Segment Information

3 Months Ended

Mar. 31, 2014

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 comprise three operating segments:

• Regulated Energy. The Regulated Energy segment includes natural gas distribution, natural gas transmission operations and electric distribution 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 propane distribution and wholesale marketing operations, and natural gas marketing operations, which are unregulated as to their rates and services. Also included in this segment are other unregulated energy services, such as energy-related merchandise sales and heating, ventilation and air conditioning, plumbing and electrical services.

• Other. The “Other” segment consists primarily of our advanced information services subsidiary, as well as our 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 Ended
	March 31,
	2014			2013
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	101,874		$	81,304
Unregulated Energy	79,874			54,991
Other	4,589			4,434
Total operating revenues, unaffiliated customers	$	186,337		$	140,729
Intersegment Revenues (1)
Regulated Energy	$	292		$	263
Unregulated Energy	99			—
Other	253			243
Total intersegment revenues	$	644		$	506
Operating Income
Regulated Energy	$	21,091		$	17,306
Unregulated Energy	10,858			9,369
Other and eliminations	(326		)	(125		)
Total operating income	31,623			26,550
Other income, net of other expenses	6			289
Interest	2,155			2,072
Income before Income Taxes	29,474			24,767
Income taxes	11,793			9,898
Net Income	$	17,681		$	14,869

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

(in thousands)	March 31, 2014		December 31, 2013
Identifiable Assets
Regulated energy	$	715,062	$	708,950
Unregulated energy	103,658		100,585
Other	23,841		27,987
Total identifiable assets	$	842,561	$	837,522

Our operations are almost entirely domestic. 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.