Business segment data

3 Months Ended

Mar. 31, 2024

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 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 and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions of the United States. This segment also provides non-regulated energy-related services, including cathodic protection.

The construction services segment provides a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services across the United States. These specialty contracting services are provided to utilities, manufacturing, transportation, commercial, industrial, institutional, renewable and governmental customers. Its electrical and mechanical contracting services include construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, and mechanical piping and services. Its transmission and distribution contracting services include construction and maintenance of overhead and underground electrical, gas and communication infrastructure, as well as manufacturing and supplying transmission and distribution line construction equipment and tools.

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, as well as costs associated with certain strategic initiatives. Also included are certain general and administrative costs (reflected in operation and maintenance expense) and interest expense, which were previously allocated to the refining business, Fidelity and Knife River which do not meet the criteria for income (loss) from discontinued operations.

Discontinued operations includes Knife River's operations, associated separation costs and interest on debt facilities repaid in connection with the Knife River separation. Discontinued operations also includes the supporting activities of 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 2 of the Notes to Consolidated Financial Statements in the 2023 Annual Report. Information on the Company's segments was as follows:

	Three Months Ended
	March 31,
	2024		2023
	(In thousands)
External operating revenues:
Regulated operations:
Electric	$	107,727	$	95,697
Natural gas distribution	459,469		565,597
Pipeline	18,821		12,638
	586,017		673,932
Non-regulated operations:
Pipeline	2,190		1,833
Construction services	625,602		754,333
Other	16		—
	627,808		756,166
Total external operating revenues	$	1,213,825	$	1,430,098
Intersegment operating revenues:
Regulated operations:
Electric	$	28	$	27
Natural gas distribution	56		70
Pipeline	30,275		26,259
	30,359		26,356
Non-regulated operations:
Pipeline	36		11
Construction services	87		—
Other	1,417		1,572
	1,540		1,583
Total intersegment operating revenues	$	31,899	$	27,939
Operating income (loss):
Electric	$	22,788	$	21,091
Natural gas distribution	58,238		58,505
Pipeline	22,650		13,040
Construction services	38,884		35,217
Other	(6,613)		(9,332)
Total operating income	$	135,947	$	118,521
Income (loss) from continuing operations:
Regulated operations:
Electric	$	17,869	$	16,607
Natural gas distribution	40,070		38,928
Pipeline	15,404		8,929
	73,343		64,464
Non-regulated operations:
Pipeline	(346)		(458)
Construction services	28,214		28,809
Other	(313)		(8,940)
	27,555		19,411
Income from continuing operations	100,898		83,875
Discontinued operations, net of tax	—		(45,522)
Net income	$	100,898	$	38,353

A reconciliation of reportable segment operating revenues to consolidated operating revenues is as follows:

	Three Months Ended
	March 31,
	2024		2023
	(In thousands)
Operating revenues reconciliation:
Total reportable segment operating revenues	$	1,244,291	$	1,456,465
Other revenue	1,433		1,572
Elimination of intersegment operating revenues	(31,899)		(27,939)
Total consolidated operating revenues	$	1,213,825	$	1,430,098