Chesapeake Utilities Corporation · NYSE:CPK
Chesapeake Utilities — Q1 2025 Earnings Presentation
30 slides from Chesapeake Utilities's earnings presentation, May 8, 2025
Slide 1: Q1 2025 Earnings Call Presentation
THURSDAY, MAY 8, 2025 Q1 2025 Earnings Call Presentation
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: Q1 2025 Safety Moment: Bicycle Safety
Q1 2025 Safety Moment: Bicycle Safety For Cyclists For Drivers • Be highly visible • Remain alert Wear light / bright colors. Watch for cyclists and e-scooters, Wear reflective clothing and use particularly when turning. flashing lights at night. • Make eye contact • Wear a helmet Show riders you se
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
Slide 5: Strong Start with Q1 2025 Performance
Strong Start with Q1 2025 Performance 1 Adjusted EPS Key Financial Highlights $2.22 Q1 2025 Results 1 • Adjusted Gross Margin : $182.4M, up 11% from Q1 2024 1 • Adjusted Net Income : $51.1M, up 9% from Q1 2024 $2.10 1 • Adjusted EPS : $2.22, up 6% from Q1 2024 Earnings Guidance Reaffirmed • FY 2025
Slide 6: Natural Gas Demand Growth Continues
Natural Gas Demand Growth Continues Average Customer Growth: Q1 2025 vs Q1 2024 Delmarva Residential 4.0% Residential 3.0% Florida Commercial Commercial & Industrial 1.5% & Industrial 1.7% 6
Slide 7: 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 7 Foundation of operational excellence across the organization
Slide 8: Multi-Faceted Growth Capital
Multi-Faceted Growth Capital Margin growth driven by multiple streams of capital investment opportunities RELIABILITY INFRASTRUCTURE: system upgrades and replacements Adjusted Gross Margin Jurisdiction Program Capital Investment 2024A 2025E 2026E Q1'24 Q1'25 1 FPU GUARD $205M $3.6 $6.9 $9.9 $0.6 $1.
Slide 9: Transmission Projects Drive 2H 2025 Margin Growth
Transmission Projects Drive 2H 2025 Margin Growth Total Adj. Gross Margin ($M) # Project Name Status 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
Slide 10: Worcester Resiliency Upgrade Project (WRU)
Worcester Resiliency Upgrade Project (WRU) $100 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 and during peak l
Slide 11: 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
Slide 12: Significant Rate Case Progress
Significant Rate Case Progress $ millions Active Filings 2025 2026 Status Margin Margin − August 2024: $2.6M rate increase approved Maryland − November 2024: Filed Phase II proceeding Rate Case $2.0 $3.5 − March 2025: $3.5M final base rate increase approved, both Phase I & II Docket #9722 − April 20
Slide 13: FCG Depreciation Study
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 excess reserve of $27.3M • Reflects a return to our standard way of recovering excess depreciation and replaces the Reser
Slide 14: Business Transformation Supports Growth
Business Transformation Supports Growth 2025 Transformational Activities • Implementing 1CX for FCG • Launching a multi-year ERP transformation • Implementing the Technology Roadmap ◦ Operational programs, upgrades and cyber security • Expanding the Safety Data Management System (SDMS) capabilities
Slide 15: Engaging with All Stakeholders
Engaging with All Stakeholders Investor Engagement Community Engagement • March 2025: Published the 2024 Annual Report, highlighting accomplishments from CPK continued the year and launching this year's theme: FCG's long- Delivering with Purpose, Reaching New standing support Heights of the Children
Slide 16: Q1 2025 Demonstrates Continued Growth
Q1 2025 Demonstrates Continued Growth 1 Incremental growth in Adjusted Gross Margin, Adjusted Net Income & Adjusted Earnings Per Share $ millions except per share amounts 1 1 1 Adjusted Gross Margin Adjusted Net Income Adjusted Earnings Per Share +11% $182.4 +6% +9% $51.1 $2.22 $2.10 $164.5 $46.8 16
Slide 17: 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 1 Adjusted Diluted Earnings Per Share 0.05 0.07 0.07 0.11 (0.17) 0.12 (0.14) 0.18 (0.06) $2
Slide 18: Regulated Operations Margin Growth Continues
Regulated Operations Margin Growth Continues Investments in transmission, distribution and infrastructure drive growth in Regulated operations 1 Adjusted Gross Margin Q1 2024 $118.5 + 8% Q1 2025 $128.1 Operating Income Q1 2024 $58.1 +4% Q1 2025 $60.5 18 Note: Dollars in millions. 1 See appendix for
Slide 19: Unregulated Operating Income Growth of 23%
Unregulated Operating Income Growth of 23% Higher propane consumption + Marlin Virtual Pipeline Services Drive $8.5M of Adj. Gross Margin Growth • $4.6 million: Increased propane consumption, Adjusted Gross Margin 1 margins and service fees Q1 2024 $46.0 +18% • $3.6 million: Increased demand for vir
Slide 20: Balance Sheet Strength Facilitates Growth
Balance Sheet Strength Facilitates Growth Total Capitalization 2025 Equity & Debt Issuances $ in millions $2,948 $2,874 • $21.6M equity issued through 3/31/2025 • 237,917 shares issued in April 2025 • 23,327,358 shares outstanding as of 5/2/2025 Equity $1,390 48% $1,447 49% 2 Total Liquidity Short-T
Slide 21: Dividend Policy Drives Increased Shareholder Value
Dividend Policy Drives Increased Shareholder Value Retained Earnings Annualized Dividend Per Share $2.74 enables CPK to reinvest 2025 Reflects 7% Annual Increase $2.56 to support growth plan o f 9% R $2.36 CAG nd iv ide $2.14 Growth Plan drives e ar D 10-Y $1.92 Earnings Growth $1.76 ~8.5% 10-Year C
Slide 22: Industry-Leading EPS Growth Drives Value
Industry-Leading EPS Growth Drives Value 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 Capital Investment... … Lea
Slide 23: Quarterly Earnings Cadence
Quarterly Earnings Cadence 2025 Actual There are several Shift in earnings cadence driven by: factors that shift the 36% cadence of our • Timing of Rate Case Revenue Increases 35% 31% quarterly earnings • Timing of in-service dates for major capital profile in 2025. As projects, which is more heavil
Slide 24: Reaching New Heights in 2025
Reaching New Heights in 2025 Industry- Leading Growth & Total Shareholder Return 24
Slide 25: Appendix: Additional Information
APPENDIX Additional Information Chesapeake Utilities Corporation Confidential 2025
Slide 26: Colder Weather in Q1 2025 Increased Consumption
Colder Weather in Q1 2025 Increased Consumption Delmarva Ohio Florida 20% COLDER 10% 3% —% NORMAL MILDER (10)% (12)% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 ACTUAL HDD 1,962 2,210 2,659 3,087 470 580 NORMAL HDD 2,221 2,146 2,965 2,801 470 483 26 VARIANCE (259) 64 (306) 286 — 97 Note: Normal
Slide 27: Long-Term Debt Profile Reduces Near-Term Rate Risk
Long-Term Debt Profile Reduces Near-Term Rate Risk $ in millions • Reduces near-term interest rate risk $206 Minimal maturities • Beneficial to navigate the in 2025 uncertain economic environment $162 $159 $157 $135 $137 $132 $62 $59 $58 $24 27 2025 1 2026 2027 2028 2029 2030 2031 2032 2033 2034 203
Slide 28: GAAP to Non-GAAP Reconciliation: Consolidated
GAAP to Non-GAAP Reconciliation: Consolidated First Quarter Results Year-to-Date Results $ in millions Consolidated Reconciliation Q1 2025 Q1 2024 $ % YTD 2025 YTD 2024 $ % GAAP Operating Revenues $ 298.7 $ 245.7 $ 53.0 22% $ 298.7 $ 245.7 $ 53.0 22% Cost of Sales Nat Gas, Propane, & Electric (116.3
Slide 29: GAAP to Non-GAAP Reconciliation: Segment Results
GAAP to Non-GAAP Reconciliation: Segment Results $ in millions Regulated Segment First Quarter Results Unregulated Year-to-Date Segment Results First Quarter Results Regulated Segment Q1 2025 Q1 2024 $ % Q12025 YTD 2025 Q12024 YTD 2024 $$ %% GAAP Operating Revenues $ 199.6 $ 168.4 $ 31.2 19% $$ 106.
Slide 30: 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 First Quarter Results Year-to-Date Results Non-GAAP Reconciliation: Net Income /EPS Q1 2025 Q1 2024 $ % YTD 2025 YTD 2024 $ % GAAP Net Income $ 50.9 $ 46.2 $ 4.7 10% $ 50.9 $ 46.2 $ 4.7