Investment in Savoy

9 Months Ended

Sep. 30, 2016

(3)Equity Investment in Savoy

We 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. We account for our interest using the equity method of accounting.

On November 3, 2016 Lubar Equity Fund, LLC acquired a 25% interest in Savoy for $9.5 million in cash. Accordingly, our ownership interest was reduced from 40% to 30.6%. At closing, Savoy made a cash distribution of $4.4 million of which our share was $1.8 million and per our credit agreement will be applied to our bank debt. Mr. Lubar, one of our directors, is affiliated with Lubar Equity Fund, LLC.

Below (in thousands) to the 100% is a condensed balance sheet at September 30, and a condensed statement of operations for the nine months ended September 30.



Condensed Balance Sheet
					2016
Current assets				$	8,776
Oil and gas properties, net					19,429
Other					997
Totals assets				$	29,202

Total liabilities				$	3,847
Partners’ capital					25,355
Total liabilities and equity				$	29,202

Condensed Statement of Operations
		2016			2015
Revenue	$	7,900		$	10,887
Expenses		(8,005	)		(11,156	)
Net loss	$	(105	)	$	(269	)