Chesapeake Utilities Corporation · NYSE:CPK

Chesapeake Utilities — Q3 2025 Earnings Presentation

33 slides from Chesapeake Utilities's earnings presentation, Nov 7, 2025

  1. Slide 1: Q3 2025 Earnings Call Presentation

    Friday, November 7, 2025 Q3 2025 Earnings Call Presentation

  2. Slide 2: Safe Harbor for Forward-Looking Statements

    Safe Harbor for Forward-Looking Statements Safe Harbor Statement Some of the statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable law. Such forward-looking statements may be identified by the

  3. Slide 3: Q3 2025 Safety Moment: Kitchen & Fire Safety

    Q3 2025 Safety Moment: Kitchen & Fire Safety • Enact a system to ensure kids and pets remain away from hot surfaces, open flames, knives KITCHEN FIRE SAFETY TIPS: • Keep things away from the edges of counters, including dangling cords, pots and anything that can tip / spill / break • Know how to man

  4. Slide 4: Today's Presenters

    Titles Today'sShould Be Font Size 40 – 44 Presenters Jeff Householder Beth Cooper Jim Moriarty Lucia Dempsey Chair of the Board, Executive Vice President, Executive Vice President, Head of President & Chief Financial Officer, Treasurer General Counsel, Investor Relations Chief Executive Officer & As

  5. Slide 5: Delivering With Purpose

    Delivering With Purpose ADJ. GROSS $8.7M OF CAPITAL INFRASTRUCTURE MARGIN1: $137M PROJECT MARGIN MARGIN OF $3.9M Up 12% from Q3'24 Adj. Incremental Adj. Gross Incremental Adj. Gross Gross Margin of $122M Margin2 relative to Q3'24 Margin relative to Q3'24 $123M OF CAPITAL DELAWARE CASE CUSTOMER INVES

  6. Slide 6: Growth Trajectory Continues in Q3 2025

    Growth Trajectory Continues in Q3 2025 YTD Adjusted Diluted EPS1 Q3 2025 Financial Highlights +8% $4.082 $4.06 $3.76 • Adjusted Gross Margin1: $137.2M, up 12% from Q3 2024 $0.82 Q3 • Adjusted Net Income1: $19.5M, up 8% from Q3 2024 $0.80 • Adjusted EPS1: $0.82, up 3% from Q3 2024 $1.04 Q2 $0.86 YTD

  7. Slide 7: 2025 Guidance: Reaffirming EPS, Increasing CapEx

    2025 Guidance: Reaffirming EPS, Increasing CapEx 2025 Adj. EPS1 Guidance 2025 Capital Expenditure Guidance • Reaffirming 2025 Adj. EPS1 range of $6.15 - $6.35 • YTD 2025 CapEx of $336 million ◦ Assumes a successful outcome on the • New 2025 CapEx Guidance: $425 - $450 million FCG Depreciation Study

  8. Slide 8: Natural Gas Demand Growth Remains Strong

    Natural Gas Demand Growth Remains Strong Average Residential Customer Growth: 2025 vs 2024 Quarterly Growth DELMARVA 4.3% FPU 3.5% FCG 2.2% DELMARVA 4.3% YTD Growth FPU 3.9% FCG 2.1% 8

  9. Slide 9: Executing on Our Long-Term Growth Plan

    Executing on Our Long-Term Growth Plan Earnings growth to support increased shareholder value Prudently Proactively Continually deploy manage execute on investment regulatory business capital agenda transformation 9 Foundation of operational excellence across the organization

  10. Slide 10: Capital Deployment Highlights

    Capital Deployment Highlights Major capital projects are on track and on budget and 400+ small-scale projects completed YTD 2025... Capital Expenditures Total Margin Q3 2025 YTD 2025 Q3 2025 YTD 2025 FY 2024 FY 2025 FY 2026 Transmission $6.9M $13.8M $4.0M $22.8M $46.1M $108.1M $295.7M Infrastructure

  11. Slide 11: Worcester Resiliency Upgrade (WRU) Project

    Worcester Resiliency Upgrade (WRU) Project $100 million FERC-approved LNG storage facility in Bishopville, MD: 500K gallons of storage across five tanks to meet incremental natural gas demand in Southern Delaware, Maryland and beyond RECENT PROJECT UPDATES: • June 2025: ◦ Tank transportation was com

  12. Slide 12: Transmission Projects Advance to Meet Demand

    Transmission Projects Advance to Meet Demand Total Adj. Gross Margin ($M) # Project Name Status1 In-Service CapEx 2025E 2026E 1 St. Cloud / Twin Lakes In-Service Q3 2023 ~$4M $0.6 $0.6 2 Newberry Expansion In-Service Q2 2024 ~$15M $2.6 $2.6 3 Warwick Extension In-Service Q4 2024 ~$9M $1.9 $1.9 4 Pla

  13. Slide 13: Strong Progress on 5-Year CapEx Guidance

    Strong Progress on 5-Year CapEx Guidance ~$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 Natural Gas LDC Organic Growth $625M Regulated $600 - $645M Worcester Resiliency Upgrade $100M Distribu

  14. Slide 14: Potential Projects on the Horizon

    Potential Projects on the Horizon • Natural gas transmission expansions to support demand in Delaware and Cecil County, MD along I-95 expansions to serve growth in retail warehouse and distribution centers • Expansions in the southern end of the Delmarva system, including to Virginia’s Eastern Shore

  15. Slide 15: Final Orders Reached on All Rate Cases

    Final Orders Reached on All Rate Cases $ millions Active Filings 2025 2026 Status Margin Margin Maryland April 2025: Received Final Order Rate Case $1.5 $3.5 approving annual revenue Docket #9722 increase of $3.5M June 2025: Received Final Order approving annual revenue Delaware increase of $6.1M Ra

  16. Slide 16: Recovery of Excess Depreciation

    Recovery of Excess Depreciation Docket # 20250035 • February 2025: Requested a reduction in depreciation expense of ~$1M based on updated asset lives and a 2-year amortization of the remaining excess depreciation reserve • September 2025: Filing updated from a Proposed Agency Action (PAA) to a Heari

  17. Slide 17: Business Transformation Supports Growth

    Business Transformation Supports Growth Strategic Themes for Transformation CUSTOMER EXPERIENCE: Improve billing process, streamline service requests, modernize customer interactions through automation and digital platforms. OPERATIONAL EXCELLENCE: Enhance operations, asset management and field serv

  18. Slide 18: Engaging with All Stakeholders

    Engaging with All Stakeholders We were pleased to welcome Lisa Eden to our Board of YTD Community Investment Directors in September. Following her 20-year tenure at TXNM Energy, Inc., Lisa brings ~$488,000 a wealth of knowledge and of charitable donations & sponsorships experience in finance, strate

  19. Slide 19: Consistent Growth in Q3 2025

    Consistent Growth in Q3 2025 Incremental growth in Adjusted Gross Margin, Adjusted Net Income & Adjusted Earnings Per Share1 $ millions except per share amounts Adjusted Gross Margin1 Adjusted Net Income1 Adjusted Earnings Per Share1 +12% +8% $19.5 $137.2 +3% $0.82 $18.1 $0.80 $122.0 19 Q3 2024 Q3 2

  20. Slide 20: Q3 2025 Key Performance Drivers

    Q3 2025 Key Performance Drivers Adjusted EPS for the third quarter benefited from natural gas transmission, distribution and infrastructure growth, approved rate cases and virtual pipeline transportation Adjusted Earnings Per Share1 0.05 0.09 0.11 (0.03) 0.12 (0.14) 0.17 (0.12) (0.10) $0.80 (0.03) $

  21. Slide 21: Regulated Operations Margin Growth Continues

    Regulated Operations Margin Growth Continues Investments in transmission, distribution & infrastructure drive double-digit Regulated Operations growth Adjusted Gross Margin1 Q3 2024 $102.2 + 12% Q3 2025 $114.7 Operating Income Q3 2024 $44.0 +11% Q3 2025 $48.9 21 Note: Dollars in millions. 1 See appe

  22. Slide 22: Unregulated Adj. Gross Margin Growth of 13%

    Unregulated Adj. Gross Margin Growth of 13% $2.6M of Adj. Gross Margin Growth driven by Marlin Virtual Pipeline and Full Circle Dairy Operations Adjusted Gross Margin1 Q3 2024 $19.8 +13% Q3 2025 $22.4 • $2.6 million of increased margin from: ◦ Continued growth in our Marlin Virtual Pipeline Services

  23. Slide 23: Executing on Our Financing Strategy

    Executing on Our Financing Strategy Total Capitalization Equity Issuances & Shares Outstanding $ in millions $3,087 • 125,590 shares issued throughout Q3 2025 $2,874 • $83.1M equity issued YTD through 9/30/2025 • 104,871 shares issued in October 2025 $1,519 49% • 23,650,684 shares outstanding as of

  24. Slide 24: Dividend Policy Drives Increased Shareholder Value

    Dividend Policy Drives Increased Shareholder Value Growth Plan drives Annualized Dividend Per Share $2.74 Earnings Growth 2025 Reflects 7% Annual Increase $2.56 ~8.5% 10-Year CAGR 45-50% Target Payout Ratio o f 9% $2.36 R CAG nd v ide $2.14 ear Di 10 -Y $1.92 Dividend Growth $1.76 aligned with EPS G

  25. Slide 25: Industry-Leading Adj. EPS Growth Drives Value

    Industry-Leading Adj. EPS Growth Drives Value Adjusted Earnings Per Share1 +8.4 – 8.7% $8.00 10-Year CAGR $7.75 +14% – 18% $6.35 $5.31 $5.39 $6.15 $5.04 $4.73 $4.21 $3.72 $3.47 $3.72 $3.47 2018 2019 2020 2021 2022 2023 2024 2025 2028 Guidance Earnings Growth Driven by Capital Investment... … Leading

  26. Slide 26: Reaching New Heights in 2025

    Reaching New Heights in 2025 Delivering on Our Promises Focusing on the Three Pillars of Growth Top-Quartile Growth & Total Shareholder Maintaining Our Financial Discipline Return Achieving EPS & Capital Guidance 26

  27. Slide 27: Appendix: Additional Information

    APPENDIX Additional Information Chesapeake Utilities Corporation Confidential 2025

  28. Slide 28: Significant Growth & Infrastructure Investment

    Significant Growth & Infrastructure Investment Margin growth driven by multiple streams of capital investment opportunities TRANSMISSION INFRASTRUCTURE: new investments to meet growth & demand Adjusted Gross Margin ($M) Project Type Capital Investment 2024A 2025E 2026E Q3'24 Q3'25 Approved Transmiss

  29. Slide 29: Quarterly Earnings Cadence

    Quarterly Earnings Cadence There are several 2025 Actual EPS Cadence Shift in earnings cadence driven by: factors that shift the Quarterly Adj. EPS divided by low & high end of 2025 EPS guidance range cadence of our 36% • Timing of in- quarterly earnings service dates for 31% 35% major capital profi

  30. Slide 30: Long-Term Debt Maturity Profile

    Long-Term Debt Maturity Profile $ in millions August 2025 New Debt Issuance Q3 2025 LONG-TERM DEBT ISSUANCE $212 • $200M Private Placement issuance of unsecured Senior Notes with an average rate of 5.04% $206 $197 ◦ $150M funded on August 1, 2025 $50 ◦ $50M funded on September 15, 2025 $60 $157 $159

  31. Slide 31: GAAP to Non-GAAP Reconciliation: Consolidated

    GAAP to Non-GAAP Reconciliation: Consolidated $ in millions Third Quarter Results Year-to-Date Results Consolidated Reconciliation Q3 2025 Q3 2024 $ % YTD 2025 YTD 2024 $ % GAAP Operating Revenues $ 179.6 $ 160.2 $ 19.4 12% $ 671.1 $ 572.2 $ 98.9 17% Cost of Sales Nat Gas, Propane, & Electric (42.4)

  32. Slide 32: GAAP to Non-GAAP Reconciliation: Segment Results

    GAAP to Non-GAAP Reconciliation: Segment Results $ in millions Third Quarter Results Year-to-Date Results Regulated Segment Q3 2025 Q3 2024 $ % YTD 2025 YTD 2024 $ % GAAP Operating Revenues $ 146.4 $ 130.6 $ 15.8 12% $ 497.8 $ 429.7 $ 68.1 16% Cost of Sales Nat Gas, Propane, & Electric (31.7) (28.4)

  33. Slide 33: GAAP to Non-GAAP Reconciliation: Adj. Net Income & EPS

    GAAP to Non-GAAP Reconciliation: Adj. Net Income & EPS $ in millions except per-share amounts shares in thousands Third Quarter Results Year-to-Date Results Non-GAAP Reconciliation: Net Income /EPS Q3 2025 Q3 2024 $ % YTD 2025 YTD 2024 $ % GAAP Net Income $ 19.4 $ 17.5 $ 1.9 11% $ 94.2 $ 81.9 $ 12.3

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