Chesapeake Utilities : 2026 Q1 Conference Call Presentation

Published: 2026-05-06 21:38:06 ET CPK

Published on 05/06/2026 at 09:38 pm EDT

Thursday, May 7, 2026

Today's Presenters

Jeff Householder

Chair of the Board, President &

Chief Executive Officer

Beth Cooper

Executive Vice President and Chief Financial Officer

Jim Moriarty

Executive Vice President, General Counsel, Corporate Secretary &

Chief Policy and Risk Officer

Jeff Sylvester

Senior Vice President and Chief Operating Officer

16%

ADJ. NET INCOME GROWTH vs. Q1'25

11%

ADJ. EPS GROWTH vs. Q1'25

Q1 Diluted EPS1

INCREMENTAL ADJUSTED MARGIN:

$12.4M

TRANSMISSION & INFRASTRUCTURE

$10.6M

DISTRIBUTION GROWTH & USAGE

$47M

FCG RATE CASE REVENUE REQUEST

+11%

$2.47

$2.22

$122M

Q1'26 CAPITAL EXPENDITURES

5 Q1 2025 Q1 2026

1 See appendix for a reconciliation of non-GAAP metrics.

Average Residential Customer Growth

Q1'26 vs. Q1'25

DELMARVA FPU

FCG

2.2%

2.0%

3.3%

Q1 2026 CapEx In Line with Full-Year Guidance

$500.0

2026 Guidance

2026 Guidance Includes:

Q1 2026 Spend

$32M

$40M

$18M

$17M

$14M

$122M

$ in millions

$25 - $35M

$90 - $100M

$135 - $145M

$110 - $120M

Distribution

Ongoing distribution system expansion and reliability projects across our Delmarva & Florida service areas

Transmission

Infrastructure

Technology Unregulated

Worcester Resiliency Upgrade

Miami Inner Loop

Duncan Plains Data Center Pipeline

RNG Transportation Projects

Other Transmission Expansion Projects

FPU's GUARD & FCG's SAFE Programs

ESNG Capital Cost Surcharge Program

Electric Storm Protection Plan

Enterprise Resource Plan (ERP)

Additional technology, cybersecurity investments

2026 Guidance

$450 - $500M

Marlin Virtual Pipeline, Propane, Aspire Energy

Project Name

Status1

In-Service

Total CapEx

Adj. Gross Margin ($M)

2025A

2026E

2027E

Boynton Beach

In-Service

Q1 2025

~$21M

$3.0

$3.4

Indian River RNG

In-Service

Q1-Q2 2025

~$18M

$2.5

$5.4

$6.4

Brevard RNG

In-Service

~$6M

Medley RNG

In-Service

~$22M

New Smyrna Beach

In-Service

Q2 2025

~$15M

$1.6

$2.6

St. Cloud Expansion

In-Service

Q2 2025

~$20M

$2.9

$3.8

Wildlight Phase 1 & 2

In-Service

2023-2025

~$25M

$2.6

$4.3

Miami Inner Loop

In-Service

2H 2025

~$40M

$2.8

$7.6

Lake Mattie, Plant City

In-Service

Q3 2025

~$18M

$2.6

$4.3

Worcester Resiliency Upgrade (WRU)

In-Progress

Q1 2027

~$100M

$0.3

$1.5

$17.1

AEX Duncan Plains

In-Progress

2027

~$10M

$1.1

Totals:

~295M

$18.3

$32.9

$50.6

Transmission Projects Advance to Meet Demand

1 May reflect interim in-service status using Marlin Virtual Pipeline Services while construction is being completed.

FERC delays in Notice to Proceed permitting process in Fall 2025

Severe winter weather impacted site access and work hours throughout January / February

Building in additional time for FERC commissioning

Winter season reinforced need for LNG storage

500K-gal LNG Storage Facility in Bishopville, MD

$17.1M

FY 2027 MARGIN

Q1 2027

EXPECTED IN-SERVICE

$(0.10)

FY 2026 EPS IMPACT

Q4 2026

EXPECTED COMPLETION

Significant Upside with Future Growth Projects

DELMARVA REGIONAL ENHANCEMENT (DRE)

$75M, 20+ mile ESNG transmission expansion project to add firm capacity and improve system reliability; evaluating possibilities for further future expansion

ACCOMACK COUNTY EXPLORATION PROJECT

Determining feasibility, design and engineering to develop a potential new natural gas system on Virginia's Eastern Shore supported by a $6.5 million county grant

CAPE CANAVERAL LNG OPPORTUNITIES

Identifying alternative LNG storage sites and pipeline development opportunities to serve cruise, space and port industries

SOUTH FLORIDA CAPACITY EXPANSION

Assessing opportunities to increase natural gas transmission capacity in south Florida to serve the

10 significant demand growth

Date

Milestone

February 18, 2026

Notice of Intent filed

April 20, 2026

General rate case filed

Q3 2026

Interim rates (if approved) expected to be in effect

Q4 2026

Estimated hearing date

Q4 2026 / Early 2027

Final rates expected to be effective

Key Highlights of the Filing

Forward Test Year: Ending 12/31/2027

Adjusted 2027 Rate Base: $780 million

Interim rate request: $16 million

Revenue Requirement Request: $47 million

ROE Request: 11.25%

Overall ROR Request: 8.3%

Key Recovery Request Items:

Investment in reliability & efficiency

Inflationary O&M increases

Insurance, D&A, Property Taxes

TEAMMATES

CUSTOMERS

PARTNERS

COMMUNITIES

Members of CPK Leadership team volunteer at the Barnabas Center in Fernandina Beach, Florida (April 2026)

Building a Platform for Significant Scale

Transformation Themes

2026 Initiatives

Multi-Year ERP Project

Named for "One Company" approach to Centralize, Optimize, Reimagine & Energize

SAP S4Hana for Asset Management, Supply Chain, Human Resources & Finance

System Go-Live targeted for Q2 2027

Expected capital investment of $75 million in 2026

Modernizing interactions through automation and digital platforms

CUSTOMER EXPERIENCE

Enterprise Committees for risk management

& governance

OPERATIONAL EXCELLENCE

Project Insight unifying and improving data access and analytics

DIGITAL AGILITY

People-centered talent development and change management

EMPLOYEE EXPERIENCE

13 FINANCIAL

MODERNIZATION

$ millions except per share amounts

Adjusted Gross Margin1

Adjusted Net Income1

Adjusted Earnings Per Share1

+13%

$206.2

$182.4

Q1 2026

Q1 2025

+11%

$2.47

$2.22

Q1 2026

Q1 2025

+16%

$59.3

$51.1

Q1 2026

Q1 2025

1 See appendix for a reconciliation of non-GAAP metrics.

Adjusted Earnings Per Share1

$0.21

$0.17

$0.14

$0.13

$0.06

$0.04 $0.03

$(0.20)

$(0.09)

$(0.05)

$(0.04) $(0.02)

$(0.09)

$(0.04)

$2.47

$2.22

Q1 2025

Natural

Infra.

Usage

Regulatory

Natural

Aspire

Off-

Increased

Credit, Interest

Other Q1 2026

Adj. EPS

Gas Trans. Expansions

Program Growth

from Colder Weather

Rate Increases

Gas Dist. Growth

Perf.

System Gas Sales Gain

Payroll and Benefits

O&M Expense

D&A

Collections, Expense Customer

Service

Dilution

Adj. EPS

1 See appendix for a reconciliation of non-GAAP metrics.

$ millions except per share amounts

Regulated Adjusted Gross Margin1 Unregulated Adjusted Gross Margin1

Q1 2026

$147.7

Q1 2025

$128.1

+ 15%

Q1 2026

$58.6

Q1 2025

$54.5

+8%

$19.6 million increase driven by:

Transmission system expansions

Infrastructure program growth

Rate case outcomes for MD, DE, FL Electric

Distribution growth & colder weather

16 • $10.6 million increase in Operating Income

$4.1 million increase driven by:

Increased propane customer consumption

Increased Aspire rates and gathering fees

Higher Aspire customer consumption

$2.0 million increase in Operating Income

1See appendix for a reconciliation of non-GAAP metrics.

107 thousand shares issued throughout Q1 2026

24,004,761 shares outstanding as of 5/4/2026

Equity Issuances & Shares Outstanding

Total Capitalization

74% of total liquidity available as of 3/31/2026

Out of total capacity of $$793.3M million2

Debt & Liquidity Update

3/31/2026

12/31/2025

40%

$1,325

41%

$1,327

Long-Term

Debt

10%

$334

$293

Short-Term

Debt1

50%

$1,652

50%

$1,599

Equity

$3,311

$3,218

$ in millions

EQUITY: Expect to issue ~$60M through existing ATM and waiver programs

DEBT: Expect to issue $200 - $250M

First tranche of FCG debt due in 2026; expected to be refinanced at lower rates

2026 Financing Updates

1 Short-term debt for both periods includes short-term borrowing as well as the current portion of long-term debt.

2 Total liquidity includes the $450M Revolver and $343M of Private Placement Shelf Agreements.

Dividend Policy Drives Increased Shareholder Value

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

$1.48

$1.32

$1.22

$1.76

$1.62

$1.92

$2.14

$2.36

$2.56

$2.74

$2.94

10-Year Dividend CAGR of 9.2%

Annualized Dividend Per Share

Performance Track Record of Strong Earnings Growth

9.1% CAGR since 2016

45 - 50% Target Payout Ratio:

9.2% Dividend Growth CAGR

50 - 55% Earnings Reinvestment

Supports robust capital program

Dividend and Earnings Growth Drive Industry-Leading

Annual Shareholder Return

~10.2%+ 10-Year CAGR1

12%

11%

10%

Annual Growth Rate

1 Calculated through 12/31/2025.

Building on track record of 19 consecutive years of growth and 9.1% EPS CAGR

$8.00

$1.15 $1.29 $1.32 $1.43

$1.82 $1.91 $1.99

$2.26 $2.47

$2.72 $2.86 $2.89

$3.72

$3.47

$4.21

19 Years of Consecutive Earnings Growth

$4.73

$5.04

9.1% EPS CAGR

$5.31 $5.39

$6.01

2028E

$7.75

2028 EPS

Guidance

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

12%

27%

14%

10%

20%

13%

12%

Annual

Growth Rate

1 See appendix for a reconciliation of non-GAAP metrics.

Delivering on Our Promises

Focusing on the Three Pillars of Growth

Maintaining Our Financial Discipline

Top-Quartile Growth

& Total Shareholder Return

"As my chapter as CFO of this great organization comes to an end, CPK stands ready to build on a secure foundation, powered by the next set of leaders who will imprint

their unique stamp on a transforming company that continues to reach new heights."

--Beth W. Cooper, EVP and CFO

Chesapeake Utilities Corporation Confidential 2025

Additional Information

Bullet Maturities

Long-Term Debt Maturity Profile

$ in millions

$212

$197

$157

$152

$159

$58

$100

$32

$100

$35

$90

$62

$100

$57

$100

$59

$160

$37

$150

$62

$135

$132

First tranche of FCG debt due in 2026; refinancing expected to generate interest rate savings

$111

$59

$52

$43

22 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037+

GAAP to Non-GAAP Reconciliation: Consolidated

Year-to-Date Results

YTD 2026 YTD 2025 $ %

$ 353.1 $ 298.7 $ 54.4 18%

(146.9) (116.3) (30.6) 26%

(27.5) (22.7) (4.8) 21%

(21.5) (22.5) 1.0 (4)%

$ 157.2 $ 137.2 $ 20.0 15%

27.5 22.7 4.8 21%

21.5 22.5 (1.0) (4)%

$ 206.2 $ 182.4 $ 23.8 13%

First Quarter Results

$ in millions

Q1 2026

Q1 2025

Consolidated Reconciliation

GAAP Operating Revenues

$ 353.1

$ 298.7

$ 54.4

18%

Cost of Sales

Nat Gas, Propane, & Electric

(146.9)

(116.3)

(30.6)

26%

Operating Expense1

(27.5)

(22.7)

(4.8)

21%

D&A

(21.5)

(22.5)

1.0

(4)%

GAAP Gross Margin

$ 157.2

$ 137.2

$ 20.0

15%

Add Back: Operating Expense1

27.5

22.7

4.8

21%

Add Back: D&A

21.5

22.5

(1.0)

(4)%

Adjusted Gross Margin

$ 206.2

$ 182.4

$ 23.8

13%

Note: D&A refers to Depreciation and Amortization Expense.

1 Operations & maintenance expenses within the Consolidated Statements of Income are presented in accordance with regulatory requirements and to provide comparability within the industry. Operations & maintenance expenses which are deemed to be directly attributable to revenue producing activities have been separately presented above in order to calculate Gross Margin as defined under US GAAP. See Chesapeake Utilities' Annual Report on Form 10-K for the year ended December 31, 2025 for additional details.

Year-to-Date Results

YTD 2026 YTD 2025 $ %

$ 249.3 $ 199.6 $ 49.7 25%

(101.6) (71.5) (30.1) 42%

(16.7) (13.3) (3.4) 26%

(16.1) (17.6) 1.5 (9)%

$ 114.9 $ 97.2 $ 17.7 18%

16.7 13.3 3.4 26%

16.1 17.6 (1.5) (9)%

$ 147.7 $ 128.1 $ 19.6 15%

YTD 2026 YTD 2025 $ %

$ 113.7 $ 106.7 $ 7.0 7%

(55.1) (52.2) (2.9) 6%

(10.9) (9.7) (1.2) 12%

(5.4) (4.9) (0.5) 10%

$ 42.3 $ 39.9 $ 2.4 6%

10.9 9.7 1.2 12%

5.4 4.9 0.5 10%

$ 58.6 $ 54.5 $ 4.1 8%

GAAP to Non-GAAP Reconciliation: Segment Results

$ in millions

First Quarter Results

Regulated Segment

Q1 2026

Q1 2025

GAAP Operating Revenues

$ 249.3

$ 199.6

$ 49.7

25%

Cost of Sales

Nat Gas, Propane, & Electric

(101.6)

(71.5)

(30.1)

42%

Operating Expense1

(16.7)

(13.3)

(3.4)

26%

D&A

(16.1)

(17.6)

1.5

(9)%

GAAP Gross Margin

$ 114.9

$ 97.2

$ 17.7

18%

Add Back: Operating Expense1

16.7

13.3

3.4

26%

Add Back: D&A

16.1

17.6

(1.5)

(9)%

Adjusted Gross Margin

$ 147.7

$ 128.1

$ 19.6

15%

Q1 2026

Q1 2025

Unregulated Segment

GAAP Operating Revenues $ 113.7 $ 106.7 $ 7.0 7%

Cost of Sales

Nat Gas, Propane, & Electric

(55.1)

(52.2)

(2.9)

Operating Expense1

(10.9)

(9.7)

(1.2)

12%

D&A

(5.4)

(4.9)

(0.5)

10%

GAAP Gross Margin

$ 42.3

$ 39.9

$ 2.4

Add Back: Operating Expense1

10.9

9.7

1.2

12%

Add Back: D&A

5.4

4.9

0.5

10%

Adjusted Gross Margin

$ 58.6

$ 54.5

$ 4.1

Note: D&A refers to Depreciation and Amortization Expense.

GAAP to Non-GAAP Reconciliation: Adj. Net Income & EPS

Year-to-Date Results

YTD 2026 YTD 2025 $ %

$ 59.3 $ 50.9 $ 8.4 17%

$ - $ 0.2 $ (0.2) (100)%

$ 59.3 $ 51.1 $ 8.2 16%

24,053 23,041

$2.47 $2.21 $ 0.25 12%

- 0.01 (0.01) (100)%

$2.47 $2.22 $ 0.25 11%

First Quarter Results

$ in millions except per-share amounts shares in thousands

Q1 2026

Q1 2025

Non-GAAP Reconciliation: Net Income /EPS

$ 59.3

$ 50.9

$ 8.4

17%

$ -

$ 0.2

$ (0.2)

(100)%

$ 59.3

$ 51.1

$ 8.2

16%

GAAP Net Income

FCG Transaction+Transition Expenses1

Adjusted Net Income

Diluted Weighted Avg. Common Shares Outstanding

24,053

23,041

GAAP Diluted EPS $2.47 $2.21 $ 0.26 12%

FCG Transaction+Transition Expenses1 - 0.01 (0.01) (100)%

Adjusted Diluted EPS $2.47 $2.22 $ 0.25 11%

1 Transaction and transition-related expenses represent costs incurred attributable to the acquisition and integration of FCG including, but not limited to, transition services, consulting, system integration, rebranding and legal fees.

Disclaimer

Chesapeake Utilities Corporation published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 01:37 UTC.