Segment Information

9 Months Ended

Sep. 30, 2020

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, was reflected in discontinued operations. See Note 3, Acquisitions and Divestitures 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,
	2020		2019		2020		2019
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	82,297	$	74,027	$	257,810	$	249,978
Unregulated Energy	19,122		18,599		93,350		97,652
Total operating revenues, unaffiliated customers	$	101,419	$	92,626	$	351,160	$	347,630
Intersegment Revenues (1)
Regulated Energy	$	465	$	553	$	1,425	$	1,623
Unregulated Energy	3,592		3,681		11,116		11,333
Other businesses	131		133		396		395
Total intersegment revenues	$	4,188	$	4,367	$	12,937	$	13,351
Operating Income
Regulated Energy	$	20,482	$	17,540	$	66,376	$	65,310
Unregulated Energy	(3,092)		(3,169)		11,050		11,317
Other businesses and eliminations	16		(14)		92		18
Operating income	17,406		14,357		77,518		76,645
Other income (expense), net	(40)		(351)		2,997		(731)
Interest charges	4,584		5,403		15,452		16,583
Income from Continuing Operations before Income Taxes	12,782		8,603		65,063		59,331
Income Taxes on Continuing Operations	3,502		2,352		16,082		15,354
Income from Continuing Operations	9,280		6,251		48,981		43,977
Income (loss) from Discontinued Operations, Net of Tax	(19)		(630)		165		(1,388)
Net Income	$	9,261	$	5,621	$	49,146	$	42,589

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


(in thousands)	September 30, 2020		December 31, 2019
Identifiable Assets
Regulated Energy segment	$	1,530,689	$	1,434,066
Unregulated Energy segment	305,536		296,810
Other businesses and eliminations	51,863		52,322
Total identifiable assets	$	1,888,088	$	1,783,198