Chesapeake Utilities Corporation — Second Quarter 2026 Earnings Summary

Financial Performance

• Net income for the second quarter of 2026 was $25.4 million, compared to $23.9 million in the same period in 2025.
• Diluted earnings per share (EPS) for the second quarter were $1.05, up from $1.02 in 2025.
• Year-to-date net income was $84.7 million, compared to $74.8 million in 2025.
• Year-to-date diluted EPS was $3.51, compared to $3.22 in 2025.
• Adjusted EPS for the second quarter was $1.05, compared to $1.04 in 2025.
• Year-to-date adjusted EPS was $3.51, compared to $3.25 in 2025, representing an 8.0 percent growth rate.
• Adjusted gross margin for the second quarter increased by $7.4 million, and year-to-date increased by $31.2 million, representing a 9.6 percent growth rate.
• Total operating revenues for the second quarter were $201.9 million, up from $192.8 million in 2025.
• Year-to-date operating revenues were $555.0 million, up from $491.5 million in 2025.
• Regulated energy operating revenues were $164.3 million for the quarter (vs. $151.8 million in 2025) and $413.6 million year-to-date (vs. $351.4 million in 2025).
• Unregulated energy operating revenues were $45.2 million for the quarter (vs. $47.9 million in 2025) and $158.9 million year-to-date (vs. $154.6 million in 2025).
• Long-term debt, net of current maturities, was $1,317.9 million as of June 30, 2026, down from $1,327.1 million as of December 31, 2025.
• Total stockholders' equity was $1,673.4 million as of June 30, 2026, up from $1,598.5 million as of December 31, 2025.
• Short-term borrowing was $238.1 million as of June 30, 2026, up from $158.0 million as of December 31, 2025.

Guidance and Future Outlook

• The Company increased its 2026 capital expenditure guidance range to $550 - $600 million, an increase of $100 million from previous guidance.
• The Company expects to achieve capital investment of approximately $1.4 billion through 2026.
• Total investment is expected to exceed $2.2 billion for the five-year period ended 2028.
• The Company reaffirmed its 2028 earnings guidance of $7.75 - $8.00 per share.
• The Company expects to provide a long-term guidance update during its Full-Year 2026 earnings call in February 2027, including a capital guidance range and EPS growth rate for the 2027 - 2031 period.

Business Segments and Product Lines

• Announced the Florida Energy Pathway ("FEP") project, a $1.2 billion natural gas pipeline project in south Florida with approximately 250,000 Dts/d of committed capacity, targeted for in-service in 2030.
• Capital investment was $139.7 million during the second quarter of 2026, bringing the year-to-date total to $261.6 million.
• Interim rates of $16.2 million on an annualized basis were approved by the Florida Public Service Commission in July 2026 in connection with the FCG rate case.
• Adjusted gross margin growth was driven by transmission expansion projects, regulatory initiatives, infrastructure programs, natural gas organic growth, and improved contributions from unregulated businesses.
• Specific pipeline expansion projects contributed to adjusted gross margin growth, including St. Cloud / Twin Lakes ($2.0 million year-to-date), Wildlight ($2.2 million year-to-date), Worcester Resiliency Upgrade ($0.8 million year-to-date), Boynton Beach ($1.8 million year-to-date), New Smyrna Beach ($1.2 million year-to-date), and Central Florida Reinforcement ($2.2 million year-to-date).
• Renewable Natural Gas Supply Projects contributed $2.5 million to adjusted gross margin year-to-date.
• Regulatory initiatives contributed $31.0 million to adjusted gross margin year-to-date, including the Florida GUARD program ($5.0 million), FCG SAFE Program ($5.7 million), Capital Cost Surcharge Programs ($4.6 million), Electric Storm Protection Plan ($5.1 million), and Florida Mandatory Relocates ($0.9 million).
• Rate cases contributed $9.7 million to adjusted gross margin year-to-date, including Maryland ($2.0 million), Delaware ($3.4 million), and Electric ($4.3 million).

Market and Competitive Landscape

• The Company is executing a strategic plan driving significant investment in its service territories.
• The Company increased capacity under its revolving credit facility to $650 million to support capital investment growth.
• The Company is in discussions with potential partners for the FEP project.

Risks and Challenges

• The press release notes that actual results may differ materially from forward-looking statements due to risks and uncertainties, referencing the Company's 2025 Annual Report on Form 10-K and subsequent 10-Q reports for details.
• Transaction and transition-related expenses associated with the acquisition and integration of Florida City Gas ("FCG") are excluded from non-GAAP measures but represent a past cost factor.
• The absence of recovered costs associated with Hurricane Michael impacted year-over-year comparisons for both adjusted gross margin and depreciation/amortization expenses.

Management Commentary and Tone

• Jeff Householder, Chair of the Board, President and CEO, stated that second quarter results demonstrate consistent operational and financial performance as the Company transforms for the next phase of sustained enterprise growth.
• Management expressed excitement regarding the Florida Energy Pathway infrastructure project, describing it as a significant investment opportunity to bring capacity and reliability to south Florida and support long-term growth across the state.

Other Key Points

• The Company issued approximately 0.6 million common shares under the dividend reinvestment and direct stock purchase plan ("DRIP/DSPP") and at the market ("ATM") program during the second quarter of 2026.
• The Company will host a conference call on August 7, 2026, at 8:30 a.m. Eastern Time to discuss the results.
• The Company is a diversified energy delivery company listed on the NYSE offering sustainable energy solutions through natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, and mobile compressed natural gas utility services.