CHESAPEAKE UTILITIES CORPORATION REPORTS SECOND QUARTER 2020 RESULTS

  • Earnings per share (“EPS”)* was $0.66 for the second quarter of 2020 compared to $0.50 for the second quarter of 2019
  • Year-to-date EPS increased to $2.42 from $2.25, for the prior year period
  • Second quarter and year-to-date EPS from continuing operations was $0.64 and $2.41, respectively, compared to $0.54 and $2.30, respectively, for the corresponding periods in 2019
  • Strong performance for the first half of 2020 driven by continued growth in the Company’s businesses, the addition of the Boulden acquisition, expense management and gains from two property sales overcame milder weather and the net impact of COVID-19
  • Regulatory proceeding for Hurricane Michael is still underway and is not included in year-to-date operating results
  • The COVID-19 pandemic estimated to have reduced net income by $1.1 million or $0.07 per share, through June 2020
  • Milder weather reduced 2020 year-to-date earnings by $1.4 million, or $0.09 per share, compared to the same period of 2019
  • Closing completed in the last week of July 2020 on the previously announced acquisition of Elkton Gas Company

Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK) (“Chesapeake Utilities” or the “Company”) today announced its financial results for the second quarter of 2020. The Company’s net income for the quarter ended June 30, 2020 was $11.0 million, or $0.66 per share, compared to $8.3 million or $0.50 per share, for the same quarter of 2019. Net income for the six months ended June 30, 2020 was $39.9 million, or $2.42 per share, compared to $37.0 million, or $2.25 per share, for the same period in 2019, representing an increase of 7.6 percent.

Earnings for the second quarter reflect increased gross margin from higher customer consumption driven primarily by colder weather, pipeline expansion projects, increased margin from Marlin Gas Services, LLC (“Marlin Gas Services”), higher retail propane margins per gallon, organic growth in the natural gas distribution operations, and contribution from the Boulden, Inc. (“Boulden”) acquisition. These increases were offset by the net unfavorable impact of a novel strain of coronavirus (“COVID-19”), after including the Federal income tax benefit associated with the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.

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