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. For more information, see Note 4.

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 development and production activities in the Rocky Mountain and Mid-Continent/Gulf States regions of the United States. The Company intends to market its exploration and production business in the future. The plan to market this business has been delayed due to low oil prices.

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:



	2014			2013			2012
				(In thousands)
External operating revenues:
Electric	$	277,874		$	257,260		$	236,895
Natural gas distribution	921,986			851,945			754,848
Pipeline and energy services	166,496			155,369			139,883
	1,366,356			1,264,574			1,131,626
Exploration and production	500,526			490,924			412,651
Construction materials and contracting	1,740,089			1,675,444			1,597,257
Construction services	1,062,055			1,029,909			932,013
Other	1,532			1,553			1,884
	3,304,202			3,197,830			2,943,805
Total external operating revenues	$	4,670,558		$	4,462,404		$	4,075,431

Intersegment operating revenues:
Electric	$	—		$	—		$	—
Natural gas distribution	—			—			—
Pipeline and energy services	49,372			46,699			53,274
Exploration and production	47,045			45,099			35,966
Construction materials and contracting	25,241			36,693			20,168
Construction services	57,474			9,930			6,545
Other	7,832			8,067			8,486
Intersegment eliminations	(186,964		)	(146,488		)	(124,439		)
Total intersegment operating revenues	$	—		$	—		$	—

Depreciation, depletion and amortization:
Electric	$	35,008		$	32,789		$	32,509
Natural gas distribution	54,700			50,031			45,731
Pipeline and energy services	30,645			29,119			27,684
Exploration and production	198,199			186,458			160,681
Construction materials and contracting	68,557			74,470			79,527
Construction services	12,874			11,939			11,063
Other	2,196			2,050			2,010
Intersegment eliminations	(811		)	—			—
Total depreciation, depletion and amortization	$	401,368		$	386,856		$	359,205



	2014			2013			2012
				(In thousands)
Interest expense:
Electric	$	15,595		$	12,590		$	12,421
Natural gas distribution	27,217			25,123			28,726
Pipeline and energy services	10,048			10,330			7,742
Exploration and production	13,834			14,315			9,018
Construction materials and contracting	16,368			17,394			15,211
Construction services	4,176			4,306			4,435
Other	15			15			13
Intersegment eliminations	(237		)	(156		)	(867		)
Total interest expense	$	87,016		$	83,917		$	76,699

Income taxes:
Electric	$	12,442		$	9,683		$	8,975
Natural gas distribution	11,350			16,633			12,005
Pipeline and energy services	9,699			3,390			15,291
Exploration and production	47,739			53,197			(108,264		)
Construction materials and contracting	18,586			24,765			14,099
Construction services	24,753			29,504			24,128
Other	(1,119		)	2,433			2,620
Intersegment eliminations	(3,481		)	(2,869		)	—
Total income taxes	$	119,969		$	136,736		$	(31,146	)

Earnings (loss) on common stock:
Electric	$	36,731		$	34,837		$	30,634
Natural gas distribution	30,484			37,656			29,409
Pipeline and energy services	22,628			7,629			26,588
Exploration and production	96,733			94,450			(177,283		)
Construction materials and contracting	51,510			50,946			32,420
Construction services	54,432			52,213			38,429
Other	7,461			5,136			4,797
Intersegment eliminations	(5,608		)	(4,307		)	—
Earnings (loss) on common stock before income (loss) from discontinued operations	294,371			278,560			(15,006		)
Income (loss) from discontinued operations, net of tax*	3,177			(312		)	13,567
Total earnings (loss) on common stock	$	297,548		$	278,248		$	(1,439	)

Capital expenditures:
Electric	$	185,121		$	168,557		$	112,035
Natural gas distribution	120,613			101,279			130,178
Pipeline and energy services	177,409			127,092			133,787
Exploration and production	600,572			391,315			554,528
Construction materials and contracting	37,896			34,607			45,083
Construction services	26,942			15,102			14,835
Other	2,131			2,249			791
Net proceeds from sale or disposition of property and other	(306,994		)	(112,131		)	(57,460		)
Total net capital expenditures	$	843,690		$	728,070		$	933,777

Assets:
Electric**	$	1,030,611		$	884,283		$	760,324
Natural gas distribution**	1,931,908			1,786,068			1,703,459
Pipeline and energy services	1,081,902			798,701			622,470
Exploration and production	1,738,064			1,616,131			1,539,017
Construction materials and contracting	1,272,231			1,305,808			1,371,252
Construction services	454,602			450,614			429,547
Other***	300,660			219,727			256,422
Total assets	$	7,809,978		$	7,061,332		$	6,682,491



	2014			2013			2012
				(In thousands)

Property, plant and equipment:
Electric**	$	1,457,101		$	1,315,822		$	1,150,584
Natural gas distribution**	1,904,759			1,776,901			1,689,950
Pipeline and energy services	1,220,233			962,172			816,533
Exploration and production	3,402,879			3,060,848			2,764,560
Construction materials and contracting	1,529,942			1,510,355			1,504,981
Construction services	144,395			134,948			130,624
Other	50,937			49,997			50,519
Eliminations	(17,075		)	(7,177		)	—
Less accumulated depreciation, depletion and amortization	4,166,407			3,872,487			3,608,912
Net property, plant and equipment	$	5,526,764		$	4,931,379		$	4,498,839


*	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 charge related to natural gas gathering operations litigation 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 2014, 2013 and 2012 include noncash capital expenditure-related accounts payable and exclude capital expenditures of the noncontrolling interest related to Dakota Prairie Refinery. The net transactions were $(61.2) million in 2014, $(56.8) million in 2013 and $33.7 million in 2012.