Chesapeake Utilities (CPK) Investor presentation summary

Business overview and growth strategy

• Operates both regulated and unregulated energy businesses across multiple states, with a $3.0B market cap and $3.6B in total assets as of year-end 2024.

• 85% of assets are regulated, serving over 450,000 distribution customers.

• Growth strategy is built on three pillars: prudent capital deployment, proactive regulatory management, and continual business transformation.

• Focus on operational excellence and maintaining top-quartile performance in earnings and shareholder returns.

• 20-year CAGR for adjusted EPS is 8%, and for dividends per share is 6%.

Financial performance and guidance

• Q1 2025 adjusted gross margin grew 11% to $182.4M, adjusted net income rose 9% to $51.1M, and adjusted EPS increased 6% to $2.22.

• 2025 adjusted EPS guidance is $6.15–$6.35, with a long-term target of $7.75–$8.00 by 2028.

• 2024–2028 capital expenditure guidance is $1.5B–$1.8B, with $700M+ in organic capital investments planned for 2024–2025.

• Annualized dividend per share for 2025 is $2.74, reflecting a 7% annual increase and a 10-year CAGR of 9%.

• Maintains a target capital structure of 50% debt and 50% equity, with investment grade credit ratings.

Capital investment and project pipeline

• Identified $1.4B in capital projects supporting the 5-year CapEx plan, with over 70% of spend having regulatory approval or recovery mechanisms.

• Major projects include the $100M Worcester Resiliency Upgrade, multiple pipeline expansions, and RNG/LNG projects.

• Transmission projects are expected to drive significant margin growth in 2H 2025 and beyond.

• Business development focuses on expanding service in high-growth areas and new opportunities in data centers and RNG.