CHESAPEAKE UTILITIES CORPORATION REPORTS SECOND QUARTER 2024 RESULTS
Chesapeake Utilities (NYSE: CPK) reported Q2 2024 net income of $18.3M and EPS of $0.82, compared to $16.1M and $0.90 YoY. Adjusted net income was $19.3M and adjusted EPS was $0.86, reflecting a 19.5% increase. For the first half of 2024, net income rose to $64.4M ($2.89 per share) versus $52.5M ($2.94 per share) in H1 2023. Adjusted net income was $66.1M, with adjusted EPS at $2.96.
Key drivers included contributions from Florida City Gas (FCG) acquisition, organic growth in natural gas, and pipeline expansion projects. The company received approvals for multiple pipeline projects, supporting future margins. Chesapeake Utilities reaffirmed its 2024 EPS guidance of $5.33 to $5.45 and capital expenditure guidance of $300M to $360M.
Operating income for Q2 2024 was $40.8M, up 43.9% YoY, driven by increased adjusted gross margin and contributions from FCG. The company invested $160M in H1 2024 and expects substantial EPS growth through 2028.
Chesapeake Utilities (NYSE: CPK) ha riportato un reddito netto di $18.3 milioni nel secondo trimestre del 2024 e un EPS di $0.82, rispetto ai $16.1 milioni e $0.90 dell'anno scorso. Il reddito netto rettificato è stato di $19.3 milioni con un EPS rettificato di $0.86, con un incremento del 19.5%. Nella prima metà del 2024, il reddito netto è salito a $64.4 milioni ($2.89 per azione) rispetto ai $52.5 milioni ($2.94 per azione) nel primo semestre del 2023. Il reddito netto rettificato è stato di $66.1 milioni, con un EPS rettificato di $2.96.
I principali fattori di crescita hanno incluso i contributi derivanti dall'acquisizione di Florida City Gas (FCG), la crescita organica nel gas naturale e i progetti di espansione delle pipeline. L'azienda ha ricevuto approvazioni per diversi progetti di pipeline, sostenendo i margini futuri. Chesapeake Utilities ha riconfermato le sue previsioni di EPS per il 2024 tra $5.33 e $5.45 e le previsioni di spese in conto capitale comprese tra $300 milioni e $360 milioni.
Il reddito operativo per il secondo trimestre del 2024 è stato di $40.8 milioni, con un aumento del 43.9% rispetto all'anno precedente, spinto dall'incremento del margine lordo rettificato e dai contributi di FCG. L'azienda ha investito $160 milioni nella prima metà del 2024 e si aspetta una sostanziale crescita dell'EPS fino al 2028.
Chesapeake Utilities (NYSE: CPK) reportó un ingreso neto de $18.3 millones en el segundo trimestre de 2024 y un EPS de $0.82, en comparación con $16.1 millones y $0.90 en el año anterior. El ingreso neto ajustado fue de $19.3 millones y el EPS ajustado fue de $0.86, reflejando un aumento del 19.5%. En la primera mitad de 2024, el ingreso neto subió a $64.4 millones ($2.89 por acción) en comparación con $52.5 millones ($2.94 por acción) en el primer semestre de 2023. El ingreso neto ajustado fue de $66.1 millones, con un EPS ajustado de $2.96.
Los principales impulsores incluyeron contribuciones de la adquisición de Florida City Gas (FCG), crecimiento orgánico en gas natural y proyectos de expansión de tuberías. La empresa recibió aprobaciones para múltiples proyectos de tuberías, apoyando los márgenes futuros. Chesapeake Utilities reafirmó su pronóstico de EPS para 2024 de $5.33 a $5.45 y una guía de gastos de capital de $300 millones a $360 millones.
El ingreso operativo para el segundo trimestre de 2024 fue de $40.8 millones, un aumento del 43.9% año tras año, impulsado por un incremento en el margen bruto ajustado y las contribuciones de FCG. La empresa invirtió $160 millones en la primera mitad de 2024 y espera un crecimiento sustancial del EPS hasta 2028.
체서피크 유틸리티(뉴욕증권거래소: CPK)는 2024년 2분기 순이익이 1,830만 달러, 주당순이익(EPS)이 0.82달러로 작년 같은 기간의 1,610만 달러와 0.90달러에 비해 증가했다고 보고했습니다. 조정된 순이익은 1,930만 달러였고 조정된 EPS는 0.86달러로 19.5% 증가한 수치를 보였습니다. 2024년 상반기 동안 순이익은 6,440만 달러(주당 2.89달러)로, 2023년 상반기의 5,250만 달러(주당 2.94달러)와 대비되었습니다. 조정된 순이익은 6,610만 달러였으며, 조정된 EPS는 2.96달러였습니다.
주요 요인으로는 플로리다 시티 가스(FCG) 인수 기여, 천연 가스의 유기적 성장, 그리고 파이프라인 확장 프로젝트가 포함되었습니다. 회사는 여러 파이프라인 프로젝트에 대한 승인을 받았으며, 이는 미래의 마진을 지원합니다. 체서피크 유틸리티는 2024년 EPS 가이던스를 5.33달러에서 5.45달러, 자본 지출 가이던스를 3억 달러에서 3억 6천만 달러로 확정했습니다.
2024년 2분기의 운영 수익은 4,080만 달러로, 작년 대비 43.9% 증가하였으며, 조정된 총 마진의 증가와 FCG의 기여 덕분이었습니다. 회사는 2024년 상반기에 1억 6,000만 달러를 투자했으며, 2028년까지 상당한 EPS 성장을 예상하고 있습니다.
Chesapeake Utilities (NYSE: CPK) a annoncé un revenu net de 18,3 millions de dollars pour le deuxième trimestre de 2024 et un BPA de 0,82 dollar, contre 16,1 millions de dollars et 0,90 dollar l'année précédente. Le revenu net ajusté a atteint 19,3 millions de dollars avec un BPA ajusté de 0,86 dollar, reflétant une augmentation de 19,5 %. Pour la première moitié de 2024, le revenu net a grimpé à 64,4 millions de dollars (2,89 dollars par action) contre 52,5 millions de dollars (2,94 dollars par action) au premier semestre 2023. Le revenu net ajusté était de 66,1 millions de dollars, avec un BPA ajusté de 2,96 dollars.
Les principaux moteurs incluent les contributions de l'acquisition de Florida City Gas (FCG), la croissance organique du gaz naturel et les projets d'expansion de pipelines. L'entreprise a reçu des approbations pour plusieurs projets de pipelines, soutenant les marges futures. Chesapeake Utilities a réaffirmé ses prévisions de BPA pour 2024 entre 5,33 et 5,45 dollars et ses prévisions d'investissement en capital entre 300 millions et 360 millions de dollars.
Le revenu d'exploitation pour le deuxième trimestre de 2024 était de 40,8 millions de dollars, en hausse de 43,9 % par rapport à l'année précédente, soutenu par une augmentation de la marge brute ajustée et les contributions de FCG. L'entreprise a investi 160 millions de dollars au cours de la première moitié de 2024 et s'attend à une croissance substantielle du BPA d'ici 2028.
Chesapeake Utilities (NYSE: CPK) berichtete im zweiten Quartal 2024 von einem Nettogewinn von 18,3 Millionen USD und einem EPS von 0,82 USD, verglichen mit 16,1 Millionen USD und 0,90 USD im Vorjahr. Der bereinigte Nettogewinn betrug 19,3 Millionen USD, der bereinigte EPS lag bei 0,86 USD und spiegelt einen Anstieg von 19,5% wider. In der ersten Jahreshälfte 2024 stieg der Nettogewinn auf 64,4 Millionen USD (2,89 USD pro Aktie) gegenüber 52,5 Millionen USD (2,94 USD pro Aktie) im ersten Halbjahr 2023. Der bereinigte Nettogewinn belief sich auf 66,1 Millionen USD, mit einem bereinigten EPS von 2,96 USD.
Zu den Hauptfaktoren gehörten Beiträge aus der Akquisition von Florida City Gas (FCG), organisches Wachstum im Erdgas und Pipelines expansionsprojekte. Das Unternehmen erhielt Genehmigungen für mehrere Pipeline-Projekte, die die zukünftigen Margen unterstützen. Chesapeake Utilities bestätigte seine EPS-Prognose für 2024 von 5,33 bis 5,45 USD und die Kapitalausgabenprognose von 300 Millionen bis 360 Millionen USD.
Das Betriebsergebnis für das zweite Quartal 2024 betrug 40,8 Millionen USD, ein Anstieg von 43,9% im Vergleich zum Vorjahr, getrieben von einer erhöhten bereinigten Bruttomarge und Beiträgen von FCG. Das Unternehmen investierte in der ersten Hälfte von 2024 160 Millionen USD und erwartet bis 2028 ein erhebliches EPS-Wachstum.
- Q2 2024 net income increased to $18.3M compared to $16.1M YoY.
- Adjusted net income rose 19.5%, reaching $19.3M.
- H1 2024 net income was $64.4M, up from $52.5M YoY.
- Adjusted gross margin for H1 2024 increased by $61.8M.
- Approved pipeline projects to boost future margins.
- Reaffirmed 2024 EPS guidance of $5.33 to $5.45.
- Operating income for Q2 2024 increased by 43.9%.
- Q2 2024 EPS decreased to $0.82 from $0.90 YoY.
- Increased interest expense due to FCG acquisition financing.
- Higher operating expenses attributed to FCG and other factors.
- Dilution impact from additional shares issued for FCG acquisition.
Insights
Chesapeake Utilities reported solid Q2 2024 results, with adjusted net income up
- Contributions from the Florida City Gas acquisition
- Natural gas organic growth of ~
4% - Continued pipeline expansion projects
- Regulatory initiatives
The company affirmed its 2024 adjusted EPS guidance of
While results are positive, increased interest expense and share dilution from the FCG acquisition are offsetting some gains. Investors should monitor integration progress and regulatory outcomes to assess future growth potential.
Chesapeake's results highlight the benefits of its growth-oriented strategy in high-demand markets. The
- Multiple pipeline projects approved, supporting future margin growth
41% of adjusted gross margin converted to operating income, showing solid cost management- New enterprise billing system launching in Q3, potentially improving efficiency
The
Chesapeake's results reflect broader industry trends favoring natural gas infrastructure investment. Key observations:
- Strong customer growth indicates robust housing/commercial development in service areas
- Pipeline approvals suggest continued regulatory support for gas expansion
- Unregulated business performance highlights diversification benefits
The
- Net income and earnings per share ("EPS")* were
$18.3 million $0.82 $64.4 million $2.89 - Adjusted net income and Adjusted EPS**, which exclude transaction and transition-related expenses attributable to the acquisition and integration of Florida City Gas ("FCG"), were
$19.3 million $0.86 $66.1 million $2.96 - Adjusted gross margin** growth of
$61.8 million - Multiple pipeline projects received approval to proceed, supporting continued natural gas demand in
Delaware andFlorida and driving incremental margins for 2025 and beyond - Results continue to track in line with Management's expectations, and the Company continues to affirm 2024 EPS and capital guidance
Net income for the second quarter of 2024 was
For the second quarter of 2024, incremental contributions from FCG, additional margin from regulated infrastructure programs, and growth in the Company's natural gas distribution businesses and continued pipeline expansion projects to support distribution growth were offset by the financing impacts of the FCG acquisition, including increased interest expense related to debt issued and additional shares outstanding.
During the first half of 2024, net income was
Earnings for the first half of 2024 were primarily impacted by the factors discussed for the second quarter as well as additional adjusted gross margin from increased customer consumption experienced earlier in the year.
"Our results this quarter demonstrate the opportunities in our high-growth service areas, the value of our unregulated businesses and our commitment to operational excellence," said Jeff Householder, chair, president and CEO. "We continue to remain on-track with the integration of FCG, experienced continued strong customer growth of approximately 4 percent across our Delmarva and
"This performance is in line with our expectations for 2024 and is driven by our ability to execute on our growth strategy: developing and investing record levels of capital, advancing our regulatory agenda and continuing our business transformation efforts," Householder continued. "Through the second quarter of this year, we invested
Earnings and Capital Investment Guidance
The Company continues to affirm its 2024 EPS guidance of
The Company also affirms its previously announced 2024 capital expenditure guidance of
*Unless otherwise noted, EPS and Adjusted EPS information are presented on a diluted basis.
Non-GAAP Financial Measures
**This press release including the tables herein, include references to both Generally Accepted Accounting Principles ("GAAP") and non-GAAP financial measures, including Adjusted Gross Margin, Adjusted Net Income and Adjusted EPS. A "non-GAAP financial measure" is generally defined as a numerical measure of a company's historical or future performance that includes or excludes amounts, or that is subject to adjustments, so as to be different from the most directly comparable measure calculated or presented in accordance with GAAP. Our management believes certain non-GAAP financial measures, when considered together with GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period.
The Company calculates Adjusted Gross Margin by deducting the purchased cost of natural gas, propane and electricity and the cost of labor spent on direct revenue-producing activities from operating revenues. The costs included in Adjusted Gross Margin exclude depreciation and amortization and certain costs presented in operations and maintenance expenses in accordance with regulatory requirements. The Company calculates Adjusted Net Income and Adjusted EPS by deducting costs and expenses associated with significant acquisitions that may affect the comparison of period-over-period results. These non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures. The Company believes that these non-GAAP measures are useful and meaningful to investors as a basis for making investment decisions, and provide investors with information that demonstrates the profitability achieved by the Company under allowed rates for regulated energy operations and under the Company's competitive pricing structures for unregulated energy operations. The Company's management uses these non-GAAP financial measures in assessing a business unit and Company performance. Other companies may calculate these non-GAAP financial measures in a different manner.
The following tables reconcile Gross Margin, Net Income, and EPS, all as defined under GAAP, to our non-GAAP measures of Adjusted Gross Margin, Adjusted Net Income and Adjusted EPS for each of the periods presented.
Adjusted Gross Margin | ||||||||
For the Three Months Ended June 30, 2024 | ||||||||
(in thousands) | Regulated | Unregulated | Other and | Total | ||||
Operating Revenues | $ 130,625 | $ 41,419 | $ (5,772) | $ 166,272 | ||||
Cost of Sales: | ||||||||
Natural gas, propane and | (27,378) | (18,006) | 5,744 | (39,640) | ||||
Depreciation & amortization | (14,657) | (3,223) | 3 | (17,877) | ||||
Operations & maintenance | (12,255) | (7,893) | 3 | (20,145) | ||||
Gross Margin (GAAP) | 76,335 | 12,297 | (22) | 88,610 | ||||
Operations & maintenance | 12,255 | 7,893 | (3) | 20,145 | ||||
Depreciation & amortization | 14,657 | 3,223 | (3) | 17,877 | ||||
Adjusted Gross Margin (Non- | $ 103,247 | $ 23,413 | $ (28) | $ 126,632 | ||||
For the Three Months Ended June 30, 2023 | ||||||||
(in thousands) | Regulated | Unregulated | Other and | Total | ||||
Operating Revenues | $ 101,141 | $ 40,751 | $ (6,299) | $ 135,593 | ||||
Cost of Sales: | ||||||||
Natural gas, propane and | (23,886) | (18,116) | 6,209 | (35,793) | ||||
Depreciation & amortization | (13,035) | (4,269) | 1 | (17,303) | ||||
Operations & maintenance | (9,240) | (7,520) | (2) | (16,762) | ||||
Gross Margin (GAAP) | 54,980 | 10,846 | (91) | 65,735 | ||||
Operations & maintenance | 9,240 | 7,520 | 2 | 16,762 | ||||
Depreciation & amortization | 13,035 | 4,269 | (1) | 17,303 | ||||
Adjusted Gross Margin (Non- | $ 77,255 | $ 22,635 | $ (90) | $ 99,800 | ||||
For the Six Months Ended June 30, 2024 | ||||||||
(in thousands) | Regulated | Unregulated | Other and | Total | ||||
Operating Revenues | $ 299,051 | $ 124,522 | $ (11,557) | $ 412,016 | ||||
Cost of Sales: | ||||||||
Natural gas, propane and | (77,296) | (55,060) | 11,499 | (120,857) | ||||
Depreciation & amortization | (27,194) | (7,704) | 5 | (34,893) | ||||
Operations & maintenance | (24,991) | (16,315) | 1 | (41,305) | ||||
Gross Margin (GAAP) | 169,570 | 45,443 | (52) | 214,961 | ||||
Operations & maintenance | 24,991 | 16,315 | (1) | 41,305 | ||||
Depreciation & amortization | 27,194 | 7,704 | (5) | 34,893 | ||||
Adjusted Gross Margin (Non- | $ 221,755 | $ 69,462 | $ (58) | $ 291,159 | ||||
For the Six Months Ended June 30, 2023 | ||||||||
(in thousands) | Regulated | Unregulated | Other and | Total | ||||
Operating Revenues | $ 243,411 | $ 123,916 | $ (13,605) | $ 353,722 | ||||
Cost of Sales: | ||||||||
Natural gas, propane and | (79,174) | (58,687) | 13,479 | (124,382) | ||||
Depreciation & amortization | (25,987) | (8,503) | 4 | (34,486) | ||||
Operations & maintenance | (18,527) | (15,996) | 3 | (34,520) | ||||
Gross Margin (GAAP) | 119,723 | 40,730 | (119) | 160,334 | ||||
Operations & maintenance | 18,527 | 15,996 | (3) | 34,520 | ||||
Depreciation & amortization | 25,987 | 8,503 | (4) | 34,486 | ||||
Adjusted Gross Margin (Non- | $ 164,237 | $ 65,229 | $ (126) | $ 229,340 | ||||
(1) Operations & maintenance expenses within the condensed consolidated statements of income are presented in accordance with regulatory requirements and to provide comparability within the industry. Operations & maintenance expenses which are deemed to be directly attributable to revenue producing activities have been separately presented above in order to calculate Gross Margin as defined under US GAAP. |
Adjusted Net Income and Adjusted EPS | ||||
Three Months Ended | ||||
June 30, | ||||
(in thousands, except per share data) | 2024 | 2023 | ||
Net Income (GAAP) | $ 18,271 | $ 16,133 | ||
FCG transaction and transition-related expenses, net (1) | 1,006 | — | ||
Adjusted Net Income (Non-GAAP) | $ 19,277 | $ 16,133 | ||
Weighted average common shares outstanding - diluted (2) | 22,335 | 17,852 | ||
Earnings Per Share - Diluted (GAAP) | $ 0.82 | $ 0.90 | ||
FCG transaction and transition-related expenses, net (1) | 0.04 | — | ||
Adjusted Earnings Per Share - Diluted (Non-GAAP) | $ 0.86 | $ 0.90 | ||
Six Months Ended | ||||
June 30, | ||||
(in thousands, except per share data) | 2024 | 2023 | ||
Net Income (GAAP) | $ 64,439 | $ 52,477 | ||
FCG transaction and transition-related expenses, net (1) | 1,683 | — | ||
Adjusted Net Income (Non-GAAP) | $ 66,122 | $ 52,477 | ||
Weighted average common shares outstanding - diluted (2) | 22,320 | 17,842 | ||
Earnings Per Share - Diluted (GAAP) | $ 2.89 | $ 2.94 | ||
FCG transaction and transition-related expenses, net (1) | 0.07 | — | ||
Adjusted Earnings Per Share - Diluted (Non-GAAP) | $ 2.96 | $ 2.94 | ||
(1) Transaction and transition-related expenses represent costs incurred attributable to the acquisition and integration of FCG including, but not limited to, transaction costs, transition services, consulting, system integration, rebranding and legal fees. |
(2) Weighted average shares for the three and six months ended June 30, 2024 reflect the impact of 4.4 million common shares issued in November 2023 in connection with the acquisition of FCG. |
Operating Results for the Quarters Ended June 30, 2024 and 2023
Consolidated Results | |||||||
Three Months Ended | |||||||
June 30, | |||||||
(in thousands) | 2024 | 2023 | Change | Percent | |||
Adjusted gross margin** | $ 126,632 | $ 99,800 | $ 26,832 | 26.9 % | |||
Depreciation, amortization and property taxes | 26,703 | 23,628 | 3,075 | 13.0 % | |||
FCG transaction and transition-related expenses | 1,374 | — | 1,374 | NMF | |||
Other operating expenses | 57,765 | 47,826 | 9,939 | 20.8 % | |||
Operating income | $ 40,790 | $ 28,346 | $ 12,444 | 43.9 % | |||
Operating income for the second quarter of 2024 was
Regulated Energy Segment | |||||||
Three Months Ended | |||||||
June 30, | |||||||
(in thousands) | 2024 | 2023 | Change | Percent | |||
Adjusted gross margin** | $ 103,247 | $ 77,255 | $ 25,992 | 33.6 % | |||
Depreciation, amortization and property taxes | 22,863 | 18,854 | 4,009 | 21.3 % | |||
FCG transaction and transition-related expenses | 1,374 | — | 1,374 | NMF | |||
Other operating expenses | 38,505 | 29,110 | 9,395 | 32.3 % | |||
Operating income | $ 40,505 | $ 29,291 | $ 11,214 | 38.3 % | |||
The key components of the increase in adjusted gross margin** are shown below:
(in thousands) | |
Contribution from FCG | $ 23,367 |
Margin from regulated infrastructure programs | 1,340 |
Natural gas growth including conversions (excluding service expansions) | 1,253 |
Natural gas transmission service expansions, including interim services | 563 |
Other variances | (531) |
Quarter-over-quarter increase in adjusted gross margin** | $ 25,992 |
(1) Includes adjusted gross margin contributions from permanent base rates that became effective in March 2023. |
The major components of the increase in other operating expenses are as follows:
(in thousands) | |
FCG operating expenses | $ 8,597 |
Payroll, benefits and other employee-related expenses | 679 |
Other variances | 119 |
Quarter-over-quarter increase in other operating expenses | $ 9,395 |
Unregulated Energy Segment | |||||||
Three Months Ended | |||||||
(in thousands) | 2024 | 2023 | Change | Percent | |||
Adjusted gross margin** | $ 23,413 | $ 22,635 | $ 778 | 3.4 % | |||
Depreciation, amortization and property taxes | 3,843 | 4,777 | (934) | (19.6) % | |||
Other operating expenses | 19,332 | 18,851 | 481 | 2.6 % | |||
Operating income (loss) | $ 238 | $ (993) | $ 1,231 | NMF | |||
The major components of the change in adjusted gross margin** are shown below:
(in thousands) | ||
Propane Operations | ||
Contributions from acquisition | $ 160 | |
Increased propane customer consumption | 117 | |
CNG/RNG/LNG Transportation and Infrastructure | ||
Increased level of virtual pipeline services | 587 | |
Aspire Energy | ||
Increased margins - rate changes and gathering fees | 251 | |
Other variances | (337) | |
Quarter-over-quarter increase in adjusted gross margin** | $ 778 |
The major components of the increase in other operating expenses are as follows:
(in thousands) | ||
Increased insurance related costs | $ 283 | |
Increased vehicle expenses | 246 | |
Other variances | (48) | |
Quarter-over-quarter increase in other operating expenses | $ 481 |
Operating Results for the Six Months Ended June 30, 2024 and 2023
Consolidated Results | |||||||
Six Months Ended | |||||||
June 30, | |||||||
(in thousands) | 2024 | 2023 | Change | Percent | |||
Adjusted gross margin** | $ 291,159 | $ 229,340 | $ 61,819 | 27.0 % | |||
Depreciation, amortization and property taxes | 52,813 | 47,118 | 5,695 | 12.1 % | |||
FCG transaction and transition-related expenses | 2,295 | — | 2,295 | NMF | |||
Other operating expenses | 115,676 | 98,961 | 16,715 | 16.9 % | |||
Operating income | $ 120,375 | $ 83,261 | $ 37,114 | 44.6 % | |||
Operating income for the first half of 2024 was
Regulated Energy Segment | |||||||
Six Months Ended | |||||||
June 30, | |||||||
(in thousands) | 2024 | 2023 | Change | Percent | |||
Adjusted gross margin** | $ 221,755 | $ 164,237 | $ 57,518 | 35.0 % | |||
Depreciation, amortization and property taxes | 43,818 | 37,524 | 6,294 | 16.8 % | |||
FCG transaction and transition-related expenses | 2,295 | — | 2,295 | NMF | |||
Other operating expenses | 77,028 | 59,797 | 17,231 | 28.8 % | |||
Operating income | $ 98,614 | $ 66,916 | $ 31,698 | 47.4 % | |||
The key components of the increase in adjusted gross margin** are shown below:
(in thousands) | |
Contribution from FCG | $ 48,326 |
Natural gas growth including conversions (excluding service expansions) | 3,169 |
Margin from regulated infrastructure programs | 2,618 |
Natural gas transmission service expansions, including interim services | 2,154 |
Rate changes associated with the | 1,630 |
Other variances | (379) |
Period-over-period increase in adjusted gross margin** | $ 57,518 |
(1) Includes adjusted gross margin contributions from permanent base rates that became effective in March 2023. |
The major components of the increase in other operating expenses are as follows:
(in thousands) | |
FCG operating expenses | $ 17,887 |
Payroll, benefits and other employee-related expenses | (1,109) |
Other variances | 453 |
Period-over-period increase in other operating expenses | $ 17,231 |
Unregulated Energy Segment | |||||||
Six Months Ended June 30, | |||||||
(in thousands) | 2024 | 2023 | Change | Percent | |||
Adjusted gross margin** | $ 69,462 | $ 65,229 | $ 4,233 | 6.5 % | |||
Depreciation, amortization and property taxes | 8,998 | 9,598 | (600) | (6.3) % | |||
Other operating expenses | 38,797 | 39,379 | (582) | (1.5) % | |||
Operating income | $ 21,667 | $ 16,252 | $ 5,415 | 33.3 % | |||
The major components of the change in adjusted gross margin** are shown below:
(in thousands) | ||
Propane Operations | ||
Increased propane customer consumption | $ 1,505 | |
Contributions from acquisition | 598 | |
Increased propane margins and service fees | 463 | |
CNG/RNG/LNG Transportation and Infrastructure | ||
Increased level of virtual pipeline services | 487 | |
Aspire Energy | ||
Increased margins - rate changes and gathering fees | 1,189 | |
Other variances | (9) | |
Period-over-period increase in adjusted gross margin** | $ 4,233 |
The major components of the decrease in other operating expenses are as follows:
(in thousands) | ||
Decreased payroll, benefits and other employee-related expenses | $ (1,083) | |
Increased insurance related costs | 655 | |
Increased vehicle expenses | 386 | |
Other variances | (540) | |
Period-over-period decrease in other operating expenses | $ (582) |
Forward-Looking Statements
Matters included in this release may include forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements. Please refer to the Safe Harbor for Forward-Looking Statements in the Company's 2023 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the second quarter of 2024 for further information on the risks and uncertainties related to the Company's forward-looking statements.
Conference Call
Chesapeake Utilities (NYSE: CPK) will host a conference call on Friday, August 9, 2024 at 8:30 a.m. Eastern Time to discuss the Company's financial results for the three and six months ended June 30, 2024. To listen to the Company's conference call via live webcast, please visit the Events & Presentations section of the Investors page on www.chpk.com. For investors and analysts that wish to participate by phone for the question and answer portion of the call, please use the following dial-in information:
Toll-free: 800.445-7795
International: 203.518.9856
Conference ID: CPKQ224
A replay of the presentation will be made available on the previously noted website following the conclusion of the call.
About Chesapeake Utilities Corporation
Chesapeake Utilities Corporation is a diversified energy delivery company, listed on the New York Stock Exchange. Chesapeake Utilities Corporation offers sustainable energy solutions through its natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, mobile compressed natural gas utility services and solutions, and other businesses.
Please note that Chesapeake Utilities Corporation is not affiliated with Chesapeake Energy, an oil and natural gas exploration company headquartered in
For more information, contact:
Beth W. Cooper
Executive Vice President, Chief Financial Officer, Treasurer and Assistant Corporate Secretary
302.734.6022
Michael D. Galtman
Senior Vice President and Chief Accounting Officer
302.217.7036
Lucia M. Dempsey
Head of Investor Relations
347.804.9067
Financial Summary (in thousands, except per-share data) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Adjusted Gross Margin | |||||||
Regulated Energy segment | $ 77,255 | $ 221,755 | |||||
Unregulated Energy segment | 23,413 | 22,635 | 69,462 | 65,229 | |||
Other businesses and eliminations | (28) | (90) | (58) | (126) | |||
Total Adjusted Gross Margin** | $ 99,800 | $ 291,159 | |||||
Operating Income (Loss) | |||||||
Regulated Energy segment | $ 40,505 | $ 29,291 | $ 98,614 | $ 66,916 | |||
Unregulated Energy segment | 238 | (993) | 21,667 | 16,252 | |||
Other businesses and eliminations | 47 | 48 | 94 | 93 | |||
Total Operating Income | 40,790 | 28,346 | 120,375 | 83,261 | |||
Other income, net | 1,110 | 831 | 1,305 | 1,107 | |||
Interest charges | 16,813 | 6,964 | 33,839 | 14,196 | |||
Income Before Income Taxes | 25,087 | 22,213 | 87,841 | 70,172 | |||
Income taxes | 6,816 | 6,080 | 23,402 | 17,695 | |||
Net Income | $ 18,271 | $ 16,133 | $ 64,439 | $ 52,477 | |||
Weighted Average Common Shares Outstanding: (1) | |||||||
Basic | 22,284 | 17,794 | 22,267 | 17,777 | |||
Diluted | 22,335 | 17,852 | 22,320 | 17,842 | |||
Earnings Per Share of Common Stock | |||||||
Basic | $ 0.82 | $ 0.91 | $ 2.89 | $ 2.95 | |||
Diluted | $ 0.82 | $ 0.90 | $ 2.89 | $ 2.94 | |||
Adjusted Net Income and Adjusted Earnings Per Share | |||||||
Net Income (GAAP) | $ 18,271 | $ 16,133 | $ 64,439 | $ 52,477 | |||
FCG transaction and transition-related-expenses, net (2) | 1,006 | — | 1,683 | — | |||
Adjusted Net Income (Non-GAAP)** | $ 19,277 | $ 16,133 | $ 66,122 | $ 52,477 | |||
Earnings Per Share - Diluted (GAAP) | $ 0.82 | $ 0.90 | $ 2.89 | $ 2.94 | |||
FCG transaction and transition-related-expenses, net (2) | 0.04 | — | 0.07 | — | |||
Adjusted Earnings Per Share - Diluted (Non-GAAP)** | $ 0.86 | $ 0.90 | $ 2.96 | $ 2.94 | |||
(1) Weighted average shares for the three and six months ended June 30, 2024 reflect the impact of 4.4 million common shares issued in November 2023 in connection with the acquisition of FCG. |
(2) Transaction and transition-related expenses represent costs incurred attributable to the acquisition and integration of FCG including, but not limited to, transaction costs, transition services, consulting, system integration, rebranding and legal fees. |
Financial Summary Highlights
Key variances between the second quarter of 2023 and 2024 included:
(in thousands, except per share data) | Pre-tax Income | Net Income | Earnings Per Share | |||
Second Quarter of 2023 Adjusted Results | $ 22,213 | $ 16,133 | $ 0.90 | |||
Increased Adjusted Gross Margins: | ||||||
Contributions from acquisitions | 23,527 | 17,135 | 0.77 | |||
Margin from regulated infrastructure programs* | 1,340 | 976 | 0.04 | |||
Natural gas growth including conversions (excluding service expansions) | 1,253 | 912 | 0.04 | |||
Increased level of virtual pipeline services | 587 | 428 | 0.02 | |||
Natural gas transmission service expansions, including interim services* | 563 | 410 | 0.02 | |||
Improved Aspire Energy performance - rate changes and gathering fees | 251 | 183 | — | |||
27,521 | 20,044 | 0.89 | ||||
Increased Operating Expenses (Excluding Natural Gas, Propane, and | ||||||
FCG operating expenses | (9,720) | (7,079) | (0.32) | |||
Payroll, benefits and other employee-related expenses | (772) | (562) | (0.02) | |||
Insurance related costs | (559) | (407) | (0.02) | |||
Vehicle expenses | (250) | (182) | (0.01) | |||
Depreciation, amortization and property tax costs (includes FCG) | (1,951) | (1,421) | (0.06) | |||
(13,252) | (9,651) | (0.43) | ||||
Interest charges | (9,849) | (7,173) | (0.32) | |||
Increase in shares outstanding due to 2023 and 2024 equity offerings*** | — | — | (0.18) | |||
Net other changes | (172) | (76) | — | |||
(10,021) | (7,249) | (0.50) | ||||
Second Quarter of 2024 Adjusted Results** | $ 26,461 | $ 19,277 | $ 0.86 |
* Refer to Major Projects and Initiatives Table for additional information. |
** Transaction and transition-related expenses attributable to the acquisition and integration of FCG have been excluded from the Company's non GAAP measures of adjusted net income and adjusted EPS. See reconciliations above for a detailed comparison to the related GAAP measures. |
*** Reflects the impact of 4.4 million common shares issued in November 2023 in connection with the acquisition of FCG. |
Key variances between the six months ended June 30, 2023 and June 30, 2024 included:
(in thousands, except per share data) | Pre-tax Income | Net Income | Earnings Per Share | |||
Six months ended June 30, 2023 Adjusted Results | $ 70,172 | $ 52,477 | $ 2.94 | |||
Non-recurring Items: | ||||||
Absence of benefit associated with a reduction in the PA state tax rate | — | (1,284) | (0.06) | |||
— | (1,284) | (0.06) | ||||
Increased Adjusted Gross Margins: | ||||||
Contributions from acquisitions | 48,924 | 35,891 | 1.61 | |||
Natural gas growth including conversions (excluding service expansions) | 3,169 | 2,325 | 0.10 | |||
Margin from regulated infrastructure programs* | 2,618 | 1,921 | 0.09 | |||
Natural gas transmission service expansions, including interim services* | 2,154 | 1,580 | 0.07 | |||
Changes in customer consumption | 1,842 | 1,352 | 0.06 | |||
Rate changes associated with the | 1,630 | 1,196 | 0.05 | |||
Improved Aspire Energy performance - rate changes and gathering fees | 1,189 | 872 | 0.04 | |||
Increased level of virtual pipeline services | 487 | 358 | 0.02 | |||
Increased propane margins and fees | 463 | 340 | 0.01 | |||
62,476 | 45,835 | 2.05 | ||||
(Increased) Decreased Operating Expenses (Excluding Natural Gas, | ||||||
FCG operating expenses | (20,133) | (14,770) | (0.66) | |||
Insurance related costs | (1,084) | (795) | (0.04) | |||
Vehicle expenses | (403) | (295) | (0.01) | |||
Payroll, benefits and other employee-related expenses | 2,192 | 1,608 | 0.07 | |||
Depreciation, amortization and property tax costs (includes FCG) | (3,449) | (2,530) | (0.11) | |||
(22,877) | (16,782) | (0.75) | ||||
Interest charges | (19,643) | (14,410) | (0.65) | |||
Increase in shares outstanding due to 2023 and 2024 equity offerings*** | — | — | (0.59) | |||
Net other changes | 8 | 286 | 0.02 | |||
(19,635) | (14,124) | (1.22) | ||||
Six months ended June 30, 2024 Adjusted Results** | $ 90,136 | $ 66,122 | $ 2.96 |
* Refer to Major Projects and Initiatives Table for additional information. |
** Transaction and transition-related expenses attributable to the acquisition and integration of FCG have been excluded from the Company's non GAAP measures of adjusted net income and adjusted EPS. See reconciliations above for a detailed comparison to the related GAAP measures. |
*** Reflects the impact of 4.4 million common shares issued in November 2023 in connection with the acquisition of FCG. |
Recently Completed and Ongoing Major Projects and Initiatives
The Company continuously pursues and develops additional projects and initiatives to serve existing and new customers, further grow its businesses and earnings, and increase shareholder value. The following table includes all major projects and initiatives that are currently underway or recently completed. The Company's practice is to add new projects and initiatives to this table once negotiations or details are substantially final and/or the associated earnings can be estimated. Major projects and initiatives that have generated consistent year-over-year adjusted gross margin contributions are removed from the table at the beginning of the next calendar year.
The related descriptions of projects and initiatives that accompany the table include only new items and/or items where there have been significant developments, as compared to the Company's prior quarterly filings. A comprehensive discussion of all projects and initiatives reflected in the table below can be found in the Company's second quarter 2024 Quarterly Report on Form 10-Q.
Adjusted Gross Margin | |||||||||||||
Three Months | Six Months Ended | Year Ended | Estimate for | ||||||||||
June 30, | June 30, | December 31, | Fiscal | ||||||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | 2023 | 2024 | 2025 | ||||||
Pipeline Expansions: | |||||||||||||
Southern Expansion | $ 586 | $ 455 | $ 1,172 | $ 486 | $ 586 | $ 2,344 | $ 2,344 | ||||||
Beachside Pipeline Expansion | 603 | 603 | 1,206 | 603 | 1,810 | 2,451 | 2,414 | ||||||
North Ocean City Connector | — | — | — | — | — | — | 494 | ||||||
146 | — | 292 | — | 264 | 584 | 2,752 | |||||||
Wildlight | 205 | 67 | 404 | 93 | 471 | 1,423 | 2,038 | ||||||
114 | 38 | 228 | 38 | 265 | 454 | 454 | |||||||
72 | — | 72 | — | — | 1,364 | 2,585 | |||||||
— | — | — | — | — | — | 3,342 | |||||||
— | — | — | — | — | — | 1,710 | |||||||
Central Florida Reinforcement | — | — | — | — | — | 476 | 1,182 | ||||||
— | — | — | — | — | 258 | 1,858 | |||||||
Renewable Natural Gas Supply | — | — | — | — | — | — | 5,460 | ||||||
Total Pipeline Expansions | 1,726 | 1,163 | 3,374 | 1,220 | 3,396 | 9,354 | 26,633 | ||||||
CNG/RNG/LNG Transportation | 3,505 | 2,905 | 6,940 | 6,426 | 11,181 | 13,500 | 14,500 | ||||||
Regulatory Initiatives: | |||||||||||||
Florida GUARD program | 865 | — | 1,454 | — | 353 | 3,231 | 5,602 | ||||||
FCG SAFE Program | 689 | — | 1,101 | — | — | 2,683 | 5,293 | ||||||
Capital Cost Surcharge Programs | 777 | 703 | 1,608 | 1,423 | 2,829 | 3,979 | 4,374 | ||||||
Florida Rate Case Proceeding (1) | 4,005 | 3,873 | 9,600 | 7,970 | 15,835 | 17,153 | 17,153 | ||||||
Maryland Rate Case (2) | — | — | — | — | — | TBD | TBD | ||||||
Electric Storm Protection Plan | 677 | 436 | 1,307 | 642 | 1,326 | 2,433 | 3,951 | ||||||
Total Regulatory Initiatives | 7,013 | 5,012 | 15,070 | 10,035 | 20,343 | 29,479 | 36,373 | ||||||
Total | $ 12,244 | $ 9,080 | $ 25,384 | $ 17,681 | $ 34,920 | $ 52,333 | $ 77,506 | ||||||
(1) Includes adjusted gross margin during 2023 comprised of both interim rates and permanent base rates which became effective in March 2023. |
(2) Rate case application and depreciation study filed with the Maryland PSC in January 2024. See additional information provided below. |
Detailed Discussion of Major Projects and Initiatives
Pipeline Expansions
In July 2022, Peninsula Pipeline filed a petition with the Public Service Commission ("PSC") for the
In February 2024, Peninsula Pipeline filed a petition with the Florida PSC for approval of an amendment to its Transportation Service Agreement with FPU for an additional 10,000 Dts/day of firm service in the
Newberry Expansion
In April 2023, Peninsula Pipeline filed a petition with the Florida PSC for approval of its Transportation Service Agreement with FPU for an additional 8,000 Dts/day of firm service in the
East Coast Reinforcement Projects
In December 2023, Peninsula Pipeline filed a petition with the Florida PSC for approval of its Transportation Service Agreements with FPU for projects that will support additional supply to communities on the East Coast of
Central Florida Reinforcement Projects
In February 2024, Peninsula Pipeline filed a petition with the Florida PSC for approval of its Transportation Service Agreements with FPU for projects that will support additional supply to communities located in
In July 2024, the Company announced plans to extend Eastern Shore's transmission deliverability by constructing an additional 4.4 miles of six inch steel pipeline. The project will reinforce the supply and growth for our
Pioneer Supply Header Pipeline Project
In March 2024, Peninsula Pipeline filed a petition with the Florida PSC for its approval of Firm Transportation Service Agreements with both FCG and FPU for a project that will support greater supply growth of natural gas service in southeast
Renewable Natural Gas Supply Projects
In February 2024, Peninsula Pipeline filed a petition with the Florida PSC for approval of Transportation Service Agreements with FCG for projects that will support the transportation of additional renewable energy supply to FCG. The projects, located in
Regulatory Initiatives
Maryland Natural Gas Rate Case
In January 2024, the Company's natural gas distribution businesses in
Maryland Natural Gas Depreciation Study
In January 2024, the Company's
FCG SAFE Program
In April 2024, FCG filed a petition with the Florida PSC to more closely align the SAFE Program with FPU's GUARD program. Specifically, the requested modifications will enable FCG to accelerate remediation related to problematic pipe and facilities consisting of obsolete and exposed pipe. If approved, these efforts will serve to improve the safety and reliability of service to FCG's customers. These modifications, if approved, will result in an estimated additional
Delaware Natural Gas Rate Case
In May 2024, the Company's
FPU Electric Rate Case
In June 2024, the Company provided notice to the Florida PSC of its intent to file a petition seeking a general rate base increase based on a 2025 projected test year. The filing is expected to be submitted to the Florida PSC in August 2024 and the outcome of the application will be subject to review and approval by the Florida PSC.
Other Major Factors Influencing Adjusted Gross Margin
Weather and Consumption
Weather was not a significant factor to adjusted gross margin in the second quarter of 2024 compared to the same period in 2023.
For the six months ended June 30, 2024, higher consumption which includes the effects of colder weather conditions compared to the prior-year period resulted in a
The following table summarizes HDD and CDD variances from the 10-year average HDD/CDD ("Normal") for the three and six months ended June 30, 2024 and 2023.
Three Months Ended | Six Months Ended | ||||||||||
June 30, | June 30, | ||||||||||
2024 | 2023 | Variance | 2024 | 2023 | Variance | ||||||
Delmarva | |||||||||||
Actual HDD | 319 | 276 | 43 | 2,281 | 2,050 | 231 | |||||
10-Year Average HDD ("Normal") | 387 | 408 | (21) | 2,608 | 2,693 | (85) | |||||
Variance from Normal | (68) | (132) | (327) | (643) | |||||||
Actual HDD | 41 | 26 | 15 | 511 | 370 | 141 | |||||
10-Year Average HDD ("Normal") | 41 | 44 | (3) | 511 | 549 | (38) | |||||
Variance from Normal | — | (18) | — | (179) | |||||||
Actual HDD | 478 | 678 | (200) | 3,137 | 3,062 | 75 | |||||
10-Year Average HDD ("Normal") | 631 | 631 | — | 3,596 | 3,596 | — | |||||
Variance from Normal | (153) | 47 | (459) | (534) | |||||||
Actual CDD | 1,115 | 937 | 178 | 1,296 | 1,260 | 36 | |||||
10-Year Average CDD ("Normal") | 978 | 952 | 26 | 1,195 | 1,144 | 51 | |||||
Variance from Normal | 137 | (15) | 101 | 116 | |||||||
Natural Gas Distribution Growth
The average number of residential customers served on the Delmarva Peninsula increased by approximately 3.7 percent and 3.9 percent, respectively, for the three and six months ended June 30, 2024 while our legacy Florida Natural Gas distribution business increased by approximately 3.7 percent and 3.6 percent, respectively, during the same periods.
The details of the adjusted gross margin increase are provided in the following table:
Adjusted Gross Margin** | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, 2024 | June 30, 2024 | ||||||
(in thousands) | Delmarva | Delmarva | |||||
Customer growth: | |||||||
Residential | $ 352 | $ 647 | $ 842 | $ 1,527 | |||
Commercial and industrial | 124 | 130 | 280 | 520 | |||
Total customer growth (1) | $ 476 | $ 777 | $ 1,122 | $ 2,047 | |||
(1) Customer growth amounts for the legacy |
Capital Investment Growth and Capital Structure Updates
The Company's capital expenditures were
2024 | |||
(in thousands) | Low | High | |
Regulated Energy: | |||
Natural gas distribution | $ 150,000 | $ 170,000 | |
Natural gas transmission | 90,000 | 120,000 | |
Electric distribution | 25,000 | 28,000 | |
Total Regulated Energy | 265,000 | 318,000 | |
Unregulated Energy: | |||
Propane distribution | 13,000 | 15,000 | |
Energy transmission | 5,000 | 6,000 | |
Other unregulated energy | 13,000 | 15,000 | |
Total Unregulated Energy | 31,000 | 36,000 | |
Other: | |||
Corporate and other businesses | 4,000 | 6,000 | |
Total 2024 Forecasted Capital Expenditures | $ 300,000 | $ 360,000 | |
The capital expenditure projection is subject to continuous review and modification. Actual capital requirements may vary from the above estimates due to a number of factors, including changing economic conditions, supply chain disruptions, capital delays that are greater than currently anticipated, customer growth in existing areas, regulation, new growth or acquisition opportunities and availability of capital.
The Company's target ratio of equity to total capitalization, including short-term borrowings, is between 50 and 60 percent. The Company's equity to total capitalization ratio, including short-term borrowings, was approximately 48 percent as of June 30, 2024.
Chesapeake Utilities Corporation and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in thousands, except per share data) | ||||||||
Operating Revenues | ||||||||
Regulated Energy | $ 130,625 | $ 101,141 | $ 299,051 | $ 243,411 | ||||
Unregulated Energy | 41,419 | 40,751 | 124,522 | 123,916 | ||||
Other businesses and eliminations | (5,772) | (6,299) | (11,557) | (13,605) | ||||
Total Operating Revenues | 166,272 | 135,593 | 412,016 | 353,722 | ||||
Operating Expenses | ||||||||
Natural gas and electricity costs | 27,378 | 23,886 | 77,296 | 79,174 | ||||
Propane and natural gas costs | 12,262 | 11,907 | 43,561 | 45,208 | ||||
Operations | 52,339 | 42,163 | 103,899 | 86,930 | ||||
FCG transaction and transition-related expenses | 1,374 | — | 2,295 | — | ||||
Maintenance | 5,561 | 5,258 | 11,464 | 10,362 | ||||
Depreciation and amortization | 17,877 | 17,303 | 34,893 | 34,486 | ||||
Other taxes | 8,691 | 6,730 | 18,233 | 14,301 | ||||
Total operating expenses | 125,482 | 107,247 | 291,641 | 270,461 | ||||
Operating Income | 40,790 | 28,346 | 120,375 | 83,261 | ||||
Other income, net | 1,110 | 831 | 1,305 | 1,107 | ||||
Interest charges | 16,813 | 6,964 | 33,839 | 14,196 | ||||
Income Before Income Taxes | 25,087 | 22,213 | 87,841 | 70,172 | ||||
Income taxes | 6,816 | 6,080 | 23,402 | 17,695 | ||||
Net Income | $ 18,271 | $ 16,133 | $ 64,439 | $ 52,477 | ||||
Weighted Average Common Shares Outstanding: | ||||||||
Basic | 22,284 | 17,794 | 22,267 | 17,777 | ||||
Diluted | 22,335 | 17,852 | 22,320 | 17,842 | ||||
Earnings Per Share of Common Stock: | ||||||||
Basic | $ 0.82 | $ 0.91 | $ 2.89 | $ 2.95 | ||||
Diluted | $ 0.82 | $ 0.90 | $ 2.89 | $ 2.94 | ||||
Adjusted Net Income and Adjusted Earnings Per Share | ||||||||
Net Income (GAAP) | $ 18,271 | $ 16,133 | $ 64,439 | $ 52,477 | ||||
FCG transaction and transition-related expenses, net (1) | 1,006 | — | 1,683 | — | ||||
Adjusted Net Income (Non-GAAP)** | $ 19,277 | $ 16,133 | $ 66,122 | $ 52,477 | ||||
Earnings Per Share - Diluted (GAAP) | $ 0.82 | $ 0.90 | $ 2.89 | $ 2.94 | ||||
FCG transaction and transition-related expenses, net (1) | 0.04 | — | 0.07 | — | ||||
Adjusted Earnings Per Share - Diluted (Non-GAAP)** | $ 0.86 | $ 0.90 | $ 2.96 | $ 2.94 | ||||
(1) Transaction and transition-related expenses represent costs incurred attributable to the acquisition and integration of FCG including, but not limited to, transaction costs, transition services, consulting, system integration, rebranding and legal fees. |
Chesapeake Utilities Corporation and Subsidiaries Consolidated Balance Sheets (Unaudited)
| ||||
Assets | June 30, | December 31, | ||
(in thousands, except per share data) | ||||
Property, Plant and Equipment | ||||
Regulated Energy | $ 2,515,712 | $ 2,418,494 | ||
Unregulated Energy | 420,074 | 410,807 | ||
Other businesses and eliminations | 32,645 | 30,310 | ||
Total property, plant and equipment | 2,968,431 | 2,859,611 | ||
Less: Accumulated depreciation and amortization | (546,598) | (516,429) | ||
Plus: Construction work in progress | 157,347 | 113,192 | ||
Net property, plant and equipment | 2,579,180 | 2,456,374 | ||
Current Assets | ||||
Cash and cash equivalents | 6,430 | 4,904 | ||
Trade and other receivables | 56,362 | 74,485 | ||
Less: Allowance for credit losses | (2,195) | (2,699) | ||
Trade and other receivables, net | 54,167 | 71,786 | ||
Accrued revenue | 20,177 | 32,597 | ||
Propane inventory, at average cost | 6,511 | 9,313 | ||
Other inventory, at average cost | 19,715 | 19,912 | ||
Regulatory assets | 19,646 | 19,506 | ||
Storage gas prepayments | 2,801 | 4,695 | ||
Income taxes receivable | 9,865 | 3,829 | ||
Prepaid expenses | 12,549 | 15,407 | ||
Derivative assets, at fair value | 1,180 | 1,027 | ||
Other current assets | 3,236 | 2,723 | ||
Total current assets | 156,277 | 185,699 | ||
Deferred Charges and Other Assets | ||||
Goodwill | 507,856 | 508,174 | ||
Other intangible assets, net | 15,910 | 16,865 | ||
Investments, at fair value | 13,620 | 12,282 | ||
Derivative assets, at fair value | 192 | 40 | ||
Operating lease right-of-use assets | 11,201 | 12,426 | ||
Regulatory assets | 83,594 | 96,396 | ||
Receivables and other deferred charges | 12,923 | 16,448 | ||
Total deferred charges and other assets | 645,296 | 662,631 | ||
Total Assets | $ 3,380,753 | $ 3,304,704 | ||
Chesapeake Utilities Corporation and Subsidiaries Consolidated Balance Sheets (Unaudited)
| ||||
Capitalization and Liabilities | June 30, | December 31, | ||
(in thousands, except per share data) | ||||
Capitalization | ||||
Stockholders' equity | ||||
Preferred stock, par value | $ — | $ — | ||
Common stock, par value | 10,854 | 10,823 | ||
Additional paid-in capital | 755,751 | 749,356 | ||
Retained earnings | 525,525 | 488,663 | ||
Accumulated other comprehensive loss | (1,576) | (2,738) | ||
Deferred compensation obligation | 9,703 | 9,050 | ||
Treasury stock | (9,703) | (9,050) | ||
Total stockholders' equity | 1,290,554 | 1,246,104 | ||
Long-term debt, net of current maturities | 1,174,762 | 1,187,075 | ||
Total capitalization | 2,465,316 | 2,433,179 | ||
Current Liabilities | ||||
Current portion of long-term debt | 18,592 | 18,505 | ||
Short-term borrowing | 207,091 | 179,853 | ||
Accounts payable | 69,041 | 77,481 | ||
Customer deposits and refunds | 44,775 | 46,427 | ||
Accrued interest | 3,652 | 7,020 | ||
Dividends payable | 14,272 | 13,119 | ||
Accrued compensation | 12,519 | 16,544 | ||
Regulatory liabilities | 19,677 | 13,719 | ||
Income taxes payable | — | — | ||
Derivative liabilities, at fair value | 27 | 354 | ||
Other accrued liabilities | 20,547 | 13,362 | ||
Total current liabilities | 410,193 | 386,384 | ||
Deferred Credits and Other Liabilities | ||||
Deferred income taxes | 283,322 | 259,082 | ||
Regulatory liabilities | 192,710 | 195,279 | ||
Environmental liabilities | 2,402 | 2,607 | ||
Other pension and benefit costs | 16,102 | 15,330 | ||
Derivative liabilities, at fair value | 12 | 927 | ||
Operating lease - liabilities | 9,341 | 10,550 | ||
Deferred investment tax credits and other liabilities | 1,355 | 1,366 | ||
Total deferred credits and other liabilities | 505,244 | 485,141 | ||
Environmental and other commitments and contingencies (1) | ||||
Total Capitalization and Liabilities | $ 3,380,753 | $ 3,304,704 | ||
(1) Refer to Note 6 and 7 in the Company's Quarterly Report on Form 10-Q for further information. |
Chesapeake Utilities Corporation and Subsidiaries Distribution Utility Statistical Data (Unaudited) | |||||||||||||
For the Three Months Ended June 30, 2024 | For the Three Months Ended June 30, 2023 | ||||||||||||
Delmarva NG |
|
| FPU Electric | Delmarva NG |
| FPU Electric | |||||||
Operating Revenues | |||||||||||||
Residential | $ 15,930 | $ 11,275 | $ 12,918 | $ 11,225 | $ 16,878 | $ 12,188 | $ 11,023 | ||||||
Commercial and Industrial | 10,323 | 26,721 | 16,968 | 12,134 | 11,093 | 28,740 | 12,253 | ||||||
Other (1) | (2,962) | 1,921 | 2,608 | (813) | (3,858) | (162) | (242) | ||||||
Total Operating Revenues | $ 23,291 | $ 39,917 | $ 32,494 | $ 22,546 | $ 24,113 | $ 40,766 | $ 23,034 | ||||||
Volumes (in Dts for natural gas and | |||||||||||||
Residential | 823,378 | 525,878 | 427,062 | 71,226 | 765,193 | 472,147 | 66,835 | ||||||
Commercial and Industrial | 2,248,283 | 10,132,993 | 2,784,296 | 95,646 | 2,220,105 | 10,054,518 | 74,086 | ||||||
Other | 58,603 | 572,126 | 1,470,769 | — | 63,787 | — | — | ||||||
Total | 3,130,264 | 11,230,997 | 4,682,127 | 166,872 | 3,049,085 | 10,526,665 | 140,921 | ||||||
Average Customers | |||||||||||||
Residential | 100,964 | 91,439 | 113,673 | 25,762 | 97,333 | 88,188 | 25,755 | ||||||
Commercial and Industrial | 8,367 | 8,486 | 8,551 | 7,359 | 8,249 | 8,405 | 7,378 | ||||||
Other | 25 | — | 110 | — | 22 | 6 | — | ||||||
Total | 109,356 | 99,925 | 122,334 | 33,121 | 105,604 | 96,599 | 33,133 | ||||||
For the Six Months Ended June 30, 2024 | For the Six Months Ended June 30, 2023 | ||||||||||||
Delmarva NG |
|
| FPU Electric | Delmarva NG |
| FPU Electric | |||||||
Operating Revenues | |||||||||||||
Residential | $ 51,726 | $ 26,618 | $ 27,949 | $ 22,651 | $ 58,898 | $ 28,684 | $ 22,380 | ||||||
Commercial and Industrial | 27,890 | 57,774 | 36,402 | 22,917 | 32,518 | 54,479 | 23,994 | ||||||
Other (1) | (4,637) | 3,481 | 4,020 | (3,058) | (6,911) | 3,961 | (603) | ||||||
Total Operating Revenues | $ 74,979 | $ 87,873 | $ 68,371 | $ 42,510 | $ 84,505 | $ 87,124 | $ 45,771 | ||||||
Volumes (in Dts for natural gas and | |||||||||||||
Residential | 3,261,532 | 1,366,919 | 1,026,399 | 143,247 | 3,056,513 | 1,225,903 | 135,352 | ||||||
Commercial and Industrial | 5,675,456 | 20,248,545 | 5,768,923 | 183,473 | 5,607,936 | 20,362,474 | 142,789 | ||||||
Other | 147,701 | 1,303,132 | 3,069,512 | — | 151,323 | 627,934 | — | ||||||
Total | 9,084,689 | 22,918,596 | 9,864,834 | 326,720 | 8,815,772 | 22,216,311 | 278,141 | ||||||
Average Customers | |||||||||||||
Residential | 100,749 | 90,955 | 113,350 | 25,733 | 96,922 | 87,757 | 25,686 | ||||||
Commercial and Industrial | 8,382 | 8,480 | 8,535 | 7,365 | 8,260 | 8,407 | 7,369 | ||||||
Other | 25 | — | 105 | — | 23 | 6 | — | ||||||
Total | 109,156 | 99,435 | 121,990 | 33,098 | 105,205 | 96,170 | 33,055 | ||||||
(1) Operating Revenues from "Other" sources include unbilled revenue, under (over) recoveries of fuel cost, conservation revenue, other miscellaneous charges, fees for billing services provided to third parties and adjustments for pass-through taxes. |
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SOURCE Chesapeake Utilities Corporation
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