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 the same period 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 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 third quarter of 2026, up from $179.6 million in 2025; for the nine months, revenues were $750.8 million, up from $671.1 million.
• Adjusted gross margin totaled $148.7 million for the third quarter and $505.1 million for the nine months ended September 30, 2026.
• Total property, plant, and equipment increased to $3,706.5 million as of September 30, 2026, from $3,472.3 million at year-end 2025.
• Total assets were $4,317.4 million as of September 30, 2026, compared to $3,994.8 million at December 31, 2025.
• Total stockholders' equity increased to $1,701.2 million as of September 30, 2026, from $1,598.5 million at December 31, 2025.
• Long-term debt, net of current maturities, was $1,307.1 million as of September 30, 2026, down from $1,327.1 million at December 31, 2025.
• Short-term borrowings increased to $325.9 million as of September 30, 2026, from $158.0 million at December 31, 2025.

Guidance and Future Outlook:

• The Company affirmed its 2026 capital expenditure guidance of $550 million to $600 million.
• 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:

• Regulated Energy operating revenues were $165.0 million for the third quarter of 2026, up from $146.4 million in 2025.
• Unregulated Energy operating revenues were $37.8 million for the third quarter of 2026, down from $40.7 million in 2025.
• Florida City Gas (FCG) interim rate increase of $16.2 million on an annualized basis became effective in July 2026.
• The Company established a new at-the-market equity offering program allowing the issuance and sale of up to $225 million of common stock.
• Major pipeline expansion projects contributing to adjusted gross margin include St. Cloud/Twin Lakes, Wildlight, Worcester Resiliency Upgrade, Boynton Beach, New Smyrna Beach, and Central Florida Reinforcement.
• Renewable Natural Gas Supply Projects contributed $1.7 million to adjusted gross margin in the third quarter of 2026.
• Regulatory initiatives including the Florida GUARD program, FCG SAFE Program, and Capital Cost Surcharge Programs contributed significantly to margin growth.

Market and Competitive Landscape:

• The Company is expanding natural gas transportation capacity to meet growing customer demands in one of the nation's fastest-growing regions (South Florida).
• Growth drivers include regulatory initiatives, infrastructure programs, transmission expansion projects, natural gas organic growth, improved contributions from unregulated businesses, and increased customer consumption.

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 and $5.7 million year-to-date.
• Decreased CNG/RNG/LNG services reduced adjusted gross margin by $0.4 million in the third quarter and $1.6 million year-to-date.
• 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 year-to-date.
• Increased depreciation, amortization, and property taxes reduced pre-tax income by $2.2 million in the third quarter and $7.2 million year-to-date.

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 regarding the strategic partnership with NextEra Energy Resources to support the FEP project.
• The Company emphasized a disciplined approach to capital deployment and infrastructure investment.

Other Key Points:

• The Company announced a joint venture agreement with NextEra Energy Resources to finance and own 49% of the Florida Energy Pathway (FEP) project, a $1.2 billion, 97-mile intrastate natural gas transmission infrastructure project.
• Capital investment for the third quarter of 2026 was $151.2 million, bringing the year-to-date total to $412.8 million.
• The FCG rate case hearing concluded in late September 2026, with a final decision expected in December 2026.
• The Company recorded an investment of $7.2 million in the unconsolidated affiliate (FEP) as of September 30, 2026.
• Transaction and transition-related expenses attributable to the FCG acquisition were excluded from non-GAAP adjusted net income and EPS.