FORM 10-Q | ||
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
CHESAPEAKE UTILITIES CORPORATION (Exact name of registrant as specified in its charter) | ||
Delaware | 51-0064146 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Large accelerated filer | x | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ | |||
Emerging growth company | ¨ | |||||
ITEM 1. | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
ITEM 1. | ||
ITEM 1A. | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 5. | ||
ITEM 6. | ||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||
(in thousands, except shares and per share data) | |||||||||||||||||
Operating Revenues | |||||||||||||||||
Regulated Energy | $ | 70,504 | $ | 70,996 | $ | 179,897 | $ | 168,650 | |||||||||
Unregulated Energy and other | 66,160 | 54,088 | 196,123 | 141,594 | |||||||||||||
Total Operating Revenues | 136,664 | 125,084 | 376,020 | 310,244 | |||||||||||||
Operating Expenses | |||||||||||||||||
Regulated Energy cost of sales | 20,010 | 24,167 | 68,241 | 64,411 | |||||||||||||
Unregulated Energy and other cost of sales | 49,393 | 40,505 | 149,219 | 101,260 | |||||||||||||
Operations | 36,281 | 30,013 | 68,983 | 62,502 | |||||||||||||
Maintenance | 3,619 | 3,403 | 7,211 | 6,634 | |||||||||||||
Gain from a settlement | (130 | ) | (130 | ) | (130 | ) | (130 | ) | |||||||||
Depreciation and amortization | 9,839 | 9,094 | 19,543 | 17,906 | |||||||||||||
Other taxes | 4,404 | 3,971 | 9,299 | 8,501 | |||||||||||||
Total Operating Expenses | 123,416 | 111,023 | 322,366 | 261,084 | |||||||||||||
Operating Income | 13,248 | 14,061 | 53,654 | 49,160 | |||||||||||||
Other expense, net | (262 | ) | (1,002 | ) | (194 | ) | (1,703 | ) | |||||||||
Interest charges | 3,881 | 3,073 | 7,545 | 5,811 | |||||||||||||
Income Before Income Taxes | 9,105 | 9,986 | 45,915 | 41,646 | |||||||||||||
Income taxes | 2,718 | 3,940 | 12,674 | 16,456 | |||||||||||||
Net Income | $ | 6,387 | $ | 6,046 | $ | 33,241 | $ | 25,190 | |||||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||||
Basic | 16,369,641 | 16,340,665 | 16,360,540 | 16,329,009 | |||||||||||||
Diluted | 16,417,082 | 16,382,207 | 16,410,061 | 16,373,038 | |||||||||||||
Earnings Per Share of Common Stock: | |||||||||||||||||
Basic | $ | 0.39 | $ | 0.37 | $ | 2.03 | $ | 1.54 | |||||||||
Diluted | $ | 0.39 | $ | 0.37 | $ | 2.03 | $ | 1.54 | |||||||||
Cash Dividends Declared Per Share of Common Stock | $ | 0.3700 | $ | 0.3250 | $ | 0.6950 | $ | 0.6300 | |||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(in thousands) | ||||||||||||||||
Net Income | $ | 6,387 | $ | 6,046 | $ | 33,241 | $ | 25,190 | ||||||||
Other Comprehensive Income (Loss), net of tax: | ||||||||||||||||
Employee Benefits, net of tax: | ||||||||||||||||
Amortization of prior service cost, net of tax of $(5), $(8), $(11) and $(16), respectively | (14 | ) | (12 | ) | (28 | ) | (23 | ) | ||||||||
Net gain, net of tax of $41, $69, $80 and $145, respectively | 108 | 101 | 217 | 194 | ||||||||||||
Cash Flow Hedges, net of tax: | ||||||||||||||||
Unrealized gain (loss) on commodity contract cash flow hedges, net of tax of $429, $(554), $(327) and $(362), respectively | 1,061 | (875 | ) | (728 | ) | (537 | ) | |||||||||
Total Other Comprehensive Income (Loss), net of tax | 1,155 | (786 | ) | (539 | ) | (366 | ) | |||||||||
Comprehensive Income | $ | 7,542 | $ | 5,260 | $ | 32,702 | $ | 24,824 | ||||||||
Assets | June 30, 2018 | December 31, 2017 | ||||||
(in thousands, except shares and per share data) | ||||||||
Property, Plant and Equipment | ||||||||
Regulated Energy | $ | 1,174,407 | $ | 1,073,736 | ||||
Unregulated Energy | 216,125 | 210,682 | ||||||
Other businesses and eliminations | 30,170 | 27,699 | ||||||
Total property, plant and equipment | 1,420,702 | 1,312,117 | ||||||
Less: Accumulated depreciation and amortization | (287,942 | ) | (270,599 | ) | ||||
Plus: Construction work in progress | 101,904 | 84,509 | ||||||
Net property, plant and equipment | 1,234,664 | 1,126,027 | ||||||
Current Assets | ||||||||
Cash and cash equivalents | 4,512 | 5,614 | ||||||
Trade and other receivables (less allowance for uncollectible accounts of $1,076 and $936, respectively) | 53,419 | 77,223 | ||||||
Accrued revenue | 12,353 | 22,279 | ||||||
Propane inventory, at average cost | 6,597 | 8,324 | ||||||
Other inventory, at average cost | 4,791 | 12,022 | ||||||
Regulatory assets | 13,330 | 10,930 | ||||||
Storage gas prepayments | 4,365 | 5,250 | ||||||
Income taxes receivable | 6,420 | 14,778 | ||||||
Prepaid expenses | 5,162 | 13,621 | ||||||
Derivative assets, at fair value | 534 | 1,286 | ||||||
Other current assets | 4,560 | 7,260 | ||||||
Total current assets | 116,043 | 178,587 | ||||||
Deferred Charges and Other Assets | ||||||||
Goodwill | 19,604 | 19,604 | ||||||
Other intangible assets, net | 4,277 | 4,686 | ||||||
Investments, at fair value | 7,486 | 6,756 | ||||||
Regulatory assets | 76,427 | 75,575 | ||||||
Other assets | 4,440 | 3,699 | ||||||
Total deferred charges and other assets | 112,234 | 110,320 | ||||||
Total Assets | $ | 1,462,941 | $ | 1,414,934 | ||||
Capitalization and Liabilities | June 30, 2018 | December 31, 2017 | ||||||
(in thousands, except shares and per share data) | ||||||||
Capitalization | ||||||||
Stockholders’ equity | ||||||||
Preferred stock, par value $0.01 per share (authorized 2,000,000 shares), no shares issued and outstanding | $ | — | $ | — | ||||
Common stock, par value $0.4867 per share (authorized 50,000,000 shares) | 7,971 | 7,955 | ||||||
Additional paid-in capital | 255,356 | 253,470 | ||||||
Retained earnings | 250,377 | 229,141 | ||||||
Accumulated other comprehensive loss | (5,718 | ) | (4,272 | ) | ||||
Deferred compensation obligation | 3,782 | 3,395 | ||||||
Treasury stock | (3,782 | ) | (3,395 | ) | ||||
Total stockholders’ equity | 507,986 | 486,294 | ||||||
Long-term debt, net of current maturities | 241,596 | 197,395 | ||||||
Total capitalization | 749,582 | 683,689 | ||||||
Current Liabilities | ||||||||
Current portion of long-term debt | 9,977 | 9,421 | ||||||
Short-term borrowing | 235,288 | 250,969 | ||||||
Accounts payable | 60,769 | 74,688 | ||||||
Customer deposits and refunds | 32,018 | 34,751 | ||||||
Accrued interest | 1,891 | 1,742 | ||||||
Dividends payable | 6,060 | 5,312 | ||||||
Accrued compensation | 7,953 | 13,112 | ||||||
Regulatory liabilities | 22,194 | 6,485 | ||||||
Derivative liabilities, at fair value | 886 | 6,247 | ||||||
Other accrued liabilities | 11,495 | 10,273 | ||||||
Total current liabilities | 388,531 | 413,000 | ||||||
Deferred Credits and Other Liabilities | ||||||||
Deferred income taxes | 143,147 | 135,850 | ||||||
Regulatory liabilities | 141,499 | 140,978 | ||||||
Environmental liabilities | 8,090 | 8,263 | ||||||
Other pension and benefit costs | 28,996 | 29,699 | ||||||
Deferred investment tax credits and other liabilities | 3,096 | 3,455 | ||||||
Total deferred credits and other liabilities | 324,828 | 318,245 | ||||||
Environmental and other commitments and contingencies (Note 5 and 6) | ||||||||
Total Capitalization and Liabilities | $ | 1,462,941 | $ | 1,414,934 | ||||
Six Months Ended | ||||||||
June 30, | ||||||||
2018 | 2017 | |||||||
(in thousands) | ||||||||
Operating Activities | ||||||||
Net income | $ | 33,241 | $ | 25,190 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 19,543 | 17,906 | ||||||
Depreciation and accretion included in other costs | 4,428 | 3,939 | ||||||
Deferred income taxes | 7,668 | 12,034 | ||||||
Realized loss on commodity contracts/sale of assets/investments | 3,857 | 2,223 | ||||||
Unrealized (gain) loss on investments/commodity contracts | (114 | ) | 184 | |||||
Employee benefits and compensation | 456 | 819 | ||||||
Share-based compensation | 2,247 | 812 | ||||||
Other, net | (23 | ) | (17 | ) | ||||
Changes in assets and liabilities: | ||||||||
Accounts receivable and accrued revenue | 32,230 | 26,862 | ||||||
Propane inventory, storage gas and other inventory | 9,844 | (2,543 | ) | |||||
Regulatory assets/liabilities, net | 11,035 | 4,255 | ||||||
Prepaid expenses and other current assets | 11,523 | 2,129 | ||||||
Accounts payable and other accrued liabilities | (26,152 | ) | (280 | ) | ||||
Income taxes receivable | 8,358 | 8,500 | ||||||
Customer deposits and refunds | (2,733 | ) | 1,487 | |||||
Accrued compensation | (5,196 | ) | (3,876 | ) | ||||
Other assets and liabilities, net | (1,860 | ) | (3,254 | ) | ||||
Net cash provided by operating activities | 108,352 | 96,370 | ||||||
Investing Activities | ||||||||
Property, plant and equipment expenditures | (126,811 | ) | (88,627 | ) | ||||
Proceeds from sales of assets | 323 | 185 | ||||||
Environmental expenditures | (173 | ) | (135 | ) | ||||
Net cash used in investing activities | (126,661 | ) | (88,577 | ) | ||||
Financing Activities | ||||||||
Common stock dividends | (10,301 | ) | (9,636 | ) | ||||
(Purchase) issuance of stock under the Dividend Reinvestment Plan | (328 | ) | 421 | |||||
Tax withholding payments related to net settled stock compensation | (1,210 | ) | (692 | ) | ||||
Change in cash overdrafts due to outstanding checks | 632 | (2,370 | ) | |||||
Net repayment under line of credit agreements and short-term borrowing under the Revolver | (16,313 | ) | (61,910 | ) | ||||
Proceeds from long-term debt and long-term borrowing under the Revolver | 74,916 | 69,800 | ||||||
Repayment of long-term debt, long-term borrowing under the Revolver and capital lease obligation | (30,189 | ) | (5,165 | ) | ||||
Net cash provided (used) in financing activities | 17,207 | (9,552 | ) | |||||
Net Decrease in Cash and Cash Equivalents | (1,102 | ) | (1,759 | ) | ||||
Cash and Cash Equivalents—Beginning of Period | 5,614 | 4,178 | ||||||
Cash and Cash Equivalents—End of Period | $ | 4,512 | $ | 2,419 | ||||
Common Stock (1) | ||||||||||||||||||||||||||||||
(in thousands, except shares and per share data) | Number of Shares(2) | Par Value | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Deferred Compensation | Treasury Stock | Total | ||||||||||||||||||||||
Balance at December 31, 2016 | 16,303,499 | $ | 7,935 | $ | 250,967 | $ | 192,062 | $ | (4,878 | ) | $ | 2,416 | $ | (2,416 | ) | $ | 446,086 | |||||||||||||
Net income | — | — | — | 58,124 | — | — | — | 58,124 | ||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 606 | — | — | 606 | ||||||||||||||||||||||
Dividend declared ($1.28 per share) | — | — | — | (21,045 | ) | — | — | — | (21,045 | ) | ||||||||||||||||||||
Dividend reinvestment plan | 10,771 | 5 | 730 | — | — | — | — | 735 | ||||||||||||||||||||||
Stock issuance | — | — | (10 | ) | — | — | — | — | (10 | ) | ||||||||||||||||||||
Share-based compensation and tax benefit (3)(4) | 30,172 | 15 | 1,783 | — | — | — | — | 1,798 | ||||||||||||||||||||||
Treasury stock activities | — | — | — | — | — | 979 | (979 | ) | — | |||||||||||||||||||||
Balance at December 31, 2017 | 16,344,442 | 7,955 | 253,470 | 229,141 | (4,272 | ) | 3,395 | (3,395 | ) | 486,294 | ||||||||||||||||||||
Net income | — | — | — | 33,241 | — | — | — | 33,241 | ||||||||||||||||||||||
Cumulative effect of the adoption of ASU 2014-09 | — | — | — | (1,498 | ) | — | — | — | (1,498 | ) | ||||||||||||||||||||
Reclassification upon the adoption of ASU 2018-02 | — | — | — | 907 | (907 | ) | — | — | — | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (539 | ) | — | — | (539 | ) | ||||||||||||||||||||
Dividend declared ($0.6950 per share) | — | — | — | (11,414 | ) | — | — | — | (11,414 | ) | ||||||||||||||||||||
Dividend reinvestment plan | — | — | (2 | ) | — | — | — | — | (2 | ) | ||||||||||||||||||||
Share-based compensation and tax benefit (3) (4) | 34,103 | 16 | 1,888 | — | — | — | — | 1,904 | ||||||||||||||||||||||
Treasury stock activities | — | — | — | — | — | 387 | (387 | ) | — | |||||||||||||||||||||
Balance at June 30, 2018 | 16,378,545 | $ | 7,971 | $ | 255,356 | $ | 250,377 | $ | (5,718 | ) | $ | 3,782 | $ | (3,782 | ) | $ | 507,986 | |||||||||||||
(1) | 2,000,000 shares of preferred stock at $0.01 par value have been authorized. None has been issued or is outstanding; accordingly, no information has been included in the statements of stockholders’ equity. |
(2) | Includes 96,204 and 90,961 shares at June 30, 2018 and December 31, 2017, respectively, held in a Rabbi Trust related to our Deferred Compensation Plan. |
(3) | Includes amounts for shares issued for directors’ compensation. |
(4) | The shares issued under the SICP are net of shares withheld for employee taxes. For the six months ended June 30, 2018, and for the year ended December 31, 2017, we withheld 16,918 and 10,269 shares, respectively, for taxes. |
Three months ended June 30, 2018 | Six months ended June 30, 2018 | |||||||||||||||||||||||
Income statement | As Reported | Without Adoption of ASC 606 | Effect of Change Higher (Lower) | As Reported | Without Adoption of ASC 606 | Effect of Change Higher (Lower) | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Regulated Energy operating revenues | $ | 70,504 | $ | 70,728 | $ | (224 | ) | $ | 179,897 | $ | 180,780 | $ | (883 | ) | ||||||||||
Regulated Energy cost of sales | 20,010 | 20,139 | (129 | ) | 68,241 | 68,942 | (701 | ) | ||||||||||||||||
Depreciation and amortization | 9,839 | 9,832 | 7 | 19,543 | 19,521 | 22 | ||||||||||||||||||
Income before income taxes | 9,105 | 9,207 | (102 | ) | 45,915 | 46,119 | (204 | ) | ||||||||||||||||
Income taxes | 2,718 | 2,746 | (28 | ) | 12,674 | 12,733 | (59 | ) | ||||||||||||||||
Net income | 6,387 | 6,461 | (74 | ) | 33,241 | 33,386 | (145 | ) | ||||||||||||||||
As of June 30, 2018 | ||||||||||||
Balance sheet | As Reported | Without Adoption of ASC 606 | Effect of Change Higher (Lower) | |||||||||
(in thousands) | ||||||||||||
Assets | ||||||||||||
Accrued revenues | $ | 12,353 | $ | 13,659 | $ | (1,306 | ) | |||||
Other assets | $ | 4,440 | $ | 4,777 | $ | (337 | ) | |||||
Capitalization | ||||||||||||
Retained earnings | $ | 250,377 | $ | 248,734 | $ | 1,643 | ||||||
• | An entity need not reassess whether any expired or existing contracts are or contain leases. |
• | An entity need not reassess the lease classification for any expired or existing leases (that is, all existing leases that were classified as operating leases in accordance with Topic 840 will continue to be classified as operating leases, and all existing leases that were classified as capital leases in accordance with Topic 840 will continue to be classified as capital leases). |
• | An entity may elect to use hindsight in determining the lease term and in assessing impairment of the entity’s right-of-use assets. |
• | An entity may elect to apply the provisions of the new lease guidance at the effective date, without adjusting the comparative periods presented. |
2. | Calculation of Earnings Per Share |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(in thousands, except shares and per share data) | ||||||||||||||||
Calculation of Basic Earnings Per Share: | ||||||||||||||||
Net Income | $ | 6,387 | $ | 6,046 | $ | 33,241 | $ | 25,190 | ||||||||
Weighted average shares outstanding | 16,369,641 | 16,340,665 | 16,360,540 | 16,329,009 | ||||||||||||
Basic Earnings Per Share | $ | 0.39 | $ | 0.37 | $ | 2.03 | $ | 1.54 | ||||||||
Calculation of Diluted Earnings Per Share: | ||||||||||||||||
Reconciliation of Numerator: | ||||||||||||||||
Net Income | $ | 6,387 | $ | 6,046 | $ | 33,241 | $ | 25,190 | ||||||||
Reconciliation of Denominator: | ||||||||||||||||
Weighted shares outstanding—Basic | 16,369,641 | 16,340,665 | 16,360,540 | 16,329,009 | ||||||||||||
Effect of dilutive securities—Share-based compensation | 47,441 | 41,542 | 49,521 | 44,029 | ||||||||||||
Adjusted denominator—Diluted | 16,417,082 | 16,382,207 | 16,410,061 | 16,373,038 | ||||||||||||
Diluted Earnings Per Share | $ | 0.39 | $ | 0.37 | $ | 2.03 | $ | 1.54 | ||||||||
Regulated Energy | Unregulated Energy | Other and Eliminations | Total | |||||||||||||
Energy distribution | ||||||||||||||||
Florida natural gas division | $ | 6,317 | $ | — | $ | — | $ | 6,317 | ||||||||
Delaware natural gas division | 11,882 | — | — | 11,882 | ||||||||||||
FPU electric distribution | 18,362 | — | — | 18,362 | ||||||||||||
FPU natural gas distribution | 18,281 | — | — | 18,281 | ||||||||||||
Maryland natural gas division | 4,001 | — | — | 4,001 | ||||||||||||
Sandpiper | 4,367 | — | — | 4,367 | ||||||||||||
Total energy distribution | 63,210 | — | — | 63,210 | ||||||||||||
Energy transmission | ||||||||||||||||
Aspire Energy | — | 5,854 | — | 5,854 | ||||||||||||
Eastern Shore | 14,502 | — | — | 14,502 | ||||||||||||
Peninsula Pipeline | 2,968 | — | — | 2,968 | ||||||||||||
Total energy transmission | 17,470 | 5,854 | — | 23,324 | ||||||||||||
Energy generation | ||||||||||||||||
Eight Flags | — | 4,230 | — | 4,230 | ||||||||||||
Propane delivery | ||||||||||||||||
Delmarva Peninsula propane delivery | — | 15,264 | — | 15,264 | ||||||||||||
Florida propane delivery | — | 4,942 | — | 4,942 | ||||||||||||
Total propane delivery | — | 20,206 | — | 20,206 | ||||||||||||
Energy services | ||||||||||||||||
PESCO | — | 48,798 | — | 48,798 | ||||||||||||
Other and eliminations | ||||||||||||||||
Eliminations | (10,176 | ) | (3,248 | ) | (10,379 | ) | (23,803 | ) | ||||||||
Other | — | 505 | 194 | 699 | ||||||||||||
Total other and eliminations | (10,176 | ) | (2,743 | ) | (10,185 | ) | (23,104 | ) | ||||||||
Total operating revenues (1) | $ | 70,504 | $ | 76,345 | $ | (10,185 | ) | $ | 136,664 | |||||||
Regulated Energy | Unregulated Energy | Other and Eliminations | Total | |||||||||||||
Energy distribution | ||||||||||||||||
Florida natural gas division | $ | 12,180 | $ | — | $ | — | $ | 12,180 | ||||||||
Delaware natural gas division | 43,954 | — | — | 43,954 | ||||||||||||
FPU electric distribution | 37,103 | — | — | 37,103 | ||||||||||||
FPU natural gas distribution | 41,494 | — | — | 41,494 | ||||||||||||
Maryland natural gas division | 14,673 | — | — | 14,673 | ||||||||||||
Sandpiper | 13,331 | — | — | 13,331 | ||||||||||||
Total energy distribution | 162,735 | — | — | 162,735 | ||||||||||||
Energy transmission | ||||||||||||||||
Aspire Energy | — | 17,931 | — | 17,931 | ||||||||||||
Eastern Shore | 30,100 | — | — | 30,100 | ||||||||||||
Peninsula Pipeline | 5,065 | — | — | 5,065 | ||||||||||||
Total energy transmission | 35,165 | 17,931 | — | 53,096 | ||||||||||||
Energy generation | ||||||||||||||||
Eight Flags | — | 8,608 | — | 8,608 | ||||||||||||
Propane delivery | ||||||||||||||||
Delmarva Peninsula propane delivery | — | 60,735 | — | 60,735 | ||||||||||||
Florida propane delivery | — | 11,576 | — | 11,576 | ||||||||||||
Total propane delivery | — | 72,311 | — | 72,311 | ||||||||||||
Energy services | ||||||||||||||||
PESCO | — | 130,357 | — | 130,357 | ||||||||||||
Other and eliminations | ||||||||||||||||
Eliminations | (18,003 | ) | (8,494 | ) | (25,976 | ) | (52,473 | ) | ||||||||
Other | — | 999 | 387 | 1,386 | ||||||||||||
Total other and eliminations | (18,003 | ) | (7,495 | ) | (25,589 | ) | (51,087 | ) | ||||||||
Total operating revenues (1) | $ | 179,897 | $ | 221,712 | $ | (25,589 | ) | $ | 376,020 | |||||||
Trade Receivables | Contract Assets (Non-current) | Contract Liabilities (Current) | ||||||||||
in thousands | ||||||||||||
Balance at 12/31/2017 | $ | 74,962 | $ | 1,270 | $ | 407 | ||||||
Balance at 6/30/2018 | 51,511 | 1,967 | 175 | |||||||||
Increase (decrease) | $ | (23,451 | ) | $ | 697 | $ | (232 | ) | ||||
4. | Rates and Other Regulatory Activities |
Jurisdiction | MGP Site | Status | Cost to Clean up | Recovery through Rates |
Florida | West Palm Beach | Remedial actions approved by the FDEP have been implemented on the east parcel of the site. We expect to implement similar remedial actions on other remaining portions, including the anticipated demolition of buildings on the site's west parcel in 2018. | Between $4.5 million to $15.4 million, including costs associated with the relocation of FPU’s operations at this site, which is necessary to implement the remedial plan, and any potential costs associated with future redevelopment of the properties. | Yes |
Florida | Sanford | In March 2018, the EPA approved a "site-wide ready for anticipated use" status, which is the final step before delisting a site. Construction has been completed and restrictive covenants are in place to ensure protection of human health. The only remaining activity is long-term groundwater monitoring. It is unlikely that FPU will incur any significant future costs associated with the site. | FPU's remaining remediation expenses, including attorneys' fees and costs, are anticipated to be less than $10,000. | Yes |
Florida | Winter Haven | Remediation is ongoing. | Not expected to exceed $425,000, which includes costs of implementing institutional controls at the site. | Yes |
Delaware | Seaford | Proposed plan for implementation approved by the DNREC in July 2017. Site assessment is ongoing. | Between $273,000 and $465,000. | Yes |
Maryland | Cambridge | Currently in discussions with the MDE. | Unable to estimate. | N/A |
6. | Other Commitments and Contingencies |
7. | Segment Information |
• | Regulated Energy. Includes energy distribution and transmission services (natural gas distribution, natural gas transmission and electric distribution operations). All operations in this segment are regulated, as to their rates |
• | Unregulated Energy. Includes energy transmission, energy generation, propane delivery, and other energy services (propane distribution, the operations of our Eight Flags' CHP plant, as well as natural gas marketing, gathering, processing, transportation and supply). These operations are unregulated as to their rates and services. Through March 2017, this segment also included the operations of Xeron, our propane and crude oil trading subsidiary that wound down its operations shortly after 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. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(in thousands) | ||||||||||||||||
Operating Revenues, Unaffiliated Customers | ||||||||||||||||
Regulated Energy segment | $ | 67,731 | $ | 68,815 | $ | 173,685 | $ | 165,261 | ||||||||
Unregulated Energy segment and other businesses | 68,933 | 56,269 | 202,335 | 144,983 | ||||||||||||
Total operating revenues, unaffiliated customers | $ | 136,664 | $ | 125,084 | $ | 376,020 | $ | 310,244 | ||||||||
Intersegment Revenues (1) | ||||||||||||||||
Regulated Energy segment | $ | 2,773 | $ | 2,181 | $ | 6,212 | $ | 3,389 | ||||||||
Unregulated Energy segment | 7,412 | 6,780 | 19,377 | 10,791 | ||||||||||||
Other businesses | 194 | 159 | 387 | 387 | ||||||||||||
Total intersegment revenues | $ | 10,379 | $ | 9,120 | $ | 25,976 | $ | 14,567 | ||||||||
Operating Income | ||||||||||||||||
Regulated Energy segment | $ | 14,304 | $ | 14,086 | $ | 41,015 | $ | 37,481 | ||||||||
Unregulated Energy segment | 490 | 2 | 14,174 | 11,577 | ||||||||||||
Other businesses and eliminations | (1,546 | ) | (27 | ) | (1,535 | ) | 102 | |||||||||
Total operating income | 13,248 | 14,061 | 53,654 | 49,160 | ||||||||||||
Other expense, net | (262 | ) | (1,002 | ) | (194 | ) | (1,703 | ) | ||||||||
Interest charges | 3,881 | 3,073 | 7,545 | 5,811 | ||||||||||||
Income before Income Taxes | 9,105 | 9,986 | 45,915 | 41,646 | ||||||||||||
Income taxes | 2,718 | 3,940 | 12,674 | 16,456 | ||||||||||||
Net Income | $ | 6,387 | $ | 6,046 | $ | 33,241 | $ | 25,190 | ||||||||
(1) | All significant intersegment revenues are billed at market rates and have been eliminated from consolidated operating revenues. |
(in thousands) | June 30, 2018 | December 31, 2017 | ||||||
Identifiable Assets | ||||||||
Regulated Energy segment | $ | 1,199,672 | $ | 1,121,673 | ||||
Unregulated Energy segment | 227,191 | 259,041 | ||||||
Other businesses and eliminations | 36,078 | 34,220 | ||||||
Total identifiable assets | $ | 1,462,941 | $ | 1,414,934 | ||||
8. | Stockholder's Equity |
Defined Benefit | Commodity | |||||||||||
Pension and | Contracts | |||||||||||
Postretirement | Cash Flow | |||||||||||
Plan Items | Hedges | Total | ||||||||||
(in thousands) | ||||||||||||
As of December 31, 2017 | $ | (4,743 | ) | $ | 471 | $ | (4,272 | ) | ||||
Other comprehensive loss before reclassifications | — | (1,440 | ) | (1,440 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | 189 | 712 | 901 | |||||||||
Net current-period other comprehensive income/(loss) | 189 | (728 | ) | (539 | ) | |||||||
Stranded tax reclassification to retained earnings | (1,022 | ) | 115 | (907 | ) | |||||||
As of June 30, 2018 | $ | (5,576 | ) | $ | (142 | ) | $ | (5,718 | ) | |||
Defined Benefit | Commodity | |||||||||||
Pension and | Contracts | |||||||||||
Postretirement | Cash Flow | |||||||||||
Plan Items | Hedges | Total | ||||||||||
(in thousands) | ||||||||||||
As of December 31, 2016 | $ | (5,360 | ) | $ | 482 | $ | (4,878 | ) | ||||
Other comprehensive (loss)/income before reclassifications | (9 | ) | 837 | 828 | ||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) | 180 | (1,374 | ) | (1,194 | ) | |||||||
Net prior-period other comprehensive income/(loss) | 171 | (537 | ) | (366 | ) | |||||||
As of June 30, 2017 | $ | (5,189 | ) | $ | (55 | ) | $ | (5,244 | ) | |||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(in thousands) | ||||||||||||||||
Amortization of defined benefit pension and postretirement plan items: | ||||||||||||||||
Prior service credit (1) | $ | 19 | $ | 20 | $ | 39 | $ | 39 | ||||||||
Net loss(1) | (149 | ) | (170 | ) | (297 | ) | (339 | ) | ||||||||
Total before income taxes | (130 | ) | (150 | ) | (258 | ) | (300 | ) | ||||||||
Income tax benefit | 36 | 61 | 69 | 120 | ||||||||||||
Net of tax | $ | (94 | ) | $ | (89 | ) | $ | (189 | ) | $ | (180 | ) | ||||
Gains and losses on commodity contracts cash flow hedges: | ||||||||||||||||
Propane swap agreements (2) | $ | (181 | ) | $ | 77 | $ | (645 | ) | $ | 465 | ||||||
Natural gas swaps (2) | (31 | ) | — | (481 | ) | — | ||||||||||
Natural gas futures (2) | (161 | ) | 631 | 137 | 1,781 | |||||||||||
Total before income taxes | (373 | ) | 708 | (989 | ) | 2,246 | ||||||||||
Income tax benefit (expense) | 105 | (273 | ) | 277 | (872 | ) | ||||||||||
Net of tax | (268 | ) | 435 | (712 | ) | 1,374 | ||||||||||
Total reclassifications for the period | $ | (362 | ) | $ | 346 | $ | (901 | ) | $ | 1,194 | ||||||
9. | Employee Benefit Plans |
Chesapeake Pension Plan | FPU Pension Plan | Chesapeake SERP | Chesapeake Postretirement Plan | FPU Medical Plan | ||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Interest cost | $ | 98 | $ | 103 | $ | 592 | $ | 624 | $ | 21 | $ | 22 | $ | 9 | $ | 11 | $ | 13 | $ | 13 | ||||||||||||||||||||
Expected return on plan assets | (138 | ) | (127 | ) | (774 | ) | (700 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||
Amortization of prior service credit | — | — | — | — | — | — | (19 | ) | (20 | ) | — | — | ||||||||||||||||||||||||||||
Amortization of net loss | 88 | 106 | 108 | 131 | 25 | 22 | 15 | 17 | — | — | ||||||||||||||||||||||||||||||
Net periodic cost (benefit) (1) | 48 | 82 | (74 | ) | 55 | 46 | 44 | 5 | 8 | 13 | 13 | |||||||||||||||||||||||||||||
Amortization of pre-merger regulatory asset | — | — | 191 | 191 | — | — | — | — | 2 | 2 | ||||||||||||||||||||||||||||||
Total periodic cost | $ | 48 | $ | 82 | $ | 117 | $ | 246 | $ | 46 | $ | 44 | $ | 5 | $ | 8 | $ | 15 | $ | 15 | ||||||||||||||||||||
Chesapeake Pension Plan | FPU Pension Plan | Chesapeake SERP | Chesapeake Postretirement Plan | FPU Medical Plan | ||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Interest cost | $ | 195 | $ | 206 | $ | 1,184 | $ | 1,247 | $ | 42 | $ | 44 | $ | 19 | $ | 21 | $ | 26 | $ | 26 | ||||||||||||||||||||
Expected return on plan assets | (276 | ) | (254 | ) | (1,549 | ) | (1,399 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||
Amortization of prior service credit | — | — | — | — | — | — | (39 | ) | (39 | ) | — | — | ||||||||||||||||||||||||||||
Amortization of net loss | 176 | 213 | 217 | 262 | 50 | 44 | 30 | 32 | — | — | ||||||||||||||||||||||||||||||
Net periodic cost (benefit) (1) | 95 | 165 | (148 | ) | 110 | 92 | 88 | 10 | 14 | 26 | 26 | |||||||||||||||||||||||||||||
Amortization of pre-merger regulatory asset | — | — | 381 | 381 | — | — | — | — | 4 | 4 | ||||||||||||||||||||||||||||||
Total periodic cost | $ | 95 | $ | 165 | $ | 233 | $ | 491 | $ | 92 | $ | 88 | $ | 10 | $ | 14 | $ | 30 | $ | 30 | ||||||||||||||||||||
For the Three Months Ended June 30, 2018 | Chesapeake Pension Plan | FPU Pension Plan | Chesapeake SERP | Chesapeake Postretirement Plan | FPU Medical Plan | Total | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | (19 | ) | $ | — | $ | (19 | ) | ||||||||||
Net loss | 88 | 108 | 25 | 15 | — | 236 | ||||||||||||||||||
Total recognized in net periodic benefit cost | 88 | 108 | 25 | (4 | ) | — | 217 | |||||||||||||||||
Recognized from accumulated other comprehensive loss (1) | 88 | 21 | 25 | (4 | ) | — | 130 | |||||||||||||||||
Recognized from regulatory asset | — | 87 | — | — | — | 87 | ||||||||||||||||||
Total | $ | 88 | $ | 108 | $ | 25 | $ | (4 | ) | $ | — | $ | 217 | |||||||||||
For the Three Months Ended June 30, 2017 | Chesapeake Pension Plan | FPU Pension Plan | Chesapeake SERP | Chesapeake Postretirement Plan | FPU Medical Plan | Total | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | (20 | ) | $ | — | $ | (20 | ) | ||||||||||
Net loss | 106 | 131 | 22 | 17 | — | 276 | ||||||||||||||||||
Total recognized in net periodic benefit cost | 106 | 131 | 22 | (3 | ) | — | 256 | |||||||||||||||||
Recognized from accumulated other comprehensive loss (1) | 106 | 25 | 22 | (3 | ) | — | 150 | |||||||||||||||||
Recognized from regulatory asset | — | 106 | — | — | — | 106 | ||||||||||||||||||
Total | $ | 106 | $ | 131 | $ | 22 | $ | (3 | ) | $ | — | $ | 256 | |||||||||||
For the Six Months Ended June 30, 2018 | Chesapeake Pension Plan | FPU Pension Plan | Chesapeake SERP | Chesapeake Postretirement Plan | FPU Medical Plan | Total | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | (39 | ) | $ | — | $ | (39 | ) | ||||||||||
Net loss | 176 | 217 | 50 | 30 | — | 473 | ||||||||||||||||||
Total recognized in net periodic benefit cost | 176 | 217 | 50 | (9 | ) | — | 434 | |||||||||||||||||
Recognized from accumulated other comprehensive loss (1) | 176 | 41 | 50 | (9 | ) | — | 258 | |||||||||||||||||
Recognized from regulatory asset | — | 176 | — | — | — | 176 | ||||||||||||||||||
Total | $ | 176 | $ | 217 | $ | 50 | $ | (9 | ) | $ | — | $ | 434 | |||||||||||
For the Six Months Ended June 30, 2017 | Chesapeake Pension Plan | FPU Pension Plan | Chesapeake SERP | Chesapeake Postretirement Plan | FPU Medical Plan | Total | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | (39 | ) | $ | — | $ | (39 | ) | ||||||||||
Net loss | 213 | 262 | 44 | 32 | — | 551 | ||||||||||||||||||
Total recognized in net periodic benefit cost | 213 | 262 | 44 | (7 | ) | — | 512 | |||||||||||||||||
Recognized from accumulated other comprehensive loss (1) | 213 | 50 | 44 | (7 | ) | — | 300 | |||||||||||||||||
Recognized from regulatory asset | — | 212 | — | — | — | 212 | ||||||||||||||||||
Total | $ | 213 | $ | 262 | $ | 44 | $ | (7 | ) | $ | — | $ | 512 | |||||||||||
10. | Investments |
(in thousands) | June 30, 2018 | December 31, 2017 | |||||
Rabbi trust (associated with the Deferred Compensation Plan) | $ | 7,465 | $ | 6,734 | |||
Investments in equity securities | 21 | 22 | |||||
Total | $ | 7,486 | 6,756 | ||||
11. | Share-Based Compensation |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(in thousands) | ||||||||||||||||
Awards to non-employee directors | $ | 135 | $ | 136 | $ | 269 | $ | 271 | ||||||||
Awards to key employees | 1,190 | 37 | 2,575 | 541 | ||||||||||||
Total compensation expense | 1,325 | 173 | 2,844 | 812 | ||||||||||||
Less: tax benefit | (363 | ) | (70 | ) | (779 | ) | (327 | ) | ||||||||
Share-based compensation amounts included in net income | $ | 962 | $ | 103 | $ | 2,065 | $ | 485 | ||||||||
Number of Shares | Weighted Average Fair Value | ||||||
Outstanding—December 31, 2017 | — | $ | — | ||||
Granted | 7,128 | $ | 75.70 | ||||
Vested | (7,128 | ) | $ | 75.70 | |||
Outstanding—June 30, 2018 | — | $ | — | ||||
Number of Shares | Weighted Average Fair Value | ||||||
Outstanding—December 31, 2017 | 132,642 | $ | 59.31 | ||||
Granted | 49,494 | $ | 67.76 | ||||
Vested | (29,786 | ) | $ | 47.39 | |||
Vested - Accelerated pursuant to separation agreement (1) | (16,676 | ) | $ | 75.78 | |||
Expired | (3,933 | ) | $ | 49.66 | |||
Outstanding—June 30, 2018 | 131,741 | $ | 67.46 | ||||
12. | Derivative Instruments |
At June 30, 2018 | ||||||||||||
(in thousands) | Gross amounts | Amounts offset | Net amounts | |||||||||
Accounts receivable | $ | 5,723 | $ | 1,288 | $ | 4,435 | ||||||
Accounts payable | $ | 10,326 | $ | 1,288 | $ | 9,038 | ||||||
At December 31, 2017 | ||||||||||||
(in thousands) | Gross amounts | Amounts offset | Net amounts | |||||||||
Accounts receivable | $ | 8,283 | $ | 2,391 | $ | 5,892 | ||||||
Accounts payable | $ | 16,643 | $ | 2,391 | $ | 14,252 | ||||||
Asset Derivatives | ||||||||||
Fair Value As Of | ||||||||||
(in thousands) | Balance Sheet Location | June 30, 2018 | December 31, 2017 | |||||||
Derivatives not designated as hedging instruments | ||||||||||
Propane swap agreements | Derivative assets, at fair value | $ | — | $ | 13 | |||||
Natural gas futures contracts | Derivative assets, at fair value | 90 | — | |||||||
Derivatives designated as cash flow hedges | ||||||||||
Natural gas futures contracts | Derivative assets, at fair value | 120 | 92 | |||||||
Propane swap agreements | Derivative assets, at fair value | 324 | 1,181 | |||||||
Total asset derivatives | $ | 534 | $ | 1,286 | ||||||
Liability Derivatives | ||||||||||
Fair Value As Of | ||||||||||
(in thousands) | Balance Sheet Location | June 30, 2018 | December 31, 2017 | |||||||
Derivatives not designated as hedging instruments | ||||||||||
Natural gas futures contracts | Derivative liabilities, at fair value | $ | 77 | $ | 5,776 | |||||
Derivatives designated as cash flow hedges | ||||||||||
Natural gas futures contracts | Derivative liabilities, at fair value | 779 | 469 | |||||||
Natural gas swap contracts | Derivative liabilities, at fair value | — | 2 | |||||||
Propane swap agreements | Derivative liabilities, at fair value | 30 | — | |||||||
Total liability derivatives | $ | 886 | $ | 6,247 | ||||||
Amount of Gain (Loss) on Derivatives: | ||||||||||||||||||
Location of Gain | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||
(in thousands) | (Loss) on Derivatives | 2018 | 2017 | 2018 | 2017 | |||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||
Realized gain on forward contracts and options (1) | Revenue | $ | — | $ | — | $ | — | $ | 112 | |||||||||
Natural gas futures contracts | Cost of sales | (128 | ) | 497 | (2,963 | ) | 621 | |||||||||||
Propane swap agreements | Cost of sales | (4 | ) | — | (13 | ) | (4 | ) | ||||||||||
Derivatives designated as fair value hedges | ||||||||||||||||||
Put /Call option (2) | Cost of sales | — | — | — | (9 | ) | ||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||||||||
Propane swap agreements | Cost of sales | (181 | ) | 77 | (645 | ) | 465 | |||||||||||
Propane swap agreements | Other comprehensive loss | 106 | (218 | ) | (886 | ) | (775 | ) | ||||||||||
Natural gas futures contracts | Cost of sales | (161 | ) | 631 | 137 | 1,781 | ||||||||||||
Natural gas swap contracts | Cost of sales | (31 | ) | — | (481 | ) | — | |||||||||||
Natural gas swap contracts | Other comprehensive income | 523 | — | 588 | — | |||||||||||||
Natural gas futures contracts | Other comprehensive loss | 861 | (1,211 | ) | (871 | ) | (124 | ) | ||||||||||
Total | $ | 985 | $ | (224 | ) | $ | (5,134 | ) | $ | 2,067 | ||||||||
(1) | All of the realized and unrealized gain (loss) on forward contracts represents the effect of trading activities on our condensed consolidated statements of income. |
(2) | As a fair value hedge with no ineffective portion, the unrealized gains and losses associated with this call option are recorded in cost of sales, offset by the corresponding change in the value of propane inventory (hedged item), which is also recorded in cost of sales. The amounts in cost of sales offset to zero, and the unrealized gains and losses of this put option effectively changed the value of propane inventory on the condensed consolidated balance sheets. |
13. | Fair Value of Financial Instruments |
Fair Value Measurements Using: | ||||||||||||||||
As of June 30, 2018 | Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Investments—equity securities | $ | 21 | $ | 21 | $ | — | $ | — | ||||||||
Investments—guaranteed income fund | 671 | — | — | 671 | ||||||||||||
Investments—mutual funds and other | 6,794 | 6,794 | — | — | ||||||||||||
Total investments | 7,486 | 6,815 | — | 671 | ||||||||||||
Derivative assets | 534 | — | 534 | — | ||||||||||||
Total assets | $ | 8,020 | $ | 6,815 | $ | 534 | $ | 671 | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | 886 | $ | — | $ | 886 | $ | — | ||||||||
Fair Value Measurements Using: | ||||||||||||||||
As of December 31, 2017 | Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Investments—equity securities | $ | 22 | $ | 22 | $ | — | $ | — | ||||||||
Investments—guaranteed income fund | 648 | — | — | 648 | ||||||||||||
Investments—mutual funds and other | 6,086 | 6,086 | — | — | ||||||||||||
Total investments | 6,756 | 6,108 | — | 648 | ||||||||||||
Derivative assets | 1,286 | — | 1,286 | — | ||||||||||||
Total assets | $ | 8,042 | $ | 6,108 | $ | 1,286 | $ | 648 | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | 6,247 | $ | — | $ | 6,247 | $ | — | ||||||||
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Beginning Balance | $ | 648 | $ | 561 | |||
Purchases and adjustments | 54 | 65 | |||||
Transfers | (24 | ) | — | ||||
Distribution | (12 | ) | — | ||||
Investment income | 5 | 4 | |||||
Ending Balance | $ | 671 | $ | 630 | |||
14. | Long-Term Debt |
June 30, | December 31, | |||||||
(in thousands) | 2018 | 2017 | ||||||
FPU secured first mortgage bonds (1) : | ||||||||
9.08% bond, due June 1, 2022 | $ | 7,984 | $ | 7,982 | ||||
Uncollateralized senior notes: | ||||||||
5.50% note, due October 12, 2020 | 6,000 | 6,000 | ||||||
5.93% note, due October 31, 2023 | 16,500 | 18,000 | ||||||
5.68% note, due June 30, 2026 | 23,200 | 26,100 | ||||||
6.43% note, due May 2, 2028 | 7,000 | 7,000 | ||||||
3.73% note, due December 16, 2028 | 20,000 | 20,000 | ||||||
3.88% note, due May 15, 2029 | 50,000 | 50,000 | ||||||
3.25% note, due April 30, 2032 | 70,000 | 70,000 | ||||||
3.48% note, due May 31, 2038 | 50,000 | — | ||||||
Promissory notes | 26 | 97 | ||||||
Capital lease obligation | 1,351 | 2,070 | ||||||
Less: debt issuance costs | (488 | ) | (433 | ) | ||||
Total long-term debt | 251,573 | 206,816 | ||||||
Less: current maturities | (9,977 | ) | (9,421 | ) | ||||
Total long-term debt, net of current maturities | $ | 241,596 | $ | 197,395 | ||||
• | state and federal legislative and regulatory initiatives (including deregulation) that affect cost and investment recovery, have an impact on rate structures, and affect the speed and the degree to which competition enters the electric and natural gas industries; |
• | the outcomes of regulatory, tax, environmental and legal matters, including whether pending matters are resolved within current estimates and whether the costs associated with such matters are adequately covered by insurance or recoverable in rates; |
• | the impact of significant changes to current tax regulations and rates; |
• | the timing of certification authorizations associated with new capital projects; |
• | the ability to construct facilities at or below estimated costs; |
• | changes in environmental and other laws and regulations to which we are subject and environmental conditions of property that we now, or may in the future, own or operate; |
• | possible increased federal, state and local regulation of the safety of our operations; |
• | general economic conditions, including any potential effects arising from terrorist attacks and any hostilities or other external factors over which we have no control; |
• | long-term global climate change, which could adversely affect customer demand or cause extreme weather conditions that disrupt the Company's operations; |
• | the weather and other natural phenomena, including the economic, operational and other effects of hurricanes, ice storms and other damaging weather events; |
• | customers' preferred energy sources; |
• | industrial, commercial and residential growth or contraction in our markets or service territories; |
• | the effect of competition on our businesses; |
• | the timing and extent of changes in commodity prices and interest rates; |
• | the ability to establish new, and maintain key, supply sources; |
• | the effect of spot, forward and future market prices on our various energy businesses; |
• | the extent of our success in connecting natural gas and electric supplies to transmission systems and in expanding natural gas and electric markets; |
• | the creditworthiness of counterparties with which we are engaged in transactions; |
• | the capital-intensive nature of our regulated energy businesses; |
• | the results of financing efforts, including our ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings and general economic conditions; |
• | the ability to successfully execute, manage and integrate merger, acquisition or divestiture plans; regulatory or other limitations imposed as a result of a merger, acquisition or divestiture; and the success of the business following a merger, acquisition or divestiture; |
• | the impact on our costs and funding obligations, under our pension and other post-retirement benefit plans, of potential downturns in the financial markets, lower discount rates, and costs associated with the Patient Protection and Affordable Care Act; |
• | the ability to continue to hire, train and retain appropriately qualified personnel; |
• | the effect of accounting pronouncements issued periodically by accounting standard-setting bodies; |
• | the timing and success of technological improvements; and |
• | risks related to cyber-attacks or cyber-terrorism that could disrupt our business operations or result in failure of information technology systems. |
• | executing a capital investment program in pursuit of growth opportunities that generate returns equal to or greater than our cost of capital; |
• | expanding our energy distribution and transmission businesses organically as well as into new geographic areas; |
• | providing new services in our current service territories; |
• | expanding our footprint in potential growth markets through strategic acquisitions; |
• | entering new unregulated energy markets and business lines that will complement our existing operating units and growth strategy while capitalizing on opportunities across the energy value chain; and |
• | differentiating the Company as a full-service energy supplier/partner/provider through a customer-centric model. |
Three Months Ended | ||||||||||||
June 30, | Increase | |||||||||||
2018 | 2017 | (decrease) | ||||||||||
(in thousands except per share) | ||||||||||||
Business Segment: | ||||||||||||
Regulated Energy segment | $ | 14,304 | $ | 14,086 | $ | 218 | ||||||
Unregulated Energy segment | 490 | 2 | 488 | |||||||||
Other businesses and eliminations | (1,546 | ) | (27 | ) | (1,519 | ) | ||||||
Operating Income | $ | 13,248 | $ | 14,061 | $ | (813 | ) | |||||
Other expense, net | (262 | ) | (1,002 | ) | 740 | |||||||
Interest charges | 3,881 | 3,073 | 808 | |||||||||
Pre-tax Income | 9,105 | 9,986 | (881 | ) | ||||||||
Income taxes | 2,718 | 3,940 | (1,222 | ) | ||||||||
Net Income | $ | 6,387 | $ | 6,046 | $ | 341 | ||||||
Earnings Per Share of Common Stock | ||||||||||||
Basic | $ | 0.39 | $ | 0.37 | $ | 0.02 | ||||||
Diluted | $ | 0.39 | $ | 0.37 | $ | 0.02 | ||||||
(in thousands, except per share data) | Pre-tax Income | Net Income | Earnings Per Share | |||||||||
Second Quarter of 2017 Reported Results | $ | 9,986 | $ | 6,046 | $ | 0.37 | ||||||
Adjusting for unusual items: | ||||||||||||
One-time separation expenses associated with a former executive | (1,548 | ) | (1,421 | ) | (0.09 | ) | ||||||
Absence of Xeron expenses, including 2017 wind-down expenses | 173 | 122 | 0.01 | |||||||||
(1,375 | ) | (1,299 | ) | (0.08 | ) | |||||||
Increased Gross Margins: | ||||||||||||
Implementation of Eastern Shore settled rates* (1) | 2,365 | 1,659 | 0.10 | |||||||||
TCJA impact - refunds and reserves for future refunds to ratepayers(2) | (2,284 | ) | (1,602 | ) | (0.10 | ) | ||||||
Service expansions* | 1,652 | 1,158 | 0.07 | |||||||||
Natural gas growth (including customer and consumption growth but excluding service expansions) | 1,575 | 1,105 | 0.07 | |||||||||
Return to normal weather | 1,108 | 778 | 0.05 | |||||||||
Nonrecurring margin increase at PESCO | 1,092 | 766 | 0.05 | |||||||||
Incremental margin from PESCO operations | 592 | 415 | 0.03 | |||||||||
Unregulated Energy growth excluding PESCO | 503 | 353 | 0.02 | |||||||||
Florida electric reliability/modernization program* | 352 | 247 | 0.02 | |||||||||
GRIP* | 306 | 215 | 0.01 | |||||||||
7,261 | 5,094 | 0.32 | ||||||||||
Decreased (Increased) Other Operating Expenses: | ||||||||||||
Higher outside services and facilities maintenance costs (3) | (1,602 | ) | (1,124 | ) | (0.07 | ) | ||||||
Higher payroll expense (increased staffing and annual salary increases) (3) | (1,534 | ) | (1,076 | ) | (0.07 | ) | ||||||
Higher depreciation, asset removal and property tax costs due to new capital investments (3) | (848 | ) | (595 | ) | (0.04 | ) | ||||||
Higher incentive compensation costs (based on period-over-period results) (3) | (811 | ) | (569 | ) | (0.03 | ) | ||||||
Incremental operating expenses for PESCO | (764 | ) | (536 | ) | (0.03 | ) | ||||||
Higher benefit and other employee-related expenses (3) | (365 | ) | (256 | ) | (0.02 | ) | ||||||
(5,924 | ) | (4,156 | ) | (0.26 | ) | |||||||
Interest charges | (808 | ) | (567 | ) | (0.03 | ) | ||||||
Income taxes - including TCJA impact - decreased effective tax rate | — | 1,295 | 0.08 | |||||||||
Net other changes | (35 | ) | (26 | ) | (0.01 | ) | ||||||
(843 | ) | 702 | 0.04 | |||||||||
Second Quarter of 2018 Reported Results | $ | 9,105 | $ | 6,387 | $ | 0.39 | ||||||
Six Months Ended | ||||||||||||
June 30, | Increase | |||||||||||
2018 | 2017 | (decrease) | ||||||||||
(in thousands except per share) | ||||||||||||
Business Segment: | ||||||||||||
Regulated Energy segment | $ | 41,015 | $ | 37,481 | $ | 3,534 | ||||||
Unregulated Energy segment | 14,174 | 11,577 | 2,597 | |||||||||
Other businesses and eliminations | (1,535 | ) | 102 | (1,637 | ) | |||||||
Operating Income | $ | 53,654 | $ | 49,160 | $ | 4,494 | ||||||
Other expense, net | (194 | ) | (1,703 | ) | 1,509 | |||||||
Interest charges | 7,545 | 5,811 | 1,734 | |||||||||
Pre-tax Income | 45,915 | 41,646 | 4,269 | |||||||||
Income taxes | 12,674 | 16,456 | (3,782 | ) | ||||||||
Net Income | $ | 33,241 | $ | 25,190 | $ | 8,051 | ||||||
Earnings Per Share of Common Stock | ||||||||||||
Basic | $ | 2.03 | $ | 1.54 | $ | 0.49 | ||||||
Diluted | $ | 2.03 | $ | 1.54 | $ | 0.49 | ||||||
(in thousands, except per share data) | Pre-tax Income | Net Income | Earnings Per Share | |||||||||
Six Months Ended June 30, 2017 Reported Results | $ | 41,646 | $ | 25,190 | $ | 1.54 | ||||||
Adjusting for unusual items: | ||||||||||||
One-time separation expenses associated with a former executive | (1,548 | ) | (1,421 | ) | (0.09 | ) | ||||||
Absence of Xeron expenses, including 2017 wind-down expenses | 870 | 630 | 0.04 | |||||||||
(678 | ) | (791 | ) | (0.05 | ) | |||||||
Increased Gross Margins: | ||||||||||||
TCJA impact - refunds and reserves for future refunds to ratepayers(2) | (5,421 | ) | (3,925 | ) | (0.24 | ) | ||||||
Return to normal weather | 5,159 | 3,735 | 0.23 | |||||||||
Implementation of Eastern Shore settled rates* (1) | 5,095 | 3,689 | 0.22 | |||||||||
Natural gas growth (including customer and consumption growth but excluding service expansions) | 3,342 | 2,420 | 0.15 | |||||||||
Service expansions* | 2,316 | 1,677 | 0.10 | |||||||||
Unregulated Energy growth excluding PESCO | 2,044 | 1,480 | 0.09 | |||||||||
Nonrecurring margin decrease at PESCO | (863 | ) | (625 | ) | (0.04 | ) | ||||||
Florida electric reliability/modernization program* | 767 | 555 | 0.03 | |||||||||
GRIP* | 602 | 436 | 0.03 | |||||||||
Incremental margin from PESCO operations | 255 | 185 | 0.01 | |||||||||
13,296 | 9,627 | 0.58 | ||||||||||
Decreased (Increased) Other Operating Expenses: | ||||||||||||
Higher payroll expense (increased staffing and annual salary increases) (3) | (2,395 | ) | (1,734 | ) | (0.11 | ) | ||||||
Higher depreciation, asset removal and property tax costs due to new capital investments (3) | (1,949 | ) | (1,411 | ) | (0.09 | ) | ||||||
Incremental operating expenses for PESCO | (1,715 | ) | (1,242 | ) | (0.08 | ) | ||||||
Higher facilities maintenance costs (3) | (1,554 | ) | (1,125 | ) | (0.07 | ) | ||||||
Lower regulatory and outside services costs (3) | 1,298 | 940 | 0.06 | |||||||||
Higher incentive compensation costs (based on period-over-period results) (3) | (1,187 | ) | (859 | ) | (0.05 | ) | ||||||
(7,502 | ) | (5,431 | ) | (0.34 | ) | |||||||
Interest charges | (1,734 | ) | (1,255 | ) | (0.08 | ) | ||||||
Income taxes - including TCJA impact - decreased effective tax rate | — | 5,262 | 0.32 | |||||||||
Net other changes | 887 | 639 | 0.06 | |||||||||
(847 | ) | 4,646 | 0.30 | |||||||||
Six Months Ended June 30, 2018 Reported Results | $ | 45,915 | $ | 33,241 | $ | 2.03 | ||||||
Gross Margin for the Period | |||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Year Ended | Estimate for | ||||||||||||||||||||||||
June 30, | June 30, | December 31, | Fiscal | ||||||||||||||||||||||||
in thousands | 2018 | 2017 | 2018 | 2017 | 2017 | 2018 | 2019 | ||||||||||||||||||||
Florida GRIP | $ | 3,647 | $ | 3,341 | $ | 7,211 | $ | 6,609 | $ | 13,454 | $ | 14,287 | $ | 14,370 | |||||||||||||
Eastern Shore Rate Case (1) | 2,365 | — | 5,095 | — | 3,693 | 9,800 | 9,800 | ||||||||||||||||||||
Florida Electric Reliability/Modernization Pilot Program (1) | 352 | — | 767 | — | 94 | 1,558 | 1,558 | ||||||||||||||||||||
New Smyrna Beach, Florida Project (1) | 352 | — | 704 | — | 235 | 1,409 | 1,409 | ||||||||||||||||||||
2017 Eastern Shore System Expansion Project - including interim services (1) | 859 | — | 1,995 | — | 433 | 8,101 | 15,799 | ||||||||||||||||||||
Northwest Florida Expansion Project (1) | 870 | — | 870 | — | — | 3,484 | 6,500 | ||||||||||||||||||||
(Palm Beach County) Belvedere, Florida Project (1) | — | — | — | — | — | 635 | 1,131 | ||||||||||||||||||||
Total | $ | 8,445 | $ | 3,341 | $ | 16,642 | $ | 6,609 | $ | 17,909 | $ | 39,274 | $ | 50,567 | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2018 | 2017 | Variance | 2018 | 2017 | Variance | ||||||||||||
Delmarva | |||||||||||||||||
Actual HDD | 424 | 288 | 136 | 2,719 | 2,246 | 473 | |||||||||||
10-Year Average HDD ("Delmarva Normal") | 423 | 429 | (6 | ) | 2,785 | 2,783 | 2 | ||||||||||
Variance from Delmarva Normal | 1 | (141 | ) | (66 | ) | (537 | ) | ||||||||||
Florida | |||||||||||||||||
Actual HDD | 17 | 13 | 4 | 507 | 298 | 209 | |||||||||||
10-Year Average HDD ("Florida Normal") | 16 | 19 | (3 | ) | 533 | 555 | (22 | ) | |||||||||
Variance from Florida Normal | 1 | (6 | ) | (26 | ) | (257 | ) | ||||||||||
Ohio | |||||||||||||||||
Actual HDD | 662 | 508 | 154 | 3,652 | 2,992 | 660 | |||||||||||
10-Year Average HDD ("Ohio Normal") | 614 | 637 | (23 | ) | 3,683 | 3,774 | (91 | ) | |||||||||
Variance from Ohio Normal | 48 | (129 | ) | (31 | ) | (782 | ) | ||||||||||
Florida | |||||||||||||||||
Actual CDD | 952 | 935 | 17 | 1,091 | 1,080 | 11 | |||||||||||
10-Year Average CDD ("Florida CDD Normal") | 969 | 955 | 14 | 1,058 | 1,037 | 21 | |||||||||||
Variance from Florida CDD Normal | (17 | ) | (20 | ) | 33 | 43 | |||||||||||
Three Months Ended | Six Months Ended | |||||||
In thousands | June 30, 2018 | June 30, 2018 | ||||||
Customer growth: | ||||||||
Residential | $ | 351 | $ | 864 | ||||
Commercial and industrial excluding new service in Northwest Florida | 303 | 604 | ||||||
New service in Northwest Florida | 276 | 305 | ||||||
Total customer growth | 930 | 1,773 | ||||||
Volume growth: | ||||||||
Residential | 151 | 855 | ||||||
Commercial and industrial | 387 | 1,026 | ||||||
Other - including unbilled revenue | 107 | (312 | ) | |||||
Total volume growth | 645 | 1,569 | ||||||
Total natural gas distribution growth | $ | 1,575 | $ | 3,342 | ||||
Three Months Ended | Six Months Ended | ||||||
June 30, 2018 | June 30, 2018 | ||||||
(in thousands) | |||||||
Three and Six Months Ended June 30, 2017 Reported Results | $ | 921 | $ | 4,389 | |||
Incremental Margin from Growth and ARM Acquisition in 2017 | 592 | 255 | |||||
Nonrecurring Margin factors - non-renewal of Supply Agreement, MTM and Other Adjustments | 1,092 | (863 | ) | ||||
2018 Margin | $ | 2,605 | $ | 3,781 | |||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
in thousands | 2018 | 2017 | 2018 | 2017 | |||||||||||
Total Gross Margin | $ | 2,606 | $ | 921 | $ | 3,781 | $ | 4,389 | |||||||
Operating Expense | (1,918 | ) | (1,154 | ) | (3,857 | ) | (2,143 | ) | |||||||
Operating Income/(Loss) | $ | 688 | $ | (233 | ) | $ | (76 | ) | $ | 2,246 | |||||
Three Months Ended | ||||||||||||
June 30, | Increase | |||||||||||
2018 | 2017 | (decrease) | ||||||||||
(in thousands) | ||||||||||||
Revenue | $ | 70,504 | $ | 70,996 | $ | (492 | ) | |||||
Cost of sales | 20,010 | 24,167 | (4,157 | ) | ||||||||
Gross margin | 50,494 | 46,829 | 3,665 | |||||||||
Operations & maintenance | 25,022 | 22,407 | 2,615 | |||||||||
Depreciation & amortization | 7,620 | 7,142 | 478 | |||||||||
Other taxes | 3,548 | 3,194 | 354 | |||||||||
Other operating expenses | 36,190 | 32,743 | 3,447 | |||||||||
Operating income | $ | 14,304 | $ | 14,086 | $ | 218 | ||||||
(in thousands) | Margin Impact | ||
Implementation of Eastern Shore settled rates | $ | 2,365 | |
Service expansions | 1,652 | ||
Natural gas growth (including customer and consumption growth but excluding service expansions) | 1,575 | ||
Return to more normal weather | 359 | ||
Florida electric reliability/modernization program | 352 | ||
Florida GRIP | 306 | ||
Other | (660 | ) | |
Total | 5,949 | ||
TCJA impact - refunds and reserves for future refunds to ratepayers* | (2,284 | ) | |
Quarter-over-quarter increase in gross margin | $ | 3,665 | |
• | $1.2 million generated by Peninsula Pipeline from the New Smyrna Beach and Northwest Pipeline Expansion Projects; and |
• | $859,000 from Eastern Shore's services, including those provided on an interim basis, to industrial customers in Delaware in conjunction with a portion of Eastern Shore's 2017 Expansion Project that was placed in service in December 2017, and $223,000 in additional margin as a result of an increase in rates from service provided to an industrial customer, partially offset by the absence of short-term contracts totaling $544,000 that were replaced by long-term service agreements. |
• | $645,000 from higher sales on the Delmarva Peninsula and in Florida that were not driven by weather; |
• | $560,000 from Florida natural gas customer growth, due primarily to an increase in residential and commercial customers served as well as expansion to Northwest Florida; and |
• | $371,000 from a 3.8 percent increase in the average number of residential customers served by the Delmarva natural gas distribution operations, as well as growth in the number of commercial and industrial customers served. |
• | $1.2 million in higher costs related to outside services to support growth and facilities and maintenance costs to maintain system integrity; |
• | $1.0 million in higher staffing costs for additional personnel to support growth, including the largest project to date in our history, Eastern Shore's 2017 System Expansion Project; |
• | $722,000 in higher depreciation, asset removal and property tax costs associated with recent capital investments; and |
• | $384,000 in higher incentive compensation costs due to improved period-over-period results. |
Six Months Ended | ||||||||||||
June 30, | Increase | |||||||||||
2018 | 2017 | (decrease) | ||||||||||
(in thousands) | ||||||||||||
Revenue | $ | 179,897 | $ | 168,650 | $ | 11,247 | ||||||
Cost of sales | 68,241 | 64,411 | 3,830 | |||||||||
Gross margin | 111,656 | 104,239 | 7,417 | |||||||||
Operations & maintenance | 48,169 | 45,987 | 2,182 | |||||||||
Depreciation & amortization | 15,136 | 14,027 | 1,109 | |||||||||
Other taxes | 7,336 | 6,744 | 592 | |||||||||
Other operating expenses | 70,641 | 66,758 | 3,883 | |||||||||
Operating income | $ | 41,015 | $ | 37,481 | $ | 3,534 | ||||||
(in thousands) | Margin Impact | ||
Implementation of Eastern Shore settled rates | $ | 5,095 | |
Natural gas growth (including customer and consumption growth but excluding service expansions) | 3,342 | ||
Service expansions | 2,316 | ||
Return to more normal weather | 1,314 | ||
Florida electric reliability/modernization program | 767 | ||
Florida GRIP | 602 | ||
Other | (598 | ) | |
Total | 12,838 | ||
TCJA impact - refunds and reserves for future refunds to ratepayers* | (5,421 | ) | |
Period-over-Period increase in gross margin | $ | 7,417 | |
• | $1.6 million from higher sales on the Delmarva Peninsula and in Florida that were not driven by weather; |
• | $889,000 from Florida natural gas customer growth, due primarily to an increase in residential and commercial customers served; and |
• | $885,000 from a 3.7 percent increase in the average number of residential customers served by the Delmarva natural gas distribution operations, as well as growth in the number of commercial and industrial customers served. |
• | $2.0 million from Eastern Shore's services, including those provided on an interim basis, to industrial customers in Delaware in conjunction with a portion of Eastern Shore's 2017 Expansion Project that was placed in service in December 2017, and $447,000 in additional margin as a result of an increase in rates from service provided to an industrial customer, partially offset by the absence of short-term contracts totaling $1.2 million that were replaced by long-term service agreements; and |
• | $1.6 million generated by Peninsula Pipeline from the New Smyrna Beach and Northwest Pipeline Expansion Projects. |
• | $1.7 million in higher depreciation, asset removal and property tax costs associated with recent capital investments; |
• | $1.4 million in higher staffing costs for additional personnel to support growth, including the largest project to date in the Company's history, Eastern Shore's 2017 System Expansion Project; |
• | $1.1 million in higher facilities and maintenance costs to maintain system integrity; and |
• | $592,000 in higher incentive compensation costs as a result of improved period-over-period results; offset by |
• | $1.1 million in lower regulatory and outside services costs due to the absence of rate case filings in 2018. |
Three Months Ended | ||||||||||||
June 30, | Increase | |||||||||||
2018 | 2017 | (decrease) | ||||||||||
(in thousands) | ||||||||||||
Revenue | $ | 76,345 | $ | 63,049 | $ | 13,296 | ||||||
Cost of sales | 59,430 | 49,313 | 10,117 | |||||||||
Gross margin | 16,915 | 13,736 | 3,179 | |||||||||
Operations & maintenance | 13,406 | 11,047 | 2,359 | |||||||||
Depreciation & amortization | 2,198 | 1,929 | 269 | |||||||||
Other taxes | 821 | 758 | 63 | |||||||||
Total operating expenses | 16,425 | 13,734 | 2,691 | |||||||||
Operating income | $ | 490 | $ | 2 | $ | 488 | ||||||
(in thousands) | Margin Impact | |||
PESCO | $ | 1,684 | ||
Propane delivery operations - additional customer consumption - weather | 806 | |||
Propane delivery operations - increased margin driven by growth and other factors | 536 | |||
Aspire Energy - increased margins largely due to higher commodity pricing on natural gas liquid sales | 207 | |||
Other | (54 | ) | ||
Quarter-over-quarter increase in gross margin | $ | 3,179 | ||
(in thousands) | Margin Impact | |||
Nonrecurring margin increase associated with the Southeast portfolio | $ | 642 | ||
Nonrecurring annual imbalance settlement from 2017 customer Supply Agreement | 451 | |||
Additional margin associated with the acquisition of the Midwest portfolio in the third quarter of 2017 | 325 | |||
Incremental margin from growth | 266 | |||
Total Incremental Margin from PESCO for the Second Quarter of 2018 | $ | 1,684 | ||
• | $764,000 in higher expenses as a result of increased staffing, infrastructure and risk management system costs to ensure the profitable future growth of PESCO; |
• | $515,000 in higher staffing and associated costs for additional personnel to support growth and increased deliveries driven by the colder weather in the second quarter of 2018, compared to the same period in 2017; |
• | $475,000 in higher outside services associated primarily with growth and ongoing compliance activities; |
• | $427,000 in higher incentive compensation costs as a result of improved period-over-period results; |
• | $173,000 in higher benefits and employee-related costs (since we self-insure for healthcare, benefits costs fluctuate depending upon filed claims); and |
• | $131,000 in higher depreciation expense. |
Six Months Ended | ||||||||||||
June 30, | Increase | |||||||||||
2018 | 2017 | (decrease) | ||||||||||
(in thousands) | ||||||||||||
Revenue | $ | 221,712 | $ | 155,774 | $ | 65,938 | ||||||
Cost of sales | 174,496 | 115,219 | 59,277 | |||||||||
Gross margin | 47,216 | 40,555 | 6,661 | |||||||||
Operations & maintenance | 26,766 | 23,426 | 3,340 | |||||||||
Depreciation & amortization | 4,364 | 3,833 | 531 | |||||||||
Other taxes | 1,912 | 1,719 | 193 | |||||||||
Total operating expenses | 33,042 | 28,978 | 4,064 | |||||||||
Operating income | $ | 14,174 | $ | 11,577 | $ | 2,597 | ||||||
(in thousands) | Margin Impact | |||
Propane delivery operations - additional customer consumption - weather | 2,923 | |||
Propane delivery operations - increased margin driven by growth and other factors | 1,789 | |||
Aspire Energy - customer consumption - weather | 921 | |||
PESCO | (608 | ) | ||
Aspire Energy - increased margin driven by growth and other factors | 585 | |||
Growth in wholesale propane margins and sales | 333 | |||
Other | 718 | |||
Period-over-period increase in gross margin | $ | 6,661 | ||
(in thousands) | Margin Impact | ||
Reversal of unrealized MTM loss recorded in the fourth quarter of 2017 | $ | 5,713 | |
Nonrecurring margin and annual imbalance settlement from 2017 customer Supply Agreement | (1,673 | ) | |
Net impact of extraordinary costs associated with the 2018 Bomb Cyclone for the Mid-Atlantic wholesale portfolio (1) | (3,284 | ) | |
Loss for the Mid-Atlantic retail portfolio caused by pipeline capacity constraints in January and warm weather in February 2018 (1) | (2,261 | ) | |
Nonrecurring margin increase associated with the Southeast portfolio | 642 | ||
Additional margin associated with the acquisition of the Midwest portfolio in the third quarter of 2017 | 273 | ||
Other | (18 | ) | |
Total Change in Gross Margin for PESCO for the six months ended June 30, 2018 | $ | (608 | ) |
• | $1.7 million in higher expenses as a result of increased staffing, infrastructure and risk management system costs to ensure the profitable future growth of PESCO; |
• | $996,000 in higher staffing and associated costs for additional personnel to support growth and increased deliveries driven by the colder weather in the first six months of 2018, compared to the same period in 2017; |
• | $646,000 in higher expenses, including vehicle fuel costs, sales and advertising, taxes other than income taxes and credit collections costs; |
• | $594,000 in higher incentive compensation costs as a result of improved period-over-period results; |
• | $443,000 in higher maintenance costs as a result of ongoing compliance activities; |
• | $266,000 in higher depreciation and amortization expense due to increased investments; offset by |
• | the absence of $870,000 in 2017 Xeron wind-down expenses. |
2018 | |||
(dollars in thousands) | |||
Regulated Energy: | |||
Natural gas distribution | $ | 65,594 | |
Natural gas transmission | 110,813 | ||
Electric distribution | 8,930 | ||
Total Regulated Energy | 185,337 | ||
Unregulated Energy: | |||
Propane distribution | 13,359 | ||
Other unregulated energy | 7,413 | ||
Total Unregulated Energy | 20,772 | ||
Other: | |||
Corporate and other businesses | 10,289 | ||
Total Other | 10,289 | ||
Total 2018 Budgeted Capital Expenditures | $ | 216,398 | |
June 30, 2018 | December 31, 2017 | |||||||||||||
(in thousands) | ||||||||||||||
Long-term debt, net of current maturities | $ | 241,596 | 32 | % | $ | 197,395 | 29 | % | ||||||
Stockholders’ equity | 507,986 | 68 | % | 486,294 | 71 | % | ||||||||
Total capitalization, excluding short-term debt | $ | 749,582 | 100 | % | $ | 683,689 | 100 | % | ||||||
June 30, 2018 | December 31, 2017 | |||||||||||||
(in thousands) | ||||||||||||||
Short-term debt | $ | 235,288 | 24 | % | $ | 250,969 | 26 | % | ||||||
Long-term debt, including current maturities | 251,573 | 25 | % | 206,816 | 22 | % | ||||||||
Stockholders’ equity | 507,986 | 51 | % | 486,294 | 52 | % | ||||||||
Total capitalization, including short-term debt | $ | 994,847 | 100 | % | $ | 944,079 | 100 | % | ||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2018 | 2017 | |||||||
(in thousands) | ||||||||
Net cash provided by (used in): | ||||||||
Operating activities | $ | 108,352 | $ | 96,370 | ||||
Investing activities | (126,661 | ) | (88,577 | ) | ||||
Financing activities | 17,207 | (9,552 | ) | |||||
Net decrease in cash and cash equivalents | (1,102 | ) | (1,759 | ) | ||||
Cash and cash equivalents—beginning of period | 5,614 | 4,178 | ||||||
Cash and cash equivalents—end of period | $ | 4,512 | $ | 2,419 | ||||
• | Changes in net accounts receivable and accrued revenue and accounts payable and accrued liabilities decreased cash flows by $20.5 million, due primarily to the timing of the receipt of customer payments as well as the timing of payments to vendors. |
• | Net income, adjusted for reconciling activities, increased cash flows by $8.2 million, due primarily to the higher performance during the period. |
• | Net cash flows from changes in propane inventories increased by approximately $12.4 million as a result of higher use of propane, which decreased our inventory levels. |
• | Changes in net regulatory assets and liabilities increased cash flows by $6.8 million, due primarily to the change in fuel costs collected through the various cost recovery mechanisms. |
• | Changes in net prepaid expenses and other current assets, customer deposits and refunds increased cash flows by $5.2 million. |
• | Increased cash flows from lower repayments of short-term borrowing of $45.6 million under our line of credit arrangements; |
• | Receipt of $74.9 million in net cash proceeds from the Revolver and the issuance of the NYL Shelf Notes (Series A) in January and May 2018, respectively, which increased cash flow by $5.1 million during the six months ended June 30, 2018, compared to the same period in 2017. For the six months ended June 30, 2017, we received $69.8 million in net proceeds from the issuance of the Prudential Shelf Notes; |
• | Increased cash flows of $3.0 million as a result of changes in cash overdrafts; partially offset by |
• | Higher repayment of long-term debt of $25.0 million during the six months ended June 30, 2018, compared to the same period in 2017. |
Payments Due by Period | ||||||||||||||||||||
Less than 1 year | 1 - 3 years | 3 - 5 years | More than 5 years | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Long-term debt(1) | $ | 8,626 | $ | 31,200 | $ | 38,700 | $ | 172,200 | $ | 250,726 | ||||||||||
Purchase obligations - Commodity (2) | 116,416 | 39,752 | 77 | — | 156,245 | |||||||||||||||
Total | $ | 125,042 | $ | 70,952 | $ | 38,777 | $ | 172,200 | $ | 406,971 | ||||||||||
(1) | Excludes capital lease obligation, debt issuance costs and an unamortized discount of $847,000. |
(2) | In addition to the obligations noted above, we have agreements with commodity suppliers that have provisions with no minimum purchase requirements. There are no monetary penalties for reducing the amounts purchased; however, the propane contracts allow the suppliers to reduce the amounts available in the winter season if we do not purchase specified amounts during the summer season. Under these contracts, the commodity prices will fluctuate as market prices fluctuate. |
(in thousands) | Balance at December 31, 2017 | Increase (Decrease) in Fair Market Value | Less Amounts Settled | Balance at June 30, 2018 | |||||||||||
PESCO | $ | (6,153 | ) | $ | 14,607 | $ | (9,099 | ) | $ | (645 | ) | ||||
Sharp | 1,192 | (1,553 | ) | 655 | 294 | ||||||||||
Total | $ | (4,961 | ) | $ | 13,054 | $ | (8,444 | ) | $ | (351 | ) | ||||
(in thousands) | 2018 | 2019 | 2020 | 2021 | 2022 | Total Fair Value | |||||||||||||||||
Price based on ICE - PESCO | $ | (750 | ) | $ | (541 | ) | $ | 972 | $ | (329 | ) | $ | 3 | $ | (645 | ) | |||||||
Price based on Mont Belvieu - Sharp | 244 | 65 | (8 | ) | (7 | ) | — | 294 | |||||||||||||||
Total | $ | (506 | ) | $ | (476 | ) | $ | 964 | $ | (336 | ) | $ | 3 | $ | (351 | ) | |||||||
Total Number of Shares | Average Price Paid | Total Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Number of Shares That May Yet Be Purchased Under the Plans | ||||||||||
Period | Purchased | per Share | or Programs (2) | or Programs (2) | |||||||||
April 1, 2018 through April 30, 2018 (1) | 406 | $ | 73.05 | — | — | ||||||||
May 1, 2018 through May 31, 2018 | — | $ | — | — | — | ||||||||
June 1, 2018 through June 30, 2018 | — | $ | — | — | — | ||||||||
Total | 406 | $ | 73.05 | — | — | ||||||||
(1) | Chesapeake Utilities purchased shares of common stock on the open market for the purpose of reinvesting the dividend on deferred stock units held in the Rabbi Trust accounts for certain directors and senior executives under the Deferred Compensation Plan. The Deferred Compensation Plan is discussed in detail in Item 8 under the heading “Notes to the Consolidated Financial Statements—Note 16, Employee Benefit Plans” in our latest Annual Report on Form 10-K for the year ended December 31, 2017. During the quarter ended June 30, 2018, 406 shares were purchased through the reinvestment of dividends on deferred stock units. |
(2) | Except for the purposes described in Footnote (1), Chesapeake Utilities has no publicly announced plans or programs to repurchase its shares. |
Item 6. | Exhibits |
10.1 | Separation Agreement and Release, effective as of June 7, 2018, by and between Chesapeake Utilities Corporation and Elaine B. Bittner, which was filed as Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on June 8, 2018, and is incorporated herein by reference thereto. | |
31.1* | ||
31.2* | ||
32.1* | ||
32.2* | ||
101.INS* | XBRL Instance Document. | |
101.SCH* | XBRL Taxonomy Extension Schema Document. | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. | |
CHESAPEAKE UTILITIES CORPORATION |
/S/ BETH W. COOPER |
Beth W. Cooper Senior Vice President and Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2018 of Chesapeake Utilities Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/S/ MICHAEL P. MCMASTERS |
Michael P. McMasters President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2018 of Chesapeake Utilities Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/S/ BETH W. COOPER |
Beth W. Cooper Senior Vice President and Chief Financial Officer |
/S/ MICHAEL P. MCMASTERS |
Michael P. McMasters |
August 9, 2018 |
/S/ BETH W. COOPER |
Beth W. Cooper |
August 9, 2018 |
Document and Entity Information - shares |
6 Months Ended | |
|---|---|---|
Jun. 30, 2018 |
Jul. 31, 2018 |
|
| Document Document And Entity Information [Abstract] | ||
| Entity Registrant Name | CHESAPEAKE UTILITIES CORP | |
| Trading Symbol | CPK | |
| Entity Central Index Key | 0000019745 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Filer Category | Large Accelerated Filer | |
| Document Type | 10-Q | |
| Document Period End Date | Jun. 30, 2018 | |
| Document Fiscal Year Focus | 2018 | |
| Document Fiscal Period Focus | Q2 | |
| Amendment Flag | false | |
| Entity Common Stock, Shares Outstanding | 16,378,545 |
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
| Operating Revenues | ||||
| Regulated Energy | $ 70,504 | $ 70,996 | $ 179,897 | $ 168,650 |
| Unregulated Energy and other | 66,160 | 54,088 | 196,123 | 141,594 |
| Total Operating Revenues | 136,664 | 125,084 | 376,020 | 310,244 |
| Operating Expenses | ||||
| Regulated Energy cost of sales | 20,010 | 24,167 | 68,241 | 64,411 |
| Unregulated Energy and other cost of sales | 49,393 | 40,505 | 149,219 | 101,260 |
| Operations | 36,281 | 30,013 | 68,983 | 62,502 |
| Maintenance | 3,619 | 3,403 | 7,211 | 6,634 |
| Gain From A Settlement | (130) | (130) | (130) | (130) |
| Depreciation and amortization | 9,839 | 9,094 | 19,543 | 17,906 |
| Other taxes | 4,404 | 3,971 | 9,299 | 8,501 |
| Total Operating Expenses | 123,416 | 111,023 | 322,366 | 261,084 |
| Operating Income | 13,248 | 14,061 | 53,654 | 49,160 |
| Other expense, net | (262) | (1,002) | (194) | (1,703) |
| Interest charges | 3,881 | 3,073 | 7,545 | 5,811 |
| Income Before Income Taxes | 9,105 | 9,986 | 45,915 | 41,646 |
| Income taxes | 2,718 | 3,940 | 12,674 | 16,456 |
| Net Income | $ 6,387 | $ 6,046 | $ 33,241 | $ 25,190 |
| Weighted Average Common Shares Outstanding: | ||||
| Basic (shares) | 16,369,641 | 16,340,665 | 16,360,540 | 16,329,009 |
| Diluted (shares) | 16,417,082 | 16,382,207 | 16,410,061 | 16,373,038 |
| Earnings Per Share of Common Stock: | ||||
| Basic (in dollars per share) | $ 0.39 | $ 0.37 | $ 2.03 | $ 1.54 |
| Diluted (in dollars per share) | 0.39 | 0.37 | 2.03 | 1.54 |
| Cash Dividends Declared Per Share of Common Stock (in dollars per share) | $ 0.370 | $ 0.325 | $ 0.695 | $ 0.630 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Net Income | $ 6,387 | $ 6,046 | $ 33,241 | $ 25,190 |
| Other Comprehensive Income (Loss), net of tax: | ||||
| Amortization of prior service cost, net of tax of $(5), $(8), $(11) and $(16), respectively | (14) | (12) | (28) | (23) |
| Net gain, net of tax of $41, $69, $80 and $145, respectively | 108 | 101 | 217 | 194 |
| Cash Flow Hedges, net of tax: | ||||
| Unrealized gain (loss) on commodity contract cash flow hedges, net of tax of $429, $(554), $(327) and $(362), respectively | 1,061 | (875) | (728) | (537) |
| Total Other Comprehensive Income (Loss), net of tax | 1,155 | (786) | (539) | (366) |
| Comprehensive Income | $ 7,542 | $ 5,260 | $ 32,702 | $ 24,824 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Amortization of prior service cost, tax | $ (5) | $ (8) | $ (11) | $ (16) |
| Net gain, tax | 41 | 69 | 80 | 145 |
| Unrealized (loss)/gain on commodity contract cash flow hedges, tax | $ 429 | $ (554) | $ (327) | $ (362) |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Allowance for uncollectible accounts | $ 1,076 | $ 936 |
| Common stock, par value (in dollars per share) | $ 0.4867 | $ 0.4867 |
| Common stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
| Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 |
| Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
| Preferred Stock, Shares Issued | 0 | 0 |
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
| Operating Activities | ||
| Net Income | $ 33,241 | $ 25,190 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 19,543 | 17,906 |
| Depreciation and accretion included in other costs | 4,428 | 3,939 |
| Deferred income taxes | 7,668 | 12,034 |
| Realized loss on commodity contracts/sale of assets/investments | 3,857 | 2,223 |
| Unrealized (gain) loss on investments/commodity contracts | (114) | 184 |
| Employee benefits and compensation | 456 | 819 |
| Share-based compensation | 2,247 | 812 |
| Other, net | (23) | (17) |
| Changes in assets and liabilities: | ||
| Accounts receivable and accrued revenue | 32,230 | 26,862 |
| Propane inventory, storage gas and other inventory | 9,844 | (2,543) |
| Regulatory assets/liabilities, net | 11,035 | 4,255 |
| Prepaid expenses and other current assets | 11,523 | 2,129 |
| Accounts payable and other accrued liabilities | (26,152) | (280) |
| Income taxes receivable | 8,358 | 8,500 |
| Customer deposits and refunds | (2,733) | 1,487 |
| Accrued compensation | (5,196) | (3,876) |
| Other assets and liabilities, net | (1,860) | (3,254) |
| Net cash provided by operating activities | 108,352 | 96,370 |
| Investing Activities | ||
| Property, plant and equipment expenditures | (126,811) | (88,627) |
| Proceeds from sales of assets | 323 | 185 |
| Environmental expenditures | (173) | (135) |
| Net cash used in investing activities | (126,661) | (88,577) |
| Financing Activities | ||
| Common stock dividends | (10,301) | (9,636) |
| (Purchase) issuance of stock under the Dividend Reinvestment Plan | (328) | 421 |
| Tax Withholding payments related to net settled stock compensation | (1,210) | (692) |
| Change in cash overdrafts due to outstanding checks | 632 | (2,370) |
| Net repayment under line of credit agreements and short-term borrowing under the Revolver | (16,313) | (61,910) |
| Proceeds from issuance of long-term debt | 74,916 | 69,800 |
| Repayment of long-term debt, long-term borrowing under the Revolver and capital lease obligation | (30,189) | (5,165) |
| Net cash provided (used) in financing activities | 17,207 | (9,552) |
| Net Decrease in Cash and Cash Equivalents | (1,102) | (1,759) |
| Cash and Cash Equivalents—Beginning of Period | 5,614 | 4,178 |
| Cash and Cash Equivalents—End of Period | $ 4,512 | $ 2,419 |
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Additional Paid-In Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Loss [Member] |
Deferred Compensation [Member] |
Treasury Stock [Member] |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Beginning Balances (shares) at Dec. 31, 2016 | [1] | 16,303,499 | |||||||||||||||
| Beginning Balances at Dec. 31, 2016 | $ 446,086 | [1] | $ 7,935 | $ 250,967 | $ 192,062 | $ (4,878) | $ 2,416 | $ (2,416) | |||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
| Net Income | 58,124 | 58,124 | |||||||||||||||
| Other comprehensive income (loss) | 606 | 606 | |||||||||||||||
| Dividend declared | (21,045) | (21,045) | |||||||||||||||
| Retirement savings plan and dividend reinvestment plan (shares) | 10,771 | ||||||||||||||||
| Dividend reinvestment plan | 735 | $ 5 | 730 | ||||||||||||||
| Stock issuance, shares | 0 | ||||||||||||||||
| Stock issuance | (10) | $ 0 | (10) | ||||||||||||||
| Share-based compensation (shares) | [2],[3] | 30,172 | |||||||||||||||
| Share-based compensation and tax benefit | [2],[3] | 1,798 | $ 15 | 1,783 | |||||||||||||
| Treasury stock activities | 0 | 979 | (979) | ||||||||||||||
| Ending Balances (shares) at Dec. 31, 2017 | [1],[4] | 16,344,442 | |||||||||||||||
| Ending Balances at Dec. 31, 2017 | $ 486,294 | [4] | $ 7,955 | 253,470 | 229,141 | (4,272) | 3,395 | (3,395) | |||||||||
| Preferred Stock, Shares Authorized | 2,000,000 | ||||||||||||||||
| Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||||||||||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
| Net Income | $ 33,241 | 33,241 | |||||||||||||||
| Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (907) | 907 | (907) | ||||||||||||||
| Other comprehensive income (loss) | (539) | (539) | |||||||||||||||
| Dividend declared | (11,414) | (11,414) | |||||||||||||||
| Stock Issued During Period, Shares, Dividend Reinvestment Plan | 0 | ||||||||||||||||
| Stock Issued During Period, Value, Dividend Reinvestment Plan | (2) | $ 0 | (2) | ||||||||||||||
| Share-based compensation (shares) | [2],[3] | 34,103 | |||||||||||||||
| Share-based compensation and tax benefit | [2],[3] | 1,904 | $ 16 | 1,888 | |||||||||||||
| Treasury stock activities | 0 | 387 | (387) | ||||||||||||||
| Ending Balances (shares) at Jun. 30, 2018 | [1],[4] | 16,378,545 | |||||||||||||||
| Ending Balances at Jun. 30, 2018 | $ 507,986 | [4] | $ 7,971 | $ 255,356 | 250,377 | $ (5,718) | $ 3,782 | $ (3,782) | |||||||||
| Preferred Stock, Shares Authorized | 2,000,000 | ||||||||||||||||
| Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||||||||||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
| Cumulative Effect of New Accounting Principle in Period of Adoption | $ (1,498) | $ (1,498) | |||||||||||||||
| |||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended |
|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
Dec. 31, 2017 |
|
| Statement of Stockholders' Equity [Abstract] | |||
| Dividend declared (in dollars per share) | $ 0.370 | $ 0.695 | $ 1.2800 |
| Deferred compensation plan held Rabbi Trust (shares) | 96,204 | 96,204 | 90,961 |
| Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 | 2,000,000 |
| Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
| Proceeds from Issuance of Common Stock | $ (10) | ||
| Shares issued under the performance incentive plan withheld for employee taxes (shares) | 16,918 | 10,269 |
Summary of Accounting Policies |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Accounting Policies | Summary of Accounting Policies Basis of Presentation References in this document to the “Company,” “Chesapeake Utilities,” “we,” “us” and “our” are intended to mean Chesapeake Utilities Corporation, its divisions and/or its subsidiaries, as appropriate in the context of the disclosure. The accompanying unaudited condensed consolidated financial statements have been prepared in compliance with the rules and regulations of the SEC and GAAP. In accordance with these rules and regulations, certain information and disclosures normally required for audited financial statements have been condensed or omitted. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in our latest Annual Report on Form 10-K for the year ended December 31, 2017. In the opinion of management, these financial statements reflect normal recurring adjustments that are necessary for a fair presentation of our results of operations, financial position and cash flows for the interim periods presented. Due to the seasonality of our business, results for interim periods are not necessarily indicative of results for the entire fiscal year. Revenue and earnings are typically greater during the first and fourth quarters, when consumption of energy is highest due to colder temperatures. ARM, Chipola and Central Gas Asset Acquisitions In August 2017, PESCO acquired certain natural gas marketing assets of ARM. The acquired assets complement PESCO’s existing asset portfolio and expanded our regional footprint and retail demand in a market where we had existing pipeline capacity and wholesale liquidity. We accounted for the purchase of these assets as a business combination and initially recorded goodwill of $6.8 million, within our Unregulated Energy segment. In connection with the acquisition, we initially recorded a contingent consideration liability of $2.5 million, based on the acquired business achieving a gross margin target in 2018. During the second quarter of 2018, we identified certain known information as of the acquisition date that was not considered in our original assessment and would have resulted in no contingent consideration liability being initially recorded. Therefore, we reversed the originally-recorded contingent liability and reduced goodwill by $2.5 million. We have similarly revised the condensed consolidated balance sheet as of December 31, 2017. These revisions are considered immaterial to our condensed consolidated financial statements. The contingent liability will be re-evaluated each reporting period in 2018. However, our current assessment is that no contingent consideration will be paid. In August 2017, Flo-gas acquired certain operating assets of Chipola, which provides propane distribution service to approximately 800 residential and commercial customers in Bay, Calhoun, Gadsden, Jackson, Liberty, and Washington Counties, Florida. In December 2017, Flo-gas acquired certain operating assets of Central Gas, which provides propane distribution service to approximately 325 residential and commercial customers in Glades, Highlands, Martin, Okeechobee, and St. Lucie Counties, Florida. The revenue and net income from these acquisitions that were included in our condensed consolidated statements of income for the three and six months ended June 30, 2018, were not material. The amounts recorded in conjunction with our acquisitions are preliminary and subject to adjustment based on additional valuations performed during the measurement period. FASB Statements and Other Authoritative Pronouncements Recently Adopted Accounting Standards Revenue from Contracts with Customers (ASC 606) - On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers, and all the related amendments using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard to all of our contracts as an adjustment to the beginning balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the new revenue standard to be immaterial to our net income on an ongoing basis. This standard requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. The guidance also requires a number of disclosures regarding the nature, amount, timing, and uncertainty of revenue and the related cash flows. See Note 3, Revenue Recognition, for additional information. The following highlights the impact of the adoption of ASC 606 on our condensed consolidated income statements for the three and six months ended June 30, 2018 and condensed consolidated balance sheet as of June 30, 2018:
The primary impact of the adoption of ASC 606 on our income statement was the delayed recognition of approximately $204,000 in revenue in the first six months of 2018 to future years and a cumulative adjustment that decreased retained earnings and other assets by $1.6 million at June 30, 2018, associated with a long-term firm transmission contract with an industrial customer. Compensation-Retirement Benefits (ASC 715) - In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post Retirement Benefit Cost. Under this guidance, employers are required to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit costs are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The update allows for capitalization of the service cost component when applicable. We adopted ASU 2017-07 on January 1, 2018 and applied the changes in the presentation of the service cost and other components of net benefit costs, retrospectively. Aside from changes in presentation, implementation of this standard did not have a material impact on our financial position or results of operations. Statement of Cash Flows (ASC 230) - In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain transactions are classified in the statement of cash flows. We adopted ASU 2016-15 on January 1, 2018. Implementation of this new standard did not have a material impact on our condensed consolidated statement of cash flows. Compensation - Stock Compensation (ASC 718) - In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting, to clarify when to account for a change in the terms or conditions of a share-based payment award as a modification. Under this guidance, modification accounting is required only if the fair value, the vesting conditions or the award classification (equity or liability) changes because of a change in the terms or conditions of the award. We adopted ASU 2017-09, prospectively, on January 1, 2018. Implementation of this new standard did not have a material impact on our financial position or results of operations. Income Statement - Reporting Comprehensive Income (ASC 220) - In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. We adopted ASU 2018-02 on January 1, 2018 and reclassified stranded tax effects from accumulated other comprehensive loss related to our employee benefit plans and commodity contract cash flows hedges. Implementation of this new standard did not have a material impact on our financial position and results of operations. See Note 8, Stockholders' Equity, for additional information. Recent Accounting Standards Yet to be Adopted Leases (ASC 842) - In February 2016, the FASB issued ASU 2016-02, Leases, which provides updated guidance regarding accounting for leases. This update requires a lessee to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. ASU 2016-02 will be effective for our annual and interim financial statements beginning January 1, 2019, although early adoption is permitted. The FASB allows companies to elect several practical expedients, in order to simplify the transition to the new standard. The following three expedients must all be elected together:
•An entity need not reassess initial direct costs for any existing leases. Other practical expedients that can be elected individually are:
We expect to use the practical expedients to assist in implementation of this standard. We have assessed all of our leases and have concluded that we may have some operating leases that qualify for the short-term lease exception. Upon adoption, we will record the right-of-use assets and the lease liabilities related to our operating leases with a lease term in excess of one year. We do not believe that this will have a material impact on our financial position, results of operations or cash flows. In January 2018, the FASB issued ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, which provides a practical expedient under Topic 842 to not evaluate existing or expired land easements that were not previously accounted for as leases. We plan to utilize the provided practical expedient for existing and expired land easements and will assess all new or modified land easements and right-of-way agreements, under the guidance of ASU 2016-02, following its adoption. Intangibles-Goodwill (ASC 350) - In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 will be effective for our annual and interim financial statements beginning January 1, 2020, although early adoption is permitted. The amendments included in this ASU are to be applied prospectively. We believe that implementation of this new standard will not have a material impact on our financial position or results of operations. Derivatives and Hedging (ASC 815) - In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. Among other changes to hedge designation, ASU 2017-12 expands the risks that can be designated as hedged risks in cash flow hedges to include cash flow variability from contractually specified components of forecasted purchases or sales of non-financial assets. ASU 2017-12 requires the entire change in fair value of a hedging instrument included in the assessment of hedge effectiveness to be presented in the same income statement line that is used to present the earnings effects of the hedged item for fair value hedges and in other comprehensive income for cash flow hedges. For disclosures, ASU 2017-12 requires a tabular presentation of the income statement effect of fair value and cash flow hedges, and it eliminates the requirement to disclose the ineffective portion of the change in fair value of hedging instruments. ASU 2017-12 will be effective for our annual and interim financial statements beginning January 1, 2019, although early adoption is permitted. We intend to adopt the updated hedge accounting standard in 2018, which we expect will reduce the MTM volatility in PESCO’s results due to better alignment of risk management activities and financial reporting, risk component hedging and certain other simplifications of hedge accounting guidance. Compensation - Stock Compensation (ASC 718) - In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 will be effective for our annual and interim financial statements beginning January 1, 2019, although early adoption is permitted. We believe that implementation of this new standard will not have a material impact on our financial position or results of operations. |
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Calculation of Earnings Per Share |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Calculation of Earnings Per Share | Calculation of Earnings Per Share
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Revenue Recognition (Notes) |
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Text Block] | 3. Revenue Recognition We recognize revenue when our performance obligations under contracts with customers have been satisfied, which generally occurs when our businesses have delivered or transported natural gas, electricity or propane to customers. We exclude sales taxes and other similar taxes from the transaction price. Typically, our customers pay for the goods and/or services we provide in the month following the satisfaction of our performance obligation. The following table displays our revenue by major source based on product and service type for the three months ended June 30, 2018:
(1) Includes other revenue (revenues from sources other than contracts with customers) of $(356,000) and $82,000 for our Regulated and Unregulated Energy segments, respectively. The sources of other revenues include revenue from alternative revenue programs related to weather normalization for Maryland division and Sandpiper and late fees. The following table displays our revenue by major source based on product and service type for the six months ended June 30, 2018:
(1) Includes other revenue (revenues from sources other than contracts with customers) of $(945,000) and $155,000 for our Regulated and Unregulated Energy segments, respectively. The sources of other revenues include revenue from alternative revenue programs related to weather normalization for Maryland division and Sandpiper and late fees. Regulated Energy segment The businesses within our Regulated Energy segment are regulated utilities whose operations and customer contracts are subject to rates approved by the state PSC or the FERC. Our energy distribution operations deliver natural gas or electricity to customers and we bill the customers for both the delivery of natural gas or electricity and the related commodity, where applicable. In most jurisdictions, our customers are also required to purchase the commodity from us, although certain customers in some jurisdictions may purchase the commodity from a third-party retailer (in which case we provide delivery service only). We consider the delivery of natural gas or electricity and/or the related commodity sale as one performance obligation because the commodity and its delivery are highly interrelated with two-way dependency on one another. Our performance obligation is satisfied over time as natural gas or electricity is delivered and consumed by the customer. We recognize revenues based on monthly meter readings, which are based on the quantity of natural gas or electricity used and the approved rates. We accrue unbilled revenues for natural gas and electricity that have been delivered, but not yet billed, at the end of an accounting period to the extent that billing and delivery do not coincide. Revenues for Eastern Shore are based on rates approved by the FERC. The FERC has also authorized Eastern Shore to negotiate rates above or below the FERC-approved maximum rates, which customers can elect as an alternative to the FERC-approved maximum rates. Eastern Shore's services can be firm or interruptible. Firm services are offered on a guaranteed basis and are available at all times unless prevented by force majeure or other permitted curtailments. Interruptible customers receive service only when there is available capacity or supply. Our performance obligation is satisfied over time as we deliver natural gas to the customers' locations. We recognize revenues based on meter readings at the end of the month, which are based on capacity used or reserved and the fixed monthly charge. Peninsula Pipeline is engaged in natural gas intrastate transmission to third-party customers and certain affiliates in the State of Florida. Our performance obligation is satisfied over time as the natural gas is transported to customers. We recognize revenue based on rates approved by the Florida PSC and the capacity used or reserved. Since we bill customers at the end of each month, we do not have any unbilled revenue. Unregulated Energy segment Revenues generated from the Unregulated Energy segment are not subject to any federal, state, or local pricing regulations. Aspire Energy primarily sources gas from hundreds of conventional producers and performs gathering and processing functions to maintain the quality and reliability of its gas for its wholesale customers. Aspire Energy's performance obligation is satisfied over time as natural gas is delivered to its customers. Aspire Energy recognizes revenue based on the deliveries of natural gas at contractually agreed upon rates (which are based upon an established monthly index price and a monthly operating fee, as applicable). For natural gas customers, we accrue unbilled revenues for natural gas that has been delivered, but not yet billed, at the end of an accounting period to the extent that billing and delivery do not coincide with the end of the accounting period. Eight Flags' CHP plant, which is located on land leased from Rayonier, produces three sources of energy: electricity, steam and heated water. Rayonier purchases the steam (unfired and fired) and heated water, which is used in Rayonier’s production facility. Our electric distribution operation purchases the electricity generated by the CHP plant for distribution to its customers. Eight Flags' performance obligation is satisfied over time as deliveries of heated water, steam and electricity occur. Eight Flags recognizes revenues over time based on the amount of heated water, steam and electricity generated and delivered to its customers. For our propane delivery operations, we recognize revenue based upon customer type and service offered. Generally, for propane bulk delivery customers (customers without meters) and wholesale sales, our performance obligation is satisfied when we deliver propane to the customers' locations (point-in-time basis). We recognize revenue from these customers based on the number of gallons delivered and the price per gallon at the point-in-time of delivery. For our propane delivery customers with meters, we satisfy our performance obligation over time when we deliver propane to customers. We recognize revenue over time based on the amount of propane consumed and the applicable price per unit. For propane delivery metered customers, we accrue unbilled revenues for propane that has been delivered, but not yet billed, at the end of an accounting period to the extent that billing and delivery do not coincide with the end of the accounting period. PESCO provides natural gas supply and asset management services to customers (including affiliates of Chesapeake Utilities) located primarily in Florida, the Delmarva Peninsula, and the Appalachian Basin. PESCO's performance obligation is satisfied over time as natural gas is delivered to its customers. PESCO recognizes revenue over time based on customer meter readings, on a monthly basis. We accrue unbilled revenues for natural gas that has been delivered, but not yet billed, at the end of an accounting period to the extent that billing and delivery do not coincide with the end of the accounting period. Contract balances The timing of revenue recognition, customer billings and cash collections results in trade receivables, unbilled receivables (contract assets), and customer advances (contract liabilities) in our consolidated balance sheets. The opening and closing balances of our trade receivables, contract assets, and contract liabilities are as follows:
Our trade receivables are included in trade and other receivables in the condensed consolidated balance sheets. Our non-current contract assets are included in other assets in the condensed consolidated balance sheet and relate to operations and maintenance costs incurred by Eight Flags that have not yet been recovered through rates for the sale of electricity to our electric distribution operation pursuant to a long-term service agreement. At times, we receive advances or deposits from our customers before we satisfy our performance obligation, resulting in contract liabilities. At June 30, 2018 and December 31, 2017, we had a contract liability, which was included in other accrued liabilities in the condensed consolidated balance sheet, of $175,000 and $407,000, respectively, and which relates to non-refundable prepaid fixed fees for our Delmarva Peninsula propane delivery operation's retail offerings. Our performance obligation is satisfied over the term of the respective retail offering plan on a ratable basis. For the three and six months ended June 30, 2018, we recognized revenue of $84,000 and $336,000, respectively. Practical expedients For our businesses with agreements that contain variable consideration, we use the invoice practical expedient method. We determined that the amounts invoiced to customers correspond directly with the value to our customers and our performance to date. For our long-term contracts, the revenue we recognize corresponds directly to the amount we have the right to invoice, which corresponds directly to our performance obligation. Our performance obligations under our long-term contracts are satisfied over time. As a practical expedient, we do not disclose information about remaining, or unsatisfied, performance obligations for these long-term contracts since the revenue recognized corresponds to the amount we have the right to invoice. |
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Rates and Other Regulatory Activities |
6 Months Ended |
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Jun. 30, 2018 | |
| Regulated Operations [Abstract] | |
| Rates and Other Regulatory Activities | Rates and Other Regulatory Activities Our natural gas and electric distribution operations in Delaware, Maryland and Florida are subject to regulation by their respective PSC; Eastern Shore, our natural gas transmission subsidiary, is subject to regulation by the FERC; and Peninsula Pipeline, our intrastate pipeline subsidiary, is subject to regulation by the Florida PSC. Chesapeake Utilities' Florida natural gas distribution division and FPU’s natural gas and electric distribution operations continue to be subject to regulation, as separate entities, by the Florida PSC. Delaware Effect of the TCJA on rate payers: As a result of the enactment of the TCJA, the Delaware PSC issued an order requiring all rate-regulated utilities to file estimates of the impact of the TCJA on their cost of service for the most recent test year available (including new rate schedules). The order also required utilities to propose procedures for changing rates to reflect those impacts on or before March 31, 2018. Our Delaware Division filed the requisite reports with the Delaware PSC on March 30, 2018. Subsequently, the Delaware Division filed an updated report reflecting the impact of the TCJA on May 31, 2018. If, after reviewing the required filing, the Delaware PSC determines to reduce our rates, it will open a new docket and establish a procedural schedule for conducting an evidentiary hearing regarding the impacts of the TCJA on our operations and existing rates. In addition, on February 1, 2018, the Delaware PSC issued an order requiring Delaware rate-regulated public utilities to accrue regulatory liabilities reflecting the jurisdictional revenue requirement impacts of changes in the federal corporate income tax laws. In compliance with this order, we have established a regulatory liability to reflect the estimated impacts of the changes in the federal corporate income tax rate. We believe that the ultimate impact of the TCJA on rates charged by our Delaware Division will not have a material effect on our financial position or results of operations. Underserved Area Rates: In December 2017, we filed an application for approval of natural gas expansion service offerings. We requested authorization to utilize existing expansion area tariff rates to serve customers located outside of the current Sussex County, Delaware expansion area boundaries that cannot be economically served under the regular tariff rates. In June 2018, we reached a settlement agreement with the relevant parties, which allows us to utilize higher rates for areas outside of our existing expansion area. The settlement agreement was presented before the Delaware PSC at its public meeting on July 10, 2018, where it was unanimously passed. CGS: In June 2018, we filed with the Delaware PSC an application requesting approval of the acquisition and subsequent conversion of propane CGS to natural gas located within our territory. We requested the establishment of regulatory accounting treatment and valuation of the acquisition of certain CGS, approval of a methodology to set new distribution rates for CGS customers and approval of a new system-wide tariff rate that will recover CGS conversion costs. The Delaware PSC has not reached a decision as of the date of this filing. Maryland Division and Sandpiper Effect of the TCJA on rate payers: The Maryland PSC issued an order requiring all Maryland public utilities whose rates are explicitly grossed-up for income taxes to track the impacts of the TCJA beginning January 1, 2018. The order required utilities to: (a) apply regulatory accounting treatment, which includes the use of regulatory assets and liabilities, for all impacts of the TCJA; (b) file an explanation of the expected effects of the TCJA on their expenses and revenues; and (c) explain when and how they expect to pass on to their customers the net results of those effects. We established a regulatory liability to reflect the impacts of the changes in the federal corporate income tax rate in compliance with the Maryland PSC’s order. In addition, our Maryland Division and Sandpiper made compliance filings that included preliminary estimates of the annual impact of the change in the statutory federal income tax rate from 35 percent to 21 percent. In April 2018, the Maryland PSC ordered both the Maryland Division and Sandpiper to implement reduced rates effective May 1, 2018 reflecting the impact of the TCJA. We implemented a one-time bill credit for the regulatory liability established for the refunds and issued the refunds to customers in June. We must also submit an informational filing to the Maryland PSC within 60 days of the refund payment date. Additionally, pursuant to the Maryland PSC’s order, if in the future the Maryland Division or Sandpiper identify any additional tax savings, we must submit an additional filing to the Maryland PSC in order to return those savings to customers as soon as possible. We believe that the ultimate impact of the TCJA on rates charged by our Maryland Division and Sandpiper will not have a material effect on our financial position or results of operations. Florida Florida Electric Reliability/Modernization Pilot Program: In July 2017, FPU’s electric division filed a petition with the Florida PSC requesting approval to include $15.2 million of certain capital project expenditures in its rate base and to adjust its base rates accordingly. These expenditures are designed to improve the stability and safety of the electric system, while enhancing the capability of FPU’s electrical grid. An interconnection project with FPL, which enables FPU to mitigate fuel costs for its electric customers, was included in the $15.2 million capital project expenditures. In December 2017, the Florida PSC approved this petition, effective January 1, 2018. The settlement agreement prescribed the methodology for adjusting the new rates based on the lower federal income tax rate and the process and methodology regarding the refund of deferred income taxes, reclassified as a regulatory liability, as a result of the TCJA. We have established a regulatory liability to reflect the impacts of the changes in the federal corporate income tax rate in compliance with the settlement agreement. Electric Limited Proceeding-Storm Recovery: In February 2018, FPU’s electric division filed a petition with the Florida PSC, requesting recovery of incremental storm restoration costs related to several hurricanes and tropical storms, along with the replenishment of FPU’s storm reserve to its pre-storm level of $1.5 million. As a result of these hurricanes and tropical storms, FPU’s storm reserve was depleted and is currently at a deficit of $779,000. FPU is requesting approval of a surcharge of $1.82 per kilowatt per hour for two years to recover and replenish storm-related costs. At this time, no date for approval of this petition has been scheduled by the Florida PSC. Effect of the TCJA on ratepayers: The Office of Public Counsel filed a petition requesting that the Florida PSC establish a general docket to investigate and adjust rates for all investor-owned utilities related to the passage of the TCJA. The Florida PSC issued a Memorandum with a recommendation that, if utilities do not agree to a January 1, 2018 effective date, then the effective date should be February 6, 2018. On January 30, 2018, the Florida PSC scheduled informal meetings between its staff and interested persons to discuss the impact of the TCJA. Hearings for Florida’s electric utilities are tentatively scheduled for the first quarter of 2019 and hearings for the natural gas utilities are tentatively scheduled for the fourth quarter of 2018. In December 2017, the Florida PSC issued an order regarding the limited proceeding for FPU's electric division, which prescribes the applicability, timing and treatment of the implications of the TCJA, as discussed above. In June, each of our Florida natural gas operations filed a petition and testimony in support of the disposition of the impacts created by the TCJA. We believe that the ultimate impact of the TCJA on rates charged by FPU's electric division and our Florida natural gas operations will not have a material effect on our financial position or results of operations. Eastern Shore 2017 Expansion Project: In May 2016, the FERC approved Eastern Shore's request to initiate the pre-filing review process for its 2017 Expansion Project. The 2017 Expansion Project's facilities include approximately 23 miles of pipeline looping in Pennsylvania, Maryland and Delaware; upgrades to existing metering facilities in Lancaster County, Pennsylvania; installation of an additional compressor unit at Eastern Shore’s existing Daleville compressor station in Chester County, Pennsylvania; and approximately 17 miles of new mainline extension and two pressure control stations in Sussex County, Delaware. Eastern Shore entered into precedent agreements with seven existing customers, including three affiliates of Chesapeake Utilities, for a total of 61,162 Dts/d of additional firm natural gas transportation service on Eastern Shore’s pipeline system with an additional 52,500 Dts/d of firm transportation service at certain Eastern Shore receipt facilities. In October 2017, the FERC issued a CP authorizing Eastern Shore to construct the expansion facilities. The estimated cost of the 2017 Expansion Project is approximately $117.0 million. Eastern Shore submitted its Implementation Plan in October 2017, addressing the actions Eastern Shore will undertake to meet the environmental conditions set forth in the FERC's order. In December 2017, the TETLP interconnect upgrade was placed into service. In June 2018, the Fair Hill Loop in Chester County, Pennsylvania and Cecil County, Maryland was placed into service. With the exception of some minor facilities, the remaining segments of the 2017 Expansion Project are expected to be placed into service in various phases during the remainder of 2018. 2017 Rate Case Filing: In January 2017, Eastern Shore filed a base rate proceeding with the FERC, as required by the terms of its 2012 rate case settlement agreement. Eastern Shore based its proposed rates on the mainline cost of service of approximately $60.0 million resulting in an overall requested revenue increase of approximately $18.9 million and a requested rate of return on common equity of 13.75 percent. In March 2017, the FERC issued an order suspending the tariff rates for the usual five-month period. In August 2017, Eastern Shore implemented new rates, subject to refund, based on the outcome of the rate proceeding. Eastern Shore recorded incremental revenue of approximately $3.7 million for the year ended December 31, 2017, and established a regulatory liability to reserve a portion of the total incremental revenues generated by the new rates until the rate case settlement is approved by the FERC and customers receive refunds according to the terms of the settlement agreement. Eastern Shore filed an uncontested settlement agreement and a motion to place interim settlement rates into effect beginning on January 1, 2018. The FERC approved the settlement agreement in February 2018, and it became final in March 2018. Exclusive of the TCJA impact, base rates would have increased, on an annual basis, by approximately $9.8 million. Effect of the TCJA on ratepayers: In March 2018, Eastern Shore filed with the FERC its revised base rates, reflecting the change in its federal corporate income tax rate. These adjusted base rates became effective April 1, 2018 and will generate approximately $6.6 million, on an annual basis. Any excess accumulated deferred income tax balances will flow back to customers over the period determined in the next rate case, absent any transition rule included in the TCJA or other statutes or rules that would govern the flow-back period. In April 2018, Eastern Shore refunded to its customers, with interest, the difference between the proposed rates and the settlement rates. The refund to customers also reflected the difference in rates due to the impact of the TCJA. In March 2018, the FERC issued a Notice of Proposed Rulemaking that proposed a process to determine which jurisdictional natural gas pipelines may be collecting unjust and unreasonable rates in light of the recent reduction in the corporate income tax rate in the TCJA and changes to the FERC’s income tax allowance policies following the United Airlines, Inc. v. FERC decision. The Notice of Proposed Rulemaking proposed requiring interstate natural gas pipelines to provide an informational filing to allow the FERC to evaluate the impact of the TCJA on the pipelines’ revenue requirement. In April 2018, Eastern Shore filed comments in this proceeding requesting confirmation that Eastern Shore is not required to provide an informational filing because it has already implemented lower rates in accordance with the settlement agreement in its 2017 rate case approved by the FERC. In July 2018, the FERC issued a final rule, which largely adopted the process proposed in the Notice of Proposed Rulemaking requiring all interstate natural gas companies to file an informational filing for the purpose of evaluating the impact of the TCJA and the United Airlines, Inc. v. FERC decision on interstate natural gas pipelines’ revenue requirements. The final rule provides that an individual pipeline has the option to request a waiver if the pre-March 2018 settlement justifies not adjusting its rates at this time. We plan to file such a request. We believe that the ultimate resolution of this matter will not have a material effect on Eastern Shore’s financial position or results of operations. |
Environmental Commitments and Contingencies |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||
| Environmental Remediation Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| Environmental Commitments and Contingencies | Environmental Commitments and Contingencies We are subject to federal, state and local laws and regulations governing environmental quality and pollution control. These laws and regulations require us to remove or remediate, at current and former operating sites, the effect on the environment of the disposal or release of specified substances. MGP Sites We have participated in the investigation, assessment or remediation of, and have exposures at, seven former MGP sites. Those sites are located in Salisbury, Maryland; Seaford, Delaware; and Winter Haven, Key West, Pensacola, Sanford and West Palm Beach, Florida. We have also been in discussions with the MDE regarding another former MGP site located in Cambridge, Maryland. As of June 30, 2018, we had approximately $9.5 million in environmental liabilities related to FPU’s MGP sites in Key West, Pensacola, Sanford and West Palm Beach, Florida. FPU has approval to recover, from insurance and from customers through rates, up to $14.0 million of its environmental costs related to its MGP sites. Approximately $11.3 million has been recovered as of June 30, 2018, leaving approximately $2.7 million in regulatory assets for future recovery of environmental costs from FPU’s customers. Environmental liabilities for our MGP sites are recorded on an undiscounted basis based on the estimate of future costs provided by independent consultants. We continue to expect that all costs related to environmental remediation and related activities, including any potential future remediation costs for which we do not currently have approval for regulatory recovery, will be recoverable from customers through rates. The following is a summary of our remediation status and estimated costs to implement clean-up of our key MGP sites:
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Other Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2018 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Other Commitments and Contingencies | Other Commitments and Contingencies Natural Gas, Electric and Propane Supply We have entered into contractual commitments, with various expiration dates, to purchase natural gas, electricity and propane from various suppliers. In 2017, our Delmarva Peninsula natural gas distribution operations entered into asset management agreements with PESCO to manage their natural gas transportation and storage capacity. The agreements were effective as of April 1, 2017, and each has a three-year term, expiring on March 31, 2020. Previously, the Delaware PSC approved PESCO to serve as an asset manager with respect to our Delaware Division. In May 2013, Sandpiper entered into a capacity, supply and operating agreement with EGWIC to purchase propane over a six-year term ending in May 2019. Sandpiper's current annual commitment is approximately 2.2 million gallons. Sandpiper has the option to enter into either a fixed per-gallon price for some or all of the propane purchases or a market-based price utilizing one of two local propane pricing indices. Also in May 2013, Sharp entered into a separate supply and operating agreement with EGWIC. Under this agreement, Sharp has a commitment to supply propane to EGWIC over a six-year term ending in May 2019. Sharp's current annual commitment is approximately 2.2 million gallons. The agreement between Sharp and EGWIC is separate from the agreement between Sandpiper and EGWIC, and neither agreement permits the parties to set off the rights and obligations specified in one agreement against those specified in the other agreement. Chesapeake Utilities' Florida Division has firm transportation service contracts with FGT and Gulfstream. Pursuant to a capacity release program approved by the Florida PSC, all of the capacity under these agreements has been released to various third parties, including PESCO. Under the terms of these capacity release agreements, Chesapeake Utilities is contingently liable to FGT and Gulfstream should any party that acquired the capacity through release fail to pay the capacity charge. FPU’s electric fuel supply contracts require FPU to maintain an acceptable standard of creditworthiness based on specific financial ratios. FPU’s agreement with FPL requires FPU to meet or exceed a debt service coverage ratio of 1.25 times based on the results of the prior 12 months. If FPU fails to meet this ratio, it must provide an irrevocable letter of credit or pay all amounts outstanding under the agreement within five business days. FPU’s electric fuel supply agreement with Gulf Power requires FPU to meet the following ratios based on the average of the prior six quarters: (a) funds from operations interest coverage ratio (minimum of 2 times), and (b) total debt to total capital (maximum of 65 percent). If FPU fails to meet the requirements, it has to provide the supplier a written explanation of actions taken, or proposed to be taken, to become compliant. Failure to comply with the ratios specified in the Gulf Power agreement could also result in FPU having to provide an irrevocable letter of credit. As of June 30, 2018, FPU was in compliance with all of the requirements of its fuel supply contracts. Eight Flags provides electricity and steam generation services through its CHP plant located on Amelia Island, Florida. In June 2016, Eight Flags began selling power generated from the CHP plant to FPU pursuant to a 20-year power purchase agreement for distribution to its retail electric customers. In July 2016, Eight Flags also started selling steam, pursuant to a separate 20-year contract, to Rayonier, the landowner on which the CHP plant is located. The CHP plant is powered by natural gas transported by FPU through its distribution system and Peninsula Pipeline through its intrastate pipeline. Corporate Guarantees We have issued corporate guarantees to certain vendors of our subsidiaries, primarily PESCO. These corporate guarantees provide for the payment of natural gas purchases in the event that PESCO defaults. PESCO has never defaulted on its obligations to pay its suppliers. The liabilities for these purchases are recorded when incurred. The aggregate amount guaranteed at June 30, 2018 was approximately $72.5 million, with the guarantees expiring on various dates through June 2019. Chesapeake Utilities also guarantees the payment of FPU’s first mortgage bonds. The maximum exposure under this guarantee is the outstanding principal plus accrued interest balances. The outstanding principal balances of FPU’s first mortgage bonds approximate their carrying values (see Note 14, Long-Term Debt, for further details). Letters of Credit As of June 30, 2018, we have issued letters of credit totaling approximately $5.0 million related to the electric transmission services for FPU's electric division, the firm transportation service agreement between TETLP and our Delaware and Maryland divisions, the payment of natural gas purchases for PESCO, and to our current and previous primary insurance carriers. These letters of credit have various expiration dates through December 2019. There have been no draws on these letters of credit as of June 30, 2018. We do not anticipate that the counterparties will draw upon these letters of credit, and we expect that the letters of credit will be renewed to the extent necessary in the future. Other We are involved in certain other legal actions and claims arising in the normal course of business. We are also involved in certain legal and administrative proceedings before various governmental agencies concerning rates. In the opinion of management, the ultimate disposition of these proceedings will not have a material effect on our consolidated financial position, results of operations or cash flows. |
Segment Information |
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| 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. Our operations are comprised of two reportable segments:
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:
Our operations are entirely domestic. |
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Stockholder's Equity - Accumulated Other Comprehensive Income (Loss) |
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| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Income (Loss) | Stockholder's Equity Preferred Stock We had 2,000,000 authorized and unissued shares of preferred stock, $0.01 par value per share, as of June 30, 2018 and December 31, 2017. Shares of preferred stock may be issued from time to time, by authorization of our Board of Directors and without the necessity of further action or authorization by stockholders, in one or more series and with such voting powers, designations, preferences and relative, participating, optional or other special rights and qualifications as the Board of Directors may, in its discretion, determine. Accumulated Other Comprehensive Loss Defined benefit pension and postretirement plan items, unrealized gains (losses) of our propane swap agreements, call options and natural gas futures contracts, designated as commodity contracts cash flow hedges, are the components of our accumulated other comprehensive loss. During the first quarter of 2018, we elected early adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Accordingly, we reclassified stranded tax effects resulting from the TCJA from accumulated other comprehensive loss to retained earnings, related to our employee benefit plans and commodity contracts cash flow hedges. The following tables present the changes in the balance of accumulated other comprehensive (loss)/income as of June 30, 2018 and 2017. All amounts except the stranded tax reclassification are presented net of tax.
The following table presents amounts reclassified out of accumulated other comprehensive loss for the three and six months ended June 30, 2018 and 2017. Deferred gains or losses for our commodity contracts cash flow hedges are recognized in earnings upon settlement.
(1) These amounts are included in the computation of net periodic costs (benefits). See Note 9, Employee Benefit Plans, for additional details. (2) These amounts are included in the effects of gains and losses from derivative instruments. See Note 12, Derivative Instruments, for additional details. Amortization of defined benefit pension and postretirement plan items is included in operations expense, and gains and losses on propane swap agreements, call options and natural gas futures contracts are included in cost of sales in the accompanying consolidated statements of income. The income tax benefit is included in income tax expense in the accompanying consolidated statements of income. |
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Employee Benefit Plans |
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| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee Benefit Plans | Employee Benefit Plans Net periodic benefit costs for our pension and post-retirement benefits plans for the three and six months ended June 30, 2018 and 2017 are set forth in the following tables:
(1)As a result of our adoption of ASU 2017-07 on January 1, 2018, the "other than service" cost components of net periodic costs have been recorded or reclassified to other income (expense), net in the condensed consolidated statements of income. We expect to record pension and postretirement benefit costs of approximately $913,000 for 2018. Included in these costs is approximately $769,000 related to continued amortization of the FPU pension regulatory asset, which represents the portion attributable to FPU’s regulated energy operations for the changes in funded status that occurred, but were not recognized, as part of net periodic benefit costs prior to the FPU merger in 2009. This was deferred as a regulatory asset by FPU prior to the merger, to be recovered through rates pursuant to a previous order by the Florida PSC. The unamortized balance of this regulatory asset was approximately $942,000 and approximately $1.3 million at June 30, 2018 and December 31, 2017, respectively. Pursuant to a Florida PSC order, FPU continues to record, as a regulatory asset, a portion of the unrecognized pension and postretirement benefit costs related to its regulated operations after the FPU merger. The portion of the unrecognized pension and postretirement benefit costs related to FPU’s unregulated operations and Chesapeake Utilities' operations is recorded to accumulated other comprehensive loss. The following tables present the amounts included in the regulatory asset and accumulated other comprehensive loss that were recognized as components of net periodic benefit cost during the three months ended June 30, 2018 and 2017:
(1) See Note 8, Stockholder's Equity. During the three and six months ended June 30, 2018, we contributed approximately $126,000 and $198,000, respectively, to the Chesapeake Pension Plan and approximately $539,000 and $848,000, respectively, to the FPU Pension Plan. We expect to contribute a total of approximately $359,000 and approximately $1.5 million to the Chesapeake Pension Plan and FPU Pension Plan, respectively, during 2018, which represents the minimum annual contribution payments required. The Chesapeake SERP, the Chesapeake Postretirement Plan and the FPU Medical Plan are unfunded and are expected to be paid out of our general funds. Cash benefits paid under the Chesapeake SERP for the three and six months ended June 30, 2018, were approximately $38,000 and $76,000, respectively. We expect to pay total cash benefits of approximately $151,000 under the Chesapeake SERP in 2018. Cash benefits paid under the Chesapeake Postretirement Plan, primarily for medical claims for the three and six months ended June 30, 2018, were approximately $7,000 and $18,000, respectively. We estimate that approximately $97,000 will be paid for such benefits under the Chesapeake Postretirement Plan in 2018. Cash benefits paid under the FPU Medical Plan, primarily for medical claims for the three and six months ended June 30, 2018, were approximately $13,000 and $24,000, respectively. We estimate that approximately $88,000 will be paid for such benefits under the FPU Medical Plan in 2018. |
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Investments |
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| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | Investments The investment balances at June 30, 2018 and December 31, 2017, consisted of the following:
We classify these investments as trading securities and report them at their fair value. For the three months ended June 30, 2018 and 2017, we recorded a net unrealized loss of approximately $158,000 and a net unrealized gain of approximately $181,000, respectively, in other expense, net in the condensed consolidated statements of income related to these investments. For the six months ended June 30, 2018 and 2017, we recorded a net unrealized loss of approximately $113,000 and a net unrealized gain of approximately $433,000, respectively, in other expense, net in the condensed consolidated statements of income related to these investments. For the investment in the Rabbi Trust, we also have recorded an associated liability, which is included in other pension and benefit costs in the consolidated balance sheets and is adjusted each period for the gains and losses incurred by the investments in the Rabbi Trust. |
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Share-Based Compensation |
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| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Compensation | Share-Based Compensation Our non-employee directors and key employees are granted share-based awards through our SICP. We record these share-based awards as compensation costs over the respective service period for which services are received in exchange for an award of equity or equity-based compensation. The compensation cost is based primarily on the fair value of the shares awarded, using the estimated fair value of each share on the date it was granted and the number of shares to be issued at the end of the service period. The table below presents the amounts included in net income related to share-based compensation expense for the three and six months ended June 30, 2018 and 2017:
Non-employee Directors Shares granted to non-employee directors are issued in advance of the directors’ service periods and are fully vested as of the grant date. We record a prepaid expense equal to the fair value of the shares issued and amortize the expense equally over a one-year service period. In May 2018, each of our non-employee directors received an annual retainer of 792 shares of common stock under the SICP for service as a director through the 2019 Annual Meeting of Stockholders. The table below presents the summary of the stock activity for awards to non-employee directors for the six months ended June 30, 2018:
At June 30, 2018, there was approximately $450,000 of unrecognized compensation expense related to these awards. This expense will be recognized over the directors' remaining service periods ending April 30, 2019. See Note 1, Summary of Accounting Policies, for additional information regarding ASU 2018-07 and its impact on the accounting for non-employee share-based payments. Key Employees The table below presents the summary of the stock activity for awards to key employees for the six months ended June 30, 2018:
(1)Includes 2,569 shares that were forfeited. In February 2018, our Board of Directors granted awards of 49,494 shares of common stock to key employees under the SICP. The shares granted are multi-year awards that will vest at the end of the three-year service period ending December 31, 2020. All of these stock awards are earned based upon the successful achievement of long-term financial results, which comprise market-based and performance-based conditions or targets. The fair value of each performance-based condition or target is equal to the market price of our common stock on the grant date of each award. For the market-based conditions, we used the Black-Scholes pricing model to estimate the fair value of each market-based award granted. In March 2018, upon the election of certain of our executive officers, we withheld shares with a value at least equivalent to each such executive officer’s minimum statutory obligation for applicable income and other employment taxes related to shares that we awarded for the performance period ended December 31, 2017, remitted the cash to the appropriate taxing authorities, and paid the balance of such awarded shares to each such executive officer. We withheld 10,436 shares, based on the value of the shares on their award date, determined by the average of the high and low prices of our common stock. Total combined payments for the employees’ tax obligations to the taxing authorities were approximately $719,000. In June 2018, the Company and a former executive officer entered into a separation agreement and release (the "Separation Agreement"). Pursuant to the Separation Agreement, three awards, representing a total of 14,107 shares of common stock previously granted to the executive officer under the SICP, immediately vested at the time of separation, and an additional 2,569 shares were forfeited. We settled the awards that vested in cash and recognized $1.1 million as share-based compensation expense. At June 30, 2018, the aggregate intrinsic value of the SICP awards granted to key employees was approximately $10.5 million. At June 30, 2018, there was approximately $3.2 million of unrecognized compensation cost related to these awards, which is expected to be recognized from 2018 through 2020. Stock Options We did not have any stock options outstanding at June 30, 2018 or 2017, nor were any stock options issued during these periods. |
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Derivative Instruments |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments | Derivative Instruments We use derivative and non-derivative contracts to engage in trading activities and manage risks related to obtaining adequate supplies and the price fluctuations of natural gas, electricity and propane. Our natural gas, electric and propane distribution operations have entered into agreements with suppliers to purchase natural gas, electricity and propane for resale to our customers. Aspire Energy has entered into contracts with producers to secure natural gas to meet its obligations. Purchases under these contracts typically either do not meet the definition of derivatives or are considered “normal purchases and normal sales” and are accounted for on an accrual basis. Our propane distribution and natural gas marketing operations may also enter into fair value hedges of their inventory or cash flow hedges of their future purchase commitments in order to mitigate the impact of wholesale price fluctuations. As of June 30, 2018, our natural gas and electric distribution operations did not have any outstanding derivative contracts. Hedging Activities in 2018 PESCO enters into natural gas futures contracts associated with the purchase and sale of natural gas to specific customers. These contracts are effective through March 2022, and we designate and account for them as cash flow hedges. There is no ineffective portion of these hedges. At June 30, 2018, PESCO had a total of 16.9 million Dts hedged under natural gas futures contracts, with a liability fair value of approximately $779,000. The change in fair value of the natural gas futures contracts is recorded as unrealized gain (loss) in other comprehensive income (loss). In June 2018, Sharp entered into futures and swap agreements to mitigate the risk of fluctuations in wholesale propane index prices associated with 1.4 million gallons of propane expected to be purchased from August 2018 through June 2021. Under the futures and swap agreements, Sharp will receive the difference between the index prices (Mont Belvieu prices in August 2018 through June 2021) and the swap prices of $0.76 to $0.875 per gallon, to the extent the index price exceeds the contracted prices. If the index prices are lower than the swap prices, Sharp will pay the difference. At June 30, 2018, the futures and swap agreements had a fair value asset of approximately $18,000 and a fair value liability of $30,000. The change in the fair value of the swap agreements is recorded as unrealized gain (loss) in other comprehensive income (loss). Hedging Activities in 2017 In 2017, Sharp entered into futures and swap agreements to mitigate the risk of fluctuations in wholesale propane index prices associated with 7.7 million gallons of propane expected to be purchased from October 2017 through March 2019, of which positions covering 1.4 million gallons of forecasted future purchases were outstanding as of June 30, 2018. Under the futures and swap agreements, Sharp will receive the difference between the index prices (Mont Belvieu prices in October 2017 through March 2019) and the swap prices of $0.59 per gallon, to the extent the index price exceeds the contracted price. If the index prices are lower than the swap prices, Sharp will pay the difference. Sharp received approximately $645,000, which represented the difference between the index prices and the contracted prices in 2018 related to hedging activities originated in 2017 and received $11,000, which represented the mark-to-market activities for the three months ended June 30, 2018. At June 30, 2018, the futures and swap agreements had a fair value asset of approximately $306,000. The change in the fair value of the swap agreements is recorded as unrealized gain (loss) in other comprehensive income (loss). In August 2017, PESCO entered into natural gas swap agreements associated with financial contracts acquired in the ARM acquisition to mitigate the risk of fluctuations in wholesale natural gas prices associated with 844,000 Dts of natural gas PESCO expects to purchase through January 2020. We accounted for these swap agreements as cash flow hedges, which have a fair value liability of approximately $120,000 at June 30, 2018. The change in fair value of the natural gas swap agreements is recorded as unrealized gain (loss) in other comprehensive income (loss). The impact of PESCO's financial instruments that were not designated as hedges in our consolidated financial statements as of June 30, 2018 was a fair value asset of $90,000 and fair value liability of $77,000, respectively, which was recorded as an increase in gas costs during the six months ended June 30, 2018 associated with 1.1 million and 512,500 Dts of natural gas, respectively. Balance Sheet Offsetting PESCO has entered into master netting agreements with counterparties that enable it to net the counterparties' outstanding accounts receivable and payable, which are presented on a net basis in the consolidated balance sheets. The following table summarizes the accounts receivable and payable on a gross and net basis at June 30, 2018 and December 31, 2017:
The following tables present information about the fair value and related gains and losses of our derivative contracts. We did not have any derivative contracts with a credit risk-related contingency. The fair values of the derivative contracts recorded in the condensed consolidated balance sheets as of June 30, 2018 and December 31, 2017, are as follows:
The effects of gains and losses from derivative instruments on the condensed consolidated financial statements are as follows:
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Fair Value of Financial Instruments |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are the following: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). Financial Assets and Liabilities Measured at Fair Value The following table summarizes our financial assets and liabilities that are measured at fair value on a recurring basis and the fair value measurements, by level, within the fair value hierarchy as of June 30, 2018 and December 31, 2017:
The following valuation techniques were used to measure the fair value of assets and liabilities in the tables above: Level 1 Fair Value Measurements: Investments - equity securities — The fair values of these trading securities are recorded at fair value based on unadjusted quoted prices in active markets for identical securities. Investments - mutual funds and other — The fair values of these investments, comprised of money market and mutual funds, are recorded at fair value based on quoted net asset values of the shares. Level 2 Fair Value Measurements: Derivative assets and liabilities — The fair values of forward contracts are measured using market transactions in either the listed or OTC markets. The fair value of the propane put/call options, swap agreements and natural gas futures contracts are measured using market transactions for similar assets and liabilities in either the listed or OTC markets. Level 3 Fair Value Measurements: Investments - guaranteed income fund — The fair values of these investments are recorded at the contract value, which approximates their fair value. The following table sets forth the summary of the changes in the fair value of Level 3 investments for the six months ended June 30, 2018 and 2017:
Investment income from the Level 3 investments is reflected in other expense, (net) in the accompanying condensed consolidated statements of income. At June 30, 2018, there were no non-financial assets or liabilities required to be reported at fair value. We review our non-financial assets for impairment at least on an annual basis, as required. Other Financial Assets and Liabilities Financial assets with carrying values approximating fair value include cash and cash equivalents and accounts receivable. Financial liabilities with carrying values approximating fair value include accounts payable and other accrued liabilities and short-term debt. The fair value of cash and cash equivalents is measured using the comparable value in the active market and approximates its carrying value (Level 1 measurement). The fair value of short-term debt approximates the carrying value due to its short maturities and because interest rates approximate current market rates (Level 3 measurement). At June 30, 2018, long-term debt, including current maturities but excluding a capital lease obligation, had a carrying value of approximately $250.7 million. This compares to a fair value of approximately $250.3 million, using a discounted cash flow methodology that incorporates a market interest rate based on published corporate borrowing rates for debt instruments with similar terms and average maturities, and with adjustments for duration, optionality, and risk profile. At December 31, 2017, long-term debt, including the current maturities but excluding a capital lease obligation, had a carrying value of approximately $205.2 million, compared to the estimated fair value of approximately $215.4 million. The valuation technique used to estimate the fair value of long-term debt would be considered a Level 3 measurement. |
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Long-Term Debt |
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| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Term Debt | Long-Term Debt Our outstanding long-term debt is shown below:
(1) FPU secured first mortgage bonds are guaranteed by Chesapeake Utilities. In January 2018, we borrowed an additional $25.0 million under the Revolver, which we classified as long-term debt due to the stated maturity date of October 8, 2020. In May 2018, we utilized a portion of the proceeds from the issuance of $50.0 million of 3.48% Series A notes to repay the $25.0 million of long-term debt borrowed under the Revolver. For additional information regarding the issuance of the Series A notes, see "Shelf Agreements" below. Shelf Agreements In October 2015, we entered into the $150.0 million Prudential Shelf Agreement, under which we may request that Prudential purchase up to $150.0 million of our unsecured senior debt. As of June 30, 2018, we have issued $70.0 million of 3.25% Prudential Shelf Notes. In March 2017, we entered into the MetLife Shelf Agreement and the NYL Shelf Agreement, under which we may request that MetLife and NYL, through March 2, 2020, purchase up to $150.0 million of Met Life Shelf Notes and $100.0 million NYL Shelf Notes, respectively. The unsecured senior debt would have a fixed interest rate and a maturity date not to exceed 20 years from the date of issuance. MetLife and NYL are under no obligation to purchase any unsecured senior debt. The interest rate and terms of payment of any series of unsecured senior debt will be determined at the time of purchase. In November 2017, NYL agreed to purchase $50.0 million of 3.48% Series A notes and $50.0 million of 3.58% Series B notes. The Series A notes were issued in May 2018 and the Series B notes will be issued on or before November 20, 2018. The proceeds received from the issuances of these NYL Shelf Notes will be used to reduce borrowings under the Revolver and/or lines of credit and/or to fund capital expenditures. The NYL Shelf Agreement has been fully utilized. As of June 30, 2018, we have $230.0 million of additional potential borrowing capacity under the Prudential and MetLife Shelf Agreements. The Prudential Shelf Agreement and the NYL Shelf Agreement set forth certain business covenants to which we are subject when any note is outstanding, including covenants that limit or restrict our ability, and the ability of our subsidiaries, to incur indebtedness, or place or permit liens and encumbrances on any of our property or the property of our subsidiaries. |
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Summary of Accounting Policies (Policies) |
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| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basis of Presentation | Basis of Presentation References in this document to the “Company,” “Chesapeake Utilities,” “we,” “us” and “our” are intended to mean Chesapeake Utilities Corporation, its divisions and/or its subsidiaries, as appropriate in the context of the disclosure. The accompanying unaudited condensed consolidated financial statements have been prepared in compliance with the rules and regulations of the SEC and GAAP. In accordance with these rules and regulations, certain information and disclosures normally required for audited financial statements have been condensed or omitted. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in our latest Annual Report on Form 10-K for the year ended December 31, 2017. In the opinion of management, these financial statements reflect normal recurring adjustments that are necessary for a fair presentation of our results of operations, financial position and cash flows for the interim periods presented. Due to the seasonality of our business, results for interim periods are not necessarily indicative of results for the entire fiscal year. Revenue and earnings are typically greater during the first and fourth quarters, when consumption of energy is highest due to colder temperatures. |
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| Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ARM, Chipola and Central Gas Asset Acquisitions In August 2017, PESCO acquired certain natural gas marketing assets of ARM. The acquired assets complement PESCO’s existing asset portfolio and expanded our regional footprint and retail demand in a market where we had existing pipeline capacity and wholesale liquidity. We accounted for the purchase of these assets as a business combination and initially recorded goodwill of $6.8 million, within our Unregulated Energy segment. In connection with the acquisition, we initially recorded a contingent consideration liability of $2.5 million, based on the acquired business achieving a gross margin target in 2018. During the second quarter of 2018, we identified certain known information as of the acquisition date that was not considered in our original assessment and would have resulted in no contingent consideration liability being initially recorded. Therefore, we reversed the originally-recorded contingent liability and reduced goodwill by $2.5 million. We have similarly revised the condensed consolidated balance sheet as of December 31, 2017. These revisions are considered immaterial to our condensed consolidated financial statements. The contingent liability will be re-evaluated each reporting period in 2018. However, our current assessment is that no contingent consideration will be paid. In August 2017, Flo-gas acquired certain operating assets of Chipola, which provides propane distribution service to approximately 800 residential and commercial customers in Bay, Calhoun, Gadsden, Jackson, Liberty, and Washington Counties, Florida. In December 2017, Flo-gas acquired certain operating assets of Central Gas, which provides propane distribution service to approximately 325 residential and commercial customers in Glades, Highlands, Martin, Okeechobee, and St. Lucie Counties, Florida. The revenue and net income from these acquisitions that were included in our condensed consolidated statements of income for the three and six months ended June 30, 2018, were not material. The amounts recorded in conjunction with our acquisitions are preliminary and subject to adjustment based on additional valuations performed during the measurement period. |
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| FASB Statements and Other Authoritative Pronouncements | FASB Statements and Other Authoritative Pronouncements Recently Adopted Accounting Standards Revenue from Contracts with Customers (ASC 606) - On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers, and all the related amendments using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard to all of our contracts as an adjustment to the beginning balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the new revenue standard to be immaterial to our net income on an ongoing basis. This standard requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. The guidance also requires a number of disclosures regarding the nature, amount, timing, and uncertainty of revenue and the related cash flows. See Note 3, Revenue Recognition, for additional information. The following highlights the impact of the adoption of ASC 606 on our condensed consolidated income statements for the three and six months ended June 30, 2018 and condensed consolidated balance sheet as of June 30, 2018:
The primary impact of the adoption of ASC 606 on our income statement was the delayed recognition of approximately $204,000 in revenue in the first six months of 2018 to future years and a cumulative adjustment that decreased retained earnings and other assets by $1.6 million at June 30, 2018, associated with a long-term firm transmission contract with an industrial customer. Compensation-Retirement Benefits (ASC 715) - In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post Retirement Benefit Cost. Under this guidance, employers are required to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit costs are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The update allows for capitalization of the service cost component when applicable. We adopted ASU 2017-07 on January 1, 2018 and applied the changes in the presentation of the service cost and other components of net benefit costs, retrospectively. Aside from changes in presentation, implementation of this standard did not have a material impact on our financial position or results of operations. Statement of Cash Flows (ASC 230) - In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain transactions are classified in the statement of cash flows. We adopted ASU 2016-15 on January 1, 2018. Implementation of this new standard did not have a material impact on our condensed consolidated statement of cash flows. Compensation - Stock Compensation (ASC 718) - In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting, to clarify when to account for a change in the terms or conditions of a share-based payment award as a modification. Under this guidance, modification accounting is required only if the fair value, the vesting conditions or the award classification (equity or liability) changes because of a change in the terms or conditions of the award. We adopted ASU 2017-09, prospectively, on January 1, 2018. Implementation of this new standard did not have a material impact on our financial position or results of operations. Income Statement - Reporting Comprehensive Income (ASC 220) - In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. We adopted ASU 2018-02 on January 1, 2018 and reclassified stranded tax effects from accumulated other comprehensive loss related to our employee benefit plans and commodity contract cash flows hedges. Implementation of this new standard did not have a material impact on our financial position and results of operations. See Note 8, Stockholders' Equity, for additional information. Recent Accounting Standards Yet to be Adopted Leases (ASC 842) - In February 2016, the FASB issued ASU 2016-02, Leases, which provides updated guidance regarding accounting for leases. This update requires a lessee to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. ASU 2016-02 will be effective for our annual and interim financial statements beginning January 1, 2019, although early adoption is permitted. The FASB allows companies to elect several practical expedients, in order to simplify the transition to the new standard. The following three expedients must all be elected together:
•An entity need not reassess initial direct costs for any existing leases. Other practical expedients that can be elected individually are:
We expect to use the practical expedients to assist in implementation of this standard. We have assessed all of our leases and have concluded that we may have some operating leases that qualify for the short-term lease exception. Upon adoption, we will record the right-of-use assets and the lease liabilities related to our operating leases with a lease term in excess of one year. We do not believe that this will have a material impact on our financial position, results of operations or cash flows. In January 2018, the FASB issued ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, which provides a practical expedient under Topic 842 to not evaluate existing or expired land easements that were not previously accounted for as leases. We plan to utilize the provided practical expedient for existing and expired land easements and will assess all new or modified land easements and right-of-way agreements, under the guidance of ASU 2016-02, following its adoption. Intangibles-Goodwill (ASC 350) - In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 will be effective for our annual and interim financial statements beginning January 1, 2020, although early adoption is permitted. The amendments included in this ASU are to be applied prospectively. We believe that implementation of this new standard will not have a material impact on our financial position or results of operations. Derivatives and Hedging (ASC 815) - In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. Among other changes to hedge designation, ASU 2017-12 expands the risks that can be designated as hedged risks in cash flow hedges to include cash flow variability from contractually specified components of forecasted purchases or sales of non-financial assets. ASU 2017-12 requires the entire change in fair value of a hedging instrument included in the assessment of hedge effectiveness to be presented in the same income statement line that is used to present the earnings effects of the hedged item for fair value hedges and in other comprehensive income for cash flow hedges. For disclosures, ASU 2017-12 requires a tabular presentation of the income statement effect of fair value and cash flow hedges, and it eliminates the requirement to disclose the ineffective portion of the change in fair value of hedging instruments. ASU 2017-12 will be effective for our annual and interim financial statements beginning January 1, 2019, although early adoption is permitted. We intend to adopt the updated hedge accounting standard in 2018, which we expect will reduce the MTM volatility in PESCO’s results due to better alignment of risk management activities and financial reporting, risk component hedging and certain other simplifications of hedge accounting guidance. Compensation - Stock Compensation (ASC 718) - In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 will be effective for our annual and interim financial statements beginning January 1, 2019, although early adoption is permitted. We believe that implementation of this new standard will not have a material impact on our financial position or results of operations. |
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Summary of Accounting Policies Impact of Adoption of ASC 606 (Tables) |
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| Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block] | The following highlights the impact of the adoption of ASC 606 on our condensed consolidated income statements for the three and six months ended June 30, 2018 and condensed consolidated balance sheet as of June 30, 2018:
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Calculation of Earnings Per Share (Tables) |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Calculation of Basic and Diluted Earnings Per Share |
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Revenue Recognition (Tables) |
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disaggregation of Revenue [Table Text Block] | The following table displays our revenue by major source based on product and service type for the three months ended June 30, 2018:
(1) Includes other revenue (revenues from sources other than contracts with customers) of $(356,000) and $82,000 for our Regulated and Unregulated Energy segments, respectively. The sources of other revenues include revenue from alternative revenue programs related to weather normalization for Maryland division and Sandpiper and late fees. The following table displays our revenue by major source based on product and service type for the six months ended June 30, 2018:
(1) Includes other revenue (revenues from sources other than contracts with customers) of $(945,000) and $155,000 for our Regulated and Unregulated Energy segments, respectively. The sources of other revenues include revenue from alternative revenue programs related to weather normalization for Maryland division and Sandpiper and late fees. |
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| Contract with Customer, Asset and Liability [Table Text Block] | The opening and closing balances of our trade receivables, contract assets, and contract liabilities are as follows:
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Environmental Commitments and Contingencies Summary of Environmental Liabilities (Tables) |
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| Environmental Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| Environmental Remedies [Table Text Block] |
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Segment Information (Tables) |
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| Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Segment Reporting Information by Segment | The following table presents financial information about our reportable segments:
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Stockholder's Equity - Accumulated Other Comprehensive Income (Loss) (Tables) |
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| Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in Accumulated Other Comprehensive Loss |
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| Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The following table presents amounts reclassified out of accumulated other comprehensive loss for the three and six months ended June 30, 2018 and 2017. Deferred gains or losses for our commodity contracts cash flow hedges are recognized in earnings upon settlement.
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Employee Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Net Benefit Costs [Table Text Block] | Net periodic benefit costs for our pension and post-retirement benefits plans for the three and six months ended June 30, 2018 and 2017 are set forth in the following tables:
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| Amounts Included in Regulatory asset and AOCI [Table Text Block] | The following tables present the amounts included in the regulatory asset and accumulated other comprehensive loss that were recognized as components of net periodic benefit cost during the three months ended June 30, 2018 and 2017:
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Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Investments schedule [Table Text Block] | The investment balances at June 30, 2018 and December 31, 2017, consisted of the following:
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Share-Based Compensation (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares awarded to non-employee directors [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The table below presents the amounts included in net income related to share-based compensation expense for the three and six months ended June 30, 2018 and 2017:
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| Awards to non-employee directors [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares awarded to non-employee directors [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Share-based Compensation, Activity | The table below presents the summary of the stock activity for awards to non-employee directors for the six months ended June 30, 2018:
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| Award to key employees [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares awarded to non-employee directors [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Share-based Compensation, Activity | The table below presents the summary of the stock activity for awards to key employees for the six months ended June 30, 2018:
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Derivative Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Offsetting Assets and Liabilities [Table Text Block] | Balance Sheet Offsetting PESCO has entered into master netting agreements with counterparties that enable it to net the counterparties' outstanding accounts receivable and payable, which are presented on a net basis in the consolidated balance sheets. The following table summarizes the accounts receivable and payable on a gross and net basis at June 30, 2018 and December 31, 2017:
The following tables present information about the fair value and related gains and losses of our derivative contracts. We did not have any derivative contracts with a credit risk-related contingency. |
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| Fair Values of Derivative Contracts Recorded in Condensed Consolidated Balance Sheet | The fair values of the derivative contracts recorded in the condensed consolidated balance sheets as of June 30, 2018 and December 31, 2017, are as follows:
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| Effects of Gains and Losses from Derivative Instruments on Condensed Consolidated Financial Statements | The effects of gains and losses from derivative instruments on the condensed consolidated financial statements are as follows:
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Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes our financial assets and liabilities that are measured at fair value on a recurring basis and the fair value measurements, by level, within the fair value hierarchy as of June 30, 2018 and December 31, 2017:
|
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| Summary of Changes in Fair Value of Investments | The following table sets forth the summary of the changes in the fair value of Level 3 investments for the six months ended June 30, 2018 and 2017:
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Long-Term Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outstanding Long-Term Debt | Our outstanding long-term debt is shown below:
(1) FPU secured first mortgage bonds are guaranteed by Chesapeake Utilities. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accounting policies - Additional Information (Details) $ in Thousands |
6 Months Ended |
|---|---|
|
Jun. 30, 2018
USD ($)
| |
| Summary of Accounting Policies [Abstract] | |
| Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1,600 |
| Delay of Revenue Recognition Due To Implementation of New Standard | $ 204 |
Summary of Accounting Policies Acquisitions Additional information (Details) |
12 Months Ended | |
|---|---|---|
|
Dec. 31, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
|
|
| Business Acquisition [Line Items] | ||
| Number of customers acquired through acquisition | 800 | |
| ARM Energy [Member] | ||
| Business Acquisition [Line Items] | ||
| Business Combination, Liabilities Arising from Contingencies, Amount Recognized | $ 2,500,000.0 | |
| Central Gas [Member] | ||
| Business Acquisition [Line Items] | ||
| Number of customers acquired through acquisition | 325 | |
| Unregulated Energy [Member] | ARM [Member] | ||
| Business Acquisition [Line Items] | ||
| Goodwill, Acquired During Period | $ 6,800,000 |
Summary of Accounting Policies Summary of Effect of Adoption on Consolidated Financial Statements (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
| Item Effected [Line Items] | |||||
| Accrued revenue | $ 12,353 | $ 12,353 | $ 22,279 | ||
| Regulated Energy Operating Revenue | 70,504 | $ 70,996 | 179,897 | $ 168,650 | |
| Regulated Energy cost of sales | 20,010 | 24,167 | 68,241 | 64,411 | |
| Depreciation and amortization | 9,839 | 9,094 | 19,543 | 17,906 | |
| Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 9,105 | 9,986 | 45,915 | 41,646 | |
| Income taxes | 2,718 | 3,940 | 12,674 | 16,456 | |
| Net Income | 6,387 | $ 6,046 | 33,241 | $ 25,190 | 58,124 |
| Other assets | 4,440 | 4,440 | 3,699 | ||
| Retained earnings | 250,377 | 250,377 | $ 229,141 | ||
| Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
| Item Effected [Line Items] | |||||
| Accrued revenue | 13,659 | 13,659 | |||
| Regulated Energy Operating Revenue | 70,728 | 180,780 | |||
| Regulated Energy cost of sales | 20,139 | 68,942 | |||
| Depreciation and amortization | 9,832 | 19,521 | |||
| Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 9,207 | 46,119 | |||
| Income taxes | 2,746 | 12,733 | |||
| Net Income | 6,461 | 33,386 | |||
| Other assets | 4,777 | 4,777 | |||
| Retained earnings | 248,734 | 248,734 | |||
| Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
| Item Effected [Line Items] | |||||
| Accrued revenue | (1,306) | (1,306) | |||
| Deferred Revenue, Period Increase (Decrease) | (224) | (883) | |||
| Regulated Energy cost of sales | (129) | (701) | |||
| Depreciation and amortization | 7 | 22 | |||
| Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (102) | (204) | |||
| Income taxes | (28) | (59) | |||
| Net Income | (74) | (145) | |||
| Other assets | (337) | (337) | |||
| Retained earnings | $ 1,643 | $ 1,643 | |||
Calculation of Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
| Calculation of Basic Earnings Per Share: | |||||
| Net Income | $ 6,387 | $ 6,046 | $ 33,241 | $ 25,190 | $ 58,124 |
| Weighted shares outstanding (shares) | 16,369,641 | 16,340,665 | 16,360,540 | 16,329,009 | |
| Basic Earnings Per Share (in dollars per share) | $ 0.39 | $ 0.37 | $ 2.03 | $ 1.54 | |
| Reconciliation of Numerator: | |||||
| Net Income | $ 6,387 | $ 6,046 | $ 33,241 | $ 25,190 | $ 58,124 |
| Reconciliation of Denominator: | |||||
| Weighted shares outstanding - Basic (shares) | 16,369,641 | 16,340,665 | 16,360,540 | 16,329,009 | |
| Effect of dilutive securities: | |||||
| Share-based compensation (shares) | 47,441 | 41,542 | 49,521 | 44,029 | |
| Adjusted denominator-Diluted (shares) | 16,417,082 | 16,382,207 | 16,410,061 | 16,373,038 | |
| Diluted Earnings Per Share (in dollars per share) | $ 0.39 | $ 0.37 | $ 2.03 | $ 1.54 | |
Revenue Recognition Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
| Revenues | $ 136,664,000 | $ 125,084,000 | $ 376,020,000 | $ 310,244,000 | |
| Contract with Customer, Liability, Current | 175,000 | 175,000 | $ 407,000 | ||
| Contract with Customer, Liability, Revenue Recognized | 84,000 | 336,000 | |||
| Regulated Energy [Member] | Other [Member] | |||||
| Revenues | (356,000) | (945,000) | |||
| Unregulated Energy [Member] | Other [Member] | |||||
| Revenues | $ 82,000 | $ 155,000 | |||
Revenue Recognition Disegragation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | [1] | $ 136,664 | $ 376,020 | ||
| Consolidation, Eliminations [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (23,104) | (51,087) | |||
| Regulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 70,504 | 179,897 | ||
| Unregulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 76,345 | 221,712 | ||
| Other Segments And Intersegments Eliminations [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (10,185) | (25,589) | |||
| Other [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | [1] | (10,185) | (25,589) | ||
| Other [Member] | Unregulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (2,743) | (7,495) | |||
| Eliminations [Member] | Regulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (10,176) | (18,003) | |||
| Energy Distribution [Member] | Regulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 63,210 | 162,735 | |||
| Energy Distribution [Member] | Florida Natural Gas Distribution [Member] | Regulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 6,317 | 12,180 | |||
| Energy Distribution [Member] | Florida Public Utilities Company [Member] | Regulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 18,281 | 41,494 | |||
| Energy Distribution [Member] | Maryland Natural Gas [Member] | Regulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 4,001 | 14,673 | |||
| Energy Distribution [Member] | Delaware natural gas division [Member] | Regulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 11,882 | 43,954 | |||
| Energy Distribution [Member] | FPU Electric Distribution [Member] | Regulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 18,362 | 37,103 | |||
| Energy Distribution [Member] | Sandpiper [Member] | Regulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 4,367 | 13,331 | |||
| Energy Transmission [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 23,324 | 53,096 | |||
| Energy Transmission [Member] | Regulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 17,470 | 35,165 | |||
| Energy Transmission [Member] | Unregulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 5,854 | 17,931 | |||
| Energy Transmission [Member] | Aspire [Member] | Unregulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 5,854 | 17,931 | |||
| Energy Transmission [Member] | Eastern Shore Gas Company [Member] | Regulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 14,502 | 30,100 | |||
| Energy Transmission [Member] | Peninsula Pipeline [Member] | Regulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 2,968 | 5,065 | |||
| Energy Generation [Member] | Eight Flags [Member] | Unregulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 4,230 | 8,608 | |||
| Propane Delivery [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 20,206 | 72,311 | |||
| Propane Delivery [Member] | Unregulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 20,206 | 72,311 | |||
| Propane Delivery [Member] | Delmarva Peninsula Propane Delivery [Member] | Unregulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 15,264 | 60,735 | |||
| Propane Delivery [Member] | Florida Propane [Member] | Unregulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 4,942 | 11,576 | |||
| Energy Services [Member] | PESCO [Member] | Unregulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 48,798 | 130,357 | |||
| Eliminations [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (23,803) | (52,473) | |||
| Eliminations [Member] | Regulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (10,176) | (18,003) | |||
| Eliminations [Member] | Unregulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (3,248) | (8,494) | |||
| Eliminations [Member] | Eliminations [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (10,379) | (25,976) | |||
| Other [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 699 | 1,386 | |||
| Other [Member] | Unregulated Energy [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 505 | 999 | |||
| Other [Member] | Other [Member] | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue from Contract with Customer, Excluding Assessed Tax | $ 194 | $ 387 | |||
| |||||
Revenue Recognition Contract Balances with Customers (Details) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
| Revenue from Contract with Customer [Abstract] | ||
| Receivables from Customers | $ 51,511 | $ 74,962 |
| Contract with Customer, Asset, Net, Noncurrent | 1,967 | 1,270 |
| Contract with Customer, Liability, Current | 175 | $ 407 |
| Increase (Decrease) in Receivables | (23,451) | |
| Increase (Decrease) in Other Noncurrent Assets | 697 | |
| Increase (Decrease) in Other Current Liabilities | $ (232) |
Rates and Other Regulatory Activities - Additional Information (Detail) |
6 Months Ended | 12 Months Ended |
|---|---|---|
|
Jun. 30, 2018
USD ($)
dekatherm / d
unit
mi
|
Dec. 31, 2017
USD ($)
|
|
| Rates and Other Regulatory Activities [Line Items] | ||
| Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% |
| Electric Distribution [Member] | ||
| Rates and Other Regulatory Activities [Line Items] | ||
| Amount of Regulatory Costs Not yet Approved | $ 15,200,000 | |
| Electric Limited Proceedings [Member] | ||
| Rates and Other Regulatory Activities [Line Items] | ||
| Asset Recovery Damaged Property Costs, Noncurrent | 1,500,000 | |
| Deferred Storm and Property Reserve Deficiency, Noncurrent | 800,000 | |
| Public Utilities, Requested Rate Increase (Decrease), Amount | 1.82 | |
| Eastern Shore [Member] | ||
| Rates and Other Regulatory Activities [Line Items] | ||
| Cost of Services | 60,000,000 | |
| Public Utilities, Requested Rate Increase (Decrease), Amount | $ 18,900,000 | |
| Public Utilities, Requested Return on Equity, Percentage | 13.75% | |
| Number of Months Rates Suspended | 5 months | |
| Increase in Revenue Recognized Due to Motion Rate in Effect | $ 3,700,000 | |
| 2017 Expansion Project [Member] | Eastern Shore [Member] | ||
| Rates and Other Regulatory Activities [Line Items] | ||
| Estimated Capital Cost | $ 117,000,000 | |
| Number of pipeline miles requested | mi | 23 | |
| Revised Miles Of Natural Gas Pipeline | mi | 17 | |
| Pressure Control Stations | 2 | |
| Firm natural gas transportation deliverability | dekatherm / d | 61,162 | |
| Additional Firm Natural Gas Transportation Deliverability | dekatherm / d | 52,500 | |
| Subscribers [Member] | 2017 Expansion Project [Member] | Eastern Shore [Member] | ||
| Rates and Other Regulatory Activities [Line Items] | ||
| Number of customers | 7 | |
| Number of affiliates | unit | 3 | |
| Pre TCJA approved revenue requirements [Member] | Eastern Shore [Member] | ||
| Rates and Other Regulatory Activities [Line Items] | ||
| Public Utilities, Approved Rate Increase (Decrease), Amount | $ 9,800,000 | |
| Post TCJA approved revenue requirements [Member] | Eastern Shore [Member] | ||
| Rates and Other Regulatory Activities [Line Items] | ||
| Public Utilities, Approved Rate Increase (Decrease), Amount | $ 6,600,000 |
Environmental Commitments and Contingencies - Additional Information (Detail) |
6 Months Ended | |
|---|---|---|
|
Jun. 30, 2018
USD ($)
site
|
Dec. 31, 2017
USD ($)
|
|
| Environmental Commitments And Contingencies [Line Items] | ||
| Company's exposure in number of former Manufactured Gas Plant Sites | site | 7 | |
| Environmental liabilities | $ 8,090,000 | $ 8,263,000 |
| West Palm Beach Florida [Member] | Minimum [Member] | ||
| Environmental Commitments And Contingencies [Line Items] | ||
| Estimated costs of remediation range, minimum | 4,500,000 | |
| West Palm Beach Florida [Member] | Maximum [Member] | ||
| Environmental Commitments And Contingencies [Line Items] | ||
| Estimated costs of remediation range, minimum | 15,400,000 | |
| Sanford Florida [Member] | ||
| Environmental Commitments And Contingencies [Line Items] | ||
| Environmental remediation expense | 10,000 | |
| Winter Haven Florida [Member] | Maximum [Member] | ||
| Environmental Commitments And Contingencies [Line Items] | ||
| Environmental remediation expense | 425,000 | |
| Seaford [Member] | Minimum [Member] | ||
| Environmental Commitments And Contingencies [Line Items] | ||
| Estimated costs of remediation range, minimum | 273,000 | |
| Seaford [Member] | Maximum [Member] | ||
| Environmental Commitments And Contingencies [Line Items] | ||
| Estimated costs of remediation range, minimum | 465,000 | |
| FPU [Member] | ||
| Environmental Commitments And Contingencies [Line Items] | ||
| Environmental liabilities | 9,500,000 | |
| Approval of recovery of environmental costs | 14,000,000 | |
| Environmental costs recovered | 11,300,000 | |
| FPU [Member] | Manufactured Gas Plant [Member] | ||
| Environmental Commitments And Contingencies [Line Items] | ||
| Regulatory Assets for future recovery of environmental costs | $ 2,700,000 |
Other Commitments and Contingencies - Additional Information (Detail) gal in Millions, $ in Millions |
6 Months Ended |
|---|---|
|
Jun. 30, 2018
USD ($)
gal
| |
| Commitments and Contingencies Disclosure [Abstract] | |
| Number of Years for Asset Management Agreement | 3 years |
| Number of years to purchase propane under contract | 6 years |
| Estimated current annual commitment | gal | 2.2 |
| Debt Service Coverage Ratio | 1.25 |
| Ratio based on average number of prior quarters | 6 |
| Number of Propane Price Indices | 2 |
| Ratios based on average of the prior quarters | 1 year 6 months |
| Funds from operations interest coverage ratio minimum times | 2 |
| Total debt to capital maximum | 0.65 |
| Number Of Years For Power Purchase Agreement | 20 years |
| Contract Duration | 20 years |
| Aggregate guaranteed amount | $ 72.5 |
| Draws on letters of credit | $ 5.0 |
Segment Information - Schedule of Segment Reporting Information by Segment (Detail) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
|---|---|---|---|---|---|---|---|---|
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
||||
| Segment Reporting Information [Line Items] | ||||||||
| Number of Reportable Segments | 2 | |||||||
| Operating Revenues, Unaffiliated Customers | ||||||||
| Total operating revenues, unaffiliated customers | $ 136,664 | $ 125,084 | $ 376,020 | $ 310,244 | ||||
| Intersegment Revenues | ||||||||
| Total operating revenues, unaffiliated customers | 136,664 | 125,084 | 376,020 | 310,244 | ||||
| Operating Income | ||||||||
| Total operating income | 13,248 | 14,061 | 53,654 | 49,160 | ||||
| Other expense, net | (262) | (1,002) | (194) | (1,703) | ||||
| Interest | 3,881 | 3,073 | 7,545 | 5,811 | ||||
| Income Before Income Taxes | 9,105 | 9,986 | 45,915 | 41,646 | ||||
| Income taxes | 2,718 | 3,940 | 12,674 | 16,456 | ||||
| Net Income | 6,387 | 6,046 | 33,241 | 25,190 | $ 58,124 | |||
| Identifiable Assets | ||||||||
| Total identifiable assets | 1,462,941 | 1,462,941 | 1,414,934 | |||||
| Regulated Energy [Member] | ||||||||
| Operating Income | ||||||||
| Total operating income | 14,304 | 14,086 | 41,015 | 37,481 | ||||
| Identifiable Assets | ||||||||
| Total identifiable assets | 1,199,672 | 1,199,672 | 1,121,673 | |||||
| Unregulated Energy [Member] | ||||||||
| Operating Income | ||||||||
| Total operating income | 490 | 2 | 14,174 | 11,577 | ||||
| Identifiable Assets | ||||||||
| Total identifiable assets | 227,191 | 227,191 | 259,041 | |||||
| Other [Member] | ||||||||
| Identifiable Assets | ||||||||
| Total identifiable assets | 36,078 | 36,078 | $ 34,220 | |||||
| Other and eliminations [Member] | ||||||||
| Operating Income | ||||||||
| Total operating income | (1,546) | (27) | (1,535) | 102 | ||||
| Operating Revenues, Unaffiliated Customers [Member] | ||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||
| Total operating revenues, unaffiliated customers | 136,664 | 125,084 | 376,020 | 310,244 | ||||
| Intersegment Revenues | ||||||||
| Total operating revenues, unaffiliated customers | 136,664 | 125,084 | 376,020 | 310,244 | ||||
| Operating Revenues, Unaffiliated Customers [Member] | Regulated Energy [Member] | ||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||
| Total operating revenues, unaffiliated customers | 67,731 | 68,815 | 173,685 | 165,261 | ||||
| Intersegment Revenues | ||||||||
| Total operating revenues, unaffiliated customers | 67,731 | 68,815 | 173,685 | 165,261 | ||||
| Operating Revenues, Unaffiliated Customers [Member] | Unregulated Energy [Member] | ||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||
| Total operating revenues, unaffiliated customers | 68,933 | 56,269 | 202,335 | 144,983 | ||||
| Intersegment Revenues | ||||||||
| Total operating revenues, unaffiliated customers | 68,933 | 56,269 | 202,335 | 144,983 | ||||
| Intersegment Revenues [Member] | ||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||
| Total operating revenues, unaffiliated customers | [1] | 10,379 | 9,120 | 25,976 | 14,567 | |||
| Intersegment Revenues | ||||||||
| Total operating revenues, unaffiliated customers | [1] | 10,379 | 9,120 | 25,976 | 14,567 | |||
| Intersegment Revenues [Member] | Regulated Energy [Member] | ||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||
| Total operating revenues, unaffiliated customers | [1] | 2,773 | 2,181 | 6,212 | 3,389 | |||
| Intersegment Revenues | ||||||||
| Total operating revenues, unaffiliated customers | [1] | 2,773 | 2,181 | 6,212 | 3,389 | |||
| Intersegment Revenues [Member] | Unregulated Energy [Member] | ||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||
| Total operating revenues, unaffiliated customers | [1] | 7,412 | 6,780 | 19,377 | 10,791 | |||
| Intersegment Revenues | ||||||||
| Total operating revenues, unaffiliated customers | [1] | 7,412 | 6,780 | 19,377 | 10,791 | |||
| Intersegment Revenues [Member] | Other [Member] | ||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||
| Total operating revenues, unaffiliated customers | [1] | 194 | 159 | 387 | 387 | |||
| Intersegment Revenues | ||||||||
| Total operating revenues, unaffiliated customers | [1] | $ 194 | $ 159 | $ 387 | $ 387 | |||
| ||||||||
Stockholder's Equity - Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
| Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Roll Forward] | ||
| Beginning balance | $ (4,272) | $ (4,878) |
| Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (1,440) | 828 |
| Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 901 | (1,194) |
| Net current-period other comprehensive income (loss) | (539) | (366) |
| Ending balance | (5,718) | (5,244) |
| Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (907) | |
| UnrealizedGainsLossesFromDefinedBenefitPensionAndPostretirementPlanItems [Member] | ||
| Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Roll Forward] | ||
| Beginning balance | (4,743) | (5,360) |
| Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | (9) |
| Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 189 | 180 |
| Net current-period other comprehensive income (loss) | 189 | 171 |
| Ending balance | (5,576) | (5,189) |
| Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (1,022) | |
| Accumulated (Gain) Loss from Commodity Contracts Cash Flows Hedges [Member] | ||
| Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Roll Forward] | ||
| Beginning balance | 471 | 482 |
| Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (1,440) | 837 |
| Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 712 | (1,374) |
| Net current-period other comprehensive income (loss) | (728) | (537) |
| Ending balance | (142) | $ (55) |
| Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ 115 | |
Stockholder's Equity - Accumulated Other Comprehensive Income (Loss) - Reclassifications of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||||||
| Amortization of pension and postretirement items: | ||||||||||||
| Derivative, Gain (Loss) on Derivative, Net | $ 985 | $ (224) | $ (5,134) | $ 2,067 | ||||||||
| Tax benefit | (2,718) | (3,940) | (12,674) | (16,456) | ||||||||
| Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
| Amortization of pension and postretirement items: | ||||||||||||
| Net of tax | (362) | 346 | (901) | 1,194 | ||||||||
| Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||||||
| Amortization of pension and postretirement items: | ||||||||||||
| Prior service cost | [1] | 19 | 20 | 39 | 39 | |||||||
| Net loss | [1] | (149) | (170) | (297) | (339) | |||||||
| Total before tax | (130) | (150) | (258) | (300) | ||||||||
| Tax benefit | 36 | 61 | 69 | 120 | ||||||||
| Net of tax | (94) | (89) | (189) | (180) | ||||||||
| Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated (Gain) Loss from Commodity Contracts Cash Flows Hedges [Member] | ||||||||||||
| Amortization of pension and postretirement items: | ||||||||||||
| Total before tax | (373) | 708 | (989) | 2,246 | ||||||||
| Tax benefit | 105 | (273) | 277 | (872) | ||||||||
| Net of tax | (268) | 435 | (712) | 1,374 | ||||||||
| Propane Swap Agreement [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated (Gain) Loss from Commodity Contracts Cash Flows Hedges [Member] | ||||||||||||
| Amortization of pension and postretirement items: | ||||||||||||
| Other Comprehensive Income Loss Adjustments AOCI Swap Agreements | $ (181) | 77 | [2] | (645) | [2] | 465 | [2] | |||||
| Natural Gas Swaps [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated (Gain) Loss from Commodity Contracts Cash Flows Hedges [Member] | ||||||||||||
| Amortization of pension and postretirement items: | ||||||||||||
| Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | [2] | (481) | ||||||||||
| Natural Gas Futures [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated (Gain) Loss from Commodity Contracts Cash Flows Hedges [Member] | ||||||||||||
| Amortization of pension and postretirement items: | ||||||||||||
| Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | [2] | $ 631 | $ 137 | $ 1,781 | ||||||||
| ||||||||||||
Stockholder's Equity Stockholder's Equity Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2017 |
Jun. 30, 2018 |
|
| Equity [Abstract] | ||
| Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 |
| Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
| Proceeds from Issuance of Common Stock | $ (10) |
Employee Benefit Plans (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
||||
| Defined Benefit Plan Disclosure [Line Items] | |||||||
| Amortization of prior service cost | $ (19) | $ (20) | $ (39) | $ (39) | |||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 236 | 276 | 473 | 551 | |||
| Chesapeake Postretirement Plan [Member] | |||||||
| Defined Benefit Plan Disclosure [Line Items] | |||||||
| Interest cost | 9 | 11 | 19 | 21 | |||
| Amortization of prior service cost | (19) | (20) | (39) | (39) | |||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 15 | 17 | 30 | 32 | |||
| Net periodic cost (benefit) | [1] | 5 | 8 | 10 | 14 | ||
| Total periodic cost | 5 | 8 | 10 | 14 | |||
| Florida Public Utilities Company Medical Plan [Member] | |||||||
| Defined Benefit Plan Disclosure [Line Items] | |||||||
| Interest cost | 13 | 13 | 26 | 26 | |||
| Net periodic cost (benefit) | [1] | 13 | 13 | 26 | 26 | ||
| Amortization of pre-merger regulatory asset | 2 | 2 | 4 | 4 | |||
| Total periodic cost | 15 | 15 | 30 | 30 | |||
| Florida Public Utilities Company Pension Plan [Member] | |||||||
| Defined Benefit Plan Disclosure [Line Items] | |||||||
| Interest cost | 592 | 624 | 1,184 | 1,247 | |||
| Expected return on plan assets | (774) | (700) | (1,549) | (1,399) | |||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 108 | 131 | 217 | 262 | |||
| Net periodic cost (benefit) | [1] | (74) | 55 | (148) | 110 | ||
| Amortization of pre-merger regulatory asset | 191 | 191 | 381 | 381 | |||
| Total periodic cost | 117 | 246 | 233 | 491 | |||
| Chesapeake Pension SERP [Member] | |||||||
| Defined Benefit Plan Disclosure [Line Items] | |||||||
| Interest cost | 21 | 22 | 42 | 44 | |||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 25 | 22 | 50 | 44 | |||
| Net periodic cost (benefit) | [1] | 46 | 44 | 92 | 88 | ||
| Total periodic cost | 46 | 44 | 92 | 88 | |||
| Chesapeake Pension Plan [Member] | |||||||
| Defined Benefit Plan Disclosure [Line Items] | |||||||
| Interest cost | 98 | 103 | 195 | 206 | |||
| Expected return on plan assets | (138) | (127) | (276) | (254) | |||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 88 | 106 | 176 | 213 | |||
| Net periodic cost (benefit) | [1] | 48 | 82 | 95 | 165 | ||
| Total periodic cost | $ 48 | $ 82 | $ 95 | $ 165 | |||
| |||||||
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
Dec. 31, 2017 |
|
| Defined Benefit Plan Disclosure [Line Items] | |||
| Expected pension and postretirement benefit costs | $ 913 | ||
| Expected amortization of pre merger regulatory asset | 769 | ||
| Florida Public Utilities Company Pension Plan [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Unamortized balance of regulatory asset | $ 942 | 942 | $ 1,300 |
| Contribution to pension plan | 539 | 848 | |
| Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 1,500 | 1,500 | |
| Chesapeake Pension Plan [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Contribution to pension plan | 126 | 198 | |
| Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 359 | 359 | |
| Chesapeake Pension SERP [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Contribution to pension plan | 38 | 76 | |
| Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 151 | 151 | |
| Chesapeake Postretirement Plan [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Contribution to pension plan | 7 | 18 | |
| Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 97 | 97 | |
| Florida Public Utilities Company Medical Plan [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Contribution to pension plan | 13 | 24 | |
| Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 88 | $ 88 |
Employee Benefit Plans - Amounts Included in Regulatory Asset and Accumulated Other Comprehensive Income/Loss Recognized as Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
||||
| Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||
| Prior service cost (credit) | $ (19) | $ (20) | $ (39) | $ (39) | |||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 236 | 276 | 473 | 551 | |||
| Recognized from accumulated other comprehensive loss | [1] | 130 | 150 | 258 | 300 | ||
| Recognized from regulatory asset | 87 | 106 | 176 | 212 | |||
| Total recognized in net periodic benefit cost | 217 | 256 | 434 | 512 | |||
| Chesapeake Pension Plan [Member] | |||||||
| Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 88 | 106 | 176 | 213 | |||
| Recognized from accumulated other comprehensive loss | [1] | 88 | 106 | 176 | 213 | ||
| Total recognized in net periodic benefit cost | 88 | 106 | 176 | 213 | |||
| Florida Public Utilities Company Pension Plan [Member] | |||||||
| Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 108 | 131 | 217 | 262 | |||
| Recognized from accumulated other comprehensive loss | [1] | 21 | 25 | 41 | 50 | ||
| Recognized from regulatory asset | 87 | 106 | 176 | 212 | |||
| Total recognized in net periodic benefit cost | 108 | 131 | 217 | 262 | |||
| Chesapeake Pension SERP [Member] | |||||||
| Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 25 | 22 | 50 | 44 | |||
| Recognized from accumulated other comprehensive loss | [1] | 25 | 22 | 50 | 44 | ||
| Total recognized in net periodic benefit cost | 25 | 22 | 50 | 44 | |||
| Chesapeake Postretirement Plan [Member] | |||||||
| Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||
| Prior service cost (credit) | (19) | (20) | (39) | (39) | |||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 15 | 17 | 30 | 32 | |||
| Recognized from accumulated other comprehensive loss | [1] | (4) | (3) | (9) | (7) | ||
| Total recognized in net periodic benefit cost | $ (4) | $ (3) | $ (9) | $ (7) | |||
| |||||||
Investments - Schedule of Investments (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
|---|---|---|
| Investments schedule [Line Items] | ||
| Investments, at fair value | $ 7,486 | $ 6,756 |
| Rabbi Trust Associated With Deferred Compensation Plan [Member] | ||
| Investments schedule [Line Items] | ||
| Investments, at fair value | 7,465 | 6,734 |
| Equity Securities [Member] | ||
| Investments schedule [Line Items] | ||
| Investments, at fair value | $ 21 | $ 22 |
Investments - Additional Information (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
| Investments, Debt and Equity Securities [Abstract] | ||||
| Unrealized gain (loss), net of other expenses | $ 158,000 | $ 181,000 | $ 113,000 | $ 433,000 |
Share-Based Compensation - Share-Based Compensation Amounts Included in Net Income (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
| Total compensation expense | $ 1,325 | $ 173 | $ 2,844 | $ 812 | |
| Less: tax benefit | (363) | (70) | (779) | (327) | |
| Share-Based Compensation amounts included in net income | 962 | 103 | $ 2,065 | 485 | |
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 792 | ||||
| Awards to non-employee directors [Member] | |||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
| Total compensation expense | $ 135 | 136 | $ 269 | 271 | |
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 0.00 | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 75.70 | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 7,128 | ||||
| Award to key employees [Member] | |||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 131,741 | 131,741 | 132,642 | ||
| Total compensation expense | $ 1,190 | $ 37 | $ 2,575 | $ 541 | |
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 67.46 | $ 67.46 | $ 59.31 | ||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 49,494 | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 47.39 | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 29,786 | ||||
| Accelerated Vested Shares [Member] | |||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
| Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | $ 1,100 | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 75.78 | ||||
Share-Based Compensation - Summary of Stock Activity under the SICP (Detail) |
6 Months Ended |
|---|---|
|
Jun. 30, 2018
$ / shares
shares
| |
| Number of Shares | |
| Granted awards (shares) | 792 |
| Awards to non-employee directors [Member] | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 7,128 |
| Number of Shares | |
| Vested (shares) | (7,128) |
| Weighted Average Fair Value | |
| Outstanding - December 31, 2017 (in dollars per share) | $ / shares | $ 0.00 |
| Vested (in dollars per share) | $ / shares | $ 75.70 |
| Award to key employees [Member] | |
| Number of Shares | |
| Outstanding - December 31, 2017 (shares) | 132,642 |
| Granted awards (shares) | 49,494 |
| Vested (shares) | (29,786) |
| Expired (shares) | (3,933) |
| Outstanding - June 30, 2018 (shares) | 131,741 |
| Weighted Average Fair Value | |
| Outstanding - December 31, 2017 (in dollars per share) | $ / shares | $ 59.31 |
| Granted (in dollars per share) | $ / shares | 67.76 |
| Vested (in dollars per share) | $ / shares | 47.39 |
| Expired (in dollars per share) | $ / shares | 49.66 |
| Outstanding - June 30, 2018 (in dollars per share) | $ / shares | 67.46 |
| Accelerated Vested Shares [Member] | |
| Weighted Average Fair Value | |
| Vested (in dollars per share) | $ / shares | $ 75.78 |
| Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | 16,676 |
| Accelerated Vested Shares [Member] | Award to key employees [Member] | |
| Number of Shares | |
| Expired (shares) | 2,569 |
| Weighted Average Fair Value | |
| Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | 14,107 |
Share-Based Compensation - Additional Information (Detail) $ in Thousands |
6 Months Ended | 12 Months Ended | |
|---|---|---|---|
|
Jun. 30, 2018
USD ($)
unit
shares
|
Jun. 30, 2017
USD ($)
|
Dec. 31, 2017
shares
|
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Granted awards (shares) | 792 | ||
| Shares Paid for Tax Withholding for Share Based Compensation | 16,918 | 10,269 | |
| Payments Related to Tax Withholding for Share-based Compensation | $ | $ 1,210 | $ 692 | |
| Unrecognized compensation cost | $ | $ 3,200 | ||
| Awards to non-employee directors [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Amortization of expense equally over a service period | 1 year | ||
| Unrecognized compensation expense related to the awards to non-employee directors | $ | $ 450 | ||
| Award to key employees [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Granted awards (shares) | 49,494 | ||
| Vesting period | 3 years | ||
| Payments Related to Tax Withholding for Share-based Compensation | $ | $ 719 | ||
| Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expired In Period | 3,933 | ||
| Intrinsic value of the SICP awards | $ | $ 10,500 | ||
| Accelerated Vested Shares [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Number Of Multi year Awards | unit | 3 | ||
| Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number | 16,676 | ||
| Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | $ | $ 1,100 | ||
| Accelerated Vested Shares [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Shares Paid for Tax Withholding for Share Based Compensation | 10,436 | ||
| Accelerated Vested Shares [Member] | Award to key employees [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number | 14,107 | ||
| Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expired In Period | (2,569) | ||
Derivative Instruments - Additional Information (Detail) Mcf in Thousands, $ in Thousands, gal in Millions |
6 Months Ended | 12 Months Ended |
|---|---|---|
|
Jun. 30, 2018
USD ($)
$ / gal
gal
Mcf
|
Dec. 31, 2017
USD ($)
gal
|
|
| Derivative [Line Items] | ||
| Accounts Receivable Subject to Master Netting Arrangement | $ 1,288 | $ 2,391 |
| Energy Marketing Contracts Assets, Current | 534 | 1,286 |
| Energy Marketing Contract Liabilities, Current | (886) | (6,247) |
| Accounts Payable Subject To Master Netting Arrangement | $ 1,288 | 2,391 |
| Natural Gas Futures [Member] | ||
| Derivative [Line Items] | ||
| Derivative, Nonmonetary Notional Amount, Volume | Mcf | 500 | |
| Hedging Liability [Member] | Natural Gas Futures [Member] | ||
| Derivative [Line Items] | ||
| Energy Marketing Contract Liabilities, Current | $ (779) | (469) |
| Hedging Liability [Member] | Natural Gas Swaps [Member] | ||
| Derivative [Line Items] | ||
| Energy Marketing Contract Liabilities, Current | 0 | (2) |
| Designated as Hedging Instrument [Member] | Mark To Market Energy Assets [Member] | Natural Gas Futures [Member] | ||
| Derivative [Line Items] | ||
| Energy Marketing Contract Liabilities, Current | (120) | |
| Designated as Hedging Instrument [Member] | Mark To Market Energy Assets [Member] | Propane Swap Agreement [Member] | ||
| Derivative [Line Items] | ||
| Energy Marketing Contracts Assets, Current | 324 | 1,181 |
| Energy Marketing Contract Liabilities, Current | (30) | 0 |
| Designated as Hedging Instrument [Member] | Mark-to-market energy liabilities [Member] | Propane Swap Agreement [Member] | ||
| Derivative [Line Items] | ||
| Energy Marketing Contracts Assets, Current | $ 18 | |
| Not Designated as Hedging Instrument [Member] | Natural Gas Futures [Member] | ||
| Derivative [Line Items] | ||
| Derivative, Nonmonetary Notional Amount, Volume | Mcf | 1,100 | |
| Not Designated as Hedging Instrument [Member] | Mark To Market Energy Assets [Member] | Natural Gas Futures [Member] | ||
| Derivative [Line Items] | ||
| Energy Marketing Contracts Assets, Current | $ 90 | |
| Not Designated as Hedging Instrument [Member] | Mark To Market Energy Assets [Member] | Propane Swap Agreement [Member] | ||
| Derivative [Line Items] | ||
| Energy Marketing Contracts Assets, Current | 0 | 13 |
| Not Designated as Hedging Instrument [Member] | Mark-to-market energy liabilities [Member] | Natural Gas Futures [Member] | ||
| Derivative [Line Items] | ||
| Energy Marketing Contract Liabilities, Current | $ (77) | $ (5,776) |
| PESCO [Member] | Natural Gas Futures [Member] | ||
| Derivative [Line Items] | ||
| Derivative, Nonmonetary Notional Amount, Volume | Mcf | 16,900 | |
| 2017 [Member] | ||
| Derivative [Line Items] | ||
| Derivative, Nonmonetary Notional Amount, Volume | gal | 1.4 | |
| 2017 [Member] | Natural Gas Swaps [Member] | ||
| Derivative [Line Items] | ||
| Derivative, Nonmonetary Notional Amount, Volume | Mcf | 844 | |
| 2017 [Member] | Propane Swap Agreement [Member] | ||
| Derivative [Line Items] | ||
| Derivative, Nonmonetary Notional Amount, Volume | gal | 7.7 | |
| Derivative, Cash Received on Hedge | $ 11 | |
| 2017 [Member] | Strike Price 4 [Member] | Propane Swap Agreement [Member] | ||
| Derivative [Line Items] | ||
| Strike Price Per Gallon For The Propane Swap Agreements | $ / gal | 0.5900 | |
| 2017 [Member] | Designated as Hedging Instrument [Member] | Mark To Market Energy Assets [Member] | Propane Swap Agreement [Member] | ||
| Derivative [Line Items] | ||
| Energy Marketing Contracts Assets, Current | $ 306 | |
| 2018 [Member] | ||
| Derivative [Line Items] | ||
| Derivative, Nonmonetary Notional Amount, Volume | gal | 1.4 | |
| 2018 [Member] | Propane Swap Agreement [Member] | ||
| Derivative [Line Items] | ||
| Derivative, Cash Received on Hedge | $ 645 | |
| 2018 [Member] | Strike Price Minimum [Member] | Propane Swap Agreement [Member] | ||
| Derivative [Line Items] | ||
| Strike Price Per Gallon For The Propane Swap Agreements | $ / gal | 0.76 | |
| 2018 [Member] | Strike Price 2 [Member] | Propane Swap Agreement [Member] | ||
| Derivative [Line Items] | ||
| Strike Price Per Gallon For The Propane Swap Agreements | $ / gal | 0.875 | |
| Gross [Member] | ||
| Derivative [Line Items] | ||
| Accounts Receivable Subject to Master Netting Arrangement | $ 5,723 | $ 8,283 |
| Accounts Payable Subject To Master Netting Arrangement | 10,326 | 16,643 |
| Net [Member] | ||
| Derivative [Line Items] | ||
| Accounts Receivable Subject to Master Netting Arrangement | 4,435 | 5,892 |
| Accounts Payable Subject To Master Netting Arrangement | $ 9,038 | $ 14,252 |
Derivative Instruments - Fair Values of Derivative Contracts Recorded in Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
|---|---|---|
| Derivatives, Fair Value [Line Items] | ||
| Energy Marketing Contracts Assets, Current | $ 534 | $ 1,286 |
| Energy Marketing Contract Liabilities, Current | 886 | 6,247 |
| Mark To Market Energy Assets [Member] | Natural Gas Futures [Member] | Derivatives not designated as hedging instruments [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Energy Marketing Contracts Assets, Current | 90 | |
| Mark To Market Energy Assets [Member] | Natural Gas Futures [Member] | Derivatives designated as hedging instrument [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Energy Marketing Contract Liabilities, Current | 120 | |
| Mark To Market Energy Assets [Member] | Propane Swap Agreement [Member] | Derivatives not designated as hedging instruments [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Energy Marketing Contracts Assets, Current | 0 | 13 |
| Mark To Market Energy Assets [Member] | Propane Swap Agreement [Member] | Derivatives designated as hedging instrument [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Energy Marketing Contracts Assets, Current | 324 | 1,181 |
| Energy Marketing Contract Liabilities, Current | 30 | 0 |
| Hedging Asset [Member] | Natural Gas Futures [Member] | Derivatives designated as hedging instrument [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Energy Marketing Contracts Assets, Current | 92 | |
| Energy Marketing Contract Liabilities, Current | 120 | |
| Mark-to-market energy liabilities [Member] | Natural Gas Futures [Member] | Derivatives not designated as hedging instruments [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Energy Marketing Contract Liabilities, Current | 77 | 5,776 |
| Mark-to-market energy liabilities [Member] | Propane Swap Agreement [Member] | Derivatives designated as hedging instrument [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Energy Marketing Contracts Assets, Current | 18 | |
| Hedging Liability [Member] | Natural Gas Swaps [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Energy Marketing Contract Liabilities, Current | 0 | 2 |
| Hedging Liability [Member] | Natural Gas Futures [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Energy Marketing Contract Liabilities, Current | $ 779 | $ 469 |
Derivative Instruments - Effects of Gains and Losses from Derivative Instruments on Condensed Consolidated Financial Statements (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||||
| Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
| Derivative, Gain (Loss) on Derivative, Net | $ 985,000 | $ (224,000) | $ (5,134,000) | $ 2,067,000 | ||||||
| Revenue [Member] | Derivatives not designated as hedging instruments [Member] | Forward Contracts [Member] | ||||||||||
| Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
| Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | [1] | 112,000 | [1] | |||||
| Cost of Sales [Member] | Derivatives not designated as hedging instruments [Member] | Future [Member] | ||||||||||
| Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
| Derivative, Gain (Loss) on Derivative, Net | (128,000) | 497,000 | (2,963,000) | 621,000 | ||||||
| Cost of Sales [Member] | Derivatives not designated as hedging instruments [Member] | Propane Swap Agreement [Member] | ||||||||||
| Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
| Derivative, Gain (Loss) on Derivative, Net | (4,000) | 0 | (13,000) | (4,000) | ||||||
| Cost of Sales [Member] | Derivatives designated as hedging instrument [Member] | Future [Member] | ||||||||||
| Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
| Derivative, Gain (Loss) on Derivative, Net | (161,000) | 631,000 | 137,000 | 1,781,000 | ||||||
| Cost of Sales [Member] | Derivatives designated as hedging instrument [Member] | Swap [Member] | ||||||||||
| Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
| Derivative, Gain (Loss) on Derivative, Net | (31,000) | 0 | (481,000) | 0 | ||||||
| Cost of Sales [Member] | Derivatives designated as hedging instrument [Member] | Propane Swap Agreement [Member] | ||||||||||
| Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
| Derivative, Gain (Loss) on Derivative, Net | (181,000) | 77,000 | (645,000) | 465,000 | ||||||
| Cost of Sales [Member] | Derivatives designated as hedging instrument [Member] | Put/Call Option [Member] | ||||||||||
| Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
| Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | [2] | (9,000) | [2] | |||||
| Other Comprehensive Income (Loss) [Member] | Derivatives designated as hedging instrument [Member] | Natural Gas Swaps [Member] | ||||||||||
| Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
| Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 523,000 | 0 | 588,000 | 0 | ||||||
| Other Comprehensive Income (Loss) [Member] | Derivatives designated as hedging instrument [Member] | Propane Swap Agreement [Member] | ||||||||||
| Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
| Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 106,000 | (218,000) | (886,000) | (775,000) | ||||||
| Other Comprehensive Income (Loss) [Member] | Derivatives designated as hedging instrument [Member] | Natural Gas Futures [Member] | ||||||||||
| Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
| Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | $ 861,000 | $ (1,211,000) | $ (871,000) | $ (124,000) | ||||||
| ||||||||||
Fair Value of Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
|---|---|---|
| Assets: | ||
| Investments | $ 7,486 | $ 6,756 |
| Liabilities: | ||
| Energy Marketing Contract Liabilities, Current | 886 | 6,247 |
| Equity Securities [Member] | ||
| Assets: | ||
| Investments | 21 | 22 |
| Quoted Prices in Active Markets (Level 1) [Member] | ||
| Assets: | ||
| Assets, Fair Value Disclosure | 6,815 | 6,108 |
| Quoted Prices in Active Markets (Level 1) [Member] | Equity Securities [Member] | ||
| Assets: | ||
| Investments | 21 | 22 |
| Quoted Prices in Active Markets (Level 1) [Member] | Investments - other [Member] | ||
| Assets: | ||
| Investments | 6,794 | 6,086 |
| Quoted Prices in Active Markets (Level 1) [Member] | Total Investments [Member] | ||
| Assets: | ||
| Investments | 6,815 | 6,108 |
| Significant Other Observable Inputs (Level 2) [Member] | ||
| Assets: | ||
| Assets, Fair Value Disclosure | 534 | 1,286 |
| Liabilities: | ||
| Energy Marketing Contract Liabilities, Current | 886 | 6,247 |
| Significant Other Observable Inputs (Level 2) [Member] | Mark To Market Energy Assets incl. natural gas and swap agreements[Member] | ||
| Assets: | ||
| Derivative assets | 534 | 1,286 |
| Significant Unobservable Inputs (Level 3) [Member] | ||
| Assets: | ||
| Assets, Fair Value Disclosure | 671 | 648 |
| Significant Unobservable Inputs (Level 3) [Member] | Investments in guaranteed income fund [Member] | ||
| Assets: | ||
| Investments | 671 | 648 |
| Significant Unobservable Inputs (Level 3) [Member] | Total Investments [Member] | ||
| Assets: | ||
| Investments | 671 | 648 |
| Recurring [Member] | ||
| Assets: | ||
| Assets, Fair Value Disclosure | 8,020 | 8,042 |
| Liabilities: | ||
| Energy Marketing Contract Liabilities, Current | 886 | 6,247 |
| Recurring [Member] | Equity Securities [Member] | ||
| Assets: | ||
| Investments | 21 | 22 |
| Recurring [Member] | Investments in guaranteed income fund [Member] | ||
| Assets: | ||
| Investments | 671 | 648 |
| Recurring [Member] | Investments - other [Member] | ||
| Assets: | ||
| Investments | 6,794 | 6,086 |
| Recurring [Member] | Total Investments [Member] | ||
| Assets: | ||
| Investments | 7,486 | 6,756 |
| Recurring [Member] | Mark To Market Energy Assets incl. natural gas and swap agreements[Member] | ||
| Assets: | ||
| Derivative assets | $ 534 | $ 1,286 |
Fair Value of Financial Instruments - Summary of Changes in Fair Value of Investments (Detail) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
| Beginning Balance | $ 648 | $ 561 |
| Purchases and adjustments | 54 | 65 |
| Transfers | 24 | 0 |
| Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (12) | 0 |
| Investment Income | 5 | 4 |
| Ending Balance | $ 671 | $ 630 |
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions |
Jun. 30, 2018 |
Dec. 31, 2017 |
|---|---|---|
| Fair Value Disclosures [Abstract] | ||
| Long-term debt including current maturities | $ 250.7 | $ 205.2 |
| Fair value of long-term debt | $ 250.3 | $ 215.4 |
Long-Term Debt - Outstanding Long-Term Debt (Detail) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
||
|---|---|---|---|---|---|
| Debt Instrument [Line Items] | |||||
| Total long-term debt | $ 250,700 | $ 205,200 | |||
| Capital lease obligation | 1,351 | 2,070 | |||
| Total Long-term debt | 251,573 | 206,816 | |||
| Less: current maturities | (9,977) | (9,421) | |||
| Less: debt issuance costs | (488) | (433) | |||
| Total long-term debt, net of current maturities | 241,596 | 197,395 | |||
| 9.08% bond, due June 1, 2022 [Member] | |||||
| Debt Instrument [Line Items] | |||||
| Total long-term debt | [1] | 7,984 | 7,982 | ||
| 5.50% note, due October 12, 2020 [Member] | |||||
| Debt Instrument [Line Items] | |||||
| Total long-term debt | 6,000 | 6,000 | |||
| 5.93% note, due October 31, 2023 [Member] | |||||
| Debt Instrument [Line Items] | |||||
| Total long-term debt | 16,500 | 18,000 | |||
| 5.68% note, due June 30, 2026 [Member] | |||||
| Debt Instrument [Line Items] | |||||
| Total long-term debt | 23,200 | 26,100 | |||
| Uncollateralized Senior Notes Due On May Two Thousand Twenty Eight [Member] | |||||
| Debt Instrument [Line Items] | |||||
| Total long-term debt | 7,000 | 7,000 | |||
| Uncollateralized Senior Note Two Due on December Two Thousand Twenty Eight [Member] | |||||
| Debt Instrument [Line Items] | |||||
| Total long-term debt | 20,000 | 20,000 | |||
| Uncollateralized Senior Notes Due On Two Thousand Twenty Nine [Member] | |||||
| Debt Instrument [Line Items] | |||||
| Total long-term debt | 50,000 | 50,000 | |||
| 3.25% note, due April 30, 2032 [Member] | |||||
| Debt Instrument [Line Items] | |||||
| Total long-term debt | 70,000 | 70,000 | |||
| 3.48% note, due May 31, 2038 [Member] | |||||
| Debt Instrument [Line Items] | |||||
| Total long-term debt | 50,000 | ||||
| Revolving Credit Facility [Member] | |||||
| Debt Instrument [Line Items] | |||||
| Total long-term debt | $ 25,000 | ||||
| Promissory note [Member] | |||||
| Debt Instrument [Line Items] | |||||
| Total long-term debt | $ 26 | $ 97 | |||
| |||||
Long-Term Debt - Outstanding Long-Term Debt- Supplemental Information (Detail) |
6 Months Ended |
|---|---|
Jun. 30, 2018 | |
| 9.08% bond, due June 1, 2022 [Member] | |
| Debt Instrument [Line Items] | |
| Long-term debt, interest percentage | 9.08% |
| Debt instrument, maturity date | Jun. 01, 2022 |
| 5.50% note, due October 12, 2020 [Member] | |
| Debt Instrument [Line Items] | |
| Long-term debt, interest percentage | 5.50% |
| Debt instrument, maturity date | Oct. 12, 2020 |
| 5.93% note, due October 31, 2023 [Member] | |
| Debt Instrument [Line Items] | |
| Long-term debt, interest percentage | 5.93% |
| Debt instrument, maturity date | Oct. 31, 2023 |
| 5.68% note, due June 30, 2026 [Member] | |
| Debt Instrument [Line Items] | |
| Long-term debt, interest percentage | 5.68% |
| Debt instrument, maturity date | Jun. 30, 2026 |
| Uncollateralized Senior Notes Due On May Two Thousand Twenty Eight [Member] | |
| Debt Instrument [Line Items] | |
| Long-term debt, interest percentage | 6.43% |
| Debt instrument, maturity date | May 02, 2028 |
| Uncollateralized Senior Note Two Due on December Two Thousand Twenty Eight [Member] | |
| Debt Instrument [Line Items] | |
| Long-term debt, interest percentage | 3.73% |
| Debt instrument, maturity date | Dec. 16, 2028 |
| Uncollateralized Senior Notes Due On Two Thousand Twenty Nine [Member] | |
| Debt Instrument [Line Items] | |
| Long-term debt, interest percentage | 3.88% |
| Debt instrument, maturity date | May 15, 2029 |
| Uncollateralized Senior Note Due on Two Thousand Thirty Two [Member] | |
| Debt Instrument [Line Items] | |
| Long-term debt, interest percentage | 3.25% |
| Debt instrument, maturity date | Apr. 30, 2032 |
| Uncollateralized Senior Note Due on Two Thousand Thirty Eight [Member] | |
| Debt Instrument [Line Items] | |
| Long-term debt, interest percentage | 3.48% |
| Debt instrument, maturity date | May 31, 2038 |
| Revolving Credit Facility [Member] | |
| Debt Instrument [Line Items] | |
| Long-term debt, interest percentage | |
| Debt instrument, maturity date |
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Thousands |
6 Months Ended | |||
|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Nov. 30, 2017 |
|
| Debt Instrument [Line Items] | ||||
| Long-term debt including current maturities | $ 250,700 | $ 205,200 | ||
| Revolving Credit Facility [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Long-term debt including current maturities | $ 25,000 | |||
| Debt Instrument, Interest Rate, Stated Percentage | ||||
| 3.48% note, due May 31, 2038 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Long-term debt including current maturities | $ 50,000 | |||
| 3.25% note, due April 30, 2032 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Long-term debt including current maturities | $ 70,000 | $ 70,000 | ||
| Notes Payable, Other Payables [Member] | Shelf Notes [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Debt Instrument, Interest Rate, Stated Percentage | 3.25% | |||
| Prudential [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Senior notes | $ 150,000 | |||
| Prudential [Member] | Notes Payable, Other Payables [Member] | Shelf Notes [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Senior notes | 150,000 | |||
| MetLife [Member] | Notes Payable, Other Payables [Member] | Shelf Notes [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Senior notes | $ 150,000 | |||
| Maturity date term | 20 years | |||
| New York Life [Member] | Notes Payable, Other Payables [Member] | Shelf Notes [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Senior notes | $ 100,000 | |||
| Maturity date term | 20 years | |||
| Prudential and Metlife [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Senior notes | $ 230,000 | |||
| Series A [Member] | New York Life [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Senior notes | $ 50,000 | |||
| Debt Instrument, Interest Rate, Stated Percentage | 3.48% | |||
| Series B [Member] | New York Life [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Debt Instrument, Interest Rate, Stated Percentage | 3.58% |
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