Business Segment Data

The Company's reportable segments are those that are based on the Company's method of internal reporting, which generally segregates the strategic business units due to differences in products, services and regulation. The internal reporting of these operating segments is defined based on the reporting and review process used by the Company's chief executive officer. The vast majority of the Company's operations are located within the United States. The Company also has an investment in a foreign country, which consists of Centennial Resources' investment in ECTE.

The electric segment generates, transmits and distributes electricity in Montana, North Dakota, South Dakota and Wyoming. The natural gas distribution segment distributes natural gas in those states as well as in Idaho, Minnesota, Oregon and Washington. These operations also supply related value-added services.

The pipeline and energy services segment provides natural gas transportation, underground storage, processing and gathering services, as well as oil gathering, through regulated and nonregulated pipeline systems and processing facilities primarily in the Rocky Mountain and northern Great Plains regions of the United States. This segment is constructing Dakota Prairie Refinery in conjunction with Calumet to refine crude oil and also provides cathodic protection and other energy-related services.

The exploration and production segment is engaged in oil and natural gas acquisition, exploration, development and production activities in the Rocky Mountain and Mid-Continent/Gulf States regions of the United States.

The construction materials and contracting segment mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mixed concrete, cement, asphalt, liquid asphalt and other value-added products. It also performs integrated contracting services. This segment operates in the central, southern and western United States and Alaska and Hawaii.

The construction services segment specializes in constructing and maintaining electric and communication lines, gas pipelines, fire suppression systems, and external lighting and traffic signalization equipment. This segment also provides utility excavation services and inside electrical wiring, cabling and mechanical services, sells and distributes electrical materials, and manufactures and distributes specialty equipment.

The Other category includes the activities of Centennial Capital, which insures various types of risks as a captive insurer for certain of the Company's subsidiaries. The function of the captive insurer is to fund the deductible layers of the insured companies' general liability, automobile liability and pollution liability coverages. Centennial Capital also owns certain real and personal property. The Other category also includes Centennial Resources' investment in ECTE.

The information below follows the same accounting policies as described in the Summary of Significant Accounting Policies. Information on the Company's businesses as of December 31 and for the years then ended was as follows:



	2013			2012			2011
	(In thousands)
External operating revenues:
Electric	$	257,260		$	236,895		$	225,468
Natural gas distribution	851,945			754,848			907,400
Pipeline and energy services	155,369			139,883			210,846
	1,264,574			1,131,626			1,343,714
Exploration and production	490,924			412,651			359,873
Construction materials and contracting	1,675,444			1,597,257			1,509,538
Construction services	1,029,909			932,013			834,918
Other	1,553			1,884			2,449
	3,197,830			2,943,805			2,706,778
Total external operating revenues	$	4,462,404		$	4,075,431		$	4,050,492

Intersegment operating revenues:
Electric	$	—		$	—		$	—
Natural gas distribution	—			—			—
Pipeline and energy services	46,699			53,274			67,497
Exploration and production	45,099			35,966			93,713
Construction materials and contracting	36,693			20,168			472
Construction services	9,930			6,545			19,471
Other	8,067			8,486			8,997
Intersegment eliminations	(146,488		)	(124,439		)	(190,150		)
Total intersegment operating revenues	$	—		$	—		$	—

Depreciation, depletion and amortization:
Electric	$	32,789		$	32,509		$	32,177
Natural gas distribution	50,031			45,731			44,641
Pipeline and energy services	29,119			27,684			25,502
Exploration and production	186,458			160,681			142,645
Construction materials and contracting	74,470			79,527			85,459
Construction services	11,939			11,063			11,399
Other	2,050			2,010			1,572
Total depreciation, depletion and amortization	$	386,856		$	359,205		$	343,395

Interest expense:
Electric	$	12,590		$	12,421		$	13,745
Natural gas distribution	25,123			28,726			29,444
Pipeline and energy services	10,330			7,742			10,516
Exploration and production	14,315			9,018			7,445
Construction materials and contracting	17,394			15,211			16,241
Construction services	4,306			4,435			4,473
Other	15			13			—
Intersegment eliminations	(156		)	(867		)	(510		)
Total interest expense	$	83,917		$	76,699		$	81,354



	2013			2012			2011
	(In thousands)
Income taxes:
Electric	$	9,683		$	8,975		$	7,242
Natural gas distribution	16,633			12,005			16,931
Pipeline and energy services	3,390			15,291			12,912
Exploration and production	53,197			(108,264		)	46,298
Construction materials and contracting	24,765			14,099			11,227
Construction services	29,504			24,128			13,426
Other	2,433			2,620			2,238
Intersegment eliminations	(2,869		)	—			—
Total income taxes	$	136,736		$	(31,146	)	$	110,274

Earnings (loss) on common stock:
Electric	$	34,837		$	30,634		$	29,258
Natural gas distribution	37,656			29,409			38,398
Pipeline and energy services	7,629			26,588			23,082
Exploration and production	94,450			(177,283		)	80,282
Construction materials and contracting	50,946			32,420			26,430
Construction services	52,213			38,429			21,627
Other	5,136			4,797			6,190
Intersegment eliminations	(4,307		)	—			—
Earnings (loss) on common stock before income (loss) from discontinued operations	278,560			(15,006		)	225,267
Income (loss) from discontinued operations, net of tax*	(312		)	13,567			(12,926		)
Total earnings (loss) on common stock	$	278,248		$	(1,439	)	$	212,341

Capital expenditures:
Electric	$	168,557		$	112,035		$	52,072
Natural gas distribution	101,279			130,178			70,624
Pipeline and energy services	127,092			133,787			45,556
Exploration and production	391,315			554,528			272,855
Construction materials and contracting	34,607			45,083			52,303
Construction services	15,102			14,835			9,711
Other	2,249			791			18,759
Net proceeds from sale or disposition of property and other	(112,131		)	(57,460		)	(40,857		)
Total net capital expenditures	$	728,070		$	933,777		$	481,023

Assets:
Electric**	$	884,283		$	760,324		$	672,940
Natural gas distribution**	1,786,068			1,703,459			1,679,091
Pipeline and energy services	798,701			622,470			526,797
Exploration and production	1,616,131			1,539,017			1,481,556
Construction materials and contracting	1,305,808			1,371,252			1,374,026
Construction services	450,614			429,547			418,519
Other***	219,727			256,422			403,196
Total assets	$	7,061,332		$	6,682,491		$	6,556,125



	2013			2012		2011
	(In thousands)
Property, plant and equipment:
Electric**	$	1,315,822		$	1,150,584	$	1,068,524
Natural gas distribution**	1,776,901			1,689,950		1,568,866
Pipeline and energy services	962,172			816,533		719,291
Exploration and production	3,060,848			2,764,560		2,615,146
Construction materials and contracting	1,510,355			1,504,981		1,499,852
Construction services	134,948			130,624		124,796
Other	49,997			50,519		49,747
Eliminations	(7,177		)	—		—
Less accumulated depreciation, depletion and amortization	3,872,487			3,608,912		3,361,208
Net property, plant and equipment	$	4,931,379		$	4,498,839	$	4,285,014

* Reflected in the Other category.

** Includes allocations of common utility property.

*** Includes assets not directly assignable to a business (i.e. cash and cash equivalents, certain accounts receivable, certain investments and other miscellaneous current and deferred assets).

Note: The results reflect $391.8 million ($246.8 million after tax) of noncash write-downs of oil and natural gas properties in 2012.

Excluding the impairments of the coalbed natural gas gathering assets of $9.0 million (after tax) and $1.7 million (after tax) in 2013 and 2012, respectively, and the reversal of the natural gas gathering arbitration charge of $1.5 million (after tax) and $15.0 million (after tax) in 2013 and 2012, respectively, as discussed in Notes 1 and 19, respectively, earnings from electric, natural gas distribution and pipeline and energy services are substantially all from regulated operations. Earnings from exploration and production, construction materials and contracting, construction services and other are all from nonregulated operations.

Capital expenditures for 2013, 2012 and 2011 include noncash capital expenditure-related accounts payable and exclude capital expenditures of the noncontrolling interest related to Dakota Prairie Refinery. The net transactions were $(56.8) million in 2013, $33.7 million in 2012 and $24.0 million in 2011.