Segment Information

9 Months Ended

Sep. 30, 2021

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 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.

The remainder of our operations is presented as “Other businesses and eliminations,” which consists of unregulated subsidiaries that own real estate leased to Chesapeake Utilities, as well as certain corporate costs not allocated to other operations. The following table presents financial information about our reportable segments:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	79,892	$	82,297	$	280,987	$	257,810
Unregulated Energy	27,443		19,122		128,617		93,350
Total operating revenues, unaffiliated customers	$	107,335	$	101,419	$	409,604	$	351,160
Intersegment Revenues (1)
Regulated Energy	$	504	$	465	$	1,516	$	1,425
Unregulated Energy	4,666		3,592		13,024		11,116
Other businesses	132		131		397		396
Total intersegment revenues	$	5,302	$	4,188	$	14,937	$	12,937
Operating Income
Regulated Energy	$	23,538	$	20,482	$	79,210	$	66,376
Unregulated Energy	(2,883)		(3,092)		15,777		11,050
Other businesses and eliminations	(542)		16		(699)		92
Operating income	20,113		17,406		94,288		77,518
Other income (expense), net	339		(40)		2,180		2,997
Interest charges	4,975		4,584		15,134		15,452
Income from Continuing Operations before Income Taxes	15,477		12,782		81,334		65,063
Income Taxes on Continuing Operations	2,993		3,502		20,563		16,082
Income from Continuing Operations	12,484		9,280		60,771		48,981
Income (Loss) from Discontinued Operations, Net of Tax	(9)		(19)		(17)		165
Net Income	$	12,475	$	9,261	$	60,754	$	49,146

    

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

(in thousands)	September 30, 2021		December 31, 2020
Identifiable Assets
Regulated Energy segment	$	1,592,950	$	1,547,619
Unregulated Energy segment	381,642		347,665
Other businesses and eliminations	47,236		37,203
Total identifiable assets	$	2,021,828	$	1,932,487