CHESAPEAKE UTILITIES CORPORATION REPORTS SECOND QUARTER 2025 RESULTS

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].