CHESAPEAKE UTILITIES CORPORATION REPORTS THIRD QUARTER 2019 RESULTS

November 07, 2019

  • GAAP earnings per share* were $0.34 for the third quarter 2019 and $2.59 for the nine months ended September 30, 2019
  • GAAP earnings from continuing operations increased $0.01 per share for the third quarter 2019 and $0.29 per share year-to-date compared to the same periods in 2018
  • Eastern Shore and Peninsula Pipeline expansion projects generated $2.3 million and $10.5 million in additional gross margin** during the third quarter and year-to-date
  • December 2018 asset acquisitions of Marlin Gas Transport and Ohl contributed $1.1 million and $5.0 million in gross margin for the third quarter and year-to-date
  • The Company has entered into agreements to sell a majority of its natural gas marketing business
  • In October 2019, the Company reached commercial terms on the anticipated issuance of $70.0 million of 2.98 percent uncollateralized senior notes in December 2019
  • Eastern Shore filed an application to include renewable natural gas, supporting safe, reliable and cleaner energy transportation

Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK) (“Chesapeake Utilities” or the “Company”) today announced third quarter financial results. The Company’s net income for the quarter ended September 30, 2019 was $5.6 million, compared to $5.5 million for the same quarter of 2018. Consolidated earnings per share (“EPS”) for both quarters ended September 30, 2019 and 2018 was $0.34 per share. Net income for the nine months ended September 30, 2019 was $42.6 million, or $2.59 per share, compared to $38.8 million, or $2.36 per share, for the same period in 2018.

On October 9, 2019, the Company announced its exit from the natural gas marketing business through the sale of the majority of the assets of Peninsula Energy Services Company, Inc. (PESCO), the Company’s natural gas marketing subsidiary.  As a result of this decision and announcement, PESCO’s results for all periods presented have been separately reported as discontinued operations and its assets and liabilities have been reclassified as held for sale.  Additional details on the transactions to sell PESCO’s assets and contracts are included on page 8 of this press release.

The Company’s income from continuing operations for the quarter ended September 30, 2019 was $6.2 million, compared to $6.1 million for the same quarter of 2018. EPS from continuing operations for the quarter ended September 30, 2019 increased $0.01 to $0.38 per share compared to the same quarter of 2018.  Higher earnings for the third quarter primarily reflect increased gross margin from recently completed and ongoing pipeline expansion projects, organic growth in the natural gas distribution operations and higher retail propane margins per gallon. These increases were largely offset by an increase in operating expenses and higher interest expense associated with financing the Company’s expansion projects.

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