Chesapeake Utilities Corporation — Third Quarter 2026 Earnings Summary

Financial Performance

• Net income for the three months ended September 30, 2026, was $21.6 million ($0.89 per share), compared to $19.4 million ($0.82 per share) in the same period in 2025.
• Net income for the nine months ended September 30, 2026, was $106.3 million ($4.40 per share), compared to $94.2 million ($4.03 per share) in 2025, representing an 8.4% year-to-date growth rate on Adjusted EPS.
• Adjusted gross margin grew by $11.5 million in the third quarter of 2026 and $42.7 million year-to-date, a 9.2% growth rate for the nine months ended September 30, 2026.
• Total operating revenues were $195.8 million for the three months ended September 30, 2026, up from $179.6 million in 2025; for the nine months, revenues were $750.8 million, up from $671.1 million in 2025.
• Regulated energy operating revenues were $165.0 million for the quarter (up from $146.4 million) and $578.6 million for the nine months (up from $497.8 million).
• Unregulated energy operating revenues were $37.8 million for the quarter (down from $40.7 million) and $196.7 million for the nine months (up from $195.3 million).
• Adjusted gross margin for the nine months ended September 30, 2026, was $505.1 million, compared to $462.4 million in 2025.
• Cash and cash equivalents were $8.6 million as of September 30, 2026, compared to $1.8 million as of December 31, 2025.
• Long-term debt, net of current maturities, was $1,307.1 million as of September 30, 2026, compared to $1,327.1 million as of December 31, 2025.
• Total stockholders' equity was $1,701.2 million as of September 30, 2026, compared to $1,598.5 million as of December 31, 2025.
• Short-term borrowing increased to $325.9 million as of September 30, 2026, from $158.0 million as of December 31, 2025.

Guidance and Future Outlook

• The Company affirmed its 2026 capital expenditure guidance of $550 million to $600 million.
• Year-to-date capital investment through September 30, 2026, was $412.8 million, with $151.2 million invested in the third quarter alone.
• For the five-year period ended 2028, the Company expects total capital investment to exceed $2.2 billion.
• The Company reaffirmed its 2028 earnings guidance of $7.75 to $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 capital guidance and EPS growth rates for the 2027-2031 period.

Business Segments and Product Lines

• Adjusted gross margin growth was driven by regulatory initiatives, infrastructure programs, transmission expansion projects, natural gas organic growth, improved contributions from unregulated businesses, and increased customer consumption.
• Florida City Gas (FCG) interim rate increase of $16.2 million on an annualized basis became effective in July 2026.
• The Company participated in FCG rate case hearings in late September 2026 and expects a final decision in December 2026.
• Major pipeline expansion projects contributing to adjusted gross margin include St. Cloud / Twin Lakes, Wildlight, Worcester Resiliency Upgrade, Boynton Beach, New Smyrna Beach, Central Florida Reinforcement, Renewable Natural Gas Supply Projects, Miami Inner Loop, and Duncan Plains.
• Regulatory initiatives contributing to margin growth include the Florida GUARD program, FCG SAFE Program, Capital Cost Surcharge Programs, Electric Storm Protection Plan, and Florida Mandatory Relocates.
• Rate cases in Maryland, Delaware, and Electric sectors contributed to adjusted gross margin growth.
• The FCG Rate Case contributed $2.7 million to adjusted gross margin for the nine months ended September 30, 2026.

Market and Competitive Landscape

• The Company is expanding natural gas transportation capacity to meet growing customer demands in South Florida, described as one of the nation's fastest-growing regions.
• The Company announced a joint venture with NextEra Energy Resources to finance and own 49% of the Florida Energy Pathway (FEP) project.
• The FEP project is a $1.2 billion, 97-mile intrastate natural gas transmission infrastructure project supporting energy reliability in South Florida.
• The Company established a new at-the-market (ATM) equity offering program to issue and sell up to $225 million of common stock to support strategic growth initiatives.

Risks and Challenges

• The absence of recovered costs associated with Hurricane Michael negatively impacted adjusted gross margin by $1.8 million in the third quarter of 2026 and $5.7 million for the nine months of 2026.
• Decreased CNG/RNG/LNG services negatively impacted adjusted gross margin by $0.4 million in the third quarter and $1.6 million for the nine months of 2026.
• Increased payroll, benefits, and other employee-related expenses negatively impacted pre-tax income by $3.9 million in the third quarter and $11.7 million for the nine months of 2026.
• Increased depreciation, amortization, and property taxes negatively impacted pre-tax income by $2.2 million in the third quarter and $7.2 million for the nine months of 2026.
• Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected.

Management Commentary and Tone

• Jeff Householder, Chair of the Board, President, and CEO, stated the Company demonstrated continued earnings growth and progress in business transformation.
• Management expressed excitement about moving forward with the FEP project through a strategic partnership with NextEra Energy Resources, supporting a disciplined approach to capital deployment.
• Management believes the Company is well-positioned to expand natural gas transportation capacity to meet growing customer demands.

Other Key Points

• The Company established a new at-the-market equity offering program providing forward sale agreements for additional financing optionality regarding pricing and timing of equity issuances.
• Approximately 0.6 million common shares were issued under the dividend reinvestment and direct stock purchase plan (DRIP/DSPP) and ATM program during the third quarter of 2026.
• Transaction and transition-related expenses attributable to the acquisition and integration of FCG were excluded from non-GAAP adjusted net income and EPS measures.
• The Company will host a conference call on November 6, 2026, at 8:30 a.m. Eastern Time to discuss results.