Discontinued Operations

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 2 – Discontinued Operations

On September 30, 2014, the Company’s Energy West Inc. subsidiary was in the final stages of negotiating a stock purchase agreement for the sale of all of the stock of its wholly-owned subsidiary Energy West Wyoming, Inc. (“EWW”) to Cheyenne Light, Fuel and Power Company (“Cheyenne”). EWW has historically been included in the Company’s Natural Gas Operations segment. In conjunction, the Company’s subsidiary, Energy West Development, Inc., was also in the final stages of negotiating an asset purchase agreement for the sale of the transmission pipeline system known as the Shoshone Pipeline and the gathering pipeline system known as the Glacier Pipeline and certain other assets directly used in the operation of the pipelines (together the “Pipeline Assets”) to Black Hills Exploration and Production, Inc. (“Black Hills”), an affiliate of Cheyenne. The Pipeline Assets have historically been included in the Company’s Pipeline Operations segment. The Company expects to close the transactions in approximately six to twelve months. The agreements for the sale of EWW and the Pipeline Assets were executed on October 10, 2014. See Note 17 – Subsequent Events for more information regarding these transactions.

Upon completion of the transactions, the Company’s marketing and production subsidiary, EWR, will continue to conduct some business with both EWW and Black Hills relating to the Pipeline Assets. EWW will continue to purchase natural gas from EWR under an established gas purchase agreement through the first quarter of 2017. Concurrently, EWR will continue to use EWW’s transmission system under a standing transportation agreement through the first quarter of 2017. Finally, EWR will continue to use the Pipeline Assets’ transmission systems under a standing transportation agreement through October 2017.These transactions are a continuation of transactions that were conducted prior to the sales EWW and the Pipeline Assets and had been eliminated through the consolidation process.

The following table shows revenue and income from discontinued operations associated with EWW and the Pipeline Assets for the three and nine month periods ended September 30, 2014 and 2013.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Energy West Wyoming revenues	$	1,644,296	$	1,457,619	$	6,891,206	$	5,869,145
Shoshone & Glacier Pipeline revenues		97,195		99,290		294,071		302,609
Pretax income (loss) from discontinued operations
Energy West Wyoming	$	5,763	$	(18,991)	$	775,630	$	776,091
Shoshone & Glacier Pipeline		66,209		63,909		191,745		186,801
Other discontinued operations		(4,437)		(194,468)		(42,205)		(364,739)
Total pre-tax income	$	67,535	$	(149,550)	$	925,170	$	598,153
Income tax expense (benefit)		(32,710)		(4,742)		(343,518)		(196,091)
Income (loss) from discontiuned operations, net of tax	$	34,825	$	(154,292)	$	581,652	$	402,062
Basic and diluted income (loss) from discontiuned operations per share
Energy West Wyoming	$	0.00	$	(0.01)	$	0.05	$	0.06
Shoshone & Glacier Pipeline		0.01		0.01		0.01		0.01
Other discontinued operations		0.00		(0.02)		(0.01)		(0.02)
Total	$	0.01	$	(0.02)	$	0.05	$	0.05

The following table shows the major classes of assets and liabilities included in the sale of EWW and the Pipeline Assets.

	September 30,		December 31,
	2014		2013
Current Assets:
Cash and cash equivalents	$	35,113	$	406,184
Accounts receivable, net		543,162		971,308
Unbilled gas		164,608		557,498
Inventory		372,408		748,482
Prepayments and other		91,784		94,271
Recoverable cost of gas		852,988		88,318
Total current assets		2,060,063		2,866,061
Non-Current Assets:
Property, plant & equipment, net		8,787,287		8,932,641
Regulatory asset - income taxes		155,826		155,826
Other assets		33,318		43,524
Total non-current assets		8,976,431		9,131,991
Total assets	$	11,036,494	$	11,998,052
Current Liabilities:
Checks in excess of amounts on deposit	$	-	$	1,192
Accounts payable		114,973		51,278
Accrued liabilities		406,926		429,430
Other current assets		63,010		17,729
Total current liabilities		584,909		499,629
Non-Current Liabilities:
Customer advances for construction		31,815		29,405
Total liabilities	$	616,724	$	529,034