Quarterly report pursuant to Section 13 or 15(d)

HELD FOR SALE

v3.23.1
HELD FOR SALE
 3 Months Ended
Mar. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
HELD FOR SALE HELD FOR SALE
MoGas Pipeline and Omega Pipeline Systems
As of March 31, 2023, the Company's MoGas and Omega pipeline systems were classified as assets and liabilities held for sale. The Company is disposing of these assets to address upcoming debt maturities on the Crimson Credit Facility and to reduce outstanding debt associated with the Company's 5.875% Unsecured Convertible Senior Notes due 2025 (the "5.875% Convertible Notes"). It is the Company's expectation that the sale of these assets will be completed by the third quarter of 2023. The carrying value of the assets classified as held for sale was $107.7 million as of March 31, 2023. The carrying value of the liabilities held for sale was $8.2 million as of March 31, 2023. During the three months ended March 31, 2023 and 2022, pre-tax profit from the MoGas and Omega pipeline systems was $634 thousand and $2.3 million, respectively. The Company is contractually obligated to use the proceeds from the anticipated sale to repay the Crimson Credit Facility. As such, the aforementioned pre-tax profit includes allocated interest related to the Crimson Credit Facility of $2.5 million and $1.2 million for the three months ended March 31, 2023 and 2022, respectively.
MoGas and Omega Pipeline Systems
Held for Sale Balance Sheets
March 31, 2023
Assets (Unaudited)
Property and equipment, net of accumulated depreciation of $30,077,502
$ 99,136,234 
Leased property, net of accumulated depreciation of $309,778
1,216,249 
Cash and cash equivalents 2,844,622 
Accounts and other receivables 3,228,980 
Inventory 145,275 
Prepaid expenses and other assets 1,059,643 
Operating right-of-use assets 85,200 
Total Assets $ 107,716,203 
Liabilities
Accounts payable and other accrued liabilities 967,732 
Operating lease liability 51,376 
Deferred tax liability, net(1)
1,400,665 
Unearned revenue 5,772,779 
Total Liabilities $ 8,192,552 
(1) The deferred tax liability is recorded within certain parent entities that are not part of the disposal group, however, as the liability was generated from the operations of the disposal group, the Company has included it within liabilities held for sale on the Consolidated Balance Sheet.