CHESAPEAKE UTILITIES CORPORATION REPORTS FIRST QUARTER 2019 RESULTS

May 08, 2019

  • Chesapeake Utilities delivers strong financial and operational results in the first quarter
  • GAAP net income increased by 6.7 percent to $28.7 million or $1.74 per share* compared to $1.64 per share for the first quarter of 2018
  • Adjusted (Non-GAAP)** earnings increased to $1.68 per share from $1.40 per share, representing 20.0 percent growth
  • Gross margin** increased $10.1 million, or 11.1 percent
  • Recently constructed pipeline projects contributed $4.3 million in gross margin and are expected to generate $24.0 million in gross margin for the year
  • December 2018 acquisitions of Marlin and Ohl contributed $2.8 million in gross margin and $1.6 million in operating income for the quarter.

Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK) (“Chesapeake Utilities” or the “Company”) today announced first quarter financial results. The Company’s net income for the quarter ended March 31, 2019 was $28.7 million, compared to $26.9 million for the same quarter of 2018. Earnings per share (“EPS”) for the quarter ended March 31, 2019 were $1.74, compared to $1.64 per share for the same quarter of 2018.

The higher earnings reflected the positive impact of recently completed and ongoing pipeline expansion projects, accretion from the Marlin Gas Transport, Inc. (“Marlin Gas Transport”) and R. F. Ohl Fuel Oil, Inc. (“Ohl”) acquisitions, organic growth in the natural gas distribution operations and higher propane retail margins per gallon.  Earnings also increased as a result of an order from the Florida Public Service Commission (“PSC”) authorizing the Company to retain a portion of the tax savings associated with lower federal tax rates resulting from the United States Tax Cuts and Jobs Act (“TCJA”) for certain of the Company’s natural gas distribution operations. These increases were partially offset by a $2.5 million margin decrease associated with lower energy consumption due to warmer weather in Florida and the absence of the “Bomb Cyclone” weather impact that sharply increased first quarter 2018 consumption within the Delmarva propane and natural gas distribution operations.   A detailed discussion of operating results begins on page 3.

“2019 is off to a great start, as demonstrated by our strong financial results and continued growth across our business segments.  In particular, our performance reflects increased contributions from natural gas service expansions, the Marlin Gas Transport and Ohl acquisitions, higher retail propane margins and the favorable outcomes of several regulatory initiatives.  Our employees’ ingenuity, dedication and commitment to our growth strategy propelled our success during the quarter,” stated Jeff Householder, President and Chief Executive Officer of Chesapeake Utilities Corporation. “We are excited about the future growth potential from these recent acquisitions and expansions.  We also continue to evaluate additional attractive growth opportunities, with the goal of transforming such opportunities into new investments that generate increased earnings growth and value for our shareholders.”

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