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.

Our operations comprise two reportable segments:


•	Regulated Energy. 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. 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 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. 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 information about our reportable segments.



	For the Year Ended December 31,
	2017			2016			2015
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	316,971		$	302,402		$	300,674
Unregulated Energy	300,612			196,458			158,570
Total operating revenues, unaffiliated customers	$	617,583		$	498,860		$	459,244
Intersegment Revenues ⁽¹⁾
Regulated Energy	$	9,339		$	3,287		$	1,228
Unregulated Energy	23,983			7,321			3,537
Other businesses	774			880			880
Total intersegment revenues	$	34,096		$	11,488		$	5,645
Operating Income
Regulated Energy	$	73,160		$	69,851		$	60,985
Unregulated Energy	12,477			13,844			16,355
Other businesses and eliminations	206			401			418
Operating Income	85,843			84,096			77,758
Other (expense) income	(765		)	(441		)	293
Interest charges	12,645			10,639			10,006
Income Before Income taxes	72,433			73,016			68,045
Income taxes	14,309			28,341			26,905
Net Income	$	58,124		$	44,675		$	41,140
Depreciation and Amortization
Regulated Energy	$	28,554		$	25,677		$	24,195
Unregulated Energy	7,954			6,386			5,679
Other businesses and eliminations	91			96			98
Total depreciation and amortization	$	36,599		$	32,159		$	29,972
Capital Expenditures
Regulated Energy	$	159,011		$	139,994		$	98,372
Unregulated Energy	26,190			23,984			90,895
Other businesses	5,902			5,398			5,994
Total capital expenditures	$	191,103		$	169,376		$	195,261


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



	As of December 31,
	2017		2016
Identifiable Assets
Regulated Energy	$	1,121,673	$	986,752
Unregulated Energy	261,541		226,368
Other businesses	34,220		16,099
Total identifiable assets	$	1,417,434	$	1,229,219

Our operations are entirely domestic.