Chesapeake Utilities Corporation · NYSE:CPK
Chesapeake Utilities — Non-Deal Roadshow (September 2020)
28 slides from Chesapeake Utilities's roadshow presentation, Sep 15, 2020
Slide 1: Janney Montgomery Scott Virtual Road Show
Janney Montgomery Scott Virtual Road Show September 15, 2020 Driven By Energy Commitment Growth Leadership Safety Sustainability Solutions Strength Team Service Performance Community Value
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 Transmission Delaware, Maryland, Pennsylvania, Florida Midstream Natural Gas Distribution Energy Delaware, Maryland, Florida 38% 81% Regulated Electric Distribution Florida Propane Distribution and AutoGas Delaware, Maryland, Pennsyl
Slide 4: Driven by Energy. Delivering Energy
Driven by Energy. Delivering Energy Annual Five Year Performance thru June 30, 2020 Cap Ex/Total Capitalization 19.8% EPS Growth 8.4% Dividend Growth 8.9% Earnings Retention 56.9% Return on Equity 11.7% Annual Shareholder Return 11.3% June 30, 2020 Shareholder Return Return Earnings on Equity 11.3%
Slide 5: Commitment to Employees, Customers and Communities
Commitment to Employees, Customers and Communities Employees • Premium pay to field employees through June • Chrome books for children of employees to do their school work • Social distancing protocols in effect along with personal protective equipment, where appropriate • Employees working remotely
Slide 6: Second Quarter Overview
Second Quarter Overview Earnings Per Share Second Quarter Year-to-Date 2020 2019 2020 2019 $ 0.66 $ 0.50 $ 2.42 $ 2.25 Strong performance for the first half of 2020 : • Continued growth in the Company’s businesses • Addition of the Boulden acquisition • Retail propane margins per gallon • Expense ma
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 respon
Slide 8: Capital Expenditures Forecast Estimate for 2020
Capital Expenditures Forecast Estimate for 2020 Forecast for Fiscal 2020 (dollars in thousands) Low High Regulated Energy: Natural gas distribution $ 75,000 $ 80,000 Natural gas transmission 70,000 80,000 Electric distribution 5,000 7,000 Total Regulated Energy 150,000 167,000 Unregulated Energy: Pr
Slide 9: Recent and Current System Expansions
Recent and Current System Expansions Natural Gas Services to New Territories Recently Completed Projects Underway ESNG 2017 Northwest Florida System Expansion Expansion Project (Delmarva Del-Mar Energy Peninsula West Palm Beach County Expansion Pathway (Florida) Expansion Full Service Q3 Full Servic
Slide 10: Major Projects and Initiatives
Major Projects and Initiatives Gross Margin Contributions
Slide 11: Elkton Gas Company Summary of Transaction
Elkton Gas Company Summary of Transaction Acquisition Completed Legend
Slide 12: 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 13: CPK's Renewable Natural Gas Proposition Presents Multiple Investment Opportunities
CPK’s Renewable Natural Gas Proposition Presents Multiple Investment Opportunities Distribution Operations Transmission Operations Marlin Potential investment Additional Interstate pipeline Investment in gas processing transportation interconnects for equipment which we equipment to receipt of renew
Slide 14: Key Regulatory Initiatives
Key Regulatory Initiatives Hurricane Michael Limited Proceeding • October 2018 Hurricane Michael –Northwest Florida • August 2019 FPU filed limited proceeding with Florida PSC • Fourth Quarter 2019 FPU and the Office of Public Counsel filed a request to approve interim rates • FPU continues to work
Slide 15: Capital Capacity to Support Future Growth
Capital Capacity to Support Future Growth (in thousands) Stockholders’ Equity Long-Term Debt Short-Term Debt * * Equity/Permanent 70.6% 76.5% 71.1% 62.1% 56.1% 58.0% Capitalization Equity/Total 51.9% 55.4% 51.5% 45.4% 43.4% 44.8% Capitalization **Short-term Debt Includes Current Portion of Long-Term
Slide 16: ESG Stewardship
ESG Stewardship We remain steadfast in our commitment to environmental, social and governance stewardship. The key to our success is our strong culture that fully engages all of our team members. We are a responsible company that promotes safety, integrity, accountability and reliability Our diverse
Slide 17: ESG At Our Core
ESG At Our Core Women in Utilities Webinar – Be Extraordinary Everyday by Demonstrating Diversity. Delivering Natural Gas To Somerset County, Maryland, To Support Environmentally Conscious Economic Growth The Somerset County Expansion Project will deliver natural gas service to Somerset County, Mary
Slide 18: Driving Our Actions
Driving Our Actions Focus on Shareholder Value and Growth High standards of safety and operational performance. Optimize growth opportunities within rate, customer demand and market constraints Maintain a regulated/ unregulated business mix designed to produce better than utility returns and an acce
Slide 19: Capital Investment Guidance
Capital Investment Guidance Continued Record Investment in Our Business to Drive Growth Target 2018 – 2022 : $750 million—$1 billion *We will continue to update this forecast as we move through the year, including any capital deployment delays resulting from COVID-19. Management reaffirms its five y
Slide 20: Reaffirm Current Earnings Guidance
Reaffirm Current Earnings Guidance 2022 EPS Target Range of $4.70—$4.90 2019 2022 Guidance: 2022 Guidance: Pre 2/26/20 Post 2/26/20 On February 26, 2020, we updated our EPS guidance based on our current strategic plan planned investments and growth prospects. We are continuing to monitor the COVID-1
Slide 21: Chesapeake Utilities Closing Remarks
Chesapeake Utilities Closing Remarks Strong earnings for the second quarter despite the uncertain challenges of the COVID-19 pandemic. Engaged in expense management across the Company and operational efficiency in this new business normal situation. Excited about our recently completed Elkton Gas ac
Slide 22: Thank You!
Thank You! 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 and Risk Officer jmoriarty@chpk.com Thomas E. Mahn Vice Presi
Slide 23: Appendix: Long-Term Track Record
Appendix Long-Term Track Record Performance Metrics Driving Shareholder Return
Slide 24: Continuing to Build for the Future
Continuing to Build for the Future Organic Growth Opportunities Supplemented with Targeted Acquisitions Historical Cap Ex & Acquisitions In Millions Cumulative Cap Ex since 2015: $1.037 Billion Cumulative Cap Ex since 2009: $1.568 Billion Cap Ex Acquisitions
Slide 25: 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 26: Strong Track Record of Dividend Growth
Strong Track Record of Dividend Growth Driven by Earnings Growth 5 year CAGR = 8.9% 10 year CAGR = 7.2% 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 9.9% with our
Slide 27: Solid Track Record of Higher Return on Equity
Solid Track Record of Higher Return on Equity (ROE) Consistently Exceeding the Peer Median and 75th Percentile Return on Equity For the periods ending December 31, 2019 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% 10.08% * Normal Comp
Slide 28: Key Performance Metrics
Key Performance Metrics Financial Discipline Driving Growth and Performance Chesapeake Percentiles compared to Performance Metrics Chesapeake Results Performance Peer Group For periods ending 06/30/20 unless otherwise noted 1 Year 3 Year 5 Year 10 Year 1 Year 3 Year 5 Year 10 Year Capital Expenditur
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