Segment Information

3 Months Ended

Mar. 31, 2022

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.

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
	March 31,
	2022		2021
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	124,058	$	120,721
Unregulated Energy	98,822		70,466
Total operating revenues, unaffiliated customers	$	222,880	$	191,187
Intersegment Revenues (1)
Regulated Energy	$	3,833	$	476
Unregulated Energy	1,996		4,293
Other businesses	606		132
Total intersegment revenues	$	6,435	$	4,901
Operating Income
Regulated Energy	$	34,681	$	32,637
Unregulated Energy	20,046		18,983
Other businesses and eliminations	138		(23)
Operating income	54,865		51,597
Other income (expense), net	913		375
Interest charges	5,339		5,105
Income before Income Taxes	50,439		46,867
Income Taxes	13,506		12,401
Net Income	$	36,933	$	34,466

    

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

(in thousands)	March 31, 2022		December 31, 2021
Identifiable Assets
Regulated Energy segment	$	1,620,209	$	1,629,191
Unregulated Energy segment	440,936		439,114
Other businesses and eliminations	48,484		46,564
Total identifiable assets	$	2,109,629	$	2,114,869