Core Insights - Chesapeake Utilities Corporation celebrated the five-year anniversary of its Safety Town training facility, emphasizing its commitment to safety, education, and community collaboration [1][2][3] Training and Community Engagement - Since its launch in 2020, Safety Town has trained over 1,200 emergency response personnel and hosted more than 200 employee training events, reaching over 50 fire departments and municipalities [2][3] - The facility offers hands-on training experiences, including certifications in various safety protocols such as excavation, leak investigation, and CPR/AED/First Aid [3][5] Charitable Contributions - The company made a charitable contribution of $10,000 to the Delaware Volunteer Firefighter Association to support its scholarship fund, highlighting its community involvement [4] Safety Culture and Commitment - Safety Town is described as a commitment to the safety and resilience of communities, equipping first responders and employees with essential skills for critical situations [5] - Chesapeake Utilities Corporation operates another Safety Town facility in DeBary, Florida, furthering its safety culture and industry leadership [5]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $1.04 for Q2 2025, up 21% from 2024, marking the fourth consecutive quarterly increase in earnings relative to the prior year period [7] - Adjusted gross margin was approximately $143 million, up 13% from 2024, driven by investments in infrastructure and operational efficiencies [24] - Adjusted net income was approximately $24 million, up 26% from 2024, reflecting strong performance despite a higher share count [24] Business Line Data and Key Metrics Changes - The regulated segment's adjusted gross margin was approximately $118 million, up 14% from the previous year, driven by organic growth and increased rates from recent rate cases [26] - The unregulated energy segment's adjusted gross margin was up 7% to approximately $25 million, with growth from Marlin Gas Services and Full Circle Dairy, offset by a reduction in propane margins [27] Market Data and Key Metrics Changes - Year-to-date residential customer growth was 4.2% in Delmarva and 3% in Florida compared to the first half of last year, indicating strong demand for natural gas [8] - The company is seeing increased interest from multifamily developments opting for natural gas instead of all-electric builds, which supports overall growth strategy [9] Company Strategy and Development Direction - The company is focused on three pillars of growth: identifying and deploying capital, managing regulatory agendas, and transforming business operations to maintain top quartile growth and shareholder returns [10] - A five-year capital investment plan of $1.5 billion to $1.8 billion has been initiated, with approximately 70% requiring no additional regulatory approval [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full year 2025 EPS guidance of $6.15 to $6.35, contingent on a successful outcome of the Florida City Gas depreciation study [7][32] - The company is committed to long-term EPS growth of 8% through 2028, supported by ongoing capital investments and operational excellence [31] Other Important Information - The company has increased its 2025 full-year capital expenditure guidance to $375 million to $425 million, reflecting growing demand for natural gas [8] - The company has successfully completed three rate cases, resulting in annual revenue increases of $3.5 million in Maryland, $6.1 million in Delaware, and $8.6 million in Florida [18] Q&A Session Summary Question: Was the successful outcome in the FCG depreciation study assumed in the 2025 guidance? - Yes, the successful outcome was considered within the full guidance range for 2025 [35] Question: How does the company plan to fund the additional CapEx for this year? - The company plans to maintain its target capital structure and utilize available capacity from its revolving credit facility and long-term debt placements [37][39] Question: When will the company refresh its key guidance structure? - The company expects to evaluate and potentially refresh its capital guidance for 2026 in February, as it is still early in the current guidance period [40]

Financial Performance - Adjusted EPS for Q2 2025 was $1.04, a 21% increase compared to $0.86 in Q2 2024[16, 24] - Adjusted Gross Margin for Q2 2025 reached $142.8 million, up 13% from Q2 2024[24] - Adjusted Net Income for Q2 2025 was $24.3 million, a 26% increase from Q2 2024[24] - Year-to-date Adjusted EPS reached $3.25, a 10% increase from YTD 2024[21, 25] - Year-to-date Adjusted Gross Margin was $325.2 million, up 12% from YTD 2024[25] - Year-to-date Adjusted Net Income was $75.4 million, a 14% increase from YTD 2024[25] Capital Expenditure and Projects - The company increased its 2025 capital expenditure guidance by $50 million, with a new range of $375 million to $425 million[17, 30] - A new Ohio pipeline project, with a capital investment of $10 million, will serve a fuel cell powering a data center and is expected to be operational in the first half of 2027[17, 44] - The Worcester Resiliency Upgrade (WRU) project, a $100 million FERC-approved LNG storage facility, is expected to add $3.9 million of additional full-year margin[46, 49, 50] Regulatory and Strategic Initiatives - Final orders were received for all three active rate cases in Delaware, Maryland, and Florida[17] - The company reaffirmed its 2025 Adjusted EPS guidance range of $6.15 to $6.35[30]

Company Performance - Chesapeake Utilities reported quarterly earnings of $1.04 per share, exceeding the Zacks Consensus Estimate of $1 per share, and up from $0.86 per share a year ago, representing an earnings surprise of +4.00% [1] - The company posted revenues of $192.8 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.99%, compared to $166.27 million in the same quarter last year [2] - Over the last four quarters, Chesapeake Utilities has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Market Performance - Chesapeake Utilities shares have declined approximately 0.7% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The company's current Zacks Rank is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $162.9 million, and for the current fiscal year, it is $6.27 on revenues of $885.2 million [7] - The outlook for the Utility - Gas Distribution industry is positive, currently ranking in the top 20% of over 250 Zacks industries, suggesting that the industry is likely to outperform the bottom 50% by a factor of more than 2 to 1 [8]

[PART I—FINANCIAL INFORMATION](index=7&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Financial Statements](index=7&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Unaudited condensed consolidated financial statements show significant revenue and net income growth for Q2 and H1 2025, with total assets growing to **$3.74 billion** Condensed Consolidated Statements of Income Highlights (Unaudited) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $192.8 | $166.3 | $491.5 | $412.0 | | **Operating Income** | $50.3 | $40.8 | $137.1 | $120.4 | | **Net Income** | $23.9 | $18.2 | $74.8 | $64.4 | Condensed Consolidated Balance Sheet Highlights (Unaudited) | Metric (in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $3,737.8 | $3,577.0 | | **Total Liabilities** | $2,238.7 | $2,186.8 | | **Total Stockholders' Equity** | $1,499.1 | $1,390.2 | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $139.2 | $167.4 | | **Net cash used in investing activities** | $(212.7) | $(155.8) | | **Net cash provided by (used in) financing activities** | $67.1 | $(10.1) | Earnings Per Share (Diluted) | Period | Diluted EPS | | :--- | :--- | | **Three Months Ended June 30, 2025** | $1.02 | | **Three Months Ended June 30, 2024** | $0.82 | | **Six Months Ended June 30, 2025** | $3.22 | | **Six Months Ended June 30, 2024** | $2.89 | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition, rate cases, segment performance, debt financing, and derivative instruments for hedging - The company adopted ASU 2023-07 for segment reporting and ASU 2023-09 for income tax disclosures, which only impacted disclosures and not the financial position or results of operations[33](index=33&type=chunk)[34](index=34&type=chunk) - In August 2025, the company entered into a Note Purchase Agreement for **$200.0 million** in Senior Notes to reduce short-term borrowings and fund capital expenditures[126](index=126&type=chunk) - The company amended its revolving credit agreement in August 2024, increasing total borrowing capacity to **$450.0 million**. As of June 30, 2025, **$245.3 million** was outstanding[130](index=130&type=chunk)[131](index=131&type=chunk) - The company uses propane and interest rate swap agreements, designated as cash flow hedges, to mitigate risks from commodity price fluctuations and changes in short-term borrowing rates[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=37&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes strong Q2 2025 performance to regulatory initiatives and infrastructure, increasing capital expenditure forecasts Q2 2025 vs Q2 2024 Performance (GAAP) | Metric (in millions) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Income** | $23.9 | $18.2 | +$5.7 | | **Diluted EPS** | $1.02 | $0.82 | +$0.20 | Six Months 2025 vs 2024 Performance (GAAP) | Metric (in millions) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Income** | $74.8 | $64.4 | +$10.4 | | **Diluted EPS** | $3.22 | $2.89 | +$0.33 | - The company's growth strategy focuses on prudently deploying capital in existing businesses and new projects, proactively managing its regulatory agenda, and executing business transformation initiatives[143](index=143&type=chunk)[148](index=148&type=chunk) - The company increased its 2025 capital expenditure forecast to a range of **$375.0 million** to **$425.0 million**, up from previous estimates, to support growth projects[248](index=248&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Q2 2025 operating income rose to **$50.3 million**, driven by a **$16.2 million** increase in Adjusted Gross Margin, primarily from Regulated Energy Adjusted Gross Margin by Segment - Q2 2025 vs Q2 2024 | Segment (in millions) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Regulated Energy** | $117.7 | $103.3 | +$14.4 | | **Unregulated Energy** | $25.0 | $23.4 | +$1.6 | | **Total Adjusted Gross Margin** | $142.8 | $126.6 | +$16.2 | Operating Income by Segment - Q2 2025 vs Q2 2024 | Segment (in millions) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Regulated Energy** | $51.8 | $40.5 | +$11.3 | | **Unregulated Energy** | $(1.5) | $0.4 | $(1.9) | | **Total Operating Income** | $50.3 | $40.8 | +$9.5 | - Key drivers for the Q2 2025 pre-tax income increase included rate changes (**+$4.1M**), natural gas transmission expansions (**+$3.9M**), contributions from infrastructure programs (**+$3.7M**), and increased CNG/RNG/LNG services (**+$3.5M**)[165](index=165&type=chunk) [Summary of Key Factors Influencing Adjusted Gross Margin](index=48&type=section&id=Summary%20of%20Key%20Factors%20Influencing%20Adjusted%20Gross%20Margin) Adjusted gross margin is significantly influenced by major projects and regulatory initiatives, forecasted to contribute **$84.9 million** in 2025 Forecasted Adjusted Gross Margin from Major Projects & Initiatives (in millions) | Category | Estimate for Fiscal 2025 | Estimate for Fiscal 2026 | | :--- | :--- | :--- | | **Pipeline Expansions** | $22.8 | $45.3 | | **CNG/RNG/LNG Transportation & Infrastructure** | $22.0 | $22.7 | | **Regulatory Initiatives** | $40.1 | $56.0 | | **Total** | **$84.9** | **$124.0** | - The Worcester Resiliency Upgrade project, approved by FERC in January 2025, is expected to generate significant adjusted gross margin of **$10.2 million** in 2026 and **$17.6 million** in 2027 and thereafter[177](index=177&type=chunk)[178](index=178&type=chunk) - Colder weather in H1 2025 compared to H1 2024 contributed an additional **$5.7 million** in adjusted gross margin from increased customer consumption[201](index=201&type=chunk) [Financial Position, Liquidity and Capital Resources](index=62&type=section&id=FINANCIAL%20POSITION,%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains a strong financial position, funding capital expenditures through cash flow, borrowings, and equity, with **$197.1 million** available credit 2025 Forecasted Capital Expenditures (in millions) | Category | Low Estimate | High Estimate | | :--- | :--- | :--- | | **Regulated Energy** | $335.0 | $375.0 | | **Unregulated Energy** | $33.0 | $42.0 | | **Corporate and other** | $7.0 | $8.0 | | **Total** | **$375.0** | **$425.0** | Capitalization (including short-term debt) | Component (in millions) | June 30, 2025 | % of Total | | :--- | :--- | :--- | | **Short-term debt** | $245.3 | 8% | | **Long-term debt** | $1,275.1 | 42% | | **Stockholders' equity** | $1,499.1 | 50% | | **Total capitalization** | **$3,019.5** | **100%** | - Net cash provided by financing activities was **$67.1 million** for H1 2025, driven by **$61.2 million** in stock issuance proceeds and **$46.6 million** in net revolver borrowings, partially offset by **$29.0 million** in dividend payments[263](index=263&type=chunk)[271](index=271&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages interest rate risk with fixed-rate debt and swaps, commodity price risk through recovery mechanisms and hedging - Regulated energy operations have limited commodity price risk due to PSC-authorized fuel cost recovery mechanisms[273](index=273&type=chunk) - Unregulated propane operations use storage (up to **8.6 million gallons**), forward contracts, and derivative hedges to mitigate wholesale price fluctuation risk[274](index=274&type=chunk)[275](index=275&type=chunk) - The company utilizes interest rate swap agreements to mitigate risk associated with changes in short-term borrowing rates on its revolving credit facility[272](index=272&type=chunk) [Controls and Procedures](index=68&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[282](index=282&type=chunk) - No material changes to internal controls over financial reporting occurred during the quarter ended June 30, 2025[283](index=283&type=chunk) [PART II—OTHER INFORMATION](index=68&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=68&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Management believes ongoing legal and regulatory proceedings will not materially affect the company's financial position or results - Management does not expect ongoing legal and regulatory proceedings to have a material effect on the company's financial condition or results[284](index=284&type=chunk) [Risk Factors](index=68&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - The report states there are no material changes from the risk factors disclosed in the 2024 Annual Report on Form 10-K[285](index=285&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q2 2025, the company repurchased a small number of shares for dividend reinvestment in a Rabbi Trust, without a public program Share Repurchases - Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **April 2025** | 629 | $128.40 | | **May 2025** | 0 | N/A | | **June 2025** | 0 | N/A | | **Total** | **629** | **$128.40** | - Share purchases were made for the purpose of reinvesting dividends on shares held in the Rabbi Trust for the Non-Qualified Deferred Compensation Plan[286](index=286&type=chunk) [Defaults Upon Senior Securities](index=69&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) There were no defaults upon senior securities during the reporting period - None[287](index=287&type=chunk) [Other Information](index=69&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the second quarter of 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[288](index=288&type=chunk) [Exhibits](index=70&type=section&id=ITEM%206.%20EXHIBITS) This section lists filed exhibits, including a Note Purchase Agreement and CEO/CFO certifications - Key exhibits filed include a Note Purchase Agreement dated August 1, 2025, and certifications by the CEO and CFO pursuant to the Securities Exchange Act of 1934[289](index=289&type=chunk)

[Financial Highlights and Guidance](index=1&type=section&id=CHESAPEAKE%20UTILITIES%20CORPORATION%20REPORTS%20SECOND%20QUARTER%202025%20RESULTS) [Second Quarter and First Half 2025 Performance Summary](index=1&type=section&id=Second%20Quarter%20and%20First%20Half%202025%20Performance%20Summary) Chesapeake Utilities reported strong Q2 and H1 2025 financial results, with significant adjusted EPS growth driven by regulatory initiatives and expansion projects Q2 2025 Financial Performance vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Income (in millions) | $23.9 | $18.2 | +31.3% | | EPS (Diluted) | $1.02 | $0.82 | +24.4% | | Adjusted Net Income (in millions) | $24.3 | $19.3 | +25.9% | | Adjusted EPS (Diluted) | $1.04 | $0.86 | +20.9% | H1 2025 Financial Performance vs. H1 2024 | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Income (in millions) | $74.8 | $64.4 | +16.2% | | EPS (Diluted) | $3.22 | $2.89 | +11.4% | | Adjusted Net Income (in millions) | $75.4 | $66.1 | +14.1% | | Adjusted EPS (Diluted) | $3.25 | $2.96 | +9.8% | - Adjusted gross margin grew by **$16.2 million** in Q2 and **$34.1 million** in H1 2025, driven by organic growth in natural gas, transmission expansion projects, regulatory initiatives, and increased demand for CNG, RNG, and LNG services[6](index=6&type=chunk) [Earnings and Capital Investment Guidance](index=2&type=section&id=Earnings%20and%20Capital%20Investment%20Guidance) The company reaffirmed its 2025 and 2028 adjusted EPS guidance while increasing 2025 capital expenditure guidance by $50 million due to project advancements - Re-affirming 2025 Adjusted EPS guidance of **$6.15 - $6.35**, contingent on a successful outcome of the FCG Depreciation Study[6](index=6&type=chunk)[10](index=10&type=chunk) - The Company is increasing its 2025 capital guidance range to **$375 million - $425 million**, an increase of **$50 million**, due to advancements on various capital projects[6](index=6&type=chunk)[9](index=9&type=chunk)[11](index=11&type=chunk) - The Company continues to affirm its 2028 EPS guidance of **$7.75 to $8.00** and its 2024-2028 capital expenditure guidance of **$1.5 billion to $1.8 billion**[6](index=6&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) [Operating Results Analysis](index=5&type=section&id=Operating%20Results) [Consolidated Operating Results](index=5&type=section&id=Consolidated%20Results) Consolidated operating income grew significantly in Q2 and H1 2025, driven by increased adjusted gross margin from regulatory initiatives, pipeline expansions, and sustainable energy services Consolidated Operating Results - Q2 2025 vs Q2 2024 (in millions) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Adjusted gross margin | $142.8 | $126.6 | $16.2 | 12.8% | | Operating income | $50.3 | $40.8 | $9.5 | 23.3% | Consolidated Operating Results - H1 2025 vs H1 2024 (in millions) | Metric | H1 2025 (in millions) | H1 2024 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Adjusted gross margin | $325.2 | $291.1 | $34.1 | 11.7% | | Operating income | $137.1 | $120.4 | $16.7 | 13.9% | [Regulated Energy Segment](index=6&type=section&id=Regulated%20Energy%20Segment) The Regulated Energy segment achieved strong operating income growth in Q2 and H1 2025, driven by rate changes, transmission expansions, and infrastructure programs Regulated Energy Segment Operating Results - Q2 2025 vs Q2 2024 (in millions) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Adjusted gross margin | $117.7 | $103.3 | $14.4 | 13.9% | | Operating income | $51.8 | $40.5 | $11.3 | 27.9% | Regulated Energy Segment Operating Results - H1 2025 vs H1 2024 (in millions) | Metric | H1 2025 (in millions) | H1 2024 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Adjusted gross margin | $245.8 | $221.8 | $24.0 | 10.8% | | Operating income | $112.3 | $98.6 | $13.7 | 13.9% | [Unregulated Energy Segment](index=6&type=section&id=Unregulated%20Energy%20Segment) The Unregulated Energy segment saw varied performance, with Q2 operating loss despite margin growth, while H1 showed strong operating income driven by CNG/RNG/LNG services Unregulated Energy Segment Operating Results - Q2 2025 vs Q2 2024 (in millions) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Adjusted gross margin | $25.0 | $23.4 | $1.6 | 6.8% | | Operating income (loss) | $(1.5) | $0.4 | $(1.9) | NMF | - The Q2 increase in adjusted gross margin was driven by a **$3.5 million** increase in CNG/RNG/LNG services, partially offset by a **$2.3 million** decrease from propane operations (consumption and margins)[25](index=25&type=chunk) Unregulated Energy Segment Operating Results - H1 2025 vs H1 2024 (in millions) | Metric | H1 2025 (in millions) | H1 2024 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Adjusted gross margin | $79.5 | $69.4 | $10.1 | 14.6% | | Operating income | $24.8 | $21.8 | $3.0 | 13.8% | - The H1 increase in adjusted gross margin was primarily driven by a **$7.1 million** increase in CNG/RNG/LNG services and a **$2.3 million** net increase from propane operations[31](index=31&type=chunk) [Major Projects and Initiatives](index=13&type=section&id=Recently%20Completed%20and%20Ongoing%20Major%20Projects%20and%20Initiatives) [Overview of Major Projects](index=13&type=section&id=Overview%20of%20Major%20Projects) The company is advancing pipeline expansions and regulatory initiatives projected to generate significant incremental adjusted gross margin in FY2025 and FY2026 Estimated Adjusted Gross Margin from Major Projects (in millions) | Category | FY 2025 Estimate (in millions) | FY 2026 Estimate (in millions) | | :--- | :--- | :--- | | Pipeline Expansions | $22.8 | $45.3 | | CNG/RNG/LNG Infrastructure | $22.0 | $22.7 | | Regulatory Initiatives | $40.1 | $56.0 | | **Total** | **$84.9** | **$124.0** | [Key Project Updates](index=14&type=section&id=Detailed%20Discussion%20of%20Major%20Projects%20and%20Initiatives) Key projects like Worcester Resiliency Upgrade, Florida reinforcement, and new RNG/pipeline agreements advanced, contributing to future adjusted gross margin - **Worcester Resiliency Upgrade:** FERC approved revised transportation rates in July 2025 to address increased capital costs. The project is expected to generate **$10.2 million** in adjusted gross margin in 2026[44](index=44&type=chunk) - **Florida Projects:** The New Smyrna Beach project was placed in service in May 2025, and the Lake Mattie project went into service in July 2025[45](index=45&type=chunk)[46](index=46&type=chunk) - **Duncan Plains Pipeline Project:** In July 2025, Aspire Energy Express entered an agreement to build and operate a pipeline in central Ohio to serve a new data center's fuel-cell facility, expected to be in service in H1 2027[50](index=50&type=chunk) - **Rate Cases:** Settlements were approved for the Delaware Natural Gas Rate Case (June 2025, **$6.1 million** annual increase) and the FPU Electric Rate Case (July 2025, **$8.6 million** annual increase)[53](index=53&type=chunk)[55](index=55&type=chunk) [Other Key Performance Drivers](index=16&type=section&id=Other%20Major%20Factors%20Influencing%20Adjusted%20Gross%20Margin) [Weather and Consumption Impact](index=16&type=section&id=Weather%20and%20Consumption) Colder weather in H1 2025, particularly in Ohio and Delmarva, increased customer consumption, contributing $5.7 million to adjusted gross margin - For the six months ended June 30, 2025, increased customer consumption, including the effects of colder weather, resulted in a **$5.7 million** increase in adjusted gross margin[56](index=56&type=chunk) Heating Degree Day (HDD) Variance - H1 2025 vs H1 2024 | Service Area | H1 2025 Actual HDD | H1 2024 Actual HDD | Variance | | :--- | :--- | :--- | :--- | | Delmarva Peninsula | 2,501 | 2,281 | +220 | | Ohio | 3,774 | 3,137 | +637 | [Natural Gas Distribution Growth](index=17&type=section&id=Natural%20Gas%20Distribution%20Growth) Natural gas distribution saw steady organic growth in H1 2025, with residential customer increases in Delmarva and Florida contributing $4.0 million to adjusted gross margin - For the six months ended June 30, 2025, the average number of residential customers increased by **4.2%** in the Delmarva Peninsula and **3.0%** in Florida[59](index=59&type=chunk) Adjusted Gross Margin from Customer Growth - H1 2025 (in millions) | Area | Residential (in millions) | Commercial & Industrial (in millions) | Total (in millions) | | :--- | :--- | :--- | :--- | | Delmarva Peninsula | $0.9 | $0.2 | $1.1 | | Florida | $1.8 | $1.1 | $2.9 | | **Total** | **$2.7** | **$1.3** | **$4.0** | [Capital Investment and Structure](index=17&type=section&id=Capital%20Investment%20Growth%20and%20Capital%20Structure%20Updates) The company invested $212.8 million in H1 2025 capital expenditures, raising the full-year forecast, while maintaining a healthy capital structure with 50% equity to total capitalization - Capital expenditures were **$212.8 million** for the six months ended June 30, 2025[61](index=61&type=chunk) Forecasted 2025 Capital Expenditures by Segment (in millions) | Segment | Low (in millions) | High (in millions) | | :--- | :--- | :--- | | Regulated Energy | $335.0 | $375.0 | | Unregulated Energy | $33.0 | $42.0 | | Other | $7.0 | $8.0 | | **Total** | **$375.0** | **$425.0** | - The Company's equity to total capitalization ratio was approximately **50%** as of June 30, 2025, in line with its target of **50% to 60%**[62](index=62&type=chunk) [Financial Statements (Unaudited)](index=19&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Income](index=19&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Unaudited)) This section presents unaudited income statements for Q2 and H1 2025, detailing total operating revenues and net income for both periods Key Income Statement Data (in millions) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | H1 2025 (in millions) | H1 2024 (in millions) | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenues | $192.8 | $166.3 | $491.5 | $412.0 | | Operating Income | $50.3 | $40.8 | $137.1 | $120.4 | | Net Income | $23.9 | $18.2 | $74.8 | $64.4 | [Consolidated Balance Sheets](index=20&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) This section provides unaudited balance sheets, showing total assets grew to $3.74 billion and total stockholders' equity increased to $1.50 billion as of June 30, 2025 Key Balance Sheet Data (in millions) | Metric | June 30, 2025 (in millions) | Dec 31, 2024 (in millions) | | :--- | :--- | :--- | | Net property, plant and equipment | $2,908.0 | $2,735.9 | | Total Assets | $3,737.8 | $3,577.0 | | Long-term debt, net | $1,249.6 | $1,261.7 | | Total stockholders' equity | $1,499.1 | $1,390.2 | | Total Capitalization and Liabilities | $3,737.8 | $3,577.0 | [Distribution Utility Statistical Data](index=22&type=section&id=Distribution%20Utility%20Statistical%20Data%20(Unaudited)) This section presents key operational statistics for distribution utilities, showing total customers increased to 376,027 in Q2 2025, reflecting continued growth Total Average Customers - Q2 2025 vs Q2 2024 | Distribution Utility | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Delmarva NG Distribution | 113,903 | 109,356 | | Florida Natural Gas Distribution | 228,545 | 222,259 | | FPU Electric Distribution | 33,579 | 33,121 | | **Total** | **376,027** | **364,736** |

Core Viewpoint - Chesapeake Utilities Corporation reported strong financial results for the second quarter and first half of 2025, highlighting significant growth in net income and adjusted earnings per share driven by regulatory initiatives, infrastructure programs, and increased demand for natural gas services [2][4][6]. Financial Performance - Net income for Q2 2025 was $23.9 million ($1.02 per share), up from $18.2 million ($0.82 per share) in Q2 2024, marking a 31.2% increase in net income and a 24.4% increase in EPS [2][14]. - Adjusted net income for Q2 2025 was $24.3 million ($1.04 per share), compared to $19.3 million ($0.86 per share) in Q2 2024, reflecting a 20.9% increase in adjusted EPS [2][16]. - For the first half of 2025, net income was $74.8 million ($3.22 per share), up from $64.4 million ($2.89 per share) in the same period of 2024, representing an 11.4% increase in EPS [4][14]. Growth Drivers - Adjusted earnings growth was primarily driven by contributions from regulatory initiatives, infrastructure programs, and organic growth in natural gas distribution and pipeline expansion projects [3][6]. - The company experienced a 13% increase in adjusted gross margin, attributed to operational efficiency improvements and increased customer consumption [6][17]. Capital Expenditure and Guidance - Year-to-date capital deployment reached $213 million, prompting an increase in full-year 2025 capital expenditure guidance to a range of $375 million to $425 million [7][9]. - The company reaffirmed its 2025 EPS guidance range of $6.15 to $6.35 per share and its 2028 EPS guidance range of $7.75 to $8.00 per share [8][9]. Regulatory and Infrastructure Initiatives - The company successfully resolved all three active rate cases and received approval for updated rates for the Worcester Resiliency Upgrade project, expected to generate an additional $3.9 million in margin once operational [7][9]. - Significant progress was made in capital projects, including pipeline expansions and regulatory initiatives aimed at meeting rising natural gas demand [7][36]. Segment Performance - The regulated energy segment reported an adjusted gross margin of $117.7 million for Q2 2025, up from $103.3 million in Q2 2024, driven by rate changes, natural gas transmission service expansions, and contributions from regulated infrastructure programs [18][25]. - The unregulated energy segment saw an adjusted gross margin increase to $25.0 million in Q2 2025 from $23.4 million in Q2 2024, despite challenges in propane operations [21][28].

Company Overview - Chesapeake Utilities (CPK) is located in Dover and operates within the Utilities sector, experiencing a price change of -1.21% since the beginning of the year [3] Dividend Information - The company currently pays a dividend of $0.69 per share, resulting in a dividend yield of 2.29%, which is lower than the Utility - Gas Distribution industry's yield of 3.32% and the S&P 500's yield of 1.48% [3] - Chesapeake Utilities has an annualized dividend of $2.74, reflecting a 9.2% increase from the previous year, with an average annual increase of 9.90% over the last five years [4] Earnings Growth - The Zacks Consensus Estimate for CPK's earnings per share for 2025 is $6.27, indicating a year-over-year growth rate of 16.33% [5] - The company's current payout ratio is 46%, meaning it distributes 46% of its trailing 12-month earnings per share as dividends [4] Investment Considerations - CPK is considered a strong dividend play and is currently rated with a Zacks Rank of 3 (Hold), making it an appealing investment opportunity [6]

Core Viewpoint - Chesapeake Utilities Corporation will host a conference call on August 8, 2025, to discuss its financial results for Q2 2025, with the earnings press release issued on August 7, 2025, after market close [1]. Company Information - Chesapeake Utilities Corporation is a diversified energy delivery company listed on the NYSE under the ticker CPK, providing sustainable energy solutions through various services including natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, and mobile compressed natural gas utility services [3].

DOVER, Del., July 14, 2025 /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) is proud to announce that it has been named Best for Corporate Governance in the United States by World News Media Ltd.'s World Finance, an international publication. This recognition celebrates Chesapeake Utilities Corporation's steadfast commitment to fostering a values-driven culture, upholding accountability at all levels and embracing a strategic approach that promotes safety, operational excellence and affordabilit ...