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:


•	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 and services, by the PSC having jurisdiction in each operating territory or by the FERC in the case of Eastern Shore.

•

Unregulated Energy. Includes energy transmission, energy generation (the operations of our Eight Flags' CHP plant), propane operations, the new mobile CNG utility and pipeline solutions subsidiary, and other energy services (natural gas marketing and related services). 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.

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

The following table presents information about our reportable segments.



	For the Year Ended December 31,
	2018			2017			2016
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	332,749		$	316,971		$	302,402
Unregulated Energy	384,740			300,612			196,458
Total operating revenues, unaffiliated customers	$	717,489		$	617,583		$	498,860
Intersegment Revenues ⁽¹⁾
Regulated Energy	$	12,532		$	9,339		$	3,287
Unregulated Energy	35,877			23,983			7,321
Other businesses	653			774			880
Total intersegment revenues	$	49,062		$	34,096		$	11,488
Operating Income
Regulated Energy	$	79,215		$	74,584		$	71,515
Unregulated Energy	16,901			12,631			14,066
Other businesses and eliminations	(1,496		)	205			402
Operating Income	94,620			87,420			85,983
Other expense	(615		)	(2,342		)	(2,328		)
Interest charges	16,431			12,645			10,639
Income Before Income taxes	77,574			72,433			73,016
Income taxes	20,994			14,309			28,341
Net Income	$	56,580		$	58,124		$	44,675
Depreciation and Amortization
Regulated Energy	$	31,876		$	28,554		$	25,677
Unregulated Energy	8,845			7,954			6,386
Other businesses and eliminations	81			91			96
Total depreciation and amortization	$	40,802		$	36,599		$	32,159
Capital Expenditures
Regulated Energy	$	235,912		$	159,011		$	139,994
Unregulated Energy	38,700			26,190			23,984
Other businesses	8,364			5,902			5,398
Total capital expenditures	$	282,976		$	191,103		$	169,376

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



	As of December 31,
	2018		2017
Identifiable Assets
Regulated Energy	$	1,345,805	$	1,121,673
Unregulated Energy	306,045		259,041
Other businesses	41,821		34,220
Total identifiable assets	$	1,693,671	$	1,414,934

Our operations are entirely domestic.