v3.24.3
Segment Information
 9 Months Ended
Sep. 30, 2024
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. 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 - September 30, 2024

Three Months Ended - September 30, 2023

Regulated Water

Regulated Natural Gas

Other

Consolidated

Regulated Water

Regulated Natural Gas

Other

Consolidated

Operating revenues

$

334,477 

$

96,731 

$

4,047 

$

435,255 

$

310,591 

$

94,798 

$

5,866 

$

411,255 

Operations and maintenance expense

96,369 

49,002 

(1,003)

144,368 

98,695 

50,006 

(1,683)

147,018 

Purchased gas

-

17,603 

1,492 

19,095 

-

14,408 

2,182 

16,590 

Depreciation and amortization

57,877 

34,318 

406 

92,601 

54,695 

31,141 

199 

86,035 

Interest expense, net (a)

35,094 

22,121 

18,237 

75,452 

30,867 

19,405 

17,376 

67,648 

Allowance for funds used during construction

(4,326)

(1,267)

-

(5,593)

(4,643)

(812)

-

(5,455)

Provision for income taxes (benefit)

19,289 

228 

(3,677)

15,840 

16,186 

(16,905)

(2,992)

(3,711)

Net income (loss)

112,275 

(30,660)

(12,213)

69,402 

99,916 

(9,776)

(10,064)

80,076 

Nine Months Ended - September 30, 2024

Nine Months Ended - September 30, 2023

Regulated Water

Regulated Natural Gas

Other

Consolidated

Regulated Water

Regulated Natural Gas

Other

Consolidated

Operating revenues

$

916,850 

549,250 

$

15,630 

$

1,481,730 

$

871,563 

$

675,076 

$

27,766 

$

1,574,405 

Operations and maintenance expense

282,627 

144,628 

(3,475)

423,780 

274,724 

148,270 

(4,474)

418,520 

Purchased gas

-

175,825 

6,673 

182,498 

-

295,929 

18,909 

314,838 

Depreciation and amortization

172,696 

99,361 

994 

273,051 

161,393 

93,457 

640 

255,490 

Interest expense, net (a)

104,334 

68,346 

47,825 

220,505 

91,103 

67,894 

48,712 

207,709 

Allowance for funds used during construction

(11,976)

(3,527)

-

(15,503)

(12,529)

(2,038)

-

(14,567)

Provision for income taxes (benefit)

54,604 

(38,752)

(8,790)

7,062 

45,559 

(73,703)

(7,467)

(35,611)

Net income (loss)

263,859 

177,563 

(30,863)

410,559 

267,345 

127,400 

(31,967)

362,778 

Capital expenditures

495,259 

436,807 

432 

932,498 

493,851 

377,562 

3,078 

874,491 

(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.