Chesapeake Utilities Corporation · NYSE:CPK
Chesapeake Utilities — FY2024 Earnings Presentation
38 slides from Chesapeake Utilities's earnings presentation, Feb 26, 2025
Slide 1: Fourth Quarter & Full-Year 2024 Earnings Call Presentation
1 Fourth Quarter & Full-Year 2024 Earnings Call Presentation February 27, 2025 scan here for an electronic copy
Slide 2: Safe Harbor for Forward-Looking Statements
2 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 th
Slide 3: Safety Moment: Heart Health
3 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
Slide 4: Today's Presenters
4 Today’s Presenters Jeff Householder Chair of the Board, President & Chief Executive Officer Beth Cooper Executive Vice President, Chief Financial Officer, Treasurer & Asst. Corporate Secretary Lucia Dempsey Head of Investor Relations Jim Moriarty Executive Vice President, General Counsel, Corporat
Slide 5: Strong Full-Year 2024 Financial Performance
5 Adjusted Diluted EPS1 Strong Full-Year 2024 Financial Performance 1 Adjusted Diluted Earnings Per Share from Continuing Operations; 2024 excludes transaction / transition-related costs associated with the FCG acquisition. $2.04 $2.10 $0.90 $0.86 $0.69 $0.80 $1.64 $1.63 FY 2023 FY 2024 Q1 Q2 FY 202
Slide 6: Delivering With Purpose in 2024
6 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 Add
Slide 7: Florida City Gas: One Year Later
7 Florida City Gas: One Year Later $88.6M 2024 FY Margin Contribution from FCG $3.8M FY 2024 Adjusted Gross Margin from SAFE Program Investment $2.81 per share 2024 FY FCG Adjusted Gross Margin1 93% 1-Year FCG Employee Retention 9 FCG / PPC Projects Filed & Approved since Acquisition $97M 2024 FCG C
Slide 8: Executing On Our Long-Term Growth Plan
8 Growth in earnings to support growth and increased shareholder value Foundation of operational excellence across the organization Executing On Our Long-Term Growth Plan Continually execute on business transformation Proactively manage regulatory agenda Prudently deploy investment capital
Slide 9: High-Growth Service Areas Drive Investment Opportunities
9 4.0% 1.6% 3.9% 1.2% 4.4% 2.0% 4.4% 2.1% Residential Commercial & Industrial Residential Commercial & Industrial Residential Commercial & Industrial Residential Commercial & Industrial Full-Year 2024 vs Full-Year 2023 D el m ar va Q4 2024 vs Q4 2023 Fl or id a High-Growth Service Areas Drive Invest
Slide 10: 2024 Capital Investment at High-End of Guidance
10 62% 19% 9% 3% 7% 2024 Capital Investment at High-End of Guidance $356M • GUARD / SAFE / SPP capital investment totaling over $83M • Filed 13 projects for approval ◦ 11 approved in 2024 ◦ 2 approved in Q1 2025 • Major projects drove incremental margin of $9.2 million • 5 projects with full-year ma
Slide 11: Initiating 2025 Capital Expenditure Guidance of $325M - $375M
11 • GUARD / SAFE / SPP / Capital Surcharge Infrastructure Reliability Investment In-Service Dates throughout 2025 • Worcester Resiliency Upgrade LNG Storage in Maryland Target in Service: Q3 2025 • Miami Inner Loop System expansion in South Florida Target in Service: Q3-Q4 2025 • Multiple PPC Proje
Slide 12: Organic Growth Driving Delmarva & Florida Investments
12 Organic Growth Driving Delmarva & Florida Investments # Project Name Status In-Service Total CapEx Adj. Gross Margin ($M) 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
13 >70% capital spend with existing regulatory approvals or recovery mechanisms 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 Identified CapEx 5-Year Spend Natural Gas LDC Organic Growth $625M Wo
Slide 14: Business Transformation: 2024 Successes and 2025 Opportunities
14 Business Transformation: 2024 Successes and 2025 Opportunities Drivers of consolidation, centralization and standardization: • "One Company" approach • 1CX Implementation • FCG integration • Cross-functional reorganizations within Customer Care, Construction Services, Enterprise Health & Safety,
Slide 15: Record Levels of Financial Performance Metrics
15 $5.31 $5.39 FY 2023 FY 2024 +2% $454.1 $567.4 FY 2023 FY 2024 $97.8 $121.5 FY 2023 FY 2024 +24% Record Levels of Financial Performance Metrics 1 See appendix for a reconciliation of non-GAAP metrics. 2 Transaction and transition-related expenses represent costs incurred attributable to the acquis
Slide 16: Key Drivers of Performance – 12 Months Ended December 31, 2024
16 $5.31 $2.91 $0.61 $0.19 $(1.52) $(1.15) $(0.96) $5.39 FY 2023 Adj. EPS Contribution from Acquisitions Regulated Margin Unregulated Margin O&M, D&A and Tax Interest Expense Dilution FY 2024 Adj. EPS Key Drivers of Performance – 12 Months Ended December 31, 2024 1 See appendix for GAAP to non-GAAP
Slide 17: Regulated Adjusted Gross Margin Growth of 32%
17 32% Growth in Regulated Adjusted Gross Margin Drivers of Regulated Adj. EPS Growth $0.20 $0.19 $0.17 $0.04 $0.01 Infrastructure Growth Distribution Growth Transmission Growth Regulatory / Rate Impacts Consumption Adjusted Gross Margin1 Operating Income2 $333.6 $439.2 FY 2023 FY 2024 $136.6 $200.2
Slide 18: Unregulated Operating Income Growth of 30%
18 Unregulated Operating Income Growth of 30% Growth in Marlin Virtual Pipeline Services Drives $0.15 of Incremental Adjusted EPS Adjusted Gross Margin1 Operating Income $120.6 $128.2 FY 2023 FY 2024 $24.4 $31.7 FY 2023 FY 2024 +6% +30% 1 Dollars in millions. See appendix for GAAP to non-GAAP reconc
Slide 19: Strong Balance Sheet Supports Growth Plan
19 Strong Balance Sheet Supports Growth Plan $2,632 $2,874 $1,187 $1,262 $199 $222 $1,246 $1,390 12/31/2023 12/31/2024 Total Capitalization Equity Short-Term Debt1 Long-Term Debt 47% 8% 45% 48% 8% 44% Total Liquidity2 72% 28% 1 Short-term debt for both periods includes short-term borrowing as well a
Slide 20: Three Decades of Dividend Growth Drive Shareholder Return
20 Three Decades of Dividend Growth Drive Shareholder Return Annualized Dividend per Share 1 Calculated through 12/31/2024. 10-Year Dividend CAGR of 9% Dividend Increases in 29 of the last 31 Years – Since 1994 64 Consecutive Years of Dividend Payments – Since 1961 21 Consecutive Years of Dividend I
Slide 21: Driving Increased Shareholder Value; Reaffirming Earnings Guidance
21 $3.47 $3.72 $4.21 $4.73 $5.04 $5.31 $5.39 $6.35 $8.00 $3.47 $3.72 2018 2019 2020 2021 2022 2023 2024 2025 2028 Guidance Driving Increased Shareholder Value; Reaffirming Earnings Guidance Adjusted Diluted Earnings Per Share1 • 2024 Adjusted Earnings Per Share of $5.391 • 2025 Adj. EPS Guidance of
Slide 22: Advancing a Proactive Rate Case and Regulatory Agenda
22 Advancing a Proactive Rate Case and Regulatory Agenda Active Regulatory Filings Docket # Status Maryland Rate Case 9722 • August 2024: $2.6M rate increase approved • November 2024: Filed Phase II proceeding • March 2025: Hearing scheduled Delaware Rate Case 24-0906 • August 2024: Filed a request
Slide 23: Worcester Resiliency Upgrade Project Approved and On Schedule
23 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 storag
Slide 24: A Year of Exceptional Community Engagement
24 A Year of Exceptional Community Engagement 6,823 hours volunteered by CPK teammates $356K 2024 FY charitable donations $219K 2024 FY community sponsorships 75+ orgs supported by charitable giving $30k+ scholarships awarded to high school seniors Sharp Teammates Support Flags for Veterans in Maryl
Slide 25: Why Chesapeake Utilities?
25 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. Innovative & diligent team focused on operational execution, business transfor
Slide 26: Appendix
Appendix CHESAPEAK: > UTILITIESH#CORPORATION
Slide 27: Quarterly Earnings Cadence
27 Quarterly Earnings Cadence Year Q1 Q2 Q3 Q4 FY 2024 $2.10 $0.86 $0.80 1.63 5.39 % of FY 39% 16% 15% 30% 2023 $2.04 $0.90 $0.692 $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% 2020 $1.77 $0.6
Slide 28: Weather Has Generally Been Warmer than Normal in 2024
28 Weather Has Generally Been Warmer than Normal in 2024 OhioDelmarva Florida (18)% (10)% (10)% (10)% (20)% —% FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 NORMAL Note: Normal reflects 10-Year Average Heating Degree Days (HDD). Percentages reflect actual HDD above / (below) Normal divided by Norm
Slide 29: Aligning our Work with a Higher-Level Purpose
29 Aligning our Work with a Higher-Level Purpose Our Vision We will be a leader in delivering energy that contributes to a sustainable future. Our Values Care Integrity Excellence We deliver energy that makes life better for the people and communities we serve. Our Mission We put people first. We te
Slide 30: Long-Term Debt Profile – Positioned to Execute Growth Plan
30 Long-Term Debt Profile – Positioned to Execute Growth Plan $26 $135 $132 $137 $157 $162 $62 $58 $159 $59 $206 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035+ $ in millions
Slide 31: GAAP to Non-GAAP Reconciliation – Consolidated Results
31 GAAP to Non-GAAP Reconciliation – Consolidated Results 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, & Electric (60.8) (
Slide 32: GAAP to Non-GAAP Reconciliation – Segment Results
32 GAAP to Non-GAAP Reconciliation – Segment Results 1 Operations & maintenance expenses within the Consolidated Statements of Income are presented in accordance with regulatory requirements and to provide comparability within the industry. Operations & maintenance expenses which are deemed to be di
Slide 33: GAAP to Non-GAAP Reconciliation – Adjusted Net Income and EPS
33 GAAP to Non-GAAP Reconciliation – Adjusted Net Income and EPS 1 Transaction and transition-related expenses represent costs incurred attributable to the acquisition and integration of FCG including, but not limited to, transition services, consulting, system integration, rebranding and legal fees
Slide 34: Reviewing Q4 Results
34 Reviewing Q4 Results For Internal Use & Reference Only Factset Consensus As of 2/6 CPK Q4 2024 Adjusted Net Income $ 36.4 $ 36.7 Adjusted EPS $ 1.64 $ 1.63 FY 2024 Adjusted Net Income $ 115.70 $ 121.5 Adjusted EPS $ 5.40 $ 5.39 Q1 2025 Adjusted EPS $ 2.34 $2.10 FY 2025 Adjusted EPS $ 6.24 $6.15
Slide 35: Establishing Q4 / FY Key Messaging
35 Establishing Q4 / FY Key Messaging What do we want our sell-side report headlines to say? • Outstanding Full-Year results for CPK: on target with guidance, in-line with consensus • Strong contribution from FCG: $38 million in Net Income (excluding financing impacts) • Maintaining 2025 EPS guidanc
Slide 36: Proposed Guidance Ranges
36 Proposed Guidance Ranges For Internal Use & Reference Only 2025 EPS: $6.15 - $6.35 2028 EPS: $7.75 - $8.00 2025 CapEx: $325M - $375M 5-Year CapEx: $1.5B - $1.8B Identified Capex: $1.5B 2025 Capital Structure Target: 50/50 2025 Equity /Debt Issuance: no guidance ranges at this time
Slide 37: Q4 Key Topics and Top Questions
37 Q4 Key Topics and Top Questions Key Topics to Discuss / Update • Delivering on our promises with FCG ◦ FY FCG Contribution • 2024 & 2025 capital spending driving significant growth in 2025+ ◦ Margin from 2024 projects ◦ Margin from infrastructure projects • WRU FERC approval • Miami Inner Loop ap
Slide 38: Q4 Script Outline
38 Q4 Script Outline Jeff Beth • A look back at 2024 • Growth in FL AND Delmarva • Capital ◦ 2024 Successes ◦ Miami Inner Loop (FCG delivery) ◦ Add'l identified projects ◦ WRU ◦ 2025 Goals • Regulatory (defer to Jim) • Biz Transformation ◦ 2024 Successes ◦ 2025 Goals • Where we're going in 2025 • Q4