Operating Segments

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segments of Operations

Note 13 – Operating Segments

The Company’s reportable segments are those that are based on the Company’s method of internal reporting, which generally segregates the strategic business units due to differences in services and regulation. The internal reporting of these operating segments is defined based on the reporting and review process used by the Company’s chief operating officer. The Company primarily separates its state regulated utility businesses from the non-regulated marketing & production business. 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 & 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 operations.

Three Months Ended June 30, 2015
	Natural Gas		Marketing &		Corporate &
	Operations		Production		Other		Consolidated
OPERATING REVENUES	$	14,846,487	$	2,404,029	$	-	$	17,250,516
Intersegment elimination		(78,704)		(1,125,730)		-		(1,204,434)
Total operating revenue		14,767,783		1,278,299		-		16,046,082
COST OF SALES		7,552,789		2,197,299		-		9,750,088
Intersegment elimination		(78,704)		(1,125,730)		-		(1,204,434)
Total cost of sales		7,474,085		1,071,569		-		8,545,654
GROSS MARGIN	$	7,293,698	$	206,730	$	-	$	7,500,428
OPERATING EXPENSES		8,232,263		222,141		949,182		9,403,586
Intersegment elimination		(26,345)		-		-		(26,345)
Total operating expenses		8,205,918		222,141		949,182		9,377,241
OPERATING INCOME (LOSS)	$	(912,220)	$	(15,411)	$	(949,182)	$	(1,876,813)
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	$	(868,587)	$	(21,636)	$	(821,851)	$	(1,712,074)
DISCONTINUED OPERATIONS	$	-	$	-	$	212,879	$	212,879
NET INCOME (LOSS)	$	(868,587)	$	(21,636)	$	(608,972)	$	(1,499,195)

Three Months Ended June 30, 2014
	Natural Gas		Marketing &		Corporate &
	Operations		Production		Other		Consolidated
OPERATING REVENUES	$	19,055,806	$	3,071,792	$	-	$	22,127,598
Intersegment elimination		(78,801)		(1,548,878)		-		(1,627,679)
Total operating revenue		18,977,005		1,522,914		-		20,499,919
COST OF SALES		10,750,435		2,985,036		-		13,735,471
Intersegment elimination		(78,801)		(1,548,878)		-		(1,627,679)
Total cost of sales		10,671,634		1,436,158		-		12,107,792
GROSS MARGIN	$	8,305,371	$	86,756	$	-	$	8,392,127
OPERATING EXPENSES		8,334,948		1,401,544		420,429		10,156,921
Intersegment elimination		(500)		-		(25,245)		(25,745)
Total operating expenses		8,334,448		1,401,544		395,184		10,131,176
OPERATING INCOME (LOSS)	$	(29,077)	$	(1,314,788)	$	(395,184)	$	(1,739,049)
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	$	(317,705)	$	(849,438)	$	(326,356)	$	(1,493,499)
DISCONTINUED OPERATIONS	$	-	$	-	$	64,881	$	64,881
NET INCOME (LOSS)	$	(317,705)	$	(849,438)	$	(261,475)	$	(1,428,618)

Six Months Ended June 30, 2015
	Natural Gas		Marketing &		Corporate &
	Operations		Production		Other		Consolidated
OPERATING REVENUES	$	66,213,374	$	7,030,500	$	-	$	73,243,874
Intersegment elimination		(165,861)		(3,298,970)		-		(3,464,831)
Total operating revenue		66,047,513		3,731,530		-		69,779,043
COST OF SALES		41,501,299		6,677,428		-		48,178,727
Intersegment elimination		(165,861)		(3,298,970)		-		(3,464,831)
Total cost of sales		41,335,438		3,378,458		-		44,713,896
GROSS MARGIN	$	24,712,075	$	353,072	$	-	$	25,065,147
OPERATING EXPENSES		17,046,186		454,897		1,828,077		19,329,160
Intersegment elimination		(62,030)		-		-		(62,030)
Total operating expenses		16,984,156		454,897		1,828,077		19,267,130
OPERATING INCOME (LOSS)	$	7,727,919	$	(101,825)	$	(1,828,077)	$	5,798,017
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	$	4,244,773	$	(17,995)	$	(1,522,095)	$	2,704,683
DISCONTINUED OPERATIONS	$	-	$	-	$	649,795	$	649,795
NET INCOME (LOSS)	$	4,244,773	$	(17,995)	$	(872,300)	$	3,354,478

Six Months Ended June 30, 2014
	Natural Gas		Marketing &		Corporate &
	Operations		Production		Other		Consolidated
OPERATING REVENUES	$	75,949,713	$	11,001,565	$	-	$	86,951,278
Intersegment elimination		(165,345)		(4,789,295)		-		(4,954,640)
Total operating revenue		75,784,368		6,212,270		-		81,996,638
COST OF SALES		50,683,583		10,466,418		-		61,150,001
Intersegment elimination		(165,345)		(4,789,295)		-		(4,954,640)
Total cost of sales		50,518,238		5,677,123		-		56,195,361
GROSS MARGIN	$	25,266,130	$	535,147	$	-	$	25,801,277
OPERATING EXPENSES		16,154,832		1,784,002		1,641,835		19,580,669
Intersegment elimination		(500)		-		(50,490)		(50,990)
Total operating expenses		16,154,332		1,784,002		1,591,345		19,529,679
OPERATING INCOME (LOSS)	$	9,111,798	$	(1,248,855)	$	(1,591,345)	$	6,271,598
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	$	5,069,598	$	(828,637)	$	(1,197,915)	$	3,043,046
DISCONTINUED OPERATIONS	$	-	$	-	$	546,827	$	546,827
NET INCOME (LOSS)	$	5,069,598	$	(828,637)	$	(651,088)	$	3,589,873

The following table presents the Company’s assets by reportable segments:

	Natural Gas Operations		Marketing & Production Operations		Corporate & Other Operations		Consolidated
June 30, 2015
Goodwill	$	14,496,247	$	1,376,000	$	-	$	15,872,247
Total assets	$	202,691,167	$	7,607,996	$	92,937,648	$	303,236,811
Intersegment eliminations		(64,603,706)		(3,114,626)		(34,267,501)		(101,985,833)
Total assets	$	138,087,461	$	4,493,370	$	58,670,147	$	201,250,978
December 31, 2014
Goodwill	$	14,779,672	$	1,376,000	$	-	$	16,155,672
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