Chesapeake Utilities Corporation · NYSE:CPK
Chesapeake Utilities — Merger or Acquisition (September 2023)
18 slides from Chesapeake Utilities's merger presentation, Sep 27, 2023
Slide 1: Acquisition of Florida City Gas
CHESAPEAKE UTILITIES CORPORATION Acquisition of Florida City Gas September 27, 2023 Exhibit 99.2
Slide 2: Forward-Looking Statements
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. One can typically identi
Slide 3: Agreement to acquire Florida City Gas for $923 million
Chesapeake Utilities reached definitive agreement to acquire Florida City Gas (FCG) for $923 million. Immediately more than doubles CPK’s natural gas business in Florida, with additional future growth opportunities across CPK’s five growth platforms Supports and extends EPS growth rate of 8% or grea
Slide 4: Compelling Transaction Rationale
Compelling Transaction Rationale Scale benefits from expected increases in regulated utility customers and net plant by 50% and 30%, respectively Efficiencies expected due to complementary operations CPK has core expertise across all facets of natural gas operations and strong relationships with reg
Slide 5: Transaction Consistent with our Drivers for Superior Performance
Transaction Consistent with our Drivers for Superior Performance TRACK RECORD ENERGIZED TEAM FINANCIAL DISCIPLINE PLATFORMS FOR GROWTH Proven track record of natural gas distribution M&A transactions Florida Public Utilities in 2009, Eastern Shore Gas (Sandpiper Energy) in 2013, Elkton Gas in 2020 –
Slide 6: Florida City Gas: Attractive Rate Base in High Growth Market
Serves ~120,000 natural gas customers over 8 counties in Florida (Miami-Dade, Broward, Brevard, Palm Beach, Hendry, Martin, St. Lucie and Indian River) 3,800 miles of distribution main and 80 miles of transmission pipe Recently completed LNG facility in Homestead, Florida with 270,000 gallons of sto
Slide 7: Combined Florida Natural Gas Distribution Presence
Combined Florida Natural Gas Distribution Presence The Transaction Will More Than Double CPK’s Natural Gas Distribution Presence In Florida Combined Florida Natural Gas Distribution Approved Rate Base (in millions) $454 $487 $941 Miles of Pipe 3,043 3,880 6,923 Counties Served 26 8 31 (3 counties ov
Slide 8: Rapid Growth in Florida Expected to Continue
Rapid Growth in Florida Expected to Continue Florida has a very strong GDP growth history and projected population growth suggests a continuation of that trend Forecasted Florida Population Growth Florida’s Strong Growth Advantage 5.7% CAGR Florida’s GDP growth outpaces the rest of the U.S., with an
Slide 9: Complementary Operations and Service Territories
Complementary Operations and Service Territories Acquisition Positions CPK to Capture Additional Growth Opportunities Within Florida Beyond Existing CPK Footprint Transaction Complementary to CPK’s Natural Gas Portfolio CPK has core experience and expertise in all facets of natural gas operations, r
Slide 10: Organic Growth Opportunities
Organic Growth: FCG continued organic utility growth, with contracted residential projects representing more than 12,000 homes Approved cost recovery: ~$105M SAFE program approved and in process, with ~$205.5M proposal for continuation of the program through 2035 currently before the FL PSC Gas Tran
Slide 11: Familiar Regulatory and Political Environment
Familiar Regulatory and Political Environment FPUC remains committed to its strong relationships throughout Florida with regulators, legislators, communities and customers Florida Has a Constructive and Supportive Regulatory Environment and is One of Four States Rated Above Average/2 or higher By S&
Slide 12: CPK's Proven Track Record of Growth in Florida
CPK’s Proven Track Record of Growth in Florida Total Investment Growth Net Income Growth CPK Portfolio of Businesses in Florida 13.8% Organic CAGR 11.0% Organic CAGR
Slide 13: CPK's Proven Track Record of Growth in Florida
CPK’s Proven Track Record of Growth in Florida From a $125 million investment in 2009, the CPK-FPU merger paved the way for not only natural gas distribution expansion, but also for related new business operations in Florida Florida Investment – 2022 compared to 2010 ($ millions) * CPK’s first dairy
Slide 14: Capital Expenditure Guidance Update
Capital Expenditure Guidance Update $1.5-$1.8 Billion 5-year Capital Investment Plan (2024-2028), a ~65% Increase from Previous Plan 2021-2022 $369M 2024-2028 $1.5B-$1.8B 2023-2025 $531M-$731M New 5-year plan: $1.5B to $1.8B (2024-2028) Prior 5-year plan: $900M to $1.1B (2021-2025) ~65% Increase Key
Slide 15: Track Record of Growing Capital Expenditures
Track Record of Growing Capital Expenditures Amounts in chart reflected in millions. Long Track Record of Successfully Growing Capital Investment Plan ~$50M/ yr avg. ~$75-$100M/yr avg. ~$150-$250M/yr avg. ~$300-$360M/yr run rate ($1.5-$1.8 bn 5-yr plan) FCG
Slide 16: Extending Earnings Growth Projections
Extending Earnings Growth Projections CPK Guidance – Low Range CPK Guidance – High Range CPK Guidance – Low Range CPK Guidance – High Range Expected CAGR of 8.5% Earnings Per Share Growth Guidance Extended through 2028* * Diluted Earnings Per Share Growth from Continuing Operations Expected CAGR of
Slide 17: Capital Structure and Financing Plan
Capital Structure and Financing Plan Maintaining a Strong Balance Sheet is a Priority 1 The expected financing plan is subject to market conditions. These statements do not constitute an offer to sell securities. Any such offering will be conducted pursuant to applicable law. CPK Capital Structure a
Slide 18: Enhances CPK's Investment Proposition
Enhances CPK’s Investment Proposition Transaction is a strong strategic fit; consistent with Chesapeake's historical M&A approach and demonstrated track record Supports and extends EPS growth rate of 8% or greater; increases five-year capital investment plan ~65% More than doubles Chesapeake's opera
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