Welcome to our dedicated page for Chesapeake Utilities news (Ticker: CPK), a resource for investors and traders seeking the latest updates and insights on Chesapeake Utilities stock.
Chesapeake Utilities Corporation (NYSE: CPK), headquartered in Dover, Delaware, is a diversified energy delivery company engaged in both regulated and unregulated businesses. The company operates through multiple divisions and subsidiaries, providing a range of energy-related services including natural gas distribution, transmission, gathering and processing, propane gas distribution, marketing, and electricity distribution.
Chesapeake Utilities serves approximately 226,000 customers across various regions, including the Delmarva Peninsula, Florida, Pennsylvania, and Ohio. The company is structured into two main segments: Regulated Energy and Unregulated Energy, ensuring comprehensive energy solutions for residential, commercial, and industrial customers.
Recent Achievements and Projects:
- Acquisition of Florida City Gas (FCG): Chesapeake Utilities announced the acquisition of FCG from NextEra Energy for $923 million. This strategic investment is expected to expand the company's customer base by approximately 120,000 residential and commercial natural gas customers across eight counties in Florida.
- Worcester Resiliency Upgrade: An $80 million investment in a liquefied natural gas storage facility in Maryland to enhance energy supply and reliability during peak winter months.
- Pipeline Expansions: Multiple projects including the Southern Expansion, Beachside Pipeline Expansion, and North Ocean City Connector to increase natural gas transmission capacity and support growth in Florida and Delaware.
- Sustainability Initiatives: Chesapeake Utilities is committed to sustainability, focusing on reducing environmental impact through projects like the Full Circle Dairy RNG facility and the Port Wentworth CNG station.
The company has consistently delivered strong financial performance, with notable growth in adjusted net income and earnings per share (EPS). In 2023, Chesapeake Utilities reported an adjusted net income of $97.8 million, an increase from $89.8 million in 2022, with EPS growing to $5.31 from $5.04 per share.
Financial Outlook:
Chesapeake Utilities has reaffirmed its financial guidance, expecting to achieve EPS in the range of $6.15 to $6.35 for 2025, and $7.75 to $8.00 per share for 2028. The company's capital investment forecast ranges from $1.5 billion to $1.8 billion over the next five years, driven by growth initiatives and strategic acquisitions.
The company's commitment to delivering sustainable energy solutions, coupled with its strategic growth initiatives, positions Chesapeake Utilities favorably in the energy sector. They continue to focus on expanding their service footprint, enhancing infrastructure, and maintaining a robust financial performance to drive shareholder value.
Chesapeake Utilities announced the initial injections of renewable natural gas (RNG) at its Radio Avenue injection point in Yulee, Florida.
This milestone comes from its RNG facility at Full Circle Dairy in Madison County, operated by FPU Renewables, under Florida Public Utilities Company, both subsidiaries of Chesapeake Utilities.
In its first month, the facility captured and transported approximately 4,700 dekatherms of RNG. The project, which began in February 2023, represents a $22 million investment and aims to produce 100,000 dekatherms annually.
The facility captures methane from dairy manure, reducing greenhouse gases significantly, equivalent to removing over 6,000 gasoline-powered vehicles or the energy consumption of 3,500 homes annually.
Chesapeake Utilities (NYSE: CPK) has been named Best for Corporate Governance in the United States by World Finance, an international publication by World News Media This is the second time the company has received this prestigious award, which recognizes its commitment to integrity, transparency, and accountability. The award underscores the leadership of the Board of Directors, the guidance of the management team, and the dedication of the employees. Jeff Householder, the company's CEO, emphasized the importance of leading by example in an evolving market. Jim Moriarty, the company's executive VP, highlighted that corporate governance is deeply embedded in the organization's framework. Chesapeake Utilities has previously received various accolades, such as Best Corporate Governance among North American Utilities by Ethical Boardroom and Governance Team of the Year by Governance Intelligence Magazine.
Chesapeake Utilities reported strong financial results for the first quarter of 2024, with an EPS of $2.07 and adjusted EPS of $2.10, showing a three percent increase year-over-year. The company saw adjusted gross margin growth of $35.0 million, driven by contributions from Florida City Gas (FCG), natural gas organic growth, pipeline expansion projects, and regulatory initiatives. Despite warmer temperatures impacting operating income, net income for Q1 2024 was $46.2 million, up from $36.3 million in Q1 2023.
Chesapeake Utilities (CPK) announced an 8.5% increase in its quarterly cash dividend, raising it from $0.59 to $0.64 per share. The annualized dividend rises from $2.36 to $2.56 per share, reflecting the Board of Directors' confidence in the company's growth strategy. The dividend will be payable on July 5, 2024, to shareholders of record as of June 14, 2024.
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