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Segment Information | 9 Months Ended
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Sep. 30, 2022
Segment Information [Abstract] |
Segment Information | Note 12 – Segment Information The Company has twelve 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 three 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, Aqua Infrastructure, 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. Prior to the October 30, 2020 sale of our investment in joint venture, Aqua Infrastructure provided non-utility raw water supply services for firms in the natural gas drilling industry. 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 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. The following table presents information about the Company’s reportable segments:
|  | Three Months Ended |  | Three Months Ended
|  | September 30, 2022 |  | September 30, 2021
|  | Regulated Water |  | Regulated Natural Gas |  | Other |  | Consolidated |  | Regulated Water |  | Regulated Natural Gas |  | Other |  | Consolidated
Operating revenues |  | $ | 301,335 |  | $ | 118,985 |  | $ | 14,298 |  | $ | 434,618 |  | $ | 259,859 |  | $ | 94,752 |  | $ | 7,249 |  | $ | 361,860
Operations and maintenance expense |  |  | 94,854 |  |  | 51,850 |  |  | 4,657 |  |  | 151,361 |  |  | 86,923 |  |  | 53,954 |  |  | (1,522) |  |  | 139,355
Purchased gas |  |  | - |  |  | 41,124 |  |  | 10,917 |  |  | 52,041 |  |  | - |  |  | 20,386 |  |  | 5,102 |  |  | 25,488
Depreciation and amortization |  |  | 51,522 |  |  | 30,295 |  |  | 913 |  |  | 82,730 |  |  | 45,506 |  |  | 28,194 |  |  | 807 |  |  | 74,507
Taxes other than income taxes |  |  | 16,809 |  |  | 5,073 |  |  | 743 |  |  | 22,625 |  |  | 16,291 |  |  | 4,271 |  |  | 496 |  |  | 21,058
Operating income (loss) |  |  | 138,150 |  |  | (9,357) |  |  | (2,932) |  |  | 125,861 |  |  | 111,139 |  |  | (12,053) |  |  | 2,366 |  |  | 101,452
Interest expense, net (a) |  |  | 27,762 |  |  | 20,323 |  |  | 10,893 |  |  | 58,978 |  |  | 27,389 |  |  | 18,406 |  |  | 5,772 |  |  | 51,567
Allowance for funds used during construction |  |  | (5,161) |  |  | (651) |  |  | - |  |  | (5,812) |  |  | (5,407) |  |  | (675) |  |  | - |  |  | (6,082)
Other |  |  | (2,219) |  |  | 838 |  |  | 641 |  |  | (740) |  |  | (1,896) |  |  | 5,329 |  |  | 266 |  |  | 3,699
Income before income taxes |  |  | 117,768 |  |  | (29,867) |  |  | (14,466) |  |  | 73,435 |  |  | 91,053 |  |  | (35,113) |  |  | (3,672) |  |  | 52,268
Provision for income taxes (benefit) |  |  | 19,182 |  |  | (12,734) |  |  | (1,651) |  |  | 4,797 |  |  | 9,230 |  |  | (6,821) |  |  | (644) |  |  | 1,765
Net income (loss) |  | $ | 98,586 |  | $ | (17,133) |  | $ | (12,815) |  | $ | 68,638 |  | $ | 81,823 |  | $ | (28,292) |  | $ | (3,028) |  | $ | 50,503
|  | Nine Months Ended |  | Nine Months Ended
|  | September 30, 2022 |  | September 30, 2021
|  | Regulated Water |  | Regulated Natural Gas |  | Other |  | Consolidated |  | Regulated Water |  | Regulated Natural Gas |  | Other |  | Consolidated
Operating revenues |  | $ | 809,888 |  | $ | 731,897 |  | $ | 40,864 |  | $ | 1,582,649 |  | $ | 736,389 |  | $ | 579,429 |  | $ | 26,639 |  | $ | 1,342,457
Operations and maintenance expense |  |  | 273,757 |  |  | 156,209 |  |  | (1,043) |  |  | 428,923 |  |  | 243,071 |  |  | 157,614 |  |  | (8,740) |  |  | 391,945
Purchased gas |  |  | - |  |  | 321,822 |  |  | 33,074 |  |  | 354,896 |  |  | - |  |  | 183,062 |  |  | 19,476 |  |  | 202,538
Depreciation and amortization |  |  | 150,498 |  |  | 89,130 |  |  | 624 |  |  | 240,252 |  |  | 136,189 |  |  | 83,905 |  |  | 1,529 |  |  | 221,623
Taxes other than income taxes |  |  | 48,262 |  |  | 16,878 |  |  | 2,212 |  |  | 67,352 |  |  | 47,756 |  |  | 13,356 |  |  | 2,107 |  |  | 63,219
Operating income |  |  | 337,371 |  |  | 147,858 |  |  | 5,997 |  |  | 491,226 |  |  | 309,373 |  |  | 141,492 |  |  | 12,267 |  |  | 463,132
Interest expense, net |  |  | 82,920 |  |  | 60,146 |  |  | 23,336 |  |  | 166,402 |  |  | 80,971 |  |  | 56,125 |  |  | 16,551 |  |  | 153,647
Allowance for funds used during construction |  |  | (15,657) |  |  | (2,145) |  |  | - |  |  | (17,802) |  |  | (13,091) |  |  | (831) |  |  | - |  |  | (13,922)
Other |  |  | (5,891) |  |  | 404 |  |  | 2,144 |  |  | (3,343) |  |  | (5,265) |  |  | 4,462 |  |  | (1,213) |  |  | (2,016)
Income before income taxes |  |  | 275,999 |  |  | 89,453 |  |  | (19,483) |  |  | 345,969 |  |  | 246,758 |  |  | 81,736 |  |  | (3,071) |  |  | 325,423
Provision for income taxes (benefit) |  |  | 40,528 |  |  | (44,378) |  |  | (486) |  |  | (4,336) |  |  | 22,056 |  |  | (11,128) |  |  | (611) |  |  | 10,317
Net income (loss) |  | $ | 235,471 |  | $ | 133,831 |  | $ | (18,997) |  | $ | 350,305 |  | $ | 224,702 |  | $ | 92,864 |  | $ | (2,460) |  | $ | 315,106
Capital expenditures |  | $ | 382,853 |  | $ | 335,738 |  | $ | 1,097 |  | $ | 719,688 |  | $ | 404,894 |  | $ | 269,958 |  | $ | 993 |  | $ | 675,845
(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.
|  | September 30, |  | December 31,
|  | 2022 |  | 2021
Total assets: |  |  |  |  |  |
Regulated water |  | $ | 8,666,230 |  | $ | 8,403,586
Regulated natural gas |  |  | 6,163,931 |  |  | 5,960,602
Other |  |  | 449,631 |  |  | 294,090
Consolidated |  | $ | 15,279,792 |  | $ | 14,658,278

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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