Segment Information

3 Months Ended

Mar. 31, 2023

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 distribution operations, mobile compressed natural gas distribution and pipeline solutions operations, and project development activities related to our sustainable energy initiatives. 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.

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. The following table presents financial information about our reportable segments:

	Three Months Ended
	March 31,
	2023		2022
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	141,621	$	124,058
Unregulated Energy	76,508		98,822
Total operating revenues, unaffiliated customers	$	218,129	$	222,880
Intersegment Revenues (1)
Regulated Energy	$	649	$	3,833
Unregulated Energy	6,657		1,996
Other businesses	45		606
Total intersegment revenues	$	7,351	$	6,435
Operating Income
Regulated Energy	$	37,625	$	34,681
Unregulated Energy	17,245		20,046
Other businesses and eliminations	45		138
Operating income	54,915		54,865
Other income, net	276		913
Interest charges	7,232		5,339
Income Before Income Taxes	47,959		50,439
Income Taxes	11,615		13,506
Net Income	$	36,344	$	36,933

    

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

(in thousands)	March 31, 2023		December 31, 2022
Identifiable Assets
Regulated Energy segment	$	1,713,149	$	1,716,255
Unregulated Energy segment	441,261		463,239
Other businesses and eliminations	43,141		35,543
Total Identifiable Assets	$	2,197,551	$	2,215,037