Business segment data

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Business segment data

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 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 operates Dakota Prairie Refinery in conjunction with Calumet to refine crude oil. The facility produces and sells diesel fuel, naphtha and ATBs. This segment also provides cathodic protection and other energy-related services.

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 provides utility construction services specializing in constructing and maintaining electric and communications lines, gas pipelines, fire suppression systems, and external lighting and traffic signalization. This segment also provides utility excavation and inside electrical and mechanical services, and manufactures and distributes transmission line construction equipment and supplies.

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 certain general and administrative costs (reflected in operation and maintenance expense) and interest expense which were previously allocated to Fidelity and do not meet the criteria for income (loss) from discontinued operations. The Other category also includes Centennial Resources' former investment in the Brazilian Transmission Lines.

Discontinued operations includes the results of Fidelity other than certain general and administrative costs and interest expense as described above. Fidelity 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. In the third and fourth quarters of 2015, the Company entered into purchase and sale agreements to sell the vast majority of Fidelity's assets, comprising greater than 90 percent of production for the nine months ended September 30, 2015. The completion of these sales is expected to occur in the fourth quarter of 2015 and the Company continues to market the remaining assets of Fidelity. Discontinued operations also includes legal expenses and a benefit related to the vacation of an arbitration award in 2014 related to Centennial Resources. For more information on discontinued operations, see Note 10.

The information below follows the same accounting policies as described in Note 1 of the Company's Notes to Consolidated Financial Statements in the 2014 Annual Report. Information on the Company's businesses was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
	(In thousands)
External operating revenues:
Regulated operations:
Electric	$	74,604	$	68,936	$	210,646	$	207,732
Natural gas distribution	89,520		96,185		553,058		616,496
Pipeline and energy services	21,100		19,672		43,282		39,341
	185,224		184,793		806,986		863,569
Nonregulated operations:
Pipeline and energy services	96,896		17,168		174,732		47,028
Construction materials and contracting	774,288		740,496		1,475,585		1,339,371
Construction services	223,676		270,313		670,594		815,313
Other	416		433		1,167		1,248
	1,095,276		1,028,410		2,322,078		2,202,960
Total external operating revenues	$	1,280,500	$	1,213,203	$	3,129,064	$	3,066,529

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
	(In thousands)
Intersegment operating revenues:
Regulated operations:
Electric	$	—		$	—		$	—		$	—
Natural gas distribution	—			—			—			—
Pipeline and energy services	3,740			3,728			31,365			27,938
	3,740			3,728			31,365			27,938
Nonregulated operations:
Pipeline and energy services	145			174			460			544
Construction materials and contracting	244			6,322			2,450			18,445
Construction services	2,112			16,420			17,298			27,431
Other	2,379			2,601			5,943			6,069
	4,880			25,517			26,151			52,489
Intersegment eliminations	(8,620		)	(29,245		)	(57,516		)	(80,427		)
Total intersegment operating revenues	$	—		$	—		$	—		$	—
Earnings (loss) on common stock:
Regulated operations:
Electric	$	12,605		$	9,162		$	26,842		$	28,018
Natural gas distribution	(12,298		)	(12,252		)	3,777			10,516
Pipeline and energy services	5,392			3,887			15,077			10,499
	5,699			797			45,696			49,033
Nonregulated operations:
Pipeline and energy services	(14,903		)	1,173			(22,175		)	4,699
Construction materials and contracting	68,823			55,218			74,324			42,199
Construction services	4,742			9,876			16,505			40,751
Other	(1,380		)	(864		)	(9,537		)	(7,623		)
	57,282			65,403			59,117			80,026
Intersegment eliminations	26			(1,644		)	(1,649		)	(3,070		)
Earnings on common stock before income (loss) from discontinued operations	63,007			64,556			103,164			125,989
Income (loss) from discontinued operations, net of tax	(202,626		)	38,482			(778,647		)	87,475
Total earnings (loss) on common stock	$	(139,619	)	$	103,038		$	(675,483	)	$	213,464