4. Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Business segment reporting

Business segment information for the three months ended September 30, 2015 and 2014 (and at September 30, 2015 and 2014), was as follows:

	Three Months Ended September 30, 2015												Three Months Ended September 30, 2014
	Segment												Segment
	Refinery			Pipeline			Corporate &						Refinery			Pipeline			Corporate &
	Operations			Transportation			Other			Total			Operations			Transportation			Other			Total
Revenue from operations	$	55,210,962		$	45,925		$	-		$	55,256,887		$	88,129,273		$	56,900		$	-		$	88,186,173
Less: cost of operations(1)		(51,444,705	)		(114,675	)		(236,816	)		(51,796,196	)		(85,261,533	)		(110,872	)		(274,674	)		(85,647,079	)
Other non-interest income(2)		-			62,500			660,000			722,500			-			-			-			-
Adjusted EBITDA		3,766,257			(6,250	)		423,184			4,183,191			2,867,740			(53,972	)		(274,674	)		2,539,094
Less:  JMA Profit Share(3)		(1,435,376	)		-			-			(1,435,376	)		(1,094,383	)		-			-			(1,094,383	)
EBITDA	$	2,330,881		$	(6,250	)	$	423,184					$	1,773,357		$	(53,972	)	$	(274,674	)
Depletion, depreciation and amortization											(414,837	)											(393,871	)
Interest expense, net											(380,342	)											(212,594	)
Income before income taxes											1,952,636												838,246
Income tax expense											(688,403	)											(22,199	)
Net income										$	1,264,233											$	816,047
Capital expenditures	$	3,640,801		$	-		$	-		$	3,640,801		$	815,849		$	-		$	-		$	815,849
Identifiable assets(4)	$	79,442,106		$	3,303,803		$	3,405,977		$	86,151,886		$	57,520,835		$	2,998,619		$	523,533		$	61,042,987

(1)	Operation cost within the Refinery Operations and Pipeline Transportation segments includes related general, administrative, and accretion expenses.  Operation cost within Corporate and Other includes general and administrative expenses associated with corporate maintenance costs, such as accounting fees, director fees, and legal expense.
(2)	Other non-interest income reflects FLNG easement revenue and the Grynberg Settlement Agreement.  See “Part 1, Item 1. Financial Statements - Note (21) Commitments and Contingencies – FLNG Master Easement Agreement and Grynberg Settlement Agreement” of this report for further discussion related to FLNG and Grynberg.
(3)	The Joint Marketing Agreement profit share (the “JMA Profit Share”) represents the GEL Profit Share plus the Performance Fee for the period pursuant to the Joint Marketing Agreement.  See “Note (21) Commitments and Contingencies – Genesis Agreements” and “Part 1, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Relationship with Genesis” of this report for further discussion related to the Joint Marketing Agreement.
(4)	Identifiable assets contain related legal obligations of each business segment including cash, accounts receivable, and recorded net assets.

Business segment information for the nine months ended September 30, 2015 and 2014 (and at September 30, 2015 and 2014), was as follows:

	Nine Months Ended September 30, 2015												Nine Months Ended September 30, 2014
	Segment												Segment
	Refinery			Pipeline			Corporate &						Refinery			Pipeline			Corporate &
	Operations			Transportation			Other			Total			Operations			Transportation			Other			Total
Revenue from operations	$	175,690,968		$	119,882		$	-		$	175,810,850		$	311,786,529		$	178,793		$	-		$	311,965,322
Less: cost of operations(1)		(160,208,576	)		(296,291	)		(928,331	)		(161,433,198	)		(297,956,882	)		(355,645	)		(973,154	)		(299,285,681	)
Other non-interest income(2)		-			187,500			660,000			847,500			-			208,333			-			208,333
Adjusted EBITDA		15,482,392			11,091			(268,331	)		15,225,152			13,829,647			31,481			(973,154	)		12,887,974
Less: JMA Profit Share(3)		(4,812,674	)		-			-			(4,812,674	)		(2,334,487	)		-			-			(2,334,487	)
EBITDA	$	10,669,718		$	11,091		$	(268,331	)				$	11,495,160		$	31,481		$	(973,154	)
Depletion, depreciation and amortization											(1,217,005	)											(1,175,643	)
Interest expense, net											(1,313,247	)											(630,175	)
Income before income taxes											7,882,226												8,747,669
Income tax expense											(2,778,750	)											(298,792	)
Net income										$	5,103,476											$	8,448,877
Capital expenditures	$	9,900,295		$	-		$	-		$	9,900,295		$	1,145,720		$	-		$	-		$	1,145,720
Identifiable assets(4)	$	79,442,106		$	3,303,803		$	3,405,977		$	86,151,886		$	57,520,835		$	2,998,619		$	523,533		$	61,042,987

(1)	Operation cost within the Refinery Operations and Pipeline Transportation segments includes related general, administrative, and accretion expenses.  Operation cost within Corporate and Other includes general and administrative expenses associated with corporate maintenance costs, such as accounting fees, director fees, and legal expense.
(2)	Other non-interest income reflects FLNG easement revenue and the Grynberg Settlement Agreement.  See “Part 1, Item 1. Financial Statements - Note (21) Commitments and Contingencies – FLNG Master Easement Agreement and Grynberg Settlement Agreement” of this report for further discussion related to FLNG and Grynberg.
(3)	The JMA Profit Share represents the GEL Profit Share plus the Performance Fee for the period pursuant to the Joint Marketing Agreement.  See “Note (21) Commitments and Contingencies – Genesis Agreements” and “Part 1, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Relationship with Genesis” of this report for further discussion related to the Joint Marketing Agreement.
(4)	Identifiable assets contain related legal obligations of each business segment including cash, accounts receivable, and recorded net assets.