CHESAPEAKE UTILITIES CORPORATION REPORTS SECOND QUARTER 2019 RESULTS

August 08, 2019

  • Chesapeake Utilities continues to generate strong financial and operational results
  • Second quarter GAAP earnings increased to $0.50 per share* from $0.39, over prior year second quarter
  • Year-to-date GAAP earnings increased to $2.25 per share from $2.03, over prior year
  • Eastern Shore and Northwest Florida pipeline expansion projects contributed $3.7 million and $8.1 million in additional gross margin** during the second quarter and year-to-date
  • December 2018 asset acquisitions of Marlin Gas Transport and Ohl contributed $1.1 million and $3.9 million in gross margin for the second quarter and year-to-date, respectively
  • Future growth opportunities, including West Palm Beach expansion, Del Mar Energy Pathway and Callahan Intrastate Pipeline are expected to generate $9.9 million in incremental margin in 2020

Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK) (“Chesapeake Utilities” or the “Company”) today announced second quarter financial results. The Company’s net income for the quarter ended June 30, 2019 was $8.3 million, compared to $6.4 million for the same quarter of 2018. Earnings per share (“EPS”) for the quarter ended June 30, 2019 were $0.50, compared to $0.39 per share for the same quarter of 2018.  Higher earnings for the second quarter primarily reflect contributions from recently completed and ongoing pipeline expansion projects, organic growth in the natural gas distribution operations and lower operating expenses.  These increases were partially offset by lower results from Peninsula Energy Services Company, Inc. (“PESCO”) and higher interest expense. The absence of a one-time non-recurring severance charge recorded in the second quarter of 2018, was offset by the impact of warmer weather in the second quarter of 2019.

For the six months ended June 30, 2019, the Company reported net income of $37.0 million, or $2.25 per share. This represents an increase of $3.7 million or $0.22 per share compared to the same period in 2018. Year-to-date earnings were impacted by the factors noted above, along with incremental margin from the acquisition of certain assets of Marlin Gas Transport, Inc. (“Marlin Gas Transport”) and R. F. Ohl Fuel Oil, Inc. (“Ohl”), a Florida Public Service Commission (“PSC”) regulatory order that enabled the Company to retain tax savings associated with lower federal tax rates resulting from the United States Tax Cuts and Jobs Act (“TCJA”) in several natural gas distribution operations and continued growth in gross margin from Aspire Energy of Ohio (“Aspire Energy”). These increases were partially offset by lower results for PESCO, lower energy consumption due to warmer weather in the Company’s service territories, and higher interest expense.  A detailed discussion of operating results begins on page 3.

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