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Operating Segments
 9 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Operating Segments
Operating Segments

Our Company has two reportable segments:  a regulated segment and a non-regulated segment. Our regulated segment includes our natural gas distribution and transportation services, which are regulated by the Kentucky Public Service Commission. Our non-regulated segment includes our natural gas marketing activities and the sales of natural gas liquids. The non-regulated segment produces a portion of the natural gas it markets to its customers. The division of these segments into separate revenue generating components is based upon regulation, products and services. Both segments operate in the single geographic area of central and southeastern Kentucky. Our chief operating decision maker is our Chief Executive Officer. We evaluate performance based on net income of the respective segment.

The reportable segments follow the same accounting policies as described in the Summary of Significant Accounting Policies in Note 1 of the Notes to Consolidated Financial Statements that are included in our Annual Report on Form 10-K for the year ended June 30, 2015.  Intersegment revenues and expenses represent the natural gas transportation costs from the regulated segment to the non-regulated segment at our tariff rates.  Operating expenses, taxes and interest are allocated to the non-regulated segment.
 
Segment information is shown in the following table:
 
Three Months Ended
 
Nine Months Ended
 
 
 
March 31,
 
March 31,
 
 
($000)
2016
 
2015
 
2016
 
2015
 
 
Operating Revenues
 
 
 
 
 
 
 
 
 
Regulated
 
 
 
 
 
 
 
 
 
External customers
17,193

 
23,144

 
33,900

 
45,391

 
 
Intersegment
1,312

 
1,355

 
2,902

 
3,142

 
 
Total regulated
18,505

 
24,499

 
36,802

 
48,533

 
 
Non-regulated

 

 

 

 
 
External customers
9,009

 
11,941

 
19,369

 
28,891

 
 
 
 
 
 
 
 
 
 
 
 
Eliminations for intersegment
(1,312
)
 
(1,355
)
 
(2,902
)
 
(3,142
)
 
 
Consolidated operating revenues
26,202

 
35,085

 
53,269

 
74,282

 
 
 

 

 

 

 
 
Net Income

 

 

 

 
 
Regulated
3,675

 
3,814

 
4,860

 
5,843

 
 
Non-regulated
308

 
341

 
402

 
658

 
 
Consolidated net income
3,983

 
4,155

 
5,262

 
6,501