Segment Information

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

Segment Information

SEGMENT INFORMATION

We use the management approach to identify operating segments. We organize our business around differences in regulatory environment and/or products or services, and the operating results of each segment are regularly reviewed by the chief operating decision maker (our Chief Executive Officer) in order to make decisions about resources and to assess performance. The segments are evaluated based on their pre-tax operating income. Our operations comprise three operating segments:

• Regulated Energy. The Regulated Energy segment includes natural gas distribution, natural gas transmission operations and electric distribution operations. All operations in this segment are regulated, as to their rates and services, by the PSCs having jurisdiction in each operating territory or by the FERC in the case of Eastern Shore.

• Unregulated Energy. The Unregulated Energy segment includes propane distribution and wholesale marketing operations, and natural gas marketing operations, which are unregulated as to their rates and services. Also included in this segment are other unregulated energy services, such as energy-related merchandise sales and heating, ventilation and air conditioning, plumbing and electrical services.

• Other. Prior to September 30, 2014 our “Other” segment consisted primarily of our advanced information services subsidiary. Also included in this segment are our unregulated subsidiaries that own real estate leased to Chesapeake and certain corporate costs not allocated to other operations. On October 1, 2014, we sold BravePoint (see Note 4, Acquisitions and Disposition, for further details).

The following table presents information about our reportable segments.

	For the Year Ended December 31,
	2014		2013		2012
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	299,345	$	263,573	$	245,042
Unregulated Energy	184,557		161,760		130,020
Other	14,932		18,973		17,440
Total operating revenues, unaffiliated customers	$	498,834	$	444,306	$	392,502
Intersegment Revenues(1)
Regulated Energy	$	1,097	$	1,064	$	1,166
Unregulated Energy	404		4,963		3,029
Other	979		1,017		917
Total intersegment revenues	$	2,480	$	7,044	$	5,112
Operating Income
Regulated Energy	$	50,451	$	50,084	$	46,999
Unregulated Energy	11,723		12,353		8,355
Other	105		297		1,281
Operating Income	62,279		62,734		56,635
Gain from sale of businesses	7,139		—		—
Other income	101		372		271
Interest charges	9,482		8,234		8,747
Income Before Income taxes	60,037		54,872		48,159
Income taxes	23,945		22,085		19,296
Net Income	$	36,092	$	32,787	$	28,863
Depreciation and Amortization
Regulated Energy	$	21,915	$	19,822	$	18,653
Unregulated Energy	3,994		3,686		3,420
Other and eliminations	407		457		437
Total depreciation and amortization	$	26,316	$	23,965	$	22,510
Capital Expenditures
Regulated Energy	$	84,959	$	95,944	$	69,056
Unregulated Energy	9,648		4,829		3,969
Other	3,450		7,266		5,185
Total capital expenditures	$	98,057	$	108,039	$	78,210

⁽¹⁾ All significant intersegment revenues are billed at market rates and have been eliminated from consolidated revenues.

	As of December 31,
	2014		2013
Identifiable Assets
Regulated Energy	$	796,021	$	708,950
Unregulated Energy	84,732		100,585
Other	23,716		27,987
Total identifiable assets	$	904,469	$	837,522

Our operations are now entirely domestic. Previously, BravePoint had infrequent transactions in foreign countries, which were denominated and paid primarily in U.S. dollars. These transactions were immaterial to our consolidated revenues.