Concentrations |
12 Months Ended |
|---|---|
Dec. 31, 2015 | |
| Risks and Uncertainties [Abstract] | |
| CONCENTRATIONS |
CONCENTRATIONS
MoGas
MoGas relies on certain key customers for a significant portion of its revenues. Laclede Gas, Ameren Energy and Omega Pipeline Company (an affiliate of the Company) accounted for approximately 66 percent, 19 percent and 10 percent, respectively, of MoGas' contracted transportation revenues for the year ended December 31, 2015 and 67%, 19%, and 10%, respectively, for the 37-day period ending December 31, 2014.
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 could be reached. On June 12, 2015, the DOD gave notice of their intent to extend the bridge agreement to October 31, 2015, and again on October 16, 2015, to extend the bridge agreement to January 31, 2016. The extensions were made to provide additional time to negotiate terms for a new agreement. On January 28, 2016, the DOD awarded Omega a new 10-year agreement with very similar terms and conditions as the original and bridge agreements for Omega to continue providing natural gas and gas distribution services through March 31, 2026.
Revenue related to the DOD contract accounted for 89 percent, 88 percent, and 80 percent of our sales revenue for the years ended December 31, 2015, 2014 and 2013, respectively. Omega performs management and operational services related to the operation and expansion of the natural gas distribution system used by the DOD. The amount due from the DOD accounts for 10 percent and 25 percent of the consolidated accounts and other receivables balances as of December 31, 2015 and 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 91 percent, 64 percent, and 41 percent of our cost of sales after intercompany eliminations for the years ended December 31, 2015, 2014, and 2013, respectively. Omega also experiences a substantial amount of seasonality in gas sales. As a result, overall sales and operating income are generally higher in the first and fourth quarters and lower during the second and third quarters.
|