Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document Document And Entity Information [Abstract] | ||
Entity Registrant Name | CHESAPEAKE UTILITIES CORP | |
Trading Symbol | CPK | |
Entity Central Index Key | 19,745 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 16,301,161 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Revenues | ||||
Regulated Energy | $ 70,019 | $ 63,796 | $ 226,630 | $ 235,438 |
Unregulated Energy and other | 38,329 | 28,117 | 130,356 | 119,238 |
Total Operating Revenues | 108,348 | 91,913 | 356,986 | 354,676 |
Operating Expenses | ||||
Regulated Energy cost of sales | 24,644 | 23,161 | 81,184 | 101,414 |
Unregulated Energy and other cost of sales | 28,183 | 17,959 | 85,142 | 73,465 |
Operations | 30,126 | 26,388 | 85,370 | 79,522 |
Maintenance | 3,542 | 2,603 | 8,925 | 8,033 |
Gain from a settlement | 0 | 0 | (130) | (1,500) |
Depreciation and amortization | 8,209 | 7,636 | 23,493 | 22,155 |
Other taxes | 3,488 | 3,257 | 10,725 | 10,000 |
Total Operating Expenses | 98,192 | 81,004 | 294,709 | 293,089 |
Operating Income | 10,156 | 10,909 | 62,277 | 61,587 |
Other (expense) income, net | (28) | 36 | (68) | (3) |
Interest charges | 2,722 | 2,492 | 7,996 | 7,425 |
Income Before Income Taxes | 7,406 | 8,453 | 54,213 | 54,159 |
Income taxes | 2,990 | 3,334 | 21,401 | 21,638 |
Net Income | $ 4,416 | $ 5,119 | $ 32,812 | $ 32,521 |
Weighted Average Common Shares Outstanding: | ||||
Basic (shares) | 15,372,413 | 15,258,819 | 15,324,932 | 15,035,569 |
Diluted (shares) | 15,412,783 | 15,306,843 | 15,365,955 | 15,083,641 |
Earnings Per Share of Common Stock: | ||||
Basic (in dollars per share) | $ 0.29 | $ 0.34 | $ 2.14 | $ 2.16 |
Diluted (in dollars per share) | 0.29 | 0.33 | 2.14 | 2.16 |
Cash Dividends Declared Per Share of Common Stock (in dollars per share) | $ 0.3050 | $ 0.2875 | $ 0.8975 | $ 0.845 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 4,416 | $ 5,119 | $ 32,812 | $ 32,521 |
Other Comprehensive Income (Loss), net of tax: | ||||
Amortization of prior service cost, net of tax of $(8), $(7), $(23) and $(20), respectively | (12) | (10) | (37) | (30) |
Net gain, net of tax of $66, $62, $200 and $187, respectively | 100 | 93 | 300 | 278 |
Cash Flow Hedges, net of tax: | ||||
Unrealized gain (loss) on commodity contract cash flow hedges, net of tax of $38, $(51), $360 and $(29), respectively | 51 | (75) | 548 | (43) |
Total Other Comprehensive Income | 139 | 8 | 811 | 205 |
Comprehensive Income | $ 4,555 | $ 5,127 | $ 33,623 | $ 32,726 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Amortization of prior service cost, tax | $ (8) | $ (7) | $ (23) | $ (20) |
Net gain, tax | 66 | 62 | 200 | 187 |
Unrealized loss on commodity contract cash flow hedges, tax | $ 38 | $ (51) | $ 360 | $ (29) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment | |||
Regulated Energy | $ 908,822 | $ 842,756 | |
Unregulated Energy | 194,743 | 145,734 | |
Other businesses and eliminations | 20,835 | 18,999 | |
Total property, plant and equipment | 1,124,400 | 1,007,489 | |
Less: Accumulated depreciation and amortization | (237,434) | (215,313) | |
Plus: Construction work in progress | 49,082 | 62,774 | |
Net property, plant and equipment | 936,048 | 854,950 | |
Current Assets | |||
Cash and cash equivalents | 1,536 | 2,855 | |
Accounts receivable (less allowance for uncollectible accounts of $792 and $909, respectively) | 47,103 | 41,007 | |
Accrued revenue | 9,506 | 12,452 | |
Propane inventory, at average cost | 4,106 | 6,619 | |
Other inventory, at average cost | 3,867 | 3,803 | |
Regulatory assets | 6,045 | 8,268 | |
Storage gas prepayments | 8,192 | 3,410 | |
Income taxes receivable | 13,178 | 24,950 | |
Prepaid expenses | 7,603 | 7,146 | |
Mark-to-market energy assets | 477 | 153 | |
Other current assets | 543 | 1,044 | |
Total current assets | 102,156 | 111,707 | |
Deferred Charges and Other Assets | |||
Goodwill | 15,070 | 14,548 | |
Other intangible assets, net | 1,938 | 2,222 | |
Investments, at fair value | 4,630 | 3,644 | |
Regulatory assets | 76,343 | 77,519 | |
Receivables and other deferred charges | 4,325 | 2,831 | |
Total deferred charges and other assets | 102,306 | 100,764 | |
Total Assets | 1,140,510 | 1,067,421 | |
Stockholders’ equity | |||
Preferred stock, par value $0.01 per share (authorized 2,000,000 shares), no shares issued and outstanding | 0 | 0 | |
Common stock, par value $0.4867 per share (authorized 25,000,000 shares) | 7,932 | 7,432 | |
Additional paid-in capital | 250,202 | 190,311 | |
Retained earnings | 185,195 | 166,235 | |
Accumulated other comprehensive loss | (5,029) | (5,840) | |
Deferred compensation obligation | 2,476 | 1,883 | |
Treasury stock | (2,476) | (1,883) | |
Total stockholders’ equity | [1] | 438,300 | 358,138 |
Long-term debt, net of current maturities | 143,525 | 149,006 | |
Total capitalization | 581,825 | 507,144 | |
Current Liabilities | |||
Current portion of long-term debt | 12,087 | 9,151 | |
Short-term borrowing | 154,490 | 173,397 | |
Accounts payable | 41,297 | 39,300 | |
Customer deposits and refunds | 26,858 | 27,173 | |
Accrued interest | 3,119 | 1,311 | |
Dividends payable | 4,678 | 4,390 | |
Accrued compensation | 7,823 | 10,014 | |
Regulatory liabilities | 2,412 | 7,365 | |
Mark-to-market energy liabilities | 29 | 433 | |
Other accrued liabilities | 10,260 | 7,059 | |
Total current liabilities | 263,053 | 279,593 | |
Deferred Credits and Other Liabilities | |||
Deferred income taxes | 205,562 | 192,600 | |
Regulatory liabilities | 43,354 | 43,064 | |
Environmental liabilities | 8,682 | 8,942 | |
Other pension and benefit costs | 32,501 | 33,481 | |
Deferred investment tax credits and other liabilities | 5,533 | 2,597 | |
Total deferred credits and other liabilities | 295,632 | 280,684 | |
Environmental and other commitments and contingencies | |||
Total Capitalization and Liabilities | $ 1,140,510 | $ 1,067,421 | |
[1] | 2,000 shares of preferred stock at $0.00001 par value has been authorized. None has been issued or is outstanding; accordingly, no information has been included in the statements of stockholders’ equity. |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for uncollectible accounts | $ 792 | $ 909 |
Common stock, par value (in dollars per share) | $ 0.4867 | $ 0.4867 |
Common stock, shares authorized (shares) | 25,000,000 | 25,000,000 |
Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Issued | 0 | 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | ||
Net Income | $ 32,812 | $ 32,521 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 23,493 | 22,155 |
Depreciation and accretion included in other costs | 5,357 | 5,280 |
Deferred income taxes, net | 12,004 | (1,155) |
Realized gain on commodity contracts/sale of assets/investments | (405) | (411) |
Unrealized (gain) loss on investments/commodity contracts | (243) | 60 |
Employee benefits and compensation | 1,217 | 901 |
Share-based compensation | 1,887 | 1,445 |
Other, net | 42 | 13 |
Changes in assets and liabilities: | ||
Accounts receivable and accrued revenue | (3,835) | 21,898 |
Propane inventory, storage gas and other inventory | (2,179) | 3,166 |
Regulatory assets/liabilities, net | (3,326) | 6,467 |
Prepaid expenses and other current assets | 485 | (159) |
Accounts payable and other accrued liabilities | 3,679 | (9,897) |
Income taxes receivable | 14,897 | 14,883 |
Customer deposits and refunds | (314) | (1,177) |
Accrued compensation | (2,293) | (1,406) |
Other assets and liabilities, net | (1,053) | (652) |
Net cash provided by operating activities | 82,225 | 93,932 |
Investing Activities | ||
Property, plant and equipment expenditures | (106,851) | (97,299) |
Proceeds from sales of assets | 119 | 109 |
Acquisitions, net of cash acquired | 0 | (20,930) |
Environmental expenditures | (260) | (113) |
Net cash used in investing activities | (106,992) | (118,233) |
Financing Activities | ||
Common stock dividends | (12,964) | (11,725) |
Issuance of stock for Dividend Reinvestment Plan | 600 | 633 |
Stock issuance | 57,306 | 0 |
Change in cash overdrafts due to outstanding checks | 2,466 | 2,964 |
Net (repayment) borrowing under line of credit agreements | (21,379) | 35,898 |
Repayment of long-term debt and capital lease obligation | (2,581) | (4,262) |
Net cash provided by financing activities | 23,448 | 23,508 |
Net Decrease in Cash and Cash Equivalents | (1,319) | (793) |
Cash and Cash Equivalents—Beginning of Period | 2,855 | 4,574 |
Cash and Cash Equivalents—End of Period | $ 1,536 | $ 3,781 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Deferred Compensation [Member] | Treasury Stock [Member] | ||||
Beginning Balances (shares) at Dec. 31, 2014 | [1] | 14,588,711 | |||||||||
Beginning Balances at Dec. 31, 2014 | $ 300,322 | [2] | $ 7,100 | $ 156,581 | $ 142,317 | $ (5,676) | $ 1,258 | $ (1,258) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net Income | 41,140 | 41,140 | |||||||||
Other comprehensive loss | (164) | (164) | |||||||||
Dividend declared ($1.1325 per share) | (17,222) | (17,222) | |||||||||
Retirement savings plan and dividend reinvestment plan (shares) | 43,275 | ||||||||||
Retirement savings plan and dividend reinvestment plan | 2,235 | $ 21 | 2,214 | ||||||||
Common stock issued in acquisition (shares) | 592,970 | ||||||||||
Common stock issued in acquisition | 30,165 | $ 289 | 29,876 | ||||||||
Share-based compensation (shares) | [3],[4] | 45,703 | |||||||||
Share-based compensation and tax benefit | 1,662 | [4] | $ 22 | [3] | 1,640 | [3] | |||||
Treasury stock activities | 0 | 625 | (625) | ||||||||
Ending Balances (shares) at Dec. 31, 2015 | [1] | 15,270,659 | |||||||||
Ending Balances at Dec. 31, 2015 | $ 358,138 | [2] | $ 7,432 | 190,311 | 166,235 | (5,840) | 1,883 | (1,883) | |||
Preferred Stock, Shares Authorized | 2,000,000 | ||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net Income | $ 32,812 | 32,812 | |||||||||
Other comprehensive loss | 811 | 811 | |||||||||
Dividend declared ($1.1325 per share) | (13,852) | (13,852) | |||||||||
Retirement savings plan and dividend reinvestment plan (shares) | 30,041 | ||||||||||
Retirement savings plan and dividend reinvestment plan | $ 1,874 | $ 15 | 1,859 | ||||||||
Stock issuance, shares | 960,488 | 960,488 | [5] | ||||||||
Stock issuance | $ 57,306 | $ 467 | [5] | 56,839 | |||||||
Share-based compensation (shares) | [3],[4] | 36,099 | |||||||||
Share-based compensation and tax benefit | 1,211 | [4] | $ 18 | [3] | 1,193 | [3] | |||||
Treasury stock activities | 0 | 593 | (593) | ||||||||
Ending Balances (shares) at Sep. 30, 2016 | [1] | 16,297,287 | |||||||||
Ending Balances at Sep. 30, 2016 | $ 438,300 | [2] | $ 7,932 | $ 250,202 | $ 185,195 | $ (5,029) | $ 2,476 | $ (2,476) | |||
Preferred Stock, Shares Authorized | 2,000,000 | ||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||||||||||
[1] | Includes 80,024 and 70,631 shares at September 30, 2016 and December 31, 2015, respectively, held in a Rabbi Trust related to our Deferred Compensation Plan. | ||||||||||
[2] | 2,000 shares of preferred stock at $0.00001 par value has been authorized. None has been issued or is outstanding; accordingly, no information has been included in the statements of stockholders’ equity. | ||||||||||
[3] | Includes amounts for shares issued for Directors’ compensation. | ||||||||||
[4] | The shares issued under the SICP are net of shares withheld for employee taxes. For the nine months ended September 30, 2016, and for the year ended December 31, 2015, we withheld 12,031 and 12,620 shares, respectively, for taxes. | ||||||||||
[5] | On September 22, 2016, we completed a public offering of 960,488 shares of our common stock at a price per share of $62.26. The net proceeds from the sale of common stock, after deducting underwriting commissions and expenses, were approximately $57.3 million. |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividend declared (in dollars per share) | $ 0.3050 | $ 0.8975 | $ 1.1325 |
Deferred compensation plan held Rabbi Trust (shares) | 80,024 | 80,024 | 70,631 |
Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 | 2,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
Stock Issued During Period, Shares, New Issues | 960,488 | ||
Stock Issued During Period, Value, Other | $ 62.26 | ||
Proceeds from Issuance of Common Stock | $ 57,306,000 | ||
Shares issued under the performance incentive plan withheld for employee taxes (shares) | 12,031 | 12,620 |
Summary of Accounting Policies
Summary of Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies | Summary of Accounting Policies Basis of Presentation References in this document to the “Company,” “Chesapeake Utilities,” “we,” “us” and “our” are intended to mean Chesapeake Utilities Corporation, its divisions and/or its subsidiaries, as appropriate in the context of the disclosure. The accompanying unaudited condensed consolidated financial statements have been prepared in compliance with the rules and regulations of the SEC and GAAP. In accordance with these rules and regulations, certain information and disclosures normally required for audited financial statements have been condensed or omitted. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in our latest Annual Report on Form 10-K for the year ended December 31, 2015 . In the opinion of management, these financial statements reflect normal recurring adjustments that are necessary for a fair presentation of our results of operations, financial position and cash flows for the interim periods presented. Due to the seasonality of our business, results for interim periods are not necessarily indicative of results for the entire fiscal year. Revenue and earnings are typically greater during the first and fourth quarters, when consumption of energy is highest due to colder temperatures. We reclassified certain amounts in the condensed consolidated balance sheet as of December 31, 2015. We have revised the condensed consolidated statement of cash flows for the nine months ended September 30, 2015 to reflect only property, plant and equipment expenditures paid in cash within the Investing Activities section. The non-cash expenditures previously included in that section have now been included in the change in accounts payable and other accrued liabilities amount within the Operating Activities section. These revisions are considered immaterial to the overall presentation of our condensed consolidated financial statements. On September 22, 2016, we completed a public offering of 960,488 shares of our common stock at a price per share of $62.26 . The net proceeds from the sale of common stock, after deducting underwriting commissions and expenses, were approximately $57.3 million , which were added to our general funds and used primarily to repay a portion of our short-term debt under unsecured lines of credit. FASB Statements and Other Authoritative Pronouncements Recently Adopted Accounting Standards Interest - Imputation of Interest (ASC 835-30) - In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs . This standard requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. ASU 2015-03 became effective for us on January 1, 2016, and we applied the provisions of this standard on a retrospective basis. As a result of the adoption of this standard, debt issuance costs totaling $301,000 and $333,000 at September 30, 2016 and December 31, 2015, respectively, previously presented as other deferred charges, a non-current asset, are now presented as a deduction from long-term debt, net of current maturities, in our condensed consolidated balance sheets. Intangibles-Goodwill and Other-Internal-Use Software (ASC 350-40) - In April 2015, the FASB issued ASU 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. Under the new standard, unless a software arrangement includes specific elements enabling customers to possess and operate software on platforms other than that offered by the cloud-based provider, the cost of such arrangements is to be accounted for as an operating expense in the period incurred. ASU 2015-05 became effective for us on January 1, 2016, and has been applied on a prospective basis. The standard did not have a material impact on our financial position or results of operations. Interest-Imputation of Interest (ASC 835-30) - In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . This standard clarifies treatment of debt issuance costs associated with line-of-credit arrangements that were not specifically addressed in ASU 2015-03. Issuance costs incurred in connection with line-of-credit arrangements may be treated as an asset and amortized over the term of the line-of-credit arrangement. ASU 2015-15 became effective for us on January 1, 2016. The standard did not have a material impact on our financial position or results of operations. Business Combinations (ASC 805) - In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments . The standard eliminates the requirement to restate prior period financial statements for measurement period adjustments and requires that the cumulative impact of a measurement-period adjustments (including the impact of prior periods) be recognized in the reporting period in which the adjustment is identified. ASU 2015-16 was effective for our interim and annual financial statements issued after January 1, 2016 and was adopted on a prospective basis. Adoption of this standard did not have a material impact on our financial position or results of operations. Income Taxes (ASC 740) - In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which requires all deferred assets and liabilities along with any related valuation allowance to be classified as noncurrent on the balance sheet for our annual financial statements beginning January 1, 2017 and for our interim financial statements beginning January 1, 2018; however, early adoption is permitted. We adopted this standard in the first quarter of 2016 on a retrospective basis and adjusted the December 31, 2015 balance sheet by eliminating the current deferred income taxes asset and decreasing the noncurrent deferred income taxes liability by $831,000 . Recent Accounting Standards Yet to be Adopted Revenue from Contracts with Customers (ASC 606) - In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . This standard provides a single comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, as well as across industries and capital markets. The standard contains principles that entities will apply to determine the measurement of revenue and when it is recognized. In March 2016, FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , to clarify the implementation guidance on principal versus agent considerations. For public entities, this standard is effective for 2018 interim and annual financial statements. We have engaged a third party to review our contracts with customers and to aid in assessing the impact this standard may have on our financial position and results of operations. Inventory (ASC 330) - In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. Under this guidance, inventories are required to be measured at the lower of cost or net realizable value. Net realizable value represents the estimated selling price less costs associated with completion, disposal and transportation. ASU 2015-11 will be effective for our interim and annual financial statements issued beginning January 1, 2017; however, early adoption is permitted. The standard is to be adopted on a prospective basis. We are assessing the impact this standard may have on our financial position and results of operations. Leases (ASC 842) - In February 2016, the FASB issued ASU 2016-02, Leases, which provides updated guidance regarding accounting for leases. This update requires a lessee to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. ASU 2016-02 will be effective for our annual and interim financial statements beginning January 1, 2019, although early adoption is permitted. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are evaluating the effect of this update on our financial position and results of operations. Compensation-Stock Compensation (ASC 718) - In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, and classification in the statement of cash flows. ASU 2016-09 will be effective for our annual and interim financial statements beginning January 1, 2017, although early adoption is permitted. The amendments included in this update are to be applied prospectively except for changes impacting the presentation of the cash flow statement that can be applied prospectively or retrospectively. We are evaluating the effect of this update on our financial position and results of operations. Statement of Cash Flows (ASC 230) - On August 26, 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments , which clarifies how certain transactions are classified in the statement of cash flows. ASU 2016-15 will be effective for our annual and interim financial statements beginning January 1, 2018, although early adoption is permitted. We are assessing the impact of the adoption of this ASU on our statements of cash flows. |
Calculation of Earnings Per Sha
Calculation of Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Share | Calculation of Earnings Per Share Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in thousands, except shares and per share data) Calculation of Basic Earnings Per Share: Net Income $ 4,416 $ 5,119 $ 32,812 $ 32,521 Weighted average shares outstanding 15,372,413 15,258,819 15,324,932 15,035,569 Basic Earnings Per Share $ 0.29 $ 0.34 $ 2.14 $ 2.16 Calculation of Diluted Earnings Per Share: Reconciliation of Numerator: Net Income $ 4,416 $ 5,119 32,812 32,521 Reconciliation of Denominator: Weighted shares outstanding—Basic 15,372,413 15,258,819 15,324,932 15,035,569 Effect of dilutive securities: Share-based compensation 40,370 48,024 41,023 48,072 Adjusted denominator—Diluted 15,412,783 15,306,843 15,365,955 15,083,641 Diluted Earnings Per Share $ 0.29 $ 0.33 $ 2.14 $ 2.16 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Gatherco Merger On April 1, 2015, we completed the merger in which Gatherco merged with and into Aspire Energy, our then newly formed, wholly-owned subsidiary. Aspire Energy is an unregulated natural gas infrastructure company with approximately 2,500 miles of pipeline systems in 40 counties throughout Ohio. The majority of Aspire Energy’s margin is derived from long-term supply agreements with Columbia Gas of Ohio and Consumers Gas Cooperative, which together serve more than 20,000 end-use customers. Aspire Energy sources gas primarily from 300 conventional producers. Aspire Energy also provides gathering and processing services so that it can maintain service quality and reliability for its wholesale markets. At closing, we issued 592,970 shares of our common stock, valued at $30.2 million , based on the closing price of our common stock as reported on the NYSE on April 1, 2015. In addition, we paid $27.5 million in cash and assumed $1.7 million of outstanding Gatherco debt, which we paid off on the closing date. We also acquired $6.8 million of cash on hand at closing. (in thousands) Net Purchase Price Chesapeake Utilities common stock $ 30,164 Cash 27,494 Acquired debt 1,696 Aggregate amount paid in the acquisition 59,354 Less: cash acquired (6,806 ) Net amount paid in the acquisition $ 52,548 The merger agreement provided for additional contingent cash consideration to Gatherco's shareholders of up to $15.0 million based on a percentage of revenue generated from potential new gathering opportunities during the five -year period following the closing. As of September 30, 2016, there have been no related gathering opportunities developed; therefore, no contingent consideration liability has been recorded. Based on the absence of related gathering opportunities being developed as of September 30, 2016, we are unable to estimate the range of undiscounted contingent liability outcomes at this time. We incurred $1.3 million in transaction costs associated with this merger of which we incurred $786,000 in 2014 and the remaining $514,000 in 2015. Transaction costs were included in operations expense in the accompanying condensed consolidated statements of income. The revenue and net loss from this merger for the three months ended September 30, 2016 , included in our condensed consolidated statements of income, were $5.6 million and $563,000 , respectively. The revenue and net income from this merger for the nine months ended September 30, 2016 , included in our condensed consolidated statements of income, were $18.4 million and $1.1 million , respectively. This merger was accretive to earnings per share in the first full year of operations, generating $0.03 in additional earnings per share for such period. The purchase price allocation of the Gatherco merger was as follows: Purchase price (in thousands) Allocation Purchase price $ 57,658 Property plant and equipment 53,203 Cash 6,806 Accounts receivable 3,629 Income taxes receivable 3,163 Other assets 425 Total assets acquired 67,226 Long-term debt 1,696 Deferred income taxes 13,409 Accounts payable 3,837 Other current liabilities 745 Total liabilities assumed 19,687 Net identifiable assets acquired 47,539 Goodwill $ 10,119 The excess of the purchase price over the estimated fair values of the assets acquired and the liabilities assumed was recognized as goodwill at the merger date. The goodwill primarily reflects the value paid for opportunities for growth in a new, strategic geographic area. All of the goodwill from this merger was recorded in the Unregulated Energy segment and is not expected to be deductible for income tax purposes. In December 2015 and during the first quarter of 2016, we adjusted the allocation of the purchase price based on additional information available. The adjustments resulted in a change in the fair value of property, plant and equipment, deferred income tax liabilities, inventory, income taxes receivable and other current liabilities. Goodwill from the merger decreased from $11.1 million to $10.1 million after incorporating these adjustments. The allocation of the purchase price and valuation of assets are final. The valuation of additional contingent cash consideration may be adjusted as additional information becomes available. |
Rates and Other Regulatory Acti
Rates and Other Regulatory Activities | 9 Months Ended |
Sep. 30, 2016 | |
Regulated Operations [Abstract] | |
Rates and Other Regulatory Activities | Rates and Other Regulatory Activities Our natural gas and electric distribution operations in Delaware, Maryland and Florida are subject to regulation by their respective PSC; Eastern Shore, our natural gas transmission subsidiary, is subject to regulation by the FERC; and Peninsula Pipeline, our intrastate pipeline subsidiary, is subject to regulation by the Florida PSC. Chesapeake Utilities' Florida natural gas distribution division and FPU’s natural gas and electric distribution operations continue to be subject to regulation by the Florida PSC as separate entities. Delaware Rate Case Filing: On December 21, 2015, our Delaware Division filed an application with the Delaware PSC for a base rate increase and certain other changes to its tariff. We proposed an increase of approximately $4.7 million , or nearly ten percent , in our revenue requirement based on the test period ending March 31, 2016. We also proposed new service offerings to promote growth and a revenue normalization mechanism for residential and small commercial customers. We expect a decision on the application during the first quarter of 2017. Pending the decision, our Delaware Division increased rates on an interim basis based on the $2.5 million annualized interim rates approved by the Delaware PSC, effective February 19, 2016 ("Phase I"). We recognized incremental revenue of approximately $469,000 ( $280,000 net of tax) and $1.4 million ( $817,000 net of tax) for the three and nine months ended September 30, 2016, respectively. In addition, our Delaware Division requested and received approval on July 26, 2016, from the Delaware PSC to implement revised interim rates totaling $4.7 million (equal to the initial rate increase in our application) annualized for usage on and after August 1, 2016 ("Phase II"). These revised interim rates represent a five- percent increase over Phase I rates. Revenue associated with these rates collected prior to a final Delaware PSC decision is subject to refund and, although the final decision is expected during the first quarter of 2017, we cannot predict the revenue requirement the Delaware PSC will ultimately authorize or forecast the timing of a final decision. Consequently, we will not recognize the impact of the potential additional revenue related to the Phase II rate increase until the Delaware PSC issues its approval in a final ruling. Maryland Sandpiper Rate Case Filing: On December 1, 2015, Sandpiper filed an application with the Maryland PSC for a base rate increase and certain other changes to its tariff. We proposed an increase of $950,000 , or approximately five- percent, in our revenue requirement, based on the test period ended December 31, 2015. We also proposed a stratification of rate classes, based on cost of service, and a revenue normalization mechanism for residential and small commercial customers. The procedural schedule was suspended in early May 2016 to allow for the continuation of settlement discussions between Sandpiper, Maryland PSC Staff and the Maryland Office of People's Counsel. The parties reached a settlement agreement, which Sandpiper filed with the Commission on August 10, 2016. The terms of the agreement include revenue neutral rates for the first year, followed by a schedule of rate reductions in subsequent years based upon the projected rate of propane to natural gas conversions. A revenue normalization mechanism and stratification of rate classes were also included in the settlement agreement. On September 28, 2016, the Public Utility Law Judge issued a proposed order recommending approval of the settlement terms. The order became final on October 29, 2016 and the new rates will be in effect on December 1, 2016. Florida On September 1, 2015, FPU’s electric division filed to recover the cost of the proposed Florida Power & Light Company interconnect project through FPU's annual Fuel and Purchased Power Cost Recovery Clause filing. The interconnect project will enable FPU's electric division to negotiate a new power purchase agreement that will mitigate fuel costs for its Northeast division. This action was approved by the Florida PSC at its Agenda Conference held on December 3, 2015. On January 22, 2016, the Office of Public Counsel filed an appeal of the Florida PSC's decision with the Florida Supreme Court. Legal briefs have been filed, but no decision has been reached at this time. On February 2, 2016, FPU’s natural gas division filed a petition with the Florida PSC for approval of an amendment to its existing transportation agreement with the City of Lake Worth, located in Palm Beach County, Florida. The amendment allows the city to resell natural gas distributed by FPU to the city’s compressed natural gas station. The city will then resell the natural gas, after compression, to its customers. The amendment to the transportation agreement was approved by the Florida PSC at its Agenda Conference held April 5, 2016. On April 11, 2016, FPU’s natural gas divisions and Chesapeake Utilities' Florida division filed a joint petition for approval to allow FPU and Chesapeake Utilities to expand the cost allocation of the intrastate and unreleased capacity-related components currently embedded in the purchased gas adjustment and operational balancing account, which is currently allocated to a limited number of customers. The expanded allocation of these costs includes additional customers, primarily transportation customers, benefiting from these costs but not currently paying for them. This petition was approved by the Florida PSC at its Agenda Conference in September 2016. Eastern Shore White Oak Mainline Expansion Project: On November 21, 2014, Eastern Shore submitted an application to the FERCseeking authorization to construct, own and operate certain expansion facilities designed to provide 45,000 Dts/d of firm transportation service to an electric power generator in Kent County, Delaware. Eastern Shore proposes to construct approximately 7.2 miles of 16 -inch diameter pipeline looping in Chester County, Pennsylvania and 3,550 horsepower of additional compression at Eastern Shore’s existing Delaware City compressor station in New Castle County, Delaware. On November 18, 2015, Eastern Shore filed an amendment to this application, which indicated the preferred pipeline route and shortened the total miles of the proposed pipeline to 5.4 miles. On February 10, 2016, the FERC issued a notice combining the White Oak Mainline Expansion Project and the System Reliability Project into a single environmental assessment. On July 21, 2016, the FERC issued a certificate of public convenience and necessity authorizing Eastern Shore to construct and operate the proposed White Oak Mainline Project. The FERC denied Eastern Shore’s request for a pre-determination of rolled-in rate treatment in the certificate proceeding. However, FERC’s determination is without prejudice to Eastern Shore filing for and fully supporting rolled-in rate treatment of these project facilities in a future general rate case. The certificate required Eastern Shore to comply with 19 environmental conditions. On July 29, 2016, Eastern Shore accepted the certificate of public convenience and necessity and, on August 2, 2016, filed its Implementation Plan to comply with each environmental condition and to request approval to begin construction. On August 4, 2016, the FERC issued a “Notice to Proceed,” and Eastern Shore commenced construction during August 2016. Eastern Shore continues to file weekly status reports in compliance with one of the environmental conditions. System Reliability Project: On May 22, 2015, Eastern Shore submitted an application to the FERC seeking authorization to construct, own and operate approximately 10.1 miles of 16 -inch pipeline looping and auxiliary facilities in New Castle and Kent Counties, Delaware and a new compressor at its existing Bridgeville compressor station in Sussex County, Delaware. Eastern Shore further proposed to reinforce critical points on its pipeline system. The total project will benefit all of Eastern Shore’s customers by modifying the pipeline system to respond to severe operational conditions experienced during actual winter peak days in 2014 and 2015. Since the project is intended to improve system reliability, Eastern Shore requested a predetermination of rolled-in rate treatment for the costs of the project. On July 21, 2016, the FERC issued a certificate of public convenience and necessity authorizing Eastern Shore to construct and operate the proposed System Reliability Project. The FERC granted Eastern Shore’s request for a pre-determination of rolled-in rate treatment in its next rate base proceeding and required Eastern Shore to comply with 19 environmental conditions. On July 29, 2016, Eastern Shore accepted the certificate and on August 5, 2016 filed its Implementation Plan to comply with each environmental condition and to request approval to begin construction. On August 12, 2016, the FERC issued a “Partial Notice to Proceed” approving construction for certain portions of the System Reliability Project. On September 15, 2016, the FERC granted approval to start construction on the remaining portion of the Project. Construction commenced on the Bridgeville Compressor Station and the Porter Road Loop in August 2016, and on the Dover Loop, in September 2016 and is ongoing. Eastern Shore continues to file weekly status reports in compliance with one of the environmental conditions. TETLP Capacity Expansion Project: On October 13, 2015, Eastern Shore submitted an application to the FERC to make certain measurement and related improvements at its TETLP interconnect facilities, which would enable Eastern Shore to increase natural gas receipts from TETLP by 53,000 Dts/d, for a total capacity of 160,000 Dts/d. On December 22, 2015, the FERC authorized Eastern Shore to proceed with the project. On March 11, 2016, the capacity expansion project was placed into service. 2017 Expansion Project: On May 12, 2016, Eastern Shore submitted a request to the FERC to initiate the FERC’s pre-filing review procedures for Eastern Shore's 2017 expansion project. The expansion project consists of approximately 33 miles of pipeline looping in Pennsylvania, Maryland and Delaware; upgrades to existing metering facilities in Lancaster County, Pennsylvania; installation of an additional 3,550 horsepower compressor unit at Eastern Shore’s existing Daleville compressor station in Chester County, Pennsylvania; and approximately 17 miles of new mainline extension and two pressure control stations in Sussex County, Delaware. The expansion project is necessary to provide up to 86,437 Dts/d of additional firm natural gas transportation capacity to meet anticipated market demand. On May 17, 2016, the FERC approved Eastern Shore’s request to commence the pre-filing review process. Eastern Shore is currently working through the pre-filing process and anticipates filing, in December 2016, its application for a certificate of public convenience and necessity, seeking authorization to construct the expansion facilities. Since the time the pre-filing was initiated, Eastern Shore has finalized market participation for the project. Seven of Eastern Shore’s existing customers have signed Precedent Agreements. As a result, the project will provide 61,162 Dts/d of additional firm natural gas transportation deliverability on Eastern Shore’s pipeline system. To provide this additional capacity, the project’s final facilities will consist of approximately 23 miles of pipeline looping in Pennsylvania, Maryland and Delaware; upgrades to existing metering facilities in Lancaster County, Pennsylvania; installation of an additional 3,550 horsepower compressor unit at Eastern Shore’s existing Daleville compressor station in Chester County, Pennsylvania; and approximately 17 miles of new mainline extension and two pressure control stations in Sussex County, Delaware. 2017 Rate Case Filing In January 2017, Eastern Shore intends to file a base rate proceeding with the FERC, as required by the terms of its 2012 settlement agreement. |
Environmental Commitments and C
Environmental Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Commitments and Contingencies | Environmental Commitments and Contingencies We are subject to federal, state and local laws and regulations governing environmental quality and pollution control. These laws and regulations require us to remove or remediate, at current and former operating sites, the effect on the environment of the disposal or release of specified substances. MGP Sites We have participated in the investigation, assessment or remediation of, and have exposures at, seven former MGP sites. Those sites are located in Salisbury, Maryland, Seaford, Delaware and Winter Haven, Key West, Pensacola, Sanford and West Palm Beach, Florida. We have also been discussing with the MDE another former MGP site located in Cambridge, Maryland. As of September 30, 2016 , we had approximately $9.9 million in environmental liabilities, representing our estimate of the future costs associated with all of FPU’s MGP sites in Florida, which include the Key West, Pensacola, Sanford and West Palm Beach sites. FPU has approval to recover, from insurance and from customers through rates, up to $14.0 million of its environmental costs related to all of its MGP sites, approximately $10.5 million of which has been recovered as of September 30, 2016 , leaving approximately $3.5 million in regulatory assets for future recovery of environmental costs from FPU’s customers. In addition to the FPU MGP sites, we had $298,000 in environmental liabilities at September 30, 2016 , representing our estimate of future costs associated with Chesapeake Utilities' MGP site in Winter Haven, Florida. During the first quarter of 2015, we established $273,000 in environmental liabilities related to Chesapeake Utilities' MGP site in Seaford, Delaware, representing our estimate of future costs associated with this site, and recorded a regulatory asset for the same amount for probable future recovery through Chesapeake Utilities' rates via our environmental rider. On February 23, 2016, the Delaware PSC approved an environmental surcharge for the recovery of Chesapeake Utilities' environmental expenses associated with the Seaford site for the period of October 1, 2014 through September 30, 2015. Chesapeake Utilities will file for recovery of its expenses incurred between October 1, 2015 and September 30, 2016 by October 31, 2016. As of September 30, 2016 , we had approximately $156,000 in environmental liabilities and $267,000 in regulatory and other assets related to this site. Environmental liabilities for all of our MGP sites are recorded on an undiscounted basis based on the estimate of future costs provided by independent consultants. We continue to expect that all costs related to environmental remediation and related activities, including any potential future remediation costs for which we do not currently have approval for regulatory recovery, will be recoverable from customers through rates. West Palm Beach, Florida Remedial options are being evaluated to respond to environmental impacts to soil and groundwater at and in the immediate vicinity of a parcel of property owned by FPU in West Palm Beach, Florida, where FPU previously operated a MGP. FPU is implementing a remedial plan approved by the FDEP for the east parcel of the West Palm Beach site, which includes installation of monitoring test wells, sparging of air into the groundwater system and extraction of vapors from the subsurface. The Start-Up and Monitoring Report, dated November 30, 2015, was submitted for review and comment. We received a letter dated January 6, 2016 from FDEP, which provided minor comments. On January 12, 2016, FDEP conducted a facility inspection and found no problems or deficiencies. We expect that similar remedial actions will ultimately be implemented for other portions of the site. Estimated costs of remediation for the West Palm Beach site range from approximately $4.5 million to $15.4 million , including costs associated with the relocation of FPU’s operations at this site, which is necessary to implement the remedial plan, and any potential costs associated with future redevelopment of the properties. Sanford, Florida FPU is the current owner of property in Sanford, Florida, which is the site on which a former MGP that was operated by several other entities before FPU acquired the property. FPU was never an owner or an operator of the MGP previously located on this site. In January 2007, FPU and the Sanford Group signed a Third Participation Agreement, which provides for the funding of the final remedy approved by the EPA for the site. FPU’s share of remediation costs under the Third Participation Agreement is set at five percent of a maximum of $13.0 million , or $650,000 . As of September 30, 2016 , FPU has paid $650,000 to the Sanford Group escrow account for its entire share of the funding requirements. In December 2014, the EPA issued a preliminary close-out report, documenting the completion of all physical remedial construction activities at the Sanford site. Groundwater monitoring and statutory five-year reviews to ensure performance of the approved remedy will continue on this site. The total cost of the final remedy is estimated to be over $20.0 million , which includes long-term monitoring and the settlement of claims asserted by two adjacent property owners to resolve damages that the property owners allege they have incurred and will incur as a result of the implementation of the EPA-approved remediation. In settlement of these claims, members of the Sanford Group, which in this instance does not include FPU, have agreed to pay specified sums of money to the parties. FPU has refused to participate in the funding of the third-party settlement agreements based on its contention that it did not contribute to the release of hazardous substances at the site giving rise to the third-party claims. FPU advised the other members of the Sanford Group that it is unwilling to pay any sum in excess of the $650,000 paid by FPU under the Third Participation Agreement. The Sanford Group has not requested that FPU contribute to costs beyond the originally agreed upon $650,000 contribution. As of September 30, 2016 , FPU’s remaining remediation expenses, including attorneys’ fees and costs, are estimated to be $24,000 . We are unable to determine, to a reasonable degree of certainty, whether the other members of the Sanford Group will accept FPU’s asserted defense as to its limited liability for future costs exceeding $13.0 million to implement the final remedy for this site, as provided for in the Third Participation Agreement, or whether the other members of the Sanford Group will pursue a claim against FPU for a sum in excess of the $650,000 that FPU has paid pursuant to the Third Participation Agreement. No such claims have been made as of September 30, 2016 . Key West, Florida FPU formerly owned and operated a MGP in Key West, Florida. Field investigations performed in the 1990s identified limited environmental impacts at the site, which is currently owned by an unrelated third party. In 2010, after 17 years of regulatory inactivity, FDEP observed that some soil and groundwater standards were exceeded and requested implementation of additional soil and groundwater fieldwork. The scope of work is limited to the installation of two additional monitoring wells and periodic monitoring of the new and existing wells. The two additional monitoring wells were installed in November 2011, and groundwater monitoring began in December 2011. The first semi-annual report from the monitoring program was issued in May 2012. The data from the June 2012 and September 2012 monitoring events were submitted to the FDEP on October, 2012. FDEP responded on October 9, 2012 that, based on the data, NAM appears to be an appropriate remedy for the site. In October 2012, FDEP issued a RAP approval order, which requires a limited semi-annual NAM. The most recent groundwater-monitoring event was conducted in September 2016. Natural attenuation default criteria were met at all locations sampled and the semi-annual report was submitted on October 4, 2016 with the recommendation that semi-annual monitoring should continue at this facility. The next semi-annual NAM is scheduled for the first quarter of 2017. Although the duration of the FDEP-required limited NAM cannot be determined with certainty, we anticipate that total costs to complete the remedial action will not exceed $50,000 . The annual cost to conduct the limited NAM program is not expected to exceed $8,000 . Pensacola, Florida FPU formerly owned and operated a MGP in Pensacola, Florida, which was subsequently owned by Gulf Power. Portions of the site are now owned by the City of Pensacola and the FDOT. In October 2009, FDEP informed Gulf Power that it would approve a conditional No Further Action determination for the site with the requirement for institutional and engineering controls. On June 16, 2014, FDEP issued a draft memorandum of understanding between FDOT and FDEP to implement site closure with approved institutional and engineering controls for the site. We anticipate that FPU’s share of remaining legal and cleanup costs will not exceed $5,000 . Winter Haven, Florida The Winter Haven site is located on the eastern shoreline of Lake Shipp, in Winter Haven, Florida. Pursuant to a consent order entered into with FDEP, we are obligated to assess and remediate environmental impacts at this former MGP site. Groundwater monitoring results have shown a continuing reduction in contaminant concentrations from the sparging system, which has been in operation since 2002. On September 12, 2014, FDEP issued a letter approving shutdown of the sparging operations on the northern portion of the site, contingent upon continued semi-annual monitoring. Groundwater monitoring results on the southern portion of this site indicate that natural attenuation default criteria continue to be exceeded. Plans to modify the monitoring network on the southern portion of the site in order to collect additional data to support the development of a remedial plan were specified in a letter to FDEP, dated October 17, 2014. The well installation and abandonment program was implemented in October 2014, and documentation was reported in the next semi-annual RAP implementation status report, submitted on January 8, 2015. FDEP approved the plan to expand the bio-sparging operations in the southern portion of the site, and additional sparge points were installed and connected to the operating system in the first quarter of 2016. Although specific remedial actions for the site have not yet been identified, we estimate that future remediation costs for the subsurface soils and groundwater at the site should not exceed $425,000 , which includes an estimate of $100,000 to implement additional actions, such as institutional controls, at the site. FDEP previously indicated that we could also be required to remediate sediments along the shoreline of Lake Shipp, immediately west of the site. Based on studies performed to date, and our recent meeting with FDEP, we believe that corrective measures for lake sediments are not warranted and will not be required by FDEP. Therefore, we have not recorded a liability for sediment remediation. Salisbury, Maryland We have substantially completed remediation of a site in Salisbury, Maryland, where it was determined that a former MGP caused localized groundwater contamination. In February 2002, the MDE granted permission to permanently decommission the systems used for remediation and to discontinue all on-site and off-site well monitoring, except for one well, which is being maintained for periodic product monitoring and recovery. As directed by MDE, additional measures were performed and this last remaining well was redeveloped in September 2016. Depending on future observations, additional testing may be required. We anticipate that the remaining costs for maintaining and monitoring this one remaining well will not exceed $5,000 annually. We cannot predict at this time when the MDE will grant permission to permanently decommission this well. Seaford, Delaware In a letter dated December 5, 2013, DNREC notified us that it would be conducting a facility evaluation of a former MGP site in Seaford, Delaware. In a report issued in January 2015, DNREC provided the evaluation, which found several compounds within the groundwater and soil that require further investigation. On September 17, 2015, DNREC approved our application to enter this site into the voluntary cleanup program. A remedial investigation was conducted in December 2015, and the resulting remedial investigation report was submitted to DNREC in May 2016. Based on findings from the remedial investigation, DNREC requested additional investigative work be performed prior to approval of potential remedial actions. We anticipate completing this additional investigative work by the end of the second quarter of 2017. We estimate the cost of potential remedial actions, based on the findings of the DNREC report, to be between $273,000 and $465,000 . Cambridge, Maryland We are discussing with the MDE a former MGP site located in Cambridge, Maryland. The outcome of this matter cannot be determined at this time; therefore, we have not recorded an environmental liability for this location. Ohio We have completed the investigation, assessment and remediation of eight natural gas pipeline facilities in Ohio that Aspire Energy acquired from Gatherco pursuant to the merger. Under the merger agreement, we are entitled to be indemnified from an escrow fund created at closing for certain matters, including certain claims related to environmental remediation. The costs incurred to date associated with remediation activities for these eight facilities is approximately $1.6 million . In September 2016, we and the Gatherco shareholder agent resolved certain disputes associated with our claims for indemnification, including claims for environmental matters. After deducting the amount of anticipated tax benefits related to our claims and an indemnification deductible in the amount of $431,250 in accordance with the merger agreement, we received a total of approximately $500,000 from the indemnification escrow in payment of our claims with no material impact to our financial statements. We do not anticipate submitting any additional claims for indemnification or receiving any additional indemnification payments related to or arising out of the Gatherco merger. |
Other Commitments and Contingen
Other Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments and Contingencies | Other Commitments and Contingencies Natural Gas, Electric and Propane Supply We have entered into contractual commitments to purchase natural gas, electricity and propane from various suppliers. The contracts have various expiration dates. For our Delaware and Maryland natural gas distribution divisions, we have a contract with an unaffiliated energy marketing and risk management company to manage a portion of their natural gas transportation and storage capacity, which expires on March 31, 2017. In May 2013, Sandpiper entered into a capacity, supply and operating agreement with EGWIC to purchase propane over a six -year term ending in May 2019. Sandpiper's current annual commitment is estimated at approximately 6.5 million gallons. Sandpiper has the option to enter into either a fixed per-gallon price for some or all of the propane purchases or a market-based price utilizing one of two local propane pricing indices. Also in May 2013, Sharp entered into a separate supply and operating agreement with EGWIC. Under this agreement, Sharp has a commitment to supply propane to EGWIC over a six -year term ending in May 2019. Sharp's current annual commitment is estimated at approximately 6.5 million gallons. The agreement between Sharp and EGWIC is separate from the agreement between Sandpiper and EGWIC, and neither agreement permits the parties to set off the rights and obligations specified in one agreement against those specified in the other agreement. Chesapeake Utilities' Florida natural gas distribution division has firm transportation service contracts with FGT and Gulfstream. Pursuant to a capacity release program approved by the Florida PSC, all of the capacity under these agreements has been released to various third parties, including PESCO. Under the terms of these capacity release agreements, Chesapeake Utilities is contingently liable to FGT and Gulfstream should any party that acquired the capacity through release fail to pay the capacity charge. FPU’s electric fuel supply contracts require FPU to maintain an acceptable standard of creditworthiness based on specific financial ratios. FPU’s agreement with JEA requires FPU to comply with the following ratios based on the results of the prior 12 months: (a) total liabilities to tangible net worth less than 3.75 times and (b) a fixed charge coverage ratio greater than 1.5 times. If FPU fails to comply with either of these ratios, it has 30 days to cure the default or, if the default is not cured, to provide an irrevocable letter of credit. FPU’s electric fuel supply agreement with Gulf Power requires FPU to meet the following ratios based on the average of the prior six quarters: (a) funds from operations interest coverage ratio (minimum of 2 times) and (b) total debt to total capital (maximum of 65 percent ). If FPU fails to meet either of these ratios, it has to provide the supplier a written explanation of actions taken, or proposed to be taken, to become compliant. Failure to comply with the ratios specified in the Gulf Power agreement could also result in FPU having to provide an irrevocable letter of credit. As of September 30, 2016 , FPU was in compliance with all of the requirements of its fuel supply contracts. Corporate Guarantees The Board of Directors has authorized us to issue corporate guarantees and to obtain letters of credit securing our subsidiaries' obligations. The maximum authorized liability under such guarantees and letters of credit is $65.0 million . Chesapeake Utilities has issued corporate guarantees to certain of our subsidiaries' vendors, the largest of which are for Xeron and PESCO. These corporate guarantees provide for the payment of propane and natural gas purchases in the event that Xeron or PESCO defaults. Neither subsidiary has ever defaulted on its obligations to pay its suppliers. The liabilities for these purchases are recorded when incurred. The aggregate amount guaranteed at September 30, 2016 was approximately $53.9 million , with the guarantees expiring on various dates through September 2017 . Chesapeake Utilities also guarantees the payment of FPU’s first mortgage bonds. The maximum exposure under this guarantee is the outstanding principal plus accrued interest balances. The outstanding principal balances of FPU’s first mortgage bonds approximate their carrying values (see Note 14 , Long-Term Debt , for further details). We issued letters of credit totaling approximately $8.4 million related to the electric transmission services for FPU's electric division, the firm transportation service agreement between TETLP and our Delaware and Maryland divisions, and to our current and previous primary insurance carriers. These letters of credit have various expiration dates through September 2017 . There have been no draws on these letters of credit as of September 30, 2016 . We do not anticipate that the letters of credit will be drawn upon by the counterparties, and we expect that the letters of credit will be renewed to the extent necessary in the future. Tax-related Contingencies We are subject to various audits and reviews by the federal, state, local and other governmental authorities regarding income taxes and taxes other than income. As of September 30, 2016 and December 31, 2015 , we maintained a liability of approximately $50,000 related to unrecognized income tax benefits. As of December 31, 2015 , we maintained a liability of approximately $ 310,000 related to contingencies for taxes other than income. We did not have a liability related to contingencies for taxes other than income at September 30, 2016 . Other We are involved in certain other legal actions and claims arising in the normal course of business. We are also involved in certain legal and administrative proceedings before various governmental agencies concerning rates. In the opinion of management, the ultimate disposition of these proceedings will not have a material effect on our consolidated financial position, results of operations or cash flows. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 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 Chief Executive Officer) in order to make decisions about resources and to assess performance. The segments are evaluated based on their pre-tax operating income. Our operations comprise two reportable segments: • Regulated Energy . The Regulated Energy segment includes 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. The Unregulated Energy segment includes propane distribution and wholesale marketing operations, and natural gas marketing operations, which are unregulated as to their rates and services. Effective April 1, 2015, this segment includes Aspire Energy, whose services include natural gas gathering, processing, transportation and supply (See Note 3, Acquisitions , regarding the merger with Gatherco). Effective June 2016, this segment includes electricity and steam generation through Eight Flags' CHP plant. 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. The remainder of our operations is presented as “Other businesses and eliminations”, which consists of unregulated subsidiaries that own real estate leased to Chesapeake Utilities, as well as certain corporate costs not allocated to other operations. The following table presents financial information about our reportable segments: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in thousands) Operating Revenues, Unaffiliated Customers Regulated Energy segment $ 68,899 $ 63,526 $ 224,382 $ 234,608 Unregulated Energy segment 39,449 28,387 132,604 120,068 Total operating revenues, unaffiliated customers $ 108,348 $ 91,913 $ 356,986 $ 354,676 Intersegment Revenues (1) Regulated Energy segment $ 1,120 $ 270 $ 2,248 $ 830 Unregulated Energy segment 2,593 1,222 3,759 3,095 Other businesses 240 220 705 660 Total intersegment revenues $ 3,953 $ 1,712 $ 6,712 $ 4,585 Operating Income Regulated Energy segment $ 13,115 $ 11,828 $ 52,660 $ 47,616 Unregulated Energy segment (3,080 ) (1,022 ) 9,267 13,666 Other businesses and eliminations 121 103 350 305 Total operating income 10,156 10,909 62,277 61,587 Other (expense) income, net (28 ) 36 (68 ) (3 ) Interest 2,722 2,492 7,996 7,425 Income before Income Taxes 7,406 8,453 54,213 54,159 Income taxes 2,990 3,334 21,401 21,638 Net Income $ 4,416 $ 5,119 $ 32,812 $ 32,521 (1) All significant intersegment revenues are billed at market rates and have been eliminated from consolidated operating revenues. (in thousands) September 30, 2016 December 31, 2015 Identifiable Assets Regulated Energy segment $ 921,682 $ 872,065 Unregulated Energy segment 207,083 171,840 Other businesses and eliminations 11,745 23,516 Total identifiable assets $ 1,140,510 $ 1,067,421 Our operations are entirely domestic. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss Defined benefit pension and postretirement plan items, unrealized gains (losses) of our propane swap agreements, call options and natural gas futures contracts, designated as commodity contracts cash flow hedges, are the components of our accumulated comprehensive income (loss). The following tables present the changes in the balance of accumulated other comprehensive loss for the nine months ended September 30, 2016 and 2015 . All amounts are presented net of tax. Defined Benefit Commodity Pension and Contracts Postretirement Cash Flow Plan Items Hedges Total (in thousands) As of December 31, 2015 $ (5,580 ) $ (260 ) $ (5,840 ) Other comprehensive gain before reclassifications — 641 641 Amounts reclassified from accumulated other comprehensive loss 263 (93 ) 170 Net current-period other comprehensive income 263 548 811 As of September 30, 2016 $ (5,317 ) $ 288 $ (5,029 ) Defined Benefit Commodity Pension and Contracts Postretirement Cash Flow Plan Items Hedges Total (in thousands) As of December 31, 2014 $ (5,643 ) $ (33 ) $ (5,676 ) Other comprehensive loss before reclassifications — (76 ) (76 ) Amounts reclassified from accumulated other comprehensive loss 248 33 281 Net prior-period other comprehensive income 248 (43 ) 205 As of September 30, 2015 $ (5,395 ) $ (76 ) $ (5,471 ) The following table presents amounts reclassified out of accumulated other comprehensive loss for the three and nine months ended September 30, 2016 and 2015 . Deferred gains or losses for our commodity contracts cash flow hedges are recognized in earnings upon settlement. Gains or losses for our commodity contracts fair value hedges are recognized immediately in earnings. Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in thousands) Amortization of defined benefit pension and postretirement plan items: Prior service cost (1) $ 20 $ 17 $ 60 $ 50 Net loss (1) (166 ) (155 ) (500 ) (465 ) Total before income taxes (146 ) (138 ) (440 ) (415 ) Income tax benefit 58 55 177 167 Net of tax $ (88 ) $ (83 ) $ (263 ) $ (248 ) Gains and losses on commodity contracts cash flow hedges Propane swap agreements (2) $ — $ — $ (322 ) $ — Call options (2) — — — (55 ) Natural gas futures (2) 105 — 464 — Total before income taxes 105 — 142 (55 ) Income tax benefit (expense) (41 ) — (49 ) 22 Net of tax 64 — 93 (33 ) Total reclassifications for the period $ (24 ) $ (83 ) $ (170 ) $ (281 ) (1) These amounts are included in the computation of net periodic costs (benefits). See Note 9 , Employee Benefit Plans , for additional details. (2) These amounts are included in the effects of gains and losses from derivative instruments. See Note 12, Derivative Instruments , for additional details. Amortization of defined benefit pension and postretirement plan items is included in operations expense, and gains and losses on propane swap agreements and call options are included in cost of sales, in the accompanying condensed consolidated statements of income. The income tax benefit is included in income tax expense in the accompanying condensed consolidated statements of income. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Net periodic benefit costs for our pension and post-retirement benefits plans for the three and nine months ended September 30, 2016 and 2015 are set forth in the following tables: Chesapeake FPU Chesapeake SERP Chesapeake FPU For the Three Months Ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 (in thousands) Interest cost $ 105 $ 102 $ 635 $ 626 $ 23 $ 23 $ 11 $ 11 $ 14 $ 15 Expected return on plan assets (131 ) (135 ) (625 ) (777 ) — — — — — — Amortization of prior service cost — — — — — 2 (20 ) (19 ) — — Amortization of net loss 103 91 133 114 22 25 16 17 — 2 Net periodic cost (benefit) 77 58 143 (37 ) 45 50 7 9 14 17 Amortization of pre-merger regulatory asset — — 191 191 — — — — 2 2 Total periodic cost $ 77 $ 58 $ 334 $ 154 $ 45 $ 50 $ 7 $ 9 $ 16 $ 19 Chesapeake FPU Chesapeake SERP Chesapeake FPU For the Nine Months Ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 (in thousands) Interest cost $ 315 $ 306 $ 1,894 $ 1,877 $ 68 $ 68 $ 32 $ 33 $ 41 $ 45 Expected return on plan assets (392 ) (405 ) (2,027 ) (2,330 ) — — — — — — Amortization of prior service cost — — — — — 8 (60 ) (58 ) — — Amortization of net loss 309 272 389 341 66 74 51 53 — 5 Net periodic cost (benefit) 232 173 256 (112 ) 134 150 23 28 41 50 Amortization of pre-merger regulatory asset — — 571 571 — — — — 6 6 Total periodic cost $ 232 $ 173 $ 827 $ 459 $ 134 $ 150 $ 23 $ 28 $ 47 $ 56 We expect to record pension and postretirement benefit costs of approximately $1.7 million for 2016. Included in these costs is approximately $769,000 related to continued amortization of the FPU pension regulatory asset, which represents the portion attributable to FPU’s regulated energy operations for the changes in funded status that occurred, but were not recognized, as part of net periodic benefit costs prior to the FPU merger in 2009. This was deferred as a regulatory asset by FPU prior to the merger, to be recovered through rates pursuant to a previous order by the Florida PSC. The unamortized balance of this regulatory asset was approximately $2.3 million and approximately $2.9 million at September 30, 2016 and December 31, 2015 , respectively. The amortization included in pension expense is also being added to a net periodic loss of approximately $917,000 , which will increase our total expected benefit costs to approximately $1.7 million . Pursuant to a Florida PSC order, FPU continues to record as a regulatory asset a portion of the unrecognized pension and postretirement benefit costs related to its regulated operations after the FPU merger. The portion of the unrecognized pension and postretirement benefit costs related to FPU’s unregulated operations and Chesapeake Utilities' operations is recorded to accumulated other comprehensive loss. The following tables present the amounts included in the regulatory asset and accumulated other comprehensive loss that were recognized as components of net periodic benefit cost during the three months ended September 30, 2016 and 2015 : For the Three Months Ended September 30, 2016 Chesapeake FPU Chesapeake SERP Chesapeake FPU Total (in thousands) Prior service credit $ — $ — $ — $ (20 ) $ — $ (20 ) Net loss 103 133 22 16 — 274 Total recognized in net periodic benefit cost $ 103 $ 133 $ 22 $ (4 ) $ — $ 254 Recognized from accumulated other comprehensive loss (1) $ 103 $ 25 $ 22 $ (4 ) $ — $ 146 Recognized from regulatory asset — 108 — — — 108 Total $ 103 $ 133 $ 22 $ (4 ) $ — $ 254 For the Three Months Ended September 30, 2015 Chesapeake FPU Chesapeake SERP Chesapeake FPU Total (in thousands) Prior service cost (credit) $ — $ — $ 2 $ (19 ) $ — $ (17 ) Net loss 91 114 25 17 2 249 Total recognized in net periodic benefit cost $ 91 $ 114 $ 27 $ (2 ) $ 2 $ 232 Recognized from accumulated other comprehensive loss (1) $ 91 $ 22 $ 27 $ (2 ) $ — $ 138 Recognized from regulatory asset — 92 — — 2 94 Total $ 91 $ 114 $ 27 $ (2 ) $ 2 $ 232 The following tables present the amounts included in the regulatory asset and accumulated other comprehensive loss that were recognized as components of net periodic benefit cost during the nine months ended September 30, 2016 and 2015 : For the Nine Months Ended September 30, 2016 Chesapeake FPU Chesapeake SERP Chesapeake FPU Total (in thousands) Prior service credit $ — $ — $ — $ (60 ) $ — $ (60 ) Net loss 309 389 66 51 — $ 815 Total recognized in net periodic benefit cost $ 309 $ 389 $ 66 $ (9 ) $ — $ 755 Recognized from accumulated other comprehensive loss (1) $ 309 $ 74 $ 66 $ (9 ) $ — $ 440 Recognized from regulatory asset — 315 — — — 315 Total $ 309 $ 389 $ 66 $ (9 ) $ — $ 755 For the Nine Months Ended September 30, 2015 Chesapeake FPU Chesapeake SERP Chesapeake FPU Total (in thousands) Prior service cost (credit) $ — $ — $ 8 $ (58 ) $ — $ (50 ) Net loss 272 341 74 53 5 745 Total recognized in net periodic benefit cost $ 272 $ 341 $ 82 $ (5 ) $ 5 $ 695 Recognized from accumulated other comprehensive loss (1) $ 272 $ 65 $ 82 $ (5 ) $ 1 $ 415 Recognized from regulatory asset — 276 — — 4 280 Total $ 272 $ 341 $ 82 $ (5 ) $ 5 $ 695 (1) See Note 8 , Accumulated Other Comprehensive Loss . During the three and nine months ended September 30, 2016 , we contributed approximately $116,000 and $390,000 , respectively, to the Chesapeake Pension Plan and approximately $374,000 and approximately $1.3 million , respectively, to the FPU Pension Plan. We expect to contribute a total of approximately $508,000 and approximately $1.6 million to the Chesapeake Pension Plan and FPU Pension Plan, respectively, during 2016, which represent the minimum annual contribution payments required. The Chesapeake SERP, the Chesapeake Postretirement Plan and the FPU Medical Plan are unfunded and are expected to be paid out of our general funds. Cash benefits paid under the Chesapeake SERP for the three and nine months ended September 30, 2016 , were approximately $38,000 and approximately $114,000 , respectively. We expect to pay total cash benefits of approximately $151,000 under the Chesapeake Pension SERP in 2016. Cash benefits paid under the Chesapeake Postretirement Plan, primarily for medical claims for the three and nine months ended September 30, 2016 , were approximately $23,000 and approximately $59,000 , respectively. We estimate that approximately $82,000 will be paid for such benefits under the Chesapeake Postretirement Plan in 2016. Cash benefits paid under the FPU Medical Plan, primarily for medical claims for the three and nine months ended September 30, 2016 , were approximately $32,000 and approximately $97,000 , respectively. We estimate that approximately $149,000 will be paid for such benefits under the FPU Medical Plan in 2016. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The investment balances at September 30, 2016 and December 31, 2015 , consisted of the following: (in thousands) September 30, December 31, Rabbi trust (associated with the Deferred Compensation Plan) $ 4,609 $ 3,626 Investments in equity securities 21 18 Total $ 4,630 3,644 We classify these investments as trading securities and report them at their fair value. For the three months ended September 30, 2016 and 2015 , we recorded a net unrealized gain of approximately $193,000 and $238,000 , respectively, in other income in the condensed consolidated statements of income related to these investments. For the nine months ended September 30, 2016 and 2015 , we recorded an unrealized gain of approximately $246,000 and a net unrealized loss of approximately $131,000 , respectively, in other income in the condensed consolidated statements of income related to these investments. For the investment in the Rabbi Trust, we also have recorded an associated liability, which is included in other pension and benefit costs in the condensed consolidated balance sheets and is adjusted each month for the gains and losses incurred by the investments in the Rabbi Trust. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Our non-employee directors and key employees are granted share-based awards through our SICP. We record these share-based awards as compensation costs over the respective service period for which services are received in exchange for an award of equity or equity-based compensation. The compensation cost is based primarily on the fair value of the shares awarded, using the estimated fair value of each share on the date it was granted and the number of shares to be issued at the end of the service period. The table below presents the amounts included in net income related to share-based compensation expense for the three and nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in thousands) Awards to non-employee directors $ 135 $ 165 $ 445 $ 475 Awards to key employees 488 334 1,442 970 Total compensation expense 623 499 1,887 1,445 Less: tax benefit (251 ) (201 ) (760 ) (582 ) Share-based compensation amounts included in net income $ 372 $ 298 $ 1,127 $ 863 Non-employee Directors Shares granted to non-employee directors are issued in advance of the directors’ service periods and are fully vested as of the grant date. We record a prepaid expense equal to the fair value of the shares issued and amortize the expense equally over a service period of one year. In May 2016, each of our non-employee directors received an annual retainer of 953 shares of common stock under the SICP for service as a director through the 2017 Annual Meeting of Stockholders. A summary of the stock activity for our non-employee directors during the nine months ended September 30, 2016 is presented below: Number of Shares Weighted Average Fair Value Outstanding— December 31, 2015 — $ — Granted 8,577 $ 62.90 Vested (8,577 ) $ 62.90 Outstanding— September 30, 2016 — $ — At September 30, 2016 , there was approximately $314,000 of unrecognized compensation expense related to these awards. This expense will be recognized over the directors' remaining service period ending April 30, 2017. Key Employees The table below presents the summary of the stock activity for awards to key employees for the nine months ended September 30, 2016 : Number of Shares Weighted Average Fair Value Outstanding— December 31, 2015 110,398 $ 38.34 Granted 46,571 $ 67.90 Vested (39,553 ) $ 31.79 Expired (2,325 ) $ 42.25 Outstanding— September 30, 2016 115,091 $ 52.36 In February 2016, our Board of Directors granted awards of 46,571 shares of common stock to key employees under the SICP. The shares granted in February 2016 are multi-year awards that will vest at the end of the three -year service period ending December 31, 2018. All of these stock awards are earned based upon the successful achievement of long-term goals, growth and financial results, which comprise both market-based and performance-based conditions or targets. The fair value of each performance-based condition or target is equal to the market price of our common stock on the grant date of each award. For the market-based conditions, we used the Black-Scholes pricing model to estimate the fair value of each market-based award granted. At September 30, 2016 , the aggregate intrinsic value of the SICP awards granted to key employees was approximately $7.0 million . At September 30, 2016 , there was approximately $2.7 million of unrecognized compensation cost related to these awards, which is expected to be recognized from 2016 through 2018. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments We use derivative and non-derivative contracts to engage in trading activities and manage risks related to obtaining adequate supplies and the price fluctuations of natural gas, electricity and propane. We have entered into agreements with suppliers to purchase natural gas, electricity and propane for resale to our customers. Aspire Energy has entered into contracts with producers to secure natural gas to meet its obligations. Purchases under these contracts typically either do not meet the definition of derivatives or are considered “normal purchases and normal sales” and are accounted for on an accrual basis. Our propane distribution and natural gas marketing operations may also enter into fair value hedges of their inventory or cash flow hedges of their future purchase commitments in order to mitigate the impact of wholesale price fluctuations. As of September 30, 2016 , our natural gas and electric distribution operations did not have any outstanding derivative contracts. Hedging Activities in 2016 In 2016, Sharp entered into swap agreements to mitigate the risk of fluctuations in wholesale propane index prices associated with 4.1 million gallons expected to be purchased for the upcoming heating season. Under the swap agreements, Sharp will receive the difference between the index prices (Mont Belvieu prices in December 2016 through September 2017) and the swap prices of $0.5250 and $0.5525 per gallon, to the extent the index prices exceed the swap prices. If the index prices are lower than the swap price, Sharp will pay the difference. The swap agreement essentially fixes the price of the 4.1 million gallons that we expect to purchase for the upcoming heating season. We accounted for these swap agreements as cash flow hedges, and there is no ineffective portion of these hedges. At September 30, 2016 , the swap agreements had a fair value of approximately $237,000 . The change in the fair value of the swap agreements is recorded as unrealized gain/loss in other comprehensive income (loss). In January 2016, PESCO entered into a SCO supplier agreement with Columbia Gas to provide natural gas supply for Columbia Gas to service one of its local distribution customer tranches. PESCO also assumed the obligation to store natural gas inventory to satisfy its obligations under the SCO supplier agreement, which terminates on March 31, 2017. In conjunction with the SCO supplier agreement, PESCO entered into natural gas futures contracts during the second quarter of 2016 in order to protect its natural gas inventory against market price fluctuations. The contracts expire within one year. We had previously accounted for these contracts as fair value hedges with any ineffective portion being reported directly in earnings and offset by any associated gain (loss) on the inventory value being hedged. During the third quarter of 2016, we de-designated the hedges as they were no longer highly effective. We are now accounting for them as derivatives on a mark-to-market basis with the change in fair value reflected as unrealized gain (loss) in current period earnings, and these are no longer offset by any associated gain (loss) in the value of the inventory previously hedged. As of September 30, 2016 , we had a total of 1.8 million Dts/d in natural gas futures contracts with a mark-to-market liability of $29,000 . Beginning in October 2015, PESCO entered into natural gas futures contracts associated with the purchase and sale of natural gas to other specific customers. These contracts expire within two years, and we have accounted for them as cash flow hedges. There is no ineffective portion of these hedges. At September 30, 2016 , PESCO had a total of 6.0 million Dts/d hedged under natural gas futures contracts, with an asset fair value of approximately $240,000 . The change in fair value of the natural gas futures contracts is recorded as unrealized gain (loss) in other comprehensive income (loss). Fair Value Hedges The impact of our natural gas futures commodity contracts previously designated as fair value hedges and the related hedged item on our condensed consolidated income statements for the three and nine months ended September 30, 2016 is presented below: Three Months Ended Nine Months Ended (in thousands) September 30, 2016 (1) September 30, 2016 (1) Commodity contracts $ — $ (233 ) Fair value adjustment for natural gas inventory designated as the hedged item — 681 Total increase in purchased gas cost $ — $ 448 The increase in purchased gas cost is comprised of the following: Basis ineffectiveness $ — $ (83 ) Timing ineffectiveness — 531 Total ineffectiveness $ — $ 448 (1) There were no natural gas futures commodity contracts designated as fair value hedges in 2015. Basis ineffectiveness arises from natural gas market price differences between the locations of the hedged inventory and the delivery location specified in the hedging instruments. Timing ineffectiveness arises due to changes in the difference between the spot price and the futures price, as well as the difference between the timing of the settlement of the futures and the valuation of the underlying physical commodity. As the commodity contract nears the settlement date, spot-to-forward price differences should converge, which should reduce or eliminate the impact of this ineffectiveness on purchased gas cost. To the extent that our natural gas inventory does not qualify as a hedged item in a fair-value hedge, or has not been designated as such, the natural gas inventory is valued at the lower of cost or market. Hedging Activities in 2015 In March, May and June 2015, Sharp paid a total of approximately $143,000 to purchase put options to protect against a decline in propane prices and related potential inventory losses associated with 2.5 million gallons for the propane price cap program in the 2015-2016 heating season. We exercised the put options as propane prices fell below the strike prices of $0.4950 , $0.4888 and $0.4500 per gallon in December 2015 through February 2016 and $0.4200 per gallon in January through March 2016. We received approximately $239,000 , which represents the difference between the market prices and the strike prices during those months. We accounted for the put options as fair value hedges. In March, May and June 2015, Sharp entered into swap agreements to mitigate the risk of fluctuations in wholesale propane index prices associated with 2.5 million gallons purchased in December 2015 through March 2016. Under these swap agreements, Sharp would have received the difference between the index prices (Mont Belvieu prices in December 2015 through March 2016) and the swap prices, which ranged from $0.5200 to $0.5950 per gallon, for each swap agreement, to the extent the index prices exceeded the swap prices. If the index prices were lower than the swap prices, Sharp would pay the difference. These swap agreements essentially fixed the price of the 2.5 million gallons that we purchased during this period. We accounted for the swap agreements as cash flow hedges. Sharp paid approximately $484,000 , which represents the difference between the index prices and swap prices during those months of the swap agreements. Commodity Contracts for Trading Activities Xeron engages in trading activities using forward and futures contracts for propane and crude oil. These contracts are considered derivatives and have been accounted for using the mark-to-market method of accounting. Under this method, the trading contracts are recorded at fair value, and the changes in fair value of those contracts are recognized as unrealized gains or losses in the statements of income for the period of change. As of September 30, 2016 , Xeron had no outstanding contracts that were accounted for as derivatives. Xeron entered into master netting agreements with two counterparties to mitigate exposure to counterparty credit risk. The master netting agreements enable Xeron to net these two counterparties' outstanding accounts receivable and payable, which are presented on a gross basis in the accompanying condensed consolidated balance sheets. At September 30, 2016 , Xeron had no accounts receivable or accounts payable balances to offset with these two counterparties. At December 31, 2015 , Xeron had a right to offset $431,000 of accounts payable with these two counterparties. At December 31, 2015 , Xeron did not have outstanding accounts receivable with these two counterparties. The following tables present information about the fair value and related gains and losses of our derivative contracts. We did not have any derivative contracts with a credit-risk-related contingency. The fair values of the derivative contracts recorded in the condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 , are as follows: Asset Derivatives Fair Value As Of (in thousands) Balance Sheet Location September 30, 2016 December 31, 2015 Derivatives not designated as hedging instruments Forward & Future contracts Mark-to-market energy assets $ — $ 1 Derivatives designated as fair value hedges Put options Mark-to-market energy assets — 152 Derivatives designated as cash flow hedges Natural gas futures contracts Mark-to-market energy assets 240 — Propane swap agreements Mark-to-market energy assets 237 — Total asset derivatives $ 477 $ 153 Liability Derivatives Fair Value As Of (in thousands) Balance Sheet Location September 30, 2016 December 31, 2015 Derivatives not designated as hedging instruments Forward contracts Mark-to-market energy liabilities $ — $ 1 Natural gas futures contracts Mark-to-market energy liabilities 29 — Derivatives designated as fair value hedges Natural gas futures contracts Mark-to-market energy liabilities — — Derivatives designated as cash flow hedges Propane swap agreements Mark-to-market energy liabilities — 323 Natural gas futures contracts Mark-to-market energy liabilities — 109 Total liability derivatives $ 29 $ 433 The effects of gains and losses from derivative instruments on the condensed consolidated financial statements are as follows: Amount of Gain (Loss) on Derivatives: Location of Gain For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) (Loss) on Derivatives 2016 2015 2016 2015 Derivatives not designated as hedging instruments Realized gain (loss) on forward contracts (1) Revenue $ (231 ) $ 187 $ 44 $ 393 Unrealized gain (loss) on forward contracts (1) Revenue (2 ) (7 ) — 71 Natural gas futures contracts Cost of sales 205 — 205 — Propane swap agreements Cost of sales — — — 18 Derivatives designated as fair value hedges Put /Call options Cost of sales — — 73 506 Put /Call options (2) Propane Inventory — (46 ) — (79 ) Natural gas futures contracts Natural Gas Inventory — — (233 ) — Derivatives designated as cash flow hedges Propane swap agreements Cost of sales — — (364 ) — Propane swap agreements Other Comprehensive Gain (Loss) 213 (126 ) 559 (128 ) Call options Cost of sales — — — (81 ) Natural gas futures contracts Cost of sales 105 — 464 — Natural gas futures contracts Other Comprehensive Gain (Loss) (123 ) — 349 — Total $ 167 $ 8 $ 1,097 $ 700 (1) All of the realized and unrealized gain (loss) on forward contracts represents the effect of trading activities on our condensed consolidated statements of income. (2) As a fair value hedge with no ineffective portion, the unrealized gains and losses associated with this call option are recorded in cost of sales, offset by the corresponding change in the value of propane inventory (hedged item), which is also recorded in cost of sales. The amounts in cost of sales offset to zero, and the unrealized gains and losses of this put option effectively changed the value of propane inventory. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are the following: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). Financial Assets and Liabilities Measured at Fair Value The following table summarizes our financial assets and liabilities that are measured at fair value on a recurring basis and the fair value measurements, by level, within the fair value hierarchy as of September 30, 2016 and December 31, 2015 : Fair Value Measurements Using: As of September 30, 2016 Fair Value Quoted- Prices- in Active Markets (Level 1) Significant- Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Assets: Investments—equity securities $ 21 $ 21 $ — $ — Investments—guaranteed income fund $ 485 $ — $ — $ 485 Investments—mutual funds and other $ 4,124 $ 4,124 $ — $ — Mark-to-market energy assets, incl. put options and swap agreements $ 477 $ — $ 477 $ — Liabilities: Mark-to-market energy liabilities incl. swap agreements $ 29 $ — $ 29 $ — Fair Value Measurements Using: As of December 31, 2015 Fair Value Quoted- Prices- in Active Markets (Level 1) Significant- Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Assets: Investments—equity securities $ 18 $ 18 $ — $ — Investments—guaranteed income fund $ 279 $ — $ — $ 279 Investments—mutual funds and other $ 3,347 $ 3,347 $ — $ — Mark-to-market energy assets, incl. put/call options $ 153 $ — $ 153 $ — Liabilities: Mark-to-market energy liabilities, incl. swap agreements $ 433 $ — $ 433 $ — The following valuation techniques were used to measure fair value assets in the tables above on a recurring basis as of September 30, 2016 and December 31, 2015 : Level 1 Fair Value Measurements: Investments - equity securities — The fair values of these trading securities are recorded at fair value based on unadjusted quoted prices in active markets for identical securities. Investments - mutual funds and other — The fair values of these investments, comprised of money market and mutual funds, are recorded at fair value based on quoted net asset values of the shares. Level 2 Fair Value Measurements: Mark-to-market energy assets and liabilities — These forward contracts are valued using market transactions in either the listed or OTC markets. Propane put/call options, swap agreements and natural gas futures contracts – The fair value of the propane put/call options, swap agreements and natural gas futures contracts are measured using market transactions for similar assets and liabilities in either the listed or OTC markets. Level 3 Fair Value Measurements: Investments- guaranteed income fund — The fair values of these investments are recorded at the contract value, which approximates their fair value. The following table sets forth the summary of the changes in the fair value of Level 3 investments for the nine months ended September 30, 2016 and 2015 : Nine Months Ended 2016 2015 (in thousands) Beginning Balance $ 279 $ 287 Purchases and adjustments 120 (11 ) Transfers 88 (3 ) Distribution (8 ) — Investment income 6 3 Ending Balance $ 485 $ 276 Investment income from the Level 3 investments is reflected in other income (expense) in the accompanying condensed consolidated statements of income. At September 30, 2016 , there were no non-financial assets or liabilities required to be reported at fair value. We review our non-financial assets for impairment at least on an annual basis, as required. Other Financial Assets and Liabilities Financial assets with carrying values approximating fair value include cash and cash equivalents and accounts receivable. Financial liabilities with carrying values approximating fair value include accounts payable and other accrued liabilities and short-term debt. The fair value of cash and cash equivalents is measured using the comparable value in the active market and approximates its carrying value (Level 1 measurement). The fair value of short-term debt approximates the carrying value due to its short maturities and because interest rates approximate current market rates (Level 3 measurement). At September 30, 2016 , long-term debt, including current maturities but excluding a capital lease obligation, had a carrying value of approximately $151.8 million . This compares to a fair value of approximately $173.5 million , using a discounted cash flow methodology that incorporates a market interest rate based on published corporate borrowing rates for debt instruments with similar terms and average maturities, and with adjustments for duration, optionality, and risk profile. At December 31, 2015 , long-term debt, including the current maturities but excluding a capital lease obligation, had a carrying value of approximately $153.7 million , compared to the estimated fair value of approximately $165.1 million . The valuation technique used to estimate the fair value of long-term debt would be considered a Level 3 measurement. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Our outstanding long-term debt is shown below: September 30, December 31, (in thousands) 2016 2015 FPU secured first mortgage bonds (1) : 9.08% bond, due June 1, 2022 $ 7,976 $ 7,973 Uncollateralized senior notes: 6.64% note, due October 31, 2017 5,455 5,455 5.50% note, due October 12, 2020 10,000 10,000 5.93% note, due October 31, 2023 22,500 24,000 5.68% note, due June 30, 2026 29,000 29,000 6.43% note, due May 2, 2028 7,000 7,000 3.73% note, due December 16, 2028 20,000 20,000 3.88% note, due May 15, 2029 50,000 50,000 Promissory notes 168 238 Capital lease obligation 3,814 4,824 Total long-term debt 155,913 158,490 Less: current maturities (12,087 ) (9,151 ) Less: debt issuance costs (301 ) (333 ) Total long-term debt, net of current maturities $ 143,525 $ 149,006 (1) FPU secured first mortgage bonds are guaranteed by Chesapeake Utilities. Shelf Agreement On October 8, 2015, we entered into a Shelf Agreement with Prudential. Under the terms of the Shelf Agreement, through October 8, 2018, we may request that Prudential purchase up to $150.0 million of our Shelf Notes at a fixed interest rate and with a maturity date not to exceed 20 years from the date of issuance. Prudential is under no obligation to purchase any of the Shelf Notes. The interest rate and terms of payment of any series of Shelf Notes will be determined at the time of purchase. We currently anticipate the proceeds from the sale of any series of Shelf Notes will be used for general corporate purposes, including refinancing of short-term borrowing and/or repayment of outstanding indebtedness and financing capital expenditures on future projects; however, actual use of such proceeds will be determined at the time of a purchase. On May 13, 2016, we submitted a request that Prudential purchase $70.0 million of 3.25 percent Shelf Notes under the Shelf Agreement. On May 20, 2016, Prudential accepted and confirmed our request. The proceeds received from the issuances of the Shelf Notes will be used to reduce short-term borrowings under the Company’s revolving credit facility, lines of credit and/or to fund capital expenditures. The closing of the sale and issuance of the Shelf Notes is expected to occur on or before April 28, 2017. The Shelf Agreement sets forth certain business covenants to which we are subject when any Shelf Note is outstanding, including covenants that limit or restrict our ability, and the ability of our subsidiaries, to incur indebtedness, place or permit liens and encumbrances on any of our property or the property of our subsidiaries. |
Short-Term Borrowing
Short-Term Borrowing | 9 Months Ended |
Sep. 30, 2016 | |
Short-term Borrowing [Abstract] | |
Short-Term Borrowing | Short-Term Borrowing On October 8, 2015, we entered into the Credit Agreement with the Lenders for a $150.0 million Revolver for a term of five years , subject to the terms and conditions of the Credit Agreement. Borrowings under the Revolver will be used for general corporate purposes, including repayments of short-term borrowings, working capital requirements and capital expenditures. Borrowings under the Revolver will bear interest at: (i) the LIBOR Rate plus an applicable margin of 1.25 percent or less, with such margin based on total indebtedness as a percentage of total capitalization, both as defined by the Credit Agreement, or (ii) the base rate plus 0.25 percent or less. Interest will be payable quarterly, and the Revolver is subject to a commitment fee on the unused portion of the facility. We may extend the expiration date for up to two years on any anniversary date of the Revolver, with such extension subject to the Lenders' approval. We may also request the Lenders to increase the Revolver to $200.0 million , with any increase at the sole discretion of each Lende r. At September 30, 2016 and December 31, 2015, we had outstanding borrowings of $50.0 million and $35.0 million , respectively, under the Revolver. The net proceeds from the sale of our common stock on September 22, 2016, of approximately $57.3 million , after deducting underwriting commissions and expenses, were added to our general funds and used to repay a portion of our short-term debt under unsecured lines of credit. |
Summary of Accounting Policies
Summary of Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation References in this document to the “Company,” “Chesapeake Utilities,” “we,” “us” and “our” are intended to mean Chesapeake Utilities Corporation, its divisions and/or its subsidiaries, as appropriate in the context of the disclosure. The accompanying unaudited condensed consolidated financial statements have been prepared in compliance with the rules and regulations of the SEC and GAAP. In accordance with these rules and regulations, certain information and disclosures normally required for audited financial statements have been condensed or omitted. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in our latest Annual Report on Form 10-K for the year ended December 31, 2015 . In the opinion of management, these financial statements reflect normal recurring adjustments that are necessary for a fair presentation of our results of operations, financial position and cash flows for the interim periods presented. Due to the seasonality of our business, results for interim periods are not necessarily indicative of results for the entire fiscal year. Revenue and earnings are typically greater during the first and fourth quarters, when consumption of energy is highest due to colder temperatures. We reclassified certain amounts in the condensed consolidated balance sheet as of December 31, 2015. We have revised the condensed consolidated statement of cash flows for the nine months ended September 30, 2015 to reflect only property, plant and equipment expenditures paid in cash within the Investing Activities section. The non-cash expenditures previously included in that section have now been included in the change in accounts payable and other accrued liabilities amount within the Operating Activities section. These revisions are considered immaterial to the overall presentation of our condensed consolidated financial statements. On September 22, 2016, we completed a public offering of 960,488 shares of our common stock at a price per share of $62.26 . The net proceeds from the sale of common stock, after deducting underwriting commissions and expenses, were approximately $57.3 million , which were added to our general funds and used primarily to repay a portion of our short-term debt under unsecured lines of credit. |
FASB Statements and Other Authoritative Pronouncements | FASB Statements and Other Authoritative Pronouncements Recently Adopted Accounting Standards Interest - Imputation of Interest (ASC 835-30) - In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs . This standard requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. ASU 2015-03 became effective for us on January 1, 2016, and we applied the provisions of this standard on a retrospective basis. As a result of the adoption of this standard, debt issuance costs totaling $301,000 and $333,000 at September 30, 2016 and December 31, 2015, respectively, previously presented as other deferred charges, a non-current asset, are now presented as a deduction from long-term debt, net of current maturities, in our condensed consolidated balance sheets. Intangibles-Goodwill and Other-Internal-Use Software (ASC 350-40) - In April 2015, the FASB issued ASU 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. Under the new standard, unless a software arrangement includes specific elements enabling customers to possess and operate software on platforms other than that offered by the cloud-based provider, the cost of such arrangements is to be accounted for as an operating expense in the period incurred. ASU 2015-05 became effective for us on January 1, 2016, and has been applied on a prospective basis. The standard did not have a material impact on our financial position or results of operations. Interest-Imputation of Interest (ASC 835-30) - In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . This standard clarifies treatment of debt issuance costs associated with line-of-credit arrangements that were not specifically addressed in ASU 2015-03. Issuance costs incurred in connection with line-of-credit arrangements may be treated as an asset and amortized over the term of the line-of-credit arrangement. ASU 2015-15 became effective for us on January 1, 2016. The standard did not have a material impact on our financial position or results of operations. Business Combinations (ASC 805) - In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments . The standard eliminates the requirement to restate prior period financial statements for measurement period adjustments and requires that the cumulative impact of a measurement-period adjustments (including the impact of prior periods) be recognized in the reporting period in which the adjustment is identified. ASU 2015-16 was effective for our interim and annual financial statements issued after January 1, 2016 and was adopted on a prospective basis. Adoption of this standard did not have a material impact on our financial position or results of operations. Income Taxes (ASC 740) - In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which requires all deferred assets and liabilities along with any related valuation allowance to be classified as noncurrent on the balance sheet for our annual financial statements beginning January 1, 2017 and for our interim financial statements beginning January 1, 2018; however, early adoption is permitted. We adopted this standard in the first quarter of 2016 on a retrospective basis and adjusted the December 31, 2015 balance sheet by eliminating the current deferred income taxes asset and decreasing the noncurrent deferred income taxes liability by $831,000 . Recent Accounting Standards Yet to be Adopted Revenue from Contracts with Customers (ASC 606) - In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . This standard provides a single comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, as well as across industries and capital markets. The standard contains principles that entities will apply to determine the measurement of revenue and when it is recognized. In March 2016, FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , to clarify the implementation guidance on principal versus agent considerations. For public entities, this standard is effective for 2018 interim and annual financial statements. We have engaged a third party to review our contracts with customers and to aid in assessing the impact this standard may have on our financial position and results of operations. Inventory (ASC 330) - In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. Under this guidance, inventories are required to be measured at the lower of cost or net realizable value. Net realizable value represents the estimated selling price less costs associated with completion, disposal and transportation. ASU 2015-11 will be effective for our interim and annual financial statements issued beginning January 1, 2017; however, early adoption is permitted. The standard is to be adopted on a prospective basis. We are assessing the impact this standard may have on our financial position and results of operations. Leases (ASC 842) - In February 2016, the FASB issued ASU 2016-02, Leases, which provides updated guidance regarding accounting for leases. This update requires a lessee to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. ASU 2016-02 will be effective for our annual and interim financial statements beginning January 1, 2019, although early adoption is permitted. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are evaluating the effect of this update on our financial position and results of operations. Compensation-Stock Compensation (ASC 718) - In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, and classification in the statement of cash flows. ASU 2016-09 will be effective for our annual and interim financial statements beginning January 1, 2017, although early adoption is permitted. The amendments included in this update are to be applied prospectively except for changes impacting the presentation of the cash flow statement that can be applied prospectively or retrospectively. We are evaluating the effect of this update on our financial position and results of operations. Statement of Cash Flows (ASC 230) - On August 26, 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments , which clarifies how certain transactions are classified in the statement of cash flows. ASU 2016-15 will be effective for our annual and interim financial statements beginning January 1, 2018, although early adoption is permitted. We are assessing the impact of the adoption of this ASU on our statements of cash flows. |
Calculation of Earnings Per S26
Calculation of Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in thousands, except shares and per share data) Calculation of Basic Earnings Per Share: Net Income $ 4,416 $ 5,119 $ 32,812 $ 32,521 Weighted average shares outstanding 15,372,413 15,258,819 15,324,932 15,035,569 Basic Earnings Per Share $ 0.29 $ 0.34 $ 2.14 $ 2.16 Calculation of Diluted Earnings Per Share: Reconciliation of Numerator: Net Income $ 4,416 $ 5,119 32,812 32,521 Reconciliation of Denominator: Weighted shares outstanding—Basic 15,372,413 15,258,819 15,324,932 15,035,569 Effect of dilutive securities: Share-based compensation 40,370 48,024 41,023 48,072 Adjusted denominator—Diluted 15,412,783 15,306,843 15,365,955 15,083,641 Diluted Earnings Per Share $ 0.29 $ 0.33 $ 2.14 $ 2.16 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Merger Consideration paid | (in thousands) Net Purchase Price Chesapeake Utilities common stock $ 30,164 Cash 27,494 Acquired debt 1,696 Aggregate amount paid in the acquisition 59,354 Less: cash acquired (6,806 ) Net amount paid in the acquisition $ 52,548 |
Purchase price allocation | The purchase price allocation of the Gatherco merger was as follows: Purchase price (in thousands) Allocation Purchase price $ 57,658 Property plant and equipment 53,203 Cash 6,806 Accounts receivable 3,629 Income taxes receivable 3,163 Other assets 425 Total assets acquired 67,226 Long-term debt 1,696 Deferred income taxes 13,409 Accounts payable 3,837 Other current liabilities 745 Total liabilities assumed 19,687 Net identifiable assets acquired 47,539 Goodwill $ 10,119 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | The following table presents financial information about our reportable segments: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in thousands) Operating Revenues, Unaffiliated Customers Regulated Energy segment $ 68,899 $ 63,526 $ 224,382 $ 234,608 Unregulated Energy segment 39,449 28,387 132,604 120,068 Total operating revenues, unaffiliated customers $ 108,348 $ 91,913 $ 356,986 $ 354,676 Intersegment Revenues (1) Regulated Energy segment $ 1,120 $ 270 $ 2,248 $ 830 Unregulated Energy segment 2,593 1,222 3,759 3,095 Other businesses 240 220 705 660 Total intersegment revenues $ 3,953 $ 1,712 $ 6,712 $ 4,585 Operating Income Regulated Energy segment $ 13,115 $ 11,828 $ 52,660 $ 47,616 Unregulated Energy segment (3,080 ) (1,022 ) 9,267 13,666 Other businesses and eliminations 121 103 350 305 Total operating income 10,156 10,909 62,277 61,587 Other (expense) income, net (28 ) 36 (68 ) (3 ) Interest 2,722 2,492 7,996 7,425 Income before Income Taxes 7,406 8,453 54,213 54,159 Income taxes 2,990 3,334 21,401 21,638 Net Income $ 4,416 $ 5,119 $ 32,812 $ 32,521 (1) All significant intersegment revenues are billed at market rates and have been eliminated from consolidated operating revenues. (in thousands) September 30, 2016 December 31, 2015 Identifiable Assets Regulated Energy segment $ 921,682 $ 872,065 Unregulated Energy segment 207,083 171,840 Other businesses and eliminations 11,745 23,516 Total identifiable assets $ 1,140,510 $ 1,067,421 |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Defined Benefit Commodity Pension and Contracts Postretirement Cash Flow Plan Items Hedges Total (in thousands) As of December 31, 2015 $ (5,580 ) $ (260 ) $ (5,840 ) Other comprehensive gain before reclassifications — 641 641 Amounts reclassified from accumulated other comprehensive loss 263 (93 ) 170 Net current-period other comprehensive income 263 548 811 As of September 30, 2016 $ (5,317 ) $ 288 $ (5,029 ) Defined Benefit Commodity Pension and Contracts Postretirement Cash Flow Plan Items Hedges Total (in thousands) As of December 31, 2014 $ (5,643 ) $ (33 ) $ (5,676 ) Other comprehensive loss before reclassifications — (76 ) (76 ) Amounts reclassified from accumulated other comprehensive loss 248 33 281 Net prior-period other comprehensive income 248 (43 ) 205 As of September 30, 2015 $ (5,395 ) $ (76 ) $ (5,471 ) |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in thousands) Amortization of defined benefit pension and postretirement plan items: Prior service cost (1) $ 20 $ 17 $ 60 $ 50 Net loss (1) (166 ) (155 ) (500 ) (465 ) Total before income taxes (146 ) (138 ) (440 ) (415 ) Income tax benefit 58 55 177 167 Net of tax $ (88 ) $ (83 ) $ (263 ) $ (248 ) Gains and losses on commodity contracts cash flow hedges Propane swap agreements (2) $ — $ — $ (322 ) $ — Call options (2) — — — (55 ) Natural gas futures (2) 105 — 464 — Total before income taxes 105 — 142 (55 ) Income tax benefit (expense) (41 ) — (49 ) 22 Net of tax 64 — 93 (33 ) Total reclassifications for the period $ (24 ) $ (83 ) $ (170 ) $ (281 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | Chesapeake FPU Chesapeake SERP Chesapeake FPU For the Three Months Ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 (in thousands) Interest cost $ 105 $ 102 $ 635 $ 626 $ 23 $ 23 $ 11 $ 11 $ 14 $ 15 Expected return on plan assets (131 ) (135 ) (625 ) (777 ) — — — — — — Amortization of prior service cost — — — — — 2 (20 ) (19 ) — — Amortization of net loss 103 91 133 114 22 25 16 17 — 2 Net periodic cost (benefit) 77 58 143 (37 ) 45 50 7 9 14 17 Amortization of pre-merger regulatory asset — — 191 191 — — — — 2 2 Total periodic cost $ 77 $ 58 $ 334 $ 154 $ 45 $ 50 $ 7 $ 9 $ 16 $ 19 Chesapeake FPU Chesapeake SERP Chesapeake FPU For the Nine Months Ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 (in thousands) Interest cost $ 315 $ 306 $ 1,894 $ 1,877 $ 68 $ 68 $ 32 $ 33 $ 41 $ 45 Expected return on plan assets (392 ) (405 ) (2,027 ) (2,330 ) — — — — — — Amortization of prior service cost — — — — — 8 (60 ) (58 ) — — Amortization of net loss 309 272 389 341 66 74 51 53 — 5 Net periodic cost (benefit) 232 173 256 (112 ) 134 150 23 28 41 50 Amortization of pre-merger regulatory asset — — 571 571 — — — — 6 6 Total periodic cost $ 232 $ 173 $ 827 $ 459 $ 134 $ 150 $ 23 $ 28 $ 47 $ 56 |
Amounts Included in Regulatory asset and AOCI [Table Text Block] | For the Three Months Ended September 30, 2016 Chesapeake FPU Chesapeake SERP Chesapeake FPU Total (in thousands) Prior service credit $ — $ — $ — $ (20 ) $ — $ (20 ) Net loss 103 133 22 16 — 274 Total recognized in net periodic benefit cost $ 103 $ 133 $ 22 $ (4 ) $ — $ 254 Recognized from accumulated other comprehensive loss (1) $ 103 $ 25 $ 22 $ (4 ) $ — $ 146 Recognized from regulatory asset — 108 — — — 108 Total $ 103 $ 133 $ 22 $ (4 ) $ — $ 254 For the Three Months Ended September 30, 2015 Chesapeake FPU Chesapeake SERP Chesapeake FPU Total (in thousands) Prior service cost (credit) $ — $ — $ 2 $ (19 ) $ — $ (17 ) Net loss 91 114 25 17 2 249 Total recognized in net periodic benefit cost $ 91 $ 114 $ 27 $ (2 ) $ 2 $ 232 Recognized from accumulated other comprehensive loss (1) $ 91 $ 22 $ 27 $ (2 ) $ — $ 138 Recognized from regulatory asset — 92 — — 2 94 Total $ 91 $ 114 $ 27 $ (2 ) $ 2 $ 232 The following tables present the amounts included in the regulatory asset and accumulated other comprehensive loss that were recognized as components of net periodic benefit cost during the nine months ended September 30, 2016 and 2015 : For the Nine Months Ended September 30, 2016 Chesapeake FPU Chesapeake SERP Chesapeake FPU Total (in thousands) Prior service credit $ — $ — $ — $ (60 ) $ — $ (60 ) Net loss 309 389 66 51 — $ 815 Total recognized in net periodic benefit cost $ 309 $ 389 $ 66 $ (9 ) $ — $ 755 Recognized from accumulated other comprehensive loss (1) $ 309 $ 74 $ 66 $ (9 ) $ — $ 440 Recognized from regulatory asset — 315 — — — 315 Total $ 309 $ 389 $ 66 $ (9 ) $ — $ 755 For the Nine Months Ended September 30, 2015 Chesapeake FPU Chesapeake SERP Chesapeake FPU Total (in thousands) Prior service cost (credit) $ — $ — $ 8 $ (58 ) $ — $ (50 ) Net loss 272 341 74 53 5 745 Total recognized in net periodic benefit cost $ 272 $ 341 $ 82 $ (5 ) $ 5 $ 695 Recognized from accumulated other comprehensive loss (1) $ 272 $ 65 $ 82 $ (5 ) $ 1 $ 415 Recognized from regulatory asset — 276 — — 4 280 Total $ 272 $ 341 $ 82 $ (5 ) $ 5 $ 695 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments schedule [Table Text Block] | The investment balances at September 30, 2016 and December 31, 2015 , consisted of the following: (in thousands) September 30, December 31, Rabbi trust (associated with the Deferred Compensation Plan) $ 4,609 $ 3,626 Investments in equity securities 21 18 Total $ 4,630 3,644 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Shares awarded to non-employee directors [Line Items] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The table below presents the amounts included in net income related to share-based compensation expense for the three and nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in thousands) Awards to non-employee directors $ 135 $ 165 $ 445 $ 475 Awards to key employees 488 334 1,442 970 Total compensation expense 623 499 1,887 1,445 Less: tax benefit (251 ) (201 ) (760 ) (582 ) Share-based compensation amounts included in net income $ 372 $ 298 $ 1,127 $ 863 |
Schedule of Share-based Compensation, Nonemployee Director Stock Award Plan, Activity [Table Text Block] | Number of Shares Weighted Average Fair Value Outstanding— December 31, 2015 — $ — Granted 8,577 $ 62.90 Vested (8,577 ) $ 62.90 Outstanding— September 30, 2016 — $ — |
Award to key employees [Member] | |
Shares awarded to non-employee directors [Line Items] | |
Schedule of Share-based Compensation, Activity | The table below presents the summary of the stock activity for awards to key employees for the nine months ended September 30, 2016 : Number of Shares Weighted Average Fair Value Outstanding— December 31, 2015 110,398 $ 38.34 Granted 46,571 $ 67.90 Vested (39,553 ) $ 31.79 Expired (2,325 ) $ 42.25 Outstanding— September 30, 2016 115,091 $ 52.36 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Contracts Recorded in Condensed Consolidated Balance Sheet | air values of the derivative contracts recorded in the condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 , are as follows: Asset Derivatives Fair Value As Of (in thousands) Balance Sheet Location September 30, 2016 December 31, 2015 Derivatives not designated as hedging instruments Forward & Future contracts Mark-to-market energy assets $ — $ 1 Derivatives designated as fair value hedges Put options Mark-to-market energy assets — 152 Derivatives designated as cash flow hedges Natural gas futures contracts Mark-to-market energy assets 240 — Propane swap agreements Mark-to-market energy assets 237 — Total asset derivatives $ 477 $ 153 Liability Derivatives Fair Value As Of (in thousands) Balance Sheet Location September 30, 2016 December 31, 2015 Derivatives not designated as hedging instruments Forward contracts Mark-to-market energy liabilities $ — $ 1 Natural gas futures contracts Mark-to-market energy liabilities 29 — Derivatives designated as fair value hedges Natural gas futures contracts Mark-to-market energy liabilities — — Derivatives designated as cash flow hedges Propane swap agreements Mark-to-market energy liabilities — 323 Natural gas futures contracts Mark-to-market energy liabilities — 109 Total liability derivatives $ 29 $ 433 Three Months Ended Nine Months Ended (in thousands) September 30, 2016 (1) September 30, 2016 (1) Commodity contracts $ — $ (233 ) Fair value adjustment for natural gas inventory designated as the hedged item — 681 Total increase in purchased gas cost $ — $ 448 The increase in purchased gas cost is comprised of the following: Basis ineffectiveness $ — $ (83 ) Timing ineffectiveness — 531 Total ineffectiveness $ — $ 448 |
Effects of Gains and Losses from Derivative Instruments on Condensed Consolidated Financial Statements | The effects of gains and losses from derivative instruments on the condensed consolidated financial statements are as follows: Amount of Gain (Loss) on Derivatives: Location of Gain For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) (Loss) on Derivatives 2016 2015 2016 2015 Derivatives not designated as hedging instruments Realized gain (loss) on forward contracts (1) Revenue $ (231 ) $ 187 $ 44 $ 393 Unrealized gain (loss) on forward contracts (1) Revenue (2 ) (7 ) — 71 Natural gas futures contracts Cost of sales 205 — 205 — Propane swap agreements Cost of sales — — — 18 Derivatives designated as fair value hedges Put /Call options Cost of sales — — 73 506 Put /Call options (2) Propane Inventory — (46 ) — (79 ) Natural gas futures contracts Natural Gas Inventory — — (233 ) — Derivatives designated as cash flow hedges Propane swap agreements Cost of sales — — (364 ) — Propane swap agreements Other Comprehensive Gain (Loss) 213 (126 ) 559 (128 ) Call options Cost of sales — — — (81 ) Natural gas futures contracts Cost of sales 105 — 464 — Natural gas futures contracts Other Comprehensive Gain (Loss) (123 ) — 349 — Total $ 167 $ 8 $ 1,097 $ 700 |
Fair Value of Financial Instr34
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes our financial assets and liabilities that are measured at fair value on a recurring basis and the fair value measurements, by level, within the fair value hierarchy as of September 30, 2016 and December 31, 2015 : Fair Value Measurements Using: As of September 30, 2016 Fair Value Quoted- Prices- in Active Markets (Level 1) Significant- Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Assets: Investments—equity securities $ 21 $ 21 $ — $ — Investments—guaranteed income fund $ 485 $ — $ — $ 485 Investments—mutual funds and other $ 4,124 $ 4,124 $ — $ — Mark-to-market energy assets, incl. put options and swap agreements $ 477 $ — $ 477 $ — Liabilities: Mark-to-market energy liabilities incl. swap agreements $ 29 $ — $ 29 $ — Fair Value Measurements Using: As of December 31, 2015 Fair Value Quoted- Prices- in Active Markets (Level 1) Significant- Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Assets: Investments—equity securities $ 18 $ 18 $ — $ — Investments—guaranteed income fund $ 279 $ — $ — $ 279 Investments—mutual funds and other $ 3,347 $ 3,347 $ — $ — Mark-to-market energy assets, incl. put/call options $ 153 $ — $ 153 $ — Liabilities: Mark-to-market energy liabilities, incl. swap agreements $ 433 $ — $ 433 $ — |
Summary of Changes in Fair Value of Investments | The following table sets forth the summary of the changes in the fair value of Level 3 investments for the nine months ended September 30, 2016 and 2015 : Nine Months Ended 2016 2015 (in thousands) Beginning Balance $ 279 $ 287 Purchases and adjustments 120 (11 ) Transfers 88 (3 ) Distribution (8 ) — Investment income 6 3 Ending Balance $ 485 $ 276 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Outstanding Long-Term Debt | Our outstanding long-term debt is shown below: September 30, December 31, (in thousands) 2016 2015 FPU secured first mortgage bonds (1) : 9.08% bond, due June 1, 2022 $ 7,976 $ 7,973 Uncollateralized senior notes: 6.64% note, due October 31, 2017 5,455 5,455 5.50% note, due October 12, 2020 10,000 10,000 5.93% note, due October 31, 2023 22,500 24,000 5.68% note, due June 30, 2026 29,000 29,000 6.43% note, due May 2, 2028 7,000 7,000 3.73% note, due December 16, 2028 20,000 20,000 3.88% note, due May 15, 2029 50,000 50,000 Promissory notes 168 238 Capital lease obligation 3,814 4,824 Total long-term debt 155,913 158,490 Less: current maturities (12,087 ) (9,151 ) Less: debt issuance costs (301 ) (333 ) Total long-term debt, net of current maturities $ 143,525 $ 149,006 (1) FPU secured first mortgage bonds are guaranteed by Chesapeake Utilities. |
Summary of Accounting policie36
Summary of Accounting policies - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Stock Issued During Period, Shares, New Issues | 960,488 | ||
Stock Issued During Period, Value, Other | $ 62.26 | ||
Proceeds from Issuance of Common Stock | 57,306,000 | $ 0 | |
Debt issuance costs | $ (301,000) | $ (333,000) | |
Deferred Tax Assets, Net of Valuation Allowance, Current | $ 831,000 |
Calculation of Earnings Per S37
Calculation of Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Calculation of Basic Earnings Per Share: | |||||
Net Income | $ 4,416 | $ 5,119 | $ 32,812 | $ 32,521 | $ 41,140 |
Weighted shares outstanding (shares) | 15,372,413 | 15,258,819 | 15,324,932 | 15,035,569 | |
Basic Earnings Per Share (in dollars per share) | $ 0.29 | $ 0.34 | $ 2.14 | $ 2.16 | |
Reconciliation of Numerator: | |||||
Net Income | $ 4,416 | $ 5,119 | $ 32,812 | $ 32,521 | $ 41,140 |
Reconciliation of Denominator: | |||||
Weighted shares outstanding - Basic (shares) | 15,372,413 | 15,258,819 | 15,324,932 | 15,035,569 | |
Effect of dilutive securities: | |||||
Share-based compensation (shares) | 40,370 | 48,024 | 41,023 | 48,072 | |
Adjusted denominator-Diluted (shares) | 15,412,783 | 15,306,843 | 15,365,955 | 15,083,641 | |
Diluted Earnings Per Share (in dollars per share) | $ 0.29 | $ 0.33 | $ 2.14 | $ 2.16 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ / shares in Units, $ in Thousands | Apr. 01, 2015USD ($)mi | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | |||||||
Transaction costs | $ 514 | $ 786 | |||||
Revenues | $ 108,348 | $ 91,913 | $ 356,986 | $ 354,676 | |||
Net income | $ 4,416 | $ 5,119 | $ 32,812 | $ 32,521 | 41,140 | ||
Diluted (in dollars per share) | $ / shares | $ 0.29 | $ 0.33 | $ 2.14 | $ 2.16 | |||
Goodwill | $ 15,070 | $ 15,070 | 14,548 | ||||
Gatherco [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Number of pipeline miles | mi | 2,500 | ||||||
Number of counties served | 40 | ||||||
Number of customers served | 20,000 | ||||||
Number of producers served | 300 | ||||||
Shares of common stock issued at closing (shares) | shares | 592,970 | ||||||
Common stock issued at closing | $ 30,200 | $ 30,164 | 30,164 | ||||
Cash paid | 27,500 | 27,494 | |||||
Long-term debt | 1,696 | 1,696 | 1,696 | ||||
Cash acquired | 6,800 | 6,806 | 6,806 | ||||
Additional contingent cash consideration | $ 15,000 | 15,000 | |||||
Period for revenue generated from potential new gathering opportunities | 5 years | ||||||
Transaction costs | $ 1,300 | ||||||
Revenues | $ 5,600 | 18,400 | |||||
Net income | $ (563) | 1,100 | |||||
Diluted (in dollars per share) | $ / shares | $ 0.03 | ||||||
Goodwill | $ 11,100 | $ 10,119 | $ 10,119 |
Acquisitions - Purchase Conside
Acquisitions - Purchase Considerations (Details) - Gatherco [Member] - USD ($) $ in Thousands | Apr. 01, 2015 | Sep. 30, 2016 |
Business Acquisition [Line Items] | ||
Chesapeake Utilities common stock | $ 30,200 | $ 30,164 |
Cash | 27,500 | 27,494 |
Acquired debt | 1,696 | 1,696 |
Purchase price | 57,658 | |
Less: cash acquired | $ (6,800) | (6,806) |
Gross [Member] | ||
Business Acquisition [Line Items] | ||
Purchase price | 59,354 | |
Net [Member] | ||
Business Acquisition [Line Items] | ||
Purchase price | $ 52,548 |
Acquisitions - Gatherco purchas
Acquisitions - Gatherco purchase price allocation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | Apr. 01, 2015 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 15,070 | $ 14,548 | |
Gatherco [Member] | |||
Business Acquisition [Line Items] | |||
Purchase price | 57,658 | ||
Property plant and equipment | 53,203 | ||
Cash | 6,806 | $ 6,800 | |
Accounts receivable | 3,629 | ||
Income taxes receivable | 3,163 | ||
Other assets | 425 | ||
Total assets acquired | 67,226 | ||
Long-term debt | 1,696 | 1,696 | |
Deferred income taxes | 13,409 | ||
Accounts payable | 3,837 | ||
Other current liabilities | 745 | ||
Total liabilities assumed | 19,687 | ||
Net identifiable assets acquired | 47,539 | ||
Goodwill | $ 10,119 | $ 11,100 |
Rates and Other Regulatory Ac41
Rates and Other Regulatory Activities - Additional Information (Detail) $ in Thousands | Feb. 19, 2016USD ($) | Dec. 21, 2015USD ($) | Oct. 13, 2015dekatherm / d | Dec. 31, 2015USD ($) | Sep. 30, 2016USD ($)mi | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)dekatherm / dmiin | Sep. 30, 2015USD ($) | Jul. 21, 2016mi | May 12, 2016mi |
Rates and Other Regulatory Activities [Line Items] | ||||||||||
Public Utilities, Interim Rate Increase (Decrease), Amount | $ | $ 2,500 | |||||||||
Revenues | $ | $ 108,348 | $ 91,913 | $ 356,986 | $ 354,676 | ||||||
Final Miles of Pipeline | 23 | |||||||||
DELAWARE | ||||||||||
Rates and Other Regulatory Activities [Line Items] | ||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ | $ 4,700 | |||||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 10.00% | |||||||||
Revenues | $ | 469 | $ 1,350 | ||||||||
Revenues Net Of Tax | $ | $ 280 | $ 817 | ||||||||
Public Utilities Interim Requested Rate Increase (Decrease) Percentage | 5.00% | |||||||||
MARYLAND | ||||||||||
Rates and Other Regulatory Activities [Line Items] | ||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ | $ 950 | |||||||||
Public Utilities Interim Requested Rate Increase (Decrease) Percentage | 5.00% | |||||||||
Eastern Shore [Member] | ||||||||||
Rates and Other Regulatory Activities [Line Items] | ||||||||||
Volume The Expansion Project Is Expected to Provide | dekatherm / d | 53,000 | |||||||||
Total Capacity After Pipeline Improvements | dekatherm / d | 160,000 | |||||||||
White Oak Lateral Mainline Expansion [Member] | Eastern Shore [Member] | ||||||||||
Rates and Other Regulatory Activities [Line Items] | ||||||||||
Volume The Expansion Project Is Expected to Provide | dekatherm / d | 45,000 | |||||||||
Number of pipeline miles | 7.2 | 7.2 | ||||||||
Lateral diamater of pipeline to be installed | in | 16 | |||||||||
Horsepower Of Additional Compression | 3,550 | |||||||||
Miles Of Natural Gas Pipeline | 5.4 | 5.4 | ||||||||
System Reliability Project [Member] | Eastern Shore [Member] | ||||||||||
Rates and Other Regulatory Activities [Line Items] | ||||||||||
Number of pipeline miles | 10.1 | 10.1 | ||||||||
Lateral diamater of pipeline to be installed | in | 16 | |||||||||
Number Of Environmental Conditions | 1 | 1 | 19 | |||||||
2017 Expansion Project [Member] | Eastern Shore [Member] | ||||||||||
Rates and Other Regulatory Activities [Line Items] | ||||||||||
Volume The Expansion Project Is Expected to Provide | dekatherm / d | 86,437 | |||||||||
Number of pipeline miles | 33 | |||||||||
Horsepower Of Additional Compression | 3,550 | |||||||||
Miles Of Natural Gas Pipeline | 17 | |||||||||
Pressure Maintenance Operations | 2 | |||||||||
number of customers | 7 | |||||||||
firm natural gas transportation deliverability | dekatherm / d | 61,162 |
Environmental Commitments and42
Environmental Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016USD ($)siteclaim | Sep. 30, 2016USD ($)siteclaim | Dec. 31, 2015USD ($) | |
Environmental Commitments And Contingencies [Line Items] | |||
Company's exposure in number of former Manufactured Gas Plant Sites | site | 7 | ||
Environmental liabilities | $ 8,682,000 | $ 8,682,000 | $ 8,942,000 |
Restructuring Reserve, Accrual Adjustment | (431,250) | ||
Proceeds from Legal Settlements | 500,000 | ||
Seaford [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Environmental liabilities | 273,000 | 273,000 | |
Regulatory Assets | 267,000 | 267,000 | |
Accrual for Environmental Loss Contingencies | $ 156,000 | 156,000 | |
Sanford Florida [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Cost of remedy for settlements of claims | $ 20,000,000 | ||
Loss Contingency, Pending Claims, Number | claim | 2 | 2 | |
Environmental remediation expense | $ 24,000 | ||
Key West Florida [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Period Of Regulatory Inactivity | 17 years | ||
Environmental Exit Costs, Anticipated Cost | $ 50,000 | ||
Number of Wells | 2 | ||
Winter Haven Florida [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Environmental remediation expense | $ 425,000 | ||
Additional remediation costs | $ 100,000 | $ 100,000 | |
Salisbury Maryland [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Number of Wells | 1 | ||
Maximum Costs Of Monitoring Well | $ 5,000 | ||
Aspire Energy [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Cost of remedy for settlements of claims | $ 1,600,000 | ||
Number Of Environmental Sites | site | 8 | 8 | |
FPU [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Environmental liabilities | $ 9,900,000 | $ 9,900,000 | |
Approval of recovery of environmental costs | 14,000,000 | ||
Environmental costs recovered | $ 10,500,000 | ||
FPU [Member] | Sanford Florida [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Environmental remediation expense percent | 5.00% | ||
FPU [Member] | Manufactured Gas Plant [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Regulatory Assets | 3,500,000 | $ 3,500,000 | |
Chesapeake [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Environmental liabilities | 298,000 | 298,000 | |
Minimum [Member] | Seaford [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Estimated costs of remediation range, minimum | 273,000 | ||
Minimum [Member] | West Palm Beach Florida [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Estimated costs of remediation range, minimum | 4,500,000 | ||
Maximum [Member] | Seaford [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Estimated costs of remediation range, minimum | $ 465,000 | ||
Maximum [Member] | West Palm Beach Florida [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Estimated costs of remediation range, minimum | 15,400,000 | ||
Maximum [Member] | Sanford Florida [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Estimated costs of remediation range, minimum | 13,000,000 | ||
Maximum [Member] | Key West Florida [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Environmental Exit Costs, Anticipated Cost | 8,000 | ||
Maximum [Member] | Pensacola Florida [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Environmental Exit Costs, Anticipated Cost | 5,000 | ||
Maximum [Member] | FPU [Member] | Sanford Florida [Member] | |||
Environmental Commitments And Contingencies [Line Items] | |||
Estimated costs of remediation range, minimum | $ 650,000 |
Other Commitments and Conting43
Other Commitments and Contingencies - Additional Information (Detail) $ in Thousands, gal in Millions | 3 Months Ended | |
Sep. 30, 2016USD ($)gal | Dec. 31, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of years to purchase propane under contract | 6 years | |
Estimated current annual commitment | gal | 6.5 | |
Total liabilities to tangible net worth minimum times | 3.75 | |
Fixed charge coverage ratio minimum times | 1.5 | |
Time to cure ratio | 30 days | |
Funds from operations interest coverage ratio minimum times | 2 | |
Total debt to capital maximum | 0.65 | |
Maximum authorized liability under such guarantees and letters of credit | $ 65,000 | |
Aggregate guaranteed amount | 53,900 | |
Draws on letters of credit | 8,400 | |
Liability related to unrecognized income tax benefits | $ 50 | |
Liability related to contingencies for taxes other than income | $ 310 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Operating Revenues, Unaffiliated Customers | ||||||
Total operating revenues, unaffiliated customers | $ 108,348 | $ 91,913 | $ 356,986 | $ 354,676 | ||
Intersegment Revenues | ||||||
Total operating revenues, unaffiliated customers | 108,348 | 91,913 | 356,986 | 354,676 | ||
Operating Income | ||||||
Total operating income | 10,156 | 10,909 | 62,277 | 61,587 | ||
Other income, net of other expenses | (28) | 36 | (68) | (3) | ||
Interest | 2,722 | 2,492 | 7,996 | 7,425 | ||
Income Before Income Taxes | 7,406 | 8,453 | 54,213 | 54,159 | ||
Income taxes | 2,990 | 3,334 | 21,401 | 21,638 | ||
Net Income | 4,416 | 5,119 | 32,812 | 32,521 | $ 41,140 | |
Identifiable Assets | ||||||
Total identifiable assets | 1,140,510 | 1,140,510 | 1,067,421 | |||
Regulated Energy [Member] | ||||||
Operating Income | ||||||
Total operating income | 13,115 | 11,828 | 52,660 | 47,616 | ||
Identifiable Assets | ||||||
Total identifiable assets | 921,682 | 921,682 | 872,065 | |||
Unregulated Energy [Member] | ||||||
Operating Income | ||||||
Total operating income | (3,080) | (1,022) | 9,267 | 13,666 | ||
Identifiable Assets | ||||||
Total identifiable assets | 207,083 | 207,083 | 171,840 | |||
Other [Member] | ||||||
Identifiable Assets | ||||||
Total identifiable assets | 11,745 | 11,745 | $ 23,516 | |||
Other and eliminations [Member] | ||||||
Operating Income | ||||||
Total operating income | 121 | 103 | 350 | 305 | ||
Operating Revenues, Unaffiliated Customers [Member] | ||||||
Operating Revenues, Unaffiliated Customers | ||||||
Total operating revenues, unaffiliated customers | 108,348 | 91,913 | 356,986 | 354,676 | ||
Intersegment Revenues | ||||||
Total operating revenues, unaffiliated customers | 108,348 | 91,913 | 356,986 | 354,676 | ||
Operating Revenues, Unaffiliated Customers [Member] | Regulated Energy [Member] | ||||||
Operating Revenues, Unaffiliated Customers | ||||||
Total operating revenues, unaffiliated customers | 68,899 | 63,526 | 224,382 | 234,608 | ||
Intersegment Revenues | ||||||
Total operating revenues, unaffiliated customers | 68,899 | 63,526 | 224,382 | 234,608 | ||
Operating Revenues, Unaffiliated Customers [Member] | Unregulated Energy [Member] | ||||||
Operating Revenues, Unaffiliated Customers | ||||||
Total operating revenues, unaffiliated customers | 39,449 | 28,387 | 132,604 | 120,068 | ||
Intersegment Revenues | ||||||
Total operating revenues, unaffiliated customers | 39,449 | 28,387 | 132,604 | 120,068 | ||
Intersegment Revenues [Member] | ||||||
Operating Revenues, Unaffiliated Customers | ||||||
Total operating revenues, unaffiliated customers | [1] | 3,953 | 1,712 | 6,712 | 4,585 | |
Intersegment Revenues | ||||||
Total operating revenues, unaffiliated customers | [1] | 3,953 | 1,712 | 6,712 | 4,585 | |
Intersegment Revenues [Member] | Regulated Energy [Member] | ||||||
Operating Revenues, Unaffiliated Customers | ||||||
Total operating revenues, unaffiliated customers | [1] | 1,120 | 270 | 2,248 | 830 | |
Intersegment Revenues | ||||||
Total operating revenues, unaffiliated customers | [1] | 1,120 | 270 | 2,248 | 830 | |
Intersegment Revenues [Member] | Unregulated Energy [Member] | ||||||
Operating Revenues, Unaffiliated Customers | ||||||
Total operating revenues, unaffiliated customers | [1] | 2,593 | 1,222 | 3,759 | 3,095 | |
Intersegment Revenues | ||||||
Total operating revenues, unaffiliated customers | [1] | 2,593 | 1,222 | 3,759 | 3,095 | |
Intersegment Revenues [Member] | Other [Member] | ||||||
Operating Revenues, Unaffiliated Customers | ||||||
Total operating revenues, unaffiliated customers | [1] | 240 | 220 | 705 | 660 | |
Intersegment Revenues | ||||||
Total operating revenues, unaffiliated customers | [1] | $ 240 | $ 220 | $ 705 | $ 660 | |
[1] | (1) All significant intersegment revenues are billed at market rates and have been eliminated from consolidated operating revenues. |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Roll Forward] | ||
Beginning balance | $ (5,840) | $ (5,676) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 641 | (76) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 170 | 281 |
Net current-period other comprehensive income (loss) | 811 | 205 |
Ending balance | (5,029) | (5,471) |
UnrealizedGainsLossesFromDefinedBenefitPensionAndPostretirementPlanItems [Member] | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Roll Forward] | ||
Beginning balance | (5,580) | (5,643) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 263 | 248 |
Net current-period other comprehensive income (loss) | 263 | 248 |
Ending balance | (5,317) | (5,395) |
Accumulated (Gain) Loss from Commodity Contracts Cash Flows Hedges [Member] | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Roll Forward] | ||
Beginning balance | (260) | (33) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 641 | (76) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (93) | 33 |
Net current-period other comprehensive income (loss) | 548 | (43) |
Ending balance | $ 288 | $ (76) |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Loss) - Reclassifications of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Amortization of pension and postretirement items: | |||||
Tax benefit | $ (2,990) | $ (3,334) | $ (21,401) | $ (21,638) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Amortization of pension and postretirement items: | |||||
Net of tax | (24) | (83) | (170) | (281) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Amortization of pension and postretirement items: | |||||
Prior service cost | [1] | 20 | 17 | 60 | 50 |
Net loss | [1] | 166 | 155 | 500 | 465 |
Total before tax | (146) | (138) | (440) | (415) | |
Tax benefit | 58 | 55 | 177 | 167 | |
Net of tax | (88) | (83) | (263) | (248) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated (Gain) Loss from Commodity Contracts Cash Flows Hedges [Member] | |||||
Amortization of pension and postretirement items: | |||||
Other Comprehensive Income Loss Adjustments AOCI Swap Agreements | [2] | 0 | (322) | 0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | [2] | 0 | 0 | 0 | (55) |
Total before tax | 105 | 0 | 142 | (55) | |
Tax benefit | (41) | (49) | 22 | ||
Net of tax | 64 | 0 | 93 | (33) | |
Natural Gas Futures [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated (Gain) Loss from Commodity Contracts Cash Flows Hedges [Member] | |||||
Amortization of pension and postretirement items: | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | [2] | $ 105 | $ 0 | $ 464 | $ 0 |
[1] | These amounts are included in the computation of net periodic costs (benefits). See Note 9, Employee Benefit Plans, for additional details. | ||||
[2] | (2) These amounts are included in the effects of gains and losses from derivative instruments. See Note 12, Derivative Instruments, for additional details. |
Employee Benefit Plans (Detail)
Employee Benefit Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of prior service cost | $ (20) | $ (17) | $ (60) | $ (50) |
Amortization of net loss | 274 | 249 | 815 | 745 |
Chesapeake Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 105 | 102 | 315 | 306 |
Expected return on plan assets | (131) | (135) | (392) | (405) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of net loss | 103 | 91 | 309 | 272 |
Net periodic cost (benefit) | 77 | 58 | 232 | 173 |
Amortization of pre-merger regulatory asset | 0 | 0 | 0 | 0 |
Total periodic cost | 77 | 58 | 232 | 173 |
Florida Public Utilities Company Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 635 | 626 | 1,894 | 1,877 |
Expected return on plan assets | (625) | (777) | (2,027) | (2,330) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of net loss | 133 | 114 | 389 | 341 |
Net periodic cost (benefit) | 143 | (37) | 256 | (112) |
Amortization of pre-merger regulatory asset | 191 | 191 | 571 | 571 |
Total periodic cost | 334 | 154 | 827 | 459 |
Chesapeake Pension SERP [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 23 | 23 | 68 | 68 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 2 | 0 | 8 |
Amortization of net loss | 22 | 25 | 66 | 74 |
Net periodic cost (benefit) | 45 | 50 | 134 | 150 |
Amortization of pre-merger regulatory asset | 0 | 0 | 0 | 0 |
Total periodic cost | 45 | 50 | 134 | 150 |
Chesapeake Postretirement Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 11 | 11 | 32 | 33 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (20) | (19) | (60) | (58) |
Amortization of net loss | 16 | 17 | 51 | 53 |
Net periodic cost (benefit) | 7 | 9 | 23 | 28 |
Amortization of pre-merger regulatory asset | 0 | 0 | 0 | 0 |
Total periodic cost | 7 | 9 | 23 | 28 |
Florida Public Utilities Company Medical Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 14 | 15 | 41 | 45 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of net loss | 0 | 2 | 0 | 5 |
Net periodic cost (benefit) | 14 | 17 | 41 | 50 |
Amortization of pre-merger regulatory asset | 2 | 2 | 6 | 6 |
Total periodic cost | $ 16 | $ 19 | $ 47 | $ 56 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected pension and postretirement benefit costs | $ 1,700 | ||||
Expected amortization of pre merger regulatory asset | 769 | ||||
Florida Public Utilities Company Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Unamortized balance of regulatory asset | $ 2,300 | 2,300 | $ 2,900 | ||
Defined Benefit Plan, Net Periodic Benefit Cost | 143 | $ (37) | 256 | $ (112) | |
Contribution to pension plan | 374 | 1,300 | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 1,600 | ||||
Consolidated [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | (917) | ||||
Chesapeake Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | 77 | 58 | 232 | 173 | |
Contribution to pension plan | 116 | 390 | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 508 | ||||
Chesapeake Pension SERP [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | 45 | 50 | 134 | 150 | |
Contribution to pension plan | 38 | 114 | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 151 | ||||
Chesapeake Postretirement Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | 7 | 9 | 23 | 28 | |
Contribution to pension plan | 23 | 59 | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 82 | ||||
Florida Public Utilities Company Medical Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | 14 | $ 17 | 41 | $ 50 | |
Contribution to pension plan | $ 32 | 97 | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 149 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Included in Regulatory Asset and Accumulated Other Comprehensive Income/Loss Recognized as Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||
Prior service cost (credit) | $ (20) | $ (17) | $ (60) | $ (50) | |
Net loss | 274 | 249 | 815 | 745 | |
Recognized from accumulated other comprehensive loss | [1] | 146 | 138 | 440 | 415 |
Recognized from regulatory asset | 108 | 94 | 315 | 280 | |
Total recognized in net periodic benefit cost | 254 | 232 | 755 | 695 | |
Chesapeake Pension Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||
Prior service cost (credit) | 0 | 0 | 0 | 0 | |
Net loss | 103 | 91 | 309 | 272 | |
Recognized from accumulated other comprehensive loss | [1] | 103 | 91 | 309 | 272 |
Recognized from regulatory asset | 0 | 0 | 0 | 0 | |
Total recognized in net periodic benefit cost | 103 | 91 | 309 | 272 | |
Florida Public Utilities Company Pension Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||
Prior service cost (credit) | 0 | 0 | 0 | 0 | |
Net loss | 133 | 114 | 389 | 341 | |
Recognized from accumulated other comprehensive loss | [1] | 25 | 22 | 74 | 65 |
Recognized from regulatory asset | 108 | 92 | 315 | 276 | |
Total recognized in net periodic benefit cost | 133 | 114 | 389 | 341 | |
Chesapeake Pension SERP [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||
Prior service cost (credit) | 0 | 2 | 0 | 8 | |
Net loss | 22 | 25 | 66 | 74 | |
Recognized from accumulated other comprehensive loss | [1] | 22 | 27 | 66 | 82 |
Recognized from regulatory asset | 0 | 0 | 0 | 0 | |
Total recognized in net periodic benefit cost | 22 | 27 | 66 | 82 | |
Chesapeake Postretirement Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||
Prior service cost (credit) | (20) | (19) | (60) | (58) | |
Net loss | 16 | 17 | 51 | 53 | |
Recognized from accumulated other comprehensive loss | [1] | (4) | (2) | (9) | (5) |
Recognized from regulatory asset | 0 | 0 | 0 | 0 | |
Total recognized in net periodic benefit cost | (4) | (2) | (9) | (5) | |
Florida Public Utilities Company Medical Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||
Prior service cost (credit) | 0 | 0 | 0 | 0 | |
Net loss | 0 | 2 | 0 | 5 | |
Recognized from accumulated other comprehensive loss | [1] | 0 | 0 | 0 | 1 |
Recognized from regulatory asset | 0 | 2 | 0 | 4 | |
Total recognized in net periodic benefit cost | $ 0 | $ 2 | $ 0 | $ 5 | |
[1] | (1) See Note 8, Accumulated Other Comprehensive Loss. |
Investments - Schedule of Inves
Investments - Schedule of Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investments schedule [Line Items] | ||
Investments, at fair value | $ 4,630 | $ 3,644 |
Rabbi Trust Associated With Deferred Compensation Plan [Member] | ||
Investments schedule [Line Items] | ||
Investments, at fair value | $ 4,609 | 3,626 |
Equity Securities [Member] | ||
Investments schedule [Line Items] | ||
Investments, at fair value | $ 18 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized gain, net of other expenses | $ 193 | $ 238 | $ 246 | $ 131 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Amounts Included in Net Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense | $ 623 | $ 499 | $ 1,887 | $ 1,445 |
Less: tax benefit | (251) | (201) | (760) | (582) |
Share-Based Compensation amounts included in net income | 372 | 298 | 1,127 | 863 |
Awards to non-employee directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense | 135 | 165 | 445 | 475 |
Award to key employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense | $ 488 | $ 334 | $ 1,442 | $ 970 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Activity under the SICP (Detail) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Number of Shares | |
Granted (shares) | 953 |
Awards to non-employee directors [Member] | |
Number of Shares | |
Outstanding - December 31, 2015 (shares) | 0 |
Granted (shares) | 8,577 |
Vested (shares) | (8,577) |
Outstanding - September 30, 2016 (shares) | 0 |
Weighted Average Fair Value | |
Outstanding - December 31, 2015 (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 62.90 |
Vested (in dollars per share) | $ / shares | 62.90 |
Outstanding - September 30, 2016 (in dollars per share) | $ / shares | $ 0 |
Award to key employees [Member] | |
Number of Shares | |
Outstanding - December 31, 2015 (shares) | 110,398 |
Granted (shares) | 46,571 |
Vested (shares) | (39,553) |
Expired (shares) | (2,325) |
Outstanding - September 30, 2016 (shares) | 115,091 |
Weighted Average Fair Value | |
Outstanding - December 31, 2015 (in dollars per share) | $ / shares | $ 38.34 |
Granted (in dollars per share) | $ / shares | 67.90 |
Vested (in dollars per share) | $ / shares | 31.79 |
Expired (in dollars per share) | $ / shares | 42.25 |
Outstanding - September 30, 2016 (in dollars per share) | $ / shares | $ 52.36 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted awards (shares) | shares | 953 |
Unrecognized compensation cost | $ | $ 2,700 |
Awards to non-employee directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amortization of expense equally over a service period | 1 year |
Granted awards (shares) | shares | 8,577 |
Unrecognized compensation expense related to the awards to non-employee directors | $ | $ 314 |
Award to key employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted awards (shares) | shares | 46,571 |
Vesting period | 3 years |
Intrinsic value of the SICP awards | $ | $ 7,000 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) $ in Thousands, gal in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($)Counterparty$ / gal | Sep. 30, 2016USD ($)Counterparty$ / galgal | Dec. 31, 2015USD ($)Counterparty$ / galgal | |
Derivative [Line Items] | |||
Energy Marketing Contracts Assets, Current | $ 477 | $ 477 | $ 153 |
Energy Marketing Contract Liabilities, Current | 29 | $ 29 | $ 433 |
Propane Swap Agreement [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount, Volume | gal | 4.1 | 2.5 | |
Cash Paid On Derivative Settlement | 484 | ||
Put Option [Member] | |||
Derivative [Line Items] | |||
Payments for Derivative Instrument, Financing Activities | $ 143 | ||
Cash Received On Derivative Settlement | $ 239 | ||
Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Number Of Counterparties With Master Repurchase Agreements | Counterparty | 2 | 2 | 2 |
Accounts Payable Subject To Master Netting Arrangement | $ 431 | ||
Mark To Market Energy Assets [Member] | Propane [Member] | |||
Derivative [Line Items] | |||
Energy Marketing Contracts Assets, Current | $ 237 | $ 237 | |
Mark To Market Energy Assets [Member] | Future [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount, Volume | gal | 6 | ||
Mark To Market Energy Liabilities [Member] | Future [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount, Volume | gal | 1.8 | ||
Strike Price 4 [Member] | Propane Swap Agreement [Member] | |||
Derivative [Line Items] | |||
Strike Price Per Gallon For The Propane Swap Agreements | $ / gal | 0.5250 | 0.5250 | 0.5200 |
Strike Price 2 [Member] | Propane Swap Agreement [Member] | |||
Derivative [Line Items] | |||
Strike Price Per Gallon For The Propane Swap Agreements | $ / gal | 0.5525 | 0.5525 | 0.5950 |
Put Option Strike Price 1 [Member] | Put Option [Member] | |||
Derivative [Line Items] | |||
Derivative, Price Risk Option Strike Price | $ / gal | 0.4950 | ||
Put Option Strike Price 2 [Member] | Put Option [Member] | |||
Derivative [Line Items] | |||
Derivative, Price Risk Option Strike Price | $ / gal | 0.4888 | ||
Put Option Strike Price 3 [Member] | Put Option [Member] | |||
Derivative [Line Items] | |||
Derivative, Price Risk Option Strike Price | $ / gal | 0.4500 | ||
Put Option Strike Price 4 [Member] | Put Option [Member] | |||
Derivative [Line Items] | |||
Derivative, Price Risk Option Strike Price | $ / gal | 0.4200 |
Derivative Instruments - Natura
Derivative Instruments - Natural Gas Commodity Contracts Fair Value Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | ||
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | [1] | $ 0 | $ (233) |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | [1] | 0 | 681 |
Gain (Loss) on Fair Value Hedges Recognized in Earnings | [1] | 0 | 448 |
Loss on Fair Value Hedge Ineffectiveness | [1] | 0 | (83) |
Gain on Fair Value Hedge Ineffectiveness | [1] | 0 | 531 |
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | [1] | $ 0 | $ 448 |
[1] | There were no natural gas futures commodity contracts designated as fair value hedges in 2015. |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Derivative Contracts Recorded in Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Energy Marketing Contracts Assets, Current | $ 477 | $ 153 |
Energy Marketing Contract Liabilities, Current | 29 | 433 |
Mark To Market Energy Assets [Member] | Forward Contracts [Member] | Derivatives not designated as hedging instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Energy Marketing Contracts Assets, Current | 0 | 1 |
Mark To Market Energy Assets [Member] | Put Option [Member] | Derivatives designated as hedging instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Energy Marketing Contracts Assets, Current | 0 | 152 |
Mark To Market Energy Assets [Member] | Future [Member] | Derivatives designated as hedging instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Energy Marketing Contracts Assets, Current | 240 | 0 |
Mark To Market Energy Assets [Member] | Propane [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Energy Marketing Contracts Assets, Current | 237 | |
Mark To Market Energy Assets [Member] | Propane [Member] | Derivatives designated as hedging instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Energy Marketing Contracts Assets, Current | 237 | 0 |
Mark-to-market energy liabilities [Member] | Forward Contracts [Member] | Derivatives not designated as hedging instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Energy Marketing Contract Liabilities, Current | 0 | 1 |
Mark-to-market energy liabilities [Member] | Future [Member] | Derivatives not designated as hedging instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Energy Marketing Contract Liabilities, Current | 29 | 0 |
Mark-to-market energy liabilities [Member] | Future [Member] | Derivatives designated as hedging instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Energy Marketing Contract Liabilities, Current | 0 | 109 |
Mark-to-market energy liabilities [Member] | Propane Swap Agreement [Member] | Derivatives designated as hedging instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Energy Marketing Contract Liabilities, Current | $ 0 | $ 323 |
Derivative Instruments - Effect
Derivative Instruments - Effects of Gains and Losses from Derivative Instruments on Condensed Consolidated Financial Statements (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ 167,000 | $ 8,000 | $ 1,097,000 | $ 700,000 | |
Revenue [Member] | Derivatives not designated as hedging instruments [Member] | Forward Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | [1] | (231,000) | 187,000 | 44,000 | 393,000 |
Gain (Loss) on derivatives | [1] | (2,000) | (7,000) | 0 | 71,000 |
Cost of Sales [Member] | Derivatives not designated as hedging instruments [Member] | Future [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on derivatives | 204,700 | 0 | 205,000 | 0 | |
Cost of Sales [Member] | Derivatives not designated as hedging instruments [Member] | Propane Swap Agreement [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 18,000 | |
Cost of Sales [Member] | Derivatives designated as hedging instrument [Member] | Future [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on derivatives | 105,000 | 0 | 464,000 | 0 | |
Cost of Sales [Member] | Derivatives designated as hedging instrument [Member] | Propane Swap Agreement [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | (364,000) | 0 | |
Cost of Sales [Member] | Derivatives designated as hedging instrument [Member] | Put Option [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | [2] | 0 | 0 | 73,000 | 506,000 |
Cost of Sales [Member] | Derivatives designated as hedging instrument [Member] | Call Option [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | (81,000) | |
Inventories [Member] | Derivatives designated as hedging instrument [Member] | Put/Call Option [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | [2] | 0 | (46,000) | 0 | (79,000) |
Inventories [Member] | Derivatives designated as hedging instrument [Member] | Natural Gas Futures [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on derivatives | 0 | 0 | (233,000) | 0 | |
Other Comprehensive Income (Loss) [Member] | Derivatives designated as hedging instrument [Member] | Future [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on derivatives | (123,000) | 0 | 349,000 | 0 | |
Other Comprehensive Income (Loss) [Member] | Derivatives designated as hedging instrument [Member] | Propane Swap Agreement [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on derivatives | $ 213,000 | $ (126,000) | $ 559,000 | $ (128,000) | |
[1] | (1) All of the realized and unrealized gain (loss) on forward contracts represents the effect of trading activities on our condensed consolidated statements of income. | ||||
[2] | As a fair value hedge with no ineffective portion, the unrealized gains and losses associated with this call option are recorded in cost of sales, offset by the corresponding change in the value of propane inventory (hedged item), which is also recorded in cost of sales. The amounts in cost of sales offset to zero, and the unrealized gains and losses of this put option effectively changed the value of propane inventory. |
Fair Value of Financial Instr59
Fair Value of Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Investments | $ 4,630 | $ 3,644 |
Equity Securities [Member] | ||
Assets: | ||
Investments | 18 | |
Quoted Prices in Active Markets (Level 1) [Member] | Mark-to-market energy liabilities [Member] | ||
Liabilities: | ||
Mark-to-market energy liabilities | 0 | 0 |
Quoted Prices in Active Markets (Level 1) [Member] | Equity Securities [Member] | ||
Assets: | ||
Investments | 21 | 18 |
Quoted Prices in Active Markets (Level 1) [Member] | Investments in guaranteed income fund [Member] | ||
Assets: | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets (Level 1) [Member] | Investments - other [Member] | ||
Assets: | ||
Investments | 4,124 | 3,347 |
Quoted Prices in Active Markets (Level 1) [Member] | Mark To Market Energy Assets Including Put Option [Member] | ||
Assets: | ||
Mark-to-market energy assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Mark-to-market energy liabilities [Member] | ||
Liabilities: | ||
Mark-to-market energy liabilities | 29 | 433 |
Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | ||
Assets: | ||
Investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Investments in guaranteed income fund [Member] | ||
Assets: | ||
Investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Investments - other [Member] | ||
Assets: | ||
Investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Mark To Market Energy Assets Including Put Option [Member] | ||
Assets: | ||
Mark-to-market energy assets | 477 | 153 |
Significant Unobservable Inputs (Level 3) [Member] | Mark-to-market energy liabilities [Member] | ||
Assets: | ||
Mark-to-market energy assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ||
Assets: | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Investments in guaranteed income fund [Member] | ||
Assets: | ||
Investments | 485 | 279 |
Significant Unobservable Inputs (Level 3) [Member] | Investments - other [Member] | ||
Assets: | ||
Investments | 0 | 0 |
Recurring [Member] | Mark-to-market energy liabilities [Member] | ||
Liabilities: | ||
Mark-to-market energy liabilities | 29 | 433 |
Recurring [Member] | Equity Securities [Member] | ||
Assets: | ||
Investments | 21 | 18 |
Recurring [Member] | Investments in guaranteed income fund [Member] | ||
Assets: | ||
Investments | 485 | 279 |
Recurring [Member] | Investments - other [Member] | ||
Assets: | ||
Investments | 4,124 | 3,347 |
Recurring [Member] | Mark To Market Energy Assets Including Put Option [Member] | ||
Assets: | ||
Mark-to-market energy assets | $ 477 | $ 153 |
Fair Value of Financial Instr60
Fair Value of Financial Instruments - Summary of Changes in Fair Value of Investments (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 279 | $ 287 |
Purchases and adjustments | 120 | (11) |
Transfers | (88) | (3) |
Distribution | (8) | 0 |
Investment Income | 6 | 3 |
Ending Balance | $ 485 | $ 276 |
Fair Value of Financial Instr61
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Long-term debt including current maturities | $ 151.8 | $ 153.7 |
Fair value of long-term debt | $ 173.5 | $ 165.1 |
Long-Term Debt - Outstanding Lo
Long-Term Debt - Outstanding Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Total long-term debt | $ 151,800 | $ 153,700 | |
Capital lease obligation | 3,814 | 4,824 | |
Total Long-term debt | 155,913 | 158,490 | |
Less: current maturities | (12,087) | (9,151) | |
Less: debt issuance costs | (301) | (333) | |
Total long-term debt, net of current maturities | 143,525 | 149,006 | |
9.08% bond, due June 1, 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | [1] | 7,976 | 7,973 |
6.64% note, due October 31, 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 5,455 | 5,455 | |
5.50% note, due October 12, 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 10,000 | 10,000 | |
5.93% note, due October 31, 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 22,500 | 24,000 | |
5.68% note, due June 30, 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 29,000 | 29,000 | |
Uncollateralized Senior Notes Due On May Two Thousand Twenty Eight [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 7,000 | 7,000 | |
Uncollateralized Senior Note Two Due on December Two Thousand Twenty Eight [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 20,000 | 20,000 | |
Uncollateralized Senior Notes Due On Two Thousand Twenty Nine [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 50,000 | 50,000 | |
Promissory note [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 168 | $ 238 | |
[1] | FPU secured first mortgage bonds are guaranteed by Chesapeake Utilities. |
Long-Term Debt - Outstanding 63
Long-Term Debt - Outstanding Long-Term Debt- Supplemental Information (Detail) | 9 Months Ended |
Sep. 30, 2016 | |
9.08% bond, due June 1, 2022 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest percentage | 9.08% |
Debt instrument, maturity date | Jun. 1, 2022 |
6.64% note, due October 31, 2017 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest percentage | 6.64% |
Debt instrument, maturity date | Oct. 31, 2017 |
5.50% note, due October 12, 2020 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest percentage | 5.50% |
Debt instrument, maturity date | Oct. 12, 2020 |
5.93% note, due October 31, 2023 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest percentage | 5.93% |
Debt instrument, maturity date | Oct. 31, 2023 |
5.68% note, due June 30, 2026 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest percentage | 5.68% |
Debt instrument, maturity date | Jun. 30, 2026 |
Uncollateralized Senior Notes Due On May Two Thousand Twenty Eight [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest percentage | 6.43% |
Debt instrument, maturity date | May 2, 2028 |
Uncollateralized Senior Note Two Due on December Two Thousand Twenty Eight [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest percentage | 3.73% |
Debt instrument, maturity date | Dec. 16, 2028 |
Uncollateralized Senior Notes Due On Two Thousand Twenty Nine [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest percentage | 3.88% |
Debt instrument, maturity date | May 15, 2029 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - Notes Payable, Other Payables [Member] - Shelf Notes [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | May 13, 2016 | |
Debt Instrument [Line Items] | ||
Senior notes | $ 150 | $ 70 |
Maturity date term | 20 years | |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% |
Short-Term Borrowing - Addition
Short-Term Borrowing - Additional Information (Details) - USD ($) | Oct. 08, 2015 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Short-term Debt [Line Items] | |||||
Proceeds from Issuance of Common Stock | $ 57,306,000 | $ 0 | |||
Revolving Credit Facility [Member] | |||||
Short-term Debt [Line Items] | |||||
Current borrowing capacity | $ 150,000,000 | ||||
Expiration period | 5 years | ||||
Expiration period from anniversary (up to) | 2 years | ||||
Maximum borrowing capacity | $ 200,000,000 | 200,000,000 | |||
Uncommitted Line Of Credit Facility One [Member] | |||||
Short-term Debt [Line Items] | |||||
Line of credit | $ 50,000,000 | $ 50,000,000 | $ 35,000,000 | ||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | |||||
Short-term Debt [Line Items] | |||||
Interest rate | 125.00% | ||||
Base Rate [Member] | Revolving Credit Facility [Member] | |||||
Short-term Debt [Line Items] | |||||
Interest rate | 25.00% |