Core Viewpoint - Income investors prioritize generating consistent cash flow, primarily through dividends, which are a significant component of long-term returns [2][6]. Company Overview: Chesapeake Utilities - Chesapeake Utilities (CPK) is based in Dover and operates in the Utilities sector, with a year-to-date share price change of 4.86% [3]. - The company currently pays a dividend of $0.64 per share, resulting in a dividend yield of 2.01%, which is lower than the industry average of 3.42% and the S&P 500's yield of 1.57% [3]. Dividend Performance - The annualized dividend of Chesapeake Utilities is $2.56, reflecting a 2% increase from the previous year [4]. - Over the last five years, the company has increased its dividend five times, achieving an average annual increase of 10.07% [4]. - The current payout ratio stands at 47%, indicating that the company distributes 47% of its trailing 12-month earnings per share as dividends [4]. Earnings Growth Expectations - For the fiscal year, Chesapeake Utilities anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $6.26 per share, representing a year-over-year growth rate of 16.14% [5]. Investment Considerations - Chesapeake Utilities is viewed as a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [7].

Company Performance - Chesapeake Utilities (CPK) has gained approximately 6% year-to-date, outperforming the average return of 4.3% for the Utilities sector [4] - The Zacks Consensus Estimate for CPK's full-year earnings has increased by 0.2% over the past quarter, indicating improving analyst sentiment [4] - Chesapeake Utilities holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook for the stock [3] Industry Comparison - Chesapeake Utilities is part of the Utility - Gas Distribution industry, which consists of 13 companies and currently ranks 24 in the Zacks Industry Rank [6] - Stocks in the Utility - Gas Distribution industry have experienced an average loss of about 4.7% year-to-date, highlighting CPK's relative strength within this group [6] - Centrica PLC (CPYYY), another stock in the Utilities sector, has returned 11.1% year-to-date and also holds a Zacks Rank of 2 (Buy) [5]

Financial Data and Key Metrics Changes - Adjusted diluted earnings per share (EPS) for Q4 2024 was $1.63, bringing the full year EPS to $5.39, which is a significant accomplishment given various challenges faced during the year [12][34] - Full year adjusted gross margin was $567 million, up 25% from 2023, driven by the addition of Florida City Gas and infrastructure expansions [33] - Adjusted net income increased by 24% to approximately $122 million for full year 2024 [34] Business Line Data and Key Metrics Changes - Florida City Gas contributed nearly $89 million in adjusted gross margin for 2024 [16] - Adjusted gross margin for the Regulated Energy segment was approximately $439 million, up 32% from 2023 [37] - Unregulated Energy segment saw adjusted gross margin increase by 6% to approximately $128 million [38] Market Data and Key Metrics Changes - In Delmarva, over 4,000 new customers were added, driving residential growth by 4% and commercial growth by 1.6% [19] - In Florida, 6,700 new customers were added, resulting in residential and commercial growth of 3.9% and 1.2%, respectively [21] - Florida was the leading state for net in-migration and new resident net income growth in 2024 [21] Company Strategy and Development Direction - The company aims to prudently allocate capital, proactively manage regulatory strategies, and continually transform business operations [18] - A five-year capital investment plan of $1.5 billion to $1.8 billion is reaffirmed, with 2025 capital expenditure guidance set at $325 million to $375 million [27][25] - The company is focusing on integrating Florida City Gas and enhancing operational efficiencies through initiatives like the OneCX customer billing system [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment and its favorable impact on the industry, particularly for natural gas [63] - The company is positioned for significant growth in 2025, with a target of at least 14% adjusted EPS growth [55] - Management highlighted the importance of community engagement and maintaining a strong balance sheet to support future growth [53][39] Other Important Information - The company maintained a strong liquidity position with total available liquidity of $505 million at the end of 2024 [40] - A consistent dividend growth of approximately 9% was reported, with an annual dividend growth of 8.5% in 2024 [43][44] - The company is preparing for a credit rating pursuit and has made substantial progress in this area [42] Q&A Session Summary Question: Thoughts on executive orders and energy policy - Management indicated that executive orders have not changed their strategic thinking and are generally favorable for the industry [60][66] Question: Insights on Florida Supreme Court oral argument - Management believes the outcome will not significantly impact their operations and has moved to a more traditional depreciation study [68][72] Question: Weather impact on results, particularly for propane - Management noted that while the quarter started mild, favorable weather towards the end positively impacted results [78][80]

Fourth Quarter & Full-Year 2024 Earnings Call Presentation February 27, 2025 1 scan here for an electronic copy Safe Harbor for Forward-Looking Statements Safe Harbor Statement Some of the statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable law. Such forward-looking statements may be identified by the use of words, such as "project," "believe," "expect," "anticipate," "intend," "plan," "estimate," "c ...

Core Points - Chesapeake Utilities Corporation opened its second Safety Town training facility in DeBary, Florida, emphasizing its commitment to safety for employees and the community [1][3] - The facility is modeled after the original Safety Town in Dover, Delaware, and includes specialized training environments for various safety scenarios [2][3] - A $10,000 donation was made to the Florida Fire Chiefs' Association Foundation during the opening ceremony to support education and scholarships for fire and emergency services professionals [5] Facility Details - The one-acre center features simulations for hit line and gas leaks, service hook-ups, utility locating, leak detection, and corrosion monitoring [2] - It includes technology-equipped training rooms, equipment storage areas, and multiple training houses for real-life safety scenarios [2] - The curriculum aims to enhance technical expertise and emergency preparedness through comprehensive training programs [3][4] Community Engagement - The facility serves as a valuable training resource for Florida's first responders and community partners [5][6] - Tours and safety demonstrations were offered to attendees, showcasing the training opportunities available [5] - The mayor of DeBary highlighted the importance of hands-on training for community safety [6]

Core Viewpoint - Chesapeake Utilities reported quarterly earnings of $1.63 per share, missing the Zacks Consensus Estimate of $1.67 per share, representing an earnings surprise of -2.40% [1] - The company posted revenues of $215 million for the quarter, surpassing the Zacks Consensus Estimate by 0.42% and showing an increase from $185.34 million year-over-year [2] Financial Performance - Over the last four quarters, Chesapeake Utilities has surpassed consensus EPS estimates only once [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $2.38 on revenues of $267.4 million, and for the current fiscal year, it is $6.25 on revenues of $849.2 million [7] Market Position - Chesapeake Utilities shares have increased by approximately 4.3% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The Zacks Industry Rank for Utility - Gas Distribution is currently in the top 14% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current estimate revisions trend for Chesapeake Utilities is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Financial Performance and Risks - The company's financial results may fluctuate significantly, and past performance should not be relied upon as an indicator of future results[87]. - The company faces risks from fluctuations in propane gas prices, which could negatively affect operations if sales prices cannot be adjusted accordingly[89]. - Slowdowns in customer growth could adversely affect the company's financial condition, results of operations, and cash flows[120]. - Increased costs and delays in capital projects may negatively impact future earnings due to the capital-intensive nature of the business[117]. - Higher commodity prices for natural gas and propane may increase operating costs and reduce competitiveness, impacting financial condition and cash flows[123]. - The company faces potential adverse effects on financial condition from unanticipated changes in tax provisions and liabilities[138]. - The company’s financial condition may be adversely affected by interruptions in information technology or network systems, which could lead to legal claims and regulatory proceedings[110][111]. - Changes in tax provisions or exposure to additional tax liabilities could adversely affect the company's profitability and cash flow[138]. Regulatory and Compliance Issues - The company is subject to regulatory oversight, and failure to obtain timely rate increases could adversely affect financial results[132]. - Compliance with environmental laws may require significant expenditures, potentially affecting financial condition and results of operations[136]. - Non-compliance with PHMSA regulations could result in significant penalties and fines, adversely affecting financial condition and cash flows[134]. - The company is required to develop integrity management programs for pipeline safety, which may incur increased capital and operating costs due to evolving regulations[134]. - The company may face increased compliance costs due to revised environmental laws, which may not be fully recoverable[137]. Operational Risks - Severe weather events and natural disasters could adversely impact the company's earnings and access to insurance coverage, affecting financial condition and results[103]. - The company operates in a competitive environment, particularly in natural gas and propane operations, where failure to retain customers could adversely affect financial performance[100]. - The company is subject to operational risks related to the construction of new facilities, which may limit future growth[96]. - The company faces risks related to the implementation of new software, which may lead to delays, cost overruns, and security risks[119]. - The company’s ability to grow revenues in natural gas, propane, and electric distribution is dependent on the residential construction market and customer conversions, with slowdowns potentially impacting financial results[120]. - The company is exposed to risks associated with the use of derivative instruments for hedging price risk, which may affect financial results due to market fluctuations[126]. Market and Economic Factors - Continuing inflationary pressures and supply chain issues may impact the availability of necessary resources, adversely affecting financial condition and operations[92]. - Increases in interest rates could raise the cost of future debt issuances, potentially adversely affecting earnings if higher costs cannot be recovered[91]. - Increased costs of natural gas, propane, and electricity may lead to customer conservation, adversely affecting the company’s financial condition and cash flows[122]. - The company faces potential regulatory and financial risks associated with climate change, which could lead to increased operating costs and reduced demand for energy delivery services[139]. - Climate change may impact customer energy demand due to variations in weather conditions, potentially affecting revenues and cash flows[140]. Strategic Initiatives and Acquisitions - Chesapeake Utilities Corporation completed the acquisition of FCG, a regulated natural gas distribution utility serving approximately 123,000 customers, for $922.8 million in cash[129]. - The company relies on timely construction of new facilities to support future growth, which is subject to various regulatory and developmental risks[96]. - The company’s business strategy requires capital investment exceeding cash flow from operations, making access to equity and debt at reasonable costs critical for future growth[88]. - The company is at risk if franchise agreements are not renewed, which could negatively impact future earnings and cash flows[118]. - The company’s operations may be impacted by higher commodity prices, which can increase operating costs and affect competitiveness[123][124]. Insurance and Liability - The company maintains insurance coverage for general liabilities amounting to $52 million, but there is no assurance it will be adequate for all future claims[135]. - The company maintains insurance coverage for general liabilities amounting to $52 million, which may not fully cover future claims for personal injury and property damage[135]. - The potential for investigations and lawsuits related to greenhouse gas emissions could adversely impact the company's business and financial results[140].

FOR IMMEDIATE RELEASE February 26, 2025 NYSE Symbol: CPK CHESAPEAKE UTILITIES CORPORATION REPORTS FISCAL YEAR 2024 RESULTS Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK) ("Chesapeake Utilities" or the "Company") today announced financial results for the year and the fourth quarter ended December 31, 2024. For 2024, net income was $118.6 million ($5.26 per share) compared to $87.2 million ($4.73 per share) in 2023. Excluding transaction and transition-related expenses related to the acquisiti ...

DOVER, Del., Feb. 20, 2025 /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE:CPK) has been recognized as a 2025 Warrior Friendly Business by the Delaware State Chamber of Commerce Joint Military Affairs Committee (JMAC). The Company was honored in the Over 50 Employees category. The award, which recognizes the efforts of employers to support service members, veterans and their family members through workplace initiatives, was presented on Feb. 20 at the JMAC's annual State of the Guard Address.Chesapea ...

DOVER, Del., Feb. 3, 2025 /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) will host a conference call on Thursday, February 27, 2025 at 8:30 a.m. ET to discuss the Company's financial results for the fourth quarter and full year ended December 31, 2024. The earnings press release will be issued on Wednesday, February 26, 2025, after market close. To listen to the Company's conference call via live webcast, please register here prior to the call. The accompanying presentation will also be availa ...