4. Business Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Business Segment Information

We have two reportable business segments: (i) “Refinery Operations” and (ii) “Pipeline Transportation.”  Business activities related to our “Refinery Operations” business segment are conducted at the Nixon Facility.  Business activities related to our “Pipeline Transportation” business segment are primarily conducted in the U.S. Gulf of Mexico through our Pipeline Assets and leasehold interests in oil and gas properties.

Segment financials for the three months ended September 30, 2014 (and at September 30, 2014) were as follows:

	Three Months Ended September 30, 2014
	Refinery			Pipeline			Corporate &
	Operations			Transportation			Other			Total
Revenues	$	87,846,757		$	56,900		$	-		$	87,903,657
Operation cost(1)(2)(3)		(86,355,916	)		(110,872	)		(274,674	)		(86,741,462	)
Other non-interest income		282,516			-			-			282,516
EBITDA	$	1,773,357		$	(53,972	)	$	(274,674	)
Depletion, depreciation and amortization											(393,871	)
Interest expense, net											(212,594	)
Income before income taxes										$	838,246
Capital expenditures	$	815,849		$	-		$	-		$	815,849
Identifiable assets(4)	$	57,520,835		$	2,998,619		$	523,533		$	61,042,987

(1)	“Refinery Operations” and “Pipeline Transportation” include an allocation of general and administrative expenses based on respective revenue.
(2)	“Refinery Operations” includes the effect of economic hedges on our refined petroleum products and crude oil inventory. Cost of refined products sold within operation cost includes a realized gain of $466,821 and an unrealized loss of $70,550.
(3)	“Corporate and Other” includes general and administrative expenses associated with corporate maintenance costs, such as accounting fees, director fees and legal expense.
(4)	Identifiable assets contain related legal obligations of each business segment including cash, accounts receivable and recorded net assets.

Segment financials for the three months ended September 30, 2013 (and at September 30, 2013) were as follows:

	Three Months Ended September 30, 2013
	Segment
	Refinery			Pipeline			Corporate &
	Operations			Transportation			Other			Total
Revenues	$	106,541,284		$	79,109		$	-		$	106,620,393
Less:  Operation cost(1)(2)(3)		(107,961,900	)		(114,105	)		(340,612	)		(108,416,617	)
Other non-interest income		278,349			-			-			278,349
EBITDA	$	(1,142,267	)	$	(34,996	)	$	(340,612	)
Depletion, depreciation and amortization											(337,156	)
Interest expense, net											(225,706	)
Loss before income taxes										$	(2,080,737	)
Capital expenditures	$	356,889		$	-		$	-		$	356,889
Identifiable assets(4)	$	48,925,380		$	1,569,005		$	844,334		$	51,338,719

(1)	“Refinery Operations” and “Pipeline Transportation” include an allocation of general and administrative expenses based on respective revenue.
(2)	“Refinery Operations” includes the effect of economic hedges on our refined petroleum products and crude oil inventory.  Cost of refined products sold within operation cost includes a realized loss of $378,899 and an unrealized gain of $81,720.
(3)	“Corporate and Other” includes general and administrative expenses associated with corporate maintenance costs, such as accounting fees, director fees and legal expense.
(4)	Identifiable assets contain related legal obligations of each business segment including cash, accounts receivable and recorded net assets.

Segment financials for the nine months ended September 30, 2014 (and at September 30, 2014) were as follows:

	Nine Months Ended September 30, 2014
	Segment
	Refinery			Pipeline			Corporate &
	Operations			Transportation			Other			Total
Revenues	$	310,938,981		$	178,793		$	-		$	311,117,774
Operation cost(1)(2)(3)		(300,291,370	)		(355,645	)		(973,154	)		(301,620,169	)
Other non-interest income		847,549			208,333			-			1,055,882
EBITDA	$	11,495,160		$	31,481		$	(973,154	)
Depletion, depreciation and amortization											(1,175,643	)
Interest expense, net											(630,175	)
Income before income taxes										$	8,747,669
Capital expenditures	$	1,145,720		$	-		$	-		$	1,145,720
Identifiable assets(4)	$	57,520,835		$	2,998,619		$	523,533		$	61,042,987

(1)	“Refinery Operations” and “Pipeline Transportation” include an allocation of general and administrative expenses based on respective revenue.
(2)	“Refinery Operations” includes the effect of economic hedges on our refined petroleum products and crude oil inventory. Cost of refined products sold within operation cost includes a realized gain of $13,712 and an unrealized loss of $26,150.
(3)	“Corporate and Other” includes general and administrative expenses associated with corporate maintenance costs, such as accounting fees, director fees and legal expense.
(4)	Identifiable assets contain related legal obligations of each business segment including cash, accounts receivable and recorded net assets.

Segment financials for the nine months ended September 30, 2013 (and at September 30, 2013) were as follows:

	Nine Months Ended September 30, 2013
	Segment
	Refinery			Pipeline			Corporate &
	Operations			Transportation			Other			Total
Revenues	$	320,025,559		$	229,362		$	-		$	320,254,921
Operation cost(1)(2)(3)		(325,625,984	)		(433,065	)		(1,198,664	)		(327,257,713	)
Other non-interest income		835,048			-			-			835,048
EBITDA	$	(4,765,377	)	$	(203,703	)	$	(1,198,664	)
Depletion, depreciation and amortization											(997,671	)
Interest expense, net											(785,663	)
Loss before income taxes										$	(7,951,078	)
Capital expenditures	$	1,244,859		$	-		$	-		$	1,244,859
Identifiable assets(4)	$	48,925,380		$	1,569,005		$	844,334		$	51,338,719

(1)	“Refinery Operations” and “Pipeline Transportation” include an allocation of general and administrative expenses based on respective revenue.
(2)	“Refinery Operations” includes the effect of economic hedges on our refined petroleum products and crude oil inventory.  Cost of refined products sold within operation cost includes a realized loss of $627,340 and an unrealized gain of $297,020.
(3)	“Corporate and Other” includes general and administrative expenses associated with corporate maintenance costs, such as accounting fees, director fees and legal expense.
(4)	Identifiable assets contain related legal obligations of each business segment including cash, accounts receivable and recorded net assets.