Chesapeake Utilities Corporation · NYSE:CPK
Chesapeake Utilities — AGA Financial Forum 2022
30 slides from Chesapeake Utilities's conference presentation, May 17, 2022
Slide 1: AGA Financial Forum: Growth, ESG, Business Transformation
Exhibit 99.1 AGA Financial Forum Growth Ÿ ESG Ÿ Business Transformation MIAMI BEACH, FLORIDA MAY 17-19, 2022
Slide 2: Today's Presenters
Today’s Presenters Jeff Householder President, Chief Executive Officer Beth Cooper Executive Vice President, Chief Financial Officer, Treasurer and Assistant Corporate Secretary Jim Moriarty Executive Vice President, General Counsel, Corporate Secretary and Chief Policy and Risk Officer Alex Whitela
Slide 3: Forward Looking Statements and Other Statements
Forward Looking Statements and Other Statements 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 s
Slide 4: Chesapeake Utilities Overview
Chesapeake Utilities Overview • 160+ – Years delivering energy • ~1,000 – Employees at Dec. 31, 2021 • ~300,000 – Distribution customers • $2.1 billion – Total Assets at March 31, 2022 th • 15 - Consecutive year of earnings growth* • 2x – Doubled Net Income over last 6 years st • 1 – RNG transportat
Slide 5: Diversified Portfolio of Energy Solutions With an Expanding Footprint
Diversified Portfolio of Energy Solutions With an Expanding Footprint Business Line States Served Regulated Energy Segment Natural Gas Transmission DE, FL, MD, PA, OH Natural Gas Distribution DE, MD, FL Electric Distribution FL Unregulated Energy Segment Propane Distribution PA, DE, MD, VA, NC, SC,
Slide 6: Capital Investment Has Driven Earnings Growth
Capital Investment Has Driven Earnings Growth Historical Capital Expenditures and Acquisitions Last 10 Years: $1.75 Billion Since FPU Acquisition: $1.99 Billion $283 $228 $199 $195 $196 $192 $169 $154 $108 $98 $78 $49 $44 Cap Ex Acquisitions Hurricane Michael 6 Amounts in chart reflected in millions
Slide 7: Earnings Growth Supporting Dividend Growth
Earnings Growth Supporting Dividend Growth Chesapeake’s Board Approved an 11.5% Increase to the Annualized Dividend Per Share 2021 2022 Annualized Dividends Diluted Earnings Per Share +12.4% +11.5% Per Share from Continuing Operations Increase Increase $2.14 $1.92 $4.73 $1.76 $1.62 $4.21 $1.48 $3.72
Slide 8: Solid Return on Equity Track Record
Solid Return on Equity Track Record th Consistently exceeding peer 75 percentile Return on Equity 14% 12.7% 13% 12.6% 12.2% 12.2% 12.1% 12.0% 11.8% 11.7% 11.3% 11.7% 11.3% 12% 11.6% 11.2% 11.3% 11.3% 11.0% 11.0% 11% th * 10-Year Peer 75 Percentile – 9.9% 10% 9% * 10-Year Peer Median – 8.6% 8% CPK Pe
Slide 9: Financial Metrics Performance Compared to Peer Group
Financial Metrics Performance Chesapeake Percentiles Compared CPK Results to Performance Peer Group 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Performance Metrics CapEx / Total 13.3% 14.9% 18.1% 19.9% 81% 92% 100% 100% Capitalization EPS Growth (CAGR) 11.0% 11.1% 10.5% 9.4% 83% 90% 92% 90% Return on Equity 1
Slide 10: Capital Structure Overview
Capital Structure Overview Strong Balance Sheet to Support Growth 3/31/2022 12/31/2021 Long-Term Debt Avg. Interest Rate: 3.41% Stockholders' equity $ 8 05,512 $ 7 74,130 $50M: 2.95% issued in Long-term debt, net of current maturities 5 97,878 5 49,903 March 2022 Total permanent capitalization $ 1,4
Slide 11: CPK Guidance Remains Unchanged
CPK Guidance Remains Unchanged Capital Expenditures Diluted Earnings Per Share from Continuing Operations Guidance through 2025 and for 2022 Guidance through 2025 $750 million to $1.0 billion $6.25 $6.05 $4.73 $4.21 $3.72 $3.68 $3.47 $2.77 $175 million to $200 million $228 million in 2021 Target For
Slide 12: Mission and Vision
CHESAPEAKE UTILITIES Mission and Vision Mission: We deliver energy that makes life better for the people and communities we serve. Vision: We will be a leader in delivering energy that contributes to a sustainable future. 12
Slide 13: Looking Forward: Key Focus Areas to Sustain Performance
Looking Forward Key Focus Areas to Sustain Performance BUSINESS GROWTH ESG TRANSFORMATION 13
Slide 14: Growth
>" CHESAPEAKE Growth
Slide 15: Platforms for Growth
Platforms for Growth • 4-5%+ residential natural gas customer growth on Delmarva and Florida driving investment. Organic Growth: • Additional pipeline replacement, system improvement, and peak management opportunities. • Smaller scope projects in selected jurisdictions. • Partnership or joint projec
Slide 16: Major Projects and Initiatives
Major Projects and Initiatives Key Projects Driving Adjusted Gross Margin Incremental Adjusted Gross Margin from Major Projects 2021: $15.6 million 2022: $20.4 million 2023: $7.0 million _________________ Total: $43.0 million over 2020 16
Slide 17: Significant Gas Transmission Projects
Significant Gas Transmission Projects Capital Fully In Annual Adjusted Gross Project Investment Service Margin Estimate 2021 Del-Mar Energy Pathway* $60.1 million $6.9 million Fourth Quarter 2021 West Palm Beach County* $28.9 million $5.2 million Fourth Quarter 2021 Guernsey Power Station $6.5 milli
Slide 18: Del-Mar Energy Pathway
Del-Mar Energy Pathway • Extension and looping of the Eastern Shore Natural Gas (ESNG) FERC regulated Delmarva transmission pipeline to serve Somerset County, MD. • First natural gas pipeline in the county. • ESNG serves University of Maryland DE Eastern Shore and Eastern Correctional Institution di
Slide 19: Beachside Pipeline Expansion
Beachside Pipeline Expansion • Peninsula Pipeline to provide incremental firm service in Indian River County, Florida, to support Florida City Gas’ growth along the Indian River Shore barrier island. • Pipeline from the Sebastian, Florida, area east under the Intercoastal Waterway and southward on t
Slide 20: North Ocean City Connector
North Ocean City Connector • Chesapeake Utilities is permitting an approximate six-mile pipeline to provide a second system feed from our Delaware distribution system to our Ocean City, MD system (Sandpiper Energy). • Capital investment of $6.3M with project expected to begin construction in Q2 2022
Slide 21: Regulatory Initiatives Supporting Growth
Regulatory Initiatives Supporting Growth ➢ Florida Natural Gas Rate Filing ▪ Consolidates tariff provisions in Four CPK Florida gas utilities. ▪ Proposed phase in consolidation of base rates. ▪ GRIP investment to date into rate base. ▪ Interim rates expected this summer, case finalized Q1 2023. ➢ Fl
Slide 22: ESG
>" CHESAPEAKE ESG
Slide 23: Chesapeake Utilities Corporate Values
Chesapeake Utilities Corporate Values Care Integrity Excellence We put people first. We tell the truth. We achieve great things together. Keep them safe. Build Ensure moral and trusting relationships. ethical principles drive our Hold each other Foster a culture of equity, decision-making. Do the ac
Slide 24: ESG Initiatives: Committed to Strong Corporate Citizenship
ESG Initiatives Committed to Strong Corporate Citizenship • Published inaugural sustainability report • Established Environmental Sustainability Office and internal ESG Committee to advance our ESG strategy • Greenhouse gas emissions reduced by 3,760 mtCO e from 2019 to 2020, with independent 2 veri
Slide 25: Corporate Culture: Recent Awards and Recognitions
Corporate Culture Recent Awards and Recognitions Internal Employee Resource Groups Named Top Work Place in US for 2022, Top Work Place in Delaware for 10 Years in a Row Chesapeake Utilities named 2021 Best Company with Over 50 People. Sharp Energy named 2021 Best Propane Company. CPK Named 2021 Best
Slide 26: Business Transformation
>" CHESAPEAKE Business Transformation
Slide 27: Business Transformation
Business Transformation • People • Safety, EDI, learning and skill development, reimagined workplace, Gallup assisted employee engagement, wellness programs • Processes • Simplify, standardize, automate. Continuous improvement. Change management. • Technology • 5-year technology roadmap approved by
Slide 28: Committed to Superior Performance With a Foundation for Sustainable Growth
Committed to Superior Performance With a Foundation for Sustainable Growth Track Record Energized Team Strong Foundation for Growth Sustainable Growth Financial Discipline Platforms for Growth Financial Objectives in Support of Increased Shareholder Value: ESG ✓ Investing $750 million to $1 billion
Slide 29: Questions?
>" CHESAPEAKE Questions?
Slide 30: Thank You for Joining
>" CHESAPEAKE Thank You for Joining