CHESAPEAKE UTILITIES CORPORATION REPORTS FIRST QUARTER 2020 RESULTS

  •  GAAP earnings per share (“EPS”)* was $1.76 for the first quarter of 2020 compared to $1.74 for the first quarter of 2019
  • Strong performance driven by continued growth in the Company’s businesses, coupled with two property sales, offset the negative impact of weather and the absence of regulatory relief from the pending Hurricane Michael limited proceeding
  • Natural gas expansion projects and customer growth generated $2.1 million in additional gross margin**
  • Boulden acquisition generated $1.9 million in additional gross margin
  • Warmer weather reduced current quarterly earnings by $0.19 per share compared to the first quarter of 2019 and by $0.23 per share compared to normal weather conditions
  • The Company has implemented its pandemic response plan including social distancing restrictions to limit the spread of COVID-19
  • The Company reaffirms its capital expenditure forecast and EPS guidance through 2022

Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK) (“Chesapeake Utilities” or the “Company”) today announced its first quarter financial results. The Company’s net income for the quarter ended March 31, 2020 was $28.9 million, compared to $28.7 million for the same quarter of 2019. Earnings per share for the quarter ended March 31, 2020 increased $0.02 to $1.76 per share, compared to the same quarter of 2019.

Earnings for the first quarter reflect increased gross margin from recently completed and ongoing pipeline expansion projects, incremental margins from the acquisition of certain assets of Boulden Inc. (“Boulden”), organic growth in the natural gas distribution operations and higher retail propane margins.  Weather during the first quarter, was 20 and 17 percent warmer than the first quarter of 2019 on the Delmarva Peninsula and in Ohio, respectively, which was a significant driver of lower consumption and reduced net income by $3.1 million, or $0.19 per share.  The weather impact was essentially offset by gains from two property sales totaling $2.3 million on an after tax basis.  The property sales related to operations which have been consolidated into the Company’s state-of-the-art Energy Lane campus and through the completion of the conversion of the piped propane system in Ocean City, Maryland to natural gas service.  Also absent from the Company’s first quarter results was regulatory relief associated with Hurricane Michael.  The Company filed a limited proceeding with the Florida Public Service Commission (“PSC”) in August 2019 and continues to engage in discussions with the Florida PSC staff and the Office of Public Counsel and expects a final ruling in the second half of 2020. Interim rates related to this limited proceeding were implemented in January 2020 and have been fully reserved pending final resolution with the Florida PSC.

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