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Segment Information
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Information
Segment Information
We use the management approach to identify operating segments. We organize our business around differences in regulatory environment and the operating results of each segment are regularly reviewed by the chief operating decision maker (our Chief Executive Officer) in order to make decisions about resources and to assess performance.
Our operations are entirely domestic and are comprised of two reportable segments:
•
Regulated Energy. Includes energy distribution and transmission services (natural gas distribution, natural gas transmission and electric distribution operations). All operations in this segment are regulated, as to their rates and services, by the PSC having jurisdiction in each operating territory or by the FERC in the case of Eastern Shore.
•
Unregulated Energy. Includes energy transmission, energy generation (the operations of our Eight Flags' CHP plant), propane operations, 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.
The remainder of our operations are presented as “Other businesses and eliminations,” which consists of unregulated subsidiaries that own real estate leased to Chesapeake Utilities, as well as certain corporate costs not allocated to other operations.
The following table presents financial information about our reportable segments:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
(in thousands)
 
 
 
 
 
 
 
 
Operating Revenues, Unaffiliated Customers
 
 
 
 
 
 
 
 
Regulated Energy
 
$
74,027

 
$
72,187

 
$
249,978

 
$
251,259

Unregulated Energy
 
18,599

 
21,213

 
97,652

 
104,843

Total operating revenues, unaffiliated customers
 
$
92,626

 
$
93,400

 
$
347,630

 
$
356,102

Intersegment Revenues (1)
 
 
 
 
 
 
 
 
Regulated Energy
 
$
553

 
$
583

 
$
1,623

 
$
1,408

Unregulated Energy
 
3,682

 
3,210

 
11,332

 
10,935

Other businesses
 
132

 
135

 
396

 
521

Total intersegment revenues
 
$
4,367

 
$
3,928

 
$
13,351

 
$
12,864

Operating Income
 
 
 
 
 
 
 
 
Regulated Energy
 
$
17,540

 
$
15,915

 
$
65,310

 
$
56,930

Unregulated Energy
 
(3,168
)
 
(3,090
)
 
11,316

 
10,519

Other businesses and eliminations
 
(14
)
 
54

 
18

 
(1,481
)
Operating income
 
14,358

 
12,879

 
76,644

 
65,968

Other expense, net
 
(350
)
 
(4
)
 
(729
)
 
(168
)
Interest charges
 
5,403

 
4,357

 
16,583

 
11,764

Income from Continuing Operations before Income Taxes
 
8,605

 
8,518

 
59,332


54,036

Income Taxes on Continuing Operations
 
2,360

 
2,428

 
15,355

 
14,918

Income from Continuing Operations
 
$
6,245

 
$
6,090

 
$
43,977


$
39,118

Loss from Discontinued Operations, net of tax
 
(624
)
 
(552
)
 
(1,388
)
 
(339
)
Net Income
 
$
5,621

 
$
5,538

 
$
42,589

 
$
38,779

 
 
 
 
 
 
 
 
 
 
(1) All significant intersegment revenues are billed at market rates and have been eliminated from consolidated operating revenues.
(in thousands)
 
September 30, 2019
 
December 31, 2018
Identifiable Assets (1)
 
 
 
 
Regulated Energy segment
 
$
1,384,057

 
$
1,345,805

Unregulated Energy segment (1)
 
250,849

 
245,702

Other businesses and eliminations
 
51,000

 
41,821

Total identifiable assets (1)
 
$
1,685,906

 
$
1,633,328



(1) Excludes assets held for sale related to the sale of assets and contracts for PESCO.