Chesapeake Utilities Corporation · NYSE:CPK
Chesapeake Utilities — Philadelphia Securities Association (June 2019)
36 slides from Chesapeake Utilities's conference presentation, Jun 5, 2019
Slide 1: Philadelphia Securities Association
Philadelphia Securities Association June 5, 2019 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 Current and Future Growth Opportunities
Business Overview Current and Future Growth Opportunities 3
Slide 4: Chesapeake Utilities' Energy Delivery Systems
Chesapeake Utilities’ Energy Delivery Systems 4 Natural Gas Transmission Delaware, Maryland, Pennsylvania, Florida, Ohio Electric Distribution Florida Propane Distribution and AutoGas Delaware, Maryland, Pennsylvania, Virginia, Florida Natural Gas Distribution Delaware, Maryland, Florida Mobile CNG
Slide 5: Energy Delivery Growth Drivers
Energy Delivery Growth Drivers Unregulated Regulated Fueling Our Growth Pipeline expansion projects Organic growth Pipeline replacement programs CGS Conversions Regulatory Initiatives Acquisitions Fueling Our Growth Acquisitions Organic growth and Rate design CHP Plants New offerings (AutoGas, etc.)
Slide 6: Eastern Shore Natural Gas Transmission Pipeline Infrastructure
Eastern Shore Natural Gas Transmission Pipeline Infrastructure 6 KEY FACTS Miles of Pipeline 457 Delivery Points 96 Delivery Points within 16 Delivery Point Areas Compression 17,745 hp at 3 sites Daleville, PA 4 units, totaling 6,880 hp Delaware City, DE 6 units totaling 7,890 hp Bridgeville, DE 3 u
Slide 7: Del-Mar Energy Pathway Project Under Development
Del-Mar Energy Pathway Project Under Development Strategic Growth Initiative 7
Slide 8: Delmarva Natural Gas Distribution Organic Growth and Expansion
8 Delmarva Natural Gas Distribution Organic Growth and Expansion Legacy Organic growth focused on Kent/New Castle Counties, DE Present Growth into eastern Sussex County, DE and Cecil County, MD Conversion of existing propane customers in Worcester County, MD Future Continued expansion in growth area
Slide 9: Sandpiper Energy Customer Conversions from Propane to Natural Gas
Sandpiper Energy Customer Conversions from Propane to Natural Gas 9 Approximately 8,500 customers have been converted (Berlin, West Ocean City, Ocean Pines, and Ocean City). A bay crossing from West Ocean City to Ocean City completed in 2017 Conversions in Ocean City continue during the months of Se
Slide 10: Sharp Energy Growth Story and Geographic Focus
Sharp Energy Growth Story and Geographic Focus Sharp continues to grow organically within existing territories as well as expand geographically, with a focus on markets on the western shore of MD (Anne Arundel County and Baltimore County) and Wilmington, DE (AutoGas and commercial focus) Expanding i
Slide 11: Florida Business Unit Profile
Florida Business Unit Profile 11 Northwest Florida In-Service Q2 - 2018 New Smyrna Beach In-Service Q2 - 2018 Western Palm Peach County In-Service Q4 – 2018 to Q1 - 2020 Callahan Pipeline – Nassau County In-Service Q3 - 2020 Florida Pipeline Expansions $117 Million Investment $18.6 Million Annual Ma
Slide 12: Marlin Gas Services Significant Growth Potential
Marlin Gas Services Significant Growth Potential 9 12 Mobile Compressed Natural Gas Delivery Solutions. Emergency response for pipeline and gas distribution systems Temporary service for planned maintenance or system upgrade outages Virtual pipeline delivery Transport of RNG from landfills or biogas
Slide 13: Marlin Gas Services Q1 Results and 2019 Forecast
Marlin Gas Services Q1 Results and 2019 Forecast 9 13 Growth Forecast 2020 Margins expected to be >$6.0M Additional trailers and compressors on order Offload regulators are being constructed Further territorial expansion into the Southeast, Mid-Atlantic, and Gulf Coast regions Negotiating utilizatio
Slide 14: Major Projects and Initiatives
Major Projects and Initiatives Increasing Shareholder Value by Continuously Seeking and Developing Projects and Initiatives 14
Slide 15: Financial Update
Financial Update Our Commitment to Financial Discipline and Shareholder Value 15
Slide 16: Earnings and Dividends Twelve Years of Superior Growth
Earnings and Dividends Twelve Years of Superior Growth 16 *Adjusted Non-GAAP EPS of $2.89 excludes TCJA Impact We have generated strong earnings growth, which has enabled us to grow our recent dividends faster than our peers.
Slide 17: Continuing to Build for the Future Capital Expenditures
Continuing to Build for the Future Capital Expenditures 17 We have invested $1.37 billion in capital expenditures from 2009 to 2018 (ten year period) which has propelled our growth. $ in thousands 2019 Forecasted Capital Expenditures $66,787 Natural Gas Transmission 70,092 Natural Gas and Electric D
Slide 18: Capital Projects – High Return / High Investment
Capital Projects – High Return / High Investment Peer ROE vs. Capital Expenditures (January 2016 – December 2018) 18
Slide 19: Looking Forward
Looking Forward 19
Slide 20: Chesapeake Utilities Commitment Sustainability and ESG
Chesapeake Utilities Commitment Sustainability and ESG 2018 Air Quality Awareness Champion Green Globes Certificate Energy Lane Facility CNG Vehicle Fuel Marlin Gas Services Eight Flags Combined Heat and Power Plant Sharp AutoGas 20
Slide 21: Corporate Culture Corporate Governance
Corporate Culture Corporate Governance 2018 Best North American Utility for Corporate Governance Connecting with our Customers and Communities Chesapeake Utilities recognizes that customers expect safe, efficient and reliable service , as well as enhanced business connection options, more convenienc
Slide 22: Market Capitalization Increased
Market Capitalization Increased Performance is Driving Increased Value 22 19% Annual Growth In Market Capitalization Market Capitalization has doubled in less than five years Current Market Capitalization of $1.489 billion CPK Stock Price of $90.78 per share as of May 31, 2019 $10,000 invested in CP
Slide 23: Total Shareholder Return (TSR) Comparison
Total Shareholder Return (TSR) Comparison to Broader Market – S&P 500 Companies and Peer Group Comparison 23 Source: Bloomberg Chesapeake is driven to increase shareholder value…. Our compound annual return has exceeded 15% for all periods shown through May 31, 2019. Chesapeake exceeded the peer gro
Slide 24: Expect Growth Well Above Industry Average
Chesapeake Utilities Corporation Expect Growth Well Above Industry Average Earnings per Share 24 Capital Expenditures We target EPS Growth to be 7.75% to 9.5% over 5 years * * 2017 Adjusted Non-GAAP EPS of $2.89 (Excludes TCJA) Earnings per Share 2019 - 2022
Slide 25: Investment Performance Summary
$1.7 billion in assets - 79% regulated and 21% in unregulated complementary businesses Strong balance sheet and high retention rate for reinvestment $1.5 billion market capitalization Focused on safety, reliability and customer service Commitment to Sustainability and ESG CAGR in EPS of 8.8% (5 year
Slide 26: Celebrating Years on NYSE! Market Capitalization Growth
Celebrating 25 Years on NYSE! Market Capitalization Growth! $45 million to $1.5 billion 33 X Market Capitalization Growth
Slide 27: Appendix
Appendix
Slide 28: Reconciliation of GAAP to Adjusted Earnings First Quarter 19
Reconciliation of GAAP to Adjusted Earnings First Quarter 2019 28 2019 is off to a great start (whether measured from a GAAP or non-GAAP basis)
Slide 29: Capital Capacity Has Supported Our Growth
Capital Capacity Has Supported Our Growth Total Capitalization has More Than Doubled in Five Years 29 Equity/Permanent Capitalization 65.5% 70.6% 76.5% 71.1% 62.1% 65.5% Equity/Total Capitalization 54.0% 51.9% 55.4% 51.5% 45.4% 46.2% $556,148 $689,692 $805,010 $944,079 $1,177,559 Target Equity to To
Slide 30: Significant Regulatory Initiatives
Significant Regulatory Initiatives Recent Developments and Currently Planned Filings 9 30 Florida - FPU TCJA – Natural Gas (non-GRIP) (CFG and FPU) Company retains benefit: $1.3MM reserve reversal in Q1; annual benefit = $1.9MM TCJA – Natural Gas (GRIP) Customer rates were adjusted through annual ra
Slide 31: Peninsula Pipeline Northwest Florida Expansion
Peninsula Pipeline Northwest Florida Expansion 31 PPC 12” transmission project to serve CFG Escambia County, Florida expansion. Anchor loads: City of Pensacola and Ascend Performance Materials. 115,500 dt/day capacity.; 105,500 dt/day under contract. $44.3M total capital. $6.5M annual margin. 16% IR
Slide 32: Peninsula Pipeline New Smyrna Beach Pipeline
Peninsula Pipeline New Smyrna Beach Pipeline 32 PPC project to serve FPU. Increased pressure and volume for FPU growing distribution system. Resolved a pipeline integrity issue with former FGT lateral acquired by FPU in 2011. $9M investment. $1.4M annual margin. In-service Q4 - 2018
Slide 33: Peninsula Pipeline Western Palm Beach County Expansion
Peninsula Pipeline Western Palm Beach County Expansion 33 Four PPC projects to serve FPU distribution expansions in PBC. Resolves a pipeline integrity issue with former FGT lateral acquired by FPU in 2011. $30M total investment. $4.7M annual margin. Fully In-service – Q1 - 2020 Western Palm Beach Co
Slide 34: Callahan Pipeline – PPC Expansion Project
Callahan Pipeline – PPC Expansion Project Nassau County, Florida 34 Construct a Jointly owned intrastate pipeline with Peninsula Pipeline unit and Peoples Gas in Nassau County, Florida Joint intrastate transmission project between Peninsula Pipeline Company and Seacoast Gas Transmission (an EMERA Af
Slide 35: Callahan Pipeline Nassau County, Florida
Callahan Pipeline Nassau County, Florida 35
Slide 36: Jeff Householder President & CEO jhouseholder@chpk.com Beth Cooper Executive Vice President, CFO and Asst.
Jeff Householder President & CEO jhouseholder@chpk.com Beth Cooper Executive Vice President, CFO and Asst. Secretary bcooper@chpk.com Jim Moriarty Executive Vice President, General Counsel, Corporate Secretary and Chief Policy & Risk Officer jmoriarty@chpk.com Tom Mahn Vice President and Treasurer t
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