DOVER, Del., Jan. 30, 2026 /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) announced that subsidiaries Florida City Gas and Florida Public Utilities have been recognized as 2025 Utility Customer Champions by Escalent, a leading data analytics and advisory firm serving the energy and utility industry. The two utilities are among just 36 providers nationwide honored for delivering exceptional service and demonstrating a strong commitment to customer satisfaction. "These honors reflect the streng ...

This diversified energy company provides regulated and unregulated services to customers across the Mid-Atlantic and Southeast regions.Tufton Capital Management disclosed a purchase of 23,304 shares of Chesapeake Utilities (CPK +0.76%) in a January 28 SEC filing, with the estimated transaction value at $3.07 million based on the quarter’s average pricing.What happenedAccording to a January 28 SEC filing, Tufton Capital Management increased its position in Chesapeake Utilities (CPK +0.76%) by 23,304 shares. ...

Core Insights - Chesapeake Utilities Corporation has promoted Michael Cassel to senior vice president of strategic development, effective January 2, 2026, to enhance business development and strategic planning efforts [1][2] Group 1: Leadership and Role - Michael Cassel will lead business development, external affairs, and strategic planning to identify emerging opportunities and support sustainable growth [1] - Cassel has been with Chesapeake Utilities since March 2008, advancing through various roles, including vice president of strategic development and vice president of governmental and regulatory affairs [2] Group 2: Company Overview - Chesapeake Utilities Corporation is a diversified energy delivery company listed on the New York Stock Exchange, providing sustainable energy solutions through natural gas transmission, electricity generation, propane distribution, and other services [3]

分组1 - A number of natural gas utility companies have experienced a decline in their stock prices over the past few weeks [1] - ONE Gas, Inc. (OGS) is highlighted as a company operating in this sector, which has been analyzed recently [1] - The article emphasizes that the best investment opportunities often arise from stocks that are less followed by average investors or those that do not accurately reflect current market opportunities [1]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $0.82 for Q3 2025, and $4.06 year-to-date, representing an 8% increase compared to the same period last year [7] - Year-to-date, the company achieved double-digit growth in adjusted gross margin, operating income, and adjusted net income relative to the same period in 2024 [8] - Adjusted gross margin for Q3 2025 was approximately $137 million, up 12%, while adjusted net income was approximately $20 million, up 8% from Q3 2024 [25][28] Business Line Data and Key Metrics Changes - The regulated segment's adjusted gross margin was approximately $115 million in Q3 2025, up 12% from the same quarter last year, driven by organic natural gas transmission expansions and increased rates [27] - The unregulated energy segment saw adjusted gross margin increase by 13% to approximately $22.5 million, supported by growth in the Marlin Gas Services business [28] Market Data and Key Metrics Changes - Both core service areas experienced above-average residential customer growth: 4.3% in Delmarva, 3.9% for Florida Public Utilities, and 2.1% for Florida City Gas [10] - The company is expanding natural gas distribution in southern Delaware, targeting 2,000 new homes, and has become the natural gas provider for a new community development in Port St. Lucie, Florida [10][11] Company Strategy and Development Direction - The company is focused on three pillars of growth: prudently deploying capital, proactively managing regulatory agendas, and transforming business operations to enhance safety and customer service [12] - The capital investment program is on track, with over 400 gas distribution projects placed in service in the first nine months of the year, generating significant gross margin [12][13] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed full-year 2025 EPS guidance of $6.15-$6.35 per share, contingent on a successful outcome from the Florida City Gas depreciation study [9] - The company is committed to increasing shareholder value and maintaining top quartile growth and total shareholder return [12][33] Other Important Information - The company has increased its 2025 full-year capital expenditure guidance to $425-$450 million, reflecting a $25 million increase over the previous range [10][13] - The company has received several recognitions, including being named a champion of board diversity and employer champion of the year for Kent County [22][23] Q&A Session Summary Question: Clarification on the outcome of the depreciation study - Management indicated that achieving the guidance range assumes a successful outcome from the depreciation study, with the timing of the decision impacting the final results [35][36] Question: Inquiry about the number of distribution projects - Management confirmed that 400 new distribution projects were completed in the last nine months, reflecting significant growth in both residential and transmission projects [46][47] Question: Discussion on Ohio data center growth - Management elaborated on a project with American Electric Power to build a pipeline for a data center, highlighting the favorable regulatory climate and in-state gas supplies [50][51] Question: Clarification on retroactive treatment of depreciation reserve - Management confirmed that an order received by early February could allow for retroactive treatment of the depreciation reserve, impacting 2025 earnings [54][55] Question: Future capital expenditure plans - Management stated that the long-term capital expenditure target of $1.5 billion-$1.8 billion through 2028 is expected to be maintained, with updates provided in February [58][59] Question: Growth trajectory in Delmarva vs. Florida - Management expressed optimism about continued strong growth in Delmarva, noting it is currently outpacing Florida, while also acknowledging robust growth in Florida [60][62]

Financial Performance - Adjusted Gross Margin increased to $137.2 million, up 12% from $122 million in Q3 2024[13, 20] - Adjusted Net Income rose to $19.5 million, an 8% increase compared to $18.1 million in Q3 2024[20, 69] - Adjusted EPS reached $0.82, a 3% increase from $0.80 in Q3 2024[20, 69] - Year-to-date Adjusted Gross Margin was $462.4 million, up 12% from YTD 2024[21] - Year-to-date Adjusted EPS was $4.06, up 8% from YTD 2024[16, 21] Capital Investment and Guidance - Capital investment increased by 27% to $123 million, from $97 million in Q3 2024[13] - The company is increasing its 2025 capital expenditure guidance to $425 - $450 million[14, 25] - The company reaffirmed its 2025 EPS guidance of $6.15 - $6.35, representing growth of 14% - 18%[14, 23, 26] Growth and Expansion - Customer growth increased by 3.2% in average natural gas residential customers[13] - The company has identified approximately $1.4 billion of capital projects supporting its 5-year CapEx guidance of $1.5 - $1.8 billion[49] - $200 million of long-term debt was issued in Q3 2025 to maintain balance sheet strength and flexibility[14, 91]

Core Insights - Chesapeake Utilities reported quarterly earnings of $0.82 per share, missing the Zacks Consensus Estimate of $0.90 per share, but showing an increase from $0.80 per share a year ago, resulting in an earnings surprise of -8.89% [1] - The company achieved revenues of $179.6 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 4.48% and up from $160.14 million year-over-year [2] - Chesapeake Utilities has surpassed consensus revenue estimates four times over the last four quarters, although it has only exceeded EPS estimates once in the same period [2] Future Outlook - The immediate price movement of Chesapeake Utilities' stock will largely depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.09 on revenues of $245.3 million, and for the current fiscal year, it is $6.14 on revenues of $915.6 million [7] - The Zacks Rank for Chesapeake Utilities is currently 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Context - The Utility - Gas Distribution industry, to which Chesapeake Utilities belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - For the three months ended September 30, 2025, the total operating revenues were $179.6 million, with regulated energy contributing $146.4 million and unregulated energy contributing $40.7 million[153]. - For the nine months ended September 30, 2025, total operating revenues were $671.1 million, an increase from $572.2 million in the same period of 2024, representing a growth of 17.3%[156]. - Revenue for the quarter ended September 30, 2025, was $146.4 million, an increase of $15.8 million, or 12.1%, from $130.6 million in the same quarter of 2024[210]. - For the nine months ended September 30, 2025, revenue was $195.3 million, up $35.2 million from $160.1 million in the same period of 2024[234]. Adjusted Metrics - The Adjusted Gross Margin for the same period was $137.2 million, compared to a Gross Margin (GAAP) of $91.8 million[153]. - Adjusted net income for the nine months ended September 30, 2025, was $94.9 million, compared to $84.2 million for the same period in 2024, reflecting an increase of 12.7%[163]. - Adjusted gross margin for the quarter ended September 30, 2025, increased by $12.5 million, or 12.2%, compared to the same period in 2024, reaching $114.7 million[210]. - Adjusted gross margin for the nine months ended September 30, 2025, was $101.9 million, reflecting a $12.7 million increase compared to $89.2 million in the prior year[234]. Operating Income - Operating income for the third quarter of 2025 was $45.0 million, an increase of $4.1 million or 10% compared to the same period in 2024[164]. - Operating income for the nine months ended September 30, 2025, was $182.1 million, an increase of $20.8 million compared to the same period in 2024[169]. - Operating income for the nine months ended September 30, 2025, was $20.9 million, an increase of $2.2 million from $18.7 million in the same period of 2024[234]. Margins and Contributions - The total adjusted gross margin for the three months ended September 30, 2025, was $137.2 million, an increase of $15.2 million or 12.5% compared to the same period in 2024[166]. - The increase in adjusted gross margin in the third quarter of 2025 was driven by regulatory initiatives, infrastructure programs, and increased demand for CNG, RNG, and LNG services[164]. - Natural gas transmission service expansions contributed $11.7 million to adjusted gross margins for the nine months ended September 30, 2025[173]. - Contributions from regulated infrastructure programs added $3.9 million to adjusted gross margin in the third quarter of 2025[213]. Customer Growth and Consumption - The average number of residential customers served on the Delmarva Peninsula increased by approximately 4.3% for the three months ended September 30, 2025[208]. - Total customer growth for the three months ended September 30, 2025, was $1.4 million, with residential customer growth contributing $1.2 million and commercial and industrial customers contributing $0.2 million[209]. - Increased customer consumption due to colder weather conditions resulted in a $4.8 million increase in adjusted gross margin for the nine months ended September 30, 2025[205]. Capital Expenditures and Financing - Capital expenditures for the nine months ended September 30, 2025, totaled $335.6 million, with a forecasted range for total capital expenditures in 2025 between $425.0 million and $450.0 million[249][250]. - The company entered into a Note Purchase Agreement for the issuance of Senior Notes totaling $200.0 million, with an initial funding of $150.0 million in August 2025 and an additional $50.0 million in September 2025, at an average interest rate of 5.04%[261]. - The company issued 5.20% Senior Notes due in November 2029 in the aggregate principal amount of $100.0 million, with proceeds used to reduce short-term borrowings and fund capital expenditures[262]. Regulatory and Rate Changes - The Maryland natural gas distribution businesses filed for a rate increase of approximately $6.9 million, with a cumulative increase of $3.5 million approved[200][203]. - The Delaware natural gas division filed for a rate increase of approximately $12.1 million, with an annual revenue increase of $6.1 million approved in June 2025[202][203]. - The Florida Electric division's rate case resulted in a total revenue increase of approximately $8.6 million annually, with $2.4 million incremental adjusted gross margin generated for the three months ended September 30, 2025[204]. Sustainability and Growth Strategy - The company’s growth strategy includes investments in renewable natural gas-related projects and expansion of Marlin Gas Services' CNG transport business[145]. - The focus on sustainability is supported by the Board of Directors and includes environmental stewardship initiatives[147]. - The company is committed to enhancing sustainability disclosures, with the first sustainability micro-report launched in 2024[150]. Interest and Debt Management - Interest charges for the nine months ended September 30, 2025, were $54.1 million, an increase of $3.2 million from $50.9 million in 2024[171]. - The company is required to maintain a funded indebtedness ratio of no greater than 65% under its financial covenants, and as of September 30, 2025, it was in compliance with this covenant[259]. Inflation and Risk Management - Inflation impacts the costs of supply, labor, and services, prompting the company to seek rate increases from regulatory commissions to mitigate these effects[284]. - The Risk Management Committee evaluates credit risks related to counterparties in commodity derivative contracts before approval[283].

Financial Performance - Net income for Q3 2025 was $19.4 million ($0.82 per share), up from $17.5 million ($0.78 per share) in Q3 2024, reflecting a 10.9% increase in net income year-over-year[3]. - Adjusted net income for the first nine months of 2025 was $94.9 million ($4.06 per share), compared to $84.2 million ($3.76 per share) in the prior-year period, resulting in an 8.0% growth in adjusted EPS[5]. - The company reported a 10.1% growth in net income and a 10.9% growth in adjusted EPS for the first nine months of 2025 compared to the prior-year period[5]. - Adjusted net income for Q3 2025 was $19.5 million, up from $18.1 million in Q3 2024, representing a 7.7% increase[36]. - Adjusted earnings per share (EPS) for Q3 2025 increased to $0.82 from $0.80 in Q3 2024, reflecting a 2.5% growth[36]. - For the nine months ended September 30, 2025, adjusted net income was $94.9 million, compared to $84.2 million for the same period in 2024, marking a 12.8% increase[37]. - Net income for the nine months ended September 30, 2025, was $94.2 million, up 15.0% from $81.9 million in the same period of 2024[64]. Revenue and Margin Growth - Adjusted gross margin increased by $15.2 million for Q3 2025 and $49.3 million for the nine-month period, driven by organic growth in natural gas distribution and infrastructure programs[6]. - The company generated over $20 million of gross margin from transmission, infrastructure, and transportation projects during Q3 2025[9]. - Adjusted gross margin for Q3 2025 was $137.2 million, an increase of $15.2 million or 12.5% compared to Q3 2024[19]. - For the nine months ended September 30, 2025, adjusted gross margin reached $462.4 million, up $49.3 million or 11.9% from $413.1 million in 2024[25]. - The total adjusted gross margin for nine months ended September 30, 2025, was $130.1 million, up from $115.2 million in 2024, indicating a 12.9% growth[37]. - Increased contributions from regulated infrastructure programs added $11.0 million to adjusted gross margins for the nine months ended September 30, 2025[37]. Operating Income and Expenses - Operating income for Q3 2025 was $45.0 million, reflecting a $4.1 million increase or 10.0% from the same period in 2024[19]. - Operating income for the nine months ended September 30, 2025, was $182.1 million, an increase of $20.8 million or 12.9% compared to the same period in 2024[25]. - The company experienced higher operating expenses due to increased depreciation and the absence of RSAM adjustments, which had previously provided benefits of $8.9 million in 2024[26]. - Total operating expenses for Q3 2025 were $134.6 million, up from $119.3 million in Q3 2024, marking a 12.5% increase[64]. - Operating expenses increased by $30.1 million for the nine months ended September 30, 2025, primarily due to depreciation and maintenance costs[37]. Capital Expenditures and Guidance - Capital guidance for 2025 has been increased to a range of $425 million to $450 million, reflecting ongoing investments in infrastructure and projects[10]. - The company continues to affirm its 2028 EPS guidance range of $7.75 to $8.00 per share, along with a capital expenditure guidance of $1.5 billion to $1.8 billion for the five-year period ending 2028[11]. - The Company's capital expenditures for the nine months ended September 30, 2025, were $335.6 million, with a forecasted range for 2025 capital expenditures between $425 million and $450 million[60]. Customer Growth and Consumption - The average number of residential customers served on the Delmarva Peninsula increased by approximately 4.3% for the nine months ended September 30, 2025[58]. - Average Residential Customers for Delmarva NG grew to 106,028 in Q3 2025 from 101,635 in Q3 2024, an increase of 4.0%[71]. - Average Commercial and Industrial Customers for Florida Natural increased to 8,445 in Q3 2025 from 8,322 in Q3 2024, showing a growth of 1.5%[71]. - Increased customer consumption due to colder weather conditions resulted in a $4.8 million increase in adjusted gross margin for the nine months ended September 30, 2025[54]. Regulatory and Project Updates - The company has ongoing regulatory initiatives expected to contribute $56.0 million to adjusted gross margins in 2026[40]. - The Maryland natural gas distribution businesses achieved a cumulative increase of $3.5 million in annual base rates following a settlement approved in April 2025[48]. - The Delaware natural gas division filed for a permanent rate relief of approximately $12.1 million, with annualized interim rates of $2.5 million approved in October 2024[51]. - The Florida Electric division's general base rate increase of $12.6 million was settled for a total revenue increase of approximately $8.6 million annually, effective July 2025[52]. - Major projects, including pipeline expansions, are expected to generate an estimated $46.1 million in adjusted gross margin in 2026[40]. - The Worcester Resiliency Upgrade project is projected to generate $10.2 million in adjusted gross margin in 2026 and $17.6 million in 2027[42]. - The East Coast Reinforcement Projects in Boynton Beach and New Smyrna Beach will provide an additional 15,000 Dts/day and 3,400 Dts/day of supply, respectively[43]. - Peninsula Pipeline's projects in Central Florida will add 5,000 Dts/day and 8,700 Dts/day to FPU's distribution system, with completion expected in 2024 and 2025 respectively[44]. - The renewable natural gas projects in Florida are projected to enhance FCG's gas supply and system reliability, with completion expected in the first half of 2026[45]. Equity and Debt Position - The company's equity to total capitalization ratio was approximately 49% as of September 30, 2025, as it aims to return to a target ratio of 50-60%[61]. - Stockholders' equity rose to $1,518.7 million as of September 30, 2025, up from $1,390.2 million at the end of 2024, indicating a 9.2% increase[67]. - Long-term debt (net of current maturities) increased to $1,437.9 million as of September 30, 2025, compared to $1,261.7 million at the end of 2024, reflecting a 14.0% increase[67].

Core Insights - Chesapeake Utilities Corporation reported a net income of $19.4 million ($0.82 per share) for Q3 2025, an increase from $17.5 million ($0.78 per share) in Q3 2024, with adjusted net income at $19.5 million ($0.82 per share) compared to $18.1 million ($0.80 per share) in the prior year [2][4][17] - For the first nine months of 2025, net income reached $94.2 million ($4.03 per share), up from $81.9 million ($3.66 per share) in the same period of 2024, with adjusted net income at $94.9 million ($4.06 per share) compared to $84.2 million ($3.76 per share) [4][26] - The company reaffirmed its 2025 EPS guidance range of $6.15 to $6.35 per share and increased its capital guidance range to $425 million to $450 million [8][9] Financial Performance - Adjusted gross margin for Q3 2025 increased by $15.2 million (12.5%) to $137.2 million compared to Q3 2024, driven by natural gas transmission service expansions, regulatory initiatives, and increased CNG, RNG, and LNG services [17][20] - Operating income for Q3 2025 was $45.0 million, a 10.0% increase from $40.9 million in Q3 2024, with adjusted operating income also reflecting growth [18][26] - Year-to-date adjusted gross margin for 2025 was $462.4 million, an increase of $49.3 million (11.9%) from $413.1 million in 2024 [25][31] Growth Initiatives - The company invested $123 million in capital during Q3 2025, generating over $20 million in gross margin from transmission, infrastructure, and transportation projects [7][6] - Chesapeake Utilities completed its Delaware rate case, resulting in tariff-related changes and rate design adjustments [7] - The company is focusing on a multi-year Enterprise Resource Plan (ERP) process to drive business transformation and growth [7] Segment Performance - The regulated energy segment's adjusted gross margin for Q3 2025 was $114.7 million, up from $102.2 million in Q3 2024, reflecting a 12.2% increase [19] - The unregulated energy segment's adjusted gross margin for Q3 2025 was $22.4 million, a 13.1% increase from $19.8 million in Q3 2024, driven by increased CNG, RNG, and LNG services [22][31] - For the nine months ended September 30, 2025, the regulated energy segment's adjusted gross margin was $360.5 million, up from $324.0 million in 2024, while the unregulated segment's adjusted gross margin increased to $101.9 million from $89.2 million [27][31]