock
Energy Corporation, +1-903-813-0377,
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