Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

We use the management approach to identify operating segments. We organize our business around differences in regulatory environment 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 are entirely domestic and are comprised of two reportable segments:

•Regulated Energy. Includes energy distribution and transmission services (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 energy transmission, energy generation (the operations of our Eight Flags' CHP plant), propane operations, and mobile compressed natural gas distribution and pipeline solutions subsidiary. 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. These operations are unregulated as to their rates and services. Effective in the third quarter of 2019, the natural gas marketing and related services subsidiary (PESCO), previously reported in the Unregulated Energy segment, was reflected in discontinued operations.

The remainder of our operations are 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. The following table presents financial information about our reportable segments:

	Three Months Ended
	March 31,
	2021		2020
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	120,721	$	102,469
Unregulated Energy	70,466		50,221
Total operating revenues, unaffiliated customers	$	191,187	$	152,690
Intersegment Revenues (1)
Regulated Energy	$	476	$	486
Unregulated Energy	4,293		3,791
Other businesses	132		132
Total intersegment revenues	$	4,901	$	4,409
Operating Income
Regulated Energy	$	32,864	$	27,888
Unregulated Energy	19,105		13,862
Other businesses and eliminations	(372)		384
Operating income	51,597		42,134
Other income, net	385		3,319
Interest charges	5,105		5,814
Income from Continuing Operations before Income Taxes	46,877		39,639
Income Taxes on Continuing Operations	12,405		10,598
Income from Continuing Operations	34,472		29,041
Loss from Discontinued Operations, Net of Tax	(6)		(111)
Net Income	$	34,466	$	28,930

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

(in thousands)	March 31, 2021		December 31, 2020
Identifiable Assets
Regulated Energy segment	$	1,559,260	$	1,547,619
Unregulated Energy segment	352,271		347,665
Other businesses and eliminations	42,419		37,203
Total identifiable assets	$	1,953,950	$	1,932,487