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Equity Investment in Savoy
 12 Months Ended
Dec. 31, 2015
Savoy [Member]  
Equity Investment

 

(14)  Equity Investment in Savoy

 

We currently own a 40% interest in Savoy Energy, L.P., a private company engaged in the oil and gas business primarily in the state of Michigan. Savoy uses the successful efforts method of accounting.  Our 45% ownership was decreased to 40% on October 1, 2014 due to the exercise of options by Savoy’s management.  We account for our interest using the equity method of accounting. 

 

Below (in thousands) to the 100% is a condensed balance sheet at December 31, for two years and a condensed statement of operations for three years.

 

 

 

 

 

 

 

 

 

Condensed Balance Sheet

 

 

2015

 

 

2014

 

Current assets

 

$

 11,795 

 

 

$

 14,863 

 

Oil and gas properties, net

 

 

 21,659 

 

 

 

 27,549 

 

Other

 

 

 1,015 

 

 

 

 852 

 

 

 

$

 34,469 

 

 

$

 43,264 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

 4,909 

 

 

$

 10,079 

 

Partners' capital

 

 

 29,560 

 

 

 

 33,185 

 

 

 

$

 34,469 

 

 

$

 43,264 

 

 

 

 

 

 

 

 

 

 

 

Condensed Statement of Operations

 

 

2015

 

 

2014

 

 

2013

 

Revenue

$

 13,075

 

 

$

 41,583

 

 

$

 42,248

 

Expenses

 

 (16,824

)

 

 

 (29,354

)

 

 

 (29,322

)

Net income (loss)

$

 (3,749

)

 

$

 12,229

 

 

$

 12,926

 

 

Savoy made a $12 million cash distribution in early October 2014; our share was $4.9 million; such amount was applied toward our bank debt as required under our credit agreement.     Savoy recorded to the 100% a $2.6 million impairment charge in the 4th quarter of 2015.