CHESAPEAKE UTILITIES CORPORATION REPORTS THIRD QUARTER 2022 RESULTS
-
Year-to-date earnings per share ("EPS")* of
$3.58 , an increase of$0.13 or 3.8 percent, compared to$3.45 in the prior year period -
EPS of
$0.54 in the third quarter, with year-over-year growth impacted by one-time, non-recurring items in the third quarter of 2021 and rising interest rates in 2022 - Higher performance during the first nine months of 2022 was driven by pipeline expansions, regulatory initiatives, natural gas organic growth, acquisition contributions, and higher earnings in the Company's unregulated businesses
-
Secured long-term financing of
$80 million to support the Company's capital structure and long-term growth strategy - Interim rates associated with the Florida Base Rate Proceeding were implemented in September
- Commitment to organic growth, project expansions, regulatory initiatives and business transformation efforts firmly position the Company to better mitigate inflationary pressures and drive long-term growth
- Continued focus on renewable energy initiatives to further enhance sustainability in our local communities
On a year-to-date basis, net income was
Year-to-date earnings were driven by contributions from the Company's recent propane acquisitions as well as the natural gas metering station located in
The Company's net income for the quarter ended
For the third quarter, earnings were primarily driven by the factors noted above as well as contributions from interim rates associated with our
"Despite continued challenges with rising interest rates and inflation,
"Earnings in the third quarter were impacted by one-time, non-recurring benefits. Additionally, rising interest rates drove interest expense substantially higher for the quarter compared to the same period last year. Looking forward, we remain on track for our long-term EPS guidance and both our long-term and 2022 capital expenditure guidance ranges. Further, opportunities like the renewable natural gas acquisition of Planet Found and other traditional and renewable investment opportunities we see before us align with our proven long-term growth strategy. We remain committed to investing in our businesses, our people and our communities to deliver long-term sustainable growth for our stakeholders," he added.
Capital Expenditures Forecast and Earnings Guidance Update
During the nine months ended
*Unless otherwise noted, EPS information is presented on a diluted basis.
Non-GAAP Financial Measures
**This press release including the tables herein, include references to non-Generally Accepted Accounting Principles ("GAAP") financial measures, including adjusted gross margin. A "non-GAAP financial measure" is generally defined as a numerical measure of a company's historical or future performance that includes or excludes amounts, or that is subject to adjustments, so as to be different from the most directly comparable measure calculated or presented in accordance with GAAP. Our management believes certain non-GAAP financial measures, when considered together with GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period.
The Company calculates Adjusted Gross Margin by deducting the purchased cost of natural gas, propane and electricity and the cost of labor spent on direct revenue-producing activities from operating revenues. The costs included in Adjusted Gross Margin exclude depreciation and amortization and certain costs presented in operations and maintenance expenses in accordance with regulatory requirements. Adjusted Gross Margin should not be considered an alternative to Gross Margin under US GAAP which is defined as the excess of sales over cost of goods sold. The Company believes that Adjusted Gross Margin, although a non-GAAP measure, is useful and meaningful to investors as a basis for making investment decisions. It provides investors with information that demonstrates the profitability achieved by the Company under the Company's allowed rates for regulated energy operations and under the Company's competitive pricing structures for unregulated energy operations. The Company's management uses Adjusted Gross Margin as one of the financial measures in assessing a business unit's performance. Other companies may calculate Adjusted Gross Margin in a different manner.
Reconciliation of GAAP to Non-GAAP Measures |
||||||||
|
||||||||
|
|
For the Three Months Ended |
||||||
(in thousands) |
|
Regulated Energy |
|
Unregulated |
|
Other and |
|
Total |
Operating Revenues |
|
$ 90,980 |
|
$ 47,914 |
|
$ (7,841) |
|
$ 131,053 |
Cost of Sales: |
|
|
|
|
|
|
|
|
Natural gas, propane and electric costs |
|
(21,248) |
|
(30,768) |
|
7,811 |
|
(44,205) |
Depreciation & amortization |
|
(13,271) |
|
(4,071) |
|
3 |
|
(17,339) |
Operations & maintenance expense (1) |
|
(9,211) |
|
(7,673) |
|
371 |
|
(16,513) |
Gross Margin (GAAP) |
|
47,250 |
|
5,402 |
|
344 |
|
52,996 |
Operations & maintenance expense (1) |
|
9,211 |
|
7,673 |
|
(371) |
|
16,513 |
Depreciation & amortization |
|
13,271 |
|
4,071 |
|
(3) |
|
17,339 |
Adjusted Gross Margin (Non-GAAP) |
|
$ 69,732 |
|
$ 17,146 |
|
$ (30) |
|
$ 86,848 |
|
|
For the Three Months Ended |
||||||
(in thousands) |
|
Regulated Energy |
|
Unregulated |
|
Other and |
|
Total |
Operating Revenues |
|
$ 80,396 |
|
$ 32,110 |
|
$ (5,171) |
|
$ 107,335 |
Cost of Sales: |
|
|
|
|
|
|
|
|
Natural gas, propane and electric costs |
|
(15,294) |
|
(17,213) |
|
5,141 |
|
(27,366) |
Depreciation & amortization |
|
(12,296) |
|
(3,491) |
|
(11) |
|
(15,798) |
Operations & maintenance expense (1) |
|
(8,124) |
|
(5,733) |
|
240 |
|
(13,617) |
Gross Margin (GAAP) |
|
44,682 |
|
5,673 |
|
199 |
|
50,554 |
Operations & maintenance expense (1) |
|
8,124 |
|
5,733 |
|
(240) |
|
13,617 |
Depreciation & amortization |
|
12,296 |
|
3,491 |
|
11 |
|
15,798 |
Adjusted Gross Margin (Non-GAAP) |
|
$ 65,102 |
|
$ 14,897 |
|
$ (30) |
|
$ 79,969 |
|
|
For the Nine Months Ended |
||||||
(in thousands) |
|
Regulated Energy |
|
Unregulated |
|
Other and |
|
Total |
Operating Revenues |
|
$ 311,064 |
|
$ 202,669 |
|
$ (20,330) |
|
$ 493,403 |
Cost of Sales: |
|
|
|
|
|
|
|
|
Natural gas, propane and electric costs |
|
(88,264) |
|
(120,476) |
|
20,238 |
|
(188,502) |
Depreciation & amortization |
|
(39,496) |
|
(12,025) |
|
(11) |
|
(51,532) |
Operations & maintenance expense (1) |
|
(25,694) |
|
(21,428) |
|
(578) |
|
(47,700) |
Gross Margin (GAAP) |
|
157,610 |
|
48,740 |
|
(681) |
|
205,669 |
Operations & maintenance expense (1) |
|
25,694 |
|
21,428 |
|
578 |
|
47,700 |
Depreciation & amortization |
|
39,496 |
|
12,025 |
|
11 |
|
51,532 |
Adjusted Gross Margin (Non-GAAP) |
|
$ 222,800 |
|
$ 82,193 |
|
$ (92) |
|
$ 304,901 |
|
|
For the Nine Months Ended |
||||||
(in thousands) |
|
Regulated Energy |
|
Unregulated |
|
Other and |
|
Total |
Operating Revenues |
|
$ 282,503 |
|
$ 141,642 |
|
$ (14,541) |
|
$ 409,604 |
Cost of Sales: |
|
|
|
|
|
|
|
|
Natural gas, propane and electric costs |
|
(72,785) |
|
(70,017) |
|
14,437 |
|
(128,365) |
Depreciation & amortization |
|
(36,156) |
|
(10,271) |
|
(33) |
|
(46,460) |
Operations & maintenance expense (1) |
|
(24,708) |
|
(17,851) |
|
525 |
|
(42,034) |
Gross Margin (GAAP) |
|
148,854 |
|
43,503 |
|
388 |
|
192,745 |
Operations & maintenance expense (1) |
|
24,708 |
|
17,851 |
|
(525) |
|
42,034 |
Depreciation & amortization |
|
36,156 |
|
10,271 |
|
33 |
|
46,460 |
Adjusted Gross Margin (Non-GAAP) |
|
$ 209,718 |
|
$ 71,625 |
|
$ (104) |
|
$ 281,239 |
|
||||||||
(1) Operations & maintenance expenses within the Consolidated Statements of Income are presented in accordance with regulatory requirements |
Operating Results for the Quarters Ended
Consolidated Results |
|
|
|
|
|||
|
Three Months Ended |
|
|
|
|
||
|
|
|
|
|
|
||
(in thousands) |
2022 |
|
2021 |
|
Change |
|
Percent |
Adjusted gross margin** |
$ 86,848 |
|
$ 79,969 |
|
$ 6,879 |
|
8.6 % |
Depreciation, amortization and property taxes |
23,103 |
|
21,165 |
|
1,938 |
|
9.2 % |
Other operating expenses |
45,097 |
|
38,691 |
|
6,406 |
|
16.6 % |
Operating income |
$ 18,648 |
|
$ 20,113 |
|
$ (1,465) |
|
(7.3) % |
Operating income for the third quarter of 2022 was
Regulated Energy Segment |
|
|
|
|
|||
|
Three Months Ended |
|
|
|
|
||
|
|
|
|
|
|
||
(in thousands) |
2022 |
|
2021 |
|
Change |
|
Percent |
Adjusted gross margin** |
$ 69,732 |
|
$ 65,102 |
|
$ 4,630 |
|
7.1 % |
Depreciation, amortization and property taxes |
18,594 |
|
17,215 |
|
1,379 |
|
8.0 % |
Other operating expenses |
27,475 |
|
24,517 |
|
2,958 |
|
12.1 % |
Operating income |
$ 23,663 |
|
$ 23,370 |
|
$ 293 |
|
1.3 % |
Operating income for the Regulated Energy segment for the third quarter of 2022 was
The key components of the increase in adjusted gross margin** are shown below:
(in thousands) |
|
Natural gas transmission service expansions |
$ 1,202 |
Contributions from regulated infrastructure programs |
820 |
Natural gas growth including conversions (excluding service expansions) |
775 |
Changes in customer consumption |
640 |
Interim rates associated with the |
521 |
Contributions from rates associated with recovery of pandemic related costs |
260 |
Other variances |
412 |
Quarter-over-quarter increase in adjusted gross margin** |
$ 4,630 |
The major components of the increase in other operating expenses are as follows:
(in thousands) |
|
Absence of regulatory deferral of COVID-19 expenses per PSCs orders |
$ 2,080 |
Facilities expenses, maintenance costs and outside services |
1,145 |
Payroll, benefits and other employee related costs |
(735) |
Other variances |
468 |
Quarter-over-quarter increase in other operating expenses |
$ 2,958 |
Unregulated Energy Segment |
|
|
|
|
|||
|
Three Months Ended |
|
|
|
|
||
|
|
|
|
|
|
||
(in thousands) |
2022 |
|
2021 |
|
Change |
|
Percent |
Adjusted gross margin** |
$ 17,146 |
|
$ 14,897 |
|
$ 2,249 |
|
15.1 % |
Depreciation, amortization and property taxes |
4,071 |
|
3,491 |
|
580 |
|
16.6 % |
Other operating expenses |
18,131 |
|
14,358 |
|
3,773 |
|
26.3 % |
Operating income (loss) |
$ (5,056) |
|
$ (2,952) |
|
$ (2,104) |
|
NMF |
Operating results for the Unregulated Energy segment for the third quarter of 2022 decreased by
Performance in the Unregulated Energy segment during the third quarter was driven by incremental adjusted gross margin from Diversified Energy, increased demand for CNG, RNG and LNG services and expanded propane margins including higher service fees. Additionally, the Company experienced increased operating expenses associated with the acquisition of Diversified Energy as well as increased costs for facilities, maintenance, and outside services, higher payroll, benefits and employee related expenses driven by competition in the current labor market, depreciation, amortization and property taxes and increased vehicle expenses largely due to rising fuel costs.
The major components contributing to the change in adjusted gross margin** are shown below:
(in thousands) |
|
|
Propane Operations |
|
|
Propane acquisitions completed in 2022 and 2021 |
|
$ 1,562 |
Increased propane margins and service fees |
|
206 |
CNG/RNG/LNG Transportation and Infrastructure |
|
|
Increased demand for CNG/RNG/LNG Services |
|
1,215 |
Aspire Energy |
|
|
Decreased customer consumption - primarily weather related |
|
(183) |
Decreased margins - rate changes and natural gas liquid processing |
|
(131) |
Other variances |
|
(420) |
Quarter-over-quarter increase in adjusted gross margin** |
|
$ 2,249 |
The major components of the increase in other operating expenses are as follows:
(in thousands) |
|
Operating expenses associated with recent propane acquisitions |
$ 2,377 |
Increased facilities expenses, maintenance costs and outside services |
594 |
Increased payroll, benefits and other employee-related expenses |
432 |
Increased vehicle expenses largely due to higher fuel costs |
213 |
Other variances |
157 |
Quarter-over-quarter increase in other operating expenses |
$ 3,773 |
Diversified Energy's operating results reflected lower adjusted gross margins during the third quarter of 2022 which is in line with the seasonality typically experienced during the second and third quarters by the Company's legacy propane distribution businesses.
Operating Results for the Nine Months Ended
Consolidated Results |
|
|
|
|
|
||
|
Nine Months Ended |
|
|
|
|
||
|
|
|
|
|
|
||
(in thousands) |
2022 |
|
2021 |
|
Change |
|
Percent |
Adjusted gross margin** |
$ 304,901 |
|
$ 281,239 |
|
$ 23,662 |
|
8.4 % |
Depreciation, amortization and property taxes |
68,521 |
|
62,407 |
|
6,114 |
|
9.8 % |
Other operating expenses |
136,399 |
|
124,544 |
|
11,855 |
|
9.5 % |
Operating income |
$ 99,981 |
|
$ 94,288 |
|
$ 5,693 |
|
6.0 % |
Operating income during the first nine months of 2022 was
Regulated Energy Segment |
|
|
|
|
|||
|
Nine Months Ended |
|
|
|
|
||
|
|
|
|
|
|
||
(in thousands) |
2022 |
|
2021 |
|
Change |
|
Percent |
Adjusted gross margin** |
$ 222,800 |
|
$ 209,718 |
|
$ 13,082 |
|
6.2 % |
Depreciation, amortization and property taxes |
55,225 |
|
50,794 |
|
4,431 |
|
8.7 % |
Other operating expenses |
83,373 |
|
80,089 |
|
3,284 |
|
4.1 % |
Operating income |
$ 84,202 |
|
$ 78,835 |
|
$ 5,367 |
|
6.8 % |
Operating income for the Regulated Energy segment for the first nine months of 2022 was
The key components of the increase in adjusted gross margin** are shown below:
(in thousands) |
|
Natural gas transmission service expansions |
$ 3,720 |
Natural gas growth including conversions (excluding service expansions) |
2,907 |
Contributions from regulated infrastructure programs |
2,824 |
Changes in customer consumption |
1,089 |
Contributions from rates associated with recovery of pandemic related costs |
780 |
Interim rates associated with the |
521 |
|
416 |
Other variances |
825 |
Period-over-period increase in adjusted gross margin** |
$ 13,082 |
The major components of the increase in other operating expenses are as follows:
(in thousands) |
|
Absence of deferral of COVID-19 expenses per PSCs orders |
$ 2,545 |
Facilities expenses, maintenance costs and outside services |
1,122 |
Increased vehicle expenses largely due to higher fuel costs |
348 |
Other variances |
(731) |
Period-over-period increase in other operating expenses |
$ 3,284 |
Unregulated Energy Segment |
|
|
|
|
|||
|
Nine Months Ended |
|
|
|
|
||
|
|
|
|
|
|
||
(in thousands) |
2022 |
|
2021 |
|
Change |
|
Percent |
Adjusted gross margin** |
$ 82,193 |
|
$ 71,625 |
|
$ 10,568 |
|
14.8 % |
Depreciation, amortization and property taxes |
12,025 |
|
10,271 |
|
1,754 |
|
17.1 % |
Other operating expenses |
54,611 |
|
45,730 |
|
8,881 |
|
19.4 % |
Operating income |
$ 15,557 |
|
$ 15,624 |
|
$ (67) |
|
(0.4) % |
Operating results for the Unregulated Energy segment for the nine months ended
Operating results during the first nine months of 2022 were driven by contributions from the Company's acquisition of Diversified Energy, increased propane margins including higher service fees, increased demand for CNG, RNG and LNG services and margin improvement from Aspire Energy. These increases were partially offset by reduced consumption in our propane operations. Additionally, the Company experienced increased operating expenses associated with the acquisition of Diversified Energy including costs to integrate the business in Sharp's operating practices, as well as increased payroll, benefits and employee related expenses, depreciation, amortization and property taxes, increased vehicle expenses due to rising fuel costs and increased costs for facilities, maintenance, and outside services.
The major components contributing to the change in adjusted gross margin** are shown below:
(in thousands) |
|
|
Propane Operations |
|
|
Propane acquisitions completed in 2022 and 2021 |
|
$ 7,028 |
Increased propane margins and service fees |
|
2,029 |
Decreased customer consumption due to conversion of customers to our natural gas system |
|
(530) |
Decreased customer consumption - intra-quarter weather volatility |
|
(495) |
CNG/RNG/LNG Transportation and Infrastructure |
|
|
Increased demand for CNG/RNG/LNG services |
|
2,090 |
Aspire Energy |
|
|
Increased margins - rate changes and natural gas liquid processing |
|
1,000 |
Increased customer consumption - primarily weather related |
|
282 |
Other variances |
|
(836) |
Period-over-period increase in adjusted gross margin** |
|
$ 10,568 |
Items contributing to the period-over-period increase in operating expenses are listed in the following table:
(in thousands) |
|
Operating expenses associated with recent propane acquisitions |
$ 7,085 |
Increased payroll, benefits and other employee-related expenses |
1,253 |
Increased vehicle expenses largely due to higher fuel costs |
598 |
Increased facilities expenses, maintenance costs and outside services |
584 |
Other variances |
(639) |
Period-over-period increase in operating expenses |
$ 8,881 |
COVID-19 Update
In
Environmental, Social and Governance ("ESG") Initiatives
ESG initiatives are at the core of
-
Chesapeake Utilities will be a leader in the transition to a lower carbon future. - The Company will continue to promote a diverse and inclusive workplace and further the sustainability of the communities we serve.
- The Company's businesses will be operated with integrity and the highest ethical standards.
These commitments guide the Company's mission to deliver energy that makes life better for the people and communities it serves. They impact every aspect of the Company and the relationships it has with its stakeholders. The Company encourages its investors to review the report and welcomes feedback as it continues to enhance its ESG disclosures.
The Company's most recent ESG advancements include the following:
Environmental:
- During September, Sharp Energy opened a new AutoGas fueling station in
Dunn, North Carolina , the first Sharp AutoGas fueling station dispensing propane for vehicles inNorth Carolina . - The Company recently acquired approximately 90,000 gallons of biopropane (bioLPG) to fuel its fleet of AutoGas vehicles. Through the use of this bioLPG, the Company will supply more than of one-third of the propane used in the Company's fleet vehicles with this cleaner propane source.
- The Company's affiliate Marlin Compression and the Port Fuel Center were recognized for their collaboration in constructing a high-capacity CNG truck and tube trailer fueling station, which opened in March in
Port Wentworth, Georgia . Located along theI-95 corridor near thePort of Savannah , the CNG fueling station is one of the largest public access CNG stations on theEast Coast , and features a dedicated lane for filling transport trailers. It also serves as a staging area forChesapeake Utilities' Marlin Gas Services to fill CNG transport trailers for its virtual pipeline services, which include the transport of compressed renewable natural gas.
Social:
- The Company recently donated
$0.1 million to multiple charitable organizations inFlorida providing assistance to those who were impacted by Hurricane Ian.Chesapeake Utilities partnered with theAmerican Red Cross , Volunteer Florida, Feeding Florida, andFlorida Farm Bureau . With wind speeds reaching 150mph, Hurricane Ian was one of the strongest and most devastating hurricanes to hitFlorida . - For the third consecutive year, two of the Company's subsidiaries have been recognized with Stars of
Delaware awards by theDelaware State News .Chesapeake Utilities , the Company's natural gas distribution system on theDelmarva Peninsula , was honored as the Best Company with Over 50 People and Best Energy Provider, and Sharp Energy, the Company's propane distribution subsidiary, again received the award for Best Propane Company. - The Company recently unveiled "CPK Wellness," a free, digital service provided to all employees which includes key resources for building and sustaining healthy physical, mental and financial habits. The Company's wellness strategy incorporates social events, wellness sessions, tools and other resources to better the lives of our colleagues both in and outside the workplace.
Governance:
- As part of the Board's ongoing succession planning,
Stephanie N. Gary andSheree M. Petrone were appointed to serve as members of the Board of Directors ofChesapeake Utilities Corporation , effectiveJuly 22, 2022 . -
Chesapeake Utilities Corporation was named Best for Corporate Governance inthe United States byWorld News Media Ltd.'s World Finance, an international publication. - The Company's 2021 Annual Report and inaugural Sustainability Report were recognized in the 2022 MerComm International Annual
Reports Competition (ARC) Awards, the world's largest competition honoring excellence in reports.
Earlier this year, the Company established its Environmental Sustainability Office ("ESO") and ESG Committee ("ESGC"). The ESO was established to identify and manage emission-reducing projects both internally, as well as and those that support the Company's customers' sustainability goals. The ESGC brings together a cross-functional team of leaders across the organization responsible for identifying, assessing, executing and advancing the Company's strategic ESG initiatives.
Forward-Looking Statements
Matters included in this release may include forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements. Please refer to the Safe Harbor for Forward-Looking Statements in the Company's 2021 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third quarter of 2022, for further information on the risks and uncertainties related to the Company's forward-looking statements.
Conference Call
About
Please note that
For more information, contact:
Executive Vice President, Chief Financial Officer, Treasurer and Assistant Corporate Secretary
302.734.6799
Senior Vice President and Chief Accounting Officer
302.217.7036
Head of Investor Relations
215.872.2507
Financial Summary (in thousands, except per share data) |
|||||||
|
|
|
|
||||
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Adjusted Gross Margin** |
|
|
|
|
|
|
|
Regulated Energy segment |
$ 69,732 |
|
$ 65,102 |
|
$ 222,800 |
|
$ 209,718 |
Unregulated Energy segment |
17,146 |
|
14,897 |
|
82,193 |
|
71,625 |
Other businesses and eliminations |
(30) |
|
(30) |
|
(92) |
|
(104) |
Total Adjusted Gross Margin** |
$ 86,848 |
|
$ 79,969 |
|
$ 304,901 |
|
$ 281,239 |
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
Regulated Energy segment |
$ 23,663 |
|
$ 23,370 |
|
$ 84,202 |
|
$ 78,835 |
Unregulated Energy segment |
(5,056) |
|
(2,952) |
|
15,557 |
|
15,624 |
Other businesses and eliminations |
41 |
|
(305) |
|
222 |
|
(171) |
Total Operating Income |
18,648 |
|
20,113 |
|
99,981 |
|
94,288 |
Other income, net |
957 |
|
327 |
|
4,454 |
|
2,155 |
Interest Charges |
6,240 |
|
4,975 |
|
17,404 |
|
15,134 |
Income Before Income Taxes |
13,365 |
|
15,465 |
|
87,031 |
|
81,309 |
Income Taxes |
3,703 |
|
2,990 |
|
23,385 |
|
20,555 |
Net Income |
$ 9,662 |
|
$ 12,475 |
|
$ 63,646 |
|
$ 60,754 |
|
|
|
|
|
|
|
|
Earnings Per Share of Common Stock |
|
|
|
|
|
|
|
Basic |
$ 0.54 |
|
$ 0.71 |
|
$ 3.59 |
|
$ 3.46 |
Diluted |
$ 0.54 |
|
$ 0.71 |
|
$ 3.58 |
|
$ 3.45 |
Financial Summary Highlights |
||||||
|
||||||
Key variances between the third quarter of 2022 and 2021, included: |
||||||
(in thousands, except per share data) |
|
Pre-tax Income |
|
Net Income |
|
Earnings Per Share |
Third Quarter of 2021 Reported Results |
|
$ 15,465 |
|
$ 12,475 |
|
$ 0.71 |
|
|
|
|
|
|
|
Adjusting for Unusual Items: |
|
|
|
|
|
|
Interest income from Federal Income Tax refund |
|
628 |
|
454 |
|
0.03 |
Absence of CARES Act items recognized during the third quarter of 2021 |
|
— |
|
(922) |
|
(0.05) |
Absence of regulatory deferral of COVID-19 expenses per PSCs orders |
|
(2,080) |
|
(1,504) |
|
(0.08) |
|
|
(1,452) |
|
(1,972) |
|
(0.10) |
|
|
|
|
|
|
|
Increased (Decreased) Adjusted Gross Margins: |
|
|
|
|
|
|
Contributions from acquisitions* |
|
1,562 |
|
1,129 |
|
0.06 |
Natural gas transmission service expansions* |
|
1,202 |
|
869 |
|
0.05 |
Increased margins related to demand for CNG/RNG/LNG services* |
|
1,215 |
|
879 |
|
0.05 |
Contributions from regulated infrastructure programs * |
|
820 |
|
593 |
|
0.03 |
Natural gas growth including conversions (excluding service expansions) |
|
775 |
|
560 |
|
0.03 |
Increased customer consumption - Inclusive of weather |
|
539 |
|
390 |
|
0.02 |
Interim rates associated with the |
|
521 |
|
377 |
|
0.02 |
Contributions from rates associated with recovery of pandemic related costs |
|
261 |
|
188 |
|
0.01 |
Increased propane margins and fees |
|
206 |
|
149 |
|
0.01 |
|
|
7,101 |
|
5,134 |
|
0.28 |
|
|
|
|
|
|
|
(Increased) Decreased Operating Expenses ( |
|
|
|
|
|
|
Operating expenses from recent acquisitions |
|
(2,377) |
|
(1,719) |
|
(0.10) |
Depreciation, amortization and property taxes |
|
(1,673) |
|
(1,209) |
|
(0.07) |
Facilities expenses, maintenance costs and outside services |
|
(1,420) |
|
(1,026) |
|
(0.06) |
Increased vehicle expenses largely due to higher fuel costs |
|
(284) |
|
(205) |
|
(0.01) |
Payroll, benefits and other employee-related expenses |
|
(197) |
|
(143) |
|
(0.01) |
|
|
(5,951) |
|
(4,302) |
|
(0.25) |
|
|
|
|
|
|
|
Interest charges |
|
(1,266) |
|
(915) |
|
(0.05) |
Net other changes |
|
(532) |
|
(758) |
|
(0.04) |
Change in shares outstanding due to 2021 and 2022 equity offerings |
|
— |
|
— |
|
(0.01) |
|
|
(1,798) |
|
(1,673) |
|
(0.10) |
Third Quarter of 2022 Reported Results |
|
$ 13,365 |
|
$ 9,662 |
|
$ 0.54 |
*See the Major Projects and Initiatives table. |
Key variances between the nine months ended |
||||||
|
||||||
(in thousands, except per share data) |
|
Pre-tax Income |
|
Net Income |
|
Earnings Per Share |
Nine Months Ended |
|
$ 81,309 |
|
$ 60,754 |
|
$ 3.45 |
|
|
|
|
|
|
|
Adjusting for Unusual Items: |
|
|
|
|
|
|
Gain from sales of assets |
|
1,902 |
|
1,391 |
|
0.08 |
Interest income from Federal Income Tax refund |
|
628 |
|
459 |
|
0.03 |
Absence of CARES Act items recognized during the third quarter of 2021 |
|
— |
|
(922) |
|
(0.05) |
Absence of deferral of COVID-19 expenses per PSCs orders |
|
(2,545) |
|
(1,861) |
|
(0.10) |
|
|
(15) |
|
(933) |
|
(0.04) |
|
|
|
|
|
|
|
Increased (Decreased) Adjusted Gross Margins: |
|
|
|
|
|
|
Contributions from acquisitions* |
|
7,444 |
|
5,442 |
|
0.31 |
Natural gas transmission service expansions* |
|
3,720 |
|
2,719 |
|
0.15 |
Natural gas growth including conversions (excluding service expansions) |
|
2,907 |
|
2,125 |
|
0.12 |
Contributions from regulated infrastructure programs * |
|
2,824 |
|
2,064 |
|
0.12 |
Increased margins related to demand for CNG/RNG/LNG services* |
|
2,090 |
|
1,528 |
|
0.09 |
Increased propane margins and fees |
|
2,029 |
|
1,483 |
|
0.08 |
Higher operating results from Aspire Energy |
|
1,000 |
|
731 |
|
0.04 |
Increased customer consumption - Inclusive of weather |
|
877 |
|
641 |
|
0.04 |
Contribution from rates associated with recovery of pandemic related costs |
|
780 |
|
570 |
|
0.03 |
Interim rates associated with the |
|
521 |
|
381 |
|
0.02 |
|
|
24,192 |
|
17,684 |
|
1.00 |
|
|
|
|
|
|
|
(Increased) Decreased Operating Expenses ( |
|
|
|
|
|
|
Operating expenses from recent acquisitions |
|
(7,085) |
|
(5,179) |
|
(0.29) |
Depreciation, amortization and property tax costs |
|
(5,109) |
|
(3,735) |
|
(0.21) |
Facilities expenses, maintenance costs and outside services |
|
(1,370) |
|
(1,002) |
|
(0.06) |
Increased vehicle expenses largely due to higher fuel costs |
|
(946) |
|
(692) |
|
(0.04) |
Payroll, benefits and other employee-related expenses |
|
(701) |
|
(512) |
|
(0.03) |
|
|
(15,211) |
|
(11,120) |
|
(0.63) |
|
|
|
|
|
|
|
Interest charges |
|
(2,270) |
|
(1,659) |
|
(0.09) |
Net other changes |
|
(974) |
|
(1,080) |
|
(0.07) |
Change in shares outstanding due to 2021 and 2022 equity offerings |
|
— |
|
— |
|
(0.04) |
|
|
(3,244) |
|
(2,739) |
|
(0.20) |
Nine Months Ended |
|
$ 87,031 |
|
$ 63,646 |
|
$ 3.58 |
*See the Major Projects and Initiatives table. |
Recently Completed and Ongoing Major Projects and Initiatives
The Company constantly pursues and develops additional projects and initiatives to serve existing and new customers, and to further grow its businesses and earnings, with the intention to increase shareholder value. The following table includes the major projects/initiatives recently completed and currently underway. Major projects and initiatives that have generated consistent year-over-year adjusted gross margin contributions are removed from the table at the beginning of the next calendar year. In the future, the Company will add new projects and initiatives to this table once negotiations or details are substantially final and the associated earnings can be estimated.
|
|
Adjusted Gross Margin** |
||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
|
Year Ended |
|
Estimate for |
||||||
Project/Initiative |
|
|
|
|
|
|
|
Fiscal |
||||||
in thousands |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2021 |
|
2022 |
|
2023 |
Pipeline Expansions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 1,307 |
|
$ 1,175 |
|
$ 3,922 |
|
$ 3,515 |
|
$ 4,729 |
|
$ 5,227 |
|
$ 5,227 |
Del-Mar Energy Pathway (1) (2) |
|
1,729 |
|
1,049 |
|
5,179 |
|
2,854 |
|
4,584 |
|
6,980 |
|
6,980 |
|
|
373 |
|
47 |
|
1,004 |
|
141 |
|
187 |
|
1,380 |
|
1,486 |
Southern Expansion |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
586 |
Winter Haven Expansion |
|
64 |
|
— |
|
125 |
|
— |
|
— |
|
260 |
|
576 |
Beachside Pipeline Extension |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,825 |
North Ocean City Connector |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
400 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
414 |
Total Pipeline Expansions |
|
3,473 |
|
2,271 |
|
10,230 |
|
6,510 |
|
9,500 |
|
13,847 |
|
17,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNG/RNG/LNG Transportation and Infrastructure |
|
2,813 |
|
1,598 |
|
7,473 |
|
5,383 |
|
7,566 |
|
9,500 |
|
10,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propane Acquisitions |
|
1,562 |
|
— |
|
7,028 |
|
— |
|
603 |
|
11,300 |
|
12,000 |
|
|
250 |
|
250 |
|
749 |
|
333 |
|
583 |
|
1,000 |
|
1,000 |
Total Acquisitions |
|
1,812 |
|
250 |
|
7,777 |
|
333 |
|
1,186 |
|
12,300 |
|
13,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Initiatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Florida GRIP |
|
5,022 |
|
4,306 |
|
14,824 |
|
12,543 |
|
16,995 |
|
19,858 |
|
20,154 |
Capital Cost Surcharge Programs |
|
489 |
|
433 |
|
1,503 |
|
690 |
|
1,199 |
|
2,018 |
|
1,936 |
Elkton Gas STRIDE Plan |
|
62 |
|
— |
|
202 |
|
— |
|
26 |
|
241 |
|
354 |
Florida Rate Case Proceeding |
|
521 |
|
— |
|
521 |
|
— |
|
— |
|
TBD |
|
TBD |
Total Regulatory Initiatives |
|
6,094 |
|
4,739 |
|
17,050 |
|
13,233 |
|
18,220 |
|
22,117 |
|
22,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ 14,192 |
|
$ 8,858 |
|
$ 42,530 |
|
$ 25,459 |
|
$ 36,472 |
|
$ 57,764 |
|
$ 63,438 |
|
||||||||||||||
(1) Includes adjusted gross margin generated from interim services. (2) Includes adjusted gross margin from natural gas distribution services. |
Detailed Discussion of Major Projects and Initiatives
Pipeline Expansions
West
Peninsula Pipeline constructed four transmission lines to bring additional natural gas to our distribution system in
Del-Mar Energy Pathway
In
The Company's subsidiary, Aspire Energy Express and unrelated party
Southern Expansion
Pending
Winter Haven Expansion
In
Beachside Pipeline Extension
In
North Ocean City Connector
During the second quarter of 2022, the Company began construction of an extension of service into
In
CNG/RNG/LNG Transportation and Infrastructure
The Company has made a commitment to meet customer demand for CNG, RNG and LNG in the markets we serve. This has included making investments within Marlin Gas Services to be able to transport these products through its virtual pipeline fleet to customers. To date, the Company has also made an infrastructure investment in
The Company is also involved in various other projects, all at various stages and all with different opportunities to participate across the energy value chain. In many of these projects, Marlin will play a key role in ensuring the RNG is transported to one of the Company's many pipeline systems where it will be injected. Accordingly, given the overlapping role of Marlin in many of these projects, the Company has combined its transportation services and infrastructure related adjusted gross margin discussion into one section.
For the three and nine months ended
Discussed below are some of the recently completed projects as well as a sample of the growth projects in which we are currently involved. As new projects are solidified, we will provide additional detail on those projects at that time.
In late
In
Bioenergy DevCo
In
The RNG source created from the organic waste from the BDC facility will be transported to an
In
Acquisitions
Propane Acquisitions
On
On
For the three and nine months ended
In
Regulatory Initiatives
Florida Gas Reliability Infrastructure Program ("GRIP")
Florida GRIP is a natural gas pipe replacement program approved by the Florida PSC that allows automatic recovery, through rates, of costs associated with the replacement of mains and services. Since the program's inception in
Capital Cost Surcharge Programs
In
In
Florida Natural Gas Base Rate Proceeding
In
COVID-19 Regulatory Proceeding
In
Storm Protection Plan
In 2020, the Florida PSC implemented the Storm Protection Plan ("SPP") and Storm Protection Plan Cost Recovery ("SPPCR") rules, which require electric utilities to petition the Florida PSC for approval of a Transmission and Distribution Storm Protection Plan that covers the utility's immediate 10-year planning period with updates to the plan at least every 3 years. The SPPCR rules allows the utility to file for recovery of associated costs related to its SPP. The Company's SPP plan was filed in
Other major factors influencing adjusted gross margin
Weather Impact
Weather was not a significant factor during the three and nine months ended
|
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
||||
|
|
|
|
|
|
|
|
||||
|
2022 |
|
2021 |
|
Variance |
|
2022 |
|
2021 |
|
Variance |
|
|
|
|
|
|
|
|
|
|
|
|
Actual HDD |
28 |
|
9 |
|
19 |
|
2,603 |
|
2,595 |
|
8 |
10-Year Average HDD ("Normal") |
43 |
|
47 |
|
(4) |
|
2,710 |
|
2,736 |
|
(26) |
Variance from Normal |
(15) |
|
(38) |
|
|
|
(107) |
|
(141) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual HDD |
1 |
|
1 |
|
— |
|
535 |
|
573 |
|
(38) |
10-Year Average HDD ("Normal") |
1 |
|
1 |
|
— |
|
543 |
|
550 |
|
(7) |
Variance from Normal |
— |
|
— |
|
|
|
(8) |
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual HDD |
84 |
|
41 |
|
43 |
|
3,614 |
|
3,489 |
|
125 |
10-Year Average HDD ("Normal") |
72 |
|
78 |
|
(6) |
|
3,614 |
|
3,660 |
|
(46) |
Variance from Normal |
12 |
|
(37) |
|
|
|
— |
|
(171) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual CDD |
1,303 |
|
1,330 |
|
(27) |
|
2,486 |
|
2,340 |
|
146 |
10-Year Average CDD ("Normal") |
1,393 |
|
1,402 |
|
(9) |
|
2,535 |
|
2,563 |
|
(28) |
Variance from Normal |
(90) |
|
(72) |
|
|
|
(49) |
|
(223) |
|
|
Natural Gas Distribution Adjusted Margin Growth
Customer growth for the Company's natural gas distribution operations, as a result of the addition of new customers and the conversion of customers from alternative fuel sources to natural gas service, generated
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
||||
(in thousands) |
Delmarva |
|
|
|
Delmarva |
|
|
Customer Growth: |
|
|
|
|
|
|
|
Residential |
$ 252 |
|
$ 207 |
|
$ 1,508 |
|
$ 701 |
Commercial and industrial |
268 |
|
48 |
|
427 |
|
271 |
Total Customer Growth |
$ 520 |
|
$ 255 |
|
$ 1,935 |
|
$ 972 |
Capital Investment Growth and Associated Financing Plans
The Company's capital expenditures were
|
2022 |
||
(dollars in thousands) |
Low |
|
High |
Regulated Energy: |
|
|
|
Natural gas distribution |
$ 72,000 |
|
$ 81,000 |
Natural gas transmission |
32,000 |
|
36,000 |
Electric distribution |
7,000 |
|
12,000 |
Total Regulated Energy |
111,000 |
|
129,000 |
Unregulated Energy: |
|
|
|
Propane distribution |
10,000 |
|
14,000 |
Energy transmission |
7,000 |
|
10,000 |
Other unregulated energy |
10,000 |
|
18,000 |
Total Unregulated Energy |
27,000 |
|
42,000 |
Other: |
|
|
|
Corporate and other businesses |
2,000 |
|
4,000 |
Total Other |
2,000 |
|
4,000 |
Total 2022 Forecasted Capital Expenditures |
$ 140,000 |
|
$ 175,000 |
The capital expenditure projection is subject to continuous review and modification. During the first nine months of 2022, the Company experienced a reduced level of new capital investments due to regulatory delays and supply chain disruptions. As a result, the Company decreased its capital expenditure guidance range to
The Company's target ratio of equity to total capitalization, including short-term borrowings, is between 50 and 60 percent. The Company's equity to total capitalization ratio, including short-term borrowings, was 51 percent as of
The Company may utilize more temporary short-term debt, when the financing cost is attractive, as a bridge to permanent long-term financing, or if the equity markets are more volatile. The Company currently maintains a multi-tranche
In
Both tranches of the Revolver are available to fund short-term cash needs, seasonal working capital requirements and to temporarily finance portions of the Company's capital expenditures. Borrowings under both tranches of the Revolver are subject to a pricing grid, including the commitment fee and the interest rate charged. The Company's pricing is adjusted each quarter based upon a total indebtedness to total capitalization ratio. As of
In the third quarter of 2022, the Company entered into an interest rate swap with a notional amount of
The Company issued 2.95 percent senior notes on
On
In terms of equity capital, the Company maintains an effective shelf registration statement with the
During the third quarter of 2022, the Company issued less than 0.1 million shares of common stock through its DRIP program and received net proceeds of approximately
Depending on the Company's capital needs and subject to market conditions, in addition to other debt and equity offerings, the Company may consider, as necessary in the future, issuing additional shares under the direct stock purchase component of the DRIP, the ATM program, or pursuant to its shelf registration statement. More information about financing activities is included in the Company's Annual Report on Form 10-K for the year ended
Condensed Consolidated Statements of Income (Unaudited) (in thousands, except shares and per share data) |
|||||||
|
|||||||
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Operating Revenues |
|
|
|
|
|
|
|
Regulated Energy |
$ 90,980 |
|
$ 80,396 |
|
$ 311,064 |
|
$ 282,503 |
Unregulated Energy and other |
40,073 |
|
26,939 |
|
182,339 |
|
127,101 |
Total Operating Revenues |
131,053 |
|
107,335 |
|
493,403 |
|
409,604 |
Operating Expenses |
|
|
|
|
|
|
|
Regulated natural gas and electricity costs |
21,248 |
|
15,294 |
|
88,264 |
|
72,785 |
Unregulated propane and natural gas costs |
22,958 |
|
12,072 |
|
100,236 |
|
55,578 |
Operations |
40,182 |
|
34,075 |
|
120,981 |
|
109,886 |
Maintenance |
4,501 |
|
4,267 |
|
13,273 |
|
12,568 |
Depreciation and amortization |
17,339 |
|
15,798 |
|
51,532 |
|
46,460 |
Other taxes |
6,177 |
|
5,716 |
|
19,136 |
|
18,039 |
Total operating expenses |
112,405 |
|
87,222 |
|
393,422 |
|
315,316 |
Operating Income |
18,648 |
|
20,113 |
|
99,981 |
|
94,288 |
Other income, net |
957 |
|
327 |
|
4,454 |
|
2,155 |
Interest charges |
6,240 |
|
4,975 |
|
17,404 |
|
15,134 |
Income Before Income Taxes |
13,365 |
|
15,465 |
|
87,031 |
|
81,309 |
Income Taxes |
3,703 |
|
2,990 |
|
23,385 |
|
20,555 |
Net Income |
$ 9,662 |
|
$ 12,475 |
|
$ 63,646 |
|
$ 60,754 |
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
Basic |
17,737,984 |
|
17,582,115 |
|
17,715,845 |
|
17,538,461 |
Diluted |
17,819,373 |
|
17,659,643 |
|
17,797,001 |
|
17,610,158 |
Earnings Per Share of Common Stock: |
|
|
|
|
|
|
|
Basic |
$ 0.54 |
|
$ 0.71 |
|
$ 3.59 |
|
$ 3.46 |
Diluted |
$ 0.54 |
|
$ 0.71 |
|
$ 3.58 |
|
$ 3.45 |
Condensed Consolidated Balance Sheets (Unaudited)
|
||||
|
||||
Assets |
|
|
|
|
(in thousands, except shares and per share data) |
|
|
|
|
Property, Plant and Equipment |
|
|
|
|
Regulated Energy |
|
$ 1,784,939 |
|
$ 1,720,287 |
Unregulated Energy |
|
385,067 |
|
357,259 |
Other businesses and eliminations |
|
30,701 |
|
35,418 |
Total property, plant and equipment |
|
2,200,707 |
|
2,112,964 |
Less: Accumulated depreciation and amortization |
|
(449,026) |
|
(417,479) |
Plus: Construction work in progress |
|
42,359 |
|
49,393 |
Net property, plant and equipment |
|
1,794,040 |
|
1,744,878 |
Current Assets |
|
|
|
|
Cash and cash equivalents |
|
2,480 |
|
4,976 |
Trade and other receivables |
|
37,278 |
|
61,623 |
Less: Allowance for credit losses |
|
(2,953) |
|
(3,141) |
Trade and other receivables, net |
|
34,325 |
|
58,482 |
Accrued revenue |
|
15,883 |
|
22,513 |
Propane inventory, at average cost |
|
8,797 |
|
11,644 |
Other inventory, at average cost |
|
11,828 |
|
9,345 |
Regulatory assets |
|
45,624 |
|
19,794 |
Storage gas prepayments |
|
7,443 |
|
3,691 |
Income taxes receivable |
|
18,859 |
|
17,460 |
Prepaid expenses |
|
17,823 |
|
17,121 |
Derivative assets, at fair value |
|
4,552 |
|
7,076 |
Other current assets |
|
1,589 |
|
1,033 |
Total current assets |
|
169,203 |
|
173,135 |
Deferred Charges and Other Assets |
|
|
|
|
|
|
45,158 |
|
44,708 |
Other intangible assets, net |
|
13,751 |
|
13,192 |
Investments, at fair value |
|
9,895 |
|
12,095 |
Operating lease right-of-use assets |
|
14,916 |
|
10,139 |
Regulatory assets |
|
97,283 |
|
104,173 |
Receivables and other deferred charges |
|
13,176 |
|
12,549 |
Total deferred charges and other assets |
|
194,179 |
|
196,856 |
Total Assets |
|
$ 2,157,422 |
|
$ 2,114,869 |
Condensed Consolidated Balance Sheets (Unaudited)
|
||||
|
||||
Capitalization and Liabilities |
|
|
|
|
(in thousands, except shares and per share data) |
|
|
|
|
Capitalization |
|
|
|
|
Stockholders' equity |
|
|
|
|
Preferred stock, par value |
|
$ — |
|
$ — |
Common stock, par value |
|
8,634 |
|
8,593 |
Additional paid-in capital |
|
378,261 |
|
371,162 |
Retained earnings |
|
428,941 |
|
393,072 |
Accumulated other comprehensive income (loss) |
|
(1,398) |
|
1,303 |
Deferred compensation obligation |
|
7,003 |
|
7,240 |
Treasury stock |
|
(7,003) |
|
(7,240) |
Total stockholders' equity |
|
814,438 |
|
774,130 |
Long-term debt, net of current maturities |
|
583,833 |
|
549,903 |
Total capitalization |
|
1,398,271 |
|
1,324,033 |
Current Liabilities |
|
|
|
|
Current portion of long-term debt |
|
21,478 |
|
17,962 |
Short-term borrowing |
|
167,332 |
|
221,634 |
Accounts payable |
|
46,811 |
|
52,628 |
Customer deposits and refunds |
|
37,825 |
|
36,488 |
Accrued interest |
|
4,898 |
|
2,775 |
Dividends payable |
|
9,490 |
|
8,466 |
Accrued compensation |
|
10,355 |
|
15,505 |
Regulatory liabilities |
|
3,506 |
|
2,312 |
Derivative liabilities, at fair value |
|
2,051 |
|
743 |
Other accrued liabilities |
|
25,105 |
|
17,920 |
Total current liabilities |
|
328,851 |
|
376,433 |
Deferred Credits and Other Liabilities |
|
|
|
|
Deferred income taxes |
|
248,702 |
|
233,550 |
Regulatory liabilities |
|
143,645 |
|
142,488 |
Environmental liabilities |
|
2,901 |
|
3,538 |
Other pension and benefit costs |
|
20,228 |
|
24,120 |
Operating lease - liabilities |
|
12,975 |
|
8,571 |
Deferred investment tax credits and other liabilities |
|
1,849 |
|
2,136 |
Total deferred credits and other liabilities |
|
430,300 |
|
414,403 |
Environmental and other commitments and contingencies (1) |
|
|
|
|
Total Capitalization and Liabilities |
|
$ 2,157,422 |
|
$ 2,114,869 |
(1)Refer to Note 6 and 7 in the Company's Quarterly Report on Form 10-Q for further information. |
Distribution Utility Statistical Data (Unaudited) |
||||||||||||||||
|
||||||||||||||||
|
|
For the Three Months Ended |
|
For the Three Months Ended |
||||||||||||
|
|
Delmarva NG |
|
Chesapeake |
|
FPU NG |
|
|
|
Delmarva NG |
|
Chesapeake |
|
FPU NG |
|
|
Operating Revenues (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Residential |
|
$ 7,642 |
|
$ 1,649 |
|
$ 7,113 |
|
$ 12,941 |
|
$ 6,891 |
|
$ 1,511 |
|
$ 5,889 |
|
$ 11,575 |
Commercial |
|
6,000 |
|
2,133 |
|
6,288 |
|
11,641 |
|
6,060 |
|
1,917 |
|
5,553 |
|
10,218 |
Industrial |
|
2,898 |
|
4,219 |
|
10,130 |
|
955 |
|
1,769 |
|
3,643 |
|
7,639 |
|
618 |
Other (1) |
|
143 |
|
1,206 |
|
3,096 |
|
(338) |
|
29 |
|
944 |
|
2,931 |
|
710 |
Total Operating |
|
$ 16,683 |
|
$ 9,207 |
|
$ 26,627 |
|
$ 25,199 |
|
$ 14,749 |
|
$ 8,015 |
|
$ 22,012 |
|
$ 23,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (in Dts for natural gas and MWHs for electric) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Residential |
|
230,333 |
|
60,709 |
|
272,148 |
|
99,517 |
|
224,510 |
|
63,778 |
|
249,830 |
|
95,004 |
Commercial |
|
546,228 |
|
1,120,937 |
|
332,476 |
|
93,485 |
|
556,708 |
|
1,073,177 |
|
334,276 |
|
95,689 |
Industrial |
|
1,434,820 |
|
6,981,933 |
|
1,168,396 |
|
7,034 |
|
1,366,112 |
|
7,060,313 |
|
1,168,458 |
|
1,851 |
Other |
|
68,729 |
|
— |
|
804,970 |
|
2,007 |
|
69,337 |
|
— |
|
826,780 |
|
— |
Total |
|
2,280,110 |
|
8,163,579 |
|
2,577,990 |
|
202,043 |
|
2,216,667 |
|
8,197,268 |
|
2,579,344 |
|
192,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Residential |
|
92,776 |
|
19,192 |
|
66,363 |
|
25,585 |
|
87,685 |
|
18,625 |
|
63,324 |
|
25,408 |
Commercial |
|
7,860 |
|
1,647 |
|
4,089 |
|
7,364 |
|
7,751 |
|
1,606 |
|
4,070 |
|
7,347 |
Industrial |
|
211 |
|
16 |
|
2,583 |
|
2 |
|
209 |
|
16 |
|
2,531 |
|
2 |
Other |
|
4 |
|
— |
|
6 |
|
— |
|
5 |
|
— |
|
6 |
|
— |
Total |
|
100,851 |
|
20,855 |
|
73,041 |
|
32,951 |
|
95,650 |
|
20,247 |
|
69,931 |
|
32,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended |
|
For the Nine Months Ended |
||||||||||||
|
|
Delmarva NG |
|
Chesapeake |
|
FPU NG |
|
|
|
Delmarva NG |
|
Chesapeake |
|
FPU NG |
|
|
Operating Revenues (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Residential |
|
$ 61,730 |
|
$ 5,762 |
|
$ 28,798 |
|
$ 30,537 |
|
$ 56,616 |
|
$ 5,281 |
|
$ 26,607 |
|
$ 29,483 |
Commercial |
|
30,556 |
|
6,972 |
|
21,816 |
|
28,127 |
|
28,833 |
|
6,018 |
|
20,726 |
|
26,295 |
Industrial |
|
8,522 |
|
12,795 |
|
30,941 |
|
2,224 |
|
6,200 |
|
11,240 |
|
23,900 |
|
1,477 |
Other (1) |
|
(4,767) |
|
3,564 |
|
908 |
|
3,705 |
|
(4,156) |
|
2,878 |
|
799 |
|
3,314 |
Total Operating |
|
$ 96,041 |
|
$ 29,093 |
|
$ 82,463 |
|
$ 64,593 |
|
$ 87,493 |
|
$ 25,417 |
|
$ 72,032 |
|
$ 60,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (in Dts for natural gas and MWHs for electric) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Residential |
|
3,593,154 |
|
311,765 |
|
1,261,209 |
|
243,341 |
|
3,557,168 |
|
295,564 |
|
1,242,872 |
|
238,458 |
Commercial |
|
3,161,811 |
|
3,624,757 |
|
1,215,719 |
|
232,843 |
|
3,225,803 |
|
3,453,636 |
|
1,237,492 |
|
232,873 |
Industrial |
|
4,591,956 |
|
20,757,542 |
|
3,857,152 |
|
16,644 |
|
4,495,793 |
|
21,687,034 |
|
3,676,442 |
|
8,691 |
Other |
|
231,013 |
|
— |
|
2,474,454 |
|
5,978 |
|
228,666 |
|
— |
|
2,364,525 |
|
— |
Total |
|
11,577,934 |
|
24,694,064 |
|
8,808,534 |
|
498,806 |
|
11,507,430 |
|
25,436,234 |
|
8,521,331 |
|
480,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Residential |
|
92,078 |
|
19,040 |
|
65,624 |
|
25,500 |
|
87,211 |
|
18,622 |
|
62,640 |
|
25,351 |
Commercial |
|
7,906 |
|
1,637 |
|
4,077 |
|
7,342 |
|
7,816 |
|
1,604 |
|
4,089 |
|
7,336 |
Industrial |
|
209 |
|
16 |
|
2,579 |
|
2 |
|
209 |
|
16 |
|
2,507 |
|
2 |
Other |
|
4 |
|
— |
|
6 |
|
— |
|
6 |
|
— |
|
6 |
|
— |
Total |
|
100,197 |
|
20,693 |
|
72,286 |
|
32,844 |
|
95,242 |
|
20,242 |
|
69,242 |
|
32,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Operating Revenues from "Other" sources include unbilled revenue, under (over) recoveries of fuel cost, conservation revenue, other miscellaneous charges, fees for billing services |
(2) |
Prior period amounts have been revised to conform to current period presentation |
View original content:https://www.prnewswire.com/news-releases/chesapeake-utilities-corporation-reports-third-quarter-2022-results-301666847.html
SOURCE