Business segment data

9 Months Ended

Sep. 30, 2018

The Company's reportable segments are those that are based on the Company's method of internal reporting, which generally segregates the strategic business units due to differences in products, services and regulation. The internal reporting of these operating segments is defined based on the reporting and review process used by the Company's chief executive officer. The vast majority of the Company's operations are located within the United States.

The electric segment generates, transmits and distributes electricity in Montana, North Dakota, South Dakota and Wyoming. The natural gas distribution segment distributes natural gas in those states, as well as in Idaho, Minnesota, Oregon and Washington. These operations also supply related value-added services.

The pipeline and midstream segment provides natural gas transportation, underground storage and gathering services through regulated and nonregulated pipeline systems primarily in the Rocky Mountain and northern Great Plains regions of the United States. This segment also provides cathodic protection and other energy-related services.

The construction materials and contracting segment operations mine, process and sell construction aggregates (crushed stone, sand and gravel); produce and sell asphalt mix; and supply ready-mixed concrete. This segment focuses on vertical integration of its contracting services with its construction materials to support the aggregate based product lines including aggregate placement, asphalt and concrete paving, and site development and grading. Although not common to all locations, other products include the sale of cement, liquid asphalt for various commercial and roadway applications, various finished concrete products and other building materials and related contracting services. This segment operates in the central, southern and western United States and Alaska and Hawaii.

The construction services segment provides inside and outside specialty contracting services. Its outside services include design, construction and maintenance of overhead and underground electrical distribution and transmission lines, substations, external lighting, traffic signalization, and gas pipelines, as well as utility excavation and the manufacture and distribution of transmission line construction equipment. Its inside services include design, construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, and mechanical piping and services. This segment also constructs and maintains renewable energy projects. These specialty contracting services are provided to utilities and large manufacturing, commercial, industrial, institutional and government customers.

The Other category includes the activities of Centennial Capital, which insures various types of risks as a captive insurer for certain of the Company's subsidiaries. The function of the captive insurer is to fund the self-insured layers of the insured Company's general liability, automobile liability, pollution liability and other coverages. Centennial Capital also owns certain real and personal property. The Other category also includes certain general and administrative costs (reflected in operation and maintenance expense) and interest expense which were previously allocated to the refining business and Fidelity and do not meet the criteria for income (loss) from discontinued operations. The Other category also includes Centennial Resources' former investment in Brazil.

Discontinued operations includes the results and supporting activities of Dakota Prairie Refining and Fidelity other than certain general and administrative costs and interest expense as described above. For more information on discontinued operations, see Note 10.

The information below follows the same accounting policies as described in Note 1 of the Company's Notes to Consolidated Financial Statements in the 2017 Annual Report. Information on the Company's segments was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
	(In thousands)
External operating revenues:
Regulated operations:
Electric	$	86,080	$	91,531	$	251,984	$	254,330
Natural gas distribution	92,248		92,253		554,452		566,364
Pipeline and midstream	22,289		23,152		45,325		45,341
	200,617		206,936		851,761		866,035
Nonregulated operations:
Pipeline and midstream	6,782		5,356		16,640		13,518
Construction materials and contracting	743,763		686,010		1,466,435		1,388,212
Construction services	329,578		374,111		986,649		1,009,693
Other	47		135		193		654
	1,080,170		1,065,612		2,469,917		2,412,077
Total external operating revenues	$	1,280,787	$	1,272,548	$	3,321,678	$	3,278,112



	Three Months Ended							Nine Months Ended
	September 30,							September 30,
	2018			2017				2018			2017
	(In thousands)
Intersegment operating revenues:
Regulated operations:
Electric	$	—		$	—			$	—		$	—
Natural gas distribution	—			—				—			—
Pipeline and midstream	3,070			3,081				31,252			30,923
	3,070			3,081				31,252			30,923
Nonregulated operations:
Pipeline and midstream	117			38				233			132
Construction materials and contracting	165			142				501			400
Construction services	782			415				1,332			715
Other	3,037			1,910				8,343			5,411
	4,101			2,505				10,409			6,658
Intersegment eliminations	(7,171		)	(5,586		)		(41,661		)	(37,581		)
Total intersegment operating revenues	$	—		$	—			$	—		$	—

Earnings (loss) on common stock:
Regulated operations:
Electric	$	15,284		$	15,712			$	37,500		$	37,904
Natural gas distribution	(11,887		)	(10,883		)		13,884			14,181
Pipeline and midstream	10,109			5,853				20,809			15,901
	13,506			10,682				72,193			67,986
Nonregulated operations:
Pipeline and midstream	848			95				1,136			(770		)
Construction materials and contracting	78,876			63,221				79,691			64,477
Construction services	9,278			13,144				38,457			32,896
Other	4,861			552				1,928			(1,888		)
	93,863			77,012				121,212			94,715
Intersegment eliminations	—			1,855			*	—			6,121			*
Earnings on common stock before income (loss) from discontinued operations	107,369			89,549				193,405			168,822
Income (loss) from discontinued operations, net of tax	(118		)	(2,198		)	*	85			(3,702		)	*
Total earnings on common stock	$	107,251		$	87,351			$	193,490		$	165,120


*	Includes the eliminations for the presentation of income tax adjustments between continuing and discontinued operations.