CHESAPEAKE UTILITIES CORPCPK
CHESAPEAKE UTILITIES CORP Segments Disclosure
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 President and 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 sustainable energy investments including renewable natural gas related investments. 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 are presented as “Other businesses and eliminations,” which consists of unregulated subsidiaries that own real estate leased to the Company, as well as certain corporate costs not allocated to other operations.
The following tables present information about our reportable segments:
| For the Year Ended December 31, | |||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||
| (in millions) | Regulated Energy | Unregulated Energy | Other and Eliminations (1) | Total | Regulated Energy | Unregulated Energy | Other and Eliminations (1) | Total | |||||||||||||||||||||
| Operating revenues, unaffiliated customers | $ | 685.7 | $ | 244.3 | $ | 0.2 | $ | 930.2 | $ | 578.3 | $ | 208.9 | $ | 0.2 | $ | 787.4 | |||||||||||||
Intersegment revenues (2) | 2.1 | 27.6 | (29.9) | (0.2) | 5.1 | 19.5 | (24.8) | (0.2) | |||||||||||||||||||||
| 687.8 | 271.9 | (29.7) | 930.0 | 583.4 | 228.4 | (24.6) | 787.2 | ||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Natural gas, propane and electric costs | 193.8 | 127.3 | (29.6) | 291.5 | 144.2 | 100.2 | (24.6) | 219.8 | |||||||||||||||||||||
| Operations and maintenance expenses | 169.0 | 84.6 | (0.4) | 253.2 | 158.5 | 74.4 | (0.3) | 232.6 | |||||||||||||||||||||
| Depreciation and amortization | 70.9 | 20.8 | — | 91.7 | 48.8 | 16.9 | — | 65.7 | |||||||||||||||||||||
Other segment items (3) | 32.1 | 5.6 | — | 37.7 | 35.7 | 5.2 | — | 40.9 | |||||||||||||||||||||
| Operating income | $ | 222.0 | $ | 33.6 | $ | 0.3 | $ | 255.9 | $ | 196.2 | $ | 31.7 | $ | 0.3 | $ | 228.2 | |||||||||||||
| Other income, net | 9.6 | 2.0 | |||||||||||||||||||||||||||
| Interest charges | 72.5 | 68.4 | |||||||||||||||||||||||||||
| Income before income taxes | 193.0 | 161.8 | |||||||||||||||||||||||||||
| Income taxes | 52.7 | 43.2 | |||||||||||||||||||||||||||
| Net Income | $ | 140.3 | $ | 118.6 | |||||||||||||||||||||||||
| Capital expenditures | $ | 409.8 | $ | 39.7 | $ | 20.9 | $ | 470.4 | $ | 320.2 | $ | 33.9 | $ | 1.7 | $ | 355.8 | |||||||||||||
(1) Other revenues and other operating income (loss) amounts are attributable to eliminations and unregulated subsidiaries that own real estate leased to the Company.
(2) All significant intersegment revenues are billed at market rates and have been eliminated from consolidated revenues.
(3) Other segment items for each reportable segment include: Regulated Energy- Other taxes and transaction and transition costs related to the acquisition and integration of FCG; Unregulated Energy - Other taxes.
| For the Year Ended December 31, 2023 | ||||||||||||||
| (in millions) | Regulated Energy | Unregulated Energy | Other and Eliminations (1) | Total | ||||||||||
| Operating revenues, unaffiliated customers | $ | 471.6 | $ | 199.0 | $ | 0.2 | $ | 670.8 | ||||||
Intersegment revenues (2) | 2.0 | 24.1 | (26.3) | (0.2) | ||||||||||
| 473.6 | 223.1 | (26.1) | 670.6 | |||||||||||
| Less: | ||||||||||||||
| Natural gas, propane and electric costs | 140.0 | 102.5 | (26.0) | 216.5 | ||||||||||
| Operations and maintenance expenses | 125.3 | 73.8 | (0.3) | 198.8 | ||||||||||
| Depreciation and amortization | 48.2 | 17.3 | — | 65.5 | ||||||||||
Other segment items (3) | 33.9 | 5.1 | — | 39.0 | ||||||||||
| Operating income | $ | 126.2 | $ | 24.4 | $ | 0.2 | $ | 150.8 | ||||||
| Other income, net | 1.4 | |||||||||||||
| Interest charges | 36.9 | |||||||||||||
| Income before income taxes | 115.3 | |||||||||||||
| Income taxes | 28.1 | |||||||||||||
| Net Income | $ | 87.2 | ||||||||||||
Capital expenditures (4) | $ | 1,095.9 | $ | 40.3 | $ | 1.8 | $ | 1,138.0 | ||||||
(1) Other revenues and other operating income (loss) amounts are attributable to eliminations and unregulated subsidiaries that own real estate leased to the Company.
(2) All significant intersegment revenues are billed at market rates and have been eliminated from consolidated revenues.
(3) Other segment items for each reportable segment include: Regulated Energy - Other taxes and transaction and transition costs related to the acquisition and integration of FCG; Unregulated Energy - Other taxes.
(4) Regulated capital expenditures in 2023 include our acquisition of FCG for $922.8 million. See Note 4 for additional details.
| As of December 31, | |||||||||||
| (in millions) | 2025 | 2024 | |||||||||
Identifiable Assets | |||||||||||
| Regulated Energy segment | $ | 3,425.3 | $ | 3,042.9 | |||||||
Unregulated Energy segment | 495.0 | 486.4 | |||||||||
| Other businesses and eliminations | 74.5 | 47.7 | |||||||||
| Total identifiable assets | $ | 3,994.8 | $ | 3,577.0 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.