Chesapeake Utilities Corporation · NYSE:CPK
Chesapeake Utilities — Investor Day (March 2025)
40 slides from Chesapeake Utilities's investor day presentation, Mar 13, 2025
Slide 1: March 13, 2025
MARCH 13, 2025 UTILITIESH#CORPORATION
Slide 2: Safety Moment
Director of Ohio Operations Kyle Moore, Safety Moment “ . AV HOLSSANISZ02_ fA NOLWOdYOD SANLITIIN SWadWS3HO oN . <= ~
Slide 3: Corporate Strategy and Growth
Corporate Strategy and Growth Jeff Jeff Will Chris Householder Sylvester Haffecke Redd Chair of the Board, CEO Senior Vice President and Assistant Vice President, Assistant Vice President, and President Chief Operating Officer Florida Operations Northern Operations We have a clear path to get to whe
Slide 4: Our Fundamental Growth Strategy
Our Fundamental Growth Strategy CHESAPEAK: > UTILITIESMCORPORATION Earnings & Dividend Growth to Drive Increased Shareholder Value wow Ww WwW e@ CORPORATION. yf Prudently Proactively Continually deploy manage execute on investment regulatory business capital agenda transformation < é Fe 3 4 Foundati
Slide 5: Strategic Growth Plan: 2025 - 2028
Strategic Growth Plan: 2025 - 2028 Delivering on the three pillars of our growth strategy oO Ensuring the team is highly-engaged in “reaching new heights” S CORPORATION: Wf 2025 Financing strategy to support growth and stability Targeting continued top-quartile performance ~~ ee SESS> © CHESAPEAKE I
Slide 6: CPK: Strategic Growth Plan for 2025 - 2028
CPkK: Strategic Growth Plan for 2025 - 2028 Delivering on the three pillars of our growth strategy * 2024 - 2028 CapEx Guidance: 1.5B - $1.8B and 2025-2028 EPS CAGR of 8% Prudently * 2025 CapEx & EPS Guidance: $325M - $375M and $6.15-$6.35/share mone + 12 transmission and storage projects under cons
Slide 7: CPK: Strategic Growth Plan for 2025 - 2028
CPkK: Strategic Growth Plan for 2025 - 2028 Ensuring the team is highly-engaged in “reaching new heights” 30 leaders in the room today, including 6 recently promoted Assistant Vice Presidents on panels Significant industry and company-specific experience and subject-matter expertise i] = < ry o a &
Slide 8: Financing strategy supports growth and stability
CPK: Strategic Growth Plan for 2025 - 2028 Financing strategy supports growth and stability Operational Drivers Financial Parameters Growth Capital Target Capital Structure: 50% Debt / 50% Equity Regulatory Business | Maintain Investment Grade Agenda Transformation Credit Rating eee ee 2025 - 2028 F
Slide 9: Targeting continued top-quartile performance
CPK: Strategic Growth Plan for 2025 - 2028 Targeting continued top-quartile performance Average Long-Term EPS Growth Relative to Peers + 2025 CapEx: $325M - $375M + 5-Yr CapEx: $1.5B - $1.8B * Robust project pipeline 8% 2025 EPS GUIDANCE $6.15 - $6.35 2028 EPS GUIDANCE $7.75 - $8.80 Peer Companies
Slide 10: Investing in attractive service areas with unparalleled growth
> & a be oO 1 a i > ME a 3 Zz oO = q 2 o & & fons ot 2 a e taf = 5 w 4 Ke a a Ka a rt ft & 10 CPkK: Strategic Growth Plan for 2025 - 2028 Investing in attractive service areas with unparalleled growth DELMARVA Top-Quartile Growth’ 4.0% residential growth 1.6% commercial growth ~4,000 new customers A
Slide 11: A Closer Look: Attractive Service Areas
S INVESTOR DAY CORPORATION. ff 20 2 ws E i i 5 wy z = a 2 a ry = fs) delaware “Delaware is growing. The First State has 6th biggest per capita population bump in US.” Cape Gazette nse eo cme MS “Not only seniors are moving to Sussex County, but also a large number of young families. This migration i
Slide 12: Multi-Faceted Growth Capital
Multi-Faceted Growth Capital ss % 4 a4 o “C 5 q 3 ME a 3 1z 8 ¢ 5 é o i iS Oo 3 * 38, e eS 5 y ¥ = FS # & a g ¥ 5 12 * 10 major capital projects under GUARD & SAFE Programs Soe each, including Worcester F * $460M investment over 10 years Resiliency Upgrade LNG storage an . . Miami Inner Loop expansi
Slide 13: Consistent New Customer Growth
Consistent New Customer Growth Full"Year 2024 vs Full-Year 2023 Potential New Home Construction Drives Residential & Commercial Growth Residential 4.0% Commercial 0, cindustris| a 1.6% Residential 3.9% os & a Commercial rs 9 1.2% } Florida | Delmarva & Industrial Projec “eri Q4 2024 vs Q4 2023 -40 -
Slide 14: Significant Growth in Delmarva
Significant Growth in Delmarva % & o e 8 9 2 5 é 5 2 & oe 2 a8, 4 e 5 ¥ Fs # & a 4 5 14
Slide 15: Delmarva: High Growth Counties
Delmarva: High Growth Counties % a x o “e t z 8 2 = g & o 8 & oo 2 ry E 4 iB 5 w ¥ = 2 < a Fe 5 15
Slide 16: Significant Growth in Florida
Significant Growth in Florida i] = < e o a & ioe a CHESAPEAKE Legend —Transmission Legend _ Distribution —Transmission County Distribution County — << SSs>
Slide 17: Florida: High Growth Counties
Florida: High Growth Counties 2 = < e 5 & toa os 2 i i 5 wy z = fn 2 a ri = 5 7 ~~ > Legend —— Transmission Pipe Distribution Pipe Municipalities
Slide 18: Prudent Capital Deployment Pillar Panel
3 2025 INVESTOR DAY PILLAR PANEL 1 Prudent Capital Deployment Kevin Cathy Solomon Justin Webber Alt McCloskey Stankiewicz Senior Vice President and Assistant Vice President, Assistant Vice President, Director, Marlin Operations Chief Development Officer Corporate Finance Operations Services & Busine
Slide 19: Organic Growth in Delmarva & Florida
Organic Growth in Delmarva & Florida a a acy ms Total Adj. Gross Margin ($M) % roject Name n-Service a Capex | 2024A | 2025E | 2026E | Zz Beachside Expansion In-Service Q2 2023 ~$11IM $2.4 $2.4 $2.4 8 | 2 Lake Wales In-Service Q22023 -$2M 0.5 05 05 + | 3 St.Cloud/Twin Lakes In-Service @32023 -$4M 06
Slide 20: WRU Project Approved and On Schedule
WRU Project Approved and On Schedule ESNG LNG Storage project designed to meet critical energy service to customers during the peak winter heating season ¢ $80 million planned LNG storage facility in Bishopville, MD ¢ Project consists of five low-profile horizontal storage tanks allowing for up to 5
Slide 21: Proactive Regulatory Strategy Pillar Panel
3 2025 INVESTOR DAY PILLAR PANEL 2 Proactive Regulatory Strategy Lindsay Assistant Vice President and Assistant Vice President, Vice President, Associate Associate General Counsel Regulatory Affairs Governmental and General Counsel Regulatory Affairs We promote and support growth through proactive,
Slide 22: Active Regulatory Agenda
TOR DAY 2025 INVES => 8 Zz 2, = < e a ay ta fon OF a ry e eS = 5 w 4 < my a < Pa rr FS is} Active Regulatory Agenda Maryland Rate Case Delaware Rate Case FPU Electric Rate Case FCG Depreciation Study 9722 24-0906 20240099 20250035 August 2024: $2.6M rate increase approved November 2024: Filed Phase
Slide 23: Continuous Business Transformation Pillar Panel
3 2025 INVESTOR DAY PILLAR PANEL 3 Continuous Business Transformation “552 = William Andrena Puru Kim Hughston Burd Buddha Estrada Senior Vice President & Assistant Vice President, Assistant Vice President, Assistant Vice President, Chief Human Resources Risk Management Enterprise Applications Custo
Slide 24: Transforming Safety Culture with SDMS
Transforming Safety Culture with SDMS NEAR MISS EASTERN SHORE” = HAZARD ID DEFINITIONS sre wes soy otal nes tp het ore: a lower er oye gap sober tet HAZARD — Sic ce atten wih poled tr ham n toms af Puy Treats, dans m rapery, arige lo woth and erabcament oY ‘ne deinen vat oy reir are codes Repos by p
Slide 25: Core Business Applications
KEY COMPONENTS OF TECHNOLOGY ROADMAP 2025 - 2028 FY24 FY25 FY26 FY27 FY28 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1CX FCG Implementation, Customer Portal, BCA 2.0 1CX FCG Phase Day 2 Enhancements - (Multi-Release) Core Business Applications 1CX/ERP Enterprise Business Intelligenc
Slide 26: Financial Performance & Strategy Panel
3 2025 INVESTOR DAY PANEL 4 Financial Performance & Strategy - . Beth Mike Noah Lucia Cooper Galtman Russell Dempsey Executive Vice President, Senior Vice President and Assistant Vice President Head of Chief Financial Officer, Chief Accounting Officer and Assistant Treasurer Investor Relations Treas
Slide 27: Upgrading Our Technology Platform to Support Growth
> % a x o “e % t Zz s 2 iS g & o 8 & Oo 8 2 ry E 4 iB 5 w ¥ = a 2 a a Fe fs 27 Human Resources Finance & Controls ERP Implementation Utilizes CPK’s Three Growth Pillars Field Service Management Customer Experience ERP Transformation Vision Procurement & Supply Chain Asset Management Upgrading Our Te
Slide 28: Total Assets: $3.6B
Total Assets: $3.6B Adj. EPS: $5.39 ROE 9.1% Adj. Net Income: $121.5M Annualized DPS: $2.56 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 29: Track Record Drives Market-Leading Returns
Track Record Drives Market-Leading Returns Total Shareholder Return: 20 Years Ending 12/31/2024 g 1250% Bc +1072% 2 1000% cPK 8 o: 2 750% E +618% ri S&P 500 Z & 500% +500% § Dow Jones Utility Index 250% 0%
Slide 30: Top Quartile Performance
Top Quartile Performance Relative to the Performance Peer Group 1-Year 2 100% > | @@ e oe on) |\oon a 8 e ee e0e © 5-Year i | 75% > “ . . _ 5 75% 5 = a 2 3 50% > y s Fs 5 25% > 30 -—= ac c ° ar [4 £9 oO o> ~ P=) £9 oO es 3 ce 2 Qe) |e sR S ~ 2 a Eig Oo ec ~ WS e x a gu wn = 9 >a a or wi a a cS =z >
Slide 31: 5-Year Capex Guidance is On-Track and Achievable
5-Year Capex Guidance is On-Track and Achievable ~$1.4 billion of identified capital projects support our 5-year CapEx guidance of $1.5 - $1.8 billion | Segment | 5-Year Guidance Identified CapEx 5-Year Spend $625M $600 - $645M 80M fe) 2m >70% $435 - $590M 36M capital spend 42M with existing 40M reg
Slide 32: Initiating 2025 Capital Expenditure Guidance
Initiating 2025 Capital Expenditure Guidance of $325M - $375M 2025 Capital Investment Target Ranges 2025 Capital Project Highlights somes PED) ED; cuard/ sare /spp / capital % a x $ “2 t z 8 2 = g & o 8 & oa “2 ry E 4 iB 5 w ¥ = 2 < a Fe 5 wg ge Surcharge Natural Gas Distribution $135 $155 Infrastru
Slide 33: 2025 EPS Guidance Indicates 14-16% Growth
2025 EPS Guidance Indicates 14-16% Growth Adjusted Diluted Earnings Per Share! +14% - 18% 1 $7.75 | $6.35 ; $5.39 $5.04 $5.31 $4.73 $4.21 sar 8872 ; Adjus'
Slide 34: 50% Target Equity to Capitalization
50% Target Equity to Capitalization YE 2025
Slide 35: Three Decades of Dividend Growth
Three Decades of Dividend Growth Dividend Increases in 29 of the last 31 Years - Since 1994 64 Consecutive Years of Dividend Payments - Since 1961 21 Consecutive Years of Dividend Increases - Since 2004 TOR DAY Increase of 8.5% 2025 INVES $2.56 $2.36 $2.14 $1.92 $1.76 $1.62 $1.48 $1.32 $1.22 $1.15 $
Slide 36: Credit Facility Capacity
364-Day Revolver 5-Year Revolver Total Capacit 364-Day Revolver 5-Year Revolver Total Capacity Rating 1 PNC $55,600,000 $44,400,000 364-Day $100,000,000 Revolver 1 PNC $55,600,000 $44,400,000 $100,000,000 A 1 364-Day Revolver Citizens 55,600,000 PNC 44,400,000 100,000,000 $55,600,000 Citizens 55,600
Slide 37: Financial Profile Based on Fitch Rating
Financial Profile Based on Fitch Rating g CPK Senior CPK Issuer CPK’s Credit Ratings “ec Notes Default R FFO 5 Leverage 3.5x 4.0x 4.5x 5.0x 5.5x & FFO Interest s Coverage 5.5x 5.2x 4.8x 4.5x 4.2x B S Oy A Levereye 3.3x 3.4x 3.6x 3.8x 4.1x 3 . . x : FitchRatings CHESAPEAK. , Be OMI TEE MCORP ORATION
Slide 38: 6+ Times Oversubscribed
6+ Times Oversubscribed New 5.2% Note Issued Nov. 2024
Slide 39: Financing Takeaways
Financing Takeaways > % a & ° “e % & “Z s Zz 2, iS g & o 8 & Oo St 2 38, 4 2 iB 5 w Z = a 2 < a a Fe fs 39 Strong Balance Sheet moving back toward target capital structure >50% Earnings reinvested in the business Strong Liquidity: $450M Revolving Credit Facility Access to LTD: Fitch Rating IDR BBB+
Slide 40: Reaching New Heights
Reaching New Heights Delivering on Our Promises Focusing on the Three Pillars of Growth Reaching New Heights $) Maintaining Our Financial Discipline