| Segment Information |
Note 13 – Segment Information The Company identifies a business as an operating segment if: i) it engages in business activities from which it may earn revenues and incur expenses; ii) its operating results are regularly reviewed by the chief operating decision maker (“CODM”), who is the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess its performance; and iii) it has available discrete financial information. The CODM reviews financial information, such as budget-to-actual variances and comparisons against prior period, at the operating segment level, and uses that information when making decisions about the allocation of operating and capital resources to each segment. The CODM evaluates the performance of the Company’s reportable segments based on a number of factors, the primary measure being the net income (loss) of each segment. 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 the Company’s natural gas utility companies, which provide natural gas distribution to retail, commercial, and industrial customers. In addition to the Company’s two reportable segments, the Company includes two operating segments within the Other category below. These segments are not quantitatively significant and are comprised of its non-regulated natural gas operations and Aqua Resources. 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 and reconciliations to consolidated amounts. Asset information by segment is not utilized for purposes of assessing performance or allocating resources, and, as a result, such information is not presented. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Three Months Ended | | | June 30, 2025 | | June 30, 2024 | | | Regulated Water | | Regulated Natural Gas | | Total Reportable Segments | | Other and Elims | | Consolidated | | Regulated Water | | Regulated Natural Gas | | Total Reportable Segments | | Other and Elims | | Consolidated | Revenues from external customers | | $ | 332,282 | | $ | 176,761 | | $ | 509,043 | | $ | 5,864 | | $ | 514,907 | | $ | 302,479 | | $ | 127,801 | | $ | 430,280 | | $ | 4,126 | | $ | 434,406 | Intersegment revenues | | | - | | | 560 | | | 560 | | | (560) | | | - | | | - | | | 387 | | | 387 | | | (387) | | | - | Total operating revenues | | $ | 332,282 | | $ | 177,321 | | $ | 509,603 | | $ | 5,304 | | $ | 514,907 | | $ | 302,479 | | $ | 128,188 | | $ | 430,667 | | $ | 3,739 | | $ | 434,406 | Operations and maintenance expense | | $ | 100,149 | | $ | 49,786 | | $ | 149,935 | | $ | (1,425) | | $ | 148,510 | | $ | 95,575 | | $ | 49,709 | | $ | 145,284 | | $ | (2,772) | | $ | 142,512 | Purchased gas | | $ | - | | $ | 53,532 | | $ | 53,532 | | $ | 3,203 | | $ | 56,735 | | $ | - | | $ | 32,680 | | $ | 32,680 | | $ | 1,048 | | $ | 33,728 | Depreciation and amortization | | $ | 64,731 | | $ | 38,299 | | $ | 103,030 | | $ | 489 | | $ | 103,519 | | $ | 57,625 | | $ | 32,632 | | $ | 90,257 | | $ | 389 | | $ | 90,646 | Taxes other than income taxes | | $ | 17,655 | | $ | 2,491 | | $ | 20,146 | | $ | 726 | | $ | 20,872 | | $ | 16,425 | | $ | 5,103 | | $ | 21,528 | | $ | 705 | | $ | 22,233 | Interest expense, net | | $ | 37,032 | | $ | 25,833 | | $ | 62,865 | | $ | 16,643 | | $ | 79,508 | | $ | 34,450 | | $ | 20,869 | | $ | 55,319 | | $ | 17,450 | | $ | 72,769 | Allowance for funds used during construction | | $ | (5,622) | | $ | (1,405) | | $ | (7,027) | | $ | - | | $ | (7,027) | | $ | (3,962) | | $ | (1,267) | | $ | (5,229) | | $ | - | | $ | (5,229) | Gain on sale of other assets | | $ | (256) | | $ | - | | $ | (256) | | $ | - | | $ | (256) | | $ | (197) | | $ | - | | $ | (197) | | $ | (6) | | $ | (203) | Other segment items (b) | | $ | 273 | | $ | (127) | | $ | 146 | | $ | 501 | | $ | 647 | | $ | 379 | | $ | 9 | | $ | 388 | | $ | 313 | | $ | 701 | Provision for income taxes (benefit) | | $ | 17,840 | | $ | (8,604) | | $ | 9,236 | | $ | (4,664) | | $ | 4,572 | | $ | 14,505 | | $ | (9,830) | | $ | 4,675 | | $ | (2,811) | | $ | 1,864 | Net income (loss) | | $ | 100,480 | | $ | 17,516 | | $ | 117,996 | | $ | (10,169) | | $ | 107,827 | | $ | 87,679 | | $ | (1,717) | | $ | 85,962 | | $ | (10,577) | | $ | 75,385 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended | | Six Months Ended | | | June 30, 2025 | | June 30, 2024 | | | Regulated Water | | Regulated Natural Gas | | Total Reportable Segments | | Other and Elims | | Consolidated | | Regulated Water | | Regulated Natural Gas | | Total Reportable Segments | | Other and Elims | | Consolidated | Revenues from external customers | | $ | 633,130 | | $ | 646,212 | | $ | 1,279,342 | | $ | 19,191 | | $ | 1,298,533 | | $ | 582,372 | | $ | 451,133 | | $ | 1,033,505 | | $ | 12,970 | | $ | 1,046,475 | Intersegment revenues | | | - | | | 1,906 | | | 1,906 | | | (1,906) | | | - | | | - | | | 1,386 | | | 1,386 | | | (1,386) | | | - | Total operating revenues | | $ | 633,130 | | $ | 648,118 | | $ | 1,281,248 | | $ | 17,285 | | $ | 1,298,533 | | $ | 582,372 | | $ | 452,519 | | $ | 1,034,891 | | $ | 11,584 | | $ | 1,046,475 | Operations and maintenance expense | | $ | 189,567 | | $ | 105,461 | | $ | 295,028 | | $ | (8,694) | | $ | 286,334 | | $ | 186,258 | | $ | 95,626 | | $ | 281,884 | | $ | (2,472) | | $ | 279,412 | Purchased gas | | $ | - | | $ | 230,491 | | $ | 230,491 | | $ | 10,885 | | $ | 241,376 | | $ | - | | $ | 158,222 | | $ | 158,222 | | $ | 5,181 | | $ | 163,403 | Depreciation and amortization | | $ | 125,360 | | $ | 76,638 | | $ | 201,998 | | $ | 898 | | $ | 202,896 | | $ | 114,819 | | $ | 65,043 | | $ | 179,862 | | $ | 588 | | $ | 180,450 | Taxes other than income taxes | | $ | 33,247 | | $ | 8,245 | | $ | 41,492 | | $ | 2,259 | | $ | 43,751 | | $ | 32,749 | | $ | 12,323 | | $ | 45,072 | | $ | 2,185 | | $ | 47,257 | Interest expense, net | | $ | 73,595 | | $ | 51,973 | | $ | 125,568 | | $ | 35,776 | | $ | 161,344 | | $ | 69,240 | | $ | 46,225 | | $ | 115,465 | | $ | 29,588 | | $ | 145,053 | Allowance for funds used during construction | | $ | (10,354) | | $ | (2,505) | | $ | (12,859) | | $ | - | | $ | (12,859) | | $ | (7,650) | | $ | (2,260) | | $ | (9,910) | | $ | - | | $ | (9,910) | Gain on sale of other assets (a) | | $ | (493) | | $ | - | | $ | (493) | | $ | - | | $ | (493) | | $ | (241) | | $ | (91,581) | | $ | (91,822) | | $ | (6) | | $ | (91,828) | Other segment items (b) | | $ | 537 | | $ | (254) | | $ | 283 | | $ | 308 | | $ | 591 | | $ | 299 | | $ | (322) | | $ | (23) | | $ | 282 | | $ | 259 | Provision for income taxes (benefit) | | $ | 13,269 | | $ | (28,952) | | $ | (15,683) | | $ | (340) | | $ | (16,023) | | $ | 35,315 | | $ | (38,980) | | $ | (3,665) | | $ | (5,113) | | $ | (8,778) | Net income (loss) | | $ | 208,402 | | $ | 207,021 | | $ | 415,423 | | $ | (23,807) | | $ | 391,616 | | $ | 151,583 | | $ | 208,223 | | $ | 359,806 | | $ | (18,649) | | $ | 341,157 | Capital expenditures | | $ | 316,378 | | $ | 296,251 | | $ | 612,629 | | $ | - | | $ | 612,629 | | $ | 302,085 | | $ | 246,783 | | $ | 548,868 | | $ | - | | $ | 548,868 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) Refer to Note 4 – Dispositions for additional information. (b) Other segment items mainly consists of the non-service cost component of pension and other postretirement benefits for our regulated segments.
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