Revenue Recognition (Notes)

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue Recognition

We recognize revenue when our performance obligations under contracts with customers have been satisfied, which generally occurs when our businesses have delivered or transported natural gas, electricity or propane to customers. We exclude sales taxes and other similar taxes from the transaction price. Typically, our customers pay for the goods and/or services we provide in the month following the satisfaction of our performance obligation. The following table displays our revenue by major source based on product and service type for the three months ended June 30, 2022 and 2021:

	Three months ended June 30, 2022								Three months ended June 30, 2021
(in thousands)	Regulated Energy		Unregulated Energy		Other and Eliminations		Total		Regulated Energy		Unregulated Energy		Other and Eliminations		Total
Energy distribution
Delaware natural gas division	$	13,086	$	—	$	—	$	13,086	$	10,068	$	—	$	—	$	10,068
Florida natural gas division	9,619		—		—		9,619		8,446		—		—		8,446
FPU electric distribution	20,305		—		—		20,305		18,898		—		—		18,898
FPU natural gas distribution	25,817		—		—		25,817		23,159		—		—		23,159
Maryland natural gas division	4,372		—		—		4,372		3,224		—		—		3,224
Sandpiper natural gas/propane operations	4,248		—		—		4,248		3,814		—		—		3,814
Elkton Gas	1,705		—		—		1,705		1,195		—		—		1,195
Total energy distribution	79,152		—		—		79,152		68,804		—		—		68,804
Energy transmission
Aspire Energy	—		10,808		—		10,808		—		5,578		—		5,578
Aspire Energy Express	369		—		—		369		47		—		—		47
Eastern Shore	18,875		—		—		18,875		18,617		—		—		18,617
Peninsula Pipeline	6,777		—		—		6,777		6,610		—		—		6,610
Total energy transmission	26,021		10,808		—		36,829		25,274		5,578		—		30,852
Energy generation
Eight Flags	—		5,916		—		5,916		—		4,173		—		4,173
Propane operations
Propane delivery operations	—		34,469		—		34,469		—		23,098		—		23,098
Compressed Natural Gas Services
Marlin Gas Services	—		2,380		—		2,380		—		1,989		—		1,989
Other and eliminations
Eliminations	(12,980)		(110)		(6,271)		(19,361)		(13,168)		(65)		(4,734)		(17,967)
Other	—		—		85		85		—		—		133		133
Total other and eliminations	(12,980)		(110)		(6,186)		(19,276)		(13,168)		(65)		(4,601)		(17,834)
Total operating revenues (1)	$	92,193	$	53,463	$	(6,186)	$	139,470	$	80,910	$	34,773	$	(4,601)	$	111,082

(1) Total operating revenues for the three months ended June 30, 2022, include other revenue (revenues from sources other than contracts with customers) of $(0.1) million for Regulated and $0.1 million Unregulated Energy segments, respectively, and $0.1 million for both our Regulated and Unregulated Energy segments, respectively, for the three months ended June 30, 2021. The sources of other revenues include revenue from alternative revenue programs related to revenue normalization for the Maryland division and Sandpiper Energy and late fees.

The following table displays our revenue by major source based on product and service type for the six months ended June 30, 2022 and 2021:

	Six Months Ended June 30, 2022								Six Months Ended June 30, 2021
(in thousands)	Regulated Energy		Unregulated Energy		Other and Eliminations		Total		Regulated Energy		Unregulated Energy		Other and Eliminations		Total
Energy distribution
Delaware natural gas division	$	47,568	$	—	$	—	$	47,568	$	43,340	$	—	$	—	$	43,340
Florida natural gas division	19,885		—		—		19,885		17,402		—		—		17,402
FPU electric distribution	39,394		—		—		39,394		37,449		—		—		37,449
FPU natural gas distribution	55,837		—		—		55,837		50,020		—		—		50,020
Maryland natural gas division	14,836		—		—		14,836		13,690		—		—		13,690
Sandpiper natural gas/propane operations	11,885		—		—		11,885		11,885		—		—		11,885
Elkton Gas	5,071		—		—		5,071		3,830		—		—		3,830
Total energy distribution	194,476		—		—		194,476		177,616		—		—		177,616
Energy transmission
Aspire Energy	—		28,844		—		28,844		—		18,484		—		18,484
Aspire Energy Express	632		—		—		632		93		—		—		93
Eastern Shore	39,196		—		—		39,196		38,589		—		—		38,589
Peninsula Pipeline	13,549		—		—		13,549		13,077		—		—		13,077
Total energy transmission	53,377		28,844		—		82,221		51,759		18,484		—		70,243
Energy generation
Eight Flags	—		11,455		—		11,455		—		8,502		—		8,502
Propane operations
Propane delivery operations	—		110,075		—		110,075		—		78,361		—		78,361
Compressed Natural Gas Services
Marlin Gas Services	—		4,589		—		4,589		—		4,340		—		4,340
Other and eliminations
Eliminations	(27,769)		(207)		(12,706)		(40,682)		(27,268)		(156)		(9,635)		(37,059)
Other	—		—		216		216		—		—		265		265
Total other and eliminations	(27,769)		(207)		(12,490)		(40,466)		(27,268)		(156)		(9,370)		(36,794)
Total operating revenues (1)	$	220,084	$	154,756	$	(12,490)	$	362,350	$	202,107	$	109,531	$	(9,370)	$	302,268

(1) Total operating revenues for the six months ended June 30, 2022, include other revenue (revenues from sources other than contracts with customers) of $0.1 million for Regulated and $0.2 million Unregulated Energy segments, respectively, and $(0.2) million and $0.2 million for our Regulated and Unregulated Energy segments, respectively, for the six months ended June 30, 2021. The sources of other revenues include revenue from alternative revenue programs related to revenue normalization for the Maryland division and Sandpiper Energy and late fees.

Contract balances

The timing of revenue recognition, customer billings and cash collections results in trade receivables, unbilled receivables (contract assets), and customer advances (contract liabilities) in our condensed consolidated balance sheets. The balances of our trade receivables, contract assets, and contract liabilities as of June 30, 2022 and December 31, 2021 were as follows:

	Trade Receivables		Contract Assets (Current)		Contract Assets (Non-current)		Contract Liabilities (Current)
(in thousands)
Balance at 12/31/2021	$	56,277	$	18	$	4,806	$	747
Balance at 6/30/2022	38,778		18		4,607		724
Decrease	$	(17,499)	$	—	$	(199)	$	(23)

Our trade receivables are included in trade and other receivables in the condensed consolidated balance sheets. Our current contract assets are included in other current assets in the condensed consolidated balance sheet. Our non-current contract assets are included in other assets in the condensed consolidated balance sheet and primarily relate to operations and maintenance costs incurred by Eight Flags that have not yet been recovered through rates for the sale of electricity to our electric distribution operation pursuant to a long-term service agreement.

At times, we receive advances or deposits from our customers before we satisfy our performance obligation, resulting in contract liabilities. Contract liabilities are included in other accrued liabilities in the condensed consolidated balance sheets and relate to non-refundable prepaid fixed fees for our Mid-Atlantic propane delivery operation's retail offerings. Our performance obligation is satisfied over the term of the respective customer retail program on a ratable basis. For the three months ended June 30, 2022 and 2021, we recognized revenue of $0.3 million and $0.2 million. For the six months ended June 30, 2022 and 2021, we recognized revenue of $0.7 million and $0.6 million.

Remaining performance obligations

Our businesses have long-term fixed fee contracts with customers in which revenues are recognized when performance obligations are satisfied over the contract term. Revenue for these businesses for the remaining performance obligations, at June 30, 2022, are expected to be recognized as follows:

(in thousands)	2022		2023		2024		2025		2026		2027		2028 and thereafter
Eastern Shore and Peninsula Pipeline	$	24,379	$	45,426	$	40,431	$	33,804	$	29,294	$	25,096	$	179,259
Natural gas distribution operations	3,433		6,238		6,050		5,698		5,515		5,100		33,113
FPU electric distribution	326		652		652		275		275		275		275
Total revenue contracts with remaining performance obligations	$	28,138	$	52,316	$	47,133	$	39,777	$	35,084	$	30,471	$	212,647