Segment Information

6 Months Ended

Jun. 30, 2023

Segment Information [Abstract]

Segment Information

Note 13 – Segment Information 

The Company has eleven operating segments and two reportable segments. The Regulated Water segment is comprised of eight operating segments representing its water and wastewater regulated utility companies, which are organized by the states where the Company provides water and wastewater services. The eight water and wastewater utility operating segments are aggregated into one reportable segment, because each of these operating segments has the following similarities: economic characteristics, nature of services, production processes, customers, water distribution or wastewater collection methods, and the nature of the regulatory environment. The Regulated Natural Gas segment is comprised of one operating segment representing natural gas utility companies, acquired in the Peoples Gas Acquisition, for which the Company provides natural gas distribution services.

In addition to the Company’s two reportable segments, we include two of our operating segments within the Other category below. These segments are not quantitatively significant and are comprised of our non-regulated natural gas operations and Aqua Resources. Our non-regulated natural gas operations consist of utility service line protection solutions and repair services to households and the operation of gas marketing and production entities. Aqua Resources offers, through a third party, water and sewer service line protection solutions and repair services to households. In addition to these segments, Other is comprised of business activities not included in the reportable segments, corporate costs that have not been allocated to the Regulated Water and Regulated Natural Gas segments, and intersegment eliminations. Corporate costs include general and administrative expenses, and interest expense. The Company reports these corporate costs within Other as they relate to corporate-focused responsibilities and decisions and are not included in internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments.

The following table presents information about the Company’s reportable segments:

	Three Months Ended								Three Months Ended
	June 30, 2023								June 30, 2022
	Regulated Water		Regulated Natural Gas		Other		Consolidated		Regulated Water		Regulated Natural Gas		Other		Consolidated
Operating revenues	$	293,672	$	138,983	$	4,045	$	436,700	$	269,355	$	167,729	$	11,672	$	448,756
Operations and maintenance expense		93,227		41,114		(833)		133,508		92,815		44,907		(2,741)		134,981
Purchased gas		-		39,665		2,268		41,933		-		63,392		11,751		75,143
Depreciation and amortization		53,231		32,188		242		85,661		50,260		29,131		(215)		79,176
Interest expense, net (a)		30,523		20,982		16,707		68,212		27,604		19,171		7,622		54,397
Allowance for funds used during construction		(2,940)		(484)		-		(3,424)		(5,347)		(804)		-		(6,151)
Provision for income taxes (benefit)		15,859		(13,314)		(2,808)		(263)		13,847		(5,170)		(577)		8,100
Net income (loss)		90,027		13,630		(12,389)		91,268		76,342		11,478		(5,529)		82,291
	Six Months Ended								Six Months Ended
	June 30, 2023								June 30, 2022
	Regulated Water		Regulated Natural Gas		Other		Consolidated		Regulated Water		Regulated Natural Gas		Other		Consolidated
Operating revenues	$	560,972		580,278	$	21,900	$	1,163,150	$	508,553		612,912	$	26,566	$	1,148,031
Operations and maintenance expense		176,029		98,264		(2,791)		271,502		178,903		104,359		(5,700)		277,562
Purchased gas		-		281,521		16,727		298,248		-		280,698		22,157		302,855
Depreciation and amortization		106,698		62,316		441		169,455		98,976		58,835		(289)		157,522
Interest expense, net (a)		60,236		48,489		31,336		140,061		55,159		39,823		12,442		107,424
Allowance for funds used during construction		(7,886)		(1,226)		-		(9,112)		(10,496)		(1,493)		(1)		(11,990)
Provision for income taxes (benefit)		29,373		(56,798)		(4,475)		(31,900)		21,346		(31,645)		1,166		(9,133)
Net income (loss)		167,429		137,176		(21,903)		282,702		136,885		150,964		(6,182)		281,667
Capital expenditures		329,862		215,212		2,526		547,600		216,612		207,394		639		424,645

^(a) The regulated water and regulated natural gas segments report interest expense that includes long-term debt that was pushed-down to the regulated operating subsidiaries from Essential Utilities, Inc.

	June 30,		December 31,
	2023		2022
Total assets:
Regulated water	$	9,144,894	$	8,792,633
Regulated natural gas		6,548,153		6,528,654
Other		408,888		397,820
Consolidated	$	16,101,935	$	15,719,107