On March 16, 2020, the Company completed the Peoples Gas Acquisition, marking the Company’s entrance into the regulated natural gas business. The operating results of Peoples are included in the consolidated financial statements for the period since the acquisition date. As a result, the Company now has eleven operating segments and two reportable segments. The Regulated Water segment is comprised of eight operating segments representing its water and wastewater regulated utility companies, which are organized by the states where the Company provides water and wastewater services. The eight water and wastewater utility operating segments are aggregated into one reportable segment, because each of these operating segments has the following similarities: economic characteristics, nature of services, production processes, customers, water distribution or wastewater collection methods, and the nature of the regulatory environment. The Regulated Natural Gas segment is comprised of one operating segment representing natural gas utility companies, acquired in the Peoples Gas Acquisition, for which the Company provides natural gas distribution services.

In addition to the Company’s two reportable segments, we include two of our operating segments within the Other category below. These segments are not quantitatively significant and are comprised of Aqua Infrastructure and Aqua Resources. Aqua Infrastructure provides non-utility raw water supply services for firms in the natural gas drilling industry. Aqua Resources manages a water system operating and maintenance contract and offers, through a third-party, water and sewer service line protection solutions and repair services to households. In addition to these segments, Other is comprised of business activities not included in the reportable segments, including corporate costs that have not been allocated to the Regulated Water and Regulated Natural Gas segments and intersegment eliminations. Corporate costs include general and administrative expenses, and interest expense. The Company reports these corporate costs within Other as they relate to corporate-focused responsibilities and decisions and are not included in internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments.

The following table presents information about the Company’s reportable segments, including the operating results and capital expenditures of the Regulated Natural Gas segment for the period since the completion of the Peoples Gas Acquisition on March 16, 2020:



	Three Months Ended								Three Months Ended
	March 31, 2020								March 31, 2019
	Regulated Water		Regulated Natural Gas		Other		Consolidated		Regulated Water		Other		Consolidated
Operating revenues	$	216,197	$	38,544	$	844	$	255,585	$	200,220	$	912	$	201,132
Operations and maintenance expense		73,694		8,823		24,120		106,637		74,338		4,976		79,314
Purchased gas		-		12,770		-		12,770		-		-		-
Depreciation and amortization		41,511		4,569		165		46,245		39,261		149		39,410
Operating income (loss)		86,506		11,715		(24,724)		73,497		72,865		(5,426)		67,439
Interest expense, net		25,495		1,887		2,705		30,087		23,658		4,192		27,850
Allowance for funds used during construction		2,912		36		-		2,948		4,056		-		4,056
Change in fair value of interest rate swap agreements		-		-		-		-		-		34,782		34,782
Equity (loss) earnings in joint venture		-		-		(127)		(127)		-		543		543
Provision for income taxes (benefit)		3,127		(3,448)		(6,803)		(7,124)		936		(9,106)		(8,170)
Net income (loss)		59,934		13,398		(21,551)		51,781		52,169		(35,245)		16,924
Capital expenditures		110,606		8,128		-		118,734		133,792		-		133,792