CPK · Chesapeake Utilities Corporation

Chesapeake Utilities delivered strong first-quarter 2026 results, with diluted EPS of $2.47 — an 11.8% increase over the prior-year quarter — supported by $23.8 million of adjusted gross margin growth and $12.6 million higher operating income. The margin expansion was broad-based: $6.9 million from transmission system expansions (e.g., Miami Inner Loop, Boynton Beach), $5.5 million from regulated infrastructure programs (including FPU’s GUARD and FCG’s SAFE), $4.5 million from colder weather boosting customer consumption in Delmarva, $4.1 million from rate changes finalized in 2025, and $2.0 million from organic natural gas customer growth. Operating expenses rose $10.2 million year-over-year, largely due to higher payroll, benefits, and facilities costs — consistent with the Company’s strategic investment in talent and reliability. Management reaffirmed its full-year 2026 capital guidance of $450–$500 million, with $121.9 million already deployed in Q1, including $32 million in transmission, $40 million in infrastructure, and $18 million in technology (e.g., ERP implementation). Notably, Florida City Gas filed a general rate case in April 2026 seeking $47 million in annual revenue, targeting interim rates in Q3 and final rates by year-end — a key near-term catalyst for margin sustainability. The filing also confirms the planned CFO succession: Beth Cooper retires July 1, 2026, after 36 years and transformative financial leadership, and Jeff Sylvester, current COO, assumes the role — signaling continuity in capital allocation discipline and regulatory execution. With 2028 EPS guidance unchanged at $7.75–$8.00 and $1.5–$1.8 billion committed to 2024–2028 capital spending, the Company maintains its long-standing track record of double-digit EPS growth, now entering its 19th consecutive year.