Discontinued Operations

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 4 – Discontinued Operations

The following table reconciles the carrying amounts of the major classes of assets and liabilities to the Company’s discontinued operations as presented on its Consolidated Balance Sheet.

	December 31,
	2014		2013
Current Assets:
Cash and cash equivalents	$	257,358	$	406,184
Accounts receivable, net		1,002,918		971,308
Unbilled gas		735,122		557,498
Inventory		181,197		748,482
Prepayments and other		71,101		99,219
Regulatory assets, current		250,031		88,318
Total current assets		2,497,727		2,871,009
Non-Current Assets:
Property, plant & equipment, net		8,966,965		8,960,986
Regulatory assets, non-current		155,826		155,826
Other assets		33,416		44,382
Total non-current assets		9,156,207		9,161,194
Total discontinued assets	$	11,653,934	$	12,032,203
Current Liabilities:
Checks in excess of amounts on deposit	$	-	$	1,192
Accounts payable		29,657		62,131
Accrued liabilities		334,664		429,961
Other current liabilities		139,318		52,200
Total current liabilities		503,639		545,484
Non-Current Liabilities:
Customer advances for construction		40,793		29,405
Total discontinued liabilities	$	544,432	$	574,889

The following table reconciles the carrying amounts of the major line items constituting the pretax profit of discontinued operations to the after-tax profit or loss of discontinued operations that are presented on the Consolidated Statement of Comprehensive Income.

	Year Ended December 31,
	2014		2013		2012
Revenues	$	10,927,150	$	13,130,554	$	12,422,318
Cost of sales		(6,696,602)		(7,855,827)		(7,279,787)
Distribution, general & administrative		(1,559,021)		(2,643,821)		(2,666,911)
Maintenance		(175,509)		(239,321)		(263,559)
Depreciation & amortization		(541,777)		(925,389)		(989,535)
Taxes other than income		(326,214)		(395,145)		(363,802)
Other income (expense)		23,597		5,098		89,048
Interest expense		(1,603)		(25,268)		(23,615)
Pretax income from discontinued operations		1,650,021		1,050,881		924,157
Loss on sale of discountinued operations		-		(7,915)		-
Total pretax income from discontinued operations		1,650,021		1,042,966		924,157
Income tax expense		(617,410)		(223,828)		(400,328)
Income from discontinued operations	$	1,032,611	$	819,138	$	523,829

Energy West Wyoming and the Glacier & Shoshone Pipelines

On October 10, 2014, the Company executed 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 with this sale, the Company’s Energy West Development, Inc. subsidiary, entered into an asset purchase agreement for the sale of the 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 comprised the entirety of the Company’s Pipeline segment. As a result of EWW and the Pipeline Asset’s classification as discontinued operations, their results have been included in Corporate & Other segment for all periods presented. The Company will receive approximately $15.8 million for the sale of EWW and approximately $1.2 million for the sale of the Pipeline Assets. These amounts are subject to adjustments based upon the working capital on the closing of the transaction and any amendments to the disclosure schedules to the agreement that result in losses to EWW or the Pipeline Assets. The agreements contain customary representations, warranties, covenants and indemnification provisions. The consummation of the transactions depend upon the satisfaction or waiver of a number of customary closing conditions, the receipt of regulatory approvals and the consent of certain of the Company’s lenders. In addition, Cheyenne and Black Hills have the right to terminate the agreements in the event that the amendments to the disclosure schedules to the purchase agreements are reasonably likely to result in losses to EWW and the Pipeline Assets, collectively, in excess of $750,000. The Company expects to close the transactions sometime in the second or third quarter of 2015.

Upon completion of the transactions, the Company’s 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 have been eliminated through the consolidation process.

Independence

On November 6, 2013, the Company closed on the sale of Independence to Blue Ridge Energies, LLC (“Blue Ridge”) for a total of $2.3 million. The Company recorded a loss on sale of $7,915 in the fourth quarter of 2013. The results of operations and financial position for Independence have been reclassified to the discontinued operations sections of the Company’s consolidated financial statements. Independence was the Company’s only subsidiary included in its Propane segment. As a result of its classification as discontinued operations, its results have been included in Corporate & Other segment for all periods presented. The Company has no material continuing cash flows or other contractual obligations associated with this sales transaction.