Chesapeake Utilities Corporation · NYSE:CPK
Chesapeake Utilities — Sidoti & Company Virtual Investor Conference March 2021
28 slides from Chesapeake Utilities's conference presentation, Mar 23, 2021
Slide 1: Chesapeake Utilities Corporation - Sidoti Virtual Investor Conference
Exhibit 99.1 Commitment Growth Leadership Safety Sustainability Solutions Driven By Energy Strength Chesapeake Utilities Corporation Team Sidoti & Company LLC Service Virtual Investor Conference March 24-25, 2021 Performance Community ValueExhibit 99.1 Commitment Growth Leadership Safety Sustainabil
Slide 2: Presenters
Presenters Beth Cooper Executive Vice President, CFO and Asst. Secretary Thomas Mahn Vice President and Treasurer 2Presenters Beth Cooper Executive Vice President, CFO and Asst. Secretary Thomas Mahn Vice President and Treasurer 2
Slide 3: 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 4: Business Overview
Business Overview Diversified Energy Delivery Business Natural Gas Transmission Delaware, Maryland, Pennsylvania, Florida Chesapeake Utilities Service Territories Natural Gas Distribution Delaware, Maryland, Florida 82% Electric Distribution Propane Florida Aspire Elkton Ohl and Boulden Propane Dist
Slide 5: Growth in Earnings Drives Dividend Growth
Growth in Earnings Drives Dividend Growth For Periods Ended December 31st *Diluted Earnings per Share Annualized Dividends $4.50 $4.26 $2.00 $3.96 $1.76 $4.00 $1.80 $3.55 $1.62 $3.45 $1.60 $3.50 $1.48 $1.40 $2.86 $1.30 $3.00 $2.72 $1.22 $1.15 $1.20 $2.50 $1.00 $2.00 $0.80 $1.50 $0.60 $1.00 $0.40 $0.
Slide 6: Return on Equity
Return on Equity Chesapeake ROE Consistently Exceeds 11.0% Return on Average Equity 14.0% 12.6% 12.1% 12.0% 11.7% 12.0% 11.3% 11.2% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2015 2016 2017 2018 2019 2020 6 * ROE based on bottom line net income.Return on Equity Chesapeake ROE Consistently Exceeds 11.0% Return o
Slide 7: Total Shareholder Return Increased
Total Shareholder Return Increased Performance is Driving Increased Value Average Annualized Shareholder Return For Periods Ending March 15, 2021 Achieved above 15 percent for all periods!! 49% 50% 40% 30% 30% 22% 19% 20% 17% 17% 16% 16% 16% 15% 14% 13% 12% 12% 12% 11% 11% 9% 8% 9% 8% 10% 8% 6% 6% 0
Slide 8: Market Capitalization Increased
As of December 31, Except for 3/19/2021 Stock Price $2,062 $1,890 $1,572 $1,332 $1,284 $1,092 $867 $725 $578 $436 $415 $395 $301 $215 Market Capitalization Increased Performance is Driving Increased Value $2,400 $118.11 $120 $2,200 $108.21 $2,000 $95.83 $100 $1,800 $81.30 $1,600 $78.55 $80 $1,400 $6
Slide 9: Financial Performance 2020
Driven by Energy. Delivering Energy. Our financial performance is driven by the Financial Performance 2020 entrepreneurial spirit of our employees as we consistently deliver safe, secure and reliable energy service. Cap Ex / Average Capitalization 17.7% Employees 947 EPS Growth (1) 13.2% Customers 2
Slide 10: 2020 Financial Performance Key Highlights
2020 Financial Performance Key Highlights Expansion projects, customer Acquisitions (Boulden, Hurricane Michael growth, and pipeline replacements Elkton and Western Natural regulatory proceeding Gas) added $5.3M in generated $15.5M in additional resulted in $10.9M gross margin incremental gross marg
Slide 11: 2020 Business Highlights
2020 Business Highlights Many Significant Accomplishments Across the Company • Invested $196M in capital expenditures that will drive our future earnings growth, including completion of several key pipeline projects • Responded to increased customer demand for natural gas in our services, recognizin
Slide 12: Looking Forward 2021-2025 Strategic Growth Initiatives
Chesapeake Utilities Looking Forward 2021 – 2025 Strategic Growth Initiatives Key 2021-2025 Strategic Initiatives Optimize the Renewable Natural earnings potential Gas (RNG) Pursue interstate Expand Marlin Gas in our existing Further expansion opportunities and and intrastate Services Virtual busine
Slide 13: Large Initiatives
Large Initiatives DELMARVA AND FLORIDA COMMUNITY GAS DISTRIBUTION SYSTEM ORGANIC GROWTH AND SYSTEM CONVERSIONS IMPROVEMENT PROJECTS PIPELINE EXPANSIONS CUSTOMER GRWOTH, AUTOGAS, ACQUISITIONS RNG COLLABORATIONS SAFETY TOWN INFRASTRUCTURE STATE OF THE ART MARLIN INVESTMENT TRAINING CENTER TRANSPORT (V
Slide 14: Renewable Natural Gas: Recycling Waste into Usable Fuel
RECYCLING WASTE INTO USABLE FUEL WILL DECREASE GHG EMISSIONS Renewable Natural Gas (RNG) can be mixed with traditional fossil-based natural gas, or hydrogen, and used in the same pipeline infrastructure and gas appliances. Renewable Natural Gas Gas is delivered to homes and businesses Animal waste a
Slide 15: CPK's Renewable Natural Gas Proposition
CPK’s Renewable Natural Gas Proposition Presents Multiple Investment Opportunities Transmission Pipeline Distribution Operations Marlin Gas Transport Operations LDC Customers Additional transportation Interstate pipeline Potential investment in gas Investment Opportunity equipment interconnects proc
Slide 16: Capital Investment Guidance
Capital Investment Guidance Continued Record Investment in Our Business Growth $1,000,000 Total $900,000 $1 billion Reach $1 billion $800,000 $250,000 $700,000 Total $600,000 $750 $677,722 million Reach $750 million $500,000 Dollars in Thousands Unless Otherwise Noted $400,000 $562.5 million $300,00
Slide 17: Diluted Earnings per Share Guidance
Diluted Earnings per Share Guidance Continuing Operations Strategic Capital Investments Continue to Drive Earnings Growth 8-Year CAGR EPS Growth 9.7% to 10.1% $6.25 $6.05 5-Year CAGR EPS Growth 10.2% - 11.1% $4.90 $4.70 $4.21 $3.72 $3.47 $2.89 * 2017* 2018 2019 2020 ---2025-- ---2022-- *2017 Adjuste
Slide 18: ESG Stewardship
ESG Stewardship § We take seriously our responsibility to be a good and trusted corporate citizen, and doing all we can to contribute to greater sustainability and societal advancement. § For more than 160 years, we have delivered affordable and sustainable energy solutions that respond to the evolv
Slide 19: ESG Stewardship
ESG Stewardship Key employee resource groups that foster Co-sponsor of the Black History Pledge of $100,000 for the a diverse and inclusive workplace Month campaign in Delaware and construction of a new YMCA Maryland community center in Delaware Kerosene, coal, oil and wood burning appliances and in
Slide 20: Investment Proposition
Investment Proposition Committed to Superior Performance We seek to identify and develop opportunities to drive our future earnings growth and increase shareholder value. § Capitalizing on new organic growth and operational Strong Foundation for Growth: efficiencies § Track Record § Investing in pip
Slide 21: Thank You
Commitment Growth Leadership Safety Sustainability Solutions Driven By Energy Strength Team Service Chesapeake Utilities Corporation Performance Thank You Community ValueCommitment Growth Leadership Safety Sustainability Solutions Driven By Energy Strength Team Service Chesapeake Utilities Corporati
Slide 22: Appendix: 2020 Financial Performance
Commitment Growth Leadership Safety Sustainability Solutions Driven By Energy Strength Appendix Team Service 2020 Financial Performance Performance Community ValueCommitment Growth Leadership Safety Sustainability Solutions Driven By Energy Strength Appendix Team Service 2020 Financial Performance P
Slide 23: Financial Summary
Financial Summary Income from Continuing Operations and GAAP Income For the periods ended December 31, 2020 and 2019 (in thousands except per share amounts) Fourth Quarter Annual (in thousands except per share data) 2020 2019 2020 2019 Operating Income $ 35,206 $ 29,641 $ 112,723 $ 106,285 Other Inc
Slide 24: Key Drivers of Our Performance
Key Drivers of Our Performance Key Variances for 2020 Compared to 2019 Earnings per share after-tax increased 13.2% or $0.49 to $4.21 from $3.72 • Gross Margin (Net) $19.4M $1.14 EPS after-tax • Depreciation and Amortization ($ 4.6M) ($0.27) EPS after-tax • Net Unusual items ($ 2.5M) ($0.15) EPS aft
Slide 25: Capital Structure Overview
Capital Structure Overview Strong Balance Sheet to Support Growth 12/31/2019 12/31/2020 Stockholders‘ equity $ 561,577 $ 697,085 Long-term debt, net of current maturities 440,168 508,499 Total permanent capitalization $ 1,001,745 $ 1,205,584 Current portion of long-term debt 45,600 13,600 Short-term
Slide 26: Capital Expenditures Forecast for 2021
Capital Expenditures Forecast for 2021 Forecast 2021 (dollars in thousands) Low High Regulated Energy: Natural gas distribution $ 79,000 $ 85,000 Natural gas transmission 55,000 60,000 Electric distribution 9,000 13,000 Total Regulated Energy 143,000 158,000 82% 79% Unregulated Energy: Propane distr
Slide 27: Key Expansion Projects
Key Expansion Projects Pipeline Growth and Margin Contribution Annual Gross Margin Project Capital Investment Fully In-Service Estimate West Palm Beach 2021 $24.6 million $5.2 million County Second Quarter Del-Mar Energy 2021 Fourth $49.3 million $6.7 million Pathway Quarter Auburndale Project $3.0
Slide 28: Major Projects and Initiatives
Major Projects and Initiatives $7,082 $27,234 $16,206 Annual Increases (000’s) Total Increases $50,522 28Major Projects and Initiatives $7,082 $27,234 $16,206 Annual Increases (000’s) Total Increases $50,522 28
Chesapeake Utilities — Sidoti & Company Virtual Investor Conference March 2021 on 6ix