Concentrations |
6 Months Ended |
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Jun. 30, 2015 | |
| Risks and Uncertainties [Abstract] | |
| CONCENTRATIONS |
CONCENTRATIONS
Mowood, Omega
Omega had a 10-year agreement (the "DOD Agreement") with the Department of Defense (“DOD”) to provide natural gas and gas distribution services to Fort Leonard Wood. The DOD Agreement expired January 31, 2015. On January 28, 2015, the DOD awarded Omega a 6-month bridge agreement with very similar terms and conditions as the original agreement for Omega to continue providing natural gas and gas distribution services until a new 10-year agreement is reached. On June 12, 2015, the DOD gave notice of their intent to extend the bridge agreement to October 31, 2015, to provide additional time to negotiate terms for a new 10-year agreement.
Revenue related to the DOD contract accounted for 89 percent and 90 percent of our sales revenue for the three and six months ended June 30, 2015, respectively, as compared to 84 percent and 88 percent of our sales revenue for the three and six months ended June 30, 2014, respectively . Omega performs management and supervision services related to the expansion of the natural gas distribution system used by the DOD. The amount due from the DOD accounts for 94 percent and 90 percent of the consolidated accounts receivable balances as of June 30, 2015, and December 31, 2014, respectively.
Omega’s contracts for its supply of natural gas are concentrated among select providers. Purchases from its largest supplier of natural gas accounted for 74 percent and 89 percent of our cost of sales for the three and six months ended June 30, 2015. This compares to 55 percent and 69 percent for the three and six months ended June 30, 2014.MoGas
MoGas generates revenue from the transportation of natural gas to a concentrated group of customers. Transportation revenue relating to MoGas' largest customer accounted for 66 percent of the contracted capacity for the three and six months ended June 30, 2015.
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