Chesapeake Utilities Corporation · NYSE:CPK
Chesapeake Utilities — NYSE Energy and Utilities Investor Access Day 2020
28 slides from Chesapeake Utilities's conference presentation, Sep 16, 2020
Slide 1: NYSE Energy and Utilities Investor Access Day
Driven By NYSE Energy and Utilities Investor Access Day September 16, 2020 Commitment Growth Leadership Safety Sustainability Solutions Energy Strength Team Performance Service Community Value
Slide 2: Forward Looking Statements and Other Disclosures
Forward Looking Statements and Other Disclosures Safe Harbor Statement: Some of the Statements in this document concerning future Company performance will be forward-looking within the meanings of the securities laws. Actual results may materially differ from those discussed in these forward-looking
Slide 3: Business Overview
Business Overview Diversified Energy Delivery Business Natural Gas Transmission Delaware, Maryland, Pennsylvania, Florida Midstream Natural Gas Distribution Energy Delaware, Maryland, Florida 38% 81% Regulated Electric Distribution Florida Propane Distribution and AutoGas Delaware, Maryland, Pennsyl
Slide 4: Driven by Energy. Delivering Energy
Driven by Energy. Delivering Energy Our successful track record of performance is driven by the entrepreneurial spirit of our employees as we consistently deliver safe, secure, reliable and efficient service and energy solution that are environmentally and economically smart. Five Year Performance t
Slide 5: Commitment to Employees, Customers and Communities
Commitment to Employees, Customers and Communities Employees Premium pay to field employees through June Chrome books for children of employees to do their school work Social distancing protocols in effect along with personal protective equipment, where appropriate Employees working remotely as much
Slide 6: Second Quarter Overview
Second Quarter Overview Earnings Per Share Second Quarter Year-to-Date 2020 2019 2020 2019 $0.66 $0.50 $2.42 $ 2.25 Strong performance for the first half of 2020 : Continued growth in the Company’s businesses Addition of the Boulden acquisition Retail propane margins per gallon Expense management Ga
Slide 7: Key Business Factors: COVID-19 Impact
Key Business Factors: COVID–19 Impact Chesapeake Utilities is an “essential business” to our customers and communities. As such, our operational activities and construction projects continue; all the while, we are adhering to safety guidelines and social distancing. The Company’s pandemic response p
Slide 8: Capital Expenditures Forecast Estimate for 2020
Capital Expenditures Forecast Estimate for 2020 Forecast for Fiscal 2020 (dollars in thousands) Low High Regulated Energy: Natural gas distribution $75,000 $80,000 Natural gas transmission 70,000 80,000 Electric distribution 5,000 7,000 Total Regulated Energy 150,000 167,000 Unregulated Energy: Prop
Slide 9: Recent and Current System Expansions
Recent and Current System Expansions Natural Gas Services to New Territories Recently Completed ESNG 2017 System Expansion Project (Delmarva Peninsula Northwest Florida Expansion Auburndale Expansion (FL) Callahan Expansion (FL) In Service June 2020 Elkton LDC Natural Gas Acquisition Projects Underw
Slide 10: Major Projects and Initiatives Gross Margin Contributions
Major Projects and Initiatives Gross Margin Contributions
Slide 11: Elkton Gas Company Summary of Transaction
Elkton Gas Company Summary of Transaction
Slide 12: Renewable Natural Gas
Renewable Natural GasWaste products are converted to Biogas in an anaerobic digester. The raw Biogas does not meet gas pipeline quality standards. An upgrading (clean-up) process, similar to the gas processing CPK currently operates in Ohio, is required to produce Biomethane, typically referred to a
Slide 13: CPK's Renewable Natural Gas Proposition Presents Multiple Investment Opportunities
CPK’s Renewable Natural Gas Proposition Presents Multiple Investment Opportunities Investment Opportunity Regulatory Actions Long-term Value Operations Transmission Operations Marlin Potential investment in gas processing equipment which we will seek to include in rate base Interstate pipeline inter
Slide 14: Key Regulatory Initiatives
Key Regulatory Initiatives Hurricane Michael Limited Proceeding October 2018 Hurricane Michael –Northwest Florida August 2019 FPU filed limited proceeding with Florida PSC Fourth Quarter 2019 FPU and the Office of Public Counsel filed a request to approve interim rates FPU continues to work with the
Slide 15: Capital Capacity to Support Future Growth
Capital Capacity to Support Future Growth **Short-term Debt Includes Current Portion of Long-Term Debt Green Line Shows 50% Equity to Total Capital Target Available Financing Capacity Renewing $370 million bank lines of credit through October 2020 Anticipate terminating unused $95 million incrementa
Slide 16: ESG Stewardship
ESG Stewardship We remain steadfast in our commitment to environmental, social and governance stewardship. The key to our success is our strong culture that fully engages all of our team members. We are a responsible company that promotes safety, integrity, accountability and reliability Our diverse
Slide 17: ESG At Our Core
ESG At Our Core Women in Utilities Webinar – Be Extraordinary Everyday by Demonstrating Diversity.Delivering Natural Gas To Somerset County, Maryland, To Support Environmentally Conscious Economic Growth The Somerset County Expansion Project will deliver natural gas service to Somerset County, Maryl
Slide 18: Driving Our Actions: Focus on Shareholder Value and Growth
Driving Our Actions Focus on Shareholder Value and Growth High standards of safety and operational performance. Optimize growth opportunities within rate, customer demand and market constraints Maintain a regulated/ unregulated business mix designed to produce better than utility returns and an acce
Slide 19: Capital Investment Guidance
Capital Investment Guidance Continued Record Investment in Our Business to Drive Growth *We will continue to update this forecast as we move through the year, including any capital deployment delays resulting from COVID-19. Management reaffirms its five year capital expenditure guidance of $750 mill
Slide 20: Reaffirm Current Earnings Guidance
Reaffirm Current Earnings Guidance 2022 EPS Target Range of $4.70 - $4.90 On February 26, 2020, we updated our EPS guidance based on our current strategic plan planned investments and growth prospects. We are continuing to monitor the COVID-19 impacts and will provide updates, as necessary, to our E
Slide 21: Closing Remarks
Chesapeake Utilities Closing Remarks Strong earnings for the second quarter despite the uncertain challenges of the COVID-19 pandemic. Engaged in expense management across the Company and operational efficiency in this new business normal situation. Excited about our recently completed Elkton Gas ac
Slide 22: Thank You!
Thank You! Beth Cooper Executive Vice President, CFO and Asst. Secretary bcooper@chpk.com Joseph D. Steinmetz Vice President and Controller jsteinmetz@chpk.com Vice President and Treasurer tmahn@chpk.com
Slide 23: Appendix: Long-Term Track Record
Appendix Long-Term Track Record Performance Metrics Driving Shareholder Return
Slide 24: Continuing to Build for the Future
Continuing to Build for the Future Organic Growth Opportunities Supplemented with Targeted Acquisitions Historical Cap Ex & Acquisitions In Millions
Slide 25: Growth in Earnings per Share
Growth in Earnings per Share 13 Years of Record Earnings
Slide 26: Strong Track Record of Dividend Growth
Strong Track Record of Dividend Growth Driven by Earnings Growth On May 7, 2020, the Board of Directors increased the annualized dividend to $1.76 per share, an increase of 8.6%. The $0.14 per share increase aligns our five year EPS growth rate of 9.9% with our five year dividend growth rate of 8.9%
Slide 27: Solid Track Record of Higher Return on Equity
Solid Track Record of Higher Return on Equity (ROE) Consistently Exceeding the Peer Median and 75th Percentile * Normal Comparative Peer Group
Slide 28: Key Performance Metrics
Key Performance Metrics Financial Discipline Driving Growth and Performance CPK is in the top quartile for 20/24 metrics (83%) and above the median for 24/24 metrics (100%).
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