Segment Information

9 Months Ended

Sep. 30, 2015

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 two reportable segments:

• Regulated Energy. The Regulated Energy segment includes natural gas distribution, natural gas transmission 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. Effective April 1, 2015, this segment includes Aspire Energy of Ohio, whose services include natural gas gathering and processing (See Note 3, Acquisitions, regarding the acquisition of Gatherco). 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.

We had previously identified "Other" as a separate reportable segment, which consisted primarily of our advanced information services subsidiary. As a result of the sale of that subsidiary on October 1, 2014, "Other" is no longer a separate reportable segment.

The following table presents financial information about our reportable segments:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy segment	$	63,526		$	59,086		$	234,608		$	222,308
Unregulated Energy segment	28,387			27,041			120,068			141,215
Other businesses	—			5,492			—			14,931
Total operating revenues, unaffiliated customers	$	91,913		$	91,619		$	354,676		$	378,454
Intersegment Revenues (1)
Regulated Energy segment	$	270		$	270		$	830		$	860
Unregulated Energy segment	1,222			30			3,095			150
Other businesses	220			258			660			760
Total intersegment revenues	$	1,712		$	558		$	4,585		$	1,770
Operating Income (Loss)
Regulated Energy segment	$	11,828		$	9,202		$	47,616		$	41,004
Unregulated Energy segment	(1,022		)	(1,972		)	13,666			8,843
Other businesses and eliminations	103			562			305			25
Total operating income	10,909			7,792			61,587			49,872
Other income (loss), net of other expenses	36			(32		)	(3		)	380
Interest	2,492			2,495			7,425			6,954
Income before Income Taxes	8,453			5,265			54,159			43,298
Income taxes	3,334			2,085			21,638			17,303
Net Income	$	5,119		$	3,180		$	32,521		$	25,995

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

(in thousands)	September 30, 2015		December 31, 2014
Identifiable Assets
Regulated Energy segment	$	824,330	$	796,021
Unregulated Energy segment	156,838		84,732
Other businesses and eliminations	27,274		23,716
Total identifiable assets	$	1,008,442	$	904,469

Our operations are entirely domestic.