Operating Segments

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Operating Segments

Note 16 – Operating Segments

The Company classifies its operating segments to provide investors with a view of the business through management’s eyes. Historically, the Company has primarily separated its state regulated utility businesses from its non-regulated marketing and production business, and pipeline business. As of September 30, 2014, the Company has classified the operations of its Energy West Wyoming subsidiary and its Shoshone & Glacier pipeline assets as discontinued operations. As such, these components have been eliminated from the results of operation and financial position of the Natural Gas Operations and Pipeline Operations segments and presented as discontinued operations under Corporate & Other. This has effectively eliminated the Company’s Pipeline Operations segment. See Note 2- Discontinued Operations for more information regarding this treatment. Transactions between reportable segments are accounted for on the accrual basis, and eliminated prior to external financial reporting. Inter-company eliminations between segments consist primarily of gas sales from the marketing and production operations to the natural gas operations, inter-company accounts receivable and payable, equity, and subsidiary investments.

The following tables set forth summarized financial information for the Company’s natural gas, marketing and production, and corporate & other operations.

Three Months Ended September 30, 2014

	Natural Gas		Marketing &		Corporate &
	Operations		Production		Other		Consolidated
OPERATING REVENUES	$	12,544,151	$	2,134,914	$	-	$	14,679,065
Intersegment elimination		(1,453)		(1,062,641)		-		(1,064,094)
Total operating revenue		12,542,698		1,072,273		-		13,614,971
COST OF SALES		5,740,883		1,923,541		-		7,664,424
Intersegment elimination		(1,453)		(1,062,641)		-		(1,064,094)
Total cost of sales		5,739,430		860,900		-		6,600,330
GROSS MARGIN	$	6,803,268	$	211,373	$	-	$	7,014,641
OPERATING EXPENSES		8,146,216		372,682		873,202		9,392,100
Intersegment elimination		(26,571)		-		-		(26,571)
Total operating expenses		8,119,645		372,682		873,202		9,365,529
OPERATING INCOME (LOSS)	$	(1,316,377)	$	(161,309)	$	(873,202)	$	(2,350,888)
DISCONTINUED OPERATIONS	$	-	$	-	$	34,825	$	34,825
NET INCOME (LOSS)	$	(879,952)	$	(108,248)	$	(491,544)	$	(1,479,744)

Three Months Ended September 30, 2013

	Natural Gas		Marketing &		Corporate &
	Operations		Production		Other		Consolidated
OPERATING REVENUES	$	11,502,306	$	4,036,248	$	-	$	15,538,554
Intersegment elimination		(2,143)		(1,919,083)		-		(1,921,226)
Total operating revenue		11,500,163		2,117,165		-		13,617,328
COST OF SALES		4,683,408		3,620,637		-		8,304,045
Intersegment elimination		(2,143)		(1,919,083)		-		(1,921,226)
Total cost of sales		4,681,265		1,701,554		-		6,382,819
GROSS MARGIN	$	6,818,898	$	415,611	$	-	$	7,234,509
OPERATING EXPENSES		7,304,083		604,673		392,044		8,300,800
Intersegment elimination		(25,185)		-		-		(25,185)
Total operating expenses		7,278,898		604,673		392,044		8,275,615
OPERATING INCOME (LOSS)	$	(460,000)	$	(189,062)	$	(392,044)	$	(1,041,106)
DISCONTINUED OPERATIONS	$	-	$	-	$	(154,292)	$	(154,292)
NET INCOME (LOSS)	$	(440,255)	$	(129,525)	$	(434,558)	$	(1,004,338)

Nine Months Ended September 30, 2014

	Natural Gas		Marketing &		Corporate &
	Operations		Production		Other		Consolidated
OPERATING REVENUES	$	88,343,864	$	13,136,479	$	-	$	101,480,343
Intersegment elimination		(16,798)		(5,851,936)		-		(5,868,734)
Total operating revenue		88,327,066		7,284,543		-		95,611,609
COST OF SALES		56,274,466		12,389,959		-		68,664,425
Intersegment elimination		(16,798)		(5,851,936)		-		(5,868,734)
Total cost of sales		56,257,668		6,538,023		-		62,795,691
GROSS MARGIN	$	32,069,398	$	746,520	$	-	$	32,815,918
OPERATING EXPENSES		24,301,048		2,156,684		2,464,547		28,922,279
Intersegment elimination		(77,561)		-		-		(77,561)
Total operating expenses		24,223,487		2,156,684		2,464,547		28,844,718
OPERATING INCOME (LOSS)	$	7,845,911	$	(1,410,164)	$	(2,464,547)	$	3,971,200
DISCONTINUED OPERATIONS	$	-	$	-	$	581,652	$	581,652
NET INCOME (LOSS)	$	4,189,646	$	(936,885)	$	(1,142,632)	$	2,110,129

Nine Months Ended September 30, 2013

	Natural Gas		Marketing &		Corporate &
	Operations		Production		Other		Consolidated
OPERATING REVENUES	$	64,797,098	$	13,852,389	$	-	$	78,649,487
Intersegment elimination		(17,502)		(5,517,763)		-		(5,535,265)
Total operating revenue		64,779,596		8,334,626		-		73,114,222
COST OF SALES		36,443,585		12,312,274		-		48,755,859
Intersegment elimination		(17,502)		(5,517,763)		-		(5,535,265)
Total cost of sales		36,426,083		6,794,511		-		43,220,594
GROSS MARGIN	$	28,353,513	$	1,540,115	$	-	$	29,893,628
OPERATING EXPENSES		21,114,497		1,109,762		1,046,918		23,271,177
Intersegment elimination		(71,414)		-		-		(71,414)
Total operating expenses		21,043,083		1,109,762		1,046,918		23,199,763
OPERATING INCOME (LOSS)	$	7,310,430	$	430,353	$	(1,046,918)	$	6,693,865
DISCONTINUED OPERATIONS	$	-	$	-	$	402,062	$	402,062
NET INCOME (LOSS)	$	3,787,103	$	297,808	$	(628,442)	$	3,456,469

The following table shows the Company’s assets by operating segment.

September 30, 2014 

	Natural Gas		Marketing &		Corporate &
	Operations		Production		Other		Consolidated
Investment in unconsolidated affiliate	$	-	$	350,748	$	-	$	350,748
Goodwill		14,891,377		1,376,000		-		16,267,377
Total assets	$	193,413,912	$	7,963,197	$	94,147,121	$	295,524,230
Intersegment eliminations		(65,360,265)		(2,903,865)		(28,637,733)		(96,901,863)
Total assets	$	128,053,647	$	5,059,332	$	65,509,388	$	198,622,367

December 31, 2013 

	Natural Gas		Marketing &		Corporate &
	Operations		Production		Other		Consolidated
Investment in unconsolidated affiliate	$	-	$	351,724	$	-	$	351,724
Goodwill		14,891,377		1,376,000		-		16,267,377
Total assets	$	184,097,483	$	11,633,544	$	94,981,858	$	290,712,885
Intersegment eliminations		(53,772,095)		(3,678,311)		(29,518,864)		(86,969,270)
Total assets	$	130,325,388	$	7,955,233	$	65,462,994	$	203,743,615