Quarterly report pursuant to Section 13 or 15(d)

SEGMENT AND GEOGRAPHIC DATA

v3.19.3
SEGMENT AND GEOGRAPHIC DATA
6 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC DATA

NOTE 16 – SEGMENT AND GEOGRAPHIC DATA

 

The Company operates through two lines of business, or operating segments: exploration and production and oil and gas services, which market to different sets of customers. Each line of business represents unique products and suppliers, and each line of business focuses on specific end markets within its industry based on a variety of factors, including supplier or customer opportunities, expected growth and prevailing economic conditions. The accounting policies used to account for transactions in each of the lines of business are the same as those used to account for transactions at the corporate level.

 

A brief description of each segment follows:

 

Exploration and Production. The exploration and production segment’s revenue is comprised entirely of revenue from exploration and production activities. The Company’s oil is sold primarily to marketers, gatherers, and refiners. Natural gas is sold primarily to interstate and intrastate natural-gas pipelines, direct end-users, industrial users, local distribution companies, and natural-gas marketers. NGLs are sold primarily to direct end-users, refiners, and marketers. 

 

Oil and Gas Services. The oil and gas services segment was acquired in July 2019, with the acquisition of Lineal (see “NOTE 11 – Merger Agreement”). The oil and gas services line of business is a provider of upstream, midstream, and utilities pipeline maintenance, specialty construction and integrity services. All of the revenue generated from the oil and gas services line of business is currently generated from utilities pipeline maintenance contracts. As such no further disaggregation of revenue information is provided.

 

The Chief Executive Officer is the Chief Operating Decision Maker. The Chief Operating Decision Maker reviews operating results in order to make decisions, assess performance and allocate resources to each line of business. In order to maintain the focus on-line of business performance, certain expenses are excluded from the line of business results utilized by the Company’s Chief Operating Decision Maker in evaluating line of business performance. These expenses include depreciation and amortization, certain selling, general and administrative expense and corporate items including transaction related costs, interest and income tax expense. These items are separately delineated to reconcile to reported net income (loss). The Company had a concentration of business with certain customers as set forth in “NOTE 3 – Summary of Significant Accounting Policies” – “Concentration of Credit Risk”. There were no Intersegment revenues.

 

Certain assets are aggregated at the line of business level. The assets attributable to the Company’s lines of business, that are reviewed by the Chief Operating Decision Maker, consist of trade accounts receivable, inventories, intangible assets, goodwill and any specific assets that are otherwise directly associated with a line of business. The Company’s inventory of packaging materials and containers, as well as property, plant and equipment, are generally not allocated to a line of business and are included in unallocated assets.

 

 

Summarized financial information relating to the Company’s lines of business is as follows:

 

    Three Months Ended September 30, 2019     Three Months Ended September 30, 2018     Six Months Ended September 30, 2019     Six Months Ended September 30, 2018  
Operating Revenues                                
   Exploration and production   $ 92,753     $ 809,466     $ 214,104     $ 2,504,162  
   Oil and gas services     6,285,535             6,285,535        
Total operating revenues     6,378,288       809,466       6,499,639       2,504,162  
                                 
Operating Income (Loss)                                
   Exploration and production     (103,333 )     25,464,808       (112,113 )     24,806,220  
   Oil and gas services     1,323,471             1,323,471        
   Corporate     (1,731,815 )     (952,201 )     (3,064,048 )     (2,835,250 )
Total operating income (loss)     (511,677 )     24,512,607       (1,852,690 )     21,970,970  
                                 
Interest expense     (37,677 )     (1,268,811 )     (38,524 )     (2,234,107 )
Other expense (income), net     272,390       (15,430 )     326,652       (20,594 )
Net income (loss)   $ (276,964 )   $ 23,228,366     $ (1,564,562 )   $ 19,716,269  

 

    September 30, 2019     March 31, 2019  
Identifiable assets                
   Exploration and production   $ 544,005     $ 803,949  
   Oil and gas services     26,425,656        
   Corporate     4,218,056       7,778,723  
Total assets   $ 31,187,717     $ 8,582,672