Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting Information [Line Items]

Segment Reporting Disclosure [Text Block]

Segment Information

Our reportable business segments are primarily engaged in the electric and natural gas business. The remainder of our operations are presented as other, which primarily consists of unallocated corporate costs and unregulated activity.

We evaluate the performance of these segments based on gross margin. The accounting policies of the operating segments are the same as the parent except that the parent allocates some of its operating expenses to the operating segments according to a methodology designed by management for internal reporting purposes and involves estimates and assumptions.

Financial data for the business segments are as follows (in thousands):

Three Months Ended
September 30, 2021	Electric		Gas		Other		Eliminations		Total
Operating revenues	$	287,473	$	38,482	$	—	$	—	$	325,955
Cost of sales	89,375		9,284		—		—		98,659
Gross margin	198,098		29,198		—		—		227,296
Operating, general and administrative	60,621		20,429		(102)		—		80,948
Property and other taxes	34,066		9,504		2		—		43,572
Depreciation and depletion	38,634		8,478		—		—		47,112
Operating income (loss)	64,777		(9,213)		100		—		55,664
Interest expense, net	(20,429)		(1,640)		(1,214)		—		(23,283)
Other income (expense), net	3,348		2,016		(38)		—		5,326
Income tax (expense) benefit	(1,680)		725		(1,556)		—		(2,511)
Net income (loss)	$	46,016	$	(8,112)	$	(2,708)	$	—	$	35,196
Total assets	$	5,370,432	$	1,291,144	$	5,054	$	—	$	6,666,630
Capital expenditures	$	102,188	$	26,778	$	—	$	—	$	128,966

Three Months Ended
September 30, 2020	Electric		Gas		Other		Eliminations		Total
Operating revenues	$	244,155	$	36,455	$	—	$	—	$	280,610
Cost of sales	61,155		6,883		—		—		68,038
Gross margin	183,000		29,572		—		—		212,572
Operating, general and administrative	54,367		20,059		(1,104)		—		73,322
Property and other taxes	35,532		9,772		2		—		45,306
Depreciation and depletion	36,670		7,619		—		—		44,289
Operating income (loss)	56,431		(7,878)		1,102		—		49,655
Interest expense, net	(21,286)		(1,574)		(817)		—		(23,677)
Other income (expense), net	1,559		459		(1,233)		—		785
Income tax benefit	1,197		607		899		—		2,703
Net income (loss)	$	37,901	$	(8,386)	$	(49)	$	—	$	29,466
Total assets(1)	$	5,031,741	$	1,201,528	$	10,754	$	—	$	6,244,023
Capital expenditures	$	87,432	$	19,073	$	—	$	—	$	106,505

Nine Months Ended
September 30, 2021	Electric		Gas		Other		Eliminations		Total
Operating revenues	$	798,984	$	225,991	$	—	$	—	$	1,024,975
Cost of sales	218,802		92,335		—		—		311,137
Gross margin	580,182		133,656		—		—		713,838
Operating, general and administrative	176,411		60,873		1,629		—		238,913
Property and other taxes	108,050		30,281		6		—		138,337
Depreciation and depletion	115,858		25,038		—		—		140,896
Operating income (loss)	179,863		17,464		(1,635)		—		195,692
Interest expense, net	(62,007)		(4,550)		(3,709)		—		(70,266)
Other income	8,392		4,035		1,505		—		13,932
Income tax (expense) benefit	(2,369)		(1,505)		20		—		(3,854)
Net income (loss)	$	123,879	$	15,444	$	(3,819)	$	—	$	135,504
Total assets	$	5,370,432	$	1,291,144	$	5,054	$	—	$	6,666,630
Capital expenditures	$	253,588	$	57,572	$	—	$	—	$	311,160

Nine Months Ended
September 30, 2020	Electric		Gas		Other		Eliminations		Total
Operating revenues	$	706,718	$	178,507	$	—	$	—	$	885,225
Cost of sales	173,294		47,059		—		—		220,353
Gross margin	533,424		131,448		—		—		664,872
Operating, general and administrative	166,854		61,348		(4,160)		—		224,042
Property and other taxes	107,079		29,700		7		—		136,786
Depreciation and depletion	110,692		23,644		—		—		134,336
Operating income	148,799		16,756		4,153		—		169,708
Interest expense, net	(63,585)		(4,824)		(3,889)		—		(72,298)
Other income (expense)	3,131		863		(4,967)		—		(973)
Income tax benefit (expense)	2,609		(467)		3,085		—		5,227
Net income (loss)	$	90,954	$	12,328	$	(1,618)	$	—	$	101,664
Total assets(1)	$	5,031,741	$	1,201,528	$	10,754	$	—	$	6,244,023
Capital expenditures	$	230,524	$	52,463	$	—	$	—	$	282,987

___________________________

(1) Subsequent to the issuance of our Annual Report on Form 10-K for the year ended December 31, 2020, we determined that Total Assets - Electric and Total Assets - Gas had been incorrectly reported due to an error in the allocation methodology utilized to calculate assets by segment. As a result, the September 30, 2020 Total Assets - Electric and Total Assets - Gas amounts have been corrected from the amounts previously reported to reflect an increase of Total Assets - Electric and a decrease of Total Assets - Gas of $466.9 million. The correction had no impact on net income or the presentation of total assets on the consolidated balance sheets and was determined not to be material.