Business Segment Information

9 Months Ended

Sep. 30, 2011

Business Segment Information [Abstract]

Business Segment Information

(3) Business Segment Information

Our operations are conducted in two principal business segments: (i) pipeline transportation services and (ii) oil and gas exploration and production. The business segments are managed jointly primarily due to the size of our employee base and the scope of our operations. Management uses earnings before interest expense and income taxes (“EBIT”), a non-GAAP financial measure, to assess the operating results and effectiveness of our business segments, which consist of our consolidated businesses and investments. We believe EBIT is useful to our investors because it allows them to evaluate our operating performance using the same performance measure analyzed internally by management. EBIT is adjusted for: (i) items that do not impact our income or loss from continuing operations, such as the impact of accounting changes, (ii) income taxes and (iii) interest expense (or income). We exclude interest expense (or income) and other expenses or income not pertaining to the operations of our segments from this measure so that investors may evaluate our current operating results without regard to our financing methods or capital structure. We understand that EBIT may not be comparable to measurements used by other companies. Additionally, EBIT should be considered in conjunction with net income (loss) and other performance measures such as operating cash flows.

Following is a reconciliation of our EBIT (by business segment) for the three months ended September 30, 2011, and at September 30, 2011:

	Three Months Ended September 30, 2011
	Segment
			Oil and Gas
	Pipeline		Exploration &			Corporate &
	Transportation		Production			Other(1)			Total
Revenues	$	219,006	$	301,418		$	—		$	520,424
Operation cost(2)		641,004		399,174			105,565			1,145,743
Depletion, depreciation and amortization		90,254		32,445			656			123,355
Gain on sale of property and equipment		3,267,070		—			—			3,267,070
EBIT	$	2,754,818	$	(130,202	)	$	(106,220	)	$	2,518,396
Capital expenditures	$	8,105	$	130,704		$	53,561		$	192,370
Identifiable assets(3)	$	5,151,988	$	1,788,678		$	373,550		$	7,314,216

(1)	Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses). It also includes as identifiable assets corporate available cash of approximately $57,000
(2)	Allocable general and administrative costs are allocated based on revenue.
(3)	Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.

Following is a reconciliation of our EBIT (by business segment) for the three months ended September 30, 2010, and at September 30, 2010:

	Three Months Ended September 30, 2010
	Segment
			Oil and Gas
	Pipeline		Exploration &			Corporate &
	Transportation		Production			Other(1)		Total
Revenues	$	502,369	$	237,940		$	—	$	740,309
Operation cost(2)		333,715		335,987			131,699		801,401
Depletion, depreciation and amortization		105,043		110,881			1,181		217,105
Recovery on previous allowance for doubtful loan receivable		—		—			201,000		201,000
EBIT	$	63,611	$	(208,928	)	$	68,120	$	(77,197	)
Capital expenditures	$	—	$	1,135,802		$	201,000	$	1,336,802
Identifiable assets(3)	$	4,123,478	$	1,257,593		$	363,935	$	5,745,006

(1)	Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses). It also includes as identifiable assets corporate available cash of $0.4 million.
(2)	Allocable general and administrative costs are allocated based on revenue.
(3)	Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.

Following is a reconciliation of our EBIT (by business segment) for the nine months ended September 30, 2011, and at September 30, 2011:

	Nine Months Ended September 30, 2011
	Segment
			Oil and Gas
	Pipeline		Exploration &			Corporate &
	Transportation		Production			Other(1)			Total
Revenues	$	829,011	$	1,004,148		$	—		$	1,833,159
Operation cost(2)		1,446,655		1,255,077			329,370			3,031,102
Depletion, depreciation and amortization		292,745		111,627			2,519			406,891
Gain on sale of property and equipment		3,267,070		—			—			3,267,070
EBIT	$	2,356,681	$	(362,556	)	$	(331,889	)	$	1,662,236
Capital expenditures	$	8,105	$	154,506		$	53,561		$	216,172
Identifiable assets(3)	$	5,151,988	$	1,788,678		$	373,550		$	7,314,216

(1)	Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses). It also includes as identifiable assets corporate available cash of approximately $57,000.
(2)	Allocable general and administrative costs are allocated based on revenue.
(3)	Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.

Following is a reconciliation of our EBIT (by business segment) for the nine months ended September 30, 2010, and at September 30, 2010:

	Nine Months Ended September 30, 2010
	Segment
				Oil and Gas
	Pipeline			Exploration &			Corporate &
	Transportation			Production			Other(1)			Total
Revenues	$	1,393,848		$	278,161		$	—		$	1,672,009
Operation cost(2)		1,657,109			395,032			340,707			2,392,848
Depletion, depreciation and amortization		315,128			144,729			3,949			463,806
Recovery on previous allowance for doubtful loan receivable		—			—			201,000			201,000
EBIT	$	(578,389	)	$	(261,600	)	$	(143,656	)	$	(983,645	)
Capital expenditures	$	—		$	1,135,802		$	201,000		$	1,336,802
Identifiable assets(3)	$	4,123,478		$	1,257,593		$	363,935		$	5,745,006

(1)	Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses). It also includes as identifiable assets corporate available cash of $0.4 million.
(2)	Allocable general and administrative costs are allocated based on revenue.
(3)	Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.