Discontinued Operations

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 2 – 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 Condensed Consolidated Balance Sheet.

	September 30, 2015						December 31, 2014
	EWW/Pipelines		Independence		Total		EWW/Pipelines		Independence		Total
Current Assets:
Cash and cash equivalents	$	-	$	-	$	-	$	257,358	$	-	$	257,358
Accounts receivable, net		-		-		-		1,002,763		155		1,002,918
Unbilled gas		-		-		-		735,122		-		735,122
Inventory		-		-		-		181,197		-		181,197
Prepayments and other		-		-		-		71,101		-		71,101
Regulatory assets, current		-		-		-		250,031		-		250,031
Total current assets		-		-		-		2,497,572		155		2,497,727
Non-Current Assets:
Property, plant & equipment, net		-		-		-		8,966,965		-		8,966,965
Regulatory assets, non-current		-		-		-		155,826		-		155,826
Other assets		-		-		-		33,416		-		33,416
Total non-current assets		-		-		-		9,156,207		-		9,156,207
Total discontinued assets	$	-	$	-	$	-	$	11,653,779	$	155	$	11,653,934
Current Liabilities:
Accounts payable	$	-	$	20,139	$	20,139	$	28,578	$	1,079	$	29,657
Accrued liabilities		-		-		-		334,664		-		334,664
Other current liabilities		-		-		-		123,318		16,000		139,318
Total current liabilities		-		20,139		20,139		486,560		17,079		503,639
Non-Current Liabilities:
Customer advances for construction		-		-		-		40,793		-		40,793
Total discontinued liabilities	$	-	$	20,139	$	20,139	$	527,353	$	17,079	$	544,432

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 Condensed Consolidated Statements of Comprehensive Income.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
EWW/Pipeline assets
Revenues	$	-	$	1,741,491	$	4,608,504	$	7,185,277
Cost of sales		-		(1,047,877)		(2,533,836)		(4,204,071)
Distribution, general & administrative		-		(345,758)		(779,610)		(1,129,945)
Maintenance		-		(42,372)		(80,708)		(130,788)
Depreciation & amortization		-		(178,554)		-		(541,777)
Taxes other than income		-		(62,236)		(168,588)		(233,612)
Other income		-		6,307		7,263		22,571
Interest expense		1,598		971		634		(281)
Pretax income from discontinued operations		1,598		71,972		1,053,659		967,374
Gain on the sale of EWW/Pipeline Assets		5,366,271		-		5,366,271		-
Income tax expense		(1,960,882)		(20,465)		(2,345,201)		(346,660)
Income from discontinued operations of EWW/Pipeline assets	$	3,406,987	$	51,507	$	4,074,729	$	620,714
Independence
(Loss) from discontinued operations of Independence		(12,006)		(16,682)		(29,953)		(39,062)
Discontinued operations, net of tax	$	3,394,981	$	34,825	$	4,044,776	$	581,652

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 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. On July 1, 2015, the transaction was completed and the Company received $14.6 million for the sale of EWW and $1.2 million for the sale of the Pipeline Assets.

The Company’s subsidiary, EWR, continues to conduct some business with both EWW and Black Hills relating to the Pipeline Assets. EWW continues to purchase natural gas from EWR under an established gas purchase agreement through the first quarter of 2017. Concurrently, EWR continues to use EWW’s transmission system under a standing transportation agreement through the first quarter of 2017. Finally, EWR continues 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 of 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.