Segment Information

6 Months Ended

Jun. 30, 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					Six Months Ended
	June 30,					June 30,
	2014			2013		2014			2013
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	61,348		$	54,975	$	163,222		$	136,279
Unregulated Energy	34,299			34,273		114,173			89,264
Other	4,850			4,898		9,439			9,331
Total operating revenues, unaffiliated customers	$	100,497		$	94,146	$	286,834		$	234,874
Intersegment Revenues (1)
Regulated Energy	$	298		$	241	$	590		$	504
Unregulated Energy	22			1,752		121			1,752
Other	248			227		502			470
Total intersegment revenues	$	568		$	2,220	$	1,213		$	2,726
Operating Income
Regulated Energy	$	10,711		$	8,619	$	31,802		$	25,925
Unregulated Energy	(43		)	447		10,815			9,816
Other and eliminations	(211		)	86		(538		)	(39		)
Total operating income	10,457			9,152		42,079			35,702
Other income, net of other expenses	405			24		413			312
Interest	2,303			2,016		4,459			4,088
Income before Income Taxes	8,559			7,160		38,033			31,926
Income taxes	3,425			2,804		15,218			12,701
Net Income	$	5,134		$	4,356	$	22,815		$	19,225

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

(in thousands)	June 30, 2014		December 31, 2013
Identifiable Assets
Regulated energy	$	716,126	$	708,950
Unregulated energy	77,800		100,585
Other	27,159		27,987
Total identifiable assets	$	821,085	$	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.