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Segment Information
 6 Months Ended
Jun. 30, 2017
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 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 as well as natural gas marketing, gathering, processing, transportation and supply. These operations are unregulated as to their rates and services. Effective June 2016, this segment includes electricity and steam generation through Eight Flags' CHP plant. Through March 31, 2017, this segment also included the operations of Xeron, our propane and crude oil trading subsidiary that began winding down operations at the end of the first quarter of 2017. Lastly, this segment also includes other unregulated energy services, such as energy-related merchandise sales and heating, ventilation and air conditioning, plumbing and electrical services.
Other operations are presented as “Other businesses and eliminations,” which consist of unregulated subsidiaries that own real estate leased to Chesapeake Utilities, as well as certain corporate costs not allocated to other operations.

Our operations are entirely domestic.

The following table presents financial information about our reportable segments:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2017
 
2016
 
2017
 
2016
(in thousands)
 
 
 
 
 
 
 
 
Operating Revenues, Unaffiliated Customers
 
 
 
 
 
 
 
 
Regulated Energy segment
 
$
68,815

 
$
66,590

 
$
165,261

 
$
155,483

Unregulated Energy segment and other businesses
 
56,269

 
35,752

 
144,983

 
93,154

Total operating revenues, unaffiliated customers
 
$
125,084

 
$
102,342

 
$
310,244

 
$
248,637

Intersegment Revenues (1)
 
 
 
 
 
 
 
 
Regulated Energy segment
 
$
2,181

 
$
805

 
$
3,389

 
$
1,128

Unregulated Energy segment
 
6,780

 
1,052

 
10,791

 
1,165

Other businesses
 
159

 
240

 
387

 
466

Total intersegment revenues
 
$
9,120

 
$
2,097

 
$
14,567

 
$
2,759

Operating Income
 
 
 
 
 
 
 
 
Regulated Energy segment
 
$
13,730

 
$
15,226

 
$
36,747

 
$
39,545

Unregulated Energy segment
 
(38
)
 
412

 
11,492

 
12,347

Other businesses and eliminations
 
(26
)
 
104

 
102

 
230

Total operating income
 
13,666

 
15,742

 
48,341

 
52,122

Other expense, net
 
(607
)
 
(8
)
 
(884
)
 
(42
)
Interest
 
3,073

 
2,624

 
5,811

 
5,274

Income before Income Taxes
 
9,986

 
13,110

 
41,646


46,806

Income taxes
 
3,940

 
5,081

 
16,456

 
18,410

Net Income
 
$
6,046

 
$
8,029

 
$
25,190


$
28,396

 
(1) 
All significant intersegment revenues are billed at market rates and have been eliminated from consolidated operating revenues.
(in thousands)
 
June 30, 2017
 
December 31, 2016
Identifiable Assets
 
 
 
 
Regulated Energy segment
 
$
1,025,745

 
$
986,752

Unregulated Energy segment
 
202,730

 
226,368

Other businesses and eliminations
 
28,513

 
16,099

Total identifiable assets
 
$
1,256,988

 
$
1,229,219