Business segment data

3 Months Ended

Mar. 31, 2020

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 segment provides natural gas transportation, underground storage and gathering services through regulated and nonregulated pipeline systems primarily in the Rocky Mountain and northern Great Plains regions of the United States. This segment also provides cathodic protection and other energy-related services.

The construction materials and contracting segment mines, processes and sells construction aggregates (crushed stone, sand and gravel); produces and sells asphalt mix; and supplies ready-mixed concrete. This segment focuses on vertical integration of its contracting services with its construction materials to support the aggregate based product lines including aggregate placement, asphalt and concrete paving, and site development and grading. Although not common to all locations, other products include the sale of cement, liquid asphalt for various commercial and roadway applications, various finished concrete products and other building materials and related contracting services. This segment operates in the central, southern and western United States, including Alaska and Hawaii.

The construction services segment provides inside and outside specialty contracting services. Its inside services include design, construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, and mechanical piping and services. Its outside services include design, construction and maintenance of overhead and underground electrical distribution and transmission lines, substations, external lighting, traffic signalization, and gas pipelines, as well as utility excavation and the manufacture and distribution of transmission line construction equipment. This segment also constructs and maintains renewable energy projects. These specialty contracting services are provided to utilities and large manufacturing, commercial, industrial, institutional and government customers.

The Other category includes the activities of Centennial Capital, which, through its subsidiary InterSource Insurance Company, 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 self-insured layers of the insured Company's general liability, automobile liability, pollution liability and other coverages. Centennial Capital also owns certain real and personal property. In addition, the Other category includes certain assets, liabilities and tax adjustments of the holding company primarily associated with corporate functions and certain general and administrative costs (reflected in operation and maintenance expense) and interest expense, which were previously allocated to the refining business and Fidelity and do not meet the criteria for income (loss) from discontinued operations. The Other category also includes Centennial Resources' former investment in Brazil.

Discontinued operations include the results and supporting activities of Dakota Prairie Refining and Fidelity other than certain general and administrative costs and interest expense as described above.

The information below follows the same accounting policies as described in Note 1 of the Notes to Consolidated Financial Statements in the 2019 Annual Report. Information on the Company's segments was as follows:



	Three Months Ended
	March 31,
	2020			2019
	(In thousands)
External operating revenues:
Regulated operations:
Electric	$	85,908		$	92,566
Natural gas distribution	326,443			342,147
Pipeline	6,331			4,904
	418,682			439,617
Nonregulated operations:
Pipeline	4,324			3,709
Construction materials and contracting	262,144			227,113
Construction services	512,205			420,733
Other	18			19
	778,691			651,574
Total external operating revenues	$	1,197,373		$	1,091,191

Intersegment operating revenues:
Regulated operations:
Electric	$	195		$	—
Natural gas distribution	185			—
Pipeline	25,183			23,922
	25,563			23,922
Nonregulated operations:
Pipeline	16			33
Construction materials and contracting	63			95
Construction services	2,470			129
Other	2,973			7,824
	5,522			8,081
Intersegment eliminations	(31,085		)	(32,003		)
Total intersegment operating revenues	$	—		$	—



	Three Months Ended
	March 31,
	2020			2019
	(In thousands)
Operating income (loss):
Electric	$	14,859		$	17,987
Natural gas distribution	49,998			50,317
Pipeline	11,419			9,904
Construction materials and contracting	(43,269		)	(41,580		)
Construction services	23,796			27,465
Other	267			125
Total operating income	$	57,070		$	64,218

Net income (loss):
Regulated operations:
Electric	$	11,374		$	15,505
Natural gas distribution	32,369			36,500
Pipeline	7,386			7,004
	51,129			59,009
Nonregulated operations:
Pipeline	(13		)	(163		)
Construction materials and contracting	(38,215		)	(34,449		)
Construction services	16,823			20,024
Other	(4,185		)	(3,332		)
	(25,590		)	(17,920		)
Income from continuing operations	25,539			41,089
Loss from discontinued operations, net of tax	(409		)	(163		)
Net income	$	25,130		$	40,926