Revenue Recognition (Notes)

3 Months Ended

Mar. 31, 2024

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 tables display our revenue by major source based on product and service type for the three months ended March 31, 2024 and 2023:

	Three Months Ended March 31, 2024								Three Months Ended March 31, 2023
(in thousands)	Regulated Energy		Unregulated Energy		Other and Eliminations		Total		Regulated Energy		Unregulated Energy		Other and Eliminations		Total
Energy distribution
Delaware natural gas division	$	31,917	$	—	$	—	$	31,917	$	36,907	$	—	$	—	$	36,907
Florida natural gas distribution	47,956		—		—		47,956		46,358		—		—		46,358
Florida City Gas	35,877		—		—		35,877		—		—		—		—
FPU electric distribution	19,964		—		—		19,964		22,737		—		—		22,737
Maryland natural gas division	9,855		—		—		9,855		12,263		—		—		12,263
Sandpiper natural gas/propane operations	7,057		—		—		7,057		7,082		—		—		7,082
Elkton Gas	2,859		—		—		2,859		4,141		—		—		4,141
Total energy distribution	155,485		—		—		155,485		129,488		—		—		129,488
Energy transmission
Aspire Energy	—		13,608		—		13,608		—		13,954		—		13,954
Aspire Energy Express	369		—		—		369		364		—		—		364
Eastern Shore	21,266		—		—		21,266		20,670		—		—		20,670
Peninsula Pipeline	7,992		—		—		7,992		6,911		—		—		6,911
Total energy transmission	29,627		13,608		—		43,235		27,945		13,954		—		41,899
Energy generation
Eight Flags	—		4,555		—		4,555		—		5,300		—		5,300
Propane operations
Propane delivery operations	—		61,572		—		61,572		—		59,980		—		59,980
Compressed Natural Gas Services
Marlin Gas Services	—		3,428		—		3,428		—		4,001		—		4,001
Other and eliminations
Eliminations	(16,686)		(60)		(5,830)		(22,576)		(15,163)		(69)		(7,352)		(22,584)
Other	—				45		45		—		—		45		45
Total other and eliminations	(16,686)		(60)		(5,785)		(22,531)		(15,163)		(69)		(7,307)		(22,539)
Total operating revenues (1)	$	168,426	$	83,103	$	(5,785)	$	245,744	$	142,270	$	83,166	$	(7,307)	$	218,129

(1) Total operating revenues for the three months ended March 31, 2024 and 2023 both include other revenue (revenues from sources other than contracts with customers) of $0.6 million and $0.1 million for our Regulated and Unregulated Energy segments, respectively. 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 March 31, 2024 and December 31, 2023 were as follows:

	Trade Receivables		Contract Assets (Current)		Contract Assets (Non-current)		Contract Liabilities (Current)
(in thousands)
Balance at 12/31/2023	$	67,741	$	18	$	3,524	$	1,022
Balance at 3/31/2024	61,497		18		3,370		710
Increase (Decrease)	$	(6,244)	$	—	$	(154)	$	(312)

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 propane distribution 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 March 31, 2024 and 2023, the amounts recognized in revenue were not material.

Remaining Performance Obligations

Certain of 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 March 31, 2024, are expected to be recognized as follows:

(in thousands)	2024		2025		2026		2027		2028		2029		2030 and thereafter
Eastern Shore and Peninsula Pipeline	$	27,404	$	30,520	$	26,668	$	23,535	$	22,657	$	20,733	$	128,891
Natural gas distribution operations	7,284		9,310		8,596		6,567		5,346		4,802		23,744
FPU electric distribution	562		749		364		364		364		—		—
Total revenue contracts with remaining performance obligations	$	35,250	$	40,579	$	35,628	$	30,466	$	28,367	$	25,535	$	152,635