Segment Information

12 Months Ended

Dec. 31, 2016

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. Our operations comprise two reportable segments:

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

• Unregulated Energy. Includes propane distribution, propane and crude oil wholesale marketing and natural gas marketing operations, which are unregulated as to their rates and services. Effective April 2015, this segment includes Aspire Energy, whose services include natural gas gathering, processing, transportation and supply (See Note 4, Acquisitions and Dispositions, regarding the merger with Gatherco). Effective June 2016, this segment also includes electricity and steam generation through Eight Flags' CHP plant. 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.

The remainder of our operations is presented as “Other businesses and eliminations”, which consists of unregulated subsidiaries that own real estate leased to Chesapeake Utilities, as well as certain corporate costs not allocated to other operations. We had previously identified "Other" as a separate reportable segment, which consisted primarily of BravePoint, our former advanced information services subsidiary. As a result of the sale of that subsidiary in October 2014, "Other" is no longer a separate reportable segment.

The following table presents information about our reportable segments.

	For the Year Ended December 31,
	2016			2015		2014
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	302,402		$	300,674	$	299,345
Unregulated Energy	196,458			158,570		184,557
Other businesses and eliminations	—			—		14,932
Total operating revenues, unaffiliated customers	$	498,860		$	459,244	$	498,834
Intersegment Revenues(1)
Regulated Energy	$	3,287		$	1,228	$	1,097
Unregulated Energy	7,321			3,537		404
Other businesses	880			880		979
Total intersegment revenues	$	11,488		$	5,645	$	2,480
Operating Income
Regulated Energy	$	69,851		$	60,985	$	50,451
Unregulated Energy	13,844			16,355		11,723
Other businesses and eliminations	401			418		105
Operating Income	84,096			77,758		62,279
Gains from sales of businesses	—			—		7,139
Other (expense) income	(441		)	293		101
Interest charges	10,639			10,006		9,482
Income Before Income taxes	73,016			68,045		60,037
Income taxes	28,341			26,905		23,945
Net Income	$	44,675		$	41,140	$	36,092
Depreciation and Amortization
Regulated Energy	$	25,677		$	24,195	$	21,915
Unregulated Energy	6,386			5,679		3,994
Other businesses and eliminations	96			98		407
Total depreciation and amortization	$	32,159		$	29,972	$	26,316
Capital Expenditures
Regulated Energy	$	139,994		$	98,372	$	84,959
Unregulated Energy	23,984			38,347		9,648
Other businesses	5,398			5,994		3,450
Total capital expenditures	$	169,376		$	142,713	$	98,057

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

	As of December 31,
	2016		2015
Identifiable Assets
Regulated Energy	$	986,752	$	872,065
Unregulated Energy	226,368		171,840
Other businesses	16,099		23,516
Total identifiable assets	$	1,229,219	$	1,067,421

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