Texas Gulf Energy Inc Form 10-Q Quarterly Report Filed 2013-11-18

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2013

Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File No. 333-149857

TEXAS GULF ENERGY, INCORPORATED

(Exact name of registrant as specified in its charter)

Nevada		26-0338889
(State of incorporation)		(I.R.S. Employer Identification No.)

1602 Old Underwood Road, La Porte, TX 77571

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (281) 867-8500

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Inter Active Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer”, “large accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨

Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of November 15, 2013 there were 68,776,636 shares of the Company’s common stock, $0.00001 par value per share, issued and outstanding.

FORWARD-LOOKING STATEMENTS

This Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this Form 10-Q which address activities, events or developments which we expect, believe or anticipate will or may occur in the future are forward-looking statements. The words “believes,” “intends,” “expects,” “anticipates,” “projects,” “estimates,” “predicts” and similar expressions are also intended to identify forward-looking statements.

These forward-looking statements include, among others, such things as:

	•	amounts and nature of future revenues and margins from our Construction Services and Fishbone Solutions segments;

	•	the likely impact of new or existing regulations or market forces on the demand for our services;

	•	expansion and other development trends of the industries we serve;

	•	our ability to generate sufficient cash from operations or to raise cash in order to meet our short and long-term capital requirements; and

These statements are based on certain assumptions and analyses we made in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties which could cause actual results to differ materially from our expectations, including:

	•	the risk factors discussed in our Form 10-K for the fiscal year ended December 31, 2012 and listed from time to time in our filings with the Securities and Exchange Commission;

	•	the inherently uncertain outcome of current and future litigation;

	•	the adequacy of our reserves for contingencies;

	•	economic, market or business conditions in general and in the oil, gas and power industries in particular;

	•	changes in laws or regulations; including the granting of Visas for foreign guest workers and

	•	other factors, many of which are beyond our control.

Consequently, all of the forward-looking statements made in this Form 10-Q are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business operations. We assume no obligation to update publicly, except as required by law, any such forward-looking statements, whether as a result of new information, future events or otherwise.

TABLE OF CONTENTS

		PAGE

PART I	FINANCIAL INFORMATION

Item 1.	Financial Statements	1

	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2013 and 2012 (Unaudited)	1

	Consolidated Balance Sheets as of September 30, 2013 (Unaudited) and December 31, 2012	2

	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2013 and 2012 (Unaudited)	3

	Notes to Consolidated Financial Statements (Unaudited)	4

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	10

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	13

Item 4.	Controls and Procedures	13

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	15

Item 1A.	Risk Factors	15

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	15

Item 3.	Defaults Upon Senior Securities	15

Item 4.	Mine Safety Disclosures	15

Item 5.	Other Information	15

Item 6.	Exhibits	15

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

Texas Gulf Energy, Incorporated

Consolidated Statements of Operations

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
			(restated)				(restated)
Revenues	$	6,191,014	$	8,080,254	$	20,251,057	$	25,410,018

Cost of revenues		4,809,909		6,569,790		15,825,536		19,741,646

Gross profit		1,381,105		1,510,464		4,425,521		5,668,372

General and administrative expense		2,106,837		2,175,442		5,518,804		6,666,469

Loss from operations		(725,732)		(664,978)		(1,093,283)		(998,097)

Other income (expense)
Other income (expense)		(881)		404,820		133,495		405,502
Interest expense		(79,738)		(16,630)		(244,797)		(89,086)
Total other income (expense)		(80,619)		388,190		(111,302)		316,416

Loss before income tax		(806,351)		(276,788)		(1,204,585)		(681,681)

Income tax benefit		52,808		60,344		205,274		200,987

Net loss	$	(753,543)	$	(216,444)	$	(999,311)	$	(480,694)

Loss per share
Basic	$	(0.01)	$	(0.00)	$	(0.02)	$	(0.01)
Diluted	$	(0.01)	$	(0.00)	$	(0.02)	$	(0.01)

Weighted average shares outstanding
Basic		56,612,302		48,847,954		52,913,541		47,309,704
Diluted		56,612,302		48,847,954		52,913,541		47,309,704

See accompanying notes to the Consolidated Financial Statements.

	1

Texas Gulf Energy, Incorporated

Consolidated Balance Sheets

(unaudited)

	September 30, 2013		December 31, 2012
			(restated)
Assets
Current assets:
Cash and cash equivalents	$	483,807	$	394,306
Accounts receivable, net		5,319,960		6,506,920
Federal income taxes receivable		303,746		115,224
Deferred income taxes		245,000		130,000
Prepaid expenses and other current assets		545,345		762,211
Total current assets		6,897,858		7,908,661

Property and equipment, net		988,282		1,431,741
Goodwill and other assets		935,947		942,227
Total assets	$	8,822,087	$	10,282,629

Liabilities and stockholders’ equity

Current liabilities:
Accounts payable	$	1,373,726	$	1,292,686
Accrued liabilities		604,774		1,353,044
Due to related parties, net		36,747		204,561
Lines of credit		2,037,713		2,623,552
Note payable		484,080		233,135
Total current liabilities		4,537,040		5,706,978

Convertible debt		1,283,126		1,283,126
Deferred federal income tax		-		29,000
Total liabilities		5,820,166		7,019,104

Commitments and Contingencies

Stockholders’ equity:
Common stock - $.00001 par value; 500,000,000 shares authorized; 58,485,479 shares issued and outstanding as of September 30, 2013, and 49,300,156 December 31, 2012		585		493
Preferred stock – par value of $.00001; 100,000,000 shares authorized;
Series A convertible preferred stock 2,900,000 issued and outstanding		29		29
Series B convertible preferred stock 10,000,000 issued and outstanding		100		100
Additional paid in capital		3,958,804		3,221,189
Retained earnings (deficit)		(957,597)		41,714
Total stockholders’ equity		3,001,921		3,263,525
Total liabilities and stockholders’ equity	$	8,822,087	$	10,282,629

See accompanying notes to the Consolidated Financial Statements.

	2

Texas Gulf Energy, Incorporated

Consolidated Statements of Cash Flows

(unaudited)

	Nine months ended
	September 30, 2013		September 30, 2012
				(restated)
Cash flow from operating activities
Net loss	$	(999,311)	$	(480,694)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation		482,561		377,004
Stock based compensation		559,755		900,751
Gain on sale of assets		-		(43,192)
Gain on sale of business		-		(348,001)
Changes in working capital accounts:		-
Change in accounts receivables		1,186,960		132,756
Change in federal income taxes receivable		(188,522)		(631,389)
Change in prepaid expenses and other current assets		223,146		175,449
Change in accounts payable		81,039		553,723
Change in deferred tax asset		(115,000)		-
Change in accrued liabilities		(570,317)		(1,974,602)
Change in deferred tax liability		(29,000)		-
Change in due to related parties		(167,814)		(1,290,574)
Net cash provided by (used in) operating activities		463,497		(2,628,769)

Cash flows from investing activities
Purchase of property and equipment, net		(39,102)		(891,514)
Acquisitions		-		(371,022)
Disposal of business		-		12,661
Proceeds from sale of assets		-		90,384
Net cash used in investing activities		(39,102)		(1,159,491)

Cash flows from financing activities
Proceeds from notes payable, net		250,945		-
Payment on line of credit, net		(585,839)		(223,894)
Line of credit, net		-		1,446,889
Net cash provided by (used in) financing activities		(334,894)		1,222,995

Net change in cash and cash equivalents		89,501		(2,565,265)

Cash and cash equivalents:
Beginning		394,306		2,747,880
Ending	$	483,807	$	182,615

Supplemental disclosure of cash flow information
Cash payments (receipts) for:
Federal income tax	$	-	$	194,414
Issuance of common stock for payment of accounts payable	$	177,952	$	-
Interest paid	$	244,797	$	89,086

See accompanying notes to the Consolidated Financial Statements.

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Texas Gulf Energy, Incorporated

Notes to Consolidated Financial Statements

(unaudited)

Note 1 – Basis of Presentation

The consolidated financial statements include the accounts of Texas Gulf Energy, Incorporated (“TGE,” “we,” “our,” “us,” “its” or the “Company”) and its subsidiaries, all of which are wholly owned. Intercompany balances and transactions have been eliminated in consolidation.

The accompanying unaudited consolidated financial statements have been prepared in accordance with Rule 8-03 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission and do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. However, the information furnished reflects all adjustments, consisting of normal recurring adjustments and other adjustments described herein that are, in the opinion of management, necessary for a fair statement of the results for the interim periods.

The accompanying unaudited consolidated financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2012, included in the Company’s Annual Report on Form 10-K for the year then ended, as amended. The Company’s business is cyclical due to the scope and timing of projects released by its customer base. Planned maintenance projects at customer facilities are typically scheduled in the spring and the fall when the demand for energy is lower. Our business can also be affected by seasonal weather conditions including hurricanes, snowstorms, abnormally low or high temperatures or other inclement weather, which can result in reduced activities. Accordingly, results for any interim period may not necessarily be indicative of future operating results.

Restatement of Financial Information

Texas Gulf Energy, Incorporated (“Company”) has restated its unaudited consolidated financial statements for the three and nine months ended September 30, 2012 to correct its accounting for errors that occurred during this quarter. This statement is necessary due to material weaknesses in the Company’s internal controls that resulted in accounting errors that occurred when the Company failed to reconcile certain accounts. The effected accounts were “Prepaid Expenses - Credit Cards,” “Accrued Revenue,” “Advance to Global NuTech, Inc.,” and “Accrued Expenses.” As part of the restatement process resulting from our review of such errors, we assessed which items should be corrected in our previously issued financial statements. The aggregate adjustments in our financial statements changed net income (loss) by $284,277 and $284,277 for the three and nine months ended September 30, 2012 respectively and total assets and total liabilities by $288,968 and $4,692 respectively.

Note 2 – Recently Issued Statements of Financial Accounting Standards

Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), and the SEC did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

Note 3 – Convertible Debt

Fishbone Note

On February 3, 2012 the Company issued convertible notes totaling $1,283,126 and promissory notes totaling $216,874 associated with the purchase of Fishbone Solutions, Inc. (“Fishbone”), on the closing date of the transaction, the Company issued individually to the equity-holders of Fishbone, promissory notes (also referred to herein as the “Notes”), in the proportional principal amounts directed by the equity-holders, in the aggregate amount of $1,500,000 together with interest thereon at the rate of 0.19% per annum, the principal and accrued interest thereon being convertible into shares of our common stock, par value $0.00001 per share (“Common Stock”), at $0.12 per share, with the issue and registration of such restricted Common Stock being subject to Rule 144 of the Securities Act of 1933 and any other pertinent rules of law regarding restricted securities.

	4

Such equity-holders will be limited to selling Common Stock converted from the Notes as follows:

(a)	zero percent (0%) until the one year anniversary; (February 3, 2013)
(b)	no more than fifteen percent (15%) of the principal amount and accrued interest of each Note from the one year anniversary date (February 3, 2013) until the day before the two year anniversary;
(c)	an additional fifteen percent (15%) from the two year anniversary (February 13, 2014) until the day before the three year anniversary of the Notes; (February 13, 2015) and
(d)	the entire remaining balance of accrued interest and principal thereon becoming due and the stock converted from the Notes become unrestricted for sale on the three year anniversary of the Notes, at which time all such limitations on sale will be lifted.

Notwithstanding, the equity-holders must commence any conversion process of any remaining balance on the Notes no later than the third year anniversary (February 3, 2015). The Notes may also become due and subject to rights of conversion in the event of a liquidation event or change of control.

Convertible debt at September 30, 2013 and December 31, 2012 consist of the following:

	September 30, 2013		December 31, 2012

Fishbone Note	$	1,283,126	$	1,283,126
Less: current maturities		-		-
Total convertible debt	$	1,283,126	$	1,283,126

Note 4 - Lines of Credit

On February 29, 2012, the Company entered into a $3 million receivables purchase agreement with a merchant bank. Under the agreement, the Company can sell all rights, title and interests in their accounts receivables for the total amount of the receivable invoices, less a discounting factor of 15% to the factoring company. The factoring company will remit a rebate to the Company of an amount between 14.30% and 10% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isn’t collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced. The Company retains the right to repurchase any of its invoices at any time from the merchant bank. The balance on the purchase agreement was $467,279 and $2,532,721 was available at September 30, 2013.

On September 14, 2012, the Company entered into a $1 million receivable purchase agreement with a merchant bank. Under the agreement, the Company can sell all rights, title and interests in their accounts receivables for the total amount of the receivable invoices, less a discounting factor of 15% to the factoring company. The factoring company will remit a rebate to the Company of an amount between 10% and 14.30% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isn’t collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced. The Company retains the right to repurchase any of its invoices at any time from the merchant bank. The balance on the purchase agreement was $579,984 and $420,016 was available at September 30, 2013. This agreement can be terminated at any time by the Company.

On September 18, 2013, the Company terminated its $1,250,000 line of credit with Patriot Bank and replaced the facility with a $1.5 million receivables purchase agreement. Under the agreement, the Company can sell all rights, title and interests in their accounts receivables for the total amount of the receivable invoices, less a discounting factor of 15% to the factoring company. The factoring company will remit a rebate to the Company of an amount between 10% and 14.30% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isn’t collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced. The Company retains the right to repurchase any of its invoices at any time from the merchant bank. The balance on the purchase agreement was $1,301,373 and $198,628 was available at September 30, 2013. This agreement can be terminated at any time by the Company.

Note 5 - Note Payable

The Company assumed a loan due to a former shareholder of Fishbone in 2012. The balance outstanding at September 30, 2013 is $161,135. In addition, the Company has financed its insurance which has an annual interest rate of 4.45%, and a balance of $322,945 as of September 30, 2013, which will be paid down via nine monthly payments of $35,883.

Note 6 - Stock Based Compensation

The stock based compensation cost that has been charged against income by the Company was $559,755 and $900,751 for the nine months ended September 30, 2013 and 2012, respectively, for common stock awarded by the Company. The Company entered into employment agreements with the chief executive officer, chief financial officer, and other key employees and granted in prior year 28,477,806 restricted shares vesting over 36 months. The fair value of the common stock on the date of grant was $0.09 per share or $2,563,002. During 2012, 3,600,000 restricted shares with a fair value of $324,000 were accelerated, thus the remaining 24,877,806 restricted shares with a fair value of $2,239,002 is being recognized over the remaining 24 months. During the nine months end September 30, 2013 the Company issued 6,219,452 restricted shares per vesting of the restricted shares and $932,918 stock compensation expense remains to be recognized.

	5

Note 7 - Loss Per Share

Basic loss per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the periods presented. The calculation of basic earnings per share for the nine months ended September 30, 2013 includes the weighted average of common shares outstanding. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock or convertible debt. Dilutive securities existed for the nine months ended September 30, 2013 and 2012 in the form of convertible preferred stock series A, and B and convertible debt.

Note 8 – Segment Information

During the quarter the Company had three reportable segments, International Plant Services, LLC, TGE Industrial Services, Inc. and Fishbone Solutions, Inc. segments.

International Plant Services, LLC

Our International Plant Services, LLC segment provides turnkey and specialty construction services to a wide range of industrial and energy sector clients. Our scope of services includes managing and executing major capital and turnaround projects, the provision of project management personnel, and other construction resources, like project planners/schedulers, engineers, welders, fitters and millwrights. A portion of the engineers and skilled craftsmen (welders, fitters, millwrights and electricians) are guest workers working with visas in the United States. These services are provided for projects of varying complexities, schedule durations, and budgets. Our project experience and expertise includes turnarounds, retrofits, modifications and expansions to existing facilities as well as the construction of new facilities in the refinery, petrochemical, mining and power industries.

TGE Industrial Services, Inc.

TGE Industrial Services Inc is a business unit of TGE that provides specialty construction and electrical services, including new construction, maintenance, turnarounds, commissioning, skid/module construction, inspection services, troubleshooting, project management. Services for process industry include capital project construction, multi-year programs, maintenance services programs, calibration, commissioning and startup services. The support services include constructability reviews, cost estimating and budget development, project and construction management.

Fishbone Solutions, Inc.

Fishbone Solutions, Inc. provides project management services, experienced management personnel and systems to ensure repeatable performance in the following services: program and project management, planning and scheduling, field design and drafting, P&ID updates, CAD work for fabrication, SCOPE Software for field planning, subcontract management, project management, project controls, material procurement and management, and construction related administration functions. We use enhanced digital photography in our SCOPE Development Process and we supply high quality teams to define, schedule and manage projects from "cradle to grave" nationwide.

	6

Fishbone Solutions, LTD was acquired by the Company on February 3, 2012 and the name was changed to Fishbone Solutions, Inc. effective March 28, 2012.

Segment revenue is as follows: (in $000’s)

Nine months ended September 30, 2013:

	International Plant Services		TGE Industrial Services Inc.		Fishbone Solutions		Totals
Revenues		10,844		3,011		6,396		20,251
Net income (loss)		(2,279)		679		601		(999)
Total Assets		5,922		1,212		4,389		11,523

Total assets after elimination is $8,822

Nine months ended September 30, 2012 (restated):

	International Plant Services		TGE Industrial Services Inc.		Fishbone Solutions		Totals
Revenues		20,706		1,175		3,529		25,410
Net income (loss)		(861)		88		292		(481)
Total Assets		8,227		32		2,919		11,178

Total assets after elimination is $8,478

Three months ended September 30, 2013:

	International Plant Services		TGE Industrial Services Inc		Fishbone Solutions		Totals
Revenues		3,140		1,092		1,959		6,191
Net income (loss)		(1,012)		201		58		(753)

Three months ended September 30, 2012 (restated):

	International Plant Services		TGE Industrial Services Inc		Fishbone Solutions Services		Totals
Revenues		5,830		826		1,424		8,080
Net income (loss)		(644)		86		342		(216)

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Note 9 – Contingencies

Various legal actions, claims, and other contingencies arise in the normal course of our business. Contingencies are recorded in the consolidated financial statements, or are otherwise disclosed, in accordance with ASC 450-20, “Loss Contingencies”. Specific reserves are provided for loss contingencies to the extent we conclude that a loss is both probable and estimable. We use a case-by-case evaluation of the underlying data and update our evaluation as further information becomes known, and the known claims as of this date are as follows:

Civil Action 4:12-CV-00055; Renato Acain et al vs. International Plant Services LLC et al.

International Plant Services, LLC (IPS) is a subsidiary of the Company. IPS has been sued in a matter presently pending in United States District Court, Southern District of Texas, Houston Division by fifty-five (55) Filipino workers alleging violations of RICO and other fiduciary errors. The suit was initially instituted on May 27, 2011 and removed to U.S. District Court on January 6, 2012. The plaintiff is seeking relief in the form of unspecified monetary relief. The United States District Court remanded the ACAIN case to the 113th District Court on September 15, 2012. Subsequently, Judge Patricia J. Kerrigan, 113th District Court, State of Texas, dismissed the case. The plaintiffs have appealed the order dismissing the lawsuit to the Texas Intermediate Court of Appeals. The Company continues to believe this lawsuit is without merit.

Cause No. 2012-23084; Ardent Services, LLC vs. David D. Mathews and Larry J. Laqua.

The Company has settled all matters related to the Company in the Ardent matter and will not continue providing the defense of its employees, Mr. Mathews (former President and CEO of the Company) and Mr. Laqua (Vice President of a Company business unit), in a matter involving their former employer, Ardent. Ardent is suing Mr. Mathews and Mr. Laqua in the 234th District Court, Harris County, Houston, Texas for breach of confidentiality and non-solicitation clauses in certain employment agreements, along with other breaches of duties allegedly owed. The Company intends to discontinue its sponsorship and no longer assist in the defense of Mr. Mathews and Mr. Laqua. The suit was initially instituted on April 20, 2012. The plaintiff is seeking relief in the form of injunctive and unspecified monetary relief. On October 24, 2013, the Company and the plaintiff entered into a Settlement Agreement whereby the plaintiff released the Company from all claims arising of this lawsuit. In exchange therefore, the Company agreed (i) to pay plaintiff the sum of $10,000 for attorneys fess and (ii) through December 31, 2014 to not directly or indirectly solicit any electrical and instrumention business from 11 facilities in the State of Texas.

Cause No. 4:13-cv-00505, Michael Rushing, Stephanie Rushing, Penn Rushing and Florence Rushing v. Texas Gulf Energy, Inc. on behalf of CS Bankers V, LLC, Texas Gulf Fabricators, Inc., David Mathews, Craig Crawford and Timothy Connolly, United States District Court for the Southern District of Texas.

The Company originally filed against the Rushings for a Declaratory Judgment alleging the Rushings failed to perform relative to a letter of intent with Texas Gulf Fabricators, Inc., or alternatively, that the letter of intent was not enforceable. The Company also filed a conversion action against the Rushings for removing property from a fabrication facility. The Rushing Family filed two separate counterclaims in the underlying state court actions before removing both actions to federal court in March 2013. On April 13, 2013, the Federal Court denied jurisdiction and remanded the matter back to the Texas State Court in the proceedings known as: (i) Cause No. 2013-00543; Texas Gulf Energy, Inc. on behalf of CS Bankers V, LLC and Texas Gulf Fabricators, Inc. vs. Penn Rushing, et al, in the 270 ^th Judicial District Court of Harris County and (ii) Cause No. 2013-004690; Texas Gulf Energy, Inc. vs. Penn Rushing, et al, in the 270 ^th Judicial District Court of Harris County. The Rushings' allegations include fraudulent inducement, negligent misrepresentation, breach of fiduciary duty, conversion, equitable estoppel and securities violations.

These claims relate to a letter of intent and foreclosure proceeding on a shop property in Baytown, Texas. The Rushings have not disclosed an amount of damages sought. The Company is required to pay for the defense of Mr. Mathews, Mr. Crawford and Mr. Connolly. On August 2, 2013 the 270 ^th Judicial District Court of Harris County, Texas granted the Company’s motion for summary judgment, and ruled the foreclosure was proper. The Company believes the Rushing's claims are without merit and intends to pursue its claims and defenses vigorously.

Based on our knowledge as of the date of this filing, we believe that any amounts exceeding our recorded accruals should not materially affect our financial position, results of operations or liquidity. It is the opinion of management that the eventual resolution of the above claims is unlikely to have a material adverse effect on our financial position or operating results. However, the results of litigation are inherently unpredictable and the possibility exists that the ultimate resolution of one or more of these matters could result in a negative material effect on our financial position, results of operations or liquidity.

Note 10 – Related Party Transactions

The Company's two majority owners as of September 30, 2013 maintain a 74.8% voting control of the Company. The Company utilizes corporations owned by such two majority stockholders that provide certain services to the Company’s construction services segment, which include the following:

	•	Testing
	•	Recruiting
	•	Mobilization
	•	Training
	•	Lodging
	•	Facilities
	•	Foreign payroll

	8

Management believes that the amounts paid for these services are at or below those rates that would be payable to unrelated third parties and that our shareholder interests are best served by continuing to use these services provided by companies who are related parties.

Due to related parties balance is $36,747 at September 30, 2013 and $204,561 at December 31, 2012; respectively; for services performed by affiliates of the Company.

The Company primarily utilizes a foreign corporation affiliated by common ownership for testing, recruiting, mobilization and training the foreign workforce for construction projects. TGE pays $1.40 per hour billed by these employees for all of these services.

Note 11 – Significant Customers

During the nine months ended September 30, 2013 the Company derived a significant amount of revenue from one customer comprising of 18%, compared to three customers during the nine months ended September 30, 2012 comprising of 15%, 11% and 9%.

Note 12 – Dispositions

On June 19, 2013 the Company signed a non-binding letter of intent (LOI) to sell the assets of three of the Company's subsidiaries or divisions for $5,000,000, consisting of $3,000,000 in cash and approximately $2 million in assumed liabilities. The LOI was non-binding and subject to a July 31, 2013 deadline for completion of due diligence and the execution of definitive binding agreements between the parties. The LOI expired on July 31, 2013 and discussions continue with several potential acquirers.

On September 20, 2013 the Company signed a letter of intent with CornerPost Capital Partners to sell the assets of three of the Company’s subsidiaries or divisions for $5,000,000, consisting of $3,000,000 in cash and approximately $2 million in assumed liabilities. It is management’s opinion that the process of selling these assets is proceeding as planned and that the transaction will be finalized in the fourth quarter of 2013.

Note 13 – Change in Management

Effective June 20, 2013, the Company entered into an agreement (the “ Agreement ”) with David Mathews pursuant to which the Company obtained the option to redeem Mr. Mathews’ Company issued capital stock in connection with Mr. Mathews’ resignation from his official positions and directorship with the Company to further his intention of working with the potential purchaser in continuing to lead these subsidiary companies. Pursuant to the Agreement, Mr. Mathews will continue to serve as CEO of one of the Company’s subsidiaries, TGE Industrial Services, Inc. As set forth in the Agreement, in the event that the Company does not consummate the transaction by July 31, 2013 or delay the transaction by mutual agreement, pursuant to which the purchase price consists of at least Five Million Dollars ($5,000,000) of which at least Three Million Dollars ($3,000,000) is a cash payment, the Company shall (a) have the option to purchase and redeem all of the shares of the Company’s capital stock held by Mr. Mathews by, (b) paying to Mr. Mathews a One Hundred Thousand Dollar ($100,000) cash payment (the “ Cash Payment ”) and executing and delivering a $900,000 promissory note in favor of Mr. Mathews, such promissory note having four percent (4%) interest, and to be satisfied in three (3) equal annual payments of Three Hundred Thousand Dollars ($300,000) commencing upon the one-year anniversary of the Cash Payment (the “ Redemption ”). The shares of capital stock subject to the redemption shall be delivered by Mr. Mathews in proportion to the payments received by him. Upon the payment of the Cash Payment to Mr. Mathews, he shall immediately be released from his non-compete obligations to the Company, and after sixty (60) days shall be released from his non-solicitation obligations to the Company. The Company and Mr. Mathews have agreed to extend the Company's option on a monty-to-month basis.

Note 14 – Subsequent Events

Subsequent to nine months ended September 30, 2013 the Company issued 691,050 restricted shares per vesting of the restricted shares (See Note 6) and $870,723 stock compensation expense remains to be recognized.

	9

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

CRITICAL ACCOUNTING ESTIMATES

There has been no material changes in our critical accounting policies from those reported in our fiscal 2012 Annual Report on Form 10-K/A filed with the SEC. For more information on our critical accounting policies, see Part II, Item 7 of our fiscal 2012 Annual Report on Form 10-K/A. The following section provides certain information with respect to our critical accounting estimates as of the close of our most recent quarterly period.

RESULTS OF OPERATIONS

Nine Months Ended September 30, 2013 Compared to the Nine Months Ended September 30, 2012

Consolidated

Our consolidated revenues were approximately $20.3 million for the nine months ended September 30, 2013 a decrease of $5.1 million, or 20%, from consolidated revenues of $25.4 million in the same period in the prior fiscal year. The decrease in consolidated revenues was a result of a decrease in headcount at International Plant Services, L.L.C. resulting from the unavailability of guest worker visas.

Consolidated net loss increased from approximately $481,000 in the nine months ended September 30, 2012 to $999,000 in the nine months ended September 30, 2013. The increase of $518,000 was primarily due to the decrease in revenue at IPS and increased interest expense and tax expenses. Gross profit decreased to $4.4 million or 21.7% in the nine months ended September 30, 2013 from $5.7 million or 22.4% in the same period a year earlier.

Our consolidated selling, general & administrative (“SG&A”) expenses were approximately $5.5 million in the nine months ended September 30, 2013 compared to $6.7 million in the same period a year earlier. The decrease of $1.2 million, or 18%, was primarily related to lower operating costs due to a reduction in additional finance and legal expenses related to acquisitions, decreased business volumes and strategic initiatives. SG&A expenses in the nine months ended September 30, 2013 included $559,755 in non-cash compensation compared to $900,751 in the same period of 2012. SG&A expense as a percentage of revenue increased 27% in the nine months ended September 30, 2013 compared to 26.4% in the same period in the prior fiscal year.

The effective tax rate of 17% for the nine months ended September 30, 2013 and was a benefit of 29% in the same period in 2012.

Three Months Ended September 30, 2013 Compared to the Three Months Ended September 30, 2012

Consolidated

Our consolidated revenues were approximately $6.2 million for the three months ended September 30, 2013 a decrease of $1.9 million, or 23%, from consolidated revenues of $8.1 million in the same period in the prior fiscal year. The decrease in consolidated revenues was a result of decreased headcount at International Plant Services, L.L.C. resulting from the unavailability of guest worker visas.

Consolidated gross profit decreased from approximately $1.5 million in the three months ended September 30, 2012 to $1.4 million in the three months ended September 30, 2013. The decrease of $100,000, or 7%, was primarily due to lower overall revenue. Gross margins increased to 23% in the three months ended September 30, 2013 from 18.5% in the same period a year earlier. The gross margin increased due to the quality of projects in industrial services and increased utilization.

Consolidated SG&A expenses were approximately $2.1 million in the three months ended September 30, 2013 compared to $2.2 million in the same period a year earlier. The decrease of $100,000, or 5%, was primarily related to lower operating costs in the third quarter of fiscal 2013 due to lower finance and legal expenses. SG&A expenses in the three months ended September 30, 2013 included $186,585 in non-cash compensation compared to $213,584 in the same quarter in the prior year. SG&A expense as a percentage of revenue increased to 33.9% in the three months ended September 30, 2013 compared to 27% in the same period in the prior fiscal year.

The effective tax rate was a benefit of 6.5% for the three months ended September 30, 2013 and was an expense of 22% in the same period in 2012.

Non-GAAP Financial Measure

EBITDA is a supplemental, non-GAAP financial measure. EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. We have presented EBITDA because it is used by the financial community as a method of measuring our performance and of evaluating the market value of companies considered to be in similar businesses. We believe that the line item on our Consolidated Statements of Income entitled “Net income” is the most directly comparable GAAP measure to EBITDA. Since EBITDA is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net earnings as an indicator of operating performance. EBITDA, as we calculate it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure is not necessarily a measure of our ability to fund our cash needs. As EBITDA excludes certain financial information compared with net income, the most directly comparable GAAP financial measure, users of this financial information should consider the type of events and transactions that are excluded. Our non-GAAP performance measure, EBITDA, has certain material limitations as follows:

	•	It does not include interest expense. Because we have borrowed money to finance our operations, pay commitment fees to maintain our credit facility, and incur fees to issue letters of credit under the credit facility, interest expense is a necessary and ongoing part of our costs and has assisted us in generating revenue. Therefore, any measure that excludes interest expense has material limitations.

	•	It does not include income taxes. Because the payment of income taxes is a necessary and ongoing part of our operations, any measure that excludes income taxes has material limitations.

	10

•

It does not include depreciation or amortization expense. Because we use capital and intangible assets to generate revenue, depreciation and amortization expense is a necessary element of our cost structure. Therefore, any measure that excludes depreciation or amortization expense has material limitations.

A reconciliation of EBITDA to net income follows: (in 000’s)

	Nine Months Ended
	September 30, 2013		September 30, 2012
				(restated)
Net loss	$	(999)	$	(481)
Interest expense		245		89
Income tax benefit		(205)		(201)
Depreciation and amortization		483		377
EBITDA	$	(476)	$	(216)

FINANCIAL CONDITION AND LIQUIDITY

Overview

We define liquidity as the ongoing ability to pay our liabilities as they become due, fund business operations and meet all monetary contractual obligations. Our primary sources of liquidity for the nine months ended September 30, 2013 was cash generated from operations, cash on hand at the beginning of the quarter and our accounts receivable line of credit. Cash on hand at September 30, 2013 totaled $483,807. We expect to fund our operations for the next twelve months through the use of cash generated from operations and existing cash balances. However, there can be no assurance that we will achieve our forecasted cash flow.

Factors that routinely impact our short-term liquidity and that may impact our long-term liquidity include, but are not limited to:

	•	Changes in working capital

	•	Contract terms that determine the timing of billings to customers and the collection of those billings

	•	Some cost plus and fixed price customer contracts are billed based on milestones which may require us to incur significant expenditures prior to collections from our customers.

	•	Time and material contracts are normally billed in arrears. Therefore, we are routinely required to carry these costs until they can be billed and collected.

	•	Some of our large construction projects may require significant retentions or security in the form of letters of credit.

•

Capital expenditures

Other factors that may impact both short and long-term liquidity include:

	·	Acquisitions of new businesses

	·	Inability to obtain guest worker visas for skilled craftsmen

	·	Strategic investments in new operations

	·	Contract disputes or collection issues

	11

Dividend Policy

We have not declared any dividends on our Common Stock since our inception. Any future dividend payments will depend on our financial condition, capital requirements and earnings as well as other factors the Company’s board of directors (the “Board”) may deem relevant. There are no dividend restrictions that limit our ability to pay dividends on our Common Stock in our Articles of Incorporation or Bylaws. Our governing statute, Chapter 78 of the Nevada Revised Statutes (the “NRS ”), does provide limitations on our ability to declare dividends. Section 78.288 of the NRS prohibits us from declaring dividends where, after giving effect to the distribution of the dividend:

(a) we would not be able to pay our debts as they become due in the usual course of business; or

(b) our total assets would be less than the sum of our total liabilities plus the amount that would be needed, if we were to be dissolved at the time of distribution, to satisfy the preferential rights upon dissolution of stockholders who may have preferential rights and whose preferential rights are superior to those receiving the distribution (except as otherwise specifically allowed by our Articles of Incorporation).

Outlook

We have seen what we consider to be a strong recovery in the underlying business environment in which the Company operates. We continue to see signs of recovery and growth and plan to capitalize on opportunities that are presented by the market as it recovers further in the coming months and years. There is a significant increased bidding activity domestically and internationally that we believe will bring additional revenue opportunities to the Company.

FORWARD-LOOKING STATEMENTS

These forward-looking statements include, among others, such things as:

	•	amounts and nature of future revenues and margins from our Construction Services and Fishbone Solutions segments;

	•	the likely impact of new or existing regulations or market forces on the demand for our services;

	•	expansion and other development trends of the industries we serve;

	•	our ability to generate sufficient cash from operations or to raise cash in order to meet our short and long-term capital requirements; and

	•	the risk factors discussed in our Form 10-K for the fiscal year ended December and listed from time to time in our filings with the Securities and Exchange Commission;

	•	the inherently uncertain outcome of current and future litigation;

	•	the adequacy of our reserves for contingencies;

	•	economic, market or business conditions in general and in the oil, gas and power industries in particular;

	•	changes in laws or regulations; and

	•	other factors, many of which are beyond our control.

	12

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

We are a “smaller reporting company” as defined by Rule 12b-2 of the Exchange Act and are not required to provide information under this item.

Item 4.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Securities Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based on the definition of “disclosure controls and procedures” in Rule 13a-15(e).

The disclosure controls and procedures are designed to provide reasonable, not absolute, assurance of achieving the desired control objectives. The Company’s management, including the Chief Executive Officer and Chief Financial Officer, does not expect that the disclosure controls and procedures or our internal controls over financial reporting will prevent or detect all errors or fraud. The design of our internal control system takes into account the fact that there are resource constraints and the benefits of controls must be weighed against the costs. Additionally, controls can be circumvented by the acts of key individuals, collusion or management override.

We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2013. We determined that our disclosure controls and procedures were effective as of September 30, 2013.

Changes in Internal Control Over Financial Reporting

We did effect changes in our internal controls over financial reporting during the period covered by this report that materially affected, or that would reasonably be likely to affect materially, our internal control over financial reporting. There have been changes made in our internal controls and financial reporting that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting subsequent to the quarter ended September 30, 2013, that effect our report for such period. Material weaknesses in our internal controls were identified by the Company’s management, and reported to the Board of Directors and auditors in May, 2013. These material weaknesses were primarily related to errors in accounting as the Company changed accounting systems in June of 2012, which resulted in a number of accounting entries that were not properly reversed in the quarter ended September 30, 2012. Additionally, there were related balance sheet accounts that were not checked and verified. The Company has implemented new processes regarding the reconciliation, review and reporting of the accounts on a monthly basis and assigned new qualified personnel to operate the Company’s new accounting system to prevent these accounting errors from re-occurring, but there can be no assurance that every error will be detected. Management has taken steps which it believes will ensure, to the extent reasonably possible, that this type of error will not occur in the future.

	13

PART II

OTHER INFORMATION

Item 1.

Legal Proceedings

Civil Action 4:12-CV-00055; Renato Acain et al vs. International Plant Services LLC et al.

International Plant Services, LLC (IPS) is a subsidiary of the Company. IPS has been sued in a matter presently pending in United States District Court, Southern District of Texas, Houston Division by fifty-five (55) Filipino workers alleging violations of RICO and other fiduciary errors. The suit was initially instituted on May 27, 2011 and removed to U.S. District Court on January 6, 2012. The plaintiff is seeking relief in the form of unspecified monetary relief. The United States District Court remanded the ACAIN case to the 113th District Court on September 15, 2012. Subsequently, Judge Patricia J. Kerrigan, 113th District Court, State of Texas, dismissed the case. The plaintiffs have appealed the order dismissing the lawsuit to the Texas Intermediate Court of Appeals. Tthe Company continues to believe this lawsuit is without merit.

Cause No. 2012-23084; Ardent Services, LLC vs. David D. Mathews and Larry J. Laqua.

The Company originally filed against the Rushings for a declaratory judgment alleging they had failed to perform relative to a letter of intent with Texas Gulf Fabricators, Inc., or alternatively, that the letter or intent was not enforceable. The Company also filed a conversion action against the Rushings for removing property from a fabrication facility. The Rushing Family filed two separate counterclaims in the underlying state court actions before removing both actions to federal court in March 2013. On April 13, 2013, the Federal Court denied jurisdiction and remanded the matter back to the Texas State Court in the proceedings known as: (i) Cause No. 2013-00543; Texas Gulf Energy, Inc. on behalf of CS Bankers V, LLC and Texas Gulf Fabricators, Inc. vs. Penn Rushing, et al, in the 270 ^th Judicial District Court of Harris County and (ii) Cause No. 2013-004690; Texas Gulf Energy, Inc. vs. Penn Rushing, et al, in the 270 ^th Judicial District Court of Harris County. The Rushings' allegations include fraudulent inducement, negligent misrepresentation, breach of fiduciary duty, conversion, equitable estoppel and securities violations. These claims relate to a letter of intent and foreclosure proceeding on a shop property in Baytown, Texas. The Rushings have not disclosed an amount of damages sought. The Company is required to pay for the defense of Mr. Mathews, Mr. Crawford and Mr. Connolly. On Friday, August 9,2013, the 270 ^th Judicial District Court of Harris County ruled in favor of the Company’s motion for Summary Judgment related to the foreclosure. The Company believes the Rushing's claims are without merit and intends to pursue its claims and defenses vigorously .

Based on our knowledge as of the date of this filing, we believe that any amounts exceeding our recorded accruals should not materially affect our financial position, results of operations or liquidity. It is the opinion of management that the eventual resolution of the above claim is unlikely to have a material adverse effect on our financial position or operating results. However, the results of litigation are inherently unpredictable and the possibility exists that the ultimate resolution of one or more of these matters could result in a negative material effect on our financial position, results or operations or liquidity.

	14

Item 1A.

Risk Factors

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide information under this item.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3.

Defaults Upon Senior Securities

None

Item 4.

Mine Safety Disclosures

Not applicable

Item 5.

Other Information

None

Item 6. Exhibits

EXHIBIT NO.		DESCRIPTION
31.1		Certification by Principal Executive Officer pursuant to Rule 13a-14(a)/ 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2		Certification by Principal Financial and Accounting Officer pursuant to Rule 13a-14(a)/ 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		Certification by Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2		Certification by Principal Financial and Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101		The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Cash Flows and (iv) related notes.

	15

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Texas Gulf Energy, Incorporated

Date: November 18, 2013	By:	/s/ Craig Crawford
		Craig Crawford Interim Chief Executive Officer; Chief Financial Officer; signing on behalf of the registrant and as the registrant’s Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

	16

Exhibit 31.1 – CEO 302 Certification

Texas Gulf Energy, Incorporated. Certification for Quarterly Report on Form 10-Q

I, Craig Crawford, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Texas Gulf Energy, Incorporated for the period ended September 30, 2013;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including our consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 18, 2013	/s/ Craig Crawford
	Craig Crawford
	Interim Chief Executive Officer and Interim Principal Executive Officer

Exhibit 31.2 – CFO 302 Certification

Texas Gulf Energy, Incorporated. Certification for Quarterly Report on Form 10-Q

I, Craig Crawford, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Texas Gulf Energy, Incorporated for the period ended September 30, 2013;

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 18, 2013	/s/ Craig Crawford
	Craig Crawford
	Chief Financial Officer and Principal
	Financial and Accounting Officer

Exhibit 32.1 – CEO 906 Certification

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Texas Gulf Energy, Incorporated (the “Company”) on Form 10-Q for the period ended September 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”) I, Craig Crawford, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Date: November 18, 2013	/s/ Craig Crawford
	Craig Crawford
	Interim Chief Executive Officer
	and Interim Principal Executive Officer

Exhibit 32.2 – CFO 906 Certification

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

1. The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Date: November 18, 2013	/s/ Craig Crawford
	Craig Crawford
	Chief Financial Officer and Principal
	Financial and Accounting Officer

v2.4.0.8

Dispositions
9 Months Ended

Sep. 30, 2013

Dispositions [Abstract]

Dispositions [Text Block]

Note 12 – Dispositions

On June 19, 2013 the Company signed a non-binding letter of intent (LOI) to sell the assets of three of the Company's subsidiaries or divisions for $5,000,000, consisting of $3,000,000 in cash and approximately $2 million in assumed liabilities. The LOI was non-binding and subject to a July 31, 2013 deadline for completion of due diligence and the execution of definitive binding agreements between the parties. The LOI expired on July 31, 2013 and discussions continue with several potential acquirers.

On September 20, 2013 the Company signed a letter of intent with CornerPost Capital Partners to sell the assets of three of the Company’s subsidiaries or divisions for $5,000,000, consisting of $3,000,000 in cash and approximately $2 million in assumed liabilities. It is management’s opinion that the process of selling these assets is proceeding as planned and that the transaction will be finalized in the fourth quarter of 2013.

v2.4.0.8

Consolidated Balance Sheets [Parenthetical] (USD $)

Sep. 30, 2013

Dec. 31, 2012

Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001

Common stock, shares authorized 500,000,000 500,000,000

Common stock, shares issued 58,485,479 49,300,156

Common stock, shares outstanding 58,485,479 49,300,156

Preferred stock, par value (in dollars per share) $ 0.00001 $ 0.00001

Preferred stock, shares authorized 100,000,000 100,000,000

Series A Preferred Stock [Member]

Preferred stock, issued 2,900,000 2,900,000

Preferred stock, outstanding 2,900,000 2,900,000

Series B Preferred Stock [Member]

Preferred stock, issued 10,000,000 10,000,000

Preferred stock, outstanding 10,000,000 10,000,000

v2.4.0.8

Note Payable
9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

Note 5 - Note Payable

The Company assumed a loan due to a former shareholder of Fishbone in 2012. The balance outstanding at September 30, 2013 is $161,135. In addition, the Company has financed its insurance which has an annual interest rate of 4.45%, and a balance of $322,945 as of September 30, 2013, which will be paid down via nine monthly payments of $35,883.

v2.4.0.8

Convertible Debt (Details Textual) (USD $)
1 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Feb. 03, 2012

Fishbone Solutions Ltd [Member]

Convertible Debt Disclosure [Line Items]

Convertible debt $ 1,283,126 $ 1,283,126 $ 1,283,126

Promissory Note Current 216,874

Debt Instrument, Face Amount $ 1,500,000

Debt Instrument, Interest Rate, Stated Percentage 0.19%

Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001 $ 0.00001

Debt Instrument, Convertible, Conversion Price (in dollars per share) $ 0.12

Debt Instrument Convertible Conversion Percentage In Next Twelve Months 0.00%

Debt Instrument Convertible Conversion Percentage In Two Years 15.00%

Debt Instrument Convertible Conversion Percentage In Three Years 15.00%

v2.4.0.8

Change in Management
9 Months Ended

Sep. 30, 2013

Change in Management [Abstract]

Change in Management [Text Block]

Note 13 – Change in Management

Effective June 20, 2013, the Company entered into an agreement (the “ Agreement ”) with David Mathews pursuant to which the Company obtained the option to redeem Mr. Mathews’ Company issued capital stock in connection with Mr. Mathews’ resignation from his official positions and directorship with the Company to further his intention of working with the potential purchaser in continuing to lead these subsidiary companies. Pursuant to the Agreement, Mr. Mathews will continue to serve as CEO of one of the Company’s subsidiaries, TGE Industrial Services, Inc. As set forth in the Agreement, in the event that the Company does not consummate the transaction by July 31, 2013 or delay the transaction by mutual agreement, pursuant to which the purchase price consists of at least Five Million Dollars ($5,000,000) of which at least Three Million Dollars ($3,000,000) is a cash payment, the Company shall (a) have the option to purchase and redeem all of the shares of the Company’s capital stock held by Mr. Mathews by, (b) paying to Mr. Mathews a One Hundred Thousand Dollar ($100,000) cash payment (the “ Cash Payment ”) and executing and delivering a $900,000 promissory note in favor of Mr. Mathews, such promissory note having four percent (4%) interest, and to be satisfied in three (3) equal annual payments of Three Hundred Thousand Dollars ($300,000) commencing upon the one-year anniversary of the Cash Payment (the “ Redemption ”). The shares of capital stock subject to the redemption shall be delivered by Mr. Mathews in proportion to the payments received by him. Upon the payment of the Cash Payment to Mr. Mathews, he shall immediately be released from his non-compete obligations to the Company, and after sixty (60) days shall be released from his non-solicitation obligations to the Company. The Company and Mr. Mathews have agreed to extend the Company's option on a monty-to-month basis.

v2.4.0.8

Stock Based Compensation (Details Textual) (USD $)
9 Months Ended 12 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Common Stock [Member]

Sep. 30, 2013

Restricted Stock [Member]

Dec. 31, 2012

Restricted Stock [Member]

Stock Based Compensation [Line Items]

Stock based compensation $ 559,755 $ 900,751 $ 870,723

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period 6,219,452 28,477,806

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value $ 0.09

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms 36 months

Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Grant Date Fair Value 2,563,002

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period 3,600,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value 324,000

Share Based Compensation Arrangement By Share Based Payment Award Other Than Option Not Yet Recognized 24,877,806

Share Based Compensation Arrangement By Share Based Payment Award Other Than Option Not Yet Recognized, Fair Value 2,239,002

Sharebased Compensation Arrangement By Sharebased Payment Award Other Than Options Not Yet Recognized Weighted Average Remaining Contractual Term 24 months

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total $ 932,918

v2.4.0.8

Note Payable (Details Textual) (USD $)
9 Months Ended

Sep. 30, 2013

Notes Payable [Line Items]

Notes Payable $ 161,135

Fishbone Solutions [Member] | Insurance [Member]

Notes Payable [Line Items]

Debt Instrument, Face Amount 322,945

Debt Instrument, Periodic Payment $ 35,883

Debt Instrument, Interest Rate, Stated Percentage 4.45%

v2.4.0.8

Change in Management (Details Textual)
9 Months Ended

Sep. 30, 2013

Change in Management [Line Items]

Change in Management, Description Effective June 20, 2013, the Company entered into an agreement (the “ Agreement ”) with David Mathews pursuant to which the Company obtained the option to redeem Mr. Mathews’ Company issued capital stock in connection with Mr. Mathews’ resignation from his official positions and directorship with the Company to further his intention of working with the potential purchaser in continuing to lead these subsidiary companies. Pursuant to the Agreement, Mr. Mathews will continue to serve as president of the Company’s subsidiaries, Fishbone Solutions Inc. and TGE Industrial Services, Inc. As set forth in the Agreement, in the event that the Company does not consummate the transaction by July 31, 2013 or delay the transaction by mutual agreement, pursuant to which the purchase price consists of at least Five Million Dollars ($5,000,000) of which at least Three Million Dollars ($3,000,000) is a cash payment, the Company shall (a) have the option to purchase and redeem all of the shares of the Company’s capital stock held by Mr. Mathews by, (b) paying to Mr. Mathews a One Hundred Thousand Dollar ($100,000) cash payment (the “ Cash Payment ”) and executing and delivering a $900,000 promissory note in favor of Mr. Mathews, such promissory note having four percent (4%) interest, and to be satisfied in three (3) equal annual payments of Three Hundred Thousand Dollars ($300,000) commencing upon the one-year anniversary of the Cash Payment (the “ Redemption ”). The shares of capital stock subject to the redemption shall be delivered by Mr. Mathews in proportion to the payments received by him. Upon the payment of the Cash Payment to Mr. Mathews, he shall immediately be released from his non-compete obligations to the Company, and after sixty (60) days shall be released from his non-solicitation obligations to the Company.

v2.4.0.8

Related Party Transactions (Details Textual) (USD $)

Sep. 30, 2013

Dec. 31, 2012

Related Party Transaction [Line Items]

Due to related parties, net $ 36,747 $ 204,561

TGE [Member]

Related Party Transaction [Line Items]

Rate Per Hour For Services Rendered 1.40

Two Majority Owners [Member]

Related Party Transaction [Line Items]

Percentage Of Voting Right Owned 74.80%

v2.4.0.8

Lines of Credit (Details Textual) (USD $)
1 Months Ended 1 Months Ended 1 Months Ended

Sep. 18, 2013

Patriot Bank [Member]

Feb. 29, 2012

Loan One [Member]

Sep. 30, 2013

Loan One [Member]

Merchant Bank [Member]

Feb. 29, 2012

Loan One [Member]

Merchant Bank [Member]

Sep. 14, 2012

Loan Two [Member]

Sep. 30, 2013

Loan Two [Member]

Merchant Bank [Member]

Sep. 14, 2012

Loan Two [Member]

Merchant Bank [Member]

Sep. 18, 2013

Loan Three [Member]

Sep. 30, 2013

Loan Three [Member]

Patriot Bank [Member]

Sep. 18, 2013

Loan Three [Member]

Patriot Bank [Member]

Line of Credit Facility [Line Items]

Line Of Credit Facility Purchase Agreement $ 3,000,000 $ 1,000,000 $ 1,500,000

Line Of Credit Facility Discounting Factor 15.00% 15.00% 15.00%

Discounting Factor Of Receivable Invoices Maximum 14.30% 14.30% 14.30%

Discounting Factor Of Receivable Invoices Minimum 10.00% 10.00% 10.00%

Line of Credit Facility, Remaining Borrowing Capacity 2,532,721 420,016 198,628

Line of Credit Facility, Interest Rate Description The factoring company will remit a rebate to the Company of an amount between 14.30% and 10% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isnt collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced. The factoring company will remit a rebate to the Company of an amount between 10% and 14.30% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isnt collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced. The factoring company will remit a rebate to the Company of an amount between 10% and 14.30% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isnt collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced.

Line of Credit Facility, Current Borrowing Capacity 467,279 579,984 1,301,373

Line Of Credit Facility Renewal $ 1,250,000

v2.4.0.8

Basis of Presentation
9 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1 – Basis of Presentation

The consolidated financial statements include the accounts of Texas Gulf Energy, Incorporated (“TGE,” “we,” “our,” “us,” “its” or the “Company”) and its subsidiaries, all of which are wholly owned. Intercompany balances and transactions have been eliminated in consolidation.

The accompanying unaudited consolidated financial statements have been prepared in accordance with Rule 8-03 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission and do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. However, the information furnished reflects all adjustments, consisting of normal recurring adjustments and other adjustments described herein that are, in the opinion of management, necessary for a fair statement of the results for the interim periods.

The accompanying unaudited consolidated financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2012, included in the Company’s Annual Report on Form 10-K for the year then ended, as amended. The Company’s business is cyclical due to the scope and timing of projects released by its customer base. Planned maintenance projects at customer facilities are typically scheduled in the spring and the fall when the demand for energy is lower. Our business can also be affected by seasonal weather conditions including hurricanes, snowstorms, abnormally low or high temperatures or other inclement weather, which can result in reduced activities. Accordingly, results for any interim period may not necessarily be indicative of future operating results.

Restatement of Financial Information

Texas Gulf Energy, Incorporated (“Company”) has restated its unaudited consolidated financial statements for the three and nine months ended September 30, 2012 to correct its accounting for errors that occurred during this quarter. This statement is necessary due to material weaknesses in the Company’s internal controls that resulted in accounting errors that occurred when the Company failed to reconcile certain accounts. The effected accounts were “Prepaid Expenses - Credit Cards,” “Accrued Revenue,” “Advance to Global NuTech, Inc.,” and “Accrued Expenses.” As part of the restatement process resulting from our review of such errors, we assessed which items should be corrected in our previously issued financial statements. The aggregate adjustments in our financial statements changed net income (loss) by $284,277 and $284,277 for the three and nine months ended September 30, 2012 respectively and total assets and total liabilities by $288,968 and $4,692 respectively.

v2.4.0.8

Convertible Debt
9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 3 – Convertible Debt

Fishbone Note

On February 3, 2012 the Company issued convertible notes totaling $1,283,126 and promissory notes totaling $216,874 associated with the purchase of Fishbone Solutions, Inc. (“Fishbone”), on the closing date of the transaction, the Company issued individually to the equity-holders of Fishbone, promissory notes (also referred to herein as the “Notes”), in the proportional principal amounts directed by the equity-holders, in the aggregate amount of $1,500,000 together with interest thereon at the rate of 0.19% per annum, the principal and accrued interest thereon being convertible into shares of our common stock, par value $0.00001 per share (“Common Stock”), at $0.12 per share, with the issue and registration of such restricted Common Stock being subject to Rule 144 of the Securities Act of 1933 and any other pertinent rules of law regarding restricted securities.

Such equity-holders will be limited to selling Common Stock converted from the Notes as follows:

(a)

zero percent (0%) until the one year anniversary; (February 3, 2013)

(b)

no more than fifteen percent (15%) of the principal amount and accrued interest of each Note from the one year anniversary date (February 3, 2013) until the day before the two year anniversary;

(c)

an additional fifteen percent (15%) from the two year anniversary (February 13, 2014) until the day before the three year anniversary of the Notes; (February 13, 2015) and

(d)

the entire remaining balance of accrued interest and principal thereon becoming due and the stock converted from the Notes become unrestricted for sale on the three year anniversary of the Notes, at which time all such limitations on sale will be lifted.

Notwithstanding, the equity-holders must commence any conversion process of any remaining balance on the Notes no later than the third year anniversary (February 3, 2015). The Notes may also become due and subject to rights of conversion in the event of a liquidation event or change of control.

Convertible debt at September 30, 2013 and December 31, 2012 consist of the following:

September 30,
2013

December 31,
2012

Fishbone Note

$

1,283,126

$

1,283,126

Less: current maturities

-

-

Total convertible debt

$

1,283,126

$

1,283,126

v2.4.0.8

Stock Based Compensation
9 Months Ended

Sep. 30, 2013

Share-Based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 6 - Stock Based Compensation

The stock based compensation cost that has been charged against income by the Company was $559,755 and $900,751 for the nine months ended September 30, 2013 and 2012, respectively, for common stock awarded by the Company. The Company entered into employment agreements with the chief executive officer, chief financial officer, and other key employees and granted in prior year 28,477,806 restricted shares vesting over 36 months. The fair value of the common stock on the date of grant was $0.09 per share or $2,563,002. During 2012, 3,600,000 restricted shares with a fair value of $324,000 were accelerated, thus the remaining 24,877,806 restricted shares with a fair value of $2,239,002 is being recognized over the remaining 24 months. During the nine months end September 30, 2013 the Company issued 6,219,452 restricted shares per vesting of the restricted shares and $932,918 stock compensation expense remains to be recognized.

v2.4.0.8

Lines of Credit
9 Months Ended

Sep. 30, 2013

Line Of Credit Facility [Abstract]

Line Of Credit Facilities [Text Block]

Note 4 - Lines of Credit

On February 29, 2012, the Company entered into a $3 million receivables purchase agreement with a merchant bank. Under the agreement, the Company can sell all rights, title and interests in their accounts receivables for the total amount of the receivable invoices, less a discounting factor of 15% to the factoring company. The factoring company will remit a rebate to the Company of an amount between 14.30% and 10% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isn’t collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced. The Company retains the right to repurchase any of its invoices at any time from the merchant bank. The balance on the purchase agreement was $467,279 and $2,532,721 was available at September 30, 2013.

On September 14, 2012, the Company entered into a $1 million receivable purchase agreement with a merchant bank. Under the agreement, the Company can sell all rights, title and interests in their accounts receivables for the total amount of the receivable invoices, less a discounting factor of 15% to the factoring company. The factoring company will remit a rebate to the Company of an amount between 10% and 14.30% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isn’t collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced. The Company retains the right to repurchase any of its invoices at any time from the merchant bank. The balance on the purchase agreement was $579,984 and $420,016 was available at September 30, 2013. This agreement can be terminated at any time by the Company.

On September 18, 2013, the Company terminated its $1,250,000 line of credit with Patriot Bank and replaced the facility with a $1.5 million receivables purchase agreement. Under the agreement, the Company can sell all rights, title and interests in their accounts receivables for the total amount of the receivable invoices, less a discounting factor of 15% to the factoring company. The factoring company will remit a rebate to the Company of an amount between 10% and 14.30% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isn’t collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced. The Company retains the right to repurchase any of its invoices at any time from the merchant bank. The balance on the purchase agreement was $1,301,373 and $198,628 was available at September 30, 2013. This agreement can be terminated at any time by the Company.

v2.4.0.8

Segment Information (Details) (USD $)
3 Months Ended 9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues $ 6,191,014 $ 8,080,254 $ 20,251,057 $ 25,410,018

Net income (loss) (753,543) (216,444) (999,311) (480,694)

Total Assets 11,523,000 11,178,000 11,523,000 11,178,000

International Plant Services [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues 3,140,000 5,830,000 10,844,000 20,706,000

Net income (loss) (1,012,000) (644,000) (2,279,000) (861,000)

Total Assets 5,922,000 8,227,000 5,922,000 8,227,000

TGE Industrial Services Inc [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues 1,092,000 826,000 3,011,000 1,175,000

Net income (loss) 201,000 86,000 679,000 88,000

Total Assets 1,212,000 32,000 1,212,000 32,000

Fishbone Solutions [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues 1,959,000 1,424,000 6,396,000 3,529,000

Net income (loss) 58,000 342,000 601,000 292,000

Total Assets $ 4,389,000 $ 2,919,000 $ 4,389,000 $ 2,919,000

v2.4.0.8

Significant Customers (Details Textual)
9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Customer One [Member]

Concentration Risk [Line Items]

Concentration Risk, Percentage 18.00% 15.00%

Customer Two [Member]

Concentration Risk [Line Items]

Concentration Risk, Percentage 11.00%

Customer Three [Member]

Concentration Risk [Line Items]

Concentration Risk, Percentage 9.00%

v2.4.0.8

Consolidated Balance Sheets (USD $)

Sep. 30, 2013

Dec. 31, 2012

Assets

Cash and cash equivalents $ 483,807 $ 394,306

Accounts receivable, net 5,319,960 6,506,920

Federal income taxes receivable 303,746 115,224

Deferred income taxes 245,000 130,000

Prepaid expenses and other current assets 545,345 762,211

Total current assets 6,897,858 7,908,661

Property and equipment, net 988,282 1,431,741

Goodwill and other assets 935,947 942,227

Total assets 8,822,087 10,282,629

Liabilities and stockholders' equity

Accounts payable 1,373,726 1,292,686

Accrued liabilities 604,774 1,353,044

Due to related parties, net 36,747 204,561

Lines of credit 2,037,713 2,623,552

Note payable 484,080 233,135

Total current liabilities 4,537,040 5,706,978

Convertible debt 1,283,126 1,283,126

Deferred federal income tax 0 29,000

Total liabilities 5,820,166 7,019,104

Commitments and Contingencies

Stockholders' equity:

Common stock - $.00001 par value; 500,000,000 shares authorized; 58,485,479 shares issued and outstanding as of September 30, 2013, and 49,300,156December 31, 2012 585 493

Additional paid in capital 3,958,804 3,221,189

Retained earnings (deficit) (957,597) 41,714

Total stockholders' equity 3,001,921 3,263,525

Total liabilities and stockholders' equity 8,822,087 10,282,629

Series A Preferred Stock [Member]

Stockholders' equity:

Preferred stock - par value of $.00001; 100,000,000 shares authorized; 29 29

Series B Preferred Stock [Member]

Stockholders' equity:

Preferred stock - par value of $.00001; 100,000,000 shares authorized; $ 100 $ 100

v2.4.0.8

Contingencies
9 Months Ended

Sep. 30, 2013

Loss Contingency [Abstract]

Contingencies Disclosure [Text Block]

Note 9 – Contingencies

Various legal actions, claims, and other contingencies arise in the normal course of our business. Contingencies are recorded in the consolidated financial statements, or are otherwise disclosed, in accordance with ASC 450-20, “Loss Contingencies”. Specific reserves are provided for loss contingencies to the extent we conclude that a loss is both probable and estimable. We use a case-by-case evaluation of the underlying data and update our evaluation as further information becomes known, and the known claims as of this date are as follows:

Civil Action 4:12-CV-00055; Renato Acain et al vs. International Plant Services LLC et al.

International Plant Services, LLC (IPS) is a subsidiary of the Company. IPS has been sued in a matter presently pending in United States District Court, Southern District of Texas, Houston Division by fifty-five (55) Filipino workers alleging violations of RICO and other fiduciary errors. The suit was initially instituted on May 27, 2011 and removed to U.S. District Court on January 6, 2012. The plaintiff is seeking relief in the form of unspecified monetary relief. The United States District Court remanded the ACAIN case to the 113th District Court on September 15, 2012. Subsequently, Judge Patricia J. Kerrigan, 113th District Court, State of Texas, dismissed the case. The plaintiffs have appealed the order dismissing the lawsuit to the Texas Intermediate Court of Appeals. The Company continues to believe this lawsuit is without merit.

Cause No. 2012-23084; Ardent Services, LLC vs. David D. Mathews and Larry J. Laqua.

The Company has settled all matters related to the Company in the Ardent matter and will not continue providing the defense of its employees, Mr. Mathews (former President and CEO of the Company) and Mr. Laqua (Vice President of a Company business unit), in a matter involving their former employer, Ardent. Ardent is suing Mr. Mathews and Mr. Laqua in the 234th District Court, Harris County, Houston, Texas for breach of confidentiality and non-solicitation clauses in certain employment agreements, along with other breaches of duties allegedly owed. The Company intends to discontinue its sponsorship and no longer assist in the defense of Mr. Mathews and Mr. Laqua. The suit was initially instituted on April 20, 2012. The plaintiff is seeking relief in the form of injunctive and unspecified monetary relief. On October 24, 2013, the Company and the plaintiff entered into a Settlement Agreement whereby the plaintiff released the Company from all claims arising of this lawsuit. In exchange therefore, the Company agreed (i) to pay plaintiff the sum of $10,000 for attorneys fess and (ii) through December 31, 2014 to not directly or indirectly solicit any electrical and instrumention business from 11 facilities in the State of Texas.

Cause No. 4:13-cv-00505, Michael Rushing, Stephanie Rushing, Penn Rushing and Florence Rushing v. Texas Gulf Energy, Inc. on behalf of CS Bankers V, LLC, Texas Gulf Fabricators, Inc., David Mathews, Craig Crawford and Timothy Connolly, United States District Court for the Southern District of Texas.

The Company originally filed against the Rushings for a Declaratory Judgment alleging the Rushings failed to perform relative to a letter of intent with Texas Gulf Fabricators, Inc., or alternatively, that the letter of intent was not enforceable. The Company also filed a conversion action against the Rushings for removing property from a fabrication facility. The Rushing Family filed two separate counterclaims in the underlying state court actions before removing both actions to federal court in March 2013. On April 13, 2013, the Federal Court denied jurisdiction and remanded the matter back to the Texas State Court in the proceedings known as: (i) Cause No. 2013-00543; Texas Gulf Energy, Inc. on behalf of CS Bankers V, LLC and Texas Gulf Fabricators, Inc. vs. Penn Rushing, et al, in the 270 ^th Judicial District Court of Harris County and (ii) Cause No. 2013-004690; Texas Gulf Energy, Inc. vs. Penn Rushing, et al, in the 270 ^th Judicial District Court of Harris County. The Rushings' allegations include fraudulent inducement, negligent misrepresentation, breach of fiduciary duty, conversion, equitable estoppel and securities violations.

These claims relate to a letter of intent and foreclosure proceeding on a shop property in Baytown, Texas. The Rushings have not disclosed an amount of damages sought. The Company is required to pay for the defense of Mr. Mathews, Mr. Crawford and Mr. Connolly. On August 2, 2013 the 270 ^th Judicial District Court of Harris County, Texas granted the Company’s motion for summary judgment, and ruled the foreclosure was proper. The Company believes the Rushing's claims are without merit and intends to pursue its claims and defenses vigorously.

Based on our knowledge as of the date of this filing, we believe that any amounts exceeding our recorded accruals should not materially affect our financial position, results of operations or liquidity. It is the opinion of management that the eventual resolution of the above claims is unlikely to have a material adverse effect on our financial position or operating results. However, the results of litigation are inherently unpredictable and the possibility exists that the ultimate resolution of one or more of these matters could result in a negative material effect on our financial position, results of operations or liquidity.

v2.4.0.8

Consolidated Statements of Cash Flows (USD $)
9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Cash flow from operating activities

Net loss $ (999,311) $ (480,694)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation 482,561 377,004

Stock based compensation 559,755 900,751

Gain on sale of assets 0 (43,192)

Gain on sale of business 0 (348,001)

Changes in working capital accounts:

Change in accounts receivables 1,186,960 132,756

Change in federal income taxes receivable (188,522) (631,389)

Change in prepaid expenses and other current assets 223,146 175,449

Change in accounts payable 81,039 553,723

Change in deferred tax asset (115,000) 0

Change in accrued liabilities (570,317) (1,974,602)

Change in deferred tax liability (29,000) 0

Change in due to related parties (167,814) (1,290,574)

Net cash provided by (used in) operating activities 463,497 (2,628,769)

Cash flows from investing activities

Purchase of property and equipment, net (39,102) (891,514)

Acquisitions 0 (371,022)

Disposal of business 0 12,661

Proceeds from sale of assets 0 90,384

Net cash used in investing activities (39,102) (1,159,491)

Cash flows from financing activities

Proceeds from notes payable, net 250,945 0

Payment on line of credit, net (585,839) (223,894)

Line of credit, net 0 1,446,889

Net cash provided by (used in) financing activities (334,894) 1,222,995

Net change in cash and cash equivalents 89,501 (2,565,265)

Cash and cash equivalents:

Beginning 394,306 2,747,880

Ending 483,807 182,615

Supplemental disclosure of cash flow information

Federal income tax 0 194,414

Issuance of common stock for payment of accounts payable 177,952 0

Interest paid $ 244,797 $ 89,086

v2.4.0.8

Consolidated Statements of Operations (USD $)
3 Months Ended 9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Revenues $ 6,191,014 $ 8,080,254 $ 20,251,057 $ 25,410,018

Cost of revenues 4,809,909 6,569,790 15,825,536 19,741,646

Gross profit 1,381,105 1,510,464 4,425,521 5,668,372

General and administrative expense 2,106,837 2,175,442 5,518,804 6,666,469

Loss from operations (725,732) (664,978) (1,093,283) (998,097)

Other income (expense)

Other income (expense) (881) 404,820 133,495 405,502

Interest expense (79,738) (16,630) (244,797) (89,086)

Total other income (expense) (80,619) 388,190 (111,302) 316,416

Loss before income tax (806,351) (276,788) (1,204,585) (681,681)

Income tax benefit 52,808 60,344 205,274 200,987

Net loss $ (753,543) $ (216,444) $ (999,311) $ (480,694)

Loss per share

Basic (in dollars per share) $ (0.01) $ 0.00 $ (0.02) $ (0.01)

Diluted (in dollars per share) $ (0.01) $ 0.00 $ (0.02) $ (0.01)

Weighted average shares outstanding

Basic (in shares) 56,612,302 48,847,954 52,913,541 47,309,704

Diluted (in shares) 56,612,302 48,847,954 52,913,541 47,309,704

v2.4.0.8

Segment Information (Details Textual) (USD $)

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Segment Reporting Information [Line Items]

Segment Reporting Net Assets After Elimination $ 8,822,087 $ 10,282,629 $ 8,478,000

v2.4.0.8

Convertible Debt (Details) (USD $)

Sep. 30, 2013

Dec. 31, 2012

Debt Instrument [Line Items]

Fishbone Note $ 1,283,126 $ 1,283,126

Less: current maturities 0 0

Total convertible debt $ 1,283,126 $ 1,283,126

v2.4.0.8

Subsequent Events (Details Textual) (USD $)
9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Subsequent Event [Line Items]

Allocated Share-based Compensation Expense, Total $ 559,755 $ 900,751

Restricted Stock [Member]

Subsequent Event [Line Items]

Stock Issued During Period, Shares, Issued for Services 691,050

Allocated Share-based Compensation Expense, Total $ 870,723

v2.4.0.8

Segment Information
9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 8 – Segment Information

During the quarter the Company had three reportable segments, International Plant Services, LLC, TGE Industrial Services, Inc. and Fishbone Solutions, Inc. segments.

International Plant Services, LLC

Our International Plant Services, LLC segment provides turnkey and specialty construction services to a wide range of industrial and energy sector clients. Our scope of services includes managing and executing major capital and turnaround projects, the provision of project management personnel, and other construction resources, like project planners/schedulers, engineers, welders, fitters and millwrights. A portion of the engineers and skilled craftsmen (welders, fitters, millwrights and electricians) are guest workers working with visas in the United States. These services are provided for projects of varying complexities, schedule durations, and budgets. Our project experience and expertise includes turnarounds, retrofits, modifications and expansions to existing facilities as well as the construction of new facilities in the refinery, petrochemical, mining and power industries.

TGE Industrial Services, Inc.

TGE Industrial Services Inc is a business unit of TGE that provides specialty construction and electrical services, including new construction, maintenance, turnarounds, commissioning, skid/module construction, inspection services, troubleshooting, project management. Services for process industry include capital project construction, multi-year programs, maintenance services programs, calibration, commissioning and startup services. The support services include constructability reviews, cost estimating and budget development, project and construction management.

Fishbone Solutions, Inc.

Fishbone Solutions, Inc. provides project management services, experienced management personnel and systems to ensure repeatable performance in the following services: program and project management, planning and scheduling, field design and drafting, P&ID updates, CAD work for fabrication, SCOPE Software for field planning, subcontract management, project management, project controls, material procurement and management, and construction related administration functions. We use enhanced digital photography in our SCOPE Development Process and we supply high quality teams to define, schedule and manage projects from "cradle to grave" nationwide.

Fishbone Solutions, LTD was acquired by the Company on February 3, 2012 and the name was changed to Fishbone Solutions, Inc. effective March 28, 2012.

Segment revenue is as follows: (in $000’s)

Nine months ended September 30, 2013:

International
Plant
Services

TGE
Industrial
Services Inc.

Fishbone
Solutions

Totals

Revenues

10,844

3,011

6,396

20,251

Net income (loss)

(2,279)

679

601

(999)

Total Assets

5,922

1,212

4,389

11,523

Total assets after elimination is $8,822

Nine months ended September 30, 2012 (restated):

International
Plant
Services

TGE
Industrial
Services Inc.

Fishbone
Solutions

Totals

Revenues

20,706

1,175

3,529

25,410

Net income (loss)

(861)

88

292

(481)

Total Assets

8,227

32

2,919

11,178

Total assets after elimination is $8,478

Three months ended September 30, 2013:

International
Plant
Services

TGE
Industrial
Services Inc

Fishbone
Solutions

Totals

Revenues

3,140

1,092

1,959

6,191

Net income (loss)

(1,012)

201

58

(753)

Three months ended September 30, 2012 (restated):

International
Plant
Services

TGE
Industrial
Services Inc

Fishbone
Solutions
Services

Totals

Revenues

5,830

826

1,424

8,080

Net income (loss)

(644)

86

342

(216)

v2.4.0.8

Contingencies (Details Textual) (Subsequent Event [Member], USD $)
1 Months Ended

Oct. 24, 2013

Subsequent Event [Member]

Gain Contingencies [Line Items]

Legal Fees $ 10,000

v2.4.0.8

Significant Customers
9 Months Ended

Sep. 30, 2013

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

Note 11 – Significant Customers

During the nine months ended September 30, 2013 the Company derived a significant amount of revenue from one customer comprising of 18%, compared to three customers during the nine months ended September 30, 2012 comprising of 15%, 11% and 9%.

v2.4.0.8

Loss Per Share
9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 7 - Loss Per Share

Basic loss per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the periods presented. The calculation of basic earnings per share for the nine months ended September 30, 2013 includes the weighted average of common shares outstanding. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock or convertible debt. Dilutive securities existed for the nine months ended September 30, 2013 and 2012 in the form of convertible preferred stock series A, and B and convertible debt.

v2.4.0.8

Recently Issued Statements of Financial Accounting Standards
9 Months Ended

Sep. 30, 2013

Accounting Changes and Error Corrections [Abstract]

Accounting Changes and Error Corrections [Text Block]

Note 2 – Recently Issued Statements of Financial Accounting Standards

Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), and the SEC did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

v2.4.0.8

Dispositions (Details Textual) (USD $)

Sep. 30, 2013

Jun. 19, 2013

Dispositions [Line Items]

Reorganization Value, Net Realizable Value of Asset Dispositions $ 3,000,000 $ 3,000,000

Assumed Liabilities For Disposition Of Assets 2,000,000 2,000,000

Reorganization Value, Total $ 5,000,000 $ 5,000,000

v2.4.0.8

Subsequent Events
9 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Note 14 – Subsequent Events

Subsequent to nine months ended September 30, 2013 the Company issued 691,050 restricted shares per vesting of the restricted shares (See Note 6) and $870,723 stock compensation expense remains to be recognized.

v2.4.0.8

Related Party Transactions
9 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Note 10 – Related Party Transactions

The Company's two majority owners as of September 30, 2013 maintain a 74.8% voting control of the Company. The Company utilizes corporations owned by such two majority stockholders that provide certain services to the Company’s construction services segment, which include the following:

•

Testing

•

Recruiting

•

Mobilization

•

Training

•

Lodging

•

Facilities

•

Foreign payroll

Management believes that the amounts paid for these services are at or below those rates that would be payable to unrelated third parties and that our shareholder interests are best served by continuing to use these services provided by companies who are related parties.

Due to related parties balance is $36,747 at September 30, 2013 and $204,561 at December 31, 2012; respectively; for services performed by affiliates of the Company.

The Company primarily utilizes a foreign corporation affiliated by common ownership for testing, recruiting, mobilization and training the foreign workforce for construction projects. TGE pays $1.40 per hour billed by these employees for all of these services.

v2.4.0.8

Basis of Presentation (Details Textual) (USD $)
3 Months Ended 9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Basis of Presentation [Line Items]

Net Income (Loss) Attributable to Parent, Total $ (753,543) $ (216,444) $ (999,311) $ (480,694)

Assets, Total 8,822,087 8,478,000 8,822,087 8,478,000 10,282,629

Liabilities, Total 5,820,166 5,820,166 7,019,104

Restatement Adjustment [Member]

Basis of Presentation [Line Items]

Net Income (Loss) Attributable to Parent, Total 284,277 284,277

Assets, Total 288,968 288,968

Liabilities, Total $ 4,692 $ 4,692

v2.4.0.8

Convertible Debt (Tables)
9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

Convertible debt at September 30, 2013 and December 31, 2012 consist of the following:

September 30,
2013

December 31,
2012

Fishbone Note

$

1,283,126

$

1,283,126

Less: current maturities

-

-

Total convertible debt

$

1,283,126

$

1,283,126

v2.4.0.8

Document And Entity Information
9 Months Ended

Sep. 30, 2013

Nov. 15, 2013

Document Information [Line Items]

Document Type 10-Q

Amendment Flag false

Document Period End Date Sep. 30, 2013

Document Fiscal Year Focus 2013

Document Fiscal Period Focus Q3

Trading Symbol TXGE

Entity Common Stock, Shares Outstanding 68,776,636

Entity Registrant Name Texas Gulf Energy Inc

Entity Central Index Key 0001429627

Current Fiscal Year End Date --12-31

Entity Filer Category Smaller Reporting Company

v2.4.0.8

Segment Information (Tables)
9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Segment revenue is as follows: (in $000’s)

Nine months ended September 30, 2013:

International
Plant
Services

TGE
Industrial
Services Inc.

Fishbone
Solutions

Totals

Revenues

10,844

3,011

6,396

20,251

Net income (loss)

(2,279)

679

601

(999)

Total Assets

5,922

1,212

4,389

11,523

Total assets after elimination is $8,822

Nine months ended September 30, 2012 (restated):

International
Plant
Services

TGE
Industrial
Services Inc.

Fishbone
Solutions

Totals

Revenues

20,706

1,175

3,529

25,410

Net income (loss)

(861)

88

292

(481)

Total Assets

8,227

32

2,919

11,178

Total assets after elimination is $8,478

Three months ended September 30, 2013:

International
Plant
Services

TGE
Industrial
Services Inc

Fishbone
Solutions

Totals

Revenues

3,140

1,092

1,959

6,191

Net income (loss)

(1,012)

201

58

(753)

Three months ended September 30, 2012 (restated):

International
Plant
Services

TGE
Industrial
Services Inc

Fishbone
Solutions
Services

Totals

Revenues

5,830

826

1,424

8,080

Net income (loss)

(644)

86

342

(216)

Consolidated Balance Sheets [Parenthetical] (USD $)	Sep. 30, 2013	Dec. 31, 2012
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	58,485,479	49,300,156
Common stock, shares outstanding	58,485,479	49,300,156
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	100,000,000	100,000,000
Series A Preferred Stock [Member]
Preferred stock, issued	2,900,000	2,900,000
Preferred stock, outstanding	2,900,000	2,900,000
Series B Preferred Stock [Member]
Preferred stock, issued	10,000,000	10,000,000
Preferred stock, outstanding	10,000,000	10,000,000

Convertible Debt (Details Textual) (USD $)			1 Months Ended
Convertible Debt (Details Textual) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Feb. 03, 2012 Fishbone Solutions Ltd [Member]
Convertible Debt Disclosure [Line Items]
Convertible debt	$ 1,283,126	$ 1,283,126	$ 1,283,126
Promissory Note Current			216,874
Debt Instrument, Face Amount			$ 1,500,000
Debt Instrument, Interest Rate, Stated Percentage			0.19%
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001	$ 0.00001
Debt Instrument, Convertible, Conversion Price (in dollars per share)			$ 0.12
Debt Instrument Convertible Conversion Percentage In Next Twelve Months			0.00%
Debt Instrument Convertible Conversion Percentage In Two Years			15.00%
Debt Instrument Convertible Conversion Percentage In Three Years			15.00%

Stock Based Compensation (Details Textual) (USD $)	9 Months Ended				12 Months Ended
Stock Based Compensation (Details Textual) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 Common Stock [Member]	Sep. 30, 2013 Restricted Stock [Member]	Dec. 31, 2012 Restricted Stock [Member]
Stock Based Compensation [Line Items]
Stock based compensation	$ 559,755	$ 900,751		$ 870,723
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				6,219,452	28,477,806
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 0.09
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms					36 months
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Grant Date Fair Value			2,563,002
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period					3,600,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value					324,000
Share Based Compensation Arrangement By Share Based Payment Award Other Than Option Not Yet Recognized					24,877,806
Share Based Compensation Arrangement By Share Based Payment Award Other Than Option Not Yet Recognized, Fair Value					2,239,002
Sharebased Compensation Arrangement By Sharebased Payment Award Other Than Options Not Yet Recognized Weighted Average Remaining Contractual Term					24 months
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total	$ 932,918

Note Payable (Details Textual) (USD $)	9 Months Ended
Note Payable (Details Textual) (USD $)	Sep. 30, 2013
Notes Payable [Line Items]
Notes Payable	$ 161,135
Fishbone Solutions [Member] \| Insurance [Member]
Notes Payable [Line Items]
Debt Instrument, Face Amount	322,945
Debt Instrument, Periodic Payment	$ 35,883
Debt Instrument, Interest Rate, Stated Percentage	4.45%

Change in Management (Details Textual)	9 Months Ended
Change in Management (Details Textual)	Sep. 30, 2013
Change in Management [Line Items]
Change in Management, Description	Effective June 20, 2013, the Company entered into an agreement (the “ Agreement ”) with David Mathews pursuant to which the Company obtained the option to redeem Mr. Mathews’ Company issued capital stock in connection with Mr. Mathews’ resignation from his official positions and directorship with the Company to further his intention of working with the potential purchaser in continuing to lead these subsidiary companies. Pursuant to the Agreement, Mr. Mathews will continue to serve as president of the Company’s subsidiaries, Fishbone Solutions Inc. and TGE Industrial Services, Inc. As set forth in the Agreement, in the event that the Company does not consummate the transaction by July 31, 2013 or delay the transaction by mutual agreement, pursuant to which the purchase price consists of at least Five Million Dollars ($5,000,000) of which at least Three Million Dollars ($3,000,000) is a cash payment, the Company shall (a) have the option to purchase and redeem all of the shares of the Company’s capital stock held by Mr. Mathews by, (b) paying to Mr. Mathews a One Hundred Thousand Dollar ($100,000) cash payment (the “ Cash Payment ”) and executing and delivering a $900,000 promissory note in favor of Mr. Mathews, such promissory note having four percent (4%) interest, and to be satisfied in three (3) equal annual payments of Three Hundred Thousand Dollars ($300,000) commencing upon the one-year anniversary of the Cash Payment (the “ Redemption ”). The shares of capital stock subject to the redemption shall be delivered by Mr. Mathews in proportion to the payments received by him. Upon the payment of the Cash Payment to Mr. Mathews, he shall immediately be released from his non-compete obligations to the Company, and after sixty (60) days shall be released from his non-solicitation obligations to the Company.

Related Party Transactions (Details Textual) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Related Party Transaction [Line Items]
Due to related parties, net	$ 36,747	$ 204,561
TGE [Member]
Related Party Transaction [Line Items]
Rate Per Hour For Services Rendered	1.40
Two Majority Owners [Member]
Related Party Transaction [Line Items]
Percentage Of Voting Right Owned	74.80%

Lines of Credit (Details Textual) (USD $)		1 Months Ended			1 Months Ended			1 Months Ended
Lines of Credit (Details Textual) (USD $)	Sep. 18, 2013 Patriot Bank [Member]	Feb. 29, 2012 Loan One [Member]	Sep. 30, 2013 Loan One [Member] Merchant Bank [Member]	Feb. 29, 2012 Loan One [Member] Merchant Bank [Member]	Sep. 14, 2012 Loan Two [Member]	Sep. 30, 2013 Loan Two [Member] Merchant Bank [Member]	Sep. 14, 2012 Loan Two [Member] Merchant Bank [Member]	Sep. 18, 2013 Loan Three [Member]	Sep. 30, 2013 Loan Three [Member] Patriot Bank [Member]	Sep. 18, 2013 Loan Three [Member] Patriot Bank [Member]
Line of Credit Facility [Line Items]
Line Of Credit Facility Purchase Agreement				$ 3,000,000			$ 1,000,000			$ 1,500,000
Line Of Credit Facility Discounting Factor		15.00%			15.00%			15.00%
Discounting Factor Of Receivable Invoices Maximum		14.30%			14.30%			14.30%
Discounting Factor Of Receivable Invoices Minimum		10.00%			10.00%			10.00%
Line of Credit Facility, Remaining Borrowing Capacity			2,532,721			420,016			198,628
Line of Credit Facility, Interest Rate Description		The factoring company will remit a rebate to the Company of an amount between 14.30% and 10% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isnt collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced.			The factoring company will remit a rebate to the Company of an amount between 10% and 14.30% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isnt collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced.			The factoring company will remit a rebate to the Company of an amount between 10% and 14.30% of the receivable invoice amounts depending on how long it takes the factoring company to collect the receivable. The sooner the amount is collected, the greater the rebate received by the Company. If after 90 days it isnt collected, the Company agreed to repurchase the receivables for $0.90 for each $1.00 invoiced.
Line of Credit Facility, Current Borrowing Capacity			467,279			579,984			1,301,373
Line Of Credit Facility Renewal	$ 1,250,000

Segment Information (Details) (USD $)	3 Months Ended		9 Months Ended
Segment Information (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ 6,191,014	$ 8,080,254	$ 20,251,057	$ 25,410,018
Net income (loss)	(753,543)	(216,444)	(999,311)	(480,694)
Total Assets	11,523,000	11,178,000	11,523,000	11,178,000
International Plant Services [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	3,140,000	5,830,000	10,844,000	20,706,000
Net income (loss)	(1,012,000)	(644,000)	(2,279,000)	(861,000)
Total Assets	5,922,000	8,227,000	5,922,000	8,227,000
TGE Industrial Services Inc [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	1,092,000	826,000	3,011,000	1,175,000
Net income (loss)	201,000	86,000	679,000	88,000
Total Assets	1,212,000	32,000	1,212,000	32,000
Fishbone Solutions [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	1,959,000	1,424,000	6,396,000	3,529,000
Net income (loss)	58,000	342,000	601,000	292,000
Total Assets	$ 4,389,000	$ 2,919,000	$ 4,389,000	$ 2,919,000

Significant Customers (Details Textual)	9 Months Ended
Significant Customers (Details Textual)	Sep. 30, 2013	Sep. 30, 2012
Customer One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	18.00%	15.00%
Customer Two [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage		11.00%
Customer Three [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage		9.00%

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
Assets
Cash and cash equivalents	$ 483,807	$ 394,306
Accounts receivable, net	5,319,960	6,506,920
Federal income taxes receivable	303,746	115,224
Deferred income taxes	245,000	130,000
Prepaid expenses and other current assets	545,345	762,211
Total current assets	6,897,858	7,908,661
Property and equipment, net	988,282	1,431,741
Goodwill and other assets	935,947	942,227
Total assets	8,822,087	10,282,629
Liabilities and stockholders' equity
Accounts payable	1,373,726	1,292,686
Accrued liabilities	604,774	1,353,044
Due to related parties, net	36,747	204,561
Lines of credit	2,037,713	2,623,552
Note payable	484,080	233,135
Total current liabilities	4,537,040	5,706,978
Convertible debt	1,283,126	1,283,126
Deferred federal income tax	0	29,000
Total liabilities	5,820,166	7,019,104
Commitments and Contingencies
Stockholders' equity:
Common stock - $.00001 par value; 500,000,000 shares authorized; 58,485,479 shares issued and outstanding as of September 30, 2013, and 49,300,156December 31, 2012	585	493
Additional paid in capital	3,958,804	3,221,189
Retained earnings (deficit)	(957,597)	41,714
Total stockholders' equity	3,001,921	3,263,525
Total liabilities and stockholders' equity	8,822,087	10,282,629
Series A Preferred Stock [Member]
Stockholders' equity:
Preferred stock - par value of $.00001; 100,000,000 shares authorized;	29	29
Series B Preferred Stock [Member]
Stockholders' equity:
Preferred stock - par value of $.00001; 100,000,000 shares authorized;	$ 100	$ 100

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
Consolidated Statements of Cash Flows (USD $)	Sep. 30, 2013	Sep. 30, 2012
Cash flow from operating activities
Net loss	$ (999,311)	$ (480,694)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	482,561	377,004
Stock based compensation	559,755	900,751
Gain on sale of assets	0	(43,192)
Gain on sale of business	0	(348,001)
Changes in working capital accounts:
Change in accounts receivables	1,186,960	132,756
Change in federal income taxes receivable	(188,522)	(631,389)
Change in prepaid expenses and other current assets	223,146	175,449
Change in accounts payable	81,039	553,723
Change in deferred tax asset	(115,000)	0
Change in accrued liabilities	(570,317)	(1,974,602)
Change in deferred tax liability	(29,000)	0
Change in due to related parties	(167,814)	(1,290,574)
Net cash provided by (used in) operating activities	463,497	(2,628,769)
Cash flows from investing activities
Purchase of property and equipment, net	(39,102)	(891,514)
Acquisitions	0	(371,022)
Disposal of business	0	12,661
Proceeds from sale of assets	0	90,384
Net cash used in investing activities	(39,102)	(1,159,491)
Cash flows from financing activities
Proceeds from notes payable, net	250,945	0
Payment on line of credit, net	(585,839)	(223,894)
Line of credit, net	0	1,446,889
Net cash provided by (used in) financing activities	(334,894)	1,222,995
Net change in cash and cash equivalents	89,501	(2,565,265)
Cash and cash equivalents:
Beginning	394,306	2,747,880
Ending	483,807	182,615
Supplemental disclosure of cash flow information
Federal income tax	0	194,414
Issuance of common stock for payment of accounts payable	177,952	0
Interest paid	$ 244,797	$ 89,086

Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
Consolidated Statements of Operations (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues	$ 6,191,014	$ 8,080,254	$ 20,251,057	$ 25,410,018
Cost of revenues	4,809,909	6,569,790	15,825,536	19,741,646
Gross profit	1,381,105	1,510,464	4,425,521	5,668,372
General and administrative expense	2,106,837	2,175,442	5,518,804	6,666,469
Loss from operations	(725,732)	(664,978)	(1,093,283)	(998,097)
Other income (expense)
Other income (expense)	(881)	404,820	133,495	405,502
Interest expense	(79,738)	(16,630)	(244,797)	(89,086)
Total other income (expense)	(80,619)	388,190	(111,302)	316,416
Loss before income tax	(806,351)	(276,788)	(1,204,585)	(681,681)
Income tax benefit	52,808	60,344	205,274	200,987
Net loss	$ (753,543)	$ (216,444)	$ (999,311)	$ (480,694)
Loss per share
Basic (in dollars per share)	$ (0.01)	$ 0.00	$ (0.02)	$ (0.01)
Diluted (in dollars per share)	$ (0.01)	$ 0.00	$ (0.02)	$ (0.01)
Weighted average shares outstanding
Basic (in shares)	56,612,302	48,847,954	52,913,541	47,309,704
Diluted (in shares)	56,612,302	48,847,954	52,913,541	47,309,704

Segment Information (Details Textual) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
Segment Reporting Information [Line Items]
Segment Reporting Net Assets After Elimination	$ 8,822,087	$ 10,282,629	$ 8,478,000

Convertible Debt (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Fishbone Note	$ 1,283,126	$ 1,283,126
Less: current maturities	0	0
Total convertible debt	$ 1,283,126	$ 1,283,126

Subsequent Events (Details Textual) (USD $)	9 Months Ended
Subsequent Events (Details Textual) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Subsequent Event [Line Items]
Allocated Share-based Compensation Expense, Total	$ 559,755	$ 900,751
Restricted Stock [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, Issued for Services	691,050
Allocated Share-based Compensation Expense, Total	$ 870,723

Contingencies (Details Textual) (Subsequent Event [Member], USD $)	1 Months Ended
	Oct. 24, 2013
Subsequent Event [Member]
Gain Contingencies [Line Items]
Legal Fees	$ 10,000

Dispositions (Details Textual) (USD $)	Sep. 30, 2013	Jun. 19, 2013
Dispositions [Line Items]
Reorganization Value, Net Realizable Value of Asset Dispositions	$ 3,000,000	$ 3,000,000
Assumed Liabilities For Disposition Of Assets	2,000,000	2,000,000
Reorganization Value, Total	$ 5,000,000	$ 5,000,000

Basis of Presentation (Details Textual) (USD $)	3 Months Ended		9 Months Ended
Basis of Presentation (Details Textual) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Basis of Presentation [Line Items]
Net Income (Loss) Attributable to Parent, Total	$ (753,543)	$ (216,444)	$ (999,311)	$ (480,694)
Assets, Total	8,822,087	8,478,000	8,822,087	8,478,000	10,282,629
Liabilities, Total	5,820,166		5,820,166		7,019,104
Restatement Adjustment [Member]
Basis of Presentation [Line Items]
Net Income (Loss) Attributable to Parent, Total		284,277		284,277
Assets, Total		288,968		288,968
Liabilities, Total		$ 4,692		$ 4,692

Document And Entity Information	9 Months Ended
Document And Entity Information	Sep. 30, 2013	Nov. 15, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Trading Symbol	TXGE
Entity Common Stock, Shares Outstanding		68,776,636
Entity Registrant Name	Texas Gulf Energy Inc
Entity Central Index Key	0001429627
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company