FORM 10-Q | ||
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) | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
New York Stock Exchange, Inc. | ||
☒ | 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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in thousands, except shares and per share data) | ||||||||||||||||
Operating Revenues | ||||||||||||||||
Regulated Energy | $ | $ | $ | $ | ||||||||||||
Unregulated Energy and other | ||||||||||||||||
Total Operating Revenues | ||||||||||||||||
Operating Expenses | ||||||||||||||||
Regulated Energy cost of sales | ||||||||||||||||
Unregulated Energy and other cost of sales | ||||||||||||||||
Operations | ||||||||||||||||
Maintenance | ||||||||||||||||
Gain from a settlement | ( | ) | ( | ) | ||||||||||||
Depreciation and amortization | ||||||||||||||||
Other taxes | ||||||||||||||||
Total Operating Expenses | ||||||||||||||||
Operating Income | ||||||||||||||||
Other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Interest charges | ||||||||||||||||
Income from Continuing Operations Before Income Taxes | ||||||||||||||||
Income Taxes on Continuing Operations | ||||||||||||||||
Income from Continuing Operations | ||||||||||||||||
Loss from Discontinued Operations, Net of Tax | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net Income | $ | $ | $ | $ | ||||||||||||
Weighted Average Common Shares Outstanding: | ||||||||||||||||
Basic | ||||||||||||||||
Diluted | ||||||||||||||||
Basic Earnings Per Share of Common Stock: | ||||||||||||||||
Earnings from Continuing Operations | $ | $ | $ | $ | ||||||||||||
Earnings from Discontinued Operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Basic Earnings Per Share of Common Stock | $ | $ | $ | $ | ||||||||||||
Diluted Earnings Per Share of Common Stock: | ||||||||||||||||
Earnings from Continuing Operations | $ | $ | $ | $ | ||||||||||||
Earnings from Discontinued Operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Diluted Earnings Per Share of Common Stock | $ | $ | $ | $ | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in thousands) | ||||||||||||||||
Net Income | $ | $ | $ | $ | ||||||||||||
Other Comprehensive Income (Loss), net of tax: | ||||||||||||||||
Employee Benefits, net of tax: | ||||||||||||||||
Amortization of prior service cost, net of tax of $(5), $(5), $(15) and $(16), respectively | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net gain, net of tax of $39, $38, $125 and $118, respectively | ||||||||||||||||
Cash Flow Hedges, net of tax: | ||||||||||||||||
Unrealized gain (loss) on commodity contract cash flow hedges, net of tax of $152, $257, $496 and $(70), respectively | ( | ) | ||||||||||||||
Total Other Comprehensive Income, net of tax | ||||||||||||||||
Comprehensive Income | $ | $ | $ | $ | ||||||||||||
Assets | September 30, 2019 | December 31, 2018 | ||||||
(in thousands, except shares and per share data) | ||||||||
Property, Plant and Equipment | ||||||||
Regulated Energy | $ | $ | ||||||
Unregulated Energy | ||||||||
Other businesses and eliminations | ||||||||
Total property, plant and equipment | ||||||||
Less: Accumulated depreciation and amortization | ( | ) | ( | ) | ||||
Plus: Construction work in progress | ||||||||
Net property, plant and equipment | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | ||||||||
Trade and other receivables (less allowance for uncollectible accounts of $1,350 and $1,058, respectively) | ||||||||
Accrued revenue | ||||||||
Propane inventory, at average cost | ||||||||
Other inventory, at average cost | ||||||||
Regulatory assets | ||||||||
Storage gas prepayments | ||||||||
Income taxes receivable | ||||||||
Prepaid expenses | ||||||||
Derivative assets, at fair value | ||||||||
Other current assets | ||||||||
Current assets held for sale | ||||||||
Total current assets | ||||||||
Deferred Charges and Other Assets | ||||||||
Goodwill | ||||||||
Other intangible assets, net | ||||||||
Investments, at fair value | ||||||||
Operating lease right-of-use assets (refer to Note 16) | — | |||||||
Regulatory assets | ||||||||
Other assets | ||||||||
Noncurrent assets held for sale | ||||||||
Total deferred charges and other assets | ||||||||
Total Assets | $ | $ | ||||||
Capitalization and Liabilities | September 30, 2019 | December 31, 2018 | ||||||
(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) | ||||||||
Additional paid-in capital | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
Deferred compensation obligation | ||||||||
Treasury stock | ( | ) | ( | ) | ||||
Total stockholders’ equity | ||||||||
Long-term debt, net of current maturities | ||||||||
Total capitalization | ||||||||
Current Liabilities | ||||||||
Current portion of long-term debt | ||||||||
Short-term borrowing | ||||||||
Accounts payable | ||||||||
Customer deposits and refunds | ||||||||
Accrued interest | ||||||||
Dividends payable | ||||||||
Accrued compensation | ||||||||
Regulatory liabilities | ||||||||
Derivative liabilities, at fair value | ||||||||
Other accrued liabilities | ||||||||
Current liabilities held for sale | ||||||||
Total current liabilities | ||||||||
Deferred Credits and Other Liabilities | ||||||||
Deferred income taxes | ||||||||
Regulatory liabilities | ||||||||
Environmental liabilities | ||||||||
Other pension and benefit costs | ||||||||
Operating lease - liabilities (refer to Note 16) | — | |||||||
Deferred investment tax credits and other liabilities | ||||||||
Total deferred credits and other liabilities | ||||||||
Environmental and other commitments and contingencies (Notes 6 and 7) | ||||||||
Total Capitalization and Liabilities | $ | $ | ||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Operating Activities | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | ||||||||
Depreciation and accretion included in other costs | ||||||||
Deferred income taxes | ||||||||
Realized (gain) loss on commodity contracts/sale of assets/investments | ( | ) | ||||||
Unrealized gain on investments/commodity contracts | ( | ) | ( | ) | ||||
Employee benefits and compensation | ||||||||
Share-based compensation | ||||||||
Other, net | ( | ) | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable and accrued revenue | ||||||||
Propane inventory, storage gas and other inventory | ||||||||
Regulatory assets/liabilities, net | ( | ) | ||||||
Prepaid expenses and other current assets | ( | ) | ||||||
Accounts payable and other accrued liabilities | ( | ) | ( | ) | ||||
Income taxes receivable | ||||||||
Customer deposits and refunds | ( | ) | ||||||
Accrued compensation | ( | ) | ( | ) | ||||
Other assets and liabilities, net | ( | ) | ( | ) | ||||
Net cash provided by operating activities | ||||||||
Investing Activities | ||||||||
Property, plant and equipment expenditures | ( | ) | ( | ) | ||||
Proceeds from sale of assets | ||||||||
Environmental expenditures | ( | ) | ( | ) | ||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
Financing Activities | ||||||||
Common stock dividends | ( | ) | ( | ) | ||||
Issuance of stock under the Dividend Reinvestment Plan | ( | ) | ( | ) | ||||
Tax withholding payments related to net settled stock compensation | ( | ) | ( | ) | ||||
Change in cash overdrafts due to outstanding checks | ( | ) | ||||||
Net borrowings (repayments) under line of credit agreements | ( | ) | ||||||
Proceeds from long-term debt | ||||||||
Repayment of long-term debt, long-term borrowing under the Revolver and capital lease obligation | ( | ) | ( | ) | ||||
Net cash provided by financing activities | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | ( | ) | ||||||
Cash and Cash Equivalents—Beginning of Period | ||||||||
Cash and Cash Equivalents—End of Period | $ | $ | ||||||
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 June 30, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||
Dividend declared ($0.3700 per share) | — | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||
Dividend reinvestment plan | — | — | — | — | — | — | — | |||||||||||||||||||||||
Share-based compensation and tax benefit (3)(4) | — | — | — | — | — | — | ||||||||||||||||||||||||
Treasury stock activities | — | — | — | — | — | ( | ) | — | ||||||||||||||||||||||
Balance at September 30, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||||
Balance at December 31, 2017 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||
Cumulative effect of the adoption of ASU 2014-09 | — | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||
Reclassification upon the adoption of ASU 2018-02 | — | — | — | ( | ) | — | — | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ||||||||||||||||||||||||
Dividend declared ($1.065 per share) | — | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||
Dividend reinvestment plan | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||||||
Share-based compensation and tax benefit (3)(4) | — | — | — | — | ||||||||||||||||||||||||||
Treasury stock activities | — | — | — | — | — | ( | ) | |||||||||||||||||||||||
Balance at September 30, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ||||||||||||||||||||||||
Dividend declared ($0.4050 per share) | — | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||
Dividend reinvestment plan | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||||||
Share-based compensation and tax benefit (3) (4) | — | — | — | — | ||||||||||||||||||||||||||
Treasury stock activities | — | — | — | — | — | ( | ) | |||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||
Prior period reclassification | — | — | — | ( | ) | — | — | — | ||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||
Dividend declared ($1.1800 per share) | — | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||
Dividend reinvestment plan | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||||||
Share-based compensation and tax benefit (3) (4) | — | — | — | — | ||||||||||||||||||||||||||
Treasury stock activities | — | — | — | — | — | ( | ) | |||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||||
(1) |
(2) | Includes |
(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 nine months ended September 30, 2019 and 2018, we withheld |
Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | ||||||||||||||
Operating Revenue | Operating Income | Operating Revenue | Operating Income | ||||||||||||
(in thousands) | |||||||||||||||
Marlin Gas Services | $ | $ | $ | $ | |||||||||||
Ohl propane acquisition | $ | $ | ( | ) | $ | $ | |||||||||
2. | Calculation of Earnings Per Share |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in thousands, except shares and per share data) | ||||||||||||||||
Calculation of Basic Earnings Per Share: | ||||||||||||||||
Income from Continuing Operations | $ | $ | $ | $ | ||||||||||||
Loss from Discontinued Operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net Income | $ | $ | $ | $ | ||||||||||||
Weighted average shares outstanding | ||||||||||||||||
Earnings from Continuing Operations | $ | $ | $ | $ | ||||||||||||
Earnings from Discontinued Operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Basic Earnings Per Share | $ | $ | $ | $ | ||||||||||||
Calculation of Diluted Earnings Per Share: | ||||||||||||||||
Reconciliation of Numerator: | ||||||||||||||||
Income from Continuing Operations | $ | $ | $ | $ | ||||||||||||
Loss from Discontinued Operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net Income | $ | $ | $ | $ | ||||||||||||
Reconciliation of Denominator: | ||||||||||||||||
Weighted shares outstanding—Basic | ||||||||||||||||
Effect of dilutive securities—Share-based compensation | ||||||||||||||||
Adjusted denominator—Diluted | ||||||||||||||||
Diluted Earnings Per Share from Continuing Operations | $ | $ | $ | $ | ||||||||||||
Diluted Earnings Per Share from Discontinued Operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Diluted Earnings Per Share | $ | $ | $ | $ | ||||||||||||
3. | Discontinued Operations |
• | PESCO’s Florida retail operations were sold to Gas South. The initial closing for the transaction was completed in November 2019 with subsequent closings expected for December 2019 and January 2020. |
• | PESCO’s other non-Florida retail operations and contracts were sold to UET in October 2019. |
• | PESCO’s Mid-Atlantic wholesale contracts and Chesapeake Utilities’ Delaware division, Maryland division and Sandpiper Energy asset management agreements were sold to NJRES in October 2019. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
(in thousands) | 2019 (1) | 2018 (2) | 2019 (1) | 2018 (2) | |||||||||||||||
Operating revenues | $ | $ | $ | $ | |||||||||||||||
Cost of sales | |||||||||||||||||||
Other operating expenses | |||||||||||||||||||
Operating loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Interest and other expense | |||||||||||||||||||
Loss from Discontinued Operations before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Income tax benefit | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Loss from Discontinued Operations, net of tax | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||
September 30, | December 31, | |||||||||
(in thousands) | 2019 | 2018 | ||||||||
Property, plant and equipment | $ | $ | ||||||||
Less: accumulated depreciation | ( | ) | ( | ) | ||||||
Net property, plant and equipment (1) | ||||||||||
Current assets | ||||||||||
Deferred charges and other assets (1) | ||||||||||
Assets of Discontinued Operations held for sale | $ | $ | ||||||||
Current liabilities | $ | $ | ||||||||
Liabilities of Discontinued Operations held for sale | $ | $ | ||||||||
Net assets | $ | $ | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Depreciation and amortization | $ | $ | ||||||
Property, plant and equipment expenditures | $ | $ | ||||||
Deferred income taxes | $ | $ | ||||||
Realized gain on commodity contracts | $ | $ | ||||||
Three months ended September 30, 2019 | Three Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||
(in thousands) | Regulated Energy | Unregulated Energy | Other and Eliminations | Total | Regulated Energy | Unregulated Energy | Other and Eliminations | Total | ||||||||||||||||||||||||
Energy distribution | ||||||||||||||||||||||||||||||||
Delaware natural gas division | $ | $ | — | $ | — | $ | $ | $ | — | $ | — | $ | ||||||||||||||||||||
Florida natural gas division | 6,710 | — | — | — | — | |||||||||||||||||||||||||||
FPU electric distribution | — | — | — | — | ||||||||||||||||||||||||||||
FPU natural gas distribution | — | — | — | — | ||||||||||||||||||||||||||||
Maryland natural gas division | — | — | — | — | ||||||||||||||||||||||||||||
Sandpiper natural gas/propane operations | — | — | — | — | ||||||||||||||||||||||||||||
Total energy distribution | — | — | — | — | ||||||||||||||||||||||||||||
Energy transmission | ||||||||||||||||||||||||||||||||
Aspire Energy | — | — | — | — | ||||||||||||||||||||||||||||
Eastern Shore | — | — | — | — | ||||||||||||||||||||||||||||
Peninsula Pipeline | — | — | — | — | ||||||||||||||||||||||||||||
Total energy transmission | — | — | ||||||||||||||||||||||||||||||
Energy generation | ||||||||||||||||||||||||||||||||
Eight Flags | — | — | — | — | ||||||||||||||||||||||||||||
Propane operations | ||||||||||||||||||||||||||||||||
Propane delivery operations | — | — | — | — | ||||||||||||||||||||||||||||
Energy delivery services | ||||||||||||||||||||||||||||||||
Marlin Gas Services | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other and eliminations | ||||||||||||||||||||||||||||||||
Eliminations | ( | ) | ( | ) | (4,367 | ) | ( | ) | ( | ) | ( | ) | (3,928 | ) | ( | ) | ||||||||||||||||
Other | — | — | ||||||||||||||||||||||||||||||
Total other and eliminations | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Total operating revenues (1) | $ | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
Nine months ended September 30, 2019 | Nine months ended September 30, 2018 | |||||||||||||||||||||||||||||||
(in thousands) | Regulated Energy | Unregulated Energy | Other and Eliminations | Total | Regulated Energy | Unregulated Energy | Other and Eliminations | Total | ||||||||||||||||||||||||
Energy distribution | ||||||||||||||||||||||||||||||||
Delaware natural gas division | $ | $ | — | $ | — | $ | $ | $ | — | $ | — | $ | ||||||||||||||||||||
Florida natural gas division | — | — | — | — | ||||||||||||||||||||||||||||
FPU electric distribution | — | — | — | — | ||||||||||||||||||||||||||||
FPU natural gas distribution | — | — | — | — | ||||||||||||||||||||||||||||
Maryland natural gas division | — | — | — | — | ||||||||||||||||||||||||||||
Sandpiper natural gas/propane operations | — | — | — | — | ||||||||||||||||||||||||||||
Total energy distribution | — | — | — | — | ||||||||||||||||||||||||||||
Energy transmission | ||||||||||||||||||||||||||||||||
Aspire Energy | — | — | — | — | ||||||||||||||||||||||||||||
Eastern Shore | — | — | — | — | ||||||||||||||||||||||||||||
Peninsula Pipeline | — | — | — | — | ||||||||||||||||||||||||||||
Total energy transmission | — | — | ||||||||||||||||||||||||||||||
Energy generation | ||||||||||||||||||||||||||||||||
Eight Flags | — | — | — | — | ||||||||||||||||||||||||||||
Propane operations | ||||||||||||||||||||||||||||||||
Propane delivery operations | — | — | — | — | ||||||||||||||||||||||||||||
Energy delivery services | ||||||||||||||||||||||||||||||||
Marlin Gas Services | — | — | — | — | ||||||||||||||||||||||||||||
Other and eliminations | ||||||||||||||||||||||||||||||||
Eliminations | ( | ) | ( | ) | (13,351 | ) | ( | ) | ( | ) | ( | ) | (12,864 | ) | ( | ) | ||||||||||||||||
Other | — | — | ||||||||||||||||||||||||||||||
Total other and eliminations | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Total operating revenues (1) | $ | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
Trade Receivables | Contract Assets (Current) | Contract Assets (Non-current) | Contract Liabilities (Current) | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at 12/31/2018 | $ | $ | — | $ | $ | |||||||||||
Balance at 9/30/2019 | ||||||||||||||||
Increase (decrease) | $ | ( | ) | $ | $ | $ | ||||||||||
(in thousands) | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 and thereafter | ||||||||||||||||||||
Eastern Shore and Peninsula Pipeline | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Natural gas distribution operations | |||||||||||||||||||||||||||
FPU electric distribution | — | — | — | ||||||||||||||||||||||||
Total revenue contracts with remaining performance obligations | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
5. | Rates and Other Regulatory Activities |
Regulatory Liabilities related to ADIT | |||||
Operation and Regulatory Jurisdiction | Amount (in thousands) | Status | Status of Customer Rate impact related to lower federal corporate income tax rate | ||
Eastern Shore (FERC) | $ | Will be addressed in Eastern Shore's next rate case filing. | Implemented one-time bill credit (totaling $0.9 million) in April 2018. Customer rates were adjusted in April 2018. | ||
Delaware Division (Delaware PSC) | $ | PSC approved amortization of ADIT in January 2019. | Implemented one-time bill credit (totaling $1.5 million) in April 2019. Customer rates were adjusted in March 2019. | ||
Maryland Division (Maryland PSC) | $ | PSC approved amortization of ADIT in May 2018. | Implemented one-time bill credit (totaling $0.4 million) in July 2018. Customer rates were adjusted in May 2018. | ||
Sandpiper Energy (Maryland PSC) | $ | PSC approved amortization of ADIT in May 2018. | Implemented one-time bill credit (totaling $0.6 million) in July 2018. Customer rates were adjusted in May 2018. | ||
Chesapeake Florida Gas Division/Central Florida Gas (Florida PSC) | $ | PSC issued order authorizing amortization and retention of net ADIT liability by the Company in February 2019. | Florida PSC's final order was issued in February 2019. Excluding GRIP, tax savings arising from the TCJA rate reduction will be retained by the Company. GRIP: Tax savings for 2018 will be refunded to customers in 2020 through the annual GRIP cost recovery mechanism. Future customer GRIP surcharges will be adjusted to reflect tax savings associated with TCJA. | ||
FPU Natural Gas (excludes Fort Meade and Indiantown) (Florida PSC) | $ | Same treatment on a net basis as Chesapeake Florida Gas Division (above). | Same treatment on a net basis as Chesapeake Florida Gas Division (above). | ||
FPU Fort Meade and Indiantown Divisions | $ | Same treatment on a net basis as Chesapeake Florida Gas Division (above). | Tax rate reduction: The impact was immaterial for the divisions. GRIP (Applicable to Fort Meade division only): Same treatment as Chesapeake Florida Gas Division (above). | ||
FPU Electric (Florida PSC) | $ | In January 2019, PSC issued order approving amortization of ADIT through purchased power cost recovery, storm reserve and rates. | TCJA benefit will flow back to its customers through a combination of reductions to the fuel cost recovery rate, base rates, as well as application to the storm reserve over the next several years. | ||
MGP Site (Jurisdiction) | Status | Estimated Cost to Clean up (Expect to Recover through Rates with Customers) |
West Palm Beach (Florida) | Remedial actions approved by the Florida Department of Environmental Protection have been implemented on the east parcel of the site. We expect to implement similar remedial actions on the site's west parcel in 2019. | Between $4.5 million to $15.4 million, including costs associated with the relocation of FPU’s operations at this site, and any potential costs associated with future redevelopment of the properties. |
Sanford (Florida) | In March 2018, the United States Environmental Protection Agency ("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. | FPU's remaining remediation expenses, including attorneys' fees and costs, are anticipated to be immaterial. |
Winter Haven (Florida) | Remediation is ongoing. | Not expected to exceed $0.4 million. |
Seaford (Delaware) | Conducted investigations of on-site and off-site impacts in the vicinity of the site, from 2014 through 2018, and submitted the findings to Delaware Department of Natural Resources and Environmental Control ("DNREC") in a March 2019 report. An interim action involving air-sparging/vapor extraction is being implemented, in accordance with the DNREC-approved Work Plan. | Between $0.2 million and $0.5 million. |
Cambridge (Maryland) | Currently in discussions with the MDE. | Unable to estimate. |
7. | Other Commitments and Contingencies |
8. | 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 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, and the new mobile compressed natural gas distribution and pipeline solutions subsidiary. 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. These operations are unregulated as to their rates and services. Effective in the third quarter of 2019, the natural gas marketing and related services subsidiary (PESCO), previously reported in the Unregulated Energy segment, are reflected in discontinued operations. See Note 3, Discontinued Operations for additional details of the sale of PESCO. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in thousands) | ||||||||||||||||
Operating Revenues, Unaffiliated Customers | ||||||||||||||||
Regulated Energy | $ | $ | $ | $ | ||||||||||||
Unregulated Energy | ||||||||||||||||
Total operating revenues, unaffiliated customers | $ | $ | $ | $ | ||||||||||||
Intersegment Revenues (1) | ||||||||||||||||
Regulated Energy | $ | $ | $ | $ | ||||||||||||
Unregulated Energy | ||||||||||||||||
Other businesses | ||||||||||||||||
Total intersegment revenues | $ | $ | $ | $ | ||||||||||||
Operating Income | ||||||||||||||||
Regulated Energy | $ | $ | $ | $ | ||||||||||||
Unregulated Energy | ( | ) | ( | ) | ||||||||||||
Other businesses and eliminations | ( | ) | ( | ) | ||||||||||||
Operating income | ||||||||||||||||
Other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Interest charges | ||||||||||||||||
Income from Continuing Operations before Income Taxes | ||||||||||||||||
Income Taxes on Continuing Operations | ||||||||||||||||
Income from Continuing Operations | $ | $ | $ | $ | ||||||||||||
Loss from Discontinued Operations, net of tax | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net Income | $ | $ | $ | $ | ||||||||||||
(in thousands) | September 30, 2019 | December 31, 2018 | ||||||
Identifiable Assets (1) | ||||||||
Regulated Energy segment | $ | $ | ||||||
Unregulated Energy segment (1) | ||||||||
Other businesses and eliminations | ||||||||
Total identifiable assets (1) | $ | $ | ||||||
9. | Stockholder's Equity |
Defined Benefit | Commodity | |||||||||||
Pension and | Contracts | |||||||||||
Postretirement | Cash Flow | |||||||||||
Plan Items | Hedges | Total | ||||||||||
(in thousands) | ||||||||||||
As of December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Other comprehensive income (loss) before reclassifications | ( | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ( | ) | ( | ) | ||||||||
Net current-period other comprehensive income | ||||||||||||
Prior-year reclassification | — | ( | ) | ( | ) | |||||||
As of September 30, 2019 | $ | ( | ) | $ | $ | ( | ) | |||||
(in thousands) | ||||||||||||
As of December 31, 2017 | $ | ( | ) | $ | $ | ( | ) | |||||
Other comprehensive loss before reclassifications | — | ( | ) | ( | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | ||||||||||||
Net prior-period other comprehensive income/(loss) | ( | ) | ||||||||||
Stranded tax reclassification to retained earnings | ( | ) | ( | ) | ||||||||
As of September 30, 2018 | $ | ( | ) | $ | $ | ( | ) | |||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in thousands) | ||||||||||||||||
Amortization of defined benefit pension and postretirement plan items: | ||||||||||||||||
Prior service credit (1) | $ | $ | $ | $ | ||||||||||||
Net loss(1) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Total before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Income tax benefit | ||||||||||||||||
Net of tax | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Gains and losses on commodity contracts cash flow hedges: | ||||||||||||||||
Propane swap agreements (2) | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
Natural gas swaps (2)(3) | ( | ) | ( | ) | ||||||||||||
Natural gas futures (2)(3) | ( | ) | ( | ) | ( | ) | ||||||||||
Total before income taxes | ( | ) | ( | ) | ||||||||||||
Income tax benefit (expense) | ( | ) | ( | ) | ||||||||||||
Net of tax | ( | ) | ( | ) | ||||||||||||
Total reclassifications for the period | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
10. | Employee Benefit Plans |
Chesapeake Pension Plan | FPU Pension Plan | Chesapeake SERP | Chesapeake Postretirement Plan | FPU Medical Plan | ||||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Interest cost | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||
Amortization of prior service credit | — | — | — | — | — | — | ( | ) | ( | ) | — | — | ||||||||||||||||||||||||||||
Amortization of net loss | — | — | ||||||||||||||||||||||||||||||||||||||
Net periodic cost (benefit) | ( | ) | ||||||||||||||||||||||||||||||||||||||
Settlement expense | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of pre-merger regulatory asset | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total periodic cost | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Chesapeake Pension Plan | FPU Pension Plan | Chesapeake SERP | Chesapeake Postretirement Plan | FPU Medical Plan | ||||||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Interest cost | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||
Amortization of prior service credit | — | — | — | — | — | — | ( | ) | ( | ) | — | — | ||||||||||||||||||||||||||||
Amortization of net loss | — | — | ||||||||||||||||||||||||||||||||||||||
Net periodic cost (benefit) | ( | ) | ||||||||||||||||||||||||||||||||||||||
Settlement expense | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of pre-merger regulatory asset | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total periodic cost | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2019 | Chesapeake Pension Plan | FPU Pension Plan | Chesapeake SERP | Chesapeake Postretirement Plan | FPU Medical Plan | Total | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | ( | ) | $ | — | $ | ( | ) | ||||||||||
Net loss | — | |||||||||||||||||||||||
Total recognized in net periodic benefit cost | ( | ) | — | |||||||||||||||||||||
Recognized from accumulated other comprehensive loss/(gain) (1) | ( | ) | — | |||||||||||||||||||||
Recognized from regulatory asset | — | — | — | — | ||||||||||||||||||||
Total | $ | $ | $ | $ | ( | ) | $ | — | $ | |||||||||||||||
For the Three Months Ended September 30, 2018 | Chesapeake Pension Plan | FPU Pension Plan | Chesapeake SERP | Chesapeake Postretirement Plan | FPU Medical Plan | Total | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | ( | ) | $ | — | $ | ( | ) | ||||||||||
Net loss | — | |||||||||||||||||||||||
Total recognized in net periodic benefit cost | ( | ) | — | |||||||||||||||||||||
Recognized from accumulated other comprehensive loss/(gain) (1) | ( | ) | — | |||||||||||||||||||||
Recognized from regulatory asset | — | — | — | — | ||||||||||||||||||||
Total | $ | $ | $ | $ | ( | ) | $ | — | $ | |||||||||||||||
For the Nine Months Ended September 30, 2019 | Chesapeake Pension Plan | FPU Pension Plan | Chesapeake SERP | Chesapeake Postretirement Plan | FPU Medical Plan | Total | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | ( | ) | $ | — | $ | ( | ) | ||||||||||
Net loss | — | |||||||||||||||||||||||
Total recognized in net periodic benefit cost | ( | ) | — | |||||||||||||||||||||
Recognized from accumulated other comprehensive loss/(gain) (1) | ( | ) | — | |||||||||||||||||||||
Recognized from regulatory asset | — | — | — | — | ||||||||||||||||||||
Total | $ | $ | $ | $ | ( | ) | $ | — | $ | |||||||||||||||
For the Nine Months Ended September 30, 2018 | Chesapeake Pension Plan | FPU Pension Plan | Chesapeake SERP | Chesapeake Postretirement Plan | FPU Medical Plan | Total | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | ( | ) | $ | — | $ | ( | ) | ||||||||||
Net loss | — | |||||||||||||||||||||||
Total recognized in net periodic benefit cost | ( | ) | — | |||||||||||||||||||||
Recognized from accumulated other comprehensive loss/(gain) (1) | ( | ) | — | |||||||||||||||||||||
Recognized from regulatory asset | — | — | — | — | ||||||||||||||||||||
Total | $ | $ | $ | $ | ( | ) | $ | — | $ | |||||||||||||||
11. | Investments |
(in thousands) | September 30, 2019 | December 31, 2018 | |||||
Rabbi trust (associated with the Non-Qualified Deferred Compensation Plan) | $ | $ | |||||
Investments in equity securities | |||||||
Total | $ | $ | |||||
12. | Share-Based Compensation |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in thousands) | ||||||||||||||||
Awards to non-employee directors | $ | $ | $ | $ | ||||||||||||
Awards to key employees | ||||||||||||||||
Total compensation expense | ||||||||||||||||
Less: tax benefit | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Share-based compensation amounts included in net income | $ | $ | $ | $ | ||||||||||||
Number of Shares | Weighted Average Fair Value | ||||||
Outstanding—December 31, 2018 | — | $ | — | ||||
Granted | $ | ||||||
Vested | ( | ) | $ | ||||
Outstanding—September 30, 2019 | — | $ | — | ||||
Number of Shares | Weighted Average Fair Value | ||||||
Outstanding—December 31, 2018 | $ | ||||||
Granted | $ | ||||||
Vested | ( | ) | $ | ||||
Expired | ( | ) | $ | ||||
Outstanding—September 30, 2019 | $ | ||||||
13. | Derivative Instruments |
Business unit | Commodity | Quantity hedged (in millions) | Designation | Longest Expiration date of hedge | ||||
Sharp | Propane (gallons) | Cash flows hedges | June 2022 | |||||
(in thousands) | Balance Sheet Location | September 30, 2019 | December 31, 2018 | ||||||
Sharp | Other Current Assets | $ | $ | ||||||
PESCO | Other Current Assets | $ | ( | ) | $ | ||||
Derivative Assets | ||||||||||
Fair Value As Of | ||||||||||
(in thousands) | Balance Sheet Location | September 30, 2019 | December 31, 2018 | |||||||
Derivatives designated as fair value hedges | ||||||||||
Propane put options | Derivative assets, at fair value | $ | $ | |||||||
Derivatives designated as cash flow hedges | ||||||||||
Propane swap agreements | Derivative assets, at fair value | |||||||||
Total asset derivatives | $ | $ | ||||||||
Derivative Liabilities | ||||||||||
Fair Value As Of | ||||||||||
(in thousands) | Balance Sheet Location | September 30, 2019 | December 31, 2018 | |||||||
Derivatives designated as cash flow hedges | ||||||||||
Propane swap agreements | Derivative liabilities, at fair value | $ | $ | |||||||
Total liability derivatives | $ | $ | ||||||||
Amount of Gain (Loss) on Derivatives: | ||||||||||||||||||
Location of Gain | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
(in thousands) | (Loss) on Derivatives | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||
Propane swap agreements | Cost of sales | $ | $ | $ | $ | ( | ) | |||||||||||
Derivatives designated as cash flow hedges | ||||||||||||||||||
Propane swap agreements | Cost of sales | ( | ) | ( | ) | |||||||||||||
Propane swap agreements | Other comprehensive income (loss) | ( | ) | ( | ) | ( | ) | |||||||||||
Natural gas swap contracts | Other comprehensive income (loss) | ( | ) | ( | ) | |||||||||||||
Natural gas futures contracts | Other comprehensive income (loss) | ( | ) | |||||||||||||||
Total | $ | $ | $ | $ | ( | ) | ||||||||||||
(in thousands) | Carrying Amount of Hedged Item | Cumulative Adjustment Included in Carrying Amount of Hedged Item | |||||||||||
Balance Sheet Location of Hedged Items | At September 30, 2019 | At December 31, 2018 | At September 30, 2019 | At December 31, 2018 | |||||||||
Inventory | $ | $ | $ | — | $ | — | |||||||
14. | Fair Value of Financial Instruments |
Fair Value Hierarchy | Description of Fair Value Level | Fair Value Technique Utilized |
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities | 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 | 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 | Derivative assets and liabilities - The fair values of forward contracts are measured using market transactions in either the listed or over-the-counter 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 over-the-counter markets. |
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) | Investments - guaranteed income fund - The fair values of these investments are recorded at the contract value, which approximates their fair value. |
Fair Value Measurements Using: | ||||||||||||||||
As of September 30, 2019 | 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 | $ | $ | $ | — | $ | — | ||||||||||
Investments—guaranteed income fund | — | — | ||||||||||||||
Investments—mutual funds and other | — | — | ||||||||||||||
Total investments | — | |||||||||||||||
Derivative assets (1) | — | — | ||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities (1) | $ | $ | — | $ | $ | — | ||||||||||
Fair Value Measurements Using: | ||||||||||||||||
As of December 31, 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 | $ | $ | $ | — | $ | — | ||||||||||
Investments—guaranteed income fund | — | — | ||||||||||||||
Investments—mutual funds and other | — | — | ||||||||||||||
Total investments | — | |||||||||||||||
Derivative assets (1) | — | — | ||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities (1) | $ | $ | — | $ | $ | — | ||||||||||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Beginning Balance | $ | $ | |||||
Purchases and adjustments | |||||||
Transfers | ( | ) | |||||
Distribution | ( | ) | ( | ) | |||
Investment income | |||||||
Ending Balance | $ | $ | |||||
15. | Long-Term Debt |
September 30, | December 31, | |||||||
(in thousands) | 2019 | 2018 | ||||||
FPU secured first mortgage bonds (1) : | ||||||||
9.08% bond, due June 1, 2022 | $ | $ | ||||||
Uncollateralized senior notes: | ||||||||
5.50% note, due October 12, 2020 | ||||||||
5.93% note, due October 31, 2023 | ||||||||
5.68% note, due June 30, 2026 | ||||||||
6.43% note, due May 2, 2028 | ||||||||
3.73% note, due December 16, 2028 | ||||||||
3.88% note, due May 15, 2029 | ||||||||
3.25% note, due April 30, 2032 | ||||||||
3.48% note, due May 31, 2038 | ||||||||
3.58% note, due November 30, 2038 | ||||||||
3.98% note, due August 20, 2039 | — | |||||||
Term Note due January 21, 2020 | ||||||||
Term Note due February 28, 2020 | — | |||||||
Promissory notes | ||||||||
Finance lease obligation | ||||||||
Less: debt issuance costs | ( | ) | ( | ) | ||||
Total long-term debt | ||||||||
Less: current maturities | ( | ) | ( | ) | ||||
Total long-term debt, net of current maturities | $ | $ | ||||||
Total Borrowing Capacity | Less: Amount of Debt Issued | Less: Unfunded Commitments | Remaining Borrowing Capacity | |||||||||||||
(in thousands) | ||||||||||||||||
Shelf Agreement | ||||||||||||||||
Prudential Shelf Agreement | $ | $ | ( | ) | $ | — | $ | |||||||||
MetLife Shelf Agreement | — | — | ||||||||||||||
NYL Shelf Agreement | ( | ) | — | |||||||||||||
Total | $ | $ | ( | ) | $ | $ | ||||||||||
16. | Leases |
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
( in thousands) | Classification | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating lease cost (1) | Operations expense | $ | $ | $ | $ | |||||||||||||
Finance lease cost: | ||||||||||||||||||
Amortization of lease assets | Depreciation and amortization | — | ||||||||||||||||
Interest on lease liabilities | Interest expense | — | ||||||||||||||||
Net lease cost | $ | $ | $ | $ | ||||||||||||||
(in thousands) | Balance sheet classification | Amount | ||||
Assets | ||||||
Operating lease assets | Operating lease right-of-use assets | $ | ||||
Total lease assets | $ | |||||
Liabilities | ||||||
Current | ||||||
Operating lease liabilities | Other accrued liabilities | $ | ||||
Noncurrent | ||||||
Operating lease liabilities | Operating lease - liabilities | |||||
Total lease liabilities | $ | |||||
At September 30, 2019 | |||
Weighted-average remaining lease term (in years) | |||
Operating leases | |||
Weighted-average discount rate | |||
Operating leases | % | ||
Nine Months Ended | ||||||||
September 30, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Operating cash flows from operating leases | $ | $ | ||||||
Operating cash flows from finance leases | $ | $ | ||||||
Financing cash flows from finance leases | $ | $ | ||||||
(in thousands) | Operating Leases (1) | Finance Leases | Total | |||||||||
Remainder of 2019 | $ | $ | $ | |||||||||
2020 | — | |||||||||||
2021 | — | |||||||||||
2022 | — | |||||||||||
2023 | — | |||||||||||
2024 | — | |||||||||||
Thereafter | — | |||||||||||
Total lease payments | $ | $ | $ | |||||||||
Less: Interest | ||||||||||||
Present value of lease liabilities | $ | $ | $ | |||||||||
Year(s) | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||
(in thousands) | ||||||||||||||
Expected payments | $ | $ | $ | $ | $ | $ | $ | |||||||
Our strategy is to consistently produce industry-leading total shareholder returns by profitably investing capital into opportunities that leverage our skills and expertise in energy distribution and transmission to achieve high levels of service and growth. The key elements of our strategy include: • capital investment in growth opportunities that generate our target returns;• expanding our energy distribution and transmission operations within our existing service areas as well as into new geographic areas;• providing new services in our current service areas;• expanding our footprint in potential growth markets through strategic acquisitions;• entering new energy markets and businesses that complement our existing operations and growth strategy; and• operating as a customer-centric full-service energy supplier/partner/provider of safe and reliable service.Our employees strive to build meaningful connections that generate opportunities to grow our businesses, develop new markets, and enrich the communities in which we live, work and serve. |
Three Months Ended | ||||||||||||
September 30, | Increase | |||||||||||
2019 | 2018 | (decrease) | ||||||||||
(in thousands except per share) | ||||||||||||
Business Segment: | ||||||||||||
Regulated Energy segment | $ | 17,540 | $ | 15,915 | $ | 1,625 | ||||||
Unregulated Energy segment | (3,168 | ) | (3,090 | ) | (78 | ) | ||||||
Other businesses and eliminations | (14 | ) | 54 | (68 | ) | |||||||
Operating Income | 14,358 | 12,879 | 1,479 | |||||||||
Other expense, net | (350 | ) | (4 | ) | (346 | ) | ||||||
Interest charges | 5,403 | 4,357 | 1,046 | |||||||||
Income from Continuing Operations Before Income Taxes | 8,605 | 8,518 | 87 | |||||||||
Income Taxes on Continuing Operations | 2,360 | 2,428 | (68 | ) | ||||||||
Income from Continuing operations | 6,245 | 6,090 | 155 | |||||||||
Loss from Discontinued Operations | (624 | ) | (552 | ) | (72 | ) | ||||||
Net Income | $ | 5,621 | $ | 5,538 | $ | 83 | ||||||
Basic Earnings Per Share of Common Stock | ||||||||||||
Earnings from Continuing Operations | $ | 0.38 | $ | 0.37 | $ | 0.01 | ||||||
Earnings from Discontinued Operations | (0.04 | ) | (0.03 | ) | (0.01 | ) | ||||||
Basic Earnings Per Share of Common Stock | $ | 0.34 | $ | 0.34 | $ | — | ||||||
Diluted Earnings Per Share of Common Stock | ||||||||||||
Earnings from Continuing Operations | $ | 0.38 | $ | 0.37 | $ | 0.01 | ||||||
Earnings from Discontinued Operations | (0.04 | ) | (0.03 | ) | (0.01 | ) | ||||||
Diluted Earnings Per Share of Common Stock | $ | 0.34 | $ | 0.34 | $ | — | ||||||
(in thousands, except per share data) | Pre-tax Income | Net Income | Earnings Per Share | |||||||||
Third Quarter of 2018 Reported Results from Continuing Operations | $ | 8,518 | $ | 6,090 | $ | 0.37 | ||||||
Increased (Decreased) Gross Margins: | ||||||||||||
Eastern Shore and Peninsula Pipeline service expansions (including related Florida natural gas distribution operation expansions)* | 2,312 | 1,678 | 0.10 | |||||||||
Margin contribution from Marlin Gas Services and Ohl* | 1,088 | 790 | 0.05 | |||||||||
Natural gas distribution growth (excluding service expansions) | 791 | 574 | 0.04 | |||||||||
Increased retail propane margins per gallon | 470 | 341 | 0.02 | |||||||||
Sandpiper's margin from natural gas conversions | 224 | 162 | 0.01 | |||||||||
Increased margin primarily from the storm recovery surcharge for Florida electric distribution operations | 169 | 122 | 0.01 | |||||||||
TCJA impact from the 2019 retained tax savings for certain Florida natural gas operations* | 109 | 79 | 0.01 | |||||||||
Aspire Energy higher gas supply costs | (233 | ) | (169 | ) | (0.01 | ) | ||||||
Florida GRIP* (1) | (144 | ) | (104 | ) | (0.01 | ) | ||||||
4,786 | 3,473 | 0.22 | ||||||||||
(Increased) Decreased Operating Expenses (Excluding Cost of Sales): | ||||||||||||
Depreciation, amortization and property tax costs due to growth investments | (1,152 | ) | (836 | ) | (0.05 | ) | ||||||
Operating expenses for Marlin Gas Services and Ohl including costs to expand the future growth prospects for the businesses | (1,055 | ) | (766 | ) | (0.05 | ) | ||||||
Insurance - both insured and self-insured components | (790 | ) | (573 | ) | (0.03 | ) | ||||||
Payroll, benefits and other employee-related expenses | (392 | ) | (285 | ) | (0.02 | ) | ||||||
(3,389 | ) | (2,460 | ) | (0.15 | ) | |||||||
Change in effective tax rate | — | 23 | — | |||||||||
Interest charges | (1,046 | ) | (759 | ) | (0.05 | ) | ||||||
Net other changes | (264 | ) | (122 | ) | (0.01 | ) | ||||||
(1,310 | ) | (858 | ) | (0.06 | ) | |||||||
Third Quarter of 2019 Reported Results from Continuing Operations | $ | 8,605 | $ | 6,245 | $ | 0.38 | ||||||
Nine Months Ended | ||||||||||||
September 30, | Increase | |||||||||||
2019 | 2018 | (decrease) | ||||||||||
(in thousands except per share) | ||||||||||||
Business Segment: | ||||||||||||
Regulated Energy segment | $ | 65,310 | $ | 56,930 | $ | 8,380 | ||||||
Unregulated Energy segment | 11,316 | 10,519 | 797 | |||||||||
Other businesses and eliminations | 18 | (1,481 | ) | 1,499 | ||||||||
Operating Income | $ | 76,644 | $ | 65,968 | $ | 10,676 | ||||||
Other expense, net | (729 | ) | (168 | ) | (561 | ) | ||||||
Interest charges | 16,583 | 11,764 | 4,819 | |||||||||
Income from Continuing Operations Before Income Taxes | 59,332 | 54,036 | 5,296 | |||||||||
Income taxes on Continuing Operations | 15,355 | 14,918 | 437 | |||||||||
Income from Continuing operations | 43,977 | 39,118 | 4,859 | |||||||||
Loss from Discontinued Operations | (1,388 | ) | (339 | ) | (1,049 | ) | ||||||
Net Income | $ | 42,589 | $ | 38,779 | $ | 3,810 | ||||||
Basic Earnings Per Share of Common Stock | ||||||||||||
Earnings from Continuing Operations | $ | 2.68 | $ | 2.39 | $ | 0.29 | ||||||
Earnings from Discontinued Operations | (0.08 | ) | (0.02 | ) | (0.06 | ) | ||||||
Basic Earnings Per Share of Common Stock | $ | 2.60 | $ | 2.37 | $ | 0.23 | ||||||
Diluted Earnings Per Share of Common Stock | ||||||||||||
Earnings from Continuing Operations | $ | 2.67 | $ | 2.38 | $ | 0.29 | ||||||
Earnings from Discontinued Operations | (0.08 | ) | (0.02 | ) | (0.06 | ) | ||||||
Diluted Earnings Per Share of Common Stock | $ | 2.59 | $ | 2.36 | $ | 0.23 | ||||||
(in thousands, except per share data) | Pre-tax Income | Net Income | Earnings Per Share | |||||||||
Nine Months Ended September 30, 2018 Reported Results from Continuing Operations | $ | 54,036 | $ | 39,118 | $ | 2.38 | ||||||
Adjusting for Unusual Items: | ||||||||||||
Decreased customer consumption - primarily due to warmer weather | (4,511 | ) | (3,344 | ) | (0.20 | ) | ||||||
Nonrecurring separation expenses associated with a former executive | 1,548 | 1,421 | 0.09 | |||||||||
2018 retained tax savings for certain Florida natural gas operations* | 1,321 | 990 | 0.06 | |||||||||
(1,642 | ) | (933 | ) | (0.05 | ) | |||||||
Increased (Decreased) Gross Margins: | ||||||||||||
Eastern Shore and Peninsula Pipeline service expansions (including new service in Northwest Florida for related Florida natural gas distribution operations)* | 10,452 | 7,747 | 0.47 | |||||||||
Margin contribution from Marlin Gas Services and Ohl* | 5,036 | 3,733 | 0.23 | |||||||||
Natural gas distribution growth (excluding service expansions) | 3,446 | 2,554 | 0.16 | |||||||||
Increased retail propane margins per gallon | 1,689 | 1,252 | 0.08 | |||||||||
TCJA impact from the 2019 retained tax savings for certain Florida natural gas operations* | 1,117 | 828 | 0.05 | |||||||||
Aspire Energy rate increases | 858 | 636 | 0.04 | |||||||||
Sandpiper's margin from natural gas conversions | 837 | 621 | 0.04 | |||||||||
Florida GRIP* (1) | 391 | 290 | 0.02 | |||||||||
Absence of Bomb Cyclone impact on wholesale propane margins | (785 | ) | (582 | ) | (0.04 | ) | ||||||
Aspire Energy higher gas supply costs | (429 | ) | (318 | ) | (0.02 | ) | ||||||
22,612 | 16,761 | 1.03 | ||||||||||
(Increased) Decreased Operating Expenses (Excluding Cost of Sales): | ||||||||||||
Depreciation, amortization and property tax costs due to new capital investments | (4,711 | ) | (3,492 | ) | (0.21 | ) | ||||||
Operating expenses for Marlin Gas Services and Ohl including costs to expand the future growth prospects for the businesses | (3,367 | ) | (2,496 | ) | (0.15 | ) | ||||||
Payroll, benefits and other employee-related expenses | (2,471 | ) | (1,832 | ) | (0.11 | ) | ||||||
Insurance - both insured and self-insured components | (1,223 | ) | (907 | ) | (0.06 | ) | ||||||
Vehicle expenses due to additional fleet to support growth | (331 | ) | (246 | ) | (0.01 | ) | ||||||
Facilities and maintenance costs due to consolidation of facilities and lower levels of tank refurbishments | 1,425 | 1,056 | 0.06 | |||||||||
Outside services and regulatory costs due to lower consulting costs, absence of Eastern Shore rate case and the timing of expenses | 865 | 641 | 0.04 | |||||||||
(9,813 | ) | (7,276 | ) | (0.44 | ) | |||||||
Change in effective tax rate | — | 556 | 0.03 | |||||||||
Interest Charges | (4,819 | ) | (3,572 | ) | (0.22 | ) | ||||||
Net other changes | (1,042 | ) | (677 | ) | (0.06 | ) | ||||||
(5,861 | ) | (3,693 | ) | (0.25 | ) | |||||||
Nine Months Ended September 30, 2019 Reported Results from Continuing Operations | $ | 59,332 | $ | 43,977 | $ | 2.67 | ||||||
Gross Margin for the Period | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Year Ended | Estimate for | ||||||||||||||||||||||||
September 30, | September 30, | December 31, | Fiscal | ||||||||||||||||||||||||
in thousands | 2019 | 2018 | 2019 | 2018 | 2018 | 2019 | 2020 | ||||||||||||||||||||
Expansions: | |||||||||||||||||||||||||||
2017 Eastern Shore System Expansion - including interim services | $ | 3,671 | $ | 2,409 | $ | 12,116 | $ | 5,527 | $ | 9,103 | $ | 16,209 | $ | 15,799 | |||||||||||||
Northwest Florida Expansion (including related natural gas distribution services) | 1,592 | 1,589 | 4,881 | 2,741 | 4,350 | 6,500 | 6,500 | ||||||||||||||||||||
Western Palm Beach County, Florida Expansion | 745 | — | 1,068 | — | 54 | 2,254 | 5,047 | ||||||||||||||||||||
Del-Mar Energy Pathway - including interim services | 189 | — | 542 | — | — | 725 | 3,039 | ||||||||||||||||||||
Auburndale | 113 | — | 113 | — | — | 283 | 679 | ||||||||||||||||||||
Callahan Intrastate Pipeline | — | — | — | — | — | — | 3,219 | ||||||||||||||||||||
Total Expansions | 6,310 | 3,998 | 18,720 | 8,268 | 13,507 | 25,971 | 34,283 | ||||||||||||||||||||
Acquisitions: | |||||||||||||||||||||||||||
Marlin Gas Services | 993 | — | 4,353 | — | 110 | 5,500 | 6,400 | ||||||||||||||||||||
Ohl Propane Acquisition | 95 | — | 683 | — | — | 1,200 | 1,236 | ||||||||||||||||||||
Total Acquisitions | 1,088 | — | 5,036 | — | 110 | 6,700 | 7,636 | ||||||||||||||||||||
Regulatory Initiatives | |||||||||||||||||||||||||||
Florida GRIP (1) (2) | 3,145 | 3,289 | 10,050 | 9,659 | 13,323 | 13,587 | 14,854 | ||||||||||||||||||||
Tax benefit retained by certain Florida entities(3) | 109 | — | 2,438 | — | — | 2,980 | 1,879 | ||||||||||||||||||||
Total Regulatory Initiatives | 3,254 | 3,289 | 12,488 | 9,659 | 13,323 | 16,567 | 16,733 | ||||||||||||||||||||
Total | $ | 10,652 | $ | 7,287 | $ | 36,244 | $ | 17,927 | $ | 26,940 | $ | 49,238 | $ | 58,652 | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2019 | 2018 | Variance | 2019 | 2018 | Variance | ||||||||||||
Delmarva | |||||||||||||||||
Actual HDD | 7 | 10 | (3 | ) | 2,576 | 2,729 | (153 | ) | |||||||||
10-Year Average HDD ("Normal") | 55 | 61 | (6 | ) | 2,803 | 2,846 | (43 | ) | |||||||||
Variance from Normal | (48 | ) | (51 | ) | (227 | ) | (117 | ) | |||||||||
Florida | |||||||||||||||||
Actual HDD | — | — | — | 379 | 507 | (128 | ) | ||||||||||
10-Year Average HDD ("Normal") | — | — | — | 532 | 533 | (1 | ) | ||||||||||
Variance from Normal | — | — | (153 | ) | (26 | ) | |||||||||||
Ohio | |||||||||||||||||
Actual HDD | 2 | 55 | (53 | ) | 3,533 | 3,707 | (174 | ) | |||||||||
10-Year Average HDD ("Normal") | 90 | 91 | (1 | ) | 3,742 | 3,774 | (32 | ) | |||||||||
Variance from Normal | (88 | ) | (36 | ) | (209 | ) | (67 | ) | |||||||||
Florida | |||||||||||||||||
Actual CDD | 1,620 | 1,613 | 7 | 2,840 | 2,704 | 136 | |||||||||||
10-Year Average CDD ("Normal") | 1,553 | 1,535 | 18 | 2,625 | 2,593 | 32 | |||||||||||
Variance from Normal | 67 | 78 | 215 | 111 | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||
(in thousands) | September 30, 2019 | September 30, 2019 | ||||||
Customer Growth: | ||||||||
Residential | $ | 358 | $ | 1,450 | ||||
Commercial and industrial | 433 | 1,996 | ||||||
Total Customer Growth | $ | 791 | $ | 3,446 | ||||
Three Months Ended | ||||||||||||
September 30, | Increase | |||||||||||
2019 | 2018 | (decrease) | ||||||||||
(in thousands) | ||||||||||||
Revenue | $ | 74,580 | $ | 72,770 | $ | 1,810 | ||||||
Cost of sales | 19,619 | 21,501 | (1,882 | ) | ||||||||
Gross margin | 54,961 | 51,269 | 3,692 | |||||||||
Operations & maintenance | 24,374 | 23,376 | 998 | |||||||||
Depreciation & amortization | 8,684 | 8,405 | 279 | |||||||||
Other taxes | 4,363 | 3,573 | 790 | |||||||||
Total operating expenses | 37,421 | 35,354 | 2,067 | |||||||||
Operating income | $ | 17,540 | $ | 15,915 | $ | 1,625 | ||||||
(in thousands) | Margin Impact | ||
Eastern Shore and Peninsula Pipeline service expansions (including related Florida natural gas distribution operation expansions) | $ | 2,312 | |
Natural gas distribution growth (excluding service expansions) | 791 | ||
Sandpiper's margin primarily from natural gas conversions | 224 | ||
Increased margin primarily from the storm recovery surcharge for Florida electric distribution operations | 169 | ||
TCJA impact from the 2019 retained tax savings for certain Florida natural gas operations | 109 | ||
Florida GRIP (1) | (144 | ) | |
Other variances | 231 | ||
Quarter-over-quarter increase in gross margin | $ | 3,692 | |
• | $1.3 million from Eastern Shore's 2017 System Expansion Project. |
• | $0.8 million generated from Peninsula Pipeline's Western Palm Beach County, Northwest Pipeline and Auburndale Projects. |
• | $0.2 million generated from interim services in advance of Eastern Shore's Del-Mar Energy Pathway Project. |
(in thousands) | |||
Depreciation, amortization and property tax costs due to growth investments(1) | $ | 991 | |
Insurance expense - both insured and self-insured components | 718 | ||
Payroll, benefits and other employee-related expenses | 345 | ||
Other variances | 13 | ||
Quarter-over-quarter increase in other operating expenses | $ | 2,067 | |
Nine Months Ended | ||||||||||||
September 30, | Increase | |||||||||||
2019 | 2018 | (decrease) | ||||||||||
(in thousands) | ||||||||||||
Revenue | $ | 251,601 | $ | 252,667 | $ | (1,066 | ) | |||||
Cost of sales | 74,452 | 89,741 | (15,289 | ) | ||||||||
Gross margin | 177,149 | 162,926 | 14,223 | |||||||||
Operations & maintenance | 73,071 | 71,546 | 1,525 | |||||||||
Depreciation & amortization | 26,099 | 23,541 | 2,558 | |||||||||
Other taxes | 12,669 | 10,909 | 1,760 | |||||||||
Total operating expenses | 111,839 | 105,996 | 5,843 | |||||||||
Operating income | $ | 65,310 | $ | 56,930 | $ | 8,380 | ||||||
(in thousands) | Margin Impact | ||
Eastern Shore and Peninsula Pipeline service expansions (including related Florida natural gas distribution operation expansions) | $ | 10,452 | |
Natural gas distribution - customer growth (excluding service expansions) | 3,446 | ||
2018 retained tax savings for certain Florida natural gas distribution operations | 1,321 | ||
TCJA impact from the 2019 retained tax savings for certain Florida natural gas operations | 1,117 | ||
Sandpiper's margin primarily from natural gas conversions | 837 | ||
Florida GRIP (1) | 391 | ||
Decreased customer consumption - primarily due to warmer weather | (3,248 | ) | |
Other variances | (93 | ) | |
Period-over-period increase in gross margin | $ | 14,223 | |
• | $6.6 million from Eastern Shore's services in conjunction with its 2017 System Expansion Project. |
• | $3.3 million generated from Peninsula Pipeline's Western Palm Beach County Pipeline, Northwest Pipeline Expansion and Auburndale Projects. |
• | $0.6 million generated from interim services in advance of Eastern Shore's Del-Mar Energy Pathway Project. |
(in thousands) | |||
Depreciation, amortization and property tax costs due to growth investments(1) | $ | 4,292 | |
Payroll, benefits and other employee-related expenses | 2,299 | ||
Insurance expense - both insured and self-insured components | 975 | ||
Vehicle expenses due to additional fleet to support growth | 168 | ||
Facilities and maintenance costs due to the consolidation of facilities | (1,194 | ) | |
Outside services and regulatory costs due to lower consulting fees and timing of expense | (1,062 | ) | |
Other variances | 365 | ||
Period-over-period increase in other operating expenses | $ | 5,843 | |
Three Months Ended | ||||||||||||
September 30, | Increase | |||||||||||
2019 | 2018 | (decrease) | ||||||||||
(in thousands) | ||||||||||||
Revenue | $ | 22,280 | $ | 24,423 | $ | (2,143 | ) | |||||
Cost of sales | 9,862 | 13,221 | (3,359 | ) | ||||||||
Gross margin | 12,418 | 11,202 | 1,216 | |||||||||
Operations & maintenance | 12,270 | 11,460 | 810 | |||||||||
Depreciation & amortization | 2,519 | 2,061 | 458 | |||||||||
Other taxes | 797 | 771 | 26 | |||||||||
Total operating expenses | 15,586 | 14,292 | 1,294 | |||||||||
Operating loss (1) | $ | (3,168 | ) | $ | (3,090 | ) | $ | (78 | ) | |||
(in thousands) | Margin Impact | |||
Marlin Gas Services (acquired assets of Marlin Gas Transport in December 2018) | $ | 993 | ||
Propane Operations | ||||
Increased retail propane margins per gallon driven by favorable market conditions and supply management | 470 | |||
Ohl acquisition (assets acquired in December 2018) | 95 | |||
Aspire Energy | ||||
Higher gas supply costs | (233 | ) | ||
Other variances | (109 | ) | ||
Quarter-over-quarter increase in gross margin | $ | 1,216 | ||
(in thousands) | |||
Operating expenses for Marlin Gas Services and Ohl (Assets acquired in December 2018) including costs to expand the future growth prospects for the businesses | $ | 746 | |
Depreciation and amortization due to new capital investments | 458 | ||
Insurance expense - both insured and self-insured components | 179 | ||
Other variances | (89 | ) | |
Quarter-over-quarter increase in other operating expenses | $ | 1,294 | |
Nine Months Ended | ||||||||||||
September 30, | Increase | |||||||||||
2019 | 2018 | (decrease) | ||||||||||
(in thousands) | ||||||||||||
Revenue | $ | 108,985 | $ | 115,778 | $ | (6,793 | ) | |||||
Cost of sales | 49,645 | 61,142 | (11,497 | ) | ||||||||
Gross margin | 59,340 | 54,636 | 4,704 | |||||||||
Operations & maintenance | 38,001 | 35,516 | 2,485 | |||||||||
Depreciation & amortization | 7,462 | 6,135 | 1,327 | |||||||||
Other taxes | 2,561 | 2,466 | 95 | |||||||||
Total operating expenses | 48,024 | 44,117 | 3,907 | |||||||||
Operating income (1) | $ | 11,316 | $ | 10,519 | $ | 797 | ||||||
(in thousands) | ||||
Marlin Gas Services (acquired assets of Marlin Gas Transport in December 2018) | $ | 4,353 | ||
Propane Operations | ||||
Increased retail propane margins per gallon driven by favorable market conditions and supply management | 1,689 | |||
Ohl acquisition (assets acquired in December 2018) | 683 | |||
Decrease in customer consumption due primarily to the absence of the 2018 Bomb Cyclone | (1,559 | ) | ||
Decrease in wholesale propane margins due primarily to the absence of the 2018 Bomb Cyclone | (785 | ) | ||
Aspire Energy | ||||
Rate increases | 858 | |||
Customer consumption growth | 296 | |||
Higher gas supply costs | (429 | ) | ||
Other variances | (402 | ) | ||
Period-over-period increase in gross margin | $ | 4,704 | ||
(in thousands) | |||
Operating expenses for Marlin Gas Services and Ohl (Asset acquisitions in December 2018) including costs to expand the future growth prospects for the businesses | $ | 2,435 | |
Depreciation and amortization due to new capital investments | 1,327 | ||
Insurance expense - both insured and self-insured components | 244 | ||
Facilities and maintenance costs primarily due to lower level of tank refurbishments for propane operations | (380 | ) | |
Other variances | 281 | ||
Period-over-period increase in other operating expenses | $ | 3,907 | |
2019 | |||||||
(dollars in thousands) | Low | High | |||||
Regulated Energy: | |||||||
Natural gas distribution | $ | 63,000 | $ | 65,000 | |||
Natural gas transmission | 62,000 | 64,000 | |||||
Electric distribution | 4,000 | 6,000 | |||||
Total Regulated Energy | 129,000 | 135,000 | |||||
Unregulated Energy: | |||||||
Propane distribution | 12,000 | 13,000 | |||||
Energy transmission | 11,000 | 12,000 | |||||
Other unregulated energy | 8,000 | 14,000 | |||||
Total Unregulated Energy | 31,000 | 39,000 | |||||
Other: | |||||||
Corporate and other businesses | 10,000 | 11,000 | |||||
Total Other | 10,000 | 11,000 | |||||
Total 2019 Expected Capital Expenditures | $ | 170,000 | $ | 185,000 | |||
September 30, 2019 | December 31, 2018 | |||||||||||||
(in thousands) | ||||||||||||||
Long-term debt, net of current maturities | $ | 375,810 | 41 | % | $ | 316,020 | 38 | % | ||||||
Stockholders’ equity | 544,711 | 59 | % | 518,439 | 62 | % | ||||||||
Total capitalization, excluding short-term debt | $ | 920,521 | 100 | % | $ | 834,459 | 100 | % | ||||||
September 30, 2019 | December 31, 2018 | |||||||||||||
(in thousands) | ||||||||||||||
Short-term debt | $ | 224,744 | 18 | % | $ | 294,458 | 26 | % | ||||||
Long-term debt, including current maturities | 451,410 | 37 | % | 327,955 | 29 | % | ||||||||
Stockholders’ equity | 544,711 | 45 | % | 518,439 | 45 | % | ||||||||
Total capitalization, including short-term debt | $ | 1,220,865 | 100 | % | $ | 1,140,852 | 100 | % | ||||||
Total Borrowing Capacity | Less: Amount of Debt Issued | Less: Unfunded Commitments | Remaining Borrowing Capacity | |||||||||||||
(in thousands) | ||||||||||||||||
Shelf Agreement | ||||||||||||||||
Prudential Shelf Agreement | $ | 220,000 | $ | (170,000 | ) | $ | — | $ | 50,000 | |||||||
MetLife Shelf Agreement | 150,000 | — | — | 150,000 | ||||||||||||
NYL Shelf Agreement | 150,000 | (100,000 | ) | — | 50,000 | |||||||||||
Total | $ | 520,000 | $ | (270,000 | ) | $ | — | $ | 250,000 | |||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Net cash provided by (used in): | ||||||||
Operating activities | $ | 103,939 | $ | 127,996 | ||||
Investing activities | (139,913 | ) | (171,167 | ) | ||||
Financing activities | 34,205 | 43,772 | ||||||
Net increase (decrease) in cash and cash equivalents | (1,769 | ) | 601 | |||||
Cash and cash equivalents—beginning of period | 6,089 | 5,614 | ||||||
Cash and cash equivalents—end of period | $ | 4,320 | $ | 6,215 | ||||
• | Changes in net accounts receivable and accrued revenue and accounts payable and accrued liabilities decreased cash flows by $23.0 million, due primarily to the timing and receipt of payments. |
• | Net cash flows from changes in customer deposits and prepaid expenses increased by approximately $12.4 million. |
• | Changes in net regulatory assets and liabilities decreased cash flows by $11.1 million, due primarily to the change in fuel costs collected through the various cost recovery mechanisms. |
• | Net income, adjusted for non-cash adjustments and reconciling activities, decreased cash flows by $3.7 million, primarily due to lower non-cash adjustments to deferred income taxes and loss on sale of assets. |
• | Net cash flows from income taxes receivable decreased by $1.9 million due primarily to the absence of tax refunds associated with lower corporate tax rates implemented in the prior year as a component of the TCJA; and |
• | Net cash flows from changes in propane inventory, storage gas and other inventories increased by approximately $1.6 million. |
• | Increased cash flows from lower repayments of long-term debt of $24.1 million. |
• | Increased cash flows of $54.9 million associated with the issuance of long-term debt. For the nine months ended September 30, 2019 we received $129.8 million from the issuance of the Prudential Shelf Notes in August 2019 and term notes in January 2019. For the nine months ended September 30, 2018, we had received $74.9 million in net cash proceeds from the Revolver and the issuance of the NYL Shelf Notes (Series A). |
• | Decreased cash flows from repayments of short-term borrowing of $83.5 million under our line of credit arrangements; and |
• | Cash dividends of $18.2 million paid during the nine months ended September 30, 2019, compared to $16.2 million for the nine months ended September 30, 2018. |
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) | $ | 75,600 | $ | 40,689 | $ | 39,700 | $ | 296,100 | $ | 452,089 | ||||||||||
Purchase obligations - Commodity (2) | 26,105 | 156 | — | — | 26,261 | |||||||||||||||
Total | $ | 101,705 | $ | 40,845 | $ | 39,700 | $ | 296,100 | $ | 478,350 | ||||||||||
(in thousands) | Balance at December 31, 2018 | Increase (Decrease) in Fair Market Value | Less Amounts Settled | Balance at September 30, 2019 | |||||||||||
Sharp | $ | (1,522 | ) | $ | (1,820 | ) | $ | 1,126 | $ | (2,216 | ) | ||||
Total | $ | (1,522 | ) | $ | (1,820 | ) | $ | 1,126 | $ | (2,216 | ) | ||||
(in thousands) | 2019 | 2020 | 2021 | 2022 | 2023 | Total Fair Value | |||||||||||||||||
Price based on Mont Belvieu - Sharp | $ | (491 | ) | $ | (1,400 | ) | $ | (301 | ) | $ | (24 | ) | $ | — | $ | (2,216 | ) | ||||||
Total | $ | (491 | ) | $ | (1,400 | ) | $ | (301 | ) | $ | (24 | ) | $ | — | $ | (2,216 | ) | ||||||
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) | |||||||||
July 1, 2019 through July 31, 2019 (1) | 418 | $ | 94.86 | — | — | ||||||||
August 1, 2019 through August 31, 2019 | — | — | — | — | |||||||||
September 1, 2019 through September 30, 2019 | — | — | — | — | |||||||||
Total | 418 | $ | 94.86 | — | — | ||||||||
Item 6. | Exhibits |
10.1* | ||
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 Executive Vice President, Chief Financial Officer, and Assistant Corporate Secretary |
• | Any claims for assault, battery, wrongful termination, defamation, invasion of privacy, intentional infliction of emotional distress, or any other common law claims; |
• | Any claims for the breach of any written, implied or oral contract between Executive and any of the Released Parties, including but not limited to his Employment Agreement; |
• | Any claims of discrimination, harassment or retaliation based on such things as age, national origin, ancestry, race, color, ethnicity, religion, sex, sexual orientation, physical or mental disability, medical condition, citizenship status, genetic information, marital status, military or veteran status, or any other classification protected by law; |
• | Any claims for payments of any nature, including but not limited to wages, overtime pay, severance pay, commissions, bonuses and benefits or the monetary equivalent of benefits, except as set forth above; |
• | Any claims for, or entitlement to, reinstatement to Executive’s previous position with, or rehire or re-employment by, the Company; and |
• | Any claims related in any way to the cessation of Employee’s employment with the Company. |
5. | Covenants |
EXECUTIVE: | CHESAPEAKE UTILITIES CORPORATION: |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2019 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/ JEFFRY M. HOUSEHOLDER |
Jeffry M. Householder President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2019 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 Executive Vice President, Chief Financial Officer, and Assistant Corporate Secretary |
/s/ JEFFRY M. HOUSEHOLDER |
Jeffry M. Householder |
November 7, 2019 |
/S/ BETH W. COOPER |
Beth W. Cooper |
November 7, 2019 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Net Income | $ 5,621 | $ 5,538 | $ 42,589 | $ 38,779 |
| Other Comprehensive Income (Loss), net of tax: | ||||
| Amortization of prior service cost, net of tax of $(5), $(5), $(15) and $(16), respectively | (14) | (14) | (43) | (42) |
| Net gain, net of tax of $39, $38, $125 and $118, respectively | 114 | 100 | 355 | 317 |
| Cash Flow Hedges, net of tax: | ||||
| Unrealized gain (loss) on commodity contract cash flow hedges, net of tax of $152, $257, $496 and $(70), respectively | 324 | 644 | 1,193 | (83) |
| Total Other Comprehensive Income, net of tax | 424 | 730 | 1,505 | 192 |
| Comprehensive Income | $ 6,045 | $ 6,268 | $ 44,094 | $ 38,971 |
Summary of Accounting Policies (Policies) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2018. In the opinion of management, these financial statements reflect all adjustments that are necessary for a fair presentation of our results of operations, financial position and cash flows for the interim periods presented. Where necessary to improve comparability, prior period amounts have been changed to conform to current period presentation. Beginning in the third quarter of 2019, management began executing a strategy to sell the operating assets of PESCO. In connection with this strategy, during the third quarter of 2019, we reached agreements with three entities to sell PESCO's assets and contracts. Two transactions closed in October 2019 and one transaction closed in November 2019 with subsequent closings scheduled for December 2019 and January 2020. As a result of the sale, we are fully exiting the natural gas marketing business. Accordingly, PESCO’s historical financial results are reflected in our condensed consolidated financial statements as discontinued operations, which required retrospective application to financial information for all periods presented. Refer to Note 3, Discontinued Operations for further information. 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. Except for the completion of the sale of certain PESCO's assets and contracts on October 1, 2019, as discussed in Note 3, Discontinued Operations and the settlement of Chesapeake Pension Plan obligations, see Note 10, Employee Benefit Plans, no events have occurred subsequent to the balance sheet date that would require recognition or disclosure in the condensed consolidated financial statements. We have evaluated subsequent events for recognition or disclosure through November 6, 2019, the date the financial statements were available to be issued. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Marlin Gas Transport and Ohl Fuel Oil Acquisitions In December 2018, Marlin Gas Services acquired certain operating assets of Marlin Gas Transport. The acquisition allows us to offer solutions to supply interruption scenarios and other situations where pipeline supplies are unavailable or inadequate to meet customer requirements. In December 2018, Sharp acquired certain propane operating assets and customers of R. F. Ohl Fuel Oil, Inc. ("Ohl"), which provides propane distribution service to approximately 2,500 residential and commercial customers in Pennsylvania. We accounted for the purchases of the operating assets of Marlin Gas Transport and Ohl, which totaled approximately $18.4 million, as business combinations within our Unregulated Energy segment. Goodwill of $4.8 million, related to the Marlin Gas Transport acquisition, and $1.5 million, associated with the Ohl acquisition, were initially recorded at the close of these transactions. In 2019, we recorded a reduction to the purchase price for Ohl of $0.2 million upon completing our inspection of the assets purchased. The purchase price adjustment was recorded as a reduction in our property, plant and equipment balance. The amounts recorded in conjunction with these acquisitions are preliminary and subject to adjustment based on additional valuations performed during the measurement period. Due to the timing of these acquisitions, the revenue and operating income from these acquisitions in 2018 were immaterial. For the quarter and nine months ended September 30, 2019, these acquisitions generated the following operating revenue and income:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FASB Statements and Other Authoritative Pronouncements | FASB Statements and Other Authoritative Pronouncements Recently Adopted Accounting Standards Leases (ASC 842) - In February 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. The standard establishes a right of use model that requires a lessee to recognize a right of use asset and lease liability for all leases with a term greater than 12 months. The update also expands the required quantitative and qualitative disclosures surrounding leases. ASC 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; and ASU No. 2019-01, Codification Improvements. We adopted ASU 2016-02 and the related amendments on January 1, 2019, and used the optional transition method for all existing leases. The optional transition method enabled us to adopt the new standard as of the beginning of the period of adoption and did not require restatement of prior period financial information. As a result, prior period financial information was not recast and continues to be reported under the accounting guidance effective during those periods. At adoption, we elected the following practical expedients: (1) the ‘package of practical expedients,’ pursuant to which we did not need to reassess our prior conclusions about lease identification, lease classification and initial direct costs, (2) the ‘use-of-hindsight’ practical expedient, which allowed us to use hindsight in assessing impairment of our existing land easements, (3) the creation of an accounting policy for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term, and (4) the aggregation, rather than separation, of the lease and non-lease components for all leases. See Note 16, Leases, for additional information with respect to the impact of the adoption of the lease accounting guidance and the disclosures required by ASU 2016-02 and the related amendments. 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. We adopted ASU 2018-07 on January 1, 2019. Implementation of this new standard did not have a material impact on our financial position or results of operations. Recent Accounting Standards Yet to be Adopted Financial Instruments - Credit Losses (ASC 326) - In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which changes how entities account for credit losses for most financial assets and certain other instruments, and subsequent guidance which served to clarify or amend the original standard. ASU 2016-13 and the related amendments require entities to estimate lifetime expected credit losses for trade receivables and to provide additional disclosure related to credit losses. ASU 2016-13 will be effective for our annual and interim financial statements beginning in January 1, 2020 and is not expected to have a material impact on our financial position or results of operations. 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, and is not expected to have a material impact on our financial position or results of operations. Fair Value Measurement (ASC 820) - In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies and adds certain disclosure requirements on fair value measurements in ASC 820. ASU 2018-13 will be effective for our annual and interim financial statements beginning January 1, 2020 and, since the changes only impact disclosures, will not have a material impact on our financial position or results of operations.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments | Derivative Instruments We use derivative and non-derivative contracts to 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 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 September 30, 2019, our natural gas and electric distribution operations did not have any outstanding derivative contracts. PESCO's Derivative Instruments As discussed in Note 3, Discontinued Operations, we reached an agreement to sell a majority of PESCO's operations to UET, NJRES and Gas South. The sale of assets and contracts to UET and NJRES closed on October 1, 2019. In anticipation of the consummation of the sale to UET and NJRES, the financial and commodity contracts sold were novated prior to the close of sale. At September 30, 2019, PESCO's natural gas futures contracts were primarily associated with the purchase and sale of natural gas for the producer services portfolio. We are actively marketing PESCO’s producer services portfolio and are targeting a sale by December 31, 2019. At September 30, 2019 and December 31, 2018, the fair value of PESCO's derivative assets was $3.2 million and $13.1 million, respectively. At September 30, 2019 and December 31, 2018, the fair value of PESCO's derivative liabilities was $0.9 million and $13.3 million, respectively. These amounts are reflected as assets and liabilities held for sale in the condensed consolidated balance sheets. The gains and losses associated with PESCO's financial instruments are reflected as discontinued operations in the condensed consolidated statements of income. Volume of Derivative Activity As of September 30, 2019, our financial instruments were comprised of both long and short commodity positions. A long position is a contract to purchase the commodity and a short position is a contract to sell the commodity. The volume of our open long/(short) commodity derivative contracts were as follows:
Sharp entered into futures and swap agreements to mitigate the risk of fluctuations in wholesale propane index prices associated with the propane volumes expected to be purchased during the heating season. Under the futures and swap agreements, Sharp will receive the difference between: (i) the index prices (Mont Belvieu prices in August 2018 through March 2023), and (ii) the per gallon propane swap prices, to the extent the index prices exceed the contracted prices. If the index prices are lower than the swap prices, Sharp will pay the difference. We designated and accounted for propane swaps as cash flows hedges. The change in the fair value of the swap agreements is recorded as unrealized gain (loss) in other comprehensive income (loss) and later recognized in the statement of income in the same period and in the same line item as the hedged transaction. We expect to reclassify approximately $1.7 million from accumulated other comprehensive loss to earnings during the next 12-month period ended September 30, 2020. Broker Margin Futures exchanges have contract specific margin requirements that require the posting of cash or cash equivalents relating to traded contracts. Margin requirements consist of initial margin that is posted upon the initiation of a position, maintenance margin that is usually expressed as a percent of initial margin, and variation margin that fluctuates based on the daily MTM relative to maintenance margin requirements. We currently maintain a broker margin account for Sharp, and prior to September 30, 2019, we also maintained a broker margin account for PESCO. The balances related to the margin accounts are as follows:
Financial Statements Presentation 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. PESCO's derivatives assets and derivative liabilities are presented as assets or liabilities held for sale in our condensed consolidated balance sheets. The fair values of the derivative contracts recorded in the condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018, are as follows:
The effects of gains and losses from derivative instruments on the condensed consolidated financial statements are as follows:
Gains and losses associated with PESCO are presented in discontinued operations in the condensed consolidated statements of income. As of September 30, 2019, the following amounts were recorded in the condensed consolidated balance sheets related to fair value hedges:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments Volume of Derivative Activity (Details) - Sharp Energy Inc [Member] gal in Millions, $ in Millions |
9 Months Ended |
|---|---|
|
Sep. 30, 2019
USD ($)
gal
| |
| Derivative [Line Items] | |
| Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ | $ (1.7) |
| Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months |
| Swap [Member] | |
| Derivative [Line Items] | |
| Derivative, Nonmonetary Notional Amount, Volume | gal | 11.4 |
Investments - Additional Information (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
| Investments, Debt and Equity Securities [Abstract] | ||||
| Unrealized gain (loss), net of other expenses | $ (100,000) | $ 300,000 | $ 1,000,000.0 | $ 400,000 |
Revenue Recognition Contract Balances with Customers (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
|
| Revenue from Contract with Customer [Abstract] | |||||
| Receivables from Customers | $ 33,205 | $ 33,205 | $ 52,140 | ||
| Contract with Customer, Asset, Net, Current | 18 | 18 | |||
| Contract with Customer, Asset, Net, Noncurrent | 3,255 | 3,255 | 2,614 | ||
| Contract with Customer, Liability, Current | 774 | 774 | $ 480 | ||
| Increase (Decrease) in Receivables | (18,935) | ||||
| Increase (Decrease) in Other Current Assets | 18 | ||||
| Increase (Decrease) in Other Noncurrent Assets | 641 | ||||
| Increase (Decrease) in Other Current Liabilities | 294 | ||||
| Contract with Customer, Liability, Revenue Recognized | $ 200 | $ 100 | $ 700 | $ 400 | |
Long-Term Debt - Outstanding Long-Term Debt (Detail) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
||
|---|---|---|---|---|
| Debt Instrument [Line Items] | ||||
| Total long-term debt | $ (452,100) | $ (327,200) | ||
| Debt Instrument, Unused Borrowing Capacity, Amount | 250,000 | |||
| Finance lease obligation | 0 | 1,310 | ||
| Total Long-term debt | 451,410 | 327,955 | ||
| Less: current maturities | (75,600) | (11,935) | ||
| Less: debt issuance costs | 679 | 567 | ||
| Total long-term debt, net of current maturities | 375,810 | 316,020 | ||
| Aggregated Unfunded Commitments [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | 0 | |||
| New York Life [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | (100,000) | |||
| 9.08% bond, due June 1, 2022 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | [1] | (7,989) | (7,986) | |
| 5.50% note, due October 12, 2020 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | (4,000) | (4,000) | ||
| 5.93% note, due October 31, 2023 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | (13,500) | (15,000) | ||
| 5.68% note, due June 30, 2026 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | (20,300) | (23,200) | ||
| 6.43% note, due May 2, 2028 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | (6,300) | (7,000) | ||
| 3.73% note, due December 16, 2028 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | (20,000) | (20,000) | ||
| 3.88% note, due May 15, 2029 [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) | (50,000) | ||
| Uncollateralized Senior Note Due November Two Thousand Thirty Eight [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | (50,000) | (50,000) | ||
| Uncollateralized Senior Note Due August Two Thousand Thirty Nine [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | (100,000) | |||
| Term Note Due January Two Thousand Twenty [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | (30,000) | (30,000) | ||
| Term Note Due February Two Thousand Twenty [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | (30,000) | |||
| Promissory note [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | 0 | $ (26) | ||
| Aggregate Shelf Agreements [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | (270,000) | |||
| Aggregate Shelf Agreements [Member] | Maximum [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Debt Instrument, Face Amount | 520,000 | |||
| Prudential [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | (170,000) | |||
| Debt Instrument, Unused Borrowing Capacity, Amount | 50,000 | |||
| Prudential [Member] | Maximum [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Debt Instrument, Face Amount | 220,000 | |||
| MetLife [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Debt Instrument, Unused Borrowing Capacity, Amount | 150,000 | |||
| MetLife [Member] | Maximum [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Debt Instrument, Face Amount | 150,000 | |||
| New York Life [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Debt Instrument, Face Amount | 100,000 | |||
| Debt Instrument, Unused Borrowing Capacity, Amount | 50,000 | |||
| New York Life [Member] | Maximum [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Debt Instrument, Face Amount | $ 150,000 | |||
| ||||
Leases Leases - Lease Cost Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|||
| Lease, Cost [Abstract] | ||||||
| Operating Lease Term | 12 months | |||||
| Operating Lease, Cost | [1] | $ 638 | $ 1,055 | $ 1,926 | $ 2,860 | |
| Finance Lease, Right-of-Use Asset, Amortization | 364 | 650 | 1,083 | |||
| Finance Lease, Interest Expense | 11 | 5 | 42 | |||
| Lease, Cost | $ 638 | $ 1,430 | $ 2,581 | $ 3,985 | ||
| ||||||
Employee Benefit Plans (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
||||
| Defined Benefit Plan Disclosure [Line Items] | ||||||||
| Expected Amortization Of Pre Merger Regulatory Asset | $ 600 | |||||||
| Amortization of prior service cost | $ (19) | $ (19) | (58) | $ (58) | ||||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 257 | 208 | 793 | 680 | ||||
| Defined Benefit Plan Amounts Recognized Gain (Loss) | 238 | 189 | 735 | 622 | ||||
| Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | [1] | 134 | 119 | 422 | 377 | |||
| Defined Benefit Plan Amounts Recognized From Regulatory Asset | 104 | 70 | 313 | 245 | ||||
| Chesapeake Pension Plan [Member] | ||||||||
| Defined Benefit Plan Disclosure [Line Items] | ||||||||
| Defined Benefit Plan, Plan Assets, Contributions by Employer | 1,100 | |||||||
| Interest cost | 104 | 94 | 314 | 288 | ||||
| Expected return on plan assets | (127) | (131) | (381) | (406) | ||||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 101 | 82 | 304 | 258 | ||||
| Net periodic cost (benefit) | [1] | 78 | 45 | 237 | 140 | |||
| Total periodic cost | 78 | 45 | 237 | 140 | ||||
| Defined Benefit Plan Amounts Recognized Gain (Loss) | 101 | 82 | 304 | 258 | ||||
| Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | [1] | 101 | 82 | 304 | 258 | |||
| Florida Public Utilities Company Pension Plan [Member] | ||||||||
| Defined Benefit Plan Disclosure [Line Items] | ||||||||
| Defined Benefit Plan, Plan Assets, Contributions by Employer | 300 | 900 | ||||||
| Expected Amortization Of Pre Merger Regulatory Asset | $ 600 | |||||||
| Interest cost | 614 | 570 | 1,844 | 1,754 | ||||
| Expected return on plan assets | (693) | (770) | (2,079) | (2,318) | ||||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 128 | 86 | 386 | 302 | ||||
| Net periodic cost (benefit) | [1] | 49 | (114) | 151 | (262) | |||
| Amortization of pre-merger regulatory asset | 162 | 191 | 543 | 571 | ||||
| Total periodic cost | 211 | 77 | 694 | 309 | ||||
| Defined Benefit Plan Amounts Recognized Gain (Loss) | 128 | 86 | 386 | 302 | ||||
| Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | [1] | 24 | 16 | 73 | 57 | |||
| Defined Benefit Plan Amounts Recognized From Regulatory Asset | 104 | 70 | 313 | 245 | ||||
| Chesapeake Pension SERP [Member] | ||||||||
| Defined Benefit Plan Disclosure [Line Items] | ||||||||
| Interest cost | 16 | 21 | 58 | 63 | ||||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 17 | 25 | 68 | 75 | ||||
| Net periodic cost (benefit) | [1] | 33 | 46 | 126 | 138 | |||
| Defined Benefit Plan, Benefit Obligation, Payment for Settlement | 58 | 58 | ||||||
| Total periodic cost | 91 | 46 | 184 | 138 | ||||
| Defined Benefit Plan Amounts Recognized Gain (Loss) | 17 | 25 | 68 | 75 | ||||
| Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | [1] | 17 | 25 | 68 | 75 | |||
| Chesapeake Postretirement Plan [Member] | ||||||||
| Defined Benefit Plan Disclosure [Line Items] | ||||||||
| Interest cost | 10 | 10 | 29 | 29 | ||||
| Amortization of prior service cost | (19) | (19) | (58) | (58) | ||||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 11 | 15 | 35 | 45 | ||||
| Net periodic cost (benefit) | [1] | 2 | 6 | 6 | 16 | |||
| Total periodic cost | 2 | 6 | 6 | 16 | ||||
| Defined Benefit Plan Amounts Recognized Gain (Loss) | (8) | (4) | (23) | (13) | ||||
| Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | [1] | (8) | (4) | (23) | (13) | |||
| Florida Public Utilities Company Medical Plan [Member] | ||||||||
| Defined Benefit Plan Disclosure [Line Items] | ||||||||
| Interest cost | 12 | 12 | 36 | 38 | ||||
| Net periodic cost (benefit) | [1] | 12 | 12 | 36 | 38 | |||
| Amortization of pre-merger regulatory asset | 2 | 2 | 6 | 6 | ||||
| Total periodic cost | $ 14 | $ 14 | $ 42 | $ 44 | ||||
| ||||||||
Segment Information - Schedule of Segment Reporting Information by Segment (Detail) |
3 Months Ended | 9 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
||||||
| Segment Reporting Information [Line Items] | ||||||||||
| Number of Reportable Segments | 2 | |||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||||
| Total operating revenues, unaffiliated customers | $ 92,626,000 | $ 93,400,000 | $ 347,630,000 | $ 356,102,000 | ||||||
| Operating Income | ||||||||||
| Total operating income | 14,358,000 | 12,879,000 | 76,644,000 | 65,968,000 | ||||||
| Other expense, net | (350,000) | (4,000) | (729,000) | (168,000) | ||||||
| Interest | 5,403,000 | 4,357,000 | 16,583,000 | 11,764,000 | ||||||
| Income Before Income Taxes | 8,605,000 | 8,518,000 | 59,332,000 | 54,036,000 | ||||||
| Income Taxes on Continuing Operations | 2,360,000 | 2,428,000 | 15,355,000 | 14,918,000 | ||||||
| Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 6,245,000 | 6,090,000 | 43,977,000 | 39,118,000 | ||||||
| Net Income | 5,621,000 | 5,538,000 | 42,589,000 | 38,779,000 | ||||||
| Identifiable Assets | ||||||||||
| Total identifiable assets | 1,714,240,000 | 1,714,240,000 | $ 1,693,671,000 | |||||||
| Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | (624,000) | (552,000) | (1,388,000) | (339,000) | ||||||
| Regulated Energy [Member] | ||||||||||
| Operating Income | ||||||||||
| Total operating income | 17,540,000 | 15,915,000 | 65,310,000 | 56,930,000 | ||||||
| Identifiable Assets | ||||||||||
| Total identifiable assets | 1,384,057,000 | 1,384,057,000 | 1,345,805,000 | |||||||
| Unregulated Energy [Member] | ||||||||||
| Operating Income | ||||||||||
| Total operating income | (3,168,000) | (3,090,000) | 11,316,000 | 10,519,000 | ||||||
| Identifiable Assets | ||||||||||
| Total identifiable assets | [1] | 250,849,000 | 250,849,000 | 245,702,000 | ||||||
| Other [Member] | ||||||||||
| Identifiable Assets | ||||||||||
| Total identifiable assets | 51,000,000 | 51,000,000 | 41,821,000 | |||||||
| Other and eliminations [Member] | ||||||||||
| Operating Income | ||||||||||
| Total operating income | (14,000) | 54,000 | 18,000 | (1,481,000) | ||||||
| Continuing Operations [Member] | ||||||||||
| Identifiable Assets | ||||||||||
| Total identifiable assets | 1,685,906,000 | 1,685,906,000 | $ 1,633,328,000 | |||||||
| Operating Revenues, Unaffiliated Customers [Member] | ||||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||||
| Total operating revenues, unaffiliated customers | 92,626,000 | 93,400,000 | 347,630,000 | 356,102,000 | ||||||
| Operating Revenues, Unaffiliated Customers [Member] | Regulated Energy [Member] | ||||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||||
| Total operating revenues, unaffiliated customers | 74,027,000 | 72,187,000 | 249,978,000 | 251,259,000 | ||||||
| Operating Revenues, Unaffiliated Customers [Member] | Unregulated Energy [Member] | ||||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||||
| Total operating revenues, unaffiliated customers | 18,599,000 | 21,213,000 | 97,652,000 | 104,843,000 | ||||||
| Intersegment Revenues [Member] | ||||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||||
| Total operating revenues, unaffiliated customers | [2] | 4,367,000 | 3,928,000 | 13,351,000 | 12,864,000 | |||||
| Intersegment Revenues [Member] | Regulated Energy [Member] | ||||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||||
| Total operating revenues, unaffiliated customers | [2] | 553,000 | 583,000 | 1,623,000 | 1,408,000 | |||||
| Intersegment Revenues [Member] | Unregulated Energy [Member] | ||||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||||
| Total operating revenues, unaffiliated customers | [2] | 3,682,000 | 3,210,000 | 11,332,000 | 10,935,000 | |||||
| Intersegment Revenues [Member] | Other [Member] | ||||||||||
| Operating Revenues, Unaffiliated Customers | ||||||||||
| Total operating revenues, unaffiliated customers | [2] | 132,000 | 135,000 | 396,000 | 521,000 | |||||
| Retained Earnings [Member] | ||||||||||
| Operating Income | ||||||||||
| Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 6,245,000 | 6,090,000 | 43,977,000 | 39,118,000 | ||||||
| Net Income | $ 5,621,000 | $ 5,538,000 | $ 42,589,000 | $ 38,779,000 | ||||||
| ||||||||||
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Segment Reporting Information by Segment | The following table presents financial information about our reportable segments:
(1) All significant intersegment revenues are billed at market rates and have been eliminated from consolidated operating revenues.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 nine months ended September 30, 2019 and 2018:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Awards to non-employee directors [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares awarded to non-employee directors [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Share-based Compensation, Activity |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 nine months ended September 30, 2019:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rates and Other Regulatory Activities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Regulated Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Public Utilities Disclosure [Text Block] | 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 (excluding cost of service) by the Florida PSC. Delaware Effect of the TCJA on Customers: On January 31, 2019, the Delaware PSC approved the as-filed Delaware Division Delivery Service Rates reflecting the impact of the TCJA. The new rates went into effect March 1, 2019. The refunds, which were retroactive to February 2018, were completed prior to the mandated deadline of June 30, 2019. The order also provided for a line item billing credit that went into effect on April 1, 2019, for the return of the excess accumulated deferred income taxes ("ADIT"). Additional information on the TCJA impact is included in the table at the end of this Note 5, Rates and Other Regulatory Activities. CGS: In August 2019, we filed with the Delaware PSC an application seeking an order that will establish the regulatory accounting treatment and valuation methodology for the acquisition of propane CGS owned by our affiliate, Sharp and the conversion of the CGS to natural gas service. We propose to acquire each CGS one at a time and to pay replacement cost for each CGS system. In addition, we are requesting authorization to pay for and capitalize the CGS residents’ behind-the-meter conversion costs. Our existing natural gas customers will be protected against subsidizing the acquisitions and conversions of the CGS systems because we will complete only those systems that meet our economic test. On September 26, 2019, the Delaware PSC issued an order to open a docket for the purpose of reviewing our application and to conduct evidentiary hearings on the matter. Florida Electric Limited Proceeding-Storm Recovery (Pre-Hurricane Michael): In February 2018, FPU 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 the 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, at the time of this filing, had a deficit of $0.8 million. This matter went to hearing in December 2018 and was subsequently approved at the March 5, 2019 Agenda with the Final Order issued on March 25, 2019. FPU received approval to begin a surcharge of $1.54 per 1,000-kilowatt hour on customer bills for two years beginning in April 2019, to recover storm-related costs and replenish the storm reserve. Hurricane Michael: In October 2018, Hurricane Michael passed through FPU's electric distribution operation's service territory in Northwest Florida. The hurricane caused widespread and severe damage to FPU's infrastructure resulting in 100 percent of its customers in the Northwest Florida service territory losing electrical service. FPU, after exerting extraordinary hurricane restoration efforts, restored service to those customers who were able to accept it. FPU expended more than $65.0 million to restore service, which has been recorded as new plant and equipment, charged against FPU’s accumulated depreciation or charged against FPU’s storm reserve. In conjunction with the hurricane-related expenditures, we executed two 13-month unsecured term loans as temporary financing, each in the amount of $30 million. The interest cost associated with these loans is the one-month LIBOR rate plus 75 points. One of the term loans was executed in December 2018; the other was executed in January 2019. In August 2019, FPU filed a limited proceeding requesting recovery of storm-related costs associated with Hurricane Michael (capital and expenses) through a change in base rates. FPU also requested treatment and recovery of certain storm-related costs as regulatory asset for items currently not allowed to be recovered through the storm reserve as well as the recovery of capital replaced as a result of the storm. Recovery of these costs includes a component of an overall return on capital additions and regulatory assets. In the fourth quarter of 2019, FPU along with the Office of Public Counsel in Florida, filed a joint motion with the Florida PSC to approve an interim rate increase, subject to refund, pending the final ruling on the recovery of the restoration costs incurred. The petition was approved by the Florida PSC on November 5, 2019 and interim rate increases will be effective January 2, 2020. While there is a short-term negative impact, the storm is not expected to have a significant impact on our financial results going forward, assuming permanent recovery is granted through the regulatory process. Effect of the TCJA on Customers: In February 2018, the Florida PSC opened dockets to consider the impacts associated with the TCJA. In May 2018, FPU’s natural gas divisions filed petitions and supporting testimony regarding the disposition of the related impacts of the TCJA. Hearings on this matter took place in November 2018, and the staff's recommendation was approved by the Florida PSC at the February 5, 2019 Agenda. Final orders were issued on February 25, 2019. Staff’s recommendations are summarized in the table at the end of this Note 5, Rates and Other Regulatory Activities. Imbalance Petition: In February 2019, FPU filed a petition, with the Florida PSC, to modify the pool manager cash out tiers and respective cash out rates. With this petition, FPU further facilitates consistency across the Florida business units and eliminates the unintentional arbitrage opportunity created by the tariff. The petition does not have a financial impact for FPU, and it will benefit customers by lowering costs. This petition was approved by the Florida PSC at the April 2, 2019 Agenda. Electric Depreciation Study: In September 2019, FPU filed a petition, with the Florida PSC, for approval of its consolidated electric depreciation rates. The new rates will be effective January 1, 2020. The petition is currently scheduled for review for approval at the Florida PSC February 2020 Agenda. Natural Gas Depreciation Study: In March 2019, FPU filed a petition, with the Florida PSC, for approval of its consolidated natural gas depreciation rates. The petition was approved by the Florida PSC at Agenda on October 3, 2019. The new rates were effective retroactive to January 1, 2019, and are expected to decrease depreciation expense by approximately $0.9 million annually. Auburndale Project: In June 2019, Peninsula Pipeline filed with the Florida PSC for approval of its Transportation Service Agreement with the Florida Division of Chesapeake Utilities. Peninsula Pipeline will purchase existing pipeline owned by the Florida Division of Chesapeake Utilities and Calpine and construct pipeline facilities in Polk County, Florida. Peninsula Pipeline will provide transportation service to the Florida Division of Chesapeake Utilities increasing both delivery capacity and downstream pressure as well as introducing a secondary source of natural gas for the Florida Division of Chesapeake Utilities' distribution system. The petition was approved by the Florida PSC at the August 6, 2019 Agenda. The project was placed in service in the third quarter of 2019. Palm Beach Expansion Project: In June 2019, Peninsula Pipeline filed with the Florida PSC for approval of its Transportation Service Agreement with FPU. Peninsula Pipeline will construct several new interconnection points and pipeline expansions in Palm Beach County, Florida, which will enable FPU to serve an industrial research park and several new residential developments. Peninsula Pipeline will provide transportation service to FPU, increasing reliability, system pressure as well as introducing diversity in fuel source for natural gas to serve the increased demand in these areas. The petition was approved by the Florida PSC at the August 6, 2019 Agenda. Interim services were offered beginning in the third quarter of 2019. Callahan Pipeline, Nassau County: On July 19, 2019, Peninsula Pipeline filed a petition for approval of the firm transportation service agreement with FPU as well as the restructuring of the business and operational agreements between Peoples Gas ("PGS"), FPU and Seacoast Gas Transmission. Peninsula Pipeline will construct and jointly own 26 miles of 16 inch steel pipeline with Seacoast Gas Transmission and interconnect to the Cypress Pipeline interstate system in western Nassau County. The Callahan pipeline will terminate into the existing Peninsula Pipeline-PGS jointly owned pipeline, which serves Amelia Island and the PGS distribution system. Callahan pipeline will enhance FPU’s ability to expand service into Nassau County and will enable PGS to enhance its system pressure and reliability of its service in Duval County. This petition is currently scheduled for review for approval by the Florida PSC at the December 3, 2019 Agenda. Maryland Division and Sandpiper There were no material regulatory matters during the quarter. Eastern Shore Del-Mar Energy Pathway Project: In September 2018, Eastern Shore filed a Certificate Application with the FERC, requesting authorization to construct and operate the Del-Mar Energy Pathway project, which will provide an additional 14,300 Dts/d of firm service to four customers. Facilities to be constructed include six miles of pipeline looping in Delaware; 13 miles of new mainline extension in Sussex County, Delaware and Somerset County, Maryland; and new pressure control and delivery stations in these counties. The benefits of this project include: (i) additional natural gas transmission pipeline infrastructure in eastern Sussex County, Delaware, and (ii) extension of Eastern Shore’s pipeline system, for the first time, into Somerset County, Maryland. During the fourth quarter of 2018, the FERC held a full project area scoping meeting in Sussex County, Delaware and issued a Notice of Schedule for Environmental Review. The Environmental Assessment for the Del-Mar Energy Pathway project was issued on April 1, 2019. As of the date of this filing, final FERC authorization is still pending. Renewable Natural Gas Tariff: On October 16, 2019, Eastern Shore filed an application with the FERC to include renewable natural gas (biogas) utilization and standards in its tariff with a proposed effective date of November 1, 2019. Eastern Shore is proposing changes to its gas quality specifications that will enable it to accommodate renewable natural gas at various receipt points on its system. Changes to the gas quality specifications will ensure interchangeability of renewable natural gas with the natural gas currently delivered to Eastern Shore. This application is expected to be approved by the FERC in 30 days absent opposing comments. Summary TCJA Table The following table summarizes the TCJA impact on our regulated businesses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2018. In the opinion of management, these financial statements reflect all adjustments that are necessary for a fair presentation of our results of operations, financial position and cash flows for the interim periods presented. Where necessary to improve comparability, prior period amounts have been changed to conform to current period presentation. Beginning in the third quarter of 2019, management began executing a strategy to sell the operating assets of PESCO. In connection with this strategy, during the third quarter of 2019, we reached agreements with three entities to sell PESCO's assets and contracts. Two transactions closed in October 2019 and one transaction closed in November 2019 with subsequent closings scheduled for December 2019 and January 2020. As a result of the sale, we are fully exiting the natural gas marketing business. Accordingly, PESCO’s historical financial results are reflected in our condensed consolidated financial statements as discontinued operations, which required retrospective application to financial information for all periods presented. Refer to Note 3, Discontinued Operations for further information. 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. Except for the completion of the sale of certain PESCO's assets and contracts on October 1, 2019, as discussed in Note 3, Discontinued Operations and the settlement of Chesapeake Pension Plan obligations, see Note 10, Employee Benefit Plans, no events have occurred subsequent to the balance sheet date that would require recognition or disclosure in the condensed consolidated financial statements. We have evaluated subsequent events for recognition or disclosure through November 6, 2019, the date the financial statements were available to be issued. Marlin Gas Transport and Ohl Fuel Oil Acquisitions In December 2018, Marlin Gas Services acquired certain operating assets of Marlin Gas Transport. The acquisition allows us to offer solutions to supply interruption scenarios and other situations where pipeline supplies are unavailable or inadequate to meet customer requirements. In December 2018, Sharp acquired certain propane operating assets and customers of R. F. Ohl Fuel Oil, Inc. ("Ohl"), which provides propane distribution service to approximately 2,500 residential and commercial customers in Pennsylvania. We accounted for the purchases of the operating assets of Marlin Gas Transport and Ohl, which totaled approximately $18.4 million, as business combinations within our Unregulated Energy segment. Goodwill of $4.8 million, related to the Marlin Gas Transport acquisition, and $1.5 million, associated with the Ohl acquisition, were initially recorded at the close of these transactions. In 2019, we recorded a reduction to the purchase price for Ohl of $0.2 million upon completing our inspection of the assets purchased. The purchase price adjustment was recorded as a reduction in our property, plant and equipment balance. The amounts recorded in conjunction with these acquisitions are preliminary and subject to adjustment based on additional valuations performed during the measurement period. Due to the timing of these acquisitions, the revenue and operating income from these acquisitions in 2018 were immaterial. For the quarter and nine months ended September 30, 2019, these acquisitions generated the following operating revenue and income:
FASB Statements and Other Authoritative Pronouncements Recently Adopted Accounting Standards Leases (ASC 842) - In February 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. The standard establishes a right of use model that requires a lessee to recognize a right of use asset and lease liability for all leases with a term greater than 12 months. The update also expands the required quantitative and qualitative disclosures surrounding leases. ASC 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; and ASU No. 2019-01, Codification Improvements. We adopted ASU 2016-02 and the related amendments on January 1, 2019, and used the optional transition method for all existing leases. The optional transition method enabled us to adopt the new standard as of the beginning of the period of adoption and did not require restatement of prior period financial information. As a result, prior period financial information was not recast and continues to be reported under the accounting guidance effective during those periods. At adoption, we elected the following practical expedients: (1) the ‘package of practical expedients,’ pursuant to which we did not need to reassess our prior conclusions about lease identification, lease classification and initial direct costs, (2) the ‘use-of-hindsight’ practical expedient, which allowed us to use hindsight in assessing impairment of our existing land easements, (3) the creation of an accounting policy for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term, and (4) the aggregation, rather than separation, of the lease and non-lease components for all leases. See Note 16, Leases, for additional information with respect to the impact of the adoption of the lease accounting guidance and the disclosures required by ASU 2016-02 and the related amendments. 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. We adopted ASU 2018-07 on January 1, 2019. Implementation of this new standard did not have a material impact on our financial position or results of operations. Recent Accounting Standards Yet to be Adopted Financial Instruments - Credit Losses (ASC 326) - In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which changes how entities account for credit losses for most financial assets and certain other instruments, and subsequent guidance which served to clarify or amend the original standard. ASU 2016-13 and the related amendments require entities to estimate lifetime expected credit losses for trade receivables and to provide additional disclosure related to credit losses. ASU 2016-13 will be effective for our annual and interim financial statements beginning in January 1, 2020 and is not expected to have a material impact on our financial position or results of operations. 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, and is not expected to have a material impact on our financial position or results of operations. Fair Value Measurement (ASC 820) - In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies and adds certain disclosure requirements on fair value measurements in ASC 820. ASU 2018-13 will be effective for our annual and interim financial statements beginning January 1, 2020 and, since the changes only impact disclosures, will not have a material impact on our financial position or results of operations.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholder's Equity - Accumulated Other Comprehensive Income (Loss) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Income (Loss) | Stockholder's Equity Accumulated Other Comprehensive Loss Defined benefit pension and postretirement plan items, unrealized gains (losses) of our propane swap agreements and natural gas swaps and futures contracts, designated as commodity contracts cash flow hedges, are the components of our accumulated other comprehensive loss. The following tables present the changes in the balance of accumulated other comprehensive (loss)/income as of September 30, 2019 and 2018. 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 nine months ended September 30, 2019 and 2018. 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 10, Employee Benefit Plans, for additional details. (2) These amounts are included in the effects of gains and losses from derivative instruments. See Note 13, Derivative Instruments, for additional details. (3) PESCO's results are reflected as discontinued operations in our condensed consolidated statements of income. Amortization of defined benefit pension and postretirement plan items is included in other expense, net gains and losses on propane swap agreements, call options and natural gas futures contracts are included in cost of sales in the accompanying condensed consolidated statements of income. The income tax benefit is included in income tax expense in the accompanying condensed consolidated statements of income.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions |
Sep. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Fair Value Disclosures [Abstract] | ||
| Long-term debt including current maturities | $ 452.1 | $ 327.2 |
| Fair value of long-term debt | $ 473.4 | $ 323.8 |
Leases Schedule of Future Minimum Rental Payment for Operating Leases (Details) $ in Thousands |
Sep. 30, 2019
USD ($)
|
|---|---|
| Schedule of Future Minimum Rental Payment for Operating Leases [Abstract] | |
| Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | $ 2,335 |
| Operating Leases, Future Minimum Payments, Due in Two Years | 1,993 |
| Operating Leases, Future Minimum Payments, Due in Three Years | 1,761 |
| Operating Leases, Future Minimum Payments, Due in Four Years | 1,689 |
| Operating Leases, Future Minimum Payments, Due in Five Years | 1,642 |
| Operating Leases, Future Minimum Payments, Due Thereafter | 5,397 |
| Operating Leases, Future Minimum Payments Due | $ 14,817 |
Leases (Details) |
9 Months Ended |
|---|---|
|
Sep. 30, 2019
yr
| |
| Lease Disclosure [Abstract] | |
| Effect of CPI Basis Point Change | 100 |
| Minimum Renewal Term Length in Years - Lessee | 1 |
| Maximum Renewal Term Length in Years - Lessee | 25 |
| Operating Lease Term | 12 months |
Leases Leases - Cash Flow Additional Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
|
| Leases - Cash Flow Additional Information [Abstract] | ||
| Operating Cash Flow from Operating Leases | $ 1,580 | $ 2,272 |
| Finance Lease, Interest Payment on Liability | 5 | 42 |
| Finance Lease, Principal Payments | $ 650 | $ 1,083 |
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2019 |
Dec. 31, 2018 |
|
| Defined Benefit Plan Disclosure [Line Items] | |||
| Expected pension and postretirement benefit costs | $ 1,300 | ||
| Expected amortization of pre merger regulatory asset | 600 | ||
| Payment for Pension and Other Postretirement Benefits | 100 | ||
| Florida Public Utilities Company Pension Plan [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Unamortized balance of regulatory asset | $ 600 | ||
| Contribution to pension plan | $ 300 | 900 | |
| Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 1,200 | 1,200 | |
| Chesapeake Pension Plan [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Contribution to pension plan | 1,100 | ||
| Chesapeake Pension SERP [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 400 | 400 | |
| Chesapeake Postretirement Plan [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 100 | 100 | |
| Florida Public Utilities Company Medical Plan [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 100 | $ 100 |
Stockholder's Equity - Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
| Beginning balance | $ (6,713) | $ (4,272) | ||
| Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1,700 | (1,126) | ||
| Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (275) | 1,318 | ||
| Net current-period other comprehensive income (loss) | $ 344 | $ 730 | 1,425 | 192 |
| Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | 0 | |||
| Ending balance | (5,403) | (4,987) | (5,403) | (4,987) |
| UnrealizedGainsLossesFromDefinedBenefitPensionAndPostretirementPlanItems [Member] | ||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
| Beginning balance | (5,928) | (4,743) | ||
| Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (80) | |||
| Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 312 | 275 | ||
| Net current-period other comprehensive income (loss) | 232 | 275 | ||
| Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (1,022) | |||
| Ending balance | (5,696) | (5,490) | (5,696) | (5,490) |
| Accumulated (Gain) Loss from Commodity Contracts Cash Flows Hedges [Member] | ||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
| Beginning balance | (785) | 471 | ||
| Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1,780 | (1,126) | ||
| Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (587) | 1,043 | ||
| Net current-period other comprehensive income (loss) | 1,193 | (83) | ||
| Prior Period Reclassification Adjustment | (115) | |||
| Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | 115 | |||
| Ending balance | $ 293 | $ 503 | 293 | 503 |
| AOCI Attributable to Parent [Member] | ||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
| Prior Period Reclassification Adjustment | $ (115) | |||
| Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ (907) | |||
Environmental Commitments and Contingencies Summary of Environmental Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||
| Environmental Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||
| Environmental Remedies [Table Text Block] |
|
||||||||||||||||||||||||
Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Investments schedule [Table Text Block] | The investment balances at September 30, 2019 and December 31, 2018, consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 nine months ended September 30, 2019 and 2018 are set forth in the following tables:
We expect to record pension and postretirement benefit costs of approximately $1.3 million for 2019. Included in these costs is approximately $0.6 million related to 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. As of September 30, 2019, a larger portion of the regulatory asset related primarily to the FPU Pension Plan was fully amortized. The unamortized balance of this regulatory asset was approximately $0.6 million at December 31, 2018. Excluding the service cost component, the other components of the net periodic costs have been recorded or reclassified to other expense, net in the condensed consolidated statements of income. 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. In connection with the lump sum distribution from the Chesapeake SERP in July 2019 and the related settlement accounting we re-measured the benefit obligation using a discount rate of three percent. We began executing a de-risking strategy for the Chesapeake Pension Plan. As a result, during the fourth quarter of 2019 we will purchase annuities for those retirees currently receiving monthly payments. We also offered lump-sum payments to our terminated vested employees. We will recognize the appropriate settlement accounting associated with retirees and terminated vested employees that are selecting lump sum payments in the fourth quarter of 2019. 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 and nine months ended September 30, 2019 and 2018:
(1) See Note 9, Stockholder's Equity. During the three and nine months ended September 30, 2019, we contributed approximately $1.0 million and $1.1 million, respectively, to the Chesapeake Pension Plan and approximately $0.3 million and $0.9 million, respectively, to the FPU Pension Plan. We expect to contribute a total of approximately $1.1 million and $1.2 million, respectively to the Chesapeake Pension Plan and FPU Pension Plans during 2019, 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 nine months ended September 30, 2019 were $0.1 million. There were immaterial cash benefits paid for the three months ended September 30, 2019. We expect to pay total cash benefits of approximately $0.4 million under the Chesapeake SERP in 2019. There were no cash benefits paid under the Chesapeake Postretirement Plan, for the three and nine months ended September 30, 2019. We estimate that approximately $0.1 million will be paid, primarily for medical claims under the Chesapeake Postretirement Plan in 2019. Cash benefits paid under the FPU Medical Plan, primarily for medical claims for the three and nine months ended September 30, 2019, were immaterial for each period. We estimate that approximately $0.1 million will be paid for such benefits under the FPU Medical Plan in 2019.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental Commitments and Contingencies |
9 Months Ended | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||
| 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. We have received approval for recovery of clean-up costs in rates for sites located in Salisbury, Maryland; Seaford, Delaware; and Winter Haven, Key West, Pensacola, Sanford and West Palm Beach, Florida. We are also in discussions with the Maryland Department of Environment ("MDE") regarding another former MGP site located in Cambridge, Maryland. As of September 30, 2019 and December 31, 2018, we had approximately $8.3 million and $9.1 million, respectively, in environmental liabilities related to FPU’s MGP sites in Key West, Pensacola, Sanford and West Palm Beach. FPU has approval to recover, from insurance and through customer rates, up to $14.0 million of its environmental costs related to its MGP sites. As of September 30, 2019 and December 31, 2018, we had recovered approximately $11.8 million and $11.5 million, respectively, leaving approximately $2.2 million and $2.5 million, respectively, 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:
|
||||||||||||||||||||||||
Calculation of Earnings Per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Calculation of Earnings Per Share | Calculation of Earnings Per Share
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
| Operating Revenues | ||||
| Regulated Energy | $ 74,580,000 | $ 72,770,000 | $ 251,601,000 | $ 252,667,000 |
| Unregulated Energy and other | 18,046,000 | 20,630,000 | 96,029,000 | 103,435,000 |
| Total Operating Revenues | 92,626,000 | 93,400,000 | 347,630,000 | 356,102,000 |
| Operating Expenses | ||||
| Regulated Energy cost of sales | 19,619,000 | 21,501,000 | 74,452,000 | 89,741,000 |
| Unregulated Energy and other cost of sales | 5,709,000 | 9,512,000 | 36,975,000 | 49,196,000 |
| Operations | 32,623,000 | 31,449,000 | 99,596,000 | 97,723,000 |
| Cost, Maintenance | 3,920,000 | 3,208,000 | 11,199,000 | 10,419,000 |
| Settlement Gain | 0 | 0 | (130,000) | (130,000) |
| Cost, Depreciation, Amortization and Depletion | 11,219,000 | 10,487,000 | 33,612,000 | 29,739,000 |
| Other taxes | 5,178,000 | 4,364,000 | 15,282,000 | 13,446,000 |
| Total Operating Expenses | 78,268,000 | 80,521,000 | 270,986,000 | 290,134,000 |
| Operating Income | 14,358,000 | 12,879,000 | 76,644,000 | 65,968,000 |
| Other expense, net | (350,000) | (4,000) | (729,000) | (168,000) |
| Interest charges | 5,403,000 | 4,357,000 | 16,583,000 | 11,764,000 |
| Income from Continuing Operations Before Income Taxes | 8,605,000 | 8,518,000 | 59,332,000 | 54,036,000 |
| Income Taxes on Continuing Operations | 2,360,000 | 2,428,000 | 15,355,000 | 14,918,000 |
| Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 6,245,000 | 6,090,000 | 43,977,000 | 39,118,000 |
| Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | (624,000) | (552,000) | (1,388,000) | (339,000) |
| Income from Continuing Operations | $ 5,621,000 | $ 5,538,000 | $ 42,589,000 | $ 38,779,000 |
| Weighted Average Common Shares Outstanding: | ||||
| Basic (shares) | 16,403,776 | 16,378,545 | 16,396,646 | 16,366,608 |
| Diluted (shares) | 16,453,867 | 16,428,439 | 16,444,231 | 16,416,255 |
| Basic Earnings Per Share of Common Stock: | ||||
| Income (Loss) from Continuing Operations, Per Basic Share | $ 0.38 | $ 0.37 | $ 2.68 | $ 2.39 |
| Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | (0.04) | (0.03) | (0.08) | (0.02) |
| Basic (in dollars per share) | 0.34 | 0.34 | 2.60 | 2.37 |
| Earnings Per Share, Diluted [Abstract] | ||||
| Income (Loss) from Continuing Operations, Per Diluted Share | 0.38 | 0.37 | 2.67 | 2.38 |
| Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | (0.04) | (0.03) | (0.08) | (0.02) |
| Diluted (in dollars per share) | $ 0.34 | $ 0.34 | $ 2.59 | $ 2.36 |
Summary of Accounting Policies Results of Operations for Acquisitions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition results [Table Text Block] | For the quarter and nine months ended September 30, 2019, these acquisitions generated the following operating revenue and income:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 three levels of the fair value hierarchy are the following:
Financial Assets and Liabilities Measured at Fair Value The following tables summarize 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 September 30, 2019 and December 31, 2018:
(1) PESCO's derivative assets and liabilities are included in assets held for sale or liabilities held for sale in the condensed consolidated balance sheets as of September 30, 2019. See Note 3, Discontinued Operations, for additional details.
(1) PESCO's derivative assets and liabilities are included in assets held for sale or liabilities held for sale in the condensed consolidated balance sheets as of December 31, 2018. See Note 3, Discontinued Operations, for additional details. The following table sets forth the summary of the changes in the fair value of Level 3 investments for the nine months ended September 30, 2019 and 2018:
Investment income from the Level 3 investments is reflected in other expense, (net) in the condensed consolidated statements of income. At September 30, 2019, 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 September 30, 2019, long-term debt which includes current maturities but excludes debt issuance costs, had a carrying value of approximately $452.1 million, compared to the estimated fair value of $473.4 million. At December 31, 2018, long-term debt, which includes the current maturities but excludes finance lease obligations and debt issuance costs, had a carrying value of approximately $327.2 million, compared to a fair value of approximately $323.8 million. The fair value was calculated using a discounted cash flow methodology that incorporates a market interest rate based on published corporate borrowing rates for debt instruments with similar terms and average maturities, and with adjustments for duration, optionality, and risk profile. The valuation technique used to estimate the fair value of long-term debt would be considered a Level 3 measurement.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Allowance for uncollectible accounts | $ 1,350 | $ 1,108 |
| 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 |
Fair Value of Financial Instruments - Summary of Changes in Fair Value of Investments (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
|
| Fair Value Disclosures [Abstract] | ||
| Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | $ (14) | $ (12) |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
| Beginning Balance | 686 | 648 |
| Purchases and adjustments | 123 | 64 |
| Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | (29) |
| Investment Income | 11 | 8 |
| Ending Balance | $ 806 | $ 679 |
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Sep. 30, 2019 |
Dec. 31, 2018 |
|
| Derivative [Line Items] | ||
| Energy Marketing Contracts Assets, Current | $ 0 | $ 82 |
| Energy Marketing Contract Liabilities, Current | (2,216) | (1,604) |
| Derivative, Amount of Hedged Item | 0 | 212 |
| Designated as Hedging Instrument [Member] | Mark To Market Energy Assets [Member] | Put Option [Member] | ||
| Derivative [Line Items] | ||
| Energy Marketing Contracts Assets, Current | 0 | 71 |
| Designated as Hedging Instrument [Member] | Mark To Market Energy Assets [Member] | Propane Swap Agreement [Member] | ||
| Derivative [Line Items] | ||
| Energy Marketing Contracts Assets, Current | 0 | 11 |
| Designated as Hedging Instrument [Member] | Mark-to-market energy liabilities [Member] | Propane Swap Agreement [Member] | ||
| Derivative [Line Items] | ||
| Energy Marketing Contract Liabilities, Current | (2,216) | (1,604) |
| Sharp Energy Inc [Member] | ||
| Derivative [Line Items] | ||
| Receivables from Brokers-Dealers and Clearing Organizations | (2,488) | (2,170) |
| Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (1,700) | |
| PESCO [Member] | ||
| Derivative [Line Items] | ||
| Receivables from Brokers-Dealers and Clearing Organizations | (2,810) | |
| Other Payables to Broker-Dealers and Clearing Organizations | (524) | |
| Derivative Asset | 3,200 | 13,100 |
| Derivative Liability | $ 900 | $ 13,300 |
Share-Based Compensation - Share-Based Compensation Amounts Included in Net Income (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
|
| 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, Grants in Period | 751 | ||||
| Total compensation expense | $ 1,210 | $ 288 | $ 2,305 | $ 3,132 | |
| Less: tax benefit | (315) | (79) | (600) | (858) | |
| Share-Based Compensation amounts included in net income | 895 | 209 | $ 1,705 | 2,274 | |
| 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, Equity Instruments Other than Options, Grants in Period | 6,759 | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 6,759 | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 93.14 | ||||
| Total compensation expense | $ 158 | 135 | $ 463 | 404 | |
| 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 | 135,840 | 135,840 | 131,741 | ||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 45,016 | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 25,831 | ||||
| Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expired In Period | 15,086 | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 76.05 | $ 76.05 | $ 67.24 | ||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 94.34 | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 67.08 | ||||
| Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expirations Weighted Average Grant Date Fair Value | $ 69.28 | ||||
| Total compensation expense | $ 1,052 | $ 153 | $ 1,842 | $ 2,728 | |
Summary of Accounting policies - Additional Information (Details) |
3 Months Ended | 9 Months Ended |
|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2019 |
|
| Disposal Transactions Closing in October 2019 [Abstract] | ||
| Number of Disposal Transactions | 3 | |
| Disposal Transactions Closing October 2019 | 2 | |
| Disposal Transactions Closing November 2019 - January 2020 | 1 |
Revenue Recognition Disegragation of Revenue (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenues | $ 92,626,000 | $ 93,400,000 | $ 347,630,000 | $ 356,102,000 | ||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 92,626,000 | [1] | 93,400,000 | [1] | 347,630,000 | [2] | 356,102,000 | [2] | ||||
| Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 74,580,000 | [1] | 72,770,000 | [1] | 251,601,000 | [2] | 252,667,000 | [2] | ||||
| Unregulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 22,279,000 | [1] | 24,423,000 | [1] | 108,985,000 | [2] | 115,778,000 | [2] | ||||
| Other Segments And Intersegments Eliminations [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (4,233,000) | (3,793,000) | (12,956,000) | (12,343,000) | ||||||||
| Other [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (4,233,000) | [1] | (3,793,000) | [1] | (12,956,000) | [2] | (12,343,000) | [2] | ||||
| Consolidation, Eliminations [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (14,579,000) | (13,861,000) | (49,263,000) | (47,909,000) | ||||||||
| Eliminations [Member] | Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (9,487,000) | (7,359,000) | (28,200,000) | (25,362,000) | ||||||||
| Other [Member] | Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenues | 100,000 | 500,000 | (100,000) | (400,000) | ||||||||
| Other [Member] | Unregulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenues | 100,000 | 100,000 | 300,000 | 200,000 | ||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (859,000) | (2,709,000) | (8,107,000) | (10,204,000) | ||||||||
| Energy Distribution [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 62,052,000 | 60,536,000 | 213,860,000 | 223,271,000 | ||||||||
| Energy Distribution [Member] | Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 62,052,000 | 60,536,000 | 213,860,000 | 223,271,000 | ||||||||
| Energy Distribution [Member] | Delaware natural gas division [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 6,953,000 | 7,010,000 | 42,758,000 | 50,963,000 | ||||||||
| Energy Distribution [Member] | Delaware natural gas division [Member] | Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 6,953,000 | 7,010,000 | 42,758,000 | 50,963,000 | ||||||||
| Energy Distribution [Member] | Central Florida Gas Division [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 6,710,000 | 6,282,000 | 21,625,000 | 18,462,000 | ||||||||
| Energy Distribution [Member] | Central Florida Gas Division [Member] | Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 6,282,000 | 21,625,000 | 18,462,000 | |||||||||
| Energy Distribution [Member] | FPU Electric Distribution [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 24,174,000 | 23,830,000 | 59,016,000 | 60,933,000 | ||||||||
| Energy Distribution [Member] | FPU Electric Distribution [Member] | Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 24,174,000 | 23,830,000 | 59,016,000 | 60,933,000 | ||||||||
| Energy Distribution [Member] | Florida Public Utilities Company [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 17,908,000 | 17,390,000 | 60,357,000 | 58,885,000 | ||||||||
| Energy Distribution [Member] | Florida Public Utilities Company [Member] | Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 17,908,000 | 17,390,000 | 60,357,000 | 58,885,000 | ||||||||
| Energy Distribution [Member] | Maryland Natural Gas [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 2,634,000 | 2,463,000 | 15,867,000 | 17,136,000 | ||||||||
| Energy Distribution [Member] | Maryland Natural Gas [Member] | Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 2,634,000 | 2,463,000 | 15,867,000 | 17,136,000 | ||||||||
| Energy Distribution [Member] | Sandpiper [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 3,673,000 | 3,561,000 | 14,237,000 | 16,892,000 | ||||||||
| Energy Distribution [Member] | Sandpiper [Member] | Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 3,673,000 | 3,561,000 | 14,237,000 | 16,892,000 | ||||||||
| Energy Transmission [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 26,262,000 | 25,343,000 | 89,080,000 | 78,440,000 | ||||||||
| Energy Transmission [Member] | Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 22,015,000 | 19,593,000 | 65,941,000 | 54,758,000 | ||||||||
| Energy Transmission [Member] | Unregulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 4,247,000 | 5,750,000 | 23,139,000 | 23,682,000 | ||||||||
| Energy Transmission [Member] | Aspire [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 4,247,000 | 5,750,000 | 23,139,000 | 23,682,000 | ||||||||
| Energy Transmission [Member] | Aspire [Member] | Unregulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 4,247,000 | 5,750,000 | 23,139,000 | 23,682,000 | ||||||||
| Energy Transmission [Member] | Eastern Shore Gas Company [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 17,573,000 | 16,189,000 | 54,368,000 | 46,289,000 | ||||||||
| Energy Transmission [Member] | Eastern Shore Gas Company [Member] | Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 17,573,000 | 16,189,000 | 54,368,000 | 46,289,000 | ||||||||
| Energy Transmission [Member] | Peninsula Pipeline [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 4,442,000 | 3,404,000 | 11,573,000 | 8,469,000 | ||||||||
| Energy Transmission [Member] | Peninsula Pipeline [Member] | Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 4,442,000 | 3,404,000 | 11,573,000 | 8,469,000 | ||||||||
| Energy Generation [Member] | Eight Flags [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 4,027,000 | 4,044,000 | 12,405,000 | 12,652,000 | ||||||||
| Energy Generation [Member] | Eight Flags [Member] | Unregulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 4,027,000 | 4,044,000 | 12,405,000 | 12,652,000 | ||||||||
| Propane Delivery [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 13,805,000 | 17,338,000 | 76,947,000 | 89,648,000 | ||||||||
| Propane Delivery [Member] | Unregulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 13,805,000 | 17,338,000 | 76,947,000 | 89,648,000 | ||||||||
| Energy Services [Member] | Marlin Gas Services [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 1,059,000 | 4,601,000 | 0 | |||||||||
| Energy Services [Member] | Marlin Gas Services [Member] | Unregulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 1,059,000 | 4,601,000 | 0 | |||||||||
| Eliminations [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (15,108,000) | (14,472,000) | (50,928,000) | (49,905,000) | ||||||||
| Eliminations [Member] | Regulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (9,487,000) | (7,359,000) | (28,200,000) | (25,362,000) | ||||||||
| Eliminations [Member] | Unregulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | (1,254,000) | (3,185,000) | (9,377,000) | (11,679,000) | ||||||||
| Other [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 529,000 | 611,000 | 1,665,000 | 1,996,000 | ||||||||
| Other [Member] | Unregulated Energy [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 395,000 | 476,000 | 1,270,000 | 1,475,000 | ||||||||
| Other [Member] | Other [Member] | ||||||||||||
| Disaggregation of Revenue [Line Items] | ||||||||||||
| Revenue from Contract with Customer, Excluding Assessed Tax | $ 134,000 | $ 135,000 | $ 395,000 | $ 521,000 | ||||||||
| ||||||||||||
Stockholder's Equity Stockholder's Equity Additional Information (Details) - $ / shares |
Sep. 30, 2019 |
Dec. 31, 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 |
Other Commitments and Contingencies - Additional Information (Detail) $ in Millions |
3 Months Ended | 9 Months Ended |
|---|---|---|
Mar. 31, 2019 |
Sep. 30, 2019
USD ($)
|
|
| Other Commitments [Line Items] | ||
| Debt Service Coverage Ratio | 1.25 | |
| Debt Service Coverage Ratio Measurement Period | 12 | |
| Maximum Days To Make Default Good | 5 days | |
| Ratio based on average number of prior quarters | 6 | |
| 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 | $ 72.4 | |
| Draws on letters of credit | $ 7.0 | |
| Florida Natural Gas Distribution and Eight Flags [Member] | ||
| Other Commitments [Line Items] | ||
| Number of Years for Asset Management Agreement | 10 years | |
| PESCO [Member] | ||
| Other Commitments [Line Items] | ||
| Aggregate guaranteed amount | $ 69.0 | |
| Delmarva [Member] | ||
| Other Commitments [Line Items] | ||
| Number of Years for Asset Management Agreement | 3 years | |
| Minimum [Member] | Florida Natural Gas Distribution and Eight Flags [Member] | ||
| Other Commitments [Line Items] | ||
| Number of Years for Asset Management Agreement | 1 year |
Investments - Schedule of Investments (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Investments schedule [Line Items] | ||
| Investments, at fair value | $ 8,536 | $ 6,711 |
| Rabbi Trust Associated With Deferred Compensation Plan [Member] | ||
| Investments schedule [Line Items] | ||
| Investments, at fair value | 8,509 | 6,689 |
| Equity Securities [Member] | ||
| Investments schedule [Line Items] | ||
| Investments, at fair value | $ 27 | $ 22 |
Long-Term Debt - Outstanding Long-Term Debt- Supplemental Information (Detail) |
9 Months Ended | |
|---|---|---|
Sep. 30, 2019 |
Dec. 31, 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 | |
| 6.43% note, due May 2, 2028 [Member] | ||
| Debt Instrument [Line Items] | ||
| Long-term debt, interest percentage | 6.43% | |
| Debt instrument, maturity date | May 02, 2028 | |
| 3.73% note, due December 16, 2028 [Member] | ||
| Debt Instrument [Line Items] | ||
| Long-term debt, interest percentage | 3.73% | |
| Debt instrument, maturity date | Dec. 16, 2028 | |
| 3.88% note, due May 15, 2029 [Member] | ||
| Debt Instrument [Line Items] | ||
| Long-term debt, interest percentage | 3.88% | |
| Debt instrument, maturity date | May 15, 2029 | |
| 3.25% due April 30, 2032 [Member] | ||
| Debt Instrument [Line Items] | ||
| Long-term debt, interest percentage | 3.25% | |
| Debt instrument, maturity date | Apr. 30, 2032 | |
| 3.48% note, due May 31, 2038 [Member] | ||
| Debt Instrument [Line Items] | ||
| Long-term debt, interest percentage | 3.48% | |
| Debt instrument, maturity date | May 31, 2038 | |
| Uncollateralized Senior Note Due November Two Thousand Thirty Eight [Member] | ||
| Debt Instrument [Line Items] | ||
| Long-term debt, interest percentage | 3.58% | |
| Debt instrument, maturity date | Nov. 30, 2038 | |
| Uncollateralized Senior Note Due August Two Thousand Thirty Nine [Member] | ||
| Debt Instrument [Line Items] | ||
| Long-term debt, interest percentage | 3.98% | |
| Debt instrument, maturity date | Aug. 20, 2039 | |
| Uncollateralized Senior Note Due December Two Thousand Thirty Four [Member] | ||
| Debt Instrument [Line Items] | ||
| Long-term debt, interest percentage | 2.98% | |
| Debt instrument, maturity date | Dec. 20, 2034 | |
| Term Note Due January Two Thousand Twenty [Member] | ||
| Debt Instrument [Line Items] | ||
| Long-term debt, interest percentage | 2.80% | 3.23% |
| Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.75% | |
| Debt instrument, maturity date | Jan. 21, 2020 | |
| Term Note Due February Two Thousand Twenty [Member] | ||
| Debt Instrument [Line Items] | ||
| Long-term debt, interest percentage | 2.84% | |
| Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.75% | |
| Debt instrument, maturity date | Feb. 28, 2020 |
Leases Leases - Right of Use Asset and Lease Liability Balance Sheet Classification Additional Information (Details) $ in Thousands |
Sep. 30, 2019
USD ($)
|
|---|---|
| Leases - Right of Use Asset and Lease Liability Balance Sheet Classification [Abstract] | |
| Operating Lease, Right-of-Use Asset | $ 12,004 |
| Total Finance and Operating Lease Right-of-Use Asset | 12,004 |
| Operating Lease, Liability, Current | 1,694 |
| Operating Lease, Liability, Noncurrent | 10,392 |
| Total Operating and Finance Lease Liabilities | $ 12,086 |