Chesapeake Utilities Corporation · NYSE:CPK
Chesapeake Utilities — Q4 2024 Earnings Presentation
33 slides from Chesapeake Utilities's earnings presentation, Feb 27, 2025
Slide 1: Fourth Quarter & Full-Year 2024 Earnings Call Presentation
Fourth Quarter & Full-Year 2024 Earnings Call Presentation February 27, 2025 1
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: Safety Moment: Heart Health
Safety Moment: Heart Health • February is American Heart Month: heart and cardiovascular disease affects >1.5M • Heart disease is preventable through small healthy decisions that become routine • Consider one step you can take each day to improve your heart health! Chesapeake's Sharp Propane Team "G
Slide 4: Today's Presenters
Today’s 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 & Asst. Corporate Secretary Corporate
Slide 5: Strong Full-Year 2024 Financial Performance
Strong Full-Year 2024 Financial Performance 1 Adjusted Diluted EPS Key Financial Highlights $5.31 $5.39 FY 2024 Results • Adjusted Gross Margin: $567.4M, up 25% from FY 2023 Q4 $1.64 $1.63 • Adjusted Net Income: $121.5M, up 24% from FY 2023 • Adjusted Diluted EPS: $5.39, up $0.08 from FY 2023 Q3 $0.
Slide 6: Delivering With Purpose in 2024
Delivering With Purpose in 2024 Achieved Adj. Diluted EPS of $5.39, at the midpoint of our 2024 Adj. EPS Guidance Invested $356M of capital, at the top end of our 2024 capital guidance range Integrated the Florida City Gas acquisition, generating a meaningful contribution within the first year Added
Slide 7: Florida City Gas: One Year Later
Florida City Gas: One Year Later • December 2024 marked the 1-year anniversary of bringing Florida City Gas into the Chesapeake Utilities family • FCG has made significant contributions to the Company and will continue to drive substantial growth • FCG teammates consistently report feeling welcomed
Slide 8: Executing On Our Long-Term Growth Plan
Executing On Our Long-Term Growth Plan Growth in earnings to support growth and increased shareholder value Prudently Proactively Continually deploy manage execute on investment regulatory business capital agenda transformation Foundation of operational excellence across the organization 8
Slide 9: High-Growth Service Areas Drive Investment Opportunities
High-Growth Service Areas Drive Investment Opportunities Service Areas are Attractive Places to Live and Work, Driving Strong Customer Growth Full-Year 2024 vs Full-Year 2023 Delmarva Delmarva Residential 4.0% • Delaware ranked the best state for Commercial 1.6% retirement, driven by well-being, wea
Slide 10: 2024 Capital Investment at High-End of Guidance
2024 Capital Investment at High-End of Guidance Other Unregulated 2024 Capital Project Highlights Propane • GUARD / SAFE / SPP capital 7% investment totaling over $83M Electric 3% Distribution • Filed 13 projects for approval 9% ◦ 11 approved in 2024 ◦ 2 approved in Q1 2025 Natural Gas $356M • Major
Slide 11: Initiating 2025 Capital Expenditure Guidance of $325M - $375M
Initiating 2025 Capital Expenditure Guidance of $325M - $375M 2025 Capital Investment Target Ranges 2025 Capital Project Highlights $ in millions Low High • GUARD / SAFE / SPP / Capital Surcharge Infrastructure Reliability Investment Natural Gas Distribution $135 $155 In-Service Dates throughout 202
Slide 12: Organic Growth Driving Delmarva & Florida Investments
Organic Growth Driving Delmarva & Florida Investments Total Adj. Gross Margin ($M) # Project Name Status In-Service CapEx 2024A 2025E 2026E 1 Beachside Expansion In-Service Q2 2023 ~$11M $2.4 $2.4 $2.4 2 Lake Wales In-Service Q2 2023 ~$2M $0.5 $0.5 $0.5 3 St. Cloud / Twin Lakes In-Service Q3 2023 ~$
Slide 13: 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 Natural Gas LDC Organic Growth $625M Regulated $600 - $645M Worcester Resiliency $80M Distribut
Slide 14: Business Transformation: 2024 Successes and 2025 Opportunities
Business Transformation: 2024 Successes and 2025 Opportunities 2024 Transformational Activity 2025 Transformational Goals Drivers of consolidation, centralization and • 1CX implementation for FCG standardization: • Launching a multi-year ERP transformation • "One Company" approach • 1CX Implementati
Slide 15: Record Levels of Financial Performance Metrics
Record Levels of Financial Performance Metrics Strong gross margin growth and effective expense management drives $0.08 increase in 2024 Adj. Diluted EPS 1 1 1 Adjusted Gross Margin Adjusted Net Income Adj. Diluted Earnings Per Share +25% $567.4 +24% $121.5 +2% $5.39 $454.1 $5.31 $97.8 FY 2023 FY 20
Slide 16: Key Drivers of Performance – 12 Months Ended December 31, 2024
Key Drivers of Performance – 12 Months Ended December 31, 2024 Successful integration of FCG and contributions across all business units allowed for record performance. 1 Adjusted Diluted Earnings Per Share $0.19 $0.61 $2.91 J.T. Lee & Sons $(1.52) FCG $2.88 $(1.15) $5.31 $5.39 $(0.96) FY 2023 Adj.
Slide 17: 32% Growth in Regulated Adjusted Gross Margin
32% Growth in Regulated Adjusted Gross Margin Capital deployment, regulatory agenda and business transformation drive 32% increase in Adj. Gross Margin 1 Drivers of Regulated Adj. EPS Growth Adjusted Gross Margin Consumption Regulatory / Rate Impacts $0.01 FY 2023 $333.6 +32% $0.04 Infrastructure Gr
Slide 18: Unregulated Operating Income Growth of 30%
Unregulated Operating Income Growth of 30% Growth in Marlin Virtual Pipeline Services Drives $0.15 of Incremental Adjusted EPS 1 • $4.5 million: Increased demand for virtual pipeline Adjusted Gross Margin services via our Marlin Gas Services subsidiary • $2.5 million: Contribution from JT Lee and So
Slide 19: Strong Balance Sheet Supports Growth Plan
Strong Balance Sheet Supports Growth Plan 2 Total Capitalization Total Liquidity $ in millions $2,874 $2,632 28% Equity $1,390 $705M Total available 48% $1,246 47% liquidity of 72% Short-Term $505M 1 8% $222 8% Debt $199 2024 Equity & Debt Issuances • $81.4M equity issued through various plans in 20
Slide 20: Three Decades of Dividend Growth Drive Shareholder Return
Three Decades of Dividend Growth Drive Shareholder Return Annualized Dividend per Share Dividend Increases in 29 of the last 31 Years – Since 1994 Increase of 8.5% 64 Consecutive Years of Dividend Payments – Since 1961 21 Consecutive Years of Dividend Increases – Since 2004 f9 % Ro AG e ndC vi d 12%
Slide 21: Driving Increased Shareholder Value; Reaffirming Earnings Guidance
Driving Increased Shareholder Value; Reaffirming Earnings Guidance 1 Adjusted Diluted Earnings Per Share +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 C
Slide 22: Advancing a Proactive Rate Case and Regulatory Agenda
Advancing a Proactive Rate Case and Regulatory Agenda Active Regulatory Filings Docket # Status • August 2024: $2.6M rate increase approved Maryland Rate Case 9722 • November 2024: Filed Phase II proceeding • March 2025: Hearing scheduled • August 2024: Filed a request for a $12.1M increase • Octobe
Slide 23: Worcester Resiliency Upgrade Project Approved and On Schedule
Worcester Resiliency Upgrade 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 t
Slide 24: A Year of Exceptional Community Engagement
A Year of Exceptional Community Engagement Teammates at the Cradles to Crayons Event in Wilmington, DE Sharp Teammates Support Flags for Veterans in Maryland "Making Strides" Breast Cancer Event in Miami, FL 6,823 $356K $219K 75+ $30k+ hours volunteered by 2024 FY 2024 FY community orgs supported sc
Slide 25: Why Chesapeake Utilities?
Why Chesapeake Utilities? CPK’s unique combination of operational expertise, growth potential and consistent delivery of long-term shareholder return connects our strong historical track record with our future success. Expertise Innovative & diligent team focused Nimble, yet powerful, organization w
Slide 26: Appendix
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Slide 27: Quarterly Earnings Cadence
Quarterly Earnings Cadence 1 Adjusted EPS Year Q1 Q2 Q3 Q4 FY 2024 $2.10 $0.86 $0.80 1.63 5.39 % of FY 39% 16% 15% 30% 2 2023 $2.04 $0.90 $0.69 $1.64 $5.31 % of FY 38% 17% 13% 31% 2022 $2.08 $0.96 $0.54 $1.47 $5.04 % of FY 41% 19% 11% 29% 2021 $1.96 $0.78 $0.71 $1.28 $4.73 % of FY 41% 16% 15% 27% 20
Slide 28: Weather Has Generally Been Warmer than Normal in 2024
Weather Has Generally Been Warmer than Normal in 2024 Delmarva Ohio Florida COLDER —% NORMAL (10)% (10)% (10)% MILDER (18)% (20)% FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 Note: Normal reflects 10-Year Average Heating Degree Days (HDD). Percentages reflect actual HDD above / (below) Normal div
Slide 29: Aligning our Work with a Higher-Level Purpose
Aligning our Work with a Higher-Level Purpose Our Mission Our Vision We deliver energy We will be a leader in that makes life better delivering energy that for the people and contributes to a communities we serve. sustainable future. Our Values Care We put people first. Integrity We tell the truth.
Slide 30: Long-Term Debt Profile – Positioned to Execute Growth Plan
Long-Term Debt Profile – Positioned to Execute Growth Plan $ in millions $206 $162 $159 $157 $135 $137 $132 $62 $59 $58 $26 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035+ 30
Slide 31: GAAP to Non-GAAP Reconciliation – Consolidated Results
GAAP to Non-GAAP Reconciliation – Consolidated Results $ in millions Fourth Quarter Results Year-to-Date Results Consolidated Reconciliation Q4 2024 Q4 2023 $ % FY 2024 FY 2023 $ % GAAP Operating Revenues $ 215.0 $ 185.3 $ 29.7 16% $ 787.2 $ 670.6 $ 116.6 17% Cost of Sales Nat Gas, Propane, & Electr
Slide 32: GAAP to Non-GAAP Reconciliation – Segment Results
GAAP to Non-GAAP Reconciliation – Segment Results $ in millions Fourth Quarter Results Year-to-Date Results Regulated Segment Q4 2024 Q4 2023 $ % FY 2024 FY 2023 $ % GAAP Operating Revenues $ 153.7 $ 127.8 $ 25.9 20% $ 583.4 $ 473.6 $ 109.8 23% Cost of Sales Nat Gas, Propane, & Electric (38.6) (34.3
Slide 33: GAAP to Non-GAAP Reconciliation – Adjusted Net Income and EPS
GAAP to Non-GAAP Reconciliation – Adjusted Net Income and EPS $ in millions except per-share amounts shares in thousands Fourth Quarter Results Year-to-Date Results Non-GAAP Reconciliation: NI /EPS Q4 2024 Q4 2023 $ % FY 2024 FY 2023 $ % GAAP Net Income $ 36.7 $ 25.3 $ 11.4 45% $ 118.6 $ 87.2 $ 31.4