Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

We use the management approach to identify operating segments. We organize our business around differences in regulatory environment and/or products or services, and the operating results of each segment are regularly reviewed by the chief operating decision maker (our Chief Executive Officer) in order to make decisions about resources and to assess performance. The segments are evaluated based on their pre-tax operating income. Our operations are comprised of three operating segments:

• Regulated Energy. The regulated energy segment includes natural gas distribution, electric distribution and natural gas transmission operations. All operations in this segment are regulated, as to their rates and services, by the PSC having jurisdiction in each operating territory or by the FERC in the case of Eastern Shore.

• Unregulated Energy. The unregulated energy segment includes natural gas marketing, propane distribution and propane wholesale marketing operations, which are unregulated as to their rates and charges for their services.

• Other. The “other” segment consists primarily of the advanced information services operation, unregulated subsidiaries that own real estate leased to Chesapeake and certain corporate costs not allocated to other operations.

The following table presents financial information about our reportable segments.

	Three Months						Nine Months
For the Periods Ended September 30,	2013			2012			2013		2012
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	55,387		$	51,868		$	191,666	$	179,139
Unregulated Energy	26,103			21,861			115,367		91,001
Other	5,055			4,446			14,386		12,846
Total operating revenues, unaffiliated customers	$	86,545		$	78,175		$	321,419	$	282,986
Intersegment Revenues (1)
Regulated Energy	$	293		$	328		$	797	$	906
Unregulated Energy	2,159			1,398			3,911		2,322
Other	274			220			743		675
Total intersegment revenues	$	2,726		$	1,946		$	5,451	$	3,903
Operating Income
Regulated Energy	$	10,243		$	7,848		$	36,169	$	33,151
Unregulated Energy	(1,803		)	(709		)	8,013		4,044
Other and eliminations	280			425			240		897
Total operating income	8,720			7,564			44,422		38,092
Other income, net of other expenses	101			(136		)	413		212
Interest	2,026			2,126			6,114		6,657
Income before Income Taxes	6,795			5,302			38,721		31,647
Income taxes	2,916			2,083			15,617		12,641
Net Income	$	3,879		$	3,219		$	23,104	$	19,006

⁽¹⁾  All significant intersegment revenues are billed at market rates and have been eliminated from consolidated operating revenues.

(in thousands)	September 30, 2013		December 31, 2012
Identifiable Assets
Regulated energy	$	683,258	$	615,438
Unregulated energy	88,032		79,287
Other	26,267		39,021
Total identifiable assets	$	797,557	$	733,746

Our operations are almost entirely domestic. Our advanced information services subsidiary, BravePoint, has infrequent transactions in foreign countries, which are denominated and paid primarily in U.S. dollars. These transactions are immaterial to the consolidated revenues.