Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.

As part of the adoption of ASC 606 - Revenue from Contracts with Customers, the Company elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is 12 months or less.

The Company recognizes revenue from the sale of emissions allowances allocated under the environmental programs in certain states. The Company has the right to payment when the allowances are sold at auction. Revenue is recognized on a point in time basis within the quarter that the auction is held. The revenues associated with the sale of these allowances are deferred as a component of the respective jurisdiction’s regulatory asset or liability for environmental compliance. For more information on the Company’s regulatory assets and liabilities, see Note 10.

Changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. The Company recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reasonably estimated. Change orders and claims are negotiated in the normal course of business and represent management’s estimates of additional contract revenues that have been earned and are probable of collection.

The Company received notification in 2023 from a customer on a large project with a contract that was billed on a time and materials basis with no stated maximum price, that it is withholding payment of approximately $31.2 million on remaining outstanding billings, including retention. The Company believes it has substantial defenses against these claims based upon the terms of the contract and the Company's belief that it has fully performed under the terms of the contract. The Company believes collection of the remaining outstanding billings, including retention is probable and, as a result, the Company has recognized the revenue from this project in its results. However, there is uncertainty surrounding this matter, including the potential long-term nature of dispute resolution, the Company filing a lien on the property and the broad range of possible consideration amounts as a result of negotiations and potential litigation to resolve the dispute.

In the following tables, revenue is disaggregated by the type of customer or service provided. The Company believes this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The table also includes a reconciliation of the disaggregated revenue by reportable segments. For more information on the Company's business segments, see Note 15.


Three Months Ended June 30, 2024	Electric		Natural gas distribution		Pipeline		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	31,437	$	106,690	$	—	$	—	$	—	$	138,127
Commercial utility sales	41,620		64,274		—		—		—		105,894
Industrial utility sales	11,758		9,268		—		—		—		21,026
Other utility sales	2,065		—		—		—		—		2,065
Natural gas transportation	—		13,324		43,406		—		—		56,730
Natural gas storage	—		—		5,331		—		—		5,331
Electrical & mechanical specialty contracting	—		—		—		502,015		—		502,015
Transmission & distribution specialty contracting	—		—		—		190,881		—		190,881
Other	13,186		5,767		4,110		45		1,418		24,526
Intersegment eliminations	(64)		(49)		(9,055)		(249)		(1,416)		(10,833)
Revenues from contracts with customers	100,002		199,274		43,792		692,692		2		1,035,762
Other revenues	(845)		2,157		39		10,432		—		11,783
Total external operating revenues	$	99,157	$	201,431	$	43,831	$	703,124	$	2	$	1,047,545


Three Months Ended June 30, 2023	Electric		Natural gas distribution		Pipeline		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	30,825	$	120,967	$	—	$	—	$	—	$	151,792
Commercial utility sales	38,262		71,196		—		—		—		109,458
Industrial utility sales	10,370		9,183		—		—		—		19,553
Other utility sales	1,710		—		—		—		—		1,710
Natural gas transportation	—		11,671		34,394		—		—		46,065
Natural gas storage	—		—		3,758		—		—		3,758
Electrical & mechanical specialty contracting	—		—		—		568,307		—		568,307
Transmission & distribution specialty contracting	—		—		—		167,485		—		167,485
Other	11,531		3,272		3,937		177		3,151		22,068
Intersegment eliminations	(27)		(69)		(7,918)		—		(3,151)		(11,165)
Revenues from contracts with customers	92,671		216,220		34,171		735,969		—		1,079,031
Other revenues	(1,682)		2,775		38		10,964		—		12,095
Total external operating revenues	$	90,989	$	218,995	$	34,209	$	746,933	$	—	$	1,091,126


Six Months Ended June 30, 2024	Electric		Natural gas distribution		Pipeline		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	70,659	$	369,793	$	—	$	—	$	—	$	440,452
Commercial utility sales	83,135		226,404		—		—		—		309,539
Industrial utility sales	23,107		23,847		—		—		—		46,954
Other utility sales	4,001		—		—		—		—		4,001
Natural gas transportation	—		27,915		87,043		—		—		114,958
Natural gas storage	—		—		10,713		—		—		10,713
Electrical & mechanical specialty contracting	—		—		—		941,393		—		941,393
Transmission & distribution specialty contracting	—		—		—		367,741		—		367,741
Other	28,816		8,969		6,366		91		2,850		47,092
Intersegment eliminations	(93)		(105)		(39,365)		(336)		(2,833)		(42,732)
Revenues from contracts with customers	209,625		656,823		64,757		1,308,889		17		2,240,111
Revenues out of scope	(2,742)		4,078		86		19,837		—		21,259
Total external operating revenues	$	206,883	$	660,901	$	64,843	$	1,328,726	$	17	$	2,261,370


Six Months Ended June 30, 2023	Electric		Natural gas distribution		Pipeline		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	68,650	$	448,617	$	—	$	—	$	—	$	517,267
Commercial utility sales	74,609		276,122		—		—		—		350,731
Industrial utility sales	21,133		26,021		—		—		—		47,154
Other utility sales	3,484		—		—		—		—		3,484
Natural gas transportation	—		25,175		69,378		—		—		94,553
Natural gas storage	—		—		7,620		—		—		7,620
Electrical & mechanical specialty contracting	—		—		—		1,158,570		—		1,158,570
Transmission & distribution specialty contracting	—		—		—		319,507		—		319,507
Other	23,410		7,993		5,797		209		4,723		42,132
Intersegment eliminations	(55)		(139)		(34,188)		—		(4,723)		(39,105)
Revenues from contracts with customers	191,231		783,789		48,607		1,478,286		—		2,501,913
Revenues out of scope	(4,545)		801		76		22,979		—		19,311
Total external operating revenues	$	186,686	$	784,590	$	48,683	$	1,501,265	$	—	$	2,521,224

The timing of revenue recognition may differ from the timing of invoicing to customers. The timing of invoicing to customers does not necessarily correlate with the timing of revenues being recognized under the cost-to-cost method of accounting. Contracts from contracting services are billed as work progresses in accordance with agreed upon contractual terms. Generally, billing to the customer occurs contemporaneous to revenue recognition. A variance in timing of the billings may result in a contract asset or a contract liability. A contract asset occurs when revenues are recognized under the cost-to-cost measure of progress, which exceeds amounts billed on uncompleted contracts. Such amounts will be billed as standard contract terms allow, usually based on various measures of performance or achievement. A contract liability occurs when there are billings in excess of revenues recognized under the cost-to-cost measure of progress on uncompleted contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation.


	June 30, 2024		December 31, 2023		Change		Location on Consolidated Balance Sheets
	(In thousands)
Contract assets	$	163,466	$	158,861	$	4,605	Receivables, net
Contract liabilities - current	(193,299)		(202,144)		8,845		Accounts payable
Contract liabilities - noncurrent	(2,130)		(291)		(1,839)		Noncurrent liabilities - other
Net contract liabilities	$	(31,963)	$	(43,574)	$	11,611

The Company recognized $24.1 million and $121.7 million in revenue for the three and six months ended June 30, 2024, respectively, which was previously included in contract liabilities at December 31, 2023. The Company recognized $23.4 million and $157.9 million in revenue for the three and six months ended June 30, 2023, respectively, which was previously included in contract liabilities at December 31, 2022.

The Company recognized a net increase in revenues of $35.5 million and $58.0 million for the three and six months ended June 30, 2024, respectively, from performance obligations satisfied in prior periods. The Company recognized a net increase in revenues of $23.1 million and $31.8 million for the three and six months ended June 30, 2023, respectively, from performance obligations satisfied in prior periods.

The remaining performance obligations, also referred to as backlog, at the construction services segment include unrecognized revenues that the Company reasonably expects to be realized. These unrecognized revenues can include: projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Excluded from remaining performance obligations are potential orders under master service agreements. The majority of the Company's construction contracts have an original duration of less than two years.

The remaining performance obligations at the pipeline segment include firm transportation and storage contracts with fixed pricing and fixed volumes. The Company has applied the practical expedient that does not require additional disclosures for contracts with an original duration of less than 12 months, to certain firm transportation, storage and non-regulated contracts. The Company's firm transportation and storage contracts included in the remaining performance obligations have weighted average remaining durations of less than five years and two years, respectively.

At June 30, 2024, the Company's remaining performance obligations were $3.0 billion. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $2.1 billion within the next 12 months or less; $435.4 million within the next 13 to 24 months; and $506.7 million in 25 months or more.