Chesapeake Utilities Corporation · NYSE:CPK
Chesapeake Utilities — Q1 2019 Earnings Presentation
20 slides from Chesapeake Utilities's earnings presentation, May 13, 2019
Slide 1: First Quarter 2019 Earnings Conference Call
First Quarter 2019 Earnings Conference Call May 10, 2019 Exhibit 99.1
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: Chesapeake Utilities – First Quarter 2019 Highlights
Chesapeake Utilities – First Quarter 2019 Highlights 3 Superior Shareholder Return Driven by Consistent Above Average Earnings and Dividend Growth Greater than 16% total shareholder return for 1, 3, 5, 10 & 20 years ended April 30, 2019 20% growth in adjusted earnings per share for first quarter 201
Slide 4: Reconciliation of GAAP to Adjusted Earnings
Reconciliation of GAAP to Adjusted Earnings First Quarter 2019 2019 is off to a great start (whether measured from a GAAP or non-GAAP basis) 4
Slide 5: Reconciliation of First Quarter Results Key Variances 2019 versus 2018
Reconciliation of First Quarter Results Key Variances 2019 versus 2018 5 Increase in Margin: Eastern Shore and Peninsula Pipeline expansion projects Acquisitions of Marlin and Ohl assets Organic growth in natural gas distribution and Aspire Regulatory initiatives in Florida Change in Operating Expen
Slide 6: Dividend Growth Continues
Dividend Growth Continues Ten Years of Above Average Growth Dividend Increased 9.5% on May 8, 2019 Quarterly Dividend Rate - $0.405 per share Annualized Dividend Rate - $1.62 per share Annualized Increase - $0.14 per share This year’s increase reflects our team’s success in delivering superior earni
Slide 7: Capital Capacity to Support Future Growth
Capital Capacity to Support Future Growth Total Capitalization has More Than Doubled in Five Years Equity/Permanent Capitalization 65.5% 70.6% 76.5% 71.1% 62.1% 65.5% Equity/Total Capitalization 54.0% 51.9% 55.4% 51.5% 45.4% 46.2% $556,148 $689,692 $805,010 $944,079 $1,177,559 Target Equity to Total
Slide 8: Continuing to Build for the Future
Continuing to Build for the Future 2019 Budgeted Capital Expenditures 81% Regulated Energy 13% Unregulated Energy 6% Corporate and other Businesses 8 *Excluding Hurricane Michael restoration cost which will be allocated between capital expenditures and storm reserve. First Quarter 2019 Capital Expen
Slide 9: Major Projects and Initiatives
Major Projects and Initiatives Increasing Shareholder Value by Continuously Seeking and Developing Projects and Initiatives 9
Slide 10: Expect Growth Well Above Industry Average
Chesapeake Utilities Corporation Expect Growth Well Above Industry Average Earnings per Share 10 Capital Expenditures We target EPS Growth to be 7.75% to 9.5% over 5 years * * 2017 Adjusted Non-GAAP EPS of $2.89 (Excludes TCJA) Earnings per Share 2019 - 2022
Slide 11: Natural Gas Expansion Projects Eastern Shore and Florida Transmission
Natural Gas Expansion Projects Eastern Shore and Florida Transmission 24 9 11 Expansion Projects Completion Date Investment Amount (000’s) 2019 Annual Margin (000’s) 2017 Eastern Shore System Expansion (1) Q2 - 2019 $117,000 $16,183 Northwest Florida Expansion Q2 - 2018 $44,300 $ 6,500 Western Palm
Slide 12: Del-Mar Energy Pathway Project Under Development
Del-Mar Energy Pathway Project Under Development Strategic Growth Initiative 12 Maximize Organic Growth in Existing Geographic Footprint Expand into New Geographic Areas Develop Additional Growth Across Business Units The proposed facilities associated with the Project will provide the transportatio
Slide 13: Marlin Gas Services Capabilities
Marlin Gas Services Capabilities Operates a large fleet of 36 tube trailers dedicated to transportation of compressed natural gas (“CNG”) Nationwide service with primary focus on Gulf Coast Over 7 billion cubic feet of natural gas transported Provides temporary and emergency natural gas services Pla
Slide 14: Accretive Opportunistic Acquisitions Continue to Add Gross Margin
Accretive Opportunistic Acquisitions Continue to Add Gross Margin Annually 24 9 14 Acquisition Incremental Margin 1Q-19 Date Acquired Accretive Description Marlin $2.3 MM 12/2018 1st Year Mobile CNG utility & pipeline solutions Ohl Propane $0.5 MM 12/2018 1st Year Retail propane distribution Aspire
Slide 15: Significant Regulatory Initiatives First Quarter 2019 Developments
Significant Regulatory Initiatives First Quarter 2019 Developments 24 9 15 Florida - FPU TCJA – Natural Gas (non-GRIP) (CFG and FPU) Company retains benefit: $1.3MM reserve reversal in Q1; annual benefit = $1.9MM TCJA – Natural Gas (GRIP) Customer rates were adjusted through annual rate mechanisms w
Slide 16: Commitment to Sustainability and ESG
Chesapeake Utilities Commitment to Sustainability and ESG 16 We are committed to providing solutions for more efficient energy use and conducting business with environmental responsibility to yield carbon footprint benefits for our customers and communities. We are helping reduce transportation emis
Slide 17: Corporate Culture and Corporate Governance
Corporate Culture Corporate Governance 2018 Best North American Utility for Corporate Governance Connecting with our Customers and Communities - Chesapeake Utilities recognizes that customers expect safe, efficient and reliable service , as well as providing enhanced business connection options, mor
Slide 18: Total Shareholder Return (TSR) Comparison
Total Shareholder Return (TSR) Comparison to Broader Market – S&P 500Companies and Peer Group Comparison 18 Source: Bloomberg Chesapeake is driven to increase shareholder value…. Our compound annual return has exceeded 16% for all periods shown through April 30, 2019. Chesapeake exceeded the peer gr
Slide 19: A Strong Foundation for Growth
A Strong Foundation for Growth Chesapeake Utilities’ solid track record, driven by our strong aspiration for growth and commitment to care for our employees, customers, investors and communities we serve. Chesapeake Utilities is well positioned to continue to build on its strong foundation and deliv
Slide 20: Thank You!
Thank You! Jeff Householder President & CEO jhouseholder@chpk.com Beth Cooper Executive Vice President, CFO and Asst. Secretary bcooper@chpk.com Any Questions? Jim Moriarty Executive Vice President, General Counsel and Corporate Secretary jmoriarty@chpk.com