Segment Information | Note 13 – Segment Information The Company has eleven operating segments and two reportable segments. The Regulated Water segment is comprised of eight operating segments representing its water and wastewater regulated utility companies, which are organized by the states where the Company provides water and wastewater services. The eight water and wastewater utility operating segments are aggregated into one reportable segment, because each of these operating segments has the following similarities: economic characteristics, nature of services, production processes, customers, water distribution or wastewater collection methods, and the nature of the regulatory environment. The Regulated Natural Gas segment is comprised of one operating segment representing natural gas utility companies, acquired in the Peoples Gas Acquisition, for which the Company provides natural gas distribution services. In addition to the Company’s two reportable segments, we include two of our operating segments within the Other category below. These segments are not quantitatively significant and are comprised of our non-regulated natural gas operations and Aqua Resources. Our non-regulated natural gas operations consist of utility service line protection solutions and repair services to households and the operation of gas marketing and production entities. Aqua Resources offers, through a third party, water and sewer service line protection solutions and repair services to households. In addition to these segments, Other is comprised of business activities not included in the reportable segments, corporate costs that have not been allocated to the Regulated Water and Regulated Natural Gas segments, and intersegment eliminations. Corporate costs include general and administrative expenses, and interest expense. The Company reports these corporate costs within Other as they relate to corporate-focused responsibilities and decisions and are not included in internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments. The following table presents information about the Company’s reportable segments. Asset information by segment is not utilized for purposes of assessing performance or allocating resources, and, as a result, such information is not presented. Three Months Ended - September 30, 2024 Three Months Ended - September 30, 2023 Regulated Water Regulated Natural Gas Other Consolidated Regulated Water Regulated Natural Gas Other Consolidated Operating revenues $ 334,477 $ 96,731 $ 4,047 $ 435,255 $ 310,591 $ 94,798 $ 5,866 $ 411,255 Operations and maintenance expense 96,369 49,002 ( 1,003 ) 144,368 98,695 50,006 ( 1,683 ) 147,018 Purchased gas - 17,603 1,492 19,095 - 14,408 2,182 16,590 Depreciation and amortization 57,877 34,318 406 92,601 54,695 31,141 199 86,035 Interest expense, net (a) 35,094 22,121 18,237 75,452 30,867 19,405 17,376 67,648 Allowance for funds used during construction ( 4,326 ) ( 1,267 ) - ( 5,593 ) ( 4,643 ) ( 812 ) - ( 5,455 ) Provision for income taxes (benefit) 19,289 228 ( 3,677 ) 15,840 16,186 ( 16,905 ) ( 2,992 ) ( 3,711 ) Net income (loss) 112,275 ( 30,660 ) ( 12,213 ) 69,402 99,916 ( 9,776 ) ( 10,064 ) 80,076 Nine Months Ended - September 30, 2024 Nine Months Ended - September 30, 2023 Regulated Water Regulated Natural Gas Other Consolidated Regulated Water Regulated Natural Gas Other Consolidated Operating revenues $ 916,850 549,250 $ 15,630 $ 1,481,730 $ 871,563 $ 675,076 $ 27,766 $ 1,574,405 Operations and maintenance expense 282,627 144,628 ( 3,475 ) 423,780 274,724 148,270 ( 4,474 ) 418,520 Purchased gas - 175,825 6,673 182,498 - 295,929 18,909 314,838 Depreciation and amortization 172,696 99,361 994 273,051 161,393 93,457 640 255,490 Interest expense, net (a) 104,334 68,346 47,825 220,505 91,103 67,894 48,712 207,709 Allowance for funds used during construction ( 11,976 ) ( 3,527 ) - ( 15,503 ) ( 12,529 ) ( 2,038 ) - ( 14,567 ) Provision for income taxes (benefit) 54,604 ( 38,752 ) ( 8,790 ) 7,062 45,559 ( 73,703 ) ( 7,467 ) ( 35,611 ) Net income (loss) 263,859 177,563 ( 30,863 ) 410,559 267,345 127,400 ( 31,967 ) 362,778 Capital expenditures 495,259 436,807 432 932,498 493,851 377,562 3,078 874,491 (a) The regulated water and regulated natural gas segments report interest expense that includes long-term debt that was pushed-down to the regulated operating subsidiaries from Essential Utilities, Inc. |