Segment Information

3 Months Ended

Mar. 31, 2016

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, whose services include natural gas gathering, processing, transportation and supply (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.

The remainder of our operations is presented as “Other businesses and eliminations”, which consists of unregulated subsidiaries that own real estate leased to Chesapeake Utilities, as well as certain corporate costs not allocated to other operations.

The following table presents financial information about our reportable segments:

	Three Months Ended
	March 31,
	2016			2015
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy segment	$	88,894		$	109,292
Unregulated Energy segment	57,402			60,789
Total operating revenues, unaffiliated customers	$	146,296		$	170,081
Intersegment Revenues (1)
Regulated Energy segment	$	322		$	290
Unregulated Energy segment	113			207
Other businesses	226			221
Total intersegment revenues	$	661		$	718
Operating Income
Regulated Energy segment	$	24,319		$	22,182
Unregulated Energy segment	11,936			15,229
Other businesses and eliminations	125			97
Total operating income	36,380			37,508
Other (Expense) income, net	(34		)	133
Interest	2,650			2,448
Income before Income Taxes	33,696			35,193
Income taxes	13,329			14,084
Net Income	$	20,367		$	21,109

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

(in thousands)	March 31, 2016		December 31, 2015
Identifiable Assets
Regulated Energy segment	$	879,878	$	872,065
Unregulated Energy segment	178,723		171,840
Other businesses and eliminations	23,383		23,516
Total identifiable assets	$	1,081,984	$	1,067,421

Our operations are entirely domestic.