Chesapeake Utilities (CPK) Investor presentation summary

Business overview and growth strategy

• Operates a diversified portfolio of regulated and unregulated energy delivery businesses across multiple states, serving approximately 440,000 customers with a $2.7B market cap and over 160 years of history.

• Focuses on both organic growth and strategic acquisitions, with significant investments in infrastructure and technology to support expansion in high-growth areas like Delmarva and Florida.

• Maintains a proactive regulatory approach and entrepreneurial culture, leveraging geographic diversity and innovative solutions to capture new opportunities.

• Recent acquisitions, such as Florida City Gas, have expanded market reach and created new growth avenues, particularly in LNG, space, and travel industries.

• Strong customer demand and above-industry service additions drive continued investment and expansion.

Financial performance and capital investment

• Achieved over 10x asset and adjusted net income growth since 2003, with a 20-year adjusted EPS CAGR of 8% and consistently top-quartile ROEs.

• 2024 YTD capital expenditures reached $160M, with full-year guidance of $300M–$360M and a 5-year CapEx plan of $1.5B–$1.8B.

• Adjusted gross margin grew 27% year-over-year in Q2 2024, driving a 19% increase in adjusted net income and reaffirming EPS guidance for 2024–2028.

• Balance sheet remains strong, with $491M in available liquidity and minimal debt maturities in the next two years, supporting ongoing investment.

• Dividend has increased for 21 consecutive years, with a 10-year CAGR of 9% and a targeted payout ratio of 45–50%.

Key projects and operational highlights

• Major capital projects underway include expansions in Delmarva and Florida, RNG infrastructure, and the $80M Worcester Resiliency Upgrade LNG storage facility.

• Regulatory approvals secured for multiple Florida transmission and RNG projects, totaling over $150M in recent investments.

• Unregulated business growth driven by propane distribution, CNG services, and sustainable investments, including new RNG facilities and hydrogen initiatives.

• Business transformation efforts include SAP system implementation and operational synergies, especially in Florida City Gas integration.

• Community engagement and sustainability initiatives highlighted by safety programs, environmental stewardship, and local partnerships.