Segments of Operation

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segments of Operations

Note 23 – Segments of Operation

The Company classifies its segments to provide investors with a view of the business through management’s eyes. The Company primarily separates its state regulated utility businesses from non-regulated marketing and production businesses, and its corporate level operations. See Note 4 – Discontinued Operations for more information regarding the Company’s previously reported Pipeline and Propane segments. The Company has regulated natural gas utility businesses in the states of Kentucky, Maine, Montana, North Carolina, Ohio, and Pennsylvania that form the Company’s Natural Gas segment. The Company has non-regulated natural gas marketing and production businesses in Montana and Ohio that together form the Company’s Marketing & Production segment. The Company’s Lone Wolf subsidiary, its holding company, and the Company’s discontinued operations together form its Corporate & Other segment. Transactions between reportable segments are accounted for on an 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 & Production, and Corporate & Other operating segments.

Year Ended December 31, 2014	Natural Gas		Marketing & Production		Corporate & Other		Consolidated
OPERATING REVENUES	$	123,378,718	$	17,605,367	$	-	$	140,984,085
Intersegment eliminations		(326,164)		(8,088,080)		-		(8,414,244)
Total operating revenue		123,052,554		9,517,287		-		132,569,841
COST OF SALES		79,422,717		16,708,906		-		96,131,623
Intersegment eliminations		(326,164)		(8,088,080)		-		(8,414,244)
Total cost of sales		79,096,553		8,620,826		-		87,717,379
GROSS MARGIN		43,956,001		896,461		-		44,852,462
OPERATING EXPENSES
Distribution, general and administrative		20,975,963		1,833,476		3,175,197		25,984,636
Maintenance		1,224,998		493		-		1,225,491
Depreciation and amortization		6,070,669		514,654		19,246		6,604,569
Accretion		6,856		44,610		-		51,466
Taxes other than income		3,898,337		23,367		6,314		3,928,018
Unrealized holding loss		-		62,000		-		62,000
Intersegment eliminations		(102,898)		-		-		(102,898)
Total operating expenses		32,073,925		2,478,600		3,200,757		37,753,282
OPERATING INCOME (LOSS)		11,882,076		(1,582,139)		(3,200,757)		7,099,180
Other income (expense)		889,873		(502,367)		16,158		403,664
Interest expense		(2,619,294)		(121,041)		(485,761)		(3,226,096)
Income (loss) before taxes		10,152,655		(2,205,547)		(3,670,360)		4,276,748
Income tax benefit (expense)		(3,661,125)		771,844		1,341,699		(1,547,582)
INCOME (LOSS) FROM CONTINUING OPERATIONS		6,491,530		(1,433,703)		(2,328,661)		2,729,166
Discontinued operations, net of income tax		-		-		1,032,611		1,032,611
NET INCOME (LOSS)	$	6,491,530	$	(1,433,703)	$	(1,296,050)	$	3,761,777
Capital expenditures	$	21,530,449	$	60,415	$	21,816	$	21,612,680

Year Ended December 31, 2013	Natural Gas		Marketing & Production		Corporate & Other		Consolidated
OPERATING REVENUES	$	97,259,443	$	20,260,001	$	-	$	117,519,444
Intersegment eliminations		(26,331)		(8,092,760)		-		(8,119,091)
Total operating revenue		97,233,112		12,167,241		-		109,400,353
COST OF SALES		56,003,485		18,145,625		-		74,149,110
Intersegment eliminations		(26,331)		(8,092,760)		-		(8,119,091)
Total cost of sales		55,977,154		10,052,865		-		66,030,019
GROSS MARGIN		41,255,958		2,114,376		-		43,370,334
OPERATING EXPENSES
Distribution, general and administrative		19,560,991		801,305		1,770,564		22,132,860
Maintenance		1,139,496		2,765		-		1,142,261
Depreciation and amortization		5,081,293		456,790		12,670		5,550,753
Accretion		7,068		50,844		-		57,912
Unrealized holding gain		-		(1,565,000)		-		(1,565,000)
Goodwill impairment		-		725,744		-		725,744
Taxes other than income		3,619,304		28,113		24,513		3,671,930
Intersegment eliminations		(13,744)		-		(84,090)		(97,834)
Total operating expenses		29,394,408		500,561		1,723,657		31,618,626
OPERATING INCOME (LOSS)		11,861,550		1,613,815		(1,723,657)		11,751,708
Other income (expense)		767,235		151,168		(618,104)		300,299
Interest expense		(2,566,310)		(142,031)		(467,814)		(3,176,155)
Income (loss) before taxes		10,062,475		1,622,952		(2,809,575)		8,875,852
Income tax benefit (expense)		(3,242,814)		(586,326)		805,429		(3,023,711)
INCOME (LOSS) FROM CONTINUING OPERATIONS		6,819,661		1,036,626		(2,004,146)		5,852,141
Discontinued operations, net of income tax		-		-		819,138		819,138
NET INCOME (LOSS)	$	6,819,661	$	1,036,626	$	(1,185,008)	$	6,671,279
Capital expenditures	$	23,241,913	$	217,201	$	57,809	$	23,516,923

			Marketing &		Corporate &
Year Ended December 31, 2012	Natural Gas		Production		Other		Consolidated
OPERATING REVENUES	$	73,925,318	$	13,417,723	$	-	$	87,343,041
Intersegment eliminations		(24,837)		(5,924,362)		-		(5,949,199)
Total operating revenue		73,900,481		7,493,361		-		81,393,842
COST OF SALES		38,577,444		11,877,518		-		50,454,962
Intersegment eliminations		(24,837)		(5,924,362)		-		(5,949,199)
Total cost of sales		38,552,607		5,953,156		-		44,505,763
GROSS MARGIN	$	35,347,874	$	1,540,205	$	-	$	36,888,079
OPERATING EXPENSES
Distribution, general and administrative		17,904,439		449,665		1,109,677		19,463,781
Maintenance		994,058		1,014		-		995,072
Depreciation and amortization		4,034,452		268,202		34,542		4,337,196
Accretion		113,106		48,192		-		161,298
Taxes other than income		3,110,909		38,052		39,110		3,188,071
Total operating expenses		26,156,964		805,125		1,183,329		28,145,418
OPERATING INCOME (LOSS)	$	9,190,910	$	735,080	$	(1,183,329)	$	8,742,661
Other income (expense)		346,048		(6,051)		(1,230,651)		(890,654)
Interest expense		(2,198,888)		(133,440)		(367,391)		(2,699,719)
Income (loss) before taxes		7,338,070		595,589		(2,781,371)		5,152,288
Income tax benefit (expense)		(2,869,083)		4,542		907,742		(1,956,799)
INCOME (LOSS) FROM CONTINUING OPERATIONS	$	4,468,987	$	600,131	$	(1,873,629)	$	3,195,489
Discontinued operations, net of income tax		-		-		523,829		523,829
NET INCOME (LOSS)	$	4,468,987	$	600,131	$	(1,349,800)	$	3,719,318
Capital expenditures	$	17,686,583	$	1,393,040	$	856,359	$	19,935,982

			Marketing &
	Natural Gas		Produrction		Corporate & Other
	Operations		Operations		Operations		Consolidated
December 31, 2014
Investment in unconsolidated affiliate	$	-	$	-	$	-	$	-
Total assets	$	214,030,368	$	9,192,830	$	100,781,302	$	324,004,500
Intersegment eliminations		(68,714,744)		(2,714,405)		(38,571,439)		(110,000,588)
Total assets	$	145,315,624	$	6,478,425	$	62,209,863	$	214,003,912
December 31, 2013
Investment in unconsolidated affiliate	$	-	$	351,724	$	-	$	351,724
Total assets	$	184,085,665	$	11,633,544	$	94,981,858	$	290,701,067
Intersegment eliminations		(53,772,095)		(3,678,311)		(29,518,864)		(86,969,270)
Total assets	$	130,313,570	$	7,955,233	$	65,462,994	$	203,731,797