Chesapeake Utils Corp - CPK STOCK NEWS

Chesapeake Utilities Corporation (NYSE: CPK) announced the completion of the Callahan Intrastate Pipeline, enhancing natural gas capacity in Nassau and Duval Counties, Florida. The project was developed in partnership with SeaCoast Gas Transmission and TECO Peoples Gas, facilitating expanded service for Chesapeake's subsidiary, Florida Public Utilities Company (FPUC). This 26.5-mile pipeline aims to support economic growth and provide affordable energy solutions to underserved communities in northeast Florida, improving access to clean natural gas.

Chesapeake Utilities Corporation (NYSE: CPK) has appointed Kelley Parmer as Assistant Vice President of Customer Care and Jason Bennett as Assistant Vice President of the newly-created Operation Services team. Parmer will enhance customer service functions while Bennett will focus on standardizing processes within the distribution business. Both leaders bring valuable industry experience, with Parmer joining from a role overseeing customer care and Bennett coming from Black Hills Energy, noted for substantial acquisition integrations.

Chesapeake Utilities Corporation (NYSE: CPK) declared a quarterly cash dividend of $0.44 per share on November 5, 2020, to be paid on January 5, 2021. Shareholders recorded by December 15, 2020 will receive this dividend. This marks 60 years of uninterrupted dividend payments, with the company consistently maintaining or increasing its annual dividend. Chesapeake operates in diversified energy sectors, including natural gas and electricity distribution.

Chesapeake Utilities (NYSE: CPK) reported a strong Q3 2020, with net income of $9.3 million ($0.56/share), up from $5.6 million ($0.34/share) in Q3 2019. Year-to-date net income reached $49.1 million ($2.97/share), a 14.7% increase.

Key drivers included Hurricane Michael regulatory settlement, pipeline expansion, and organic growth in natural gas distribution. However, earnings were negatively impacted by lower customer consumption due to weather and COVID-19, with an estimated $0.7 million impact in Q3 and $1.9 million year-to-date.

Chesapeake Utilities Corporation (NYSE: CPK) announced the acquisition of Western Natural Gas Company, completed on October 26, 2020. This strategic move allows Sharp Energy, Chesapeake's propane subsidiary, to expand its operations into Florida, enhancing its propane distribution footprint. Western Natural Gas has served approximately 4,000 customers in northeast Florida for over 80 years. The acquisition aligns with Sharp Energy's commitment to meeting customer demand and maintaining high service standards.

Chesapeake Utilities Corporation (NYSE: CPK) is addressing the financial challenges faced by customers due to the COVID-19 pandemic. The company encourages customers to establish payment arrangements and highlights available assistance programs. Key measures include suspending service disconnections, waiving late fees, and offering extended payment options. Chesapeake Utilities has donated $200,000 to community organizations and is actively providing support while ensuring customer safety by keeping walk-in offices closed. Assistance is available through various channels for customers needing help.

Chesapeake Utilities Corporation (NYSE: CPK) will host a conference call on November 5, 2020, at 4:00 p.m. ET to discuss its third quarter 2020 financial results. The earnings report will be released on November 4, 2020, after market close. Investors can participate by calling 877.224.1468. The company is involved in natural gas and electricity distribution, among other services. More information can be found on its website.

On September 24, 2020, Chesapeake Utilities Corporation (NYSE: CPK) announced that its subsidiary, Florida Public Utilities Company (FPUC), received approval from the Florida Public Service Commission for a settlement regarding cost recovery and rates linked to Hurricane Michael. An interim rate increase was previously approved in January 2020, with no financial impact to residential customers. Effective November 1, 2020, customer bills will decrease by approximately $2.05 per month. FPUC incurred around $67 million in restoration efforts after the hurricane, which significantly damaged its infrastructure.

Chesapeake Utilities Corporation (NYSE: CPK) has established an at-the-market equity offering program to sell up to $75 million in common stock shares. The company has partnered with several sales agents, including RBC Capital Markets and Wells Fargo Securities, for this initiative. Proceeds will be utilized for general corporate purposes such as capital expenditure financing, debt repayment, and subsidiary investments. The offering is made under the existing shelf registration statement filed with the SEC. This press release also contains forward-looking statements regarding the offering.