Gas Natural Reports Results for Second Quarter 2014
Gross margin grows 13% to $9.2 million, driven by continued customer expansion in Maine, North Carolina and Ohio
MENTOR, Ohio, Aug. 14, 2014 /PRNewswire/ -- Gas Natural Inc. (NYSE MKT: EGAS) ("Gas Natural" or the "Company"), a holding company operating local natural gas utility companies serving approximately 73,000 natural gas customers in seven states, reported financial results for the second quarter ended June 30, 2014.
Net loss was $1.4 million, or $0.14 loss per diluted share, for the 2014 second quarter compared with net loss of $0.3 million or $0.04 loss per diluted share, for the quarter ended June 30, 2013. Included in net loss was $1.1 million in uncollectible accounts expense related to a customer's bankruptcy proceeding. On an after tax basis the impact was $0.7 million or $0.06 per diluted share. On a year-to-date basis, net income for the first half of 2014 was $3.6 million, or $0.34 per diluted share, compared with $4.5 million, or $0.53 per diluted share, for last year's first half.
Mr. Gregory J. Osborne, Gas Natural's President and Chief Executive Officer commented, "During the quarter, the return on our commitment to customer expansion continued, resulting in a 13% increase in gross margin. While our net income was impacted by expenses for professional fees and the $1.1 million charge for uncollectible accounts in our marketing and production segment, we believe the operating returns on our investments in infrastructure support our growth strategy."
Natural Gas Operations Segment
The Natural Gas Operations segment reported strong year-over-year revenue growth. Revenue in the 2014 quarter from the Company's Maine and North Carolina markets increased by $1.3 million and revenue from the Ohio market increased $0.4 million compared with the prior-year period. Increases in these markets were driven by higher natural gas prices passed on to customers as well and customer growth. There were approximately 73,000 customers at the end of the second quarter, up from approximately 72,000 at the end of 2013. Maine and North Carolina markets throughput increased 89 MMcf volume to 1,575 MMcf, while the Ohio market was up 49 MMcf to 519 MMcf. Revenue from Gas Natural's Montana and Wyoming markets increased $1.3 million compared with the prior-year second quarter, driven by higher prices for natural gas passed through to customers. For the first half of 2014, revenue increased 40% to $81.0 million, driven by those same factors.
| Natural Gas Operations Income Statement |
||||||||
| ($ in thousands) |
Three Months Ended |
Six Months Ended |
||||||
| June 30, |
June 30, |
|||||||
| 2014 |
2013 |
2014 |
2013 |
|||||
| Natural Gas Operations |
||||||||
| Operating revenue |
$ 20,777 |
$ 17,746 |
$ 81,031 |
$ 57,691 |
||||
| Gas purchased |
11,719 |
10,049 |
53,674 |
34,166 |
||||
| Gross margin |
9,058 |
7,697 |
27,357 |
23,525 |
||||
| Operating expenses |
9,188 |
7,633 |
17,791 |
15,210 |
||||
| Operating (loss) income |
(130) |
64 |
9,566 |
8,315 |
||||
| Other income |
205 |
259 |
317 |
298 |
||||
| Income before interest and taxes |
75 |
323 |
9,883 |
8,613 |
||||
| Interest expense |
(699) |
(698) |
(1,443) |
(1,416) |
||||
| Income before income taxes |
(624) |
(375) |
8,440 |
7,197 |
||||
| Income tax expense |
214 |
139 |
(3,157) |
(2,722) |
||||
| Net (loss) income |
$ (410) |
$ (236) |
$ 5,283 |
$ 4,475 |
||||
Gross margin was $9.1 million for the quarter compared with $7.7 million last year, driven primarily by increased customer growth in Maine, North Carolina and Ohio. On a year-to-date basis, gross margin increased $3.8 million to $27.4 million, also driven by customer growth and colder than average weather in the first quarter of 2014.
The increase in operating expenses for the quarter reflects a $1.0 million increase in professional fees related to increased regulatory proceedings and investments in personnel to support improved processes and controls. Also, depreciation expense increased $0.3 million as a result of increased capital expenditure investments. The segment reported a second quarter 2014 net loss of $0.4 million compared with a net loss of $0.2 million in the 2013 quarter. For the first half of 2014, the segment reported $5.3 million of net income, a $0.8 million, or 18%, increase over the first half of 2013.
Marketing and Production Operations Segment
Revenue for the Marketing and Production segment declined $1.1 million in the quarter, to $1.5 million primarily due to the loss of an LNG customer to pipeline competition. G&A expenses for the segment included a $1.1 million uncollectible account charge for a large industrial customer in bankruptcy in the 2014 second quarter. The segment reported a loss of $0.8 million for the second quarter of 2014 compared with $0.2 million of net income in the prior-year period. For the first half of 2014, the segment reported a $0.8 million net loss compared with $0.4 million of net income in the prior-year first half.
Balance Sheet and Cash Management
Cash and cash equivalents as of June 30, 2014 were $3.2 million, compared with $13.1 million at December 31, 2013.
Cash provided by operating activities of continuing operations was $10.4 million in the first half of 2014 compared with $17.3 million in the prior-year period. The decrease was primarily due to higher working capital requirements.
Capital expenditures in the 2014 first half were $10.9 million compared with $9.9 million in the 2013 period. The Company continues to expect full year capital expenditures of $16 million to $17 million. Expenditures continue to focus on growth of the Company's Natural Gas Operations segment, especially the expansion of its gas pipeline systems to service the growing demand for natural gas in North Carolina and Maine.
Webcast and Conference Call
Gas Natural will host a conference call and live webcast on Friday, August 15th at 10:00 a.m. Eastern Time. During the conference call and webcast, management will review the financial and operating results for the second quarter and discuss Gas Natural's corporate strategies and outlook. A question-and-answer session will follow. The teleconference can be accessed by calling (201) 689-8471. The webcast can be monitored on the Company's website at www.egas.net.
A telephonic replay will be available from 1:00 p.m. ET on the day of the teleconference through Friday, August 22, 2014. To listen to a replay of the call, dial (858) 384-5517 and enter the conference ID number 13585608. An archive of the webcast will be available on the Company's website at www.egas.net and will include a transcript, once available.
About Gas Natural Inc.
Gas Natural Inc., a holding company, distributes and sells natural gas to end-use residential, commercial, and industrial customers. It distributes approximately 36 billion cubic feet of natural gas to approximately 73,000 customers through regulated utilities operating in Montana, Wyoming, Ohio, Pennsylvania, Maine, North Carolina and Kentucky. The Company's other operations include interstate pipeline, natural gas production, and natural gas marketing. The Company's Montana public utility was originally incorporated in 1909. Its strategy for growth is to expand throughput in the Maine and North Carolina markets, while looking for acquisitions that are either adjacent to its existing utilities or in under saturated markets.
Gas Natural Inc. regularly posts information on its website at www.egas.net.
Safe Harbor Regarding Forward-Looking Statements
The Company is including the following cautionary statement in this release to make applicable and to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, Gas Natural Inc. Forward-looking statements are all statements other than statements of historical fact, including, without limitation, those that are identified by the use of the words "anticipates," "estimates," "expects," "intends," "plans," "predicts," "believes" and similar expressions. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those expressed. Factors that may affect forward-looking statements and the Company's business generally include but are not limited to the Company's ability to successfully integrate the operations of the companies it has recently acquired and consummate additional acquisitions, the Company's continued ability to make dividend payments, the Company's ability to implement its business plan, fluctuating energy commodity prices, the possibility that regulators may not permit the Company to pass through all of its increased costs to its customers, changes in the utility regulatory environment, wholesale and retail competition, the Company's ability to satisfy its debt obligations, including compliance with financial covenants, weather conditions, litigation risks, and various other matters, many of which are beyond the Company's control, the risk factors and cautionary statements made in the Company's public filings with the Securities and Exchange Commission, and other factors that the Company is currently unable to identify or quantify, but may exist in the future. Gas Natural Inc. expressly undertakes no obligation to update or revise any forward-looking statement contained herein to reflect any change in Gas Natural Inc.'s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
| For more information, contact: |
||
| Gas Natural Inc. |
Investor Relations: |
|
| James E. Sprague, Chief Financial Officer |
Deborah K. Pawlowski or Karen L. Howard, Kei Advisors LLC |
|
| Phone: (440) 974-3770 |
Phone: (716) 843-3908 / (716) 843-3942 |
|
| Email: [email protected] |
Email: [email protected] / [email protected] |
|
FINANCIAL TABLES FOLLOW.
| Gas Natural Inc. and Subsidiaries |
|||||||||||||
| Condensed Consolidated Statement of Operations |
|||||||||||||
| (Unaudited) |
|||||||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||
| 2014 |
2013 |
2014 |
2013 |
||||||||||
| REVENUES |
|||||||||||||
| Natural gas operations |
$ 20,777,468 |
$ 17,746,297 |
$ 81,031,278 |
$ 57,690,959 |
|||||||||
| Marketing and production |
1,522,914 |
2,645,682 |
6,212,270 |
6,217,461 |
|||||||||
| Pipeline Operations |
97,862 |
105,032 |
196,876 |
203,319 |
|||||||||
| Total Revenue |
22,398,244 |
20,497,011 |
87,440,424 |
64,111,739 |
|||||||||
| COST OF SALES |
|||||||||||||
| Natural gas purchased |
11,718,997 |
10,049,089 |
53,674,432 |
34,165,510 |
|||||||||
| Marketing and production |
1,436,158 |
2,232,922 |
5,677,123 |
5,092,957 |
|||||||||
| Total cost of sales |
13,155,155 |
12,282,011 |
59,351,555 |
39,258,467 |
|||||||||
| GROSS MARGIN |
9,243,089 |
8,215,000 |
28,088,869 |
24,853,272 |
|||||||||
| OPERATING EXPENSES |
|||||||||||||
| Distribution, general, and administrative |
6,693,672 |
5,423,390 |
13,531,475 |
10,737,314 |
|||||||||
| Maintenance |
366,558 |
306,325 |
712,961 |
635,738 |
|||||||||
| Depreciation and amortization |
1,822,902 |
1,482,643 |
3,644,080 |
2,904,213 |
|||||||||
| Accretion |
47,826 |
43,512 |
94,404 |
86,119 |
|||||||||
| Provision for doubtful accounts |
813,313 |
14,781 |
822,188 |
23,557 |
|||||||||
| Taxes other than income |
1,135,039 |
906,982 |
2,131,771 |
1,817,889 |
|||||||||
| Total operating expenses |
10,879,310 |
8,177,633 |
20,936,879 |
16,204,830 |
|||||||||
| OPERATING INCOME (LOSS) |
(1,636,221) |
37,367 |
7,151,990 |
8,648,442 |
|||||||||
| Loss from unconsolidated affiliate |
(4) |
(2,947) |
(977) |
(4,027) |
|||||||||
| Other income, net |
169,480 |
377,661 |
275,588 |
413,064 |
|||||||||
| Acquisition expense |
(1,869) |
19,345 |
(7,197) |
(156,534) |
|||||||||
| Interest expense |
(761,940) |
(767,128) |
(1,571,321) |
(1,569,145) |
|||||||||
| Income (loss) before income taxes |
(2,230,554) |
(335,702) |
5,848,083 |
7,331,800 |
|||||||||
| Income tax benefit (expense) |
808,755 |
41,023 |
(2,235,830) |
(2,856,869) |
|||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
(1,421,799) |
(294,679) |
3,612,253 |
4,474,931 |
|||||||||
| Discontinued operations, net of tax |
(6,819) |
(32,237) |
(22,380) |
(14,124) |
|||||||||
| NET INCOME (LOSS) |
$ (1,428,618) |
$ (326,916) |
$ 3,589,873 |
$ 4,460,807 |
|||||||||
| Basic weighted shares outstanding |
10,468,961 |
8,465,983 |
10,468,961 |
8,425,647 |
|||||||||
| Dilutive effect of stock options |
- |
- |
429 |
847 |
|||||||||
| Diluted weighted shares outstanding |
10,468,961 |
8,465,983 |
10,469,390 |
8,426,494 |
|||||||||
| BASIC AND DILUTED EARNINGS (LOSS) PER SHARE: |
|||||||||||||
| Continuing operations |
$ (0.14) |
$ (0.03) |
$ 0.35 |
$ 0.53 |
|||||||||
| Discontinued operations |
- |
(0.01) |
(0.01) |
- |
|||||||||
| Net income (loss) per share |
$ (0.14) |
$ (0.04) |
$ 0.34 |
$ 0.53 |
|||||||||
| Weighted average dividends declared per common share |
$ 0.135 |
$ 0.135 |
$ 0.270 |
$ 0.270 |
|||||||||
| Gas Natural Inc. and Subsidiaries |
|||
| Condensed Consolidated Balance Sheets |
|||
| June 30, |
December 31, |
||
| 2014 |
2013 |
||
| (unaudited) |
|||
| ASSETS |
|||
| CURRENT ASSETS |
|||
| Cash and cash equivalents |
$ 3,200,502 |
$ 13,147,381 |
|
| Marketable securities |
411,984 |
406,134 |
|
| Accounts receivable |
|||
| Trade, less allowance for doubtful accounts of $295,990 and $1,986,531, respectively |
7,954,377 |
13,440,565 |
|
| Related parties |
209,564 |
146,225 |
|
| Unbilled gas |
1,853,287 |
7,729,560 |
|
| Note receivable – related parties, current portion |
1,938 |
1,938 |
|
| Inventory |
|||
| Natural gas |
3,645,729 |
5,464,744 |
|
| Materials and supplies |
2,683,862 |
2,413,745 |
|
| Prepaid income taxes |
681,628 |
727,427 |
|
| Prepayments and other |
1,003,116 |
1,064,845 |
|
| Recoverable cost of gas purchases |
3,736,553 |
1,298,299 |
|
| Deferred tax asset |
1,230,674 |
1,225,032 |
|
| Assets held for sale |
35,115 |
- |
|
| Discontinued operations |
5,184 |
34,151 |
|
| Total current assets |
26,653,513 |
47,100,046 |
|
| PROPERTY, PLANT AND EQUIPMENT |
|||
| Property, plant and equipment |
196,584,806 |
185,816,790 |
|
| Less accumulated depreciation, depletion and amortization |
(55,392,666) |
(52,296,504) |
|
| PROPERTY, PLANT AND EQUIPMENT, NET |
141,192,140 |
133,520,286 |
|
| OTHER ASSETS |
|||
| Notes receivable – related parties, less current portion |
91,475 |
93,727 |
|
| Regulatory assets |
|||
| Deferred costs |
2,450,000 |
- |
|
| Property taxes |
12,500 |
25,000 |
|
| Income taxes |
452,645 |
452,645 |
|
| Rate case costs |
108,566 |
130,228 |
|
| Debt issuance costs, net of amortization |
1,184,105 |
1,388,124 |
|
| Goodwill |
16,267,377 |
16,267,377 |
|
| Customer relationships |
3,078,917 |
3,230,333 |
|
| Investment in unconsolidated affiliate |
350,748 |
351,724 |
|
| Restricted cash |
1,955,712 |
1,137,442 |
|
| Other assets |
38,334 |
46,683 |
|
| Total other assets |
25,990,379 |
23,123,283 |
|
| TOTAL ASSETS |
$ 193,836,032 |
$ 203,743,615 |
|
| Gas Natural Inc. and Subsidiaries |
|||
| Condensed Consolidated Balance Sheets (Continued) |
|||
| June 30, |
December 31, |
||
| 2014 |
2013 |
||
| (unaudited) |
|||
| LIABILITIES AND CAPITALIZATION |
|||
| CURRENT LIABILITIES |
|||
| Checks in excess of amounts on deposit |
$ 1,061,972 |
$ 843,634 |
|
| Line of credit |
19,960,799 |
24,529,799 |
|
| Accounts payable |
|||
| Trade |
6,399,179 |
12,418,701 |
|
| Related parties |
171,880 |
559,933 |
|
| Notes payable, current portion |
542,112 |
3,502,190 |
|
| Contingent consideration, current portion |
671,638 |
671,638 |
|
| Accrued liabilities |
|||
| Taxes other than income |
1,748,613 |
3,173,640 |
|
| Vacation |
370,302 |
95,806 |
|
| Employee benefit plans |
308,635 |
178,789 |
|
| Interest |
203,963 |
169,581 |
|
| Deferred payments received from levelized billing |
1,141,152 |
2,469,665 |
|
| Customer deposits |
794,391 |
761,022 |
|
| Related parties |
21,158 |
- |
|
| Capital lease obligation, current portion |
177,570 |
177,570 |
|
| Over-recovered gas purchases |
821,499 |
793,184 |
|
| Build-to-suit liability |
2,378,714 |
- |
|
| Other current liabilities |
1,043,883 |
1,482,375 |
|
| Discontinued operations |
7,970 |
45,855 |
|
| Total current liabilities |
37,825,430 |
51,873,382 |
|
| LONG-TERM LIABILITIES |
|||
| Deferred investment tax credits |
123,724 |
134,255 |
|
| Deferred tax liability |
11,244,112 |
9,055,166 |
|
| Asset retirement obligation |
2,120,757 |
2,026,353 |
|
| Customer advances for construction |
1,021,464 |
1,016,671 |
|
| Regulatory liability for income taxes |
83,161 |
83,161 |
|
| Customer deposits |
949,540 |
- |
|
| Capital lease obligation, less current portion |
1,862,938 |
1,862,938 |
|
| Contingent consideration, less current portion |
13,362 |
13,362 |
|
| Total long-term liabilities |
17,419,058 |
14,191,906 |
|
| NOTES PAYABLE, less current portion |
39,991,983 |
40,198,552 |
|
| COMMITMENTS AND CONTINGENCIES |
|||
| STOCKHOLDERS' EQUITY |
|||
| Preferred stock; $0.15 par value, 1,500,000 shares authorized, no shares issued or outstanding |
- |
- |
|
| Common stock; $0.15 par value, 15,000,000 shares authorized, 10,487,511 and 10,451,678 shares issued and outstanding, respectively |
1,573,127 |
1,567,752 |
|
| Capital in excess of par value |
63,817,686 |
63,468,969 |
|
| Accumulated other comprehensive income |
109,136 |
104,909 |
|
| Retained earnings |
33,099,612 |
32,338,145 |
|
| Total stockholders' equity |
98,599,561 |
97,479,775 |
|
| TOTAL CAPITALIZATION |
138,591,544 |
137,678,327 |
|
| TOTAL LIABILITIES AND CAPITALIZATION |
$ 193,836,032 |
$ 203,743,615 |
|
| Gas Natural Inc. and Subsidiaries |
|||
| Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||
| Six Months Ended June 30, |
|||
| 2014 |
2013 |
||
| CASH FLOWS FROM OPERATING ACTIVITIES |
|||
| Net income |
$ 3,589,873 |
$ 4,460,807 |
|
| Loss from discontinued operations |
(22,380) |
(14,124) |
|
| Income from continuing operations |
3,612,253 |
4,474,931 |
|
| Adjustments to reconcile income from continuing operations to net cash provided by operating activities: |
|||
| Depreciation and amortization |
3,644,080 |
2,904,213 |
|
| Accretion |
94,404 |
86,119 |
|
| Amortization of debt issuance costs |
204,019 |
212,569 |
|
| Provision for doubtful accounts |
822,188 |
23,557 |
|
| Stock based compensation |
308,330 |
1,615 |
|
| Gain on sale of assets |
(5,008) |
(126,596) |
|
| Loss from unconsolidated affiliate |
977 |
4,027 |
|
| Investment tax credit |
(10,531) |
(10,531) |
|
| Deferred income taxes |
2,181,681 |
2,835,862 |
|
| Changes in assets and liabilities |
|||
| Accounts receivable, including related parties |
4,600,661 |
5,098,484 |
|
| Unbilled gas |
5,876,273 |
2,975,256 |
|
| Natural gas inventory |
1,819,015 |
1,464,733 |
|
| Accounts payable, including related parties |
(5,308,532) |
(760,700) |
|
| Recoverable/refundable cost of gas purchases |
(2,409,939) |
(781,112) |
|
| Prepayments and other |
60,489 |
1,693,770 |
|
| Other assets |
(2,449,265) |
(904,671) |
|
| Other liabilities |
(2,676,669) |
(1,931,178) |
|
| Net cash provided by operating activities of continuing operations |
10,364,426 |
17,260,348 |
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|||
| Capital expenditures |
(10,877,252) |
(9,873,759) |
|
| Proceeds from sale of fixed assets |
42,534 |
1,018,163 |
|
| Proceeds from related party notes receivable |
2,252 |
5,217 |
|
| Investment in unconsolidated affiliate |
- |
(35,000) |
|
| Restricted cash – capital expenditures fund |
(106) |
1,060,190 |
|
| Customer advances for construction |
4,793 |
26,155 |
|
| Contributions in aid of construction |
988,723 |
273,510 |
|
| Net cash used in investing activities of continuing operations |
(9,839,056) |
(7,525,524) |
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|||
| Proceeds from lines of credit |
10,350,000 |
8,050,000 |
|
| Repayments of lines of credit |
(14,919,000) |
(15,909,755) |
|
| Proceeds from notes payable |
102,000 |
- |
|
| Repayments of notes payable |
(3,294,190) |
(379,166) |
|
| Debt issuance costs |
- |
(7,492) |
|
| Exercise of stock options |
45,762 |
159,500 |
|
| Restricted cash – debt service fund |
131,376 |
1,651 |
|
| Dividends paid |
(2,826,793) |
(2,275,896) |
|
| Net cash used in financing activities of continuing operations |
(10,410,845) |
(10,361,158) |
|
| DISCONTINUED OPERATIONS |
|||
| Operating cash flows |
(51,735) |
181,727 |
|
| Investing cash flows |
- |
(6,169) |
|
| Financing cash flows |
(9,669) |
(201,000) |
|
| Net cash used in discontinued operations |
(61,404) |
(25,442) |
|
| NET DECREASE IN CASH AND CASH EQUIVALENTS |
(9,946,879) |
(651,776) |
|
| Cash and cash equivalents, beginning of period |
13,147,381 |
3,435,117 |
|
| CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ 3,200,502 |
$ 2,783,341 |
|
| Gas Natural Inc. and Subsidiaries Segments of Operations (Unaudited) |
|||||||||||||
| Three Months Ended June 30, 2014 |
|||||||||||||
| Natural Gas |
Marketing & |
Pipeline |
Corporate |
||||||||||
| Operations |
Production |
Operations |
& Other |
Consolidated |
|||||||||
| OPERATING REVENUES |
$ 20,856,269 |
$ 3,071,792 |
$ 97,862 |
$ - |
$ 24,025,923 |
||||||||
| Intersegment elimination |
(78,801) |
(1,548,878) |
- |
- |
(1,627,679) |
||||||||
| Total operating revenue |
20,777,468 |
1,522,914 |
97,862 |
- |
22,398,244 |
||||||||
| COST OF SALES |
11,797,798 |
2,985,036 |
- |
- |
14,782,834 |
||||||||
| Intersegment elimination |
(78,801) |
(1,548,878) |
- |
- |
(1,627,679) |
||||||||
| Total cost of sales |
11,718,997 |
1,436,158 |
- |
- |
13,155,155 |
||||||||
| GROSS MARGIN |
9,058,471 |
86,756 |
97,862 |
- |
9,243,089 |
||||||||
| OPERATING EXPENSES |
9,188,987 |
1,401,544 |
58,105 |
256,419 |
10,905,055 |
||||||||
| Intersegment elimination |
(500) |
- |
- |
(25,245) |
(25,745) |
||||||||
| Total operating expenses |
9,188,487 |
1,401,544 |
58,105 |
231,174 |
10,879,310 |
||||||||
| OPERATING INCOME (LOSS) |
$ (130,016) |
$ (1,314,788) |
$ 39,757 |
$ (231,174) |
$ (1,636,221) |
||||||||
| DISCONTINUED OPERATIONS |
$ - |
$ - |
$ - |
$ (6,819) |
$ (6,819) |
||||||||
| NET INCOME (LOSS) |
$ (409,928) |
$ (849,438) |
$ 17,521 |
$ (186,773) |
$ (1,428,618) |
||||||||
| Three Months Ended June 30, 2013 |
|||||||||||||
| Natural Gas |
Marketing & |
Pipeline |
Corporate |
||||||||||
| Operations |
Production |
Operations |
& Other |
Consolidated |
|||||||||
| OPERATING REVENUES |
$ 17,825,910 |
$ 4,227,929 |
$ 105,032 |
$ - |
$ 22,158,871 |
||||||||
| Intersegment elimination |
(79,613) |
(1,582,247) |
- |
- |
(1,661,860) |
||||||||
| Total operating revenue |
17,746,297 |
2,645,682 |
105,032 |
- |
20,497,011 |
||||||||
| COST OF SALES |
10,128,702 |
3,815,169 |
- |
- |
13,943,871 |
||||||||
| Intersegment elimination |
(79,613) |
(1,582,247) |
- |
- |
(1,661,860) |
||||||||
| Total cost of sales |
10,049,089 |
2,232,922 |
- |
- |
12,282,011 |
||||||||
| GROSS MARGIN |
7,697,208 |
412,760 |
105,032 |
- |
8,215,000 |
||||||||
| OPERATING EXPENSES |
7,645,708 |
243,838 |
43,457 |
257,199 |
8,190,202 |
||||||||
| Intersegment elimination |
(12,569) |
- |
- |
- |
(12,569) |
||||||||
| Total operating expenses |
7,633,139 |
243,838 |
43,457 |
257,199 |
8,177,633 |
||||||||
| OPERATING INCOME (LOSS) |
$ 64,069 |
$ 168,922 |
$ 61,575 |
$ (257,199) |
$ 37,367 |
||||||||
| DISCONTINUED OPERATIONS |
$ - |
$ - |
$ - |
$ (32,237) |
$ (32,237) |
||||||||
| NET INCOME (LOSS) |
$ (235,899) |
$ 178,872 |
$ 33,978 |
$ (303,867) |
$ (326,916) |
||||||||
| Gas Natural Inc. and Subsidiaries Segments of Operations (Unaudited) |
||||||||||
| Six Months Ended June 30, 2014 |
||||||||||
| Natural Gas |
Marketing & |
Pipeline |
Corporate & |
|||||||
| Operations |
Production |
Operations |
Other |
Consolidated |
||||||
| OPERATING REVENUES |
$ 81,196,623 |
$ 11,001,565 |
$ 196,876 |
$ - |
$ 92,395,064 |
|||||
| Intersegment elimination |
(165,345) |
(4,789,295) |
- |
- |
(4,954,640) |
|||||
| Total operating revenue |
81,031,278 |
6,212,270 |
196,876 |
- |
87,440,424 |
|||||
| COST OF SALES |
53,839,777 |
10,466,418 |
- |
- |
64,306,195 |
|||||
| Intersegment elimination |
(165,345) |
(4,789,295) |
- |
- |
(4,954,640) |
|||||
| Total cost of sales |
53,674,432 |
5,677,123 |
- |
- |
59,351,555 |
|||||
| GROSS MARGIN |
27,356,846 |
535,147 |
196,876 |
- |
28,088,869 |
|||||
| OPERATING EXPENSES |
17,791,147 |
1,784,002 |
80,117 |
1,282,113 |
20,937,379 |
|||||
| Intersegment elimination |
(500) |
- |
- |
- |
(500) |
|||||
| Total operating expenses |
17,790,647 |
1,784,002 |
80,117 |
1,282,113 |
20,936,879 |
|||||
| OPERATING INCOME (LOSS) |
$ 9,566,199 |
$ (1,248,855) |
$ 116,759 |
$ (1,282,113) |
$ 7,151,990 |
|||||
| DISCONTINUED OPERATIONS |
$ - |
$ - |
$ - |
$ (22,380) |
$ (22,380) |
|||||
| NET INCOME (LOSS) |
$ 5,283,318 |
$ (828,637) |
$ 62,469 |
$ (927,277) |
$ 3,589,873 |
|||||
| Six Months Ended June 30, 2013 |
||||||||||
| Natural Gas |
Marketing & |
Pipeline |
Corporate & |
|||||||
| Operations |
Production |
Operations |
Other |
Consolidated |
||||||
| OPERATING REVENUES |
$ 57,856,318 |
$ 9,816,141 |
$ 203,319 |
$ - |
$ 67,875,778 |
|||||
| Intersegment elimination |
(165,359) |
(3,598,680) |
- |
- |
(3,764,039) |
|||||
| Total operating revenue |
57,690,959 |
6,217,461 |
203,319 |
- |
64,111,739 |
|||||
| COST OF SALES |
34,330,869 |
8,691,637 |
- |
- |
43,022,506 |
|||||
| Intersegment elimination |
(165,359) |
(3,598,680) |
- |
- |
(3,764,039) |
|||||
| Total cost of sales |
34,165,510 |
5,092,957 |
- |
- |
39,258,467 |
|||||
| GROSS MARGIN |
23,525,449 |
1,124,504 |
203,319 |
- |
24,853,272 |
|||||
| OPERATING EXPENSES |
15,222,579 |
505,089 |
91,135 |
398,596 |
16,217,399 |
|||||
| Intersegment elimination |
(12,569) |
- |
- |
- |
(12,569) |
|||||
| Total operating expenses |
15,210,010 |
505,089 |
91,135 |
398,596 |
16,204,830 |
|||||
| OPERATING INCOME (LOSS) |
$ 8,315,439 |
$ 619,415 |
$ 112,184 |
$ (398,596) |
$ 8,648,442 |
|||||
| DISCONTINUED OPERATIONS |
$ - |
$ - |
$ - |
$ (14,124) |
$ (14,124) |
|||||
| NET INCOME (LOSS) |
$ 4,475,307 |
$ 427,333 |
$ 61,092 |
$ (502,925) |
$ 4,460,807 |
|||||
| Gas Natural Inc. and Subsidiaries |
|||||||
| Natural Gas Operations |
|||||||
| Utility Throughput |
|||||||
| (in million cubic feet (MMcf)) |
Three Months Ended |
Six Months Ended |
|||||
| 2014 |
2013 |
2014 |
2013 |
||||
| Full Service Distribution Revenues |
|||||||
| Residential |
806 |
704 |
3,612 |
2,948 |
|||
| Commercial |
986 |
926 |
3,308 |
2,897 |
|||
| Industrial |
56 |
42 |
107 |
91 |
|||
| Total full service distribution |
1,848 |
1,672 |
7,027 |
5,936 |
|||
| Transportation |
2,648 |
2,733 |
5,994 |
5,902 |
|||
| Bucksport |
1,803 |
3,110 |
2,760 |
6,873 |
|||
| Total Volumes |
6,299 |
7,515 |
15,781 |
18,711 |
|||
| Heating Degree Days |
||||||||||
| Three Months Ended |
Percent Colder (Warmer) |
|||||||||
| June 30, |
2014 Compared to |
|||||||||
| Normal |
2014 |
2013 |
Normal |
2013 |
||||||
| Great Falls, MT |
2,141 |
1,273 |
1,310 |
(40.54%) |
(2.82%) |
|||||
| Cody, WY |
2,074 |
1,116 |
1,155 |
(46.19%) |
(3.38%) |
|||||
| Bangor, ME |
1,934 |
1,078 |
1,171 |
(44.26%) |
(7.94%) |
|||||
| Elkin, NC |
1,320 |
359 |
451 |
(72.80%) |
(20.40%) |
|||||
| Youngstown, OH |
1,686 |
709 |
740 |
(57.95%) |
(4.19%) |
|||||
| Jackson, KY |
902 |
385 |
446 |
(57.32%) |
(13.68%) |
|||||
| Six Months Ended |
Percent Colder (Warmer) |
|||||||||
| June 30, |
2014 Compared to |
|||||||||
| Normal |
2014 |
2013 |
Normal |
2013 |
||||||
| Great Falls, MT |
4,399 |
4,863 |
4,192 |
10.55% |
16.01% |
|||||
| Cody, WY |
4,374 |
4,457 |
4,130 |
1.90% |
7.92% |
|||||
| Bangor, ME |
4,554 |
5,117 |
4,757 |
12.36% |
7.57% |
|||||
| Elkin, NC |
2,960 |
2,793 |
2,683 |
(5.64%) |
4.10% |
|||||
| Youngstown, OH |
3,928 |
4,411 |
3,893 |
12.30% |
13.31% |
|||||
| Jackson, KY |
2,672 |
3,081 |
2,906 |
15.31% |
6.02% |
|||||
SOURCE Gas Natural Inc.
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