Chesapeake Utilities Corporation · NYSE:CPK
Chesapeake Utilities — 2025 AGA Financial Forum
38 slides from Chesapeake Utilities's conference presentation, May 16, 2025
Slide 1: 2025 AGA Financial Forum
> * CHESAPEAKE May 18-20, 2025 2025 AGA Financial Forum
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
Slide 3: Titles Should Be Font Size –
Titles Should Be Font Size 40 – 44
Slide 4: Chesapeake Utilities at a Glance
Chesapeake Utilities at a Glance Both Regulated and 2024 Operating Income Unregulated Operations byipusmessType BBE Ureouites Eneroy operations NYSE: _ $3.0B ~-1,230 CPK market cap employees Regulated Transmission Regulated Distribution 9 450k+ $3.6B 85% eo distribution total regulated Other custome
Slide 5: Three Pillars of Our Fundamental Growth Strategy
Three Pillars of Our Fundamental Growth Strategy UTILITIES MHCORPORATION Earnings & Dividend Growth Drive Increased Shareholder Value i ae MB ~ A @ | $ i cS Prudently Proactively Continually deploy manage transform investment regulatory business capital agenda operations Foundation of operational ex
Slide 6: $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 $- $500.0 $1,000.0
$- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 $- $500.0 $1,000.0 $1,500.0 $2,000.0 $2,500.0 $3,000.0 $3,500.0 $4,000.0 -10.00% -5.00% 0.00% 5.00% 10.00% $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00
Slide 7: Commitment to Long-Term Targets
Commitment to Long-Term Targets to sustain our long-term growth trajectory see Zs GR Sy “on cn BPS oe FLORIDA gate age" CITY GAS oo ome acquisition Ree Updated Capex and EPS guidance due iter to additional organic pth LON Rn" growth investment ee opportunities 7 th aA Long-Term we AGIEEES Growth fa
Slide 8: What Drives Success in 2024, 2025 & Beyond?
What Drives Success in 2024, 2025 & Beyond? Deploying $700M+ in organic capital investments A Closer Look: 2024-2025 Growth Reliability projects driving significant gross margin Bringing 14+ new growth projects online on time Constructive rate case outcomes in DE, MD & FL Timely recovery of full FCG
Slide 9: Delivering with Purpose, Reaching New Heights
Delivering with Purpose, Reaching New Heights rs) Top-Quartile Performance ref maintaining our track record J Disciplined Financing Strategy & supporting growth and stability @ Fundamental Growth Strategy delivering on our three pillars Attractive Service Areas investing in unparalleled growth 7
Slide 10: Operating in High-Growth Service Areas
DELMARVA Top-Quartile Growth! 4.0% residential growth 1.5% commercial growth ~4,000 new customers Attracting new residents Expanded gas service driving commercial and industrial growth FLORIDA Top-Quartile Growth! 3.0% residential growth 1.7% commercial growth ~6,700 new customers #1 for state in-mi
Slide 11: Potential New Home Construction
Potential New Home Construction Drives Residential & Commercial Growth ~80+ New Housing Projects Fle 2ug Delmarva ~40 - 60 New Housing Projects Bi-y4 ~70 - 90 New Housing Projects Bx4 ~40 - 60 New Housing Projects Pir2y delaware “Delaware is growing. The online First State has 6th biggest per me — c
Slide 12: Significant Progress on 5-Year CapEx Spend
Significant Progress on 5-Year CapEx Spend Identified CapEx ‘Year Spend $625M $100M $28M | sxem ~>70% $42M capital spend $40M with existing $600 - $645M $435 - $590M = regulatory 2 _ 7 | $49M approvals 5 nr jater 4 rm $100 - $140M or recovery z Businesses $230M mechanisms < $75M 5 Technology $70 - $
Slide 13: Multi-Faceted Growth Capital
Multi-Faceted Growth Capital RELIABILITY INFRASTRUCTURE: system upgrades and replacements Adjusted Gross Margin ($M) Jurisdiction Program Capital Investment 2024A 2025E 2026E Ql24 av25 FPU GUARD $205M! $3.6 $6.9 $9.9 $0.6 $1.5 FCG SAFE $255M! $3.8 $8.5 $12.0 $0.4 $1.7 ESNG Capital Cost Surcharge $50
Slide 14: Transmission Projects Drive 2H 2025 Margin
Transmission Projects Drive 2H 2025 Margin Adj. Gross Margin ($M) roject Name fotal CapEx ervice’ [20258 | 2026 | St. Cloud / Twin Lakes In-Service Q3 2023 $0.6 $0.6 Newberry Expansion $15M In-Service Q2 2024 $2.6 $2.6 | Warwick Extension $9M In-Service Q4 2024 $1.9 $1.9 @ Plant City $4M In-Service
Slide 15: Business Development Updates
Business Development Updates ¢ Expansions in the southern end of the Delmarva system, including service to Virginia’s Eastern Shore space and agricultural industries / Identifying Potential New Opp es to Serve wing Demand jaman * Cecil County, Maryland I-95 expansions to serve growth in retail wareh
Slide 16: Worcester Resiliency Upgrade (WRU)
Worcester Resiliency Upgrade (WRU) 00 million LNG storage facility in Bishopville, MD, consisting of five low-profile horizontal tanks with 500K gallons of storage * WRU is a critical project to support affordable energy prices, protect against weather-related disruptions, support peak loads and pre
Slide 17: Constructive Rate Case Progress
Constructive Rate Case Progress Fal 2 ° 2 be a 2) o 4 Maryland April 2025: Final Order issued, Rate Case A : effective April 19, 2025; for 2 pee $3.5M revenue increase Delaware Q2 2025: Final Order expected for Settlement Agreement of $6.1M revenue increase May 2025: Revised settlement : agreement r
Slide 18: FCG Depreciation Study
¢y FCG Depreciation Study Docket # 20250035 * Requested a reduction in depreciation expense of ~$1M in the form of revised annual depreciation rates and a 2-year amortization of the $27.3M excess depreciation reserve Regulatory [NN + Reflects a return to our standard way of recovering excess depreci
Slide 19: Business Transformation Supports Growth
Business Transformation Supports Growth Transform Technology Supporting “One Company” Approach 1CX Implementation Implemented 1CX for FCG in April 2025 Full company now integrated through two successful roll-outs Standardizing service and operations Implementing the Technology Roadmap e Operational
Slide 20: Managing Operational Expenses
Managing Operational Expenses 3 ~=Gross Margin Growth Outpaces O&M Increases ° 7 $567. = WM justed Gross Margin sic We have prudently 7 —O— operating Expenses as a % of Adj. Gross Margin managed operational expense growth during a period of significant gross margin expansion Executing a “One Company
Slide 21: Depth and breadth of leadership team drives business transformation & growth
Depth and breadth of leadership team drives business transformation & growth Significant industry knowledge, company experience and subject-matter expertise Culture of financial discipline and operational health and safety Focus on leadership training & long-term succession planning Preparing workfo
Slide 22: Q1 2025 Demonstrates Continued Growth
© Q1 2025 Demonstrates Continued Growth Adjusted Gross Margin’ Adjusted Net Income!’ Adjusted Earnings Per Share’ ——> _ $51.1 >_> $2.22 $2. I : } , Qi 2024 Qi 2025 Qi 2024 Qi 2025 12024 Qi 2025
Slide 23: Financing Strategy Supports Growth and Stability
($] 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 Ne 2025 - 2028 Financing Plan EQUITY DEBT elele ale POLICY
Slide 24: Commitment to Balance Sheet Strength
© Commitment to Balance Sheet Strength Equity as a Percent of Total Capitalization 53% 53% Florida City Gas Acquisition Impact 52% 53% 51% 51% 52% 50% 50% Target Equity to Capitalization a aR SA A a a a Target ee ec ae F wv se NG eer 2025 Financing Updates Total available « Fitch assigns BBB+ IDR &
Slide 25: Dividend Policy Drives Shareholder Value
iS = u re a & = 5 Growth Plan drives Earnings Growth ~8.5% 10-Year CAGR Dividend Growth aligned with EPS Growth ~9% 10-Year CAGR Industry-Leading Annual Shareholder Return ~12%+ 10-Year CAGR' © Dividend Policy Drives Shareholder Value Annualized Dividend Per Share 2025 Reflects 7% Annual Increase $1
Slide 26: 2025 EPS Guidance Indicates 14-16% Growth
@ 2025 EPS Guidance Indicates 14-16% Growth Adjusted Earnings per Share! +8.4 - 8.7% $8.00 10-Year CAGR +14% - 18% Tee $7.75 j $6.35 1 $5.31 LC 39 | 3 $4.73 5:08 H E $4.21 j : = ~ a : O 1 7 @ = 7 2 2018 2019 U 2021 2022 2023 2024 2025 2028 B Earnings Growth Driven by Capital Investment... sf * Q1202
Slide 27: Strategic Plan Delivers Peer-Leading Growth
Q Strategic Plan Delivers Peer-Leading Growth Strong Q1 Results... ... Drive Peer-Leading LT EPS Growth * QI 2025 Adj. E * Q1 2025 CapEx: $113 million ..Alongside 2025 & 2028 CapEx & Adj. EPS Guidance Ranges... 5-Year CAPEX 2028 EPS GUIDANCE GUIDANCE $1.5B - $1.8B $7.75 - $8.80 Peer Companies
Slide 28: Reaching New Heights
Reaching New Heights , ah eZ — <a it Focusing on the Three Pillars of Growth Top-Quartile Growth & Total Shareholder Maintaining Our Financial Discipline Return Q Achieving EPS & Capital Guidance
Slide 29: Additional Information
2025 AGA Financial Forum ADDITIONAL INFORMATION
Slide 30: Quarterly Earnings Cadence
Quarterly Earnings Cadence Shift in 2025 earnings cadence driven by: * Timing of rate case revenue increases * Timing of in-service dates for major capital projects, which is more heavily weighted in Q3/ Q4 2025 * Timing of 2024 RSAM Adjustments versus & 2025 FCG Depreciation Study, which is likely
Slide 31: Long-Term Debt Profile Reduces Near-Term Risk
Long-Term Debt Profile Reduces Near-Term Risk + Reduces near-term Minimal interest rate risk $206 maturities in 2025 the uncertain economic environment + Beneficial to navigate $157 #162 $159 $135 per $137 $62 5 $59 : U i L 2025' 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035+ = a a : 3 >
Slide 32: Colder Weather Increased Q1 Consumption
Colder Weather Increased Q1 Consumption 20% COLDER 3% NORMAL | | mid MILDER (10)% (12)% Q12024 Q12025 Q12024 Q12025 Q12024 Q12025 ACTUAL HDD 1,962 2,210 2,659 3,087 470 580 NORMAL HDD 2,221 2,146 2,965 2,801 470 483 VARIANCE (259) 64 (306) 286 = 97
Slide 33: Q1 2025 Key Performance Drivers
Q1 2025 Key Performance Drivers Adjusted EPS for the first quarter benefited from colder weather, natural gas transmission, distribution and infrastructure growth and improved unregulated business performance Adjusted Diluted Earnings Per Share’ . (0.04) 2:10) | 12024 Increased —_—Marlin_Infrastruct
Slide 34: Business Segment Growth Continues
Business Segment Growth Continues Regulated Operations growth driven by: Unregulated Operations growth driven by: colder weather and investments in Increased propane consumption, margins and transmission, distribution and infrastructure service fees; Marlin Virtual Pipeline Services Adjusted Gross M
Slide 35: Overview of Regulatory Environments
Overview of Regulatory Environments g y Chesapeake Uti ions. These constructive le in some operations. Regulatory Agency Delaware Public Service Commission Maryland Public Service Commission Florida Public Service Commission Commissioners 5, appointed by Governor 5, appointed by Governor 5, appointe
Slide 36: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation: Consolidated GAAP Operating Revenues $ 2987 $ 245.7 $ 53.0 22% Cost of Sales Nat Gas, Propane, & Electric (116.3) (81.2) (351) 43% Operating Expense! (22.7) (ay 6) 8% D&A (22.5) 7.0) G5) 32% GAAP Gross Margin $ 1372 $ 1264 $ 108 2% Add Back: Operating Expense! 22.7 2
Slide 37: First Quarter Results / Year-to-Date Results
First Quarter Results Year-to-Date ResultsFi s Qu rter Results
Slide 38: GAAP to Non-GAAP Reconciliation: Adj. Net Income & EPS
GAAP to Non-GAAP Reconciliation: Adj. Net Income & EPS ons except per-share am inthousands Non-GAAP Reconciliation: Net Income /EPS GAAP Net Income FCG Transaction+Transition Expenses! Adjusted Net Income Diluted Weighted Avg. Common Shares Outstanding GAAP Diluted EPS FCG Transaction+ Transition Ex