Chesapeake Utilities Corporation · NYSE:CPK
Chesapeake Utilities — Edison Electric Institute (EEI) Conference 2020
25 slides from Chesapeake Utilities's conference presentation, Nov 10, 2020
Slide 1: Edison Electric Institute EEI Conference
Commitment Growth Leadership Safety Sustainability Solutions Driven ByEnergy Strength Team Service Edison Electric Institute EEI Conference November 10, 2020 Performance Community Value Chesapeake Utilities Corporation Exhibit 99.1
Slide 2: Forward Looking Statements and Other Disclosures
Forward Looking Statements and Other Disclosures Safe Harbor Statement: Some of the Statements in this document concerning future Company performance will be forward-looking within the meanings of the securities laws. Actual results may materially differ from those discussed in these forward-looking
Slide 3: Business Overview
Business Overview Diversified Energy Delivery Business Natural Gas Distribution Delaware, Maryland, Florida Electric Distribution Florida Propane Distribution and AutoGas Delaware, Maryland, Pennsylvania, Virginia, Florida Natural Gas Transmission Delaware, Maryland, Pennsylvania, Florida Marlin Mob
Slide 4: Financial Discipline Driving Growth and Performance
Driven by Energy. Delivering Energy Financial Discipline Driving Growth and Performance Five Year Performance thru September 30, 2020 Cap Ex/Total Capitalization EPS Growth Dividend Growth Earnings Retention Return on Equity Annual Shareholder Return 19.5% 8.7% 8.9% 57.5% 11.6% 11.7%
Slide 5: Key Third Quarter Announcements
Key Third Quarter Announcements Business Development and Growth Partnered with CleanBay Renewables to Increase Sustainable Energy on Delmarva Maryland PSC Approval and Completion of Elkton Gas Acquisition $75 million At-The-Market Equity Offering Program Partnered with Atlanta Gas Light to Build CNG
Slide 6: Financial Summary
Financial Summary GAAP Income and Income from Continuing Operations 6
Slide 7: Key Business Factors: COVID-19 Impact
Key Business Factors: COVID–19 Impact Chesapeake Utilities is an “essential business” to our customers and communities. As such, our operational activities and construction projects continue; all the while, we are adhering to safety guidelines and social distancing. The Company’s pandemic response p
Slide 8: Capital Expenditures Forecast
Capital Expenditures Forecast UPDATED Estimate for 2020 The Company's capital expenditures were $143.9 million for the nine months ended September 30, 2020. We will continue to update this forecast as we move through the year, including any unexpected capital delays resulting from COVID-19. Increase
Slide 9: Capital Structure Overview
Capital Structure Overview Actual and ProForma Close to achieving the low end of our target equity range
Slide 10: ATM Equity Issuance and S&P Small Cap 600 Inclusion
ATM Equity Issuance Inclusion of Chesapeake Utilities in the S&P Small Cap 600 Index Chesapeake Utilities (CPK) joined the S&P Small Cap 600 Index effective October 1, 2020 CPK replaced Momenta Pharmaceuticals (acquired by Johnson and Johnson) in the S&P Small Cap 600 Index The S&P Small Cap 600 Ind
Slide 11: Recent and Current Business Expansions
Recent and Current Business Expansions Business Development Continues to Identify New Opportunities Recently Completed Projects Underway Northwest Florida Expansion ESNG 2017 System Expansion Project (Delmarva Peninsula) Boulden Acquisition Propane Auburndale (FL) Pipeline Elkton Gas Acquisition LDC
Slide 12: Key Regulatory Initiatives
Key Regulatory Initiatives Hurricane Michael Limited Proceeding In September 2020, the Florida Public Service Commission approved a settlement agreement regarding the final cost recovery and rates associated with Hurricane Michael. The settlement of the Hurricane Michael proceeding improved operatin
Slide 13: Major Projects and Initiatives
Major Projects and Initiatives Gross Margin Contributions New Gross Margin Initiatives
Slide 14: Renewable Natural Gas
Renewable Natural Gas Waste products are converted to Biogas in an anaerobic digester. The raw Biogas does not meet gas pipeline quality standards. An upgrading (clean-up) process, similar to the gas processing CPK currently operates in Ohio, is required to produce Biomethane, typically referred to
Slide 15: CPK's Renewable Natural Gas Proposition
As a result of the Bioenergy DevCo .., CleanBay and Fortistar projects, the Company expects to generate $1.0 million in incremental margin in 2021 from renewable gas transportation. These projects provide the opportunity for the Company to utilize renewable natural gas, and play an active role in th
Slide 16: ESG Stewardship
ESG Stewardship We are a responsible company that promotes integrity, accountability and reliability, with the safety of those we serve as our highest priority. The key to our success is our strong culture that fully engages all of our team members across the organization. Our Equity, Diversity and
Slide 17: ESG At Our Core
ESG At Our Core CHESAPEAKE UTILITIES CORPORATION PARTNERS WITH ATLANTA GAS LIGHT TO BUILD CNG FILLING STATION AT PORT OF SAVANNAH The station aligns with our ongoing commitment to environmental responsibility by supplying clean-burning natural gas to fuel vehicles and making it available to customer
Slide 18: Capital Investment Guidance
Capital Investment Guidance Continued Record Investment in Our Business to Drive Growth Target Cap Ex 2018 – 2022 : Up to $1 billion $303,153 $250,000 *2020 Lower Capital Forecast range updated from $185 million to $195 million We will continue to update this forecast as we move through the year, in
Slide 19: GAAP Earnings per Share Guidance
GAAP Earnings per Share Guidance Analyst Estimate - Average CPK 2019 GAAP EPS CPK Guidance – Low Range CPK Guidance – High Range 2019 *Note: 2019 GAAP Diluted EPS ($3.96) – Diluted EPS from Continuing Operations ($3.72) 2021
Slide 20: Total Shareholder Return
Analyst Estimate - Average CPK 2019 GAAP EPS CPK Guidance – Low Range CPK Guidance – High Range Total Shareholder Return Increased Performance is Driving Increased Value
Slide 21: Market Capitalization
Analyst Estimate - Average CPK 2019 GAAP EPS CPK Guidance – Low Range CPK Guidance – High Range Market Capitalization Increased Performance is Driving Increased Value
Slide 22: Return on Equity
Return on Equity Chesapeake ROE Consistently Exceeds the Peer Median and 75th Percentile * 10-Year Peer 75th Percentile – 10.08% * 10-Year Peer Median – 8.86% 1 Year 3 Year 5 Year 10 Year CPK 12.01% 11.89% 11.84% 11.83% Peer Median 8.90% 10.04% 8.59% 8.86% Peer 75th Percentile 10.44% 10.63% 10.32% 1
Slide 23: Growth in Earnings per Share
Growth in Earnings per Share 13 Years of Record Earnings 5 Year CAGR = 9.9% 10 Year CAGR = 10.6% For Periods Ended December 31st Basic GAAP Earnings per Share
Slide 24: Strong Track Record of Dividend Growth
Chesapeake Utilities Strong Track Record of Dividend Growth Driven by Earnings Growth On May 7, 2020, the Board of Directors increased the annualized dividend to $1.76 per share, an increase of 8.6%. The $0.14 per share increase aligns our five year EPS growth rate of 9.4% with our five year dividen
Slide 25: Thank You!
Beth Cooper Executive Vice President, CFO and Asst. Secretary bcooper@chpk.com Thank You! Thomas E. Mahn Vice President and Treasurer tmahn@chpk.com
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