CHESAPEAKE UTILITIES CORPORATION REPORTS FIRST QUARTER 2024 RESULTS
-
Earnings per share ("EPS")* for the first quarter of 2024 was
$2.07 compared to$2.04 per share for the first quarter of 2023 -
Adjusted EPS** for the first quarter of 2024, which excludes transaction and transition-related expenses attributable to the acquisition and integration of
Florida City Gas ("FCG"), increased by three percent to$2.10 compared to$2.04 per share for the first quarter of 2023 -
Adjusted gross margin** growth of
$35.0 million during the first quarter driven by contributions from FCG, natural gas organic growth and continued pipeline expansion projects, additional customer consumption, and regulatory initiatives -
Completed filings for seven projects representing more than
$85 million of capital investment to support growth initiatives inFlorida , including for FCG -
Warmer than normal temperatures in our Delmarva and
Ohio service territories reduced operating income by approximately$1.5 million , or$0.05 per share
Net income for the first quarter of 2024 was
Adjusted earnings for the first quarter of 2024 were driven by incremental margin contributions from FCG; growth in the Company's natural gas distribution businesses and continued pipeline expansion projects to support distribution growth; higher customer consumption; incremental contributions associated with regulated infrastructure programs; and contributions from the Company's
"During the first quarter, we continued to build on the momentum from our strong finish to 2023. While the weather in our service areas was colder than it was last year, temperatures were warmer than normal for our respective territories. Nonetheless, our team once again executed on all fronts, and we remain on track to achieve our 2024 earnings guidance of
"Our success is driven by our progress integrating our FCG and Chesapeake families, pursuing growth investments across all of our businesses, advancing regulatory initiatives and prudently managing expenses. Specifically, the team advanced the FCG integration, delivering efficiencies from consolidating the SAFE and GUARD programs, and filed for three new pipeline projects with the
"We are undertaking numerous initiatives in our march to our 2025 guidance of
Earnings and Capital Investment Guidance
The Company continues to support its 2024 EPS guidance of
From a longer-term perspective, the Company is also reaffirming its previously announced capital expenditure guidance for the five-year period ended 2028 that will range from
*Unless otherwise noted, EPS and Adjusted EPS information are presented on a diluted basis.
Non-GAAP Financial Measures
**This press release including the tables herein, include references to both Generally Accepted Accounting Principles ("GAAP") and non-GAAP financial measures, including Adjusted Gross Margin, Adjusted Net Income and Adjusted EPS. 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. The Company calculates Adjusted Net Income and Adjusted EPS by deducting costs and expenses associated with significant acquisitions that may affect the comparison of period-over-period results. These non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures. The Company believes that these non-GAAP measures are useful and meaningful to investors as a basis for making investment decisions, and provide investors with information that demonstrates the profitability achieved by the Company under allowed rates for regulated energy operations and under the Company's competitive pricing structures for unregulated energy operations. The Company's management uses these non-GAAP financial measures in assessing a business unit and Company performance. Other companies may calculate these non-GAAP financial measures in a different manner.
The following tables reconcile Gross Margin, Net Income, and EPS, all as defined under GAAP, to our non-GAAP measures of Adjusted Gross Margin, Adjusted Net Income and Adjusted EPS for each of the periods presented.
Adjusted Gross Margin |
||||||||
|
||||||||
|
||||||||
|
|
For the Three Months Ended |
||||||
(in thousands) |
|
Regulated |
|
Unregulated |
|
Other and |
|
Total |
Operating Revenues |
|
$ 168,426 |
|
$ 83,103 |
|
$ (5,785) |
|
$ 245,744 |
Cost of Sales: |
|
|
|
|
|
|
|
|
Natural gas, propane and electric costs |
|
(49,918) |
|
(37,054) |
|
5,755 |
|
(81,217) |
Depreciation & amortization |
|
(12,537) |
|
(4,481) |
|
2 |
|
(17,016) |
Operations & maintenance expenses (1) |
|
(12,736) |
|
(8,422) |
|
(2) |
|
(21,160) |
Gross Margin (GAAP) |
|
93,235 |
|
33,146 |
|
(30) |
|
126,351 |
Operations & maintenance expenses (1) |
|
12,736 |
|
8,422 |
|
2 |
|
21,160 |
Depreciation & amortization |
|
12,537 |
|
4,481 |
|
(2) |
|
17,016 |
Adjusted Gross Margin (Non-GAAP) |
|
$ 118,508 |
|
$ 46,049 |
|
$ (30) |
|
$ 164,527 |
|
||||||||
|
||||||||
|
|
For the Three Months Ended |
||||||
(in thousands) |
|
Regulated |
|
Unregulated |
|
Other and |
|
Total |
Operating Revenues |
|
$ 142,270 |
|
$ 83,165 |
|
$ (7,306) |
|
$ 218,129 |
Cost of Sales: |
|
|
|
|
|
|
|
|
Natural gas, propane and electric costs |
|
(55,288) |
|
(40,571) |
|
7,270 |
|
(88,589) |
Depreciation & amortization |
|
(12,952) |
|
(4,234) |
|
3 |
|
(17,183) |
Operations & maintenance expenses (1) |
|
(9,287) |
|
(8,476) |
|
5 |
|
(17,758) |
Gross Margin (GAAP) |
|
64,743 |
|
29,884 |
|
(28) |
|
94,599 |
Operations & maintenance expenses (1) |
|
9,287 |
|
8,476 |
|
(5) |
|
17,758 |
Depreciation & amortization |
|
12,952 |
|
4,234 |
|
(3) |
|
17,183 |
Adjusted Gross Margin (Non-GAAP) |
|
$ 86,982 |
|
$ 42,594 |
|
$ (36) |
|
$ 129,540 |
|
(1) Operations & maintenance expenses within the condensed consolidated statements of income are presented in accordance with regulatory requirements and to provide comparability within the industry. Operations & maintenance expenses which are deemed to be directly attributable to revenue producing activities have been separately presented above in order to calculate Gross Margin as defined under US GAAP. |
Adjusted Net Income and Adjusted EPS |
||||
|
||||
|
||||
|
|
Three Months Ended |
||
|
|
|
||
(in thousands, except per share data) |
|
2024 |
|
2023 |
Net Income (GAAP) |
|
$ 46,168 |
|
$ 36,344 |
FCG transaction and transition-related expenses, net (1) |
|
677 |
|
— |
Adjusted Net Income (Non-GAAP) |
|
$ 46,845 |
|
$ 36,344 |
|
|
|
|
|
Weighted average common shares outstanding - diluted (2) |
|
22,306 |
|
17,832 |
|
|
|
|
|
Earnings Per Share - Diluted (GAAP) |
|
$ 2.07 |
|
$ 2.04 |
FCG transaction and transition-related expenses, net (1) |
|
0.03 |
|
— |
Adjusted Earnings Per Share - Diluted (Non-GAAP) |
|
$ 2.10 |
|
$ 2.04 |
|
(1) Transaction and transition-related expenses represent costs incurred attributable to the acquisition and integration of FCG including, but not limited to, transition services, consulting, system integration, rebranding and legal fees. |
(2)
Weighted average shares for the quarter ended |
|
Operating Results for the Quarters Ended
Consolidated Results |
|||||||
|
|||||||
|
Three Months Ended |
|
|
|
|
||
|
|
|
|
|
|
||
(in thousands) |
2024 |
|
2023 |
|
Change |
|
Percent |
Adjusted gross margin** |
$ 164,527 |
|
$ 129,540 |
|
$ 34,987 |
|
27.0 % |
Depreciation, amortization and property taxes |
26,110 |
|
23,490 |
|
2,620 |
|
11.2 % |
FCG transaction and transition-related expenses |
921 |
|
— |
|
921 |
|
NMF |
Other operating expenses |
57,911 |
|
51,135 |
|
6,776 |
|
13.3 % |
Operating income |
$ 79,585 |
|
$ 54,915 |
|
$ 24,670 |
|
44.9 % |
|
Operating income for the first quarter of 2024 was
Regulated Energy Segment |
|||||||
|
|||||||
|
Three Months Ended |
|
|
|
|
||
|
|
|
|
|
|
||
(in thousands) |
2024 |
|
2023 |
|
Change |
|
Percent |
Adjusted gross margin** |
$ 118,508 |
|
$ 86,982 |
|
$ 31,526 |
|
36.2 % |
Depreciation, amortization and property taxes |
20,955 |
|
18,670 |
|
2,285 |
|
12.2 % |
FCG transaction and transition-related expenses |
921 |
|
— |
|
921 |
|
NMF |
Other operating expenses |
38,523 |
|
30,687 |
|
7,836 |
|
25.5 % |
Operating income |
$ 58,109 |
|
$ 37,625 |
|
$ 20,484 |
|
54.4 % |
|
The key components of the increase in adjusted gross margin** are shown below:
(in thousands) |
|
Contribution from FCG |
$ 24,959 |
Natural gas growth including conversions (excluding service expansions) |
1,916 |
Natural gas transmission service expansions |
1,622 |
Rate changes associated with the |
1,498 |
Contributions from regulated infrastructure programs |
1,278 |
Other variances |
253 |
Quarter-over-quarter increase in adjusted gross margin** |
$ 31,526 |
|
(1)
Includes adjusted gross margin contributions from permanent base rates that became effective in |
|
The major components of the increase in other operating expenses are as follows:
(in thousands) |
|
FCG operating expenses |
$ 10,413 |
Payroll, benefits and other employee-related expenses |
(1,787) |
Other variances |
(790) |
Quarter-over-quarter increase in other operating expenses |
$ 7,836 |
Unregulated Energy Segment |
|||||||
|
|||||||
|
Three Months Ended |
|
|
|
|
||
(in thousands) |
2024 |
|
2023 |
|
Change |
|
Percent |
Adjusted gross margin** |
$ 46,049 |
|
$ 42,594 |
|
$ 3,455 |
|
8.1 % |
Depreciation, amortization and property taxes |
5,155 |
|
4,822 |
|
333 |
|
6.9 % |
Other operating expenses |
19,465 |
|
20,527 |
|
(1,062) |
|
(5.2) % |
Operating income |
$ 21,429 |
|
$ 17,245 |
|
$ 4,184 |
|
24.3 % |
|
The major components of the change in adjusted gross margin** are shown below:
(in thousands) |
|
|
Propane Operations |
|
|
Increased propane customer consumption |
|
$ 1,388 |
Increased propane margins and service fees |
|
559 |
Contributions from acquisition |
|
438 |
Aspire Energy |
|
|
Increased margins - rate changes and gathering fees |
|
938 |
Increased customer consumption |
|
309 |
Other variances |
|
(177) |
Quarter-over-quarter increase in adjusted gross margin** |
|
$ 3,455 |
|
The major components of the decrease in other operating expenses are as follows:
(in thousands) |
|
|
Decreased payroll, benefits and other employee-related expenses |
|
$ (1,177) |
Other variances |
|
115 |
Quarter-over-quarter decrease in other operating expenses |
|
$ (1,062) |
|
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 2023 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the first quarter of 2024 for further information on the risks and uncertainties related to the Company's forward-looking statements.
Conference Call
Toll-free: 800.343.5419
International: 203.518.9731
Conference ID: CPKQ124
A replay of the presentation will be made available on the previously noted website following the conclusion of the call.
About
Please note that
For more information, contact:
Executive Vice President, Chief Financial Officer, Treasurer and Assistant Corporate Secretary
302.734.6022
Senior Vice President and Chief Accounting Officer
302.217.7036
Head of Investor Relations
347.804.9067
Financial Summary |
|||
(in thousands, except per-share data) |
|||
|
|||
|
Three Months Ended |
||
|
|
||
|
2024 |
|
2023 |
Adjusted Gross Margin |
|
|
|
Regulated Energy segment |
$ 118,508 |
|
$ 86,982 |
Unregulated Energy segment |
46,049 |
|
42,594 |
Other businesses and eliminations |
(30) |
|
(36) |
Total Adjusted Gross Margin** |
$ 164,527 |
|
$ 129,540 |
|
|
|
|
Operating Income |
|
|
|
Regulated Energy segment |
$ 58,109 |
|
$ 37,625 |
Unregulated Energy segment |
21,429 |
|
17,245 |
Other businesses and eliminations |
47 |
|
45 |
Total Operating Income |
79,585 |
|
54,915 |
Other income, net |
195 |
|
276 |
Interest charges |
17,026 |
|
7,232 |
Income Before Income Taxes |
62,754 |
|
47,959 |
Income taxes |
16,586 |
|
11,615 |
Net Income |
$ 46,168 |
|
$ 36,344 |
|
|
|
|
Weighted Average Common Shares Outstanding: (1) |
|
|
|
Basic |
22,250 |
|
17,760 |
Diluted |
22,306 |
|
17,832 |
Earnings Per Share of Common Stock |
|
|
|
Basic |
$ 2.07 |
|
$ 2.05 |
Diluted |
$ 2.07 |
|
$ 2.04 |
|
|
|
|
Adjusted Net Income and Adjusted Earnings Per Share |
|
|
|
|
|
|
|
Net Income (GAAP) |
$ 46,168 |
|
$ 36,344 |
FCG transaction and transition-related-expenses, net (2) |
677 |
|
— |
Adjusted Net Income (Non-GAAP)** |
$ 46,845 |
|
$ 36,344 |
|
|
|
|
Earnings Per Share - Diluted (GAAP) |
$ 2.07 |
|
$ 2.04 |
FCG transaction and transition-related-expenses, net (2) |
0.03 |
|
— |
Adjusted Earnings Per Share - Diluted (Non-GAAP)** |
$ 2.10 |
|
$ 2.04 |
|
(1)
Weighted average shares for the quarter ended |
(2) Transaction and transition-related expenses represent costs incurred attributable to the acquisition and integration of FCG including, but not limited to, transition services, consulting, system integration, rebranding and legal fees. |
|
Financial Summary Highlights
Key variances between the first quarter of 2023 and the first quarter of 2024 included:
(in thousands, except per share data) |
|
Pre-tax Income |
|
Net Income |
|
Earnings Per Share |
First Quarter of 2023 Adjusted Results |
|
|
|
|
|
$ 2.04 |
|
|
|
|
|
|
|
Non-recurring Items: |
|
|
|
|
|
|
Absence of the one-time benefit associated with a reduction in the PA state tax rate |
|
— |
|
(1,284) |
|
(0.06) |
|
|
— |
|
(1,284) |
|
(0.06) |
|
|
|
|
|
|
|
Increased Adjusted Gross Margins: |
|
|
|
|
|
|
Contribution from recent acquisitions |
|
25,397 |
|
18,685 |
|
0.84 |
Natural gas growth including conversions (excluding service expansions) |
|
1,916 |
|
1,409 |
|
0.07 |
Changes in customer consumption |
|
1,906 |
|
1,402 |
|
0.06 |
Natural gas transmission service expansions* |
|
1,622 |
|
1,193 |
|
0.05 |
Contribution from rates associated with the |
|
1,498 |
|
1,102 |
|
0.05 |
Contributions from regulated infrastructure programs* |
|
1,278 |
|
941 |
|
0.04 |
Higher performance from Aspire Energy |
|
938 |
|
690 |
|
0.03 |
Increased propane margins and service fees |
|
559 |
|
411 |
|
0.02 |
|
|
35,114 |
|
25,833 |
|
1.16 |
|
|
|
|
|
|
|
(Increased) Decreased Operating Expenses ( |
|
|
|
|
|
|
FCG operating expenses |
|
(10,413) |
|
(7,661) |
|
(0.34) |
Depreciation, amortization and property tax costs |
|
(1,498) |
|
(1,102) |
|
(0.05) |
Insurance related costs |
|
(525) |
|
(386) |
|
(0.02) |
Payroll, benefits and other employee-related expenses |
|
2,964 |
|
2,181 |
|
0.10 |
|
|
(9,472) |
|
(6,968) |
|
(0.31) |
|
|
|
|
|
|
|
Interest charges |
|
(9,794) |
|
(7,206) |
|
(0.32) |
Increase in shares outstanding due to 2023 and 2024 equity offerings |
|
— |
|
— |
|
(0.41) |
Net other changes |
|
(132) |
|
126 |
|
— |
|
|
(9,926) |
|
(7,080) |
|
(0.73) |
First Quarter of 2024 Adjusted Results** |
|
|
|
|
|
$ 2.10 |
|
* Refer to Major Projects and Initiatives Table for additional information. |
** Transaction and transition-related expenses attributable to the acquisition and integration of FCG have been excluded from the Company's non-GAAP measures of adjusted net income and adjusted EPS. See reconciliations above for a detailed comparison to the related GAAP measures. |
|
Recently Completed and Ongoing Major Projects and Initiatives
The Company continuously pursues and develops additional projects and initiatives to serve existing and new customers, further grow its businesses and earnings, and increase shareholder value. The following table includes all major projects and initiatives that are currently underway or recently completed. The Company's practice is to add new projects and initiatives to this table once negotiations or details are substantially final and/or the associated earnings can be estimated. 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.
The related descriptions of projects and initiatives that accompany the table include only new items and/or items where there have been significant developments, all compared to the Company's prior quarter filings. A comprehensive discussion of all projects and initiatives reflected in the table below can be found in the Company's first quarter 2024 Quarterly Report on Form 10-Q.
|
Adjusted Gross Margin |
||||||||
|
Three Months Ended |
|
Year Ended |
|
Estimate for |
||||
|
|
|
|
|
Fiscal |
||||
(in thousands) |
2024 |
|
2023 |
|
2023 |
|
2024 |
|
2025 |
Pipeline Expansions: |
|
|
|
|
|
|
|
|
|
Southern Expansion |
$ 586 |
|
$ — |
|
$ 586 |
|
$ 2,344 |
|
$ 2,344 |
Beachside Pipeline Expansion |
603 |
|
— |
|
1,810 |
|
2,451 |
|
2,414 |
North Ocean City Connector |
— |
|
— |
|
— |
|
— |
|
494 |
|
146 |
|
— |
|
264 |
|
584 |
|
584 |
Wildlight |
199 |
|
26 |
|
471 |
|
2,000 |
|
2,038 |
|
114 |
|
— |
|
265 |
|
454 |
|
454 |
|
— |
|
— |
|
— |
|
862 |
|
2,585 |
|
— |
|
— |
|
— |
|
— |
|
3,342 |
|
— |
|
— |
|
— |
|
— |
|
1,710 |
Total Pipeline Expansions |
1,648 |
|
26 |
|
3,396 |
|
8,695 |
|
15,965 |
|
|
|
|
|
|
|
|
|
|
CNG/RNG/LNG Transportation and Infrastructure |
3,435 |
|
3,521 |
|
11,181 |
|
12,500 |
|
13,969 |
|
|
|
|
|
|
|
|
|
|
Regulatory Initiatives: |
|
|
|
|
|
|
|
|
|
Florida GUARD program |
589 |
|
— |
|
353 |
|
3,231 |
|
5,602 |
FCG SAFE Program |
412 |
|
— |
|
— |
|
2,683 |
|
5,293 |
Capital Cost Surcharge Programs |
831 |
|
720 |
|
2,829 |
|
3,979 |
|
4,374 |
Florida Rate Case Proceeding (1) |
5,595 |
|
4,097 |
|
15,835 |
|
17,153 |
|
17,153 |
|
— |
|
— |
|
— |
|
TBD |
|
TBD |
Electric Storm Protection Plan |
630 |
|
206 |
|
1,326 |
|
2,433 |
|
3,951 |
Total Regulatory Initiatives |
8,057 |
|
5,023 |
|
20,343 |
|
29,479 |
|
36,373 |
|
|
|
|
|
|
|
|
|
|
Total |
$ 13,140 |
|
$ 8,570 |
|
$ 34,920 |
|
$ 50,674 |
|
$ 66,307 |
|
(1)
Includes adjusted gross margin during 2023 comprised of both interim rates and permanent base rates which became effective in |
(2)
Rate case application and depreciation study filed with the Maryland PSC in |
|
Detailed Discussion of Major Projects and Initiatives
Pipeline Expansions
In
In
Newberry Expansion
In
East Coast Reinforcement Projects
In
Central Florida Reinforcement Projects
In
In
Alternative Natural Gas Projects
In
Regulatory Initiatives
Maryland Natural Gas Rate Case
In
Maryland Natural Gas Depreciation Study
In
FCG SAFE Program
In
Other Major Factors Influencing Adjusted Gross Margin
Weather and Consumption
For the first quarter of 2024, higher consumption driven primarily by colder weather compared to the first quarter of 2023 resulted in a
HDD and CDD Information
|
Three Months Ended |
|
|
||
|
|
|
|
||
|
2024 |
|
2023 |
|
Variance |
Delmarva |
|
|
|
|
|
Actual HDD |
1,962 |
|
1,774 |
|
188 |
10-Year Average HDD ("Normal") |
2,221 |
|
2,285 |
|
(64) |
Variance from Normal |
(259) |
|
(511) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual HDD |
470 |
|
344 |
|
126 |
10-Year Average HDD ("Normal") |
470 |
|
505 |
|
(35) |
Variance from Normal |
— |
|
(161) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual HDD |
2,659 |
|
2,384 |
|
275 |
10-Year Average HDD ("Normal") |
2,965 |
|
2,965 |
|
— |
Variance from Normal |
(306) |
|
(581) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual CDD |
181 |
|
323 |
|
(142) |
10-Year Average CDD ("Normal") |
217 |
|
192 |
|
25 |
Variance from Normal |
(36) |
|
131 |
|
|
|
Natural Gas Distribution Growth
The average number of residential customers served on the
The details of the adjusted gross margin increase are provided in the following table:
|
Adjusted Gross Margin** |
||
|
For the Three Months Ended |
||
(in thousands) |
|
|
|
Customer growth: |
|
|
|
Residential |
$ 490 |
|
$ 880 |
Commercial and industrial |
156 |
|
390 |
Total customer growth (1) |
$ 646 |
|
$ 1,270 |
|
(1)
Customer growth amounts for the legacy |
|
Capital Investment Growth and Capital Structure Updates
The Company's capital expenditures were
|
2024 |
||
(in thousands) |
Low |
|
High |
Regulated Energy: |
|
|
|
Natural gas distribution |
$ 150,000 |
|
$ 170,000 |
Natural gas transmission |
90,000 |
|
120,000 |
Electric distribution |
25,000 |
|
28,000 |
Total Regulated Energy |
265,000 |
|
318,000 |
Unregulated Energy: |
|
|
|
Propane distribution |
13,000 |
|
15,000 |
Energy transmission |
5,000 |
|
6,000 |
Other unregulated energy |
13,000 |
|
15,000 |
Total Unregulated Energy |
31,000 |
|
36,000 |
Other: |
|
|
|
Corporate and other businesses |
4,000 |
|
6,000 |
Total 2024 Forecasted Capital Expenditures |
$ 300,000 |
|
$ 360,000 |
|
The capital expenditure projection is subject to continuous review and modification. Actual capital requirements may vary from the above estimates due to a number of factors, including changing economic conditions, supply chain disruptions, capital delays that are greater than currently anticipated, customer growth in existing areas, regulation, new growth or acquisition opportunities and availability of capital. Historically, actual capital expenditures have typically lagged behind the forecasted amounts.
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 approximately 48 percent as of
|
||||
Condensed Consolidated Statements of Income (Unaudited) |
||||
|
||||
|
|
Three Months Ended |
||
|
|
|
||
|
|
2024 |
|
2023 |
(in thousands, except per share data) |
|
|
|
|
Operating Revenues |
|
|
|
|
Regulated Energy |
|
$ 168,426 |
|
$ 142,270 |
Unregulated Energy |
|
83,103 |
|
83,166 |
Other businesses and eliminations |
|
(5,785) |
|
(7,307) |
Total Operating Revenues |
|
245,744 |
|
218,129 |
Operating Expenses |
|
|
|
|
Natural gas and electricity costs |
|
49,918 |
|
55,288 |
Propane and natural gas costs |
|
31,299 |
|
33,301 |
Operations |
|
51,560 |
|
44,767 |
FCG transaction and transition-related expenses |
|
921 |
|
— |
Maintenance |
|
5,903 |
|
5,104 |
Depreciation and amortization |
|
17,016 |
|
17,183 |
Other taxes |
|
9,542 |
|
7,571 |
Total operating expenses |
|
166,159 |
|
163,214 |
Operating Income |
|
79,585 |
|
54,915 |
Other income, net |
|
195 |
|
276 |
Interest charges |
|
17,026 |
|
7,232 |
Income Before Income Taxes |
|
62,754 |
|
47,959 |
Income taxes |
|
16,586 |
|
11,615 |
Net Income |
|
$ 46,168 |
|
$ 36,344 |
|
|
|
|
|
Weighted Average Common Shares Outstanding: |
|
|
|
|
Basic |
|
22,250 |
|
17,760 |
Diluted |
|
22,306 |
|
17,832 |
|
|
|
|
|
Earnings Per Share of Common Stock: |
|
|
|
|
Basic |
|
$ 2.07 |
|
$ 2.05 |
Diluted |
|
$ 2.07 |
|
$ 2.04 |
|
|
|
|
|
Adjusted Net Income and Adjusted Earnings Per Share |
|
|
|
|
Net Income (GAAP) |
|
$ 46,168 |
|
$ 36,344 |
FCG transaction and transition-related expenses, net (1) |
|
677 |
|
— |
Adjusted Net Income (Non-GAAP)** |
|
$ 46,845 |
|
$ 36,344 |
|
|
|
|
|
Earnings Per Share - Diluted (GAAP) |
|
$ 2.07 |
|
$ 2.04 |
FCG transaction and transition-related expenses, net (1) |
|
0.03 |
|
— |
Adjusted Earnings Per Share - Diluted (Non-GAAP)** |
|
$ 2.10 |
|
$ 2.04 |
|
(1) Transaction and transition-related expenses represent costs incurred attributable to the acquisition and integration of FCG including, but not limited to, transition services, consulting, system integration, rebranding and legal fees. |
|
||||
Consolidated Balance Sheets (Unaudited) |
||||
|
||||
Assets |
|
|
|
|
(in thousands, except per share data) |
|
|
|
|
Property, Plant and Equipment |
|
|
|
|
Regulated Energy |
|
$ 2,470,135 |
|
$ 2,418,494 |
Unregulated Energy |
|
416,833 |
|
410,807 |
Other businesses and eliminations |
|
31,606 |
|
30,310 |
Total property, plant and equipment |
|
2,918,574 |
|
2,859,611 |
Less: Accumulated depreciation and amortization |
|
(530,832) |
|
(516,429) |
Plus: Construction work in progress |
|
123,338 |
|
113,192 |
Net property, plant and equipment |
|
2,511,080 |
|
2,456,374 |
Current Assets |
|
|
|
|
Cash and cash equivalents |
|
1,695 |
|
4,904 |
Trade and other receivables |
|
70,750 |
|
74,485 |
Less: Allowance for credit losses |
|
(2,450) |
|
(2,699) |
Trade and other receivables, net |
|
68,300 |
|
71,786 |
Accrued revenue |
|
28,308 |
|
32,597 |
Propane inventory, at average cost |
|
8,367 |
|
9,313 |
Other inventory, at average cost |
|
19,638 |
|
19,912 |
Regulatory assets |
|
24,289 |
|
19,506 |
Storage gas prepayments |
|
1,147 |
|
4,695 |
Income taxes receivable |
|
— |
|
3,829 |
Prepaid expenses |
|
13,681 |
|
15,407 |
Derivative assets, at fair value |
|
1,012 |
|
1,027 |
Other current assets |
|
3,228 |
|
2,723 |
Total current assets |
|
169,665 |
|
185,699 |
Deferred Charges and Other Assets |
|
|
|
|
|
|
507,573 |
|
508,174 |
Other intangible assets, net |
|
16,414 |
|
16,865 |
Investments, at fair value |
|
13,221 |
|
12,282 |
Derivative assets, at fair value |
|
126 |
|
40 |
Operating lease right-of-use assets |
|
11,719 |
|
12,426 |
Regulatory assets |
|
86,039 |
|
96,396 |
Receivables and other deferred charges |
|
16,047 |
|
16,448 |
Total deferred charges and other assets |
|
651,139 |
|
662,631 |
Total Assets |
|
$ 3,331,884 |
|
$ 3,304,704 |
|
||||
Consolidated Balance Sheets (Unaudited) |
||||
|
||||
Capitalization and Liabilities |
|
|
|
|
(in thousands, except per share data) |
|
|
|
|
Capitalization |
|
|
|
|
Stockholders' equity |
|
|
|
|
Preferred stock, par value |
|
$ — |
|
$ — |
Common stock, par value |
|
10,838 |
|
10,823 |
Additional paid-in capital |
|
750,162 |
|
749,356 |
Retained earnings |
|
521,689 |
|
488,663 |
Accumulated other comprehensive loss |
|
(1,786) |
|
(2,738) |
Deferred compensation obligation |
|
9,562 |
|
9,050 |
|
|
(9,562) |
|
(9,050) |
Total stockholders' equity |
|
1,280,903 |
|
1,246,104 |
Long-term debt, net of current maturities |
|
1,185,166 |
|
1,187,075 |
Total capitalization |
|
2,466,069 |
|
2,433,179 |
Current Liabilities |
|
|
|
|
Current portion of long-term debt |
|
18,511 |
|
18,505 |
Short-term borrowing |
|
170,355 |
|
179,853 |
Accounts payable |
|
63,058 |
|
77,481 |
Customer deposits and refunds |
|
43,682 |
|
46,427 |
Accrued interest |
|
17,148 |
|
7,020 |
Dividends payable |
|
13,138 |
|
13,119 |
Accrued compensation |
|
7,066 |
|
16,544 |
Regulatory liabilities |
|
21,328 |
|
13,719 |
Income taxes payable |
|
818 |
|
— |
Derivative liabilities, at fair value |
|
31 |
|
354 |
Other accrued liabilities |
|
16,520 |
|
13,362 |
Total current liabilities |
|
371,655 |
|
386,384 |
Deferred Credits and Other Liabilities |
|
|
|
|
Deferred income taxes |
|
271,335 |
|
259,082 |
Regulatory liabilities |
|
193,030 |
|
195,279 |
Environmental liabilities |
|
2,546 |
|
2,607 |
Other pension and benefit costs |
|
16,010 |
|
15,330 |
Derivative liabilities, at fair value |
|
43 |
|
927 |
Operating lease - liabilities |
|
9,832 |
|
10,550 |
Deferred investment tax credits and other liabilities |
|
1,364 |
|
1,366 |
Total deferred credits and other liabilities |
|
494,160 |
|
485,141 |
Environmental and other commitments and contingencies (1) |
|
|
|
|
Total Capitalization and Liabilities |
|
$ 3,331,884 |
|
$ 3,304,704 |
|
(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 |
|
|
|
|
|
|
|
Delmarva NG |
|
|
|
|
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
$ 35,796 |
|
$ 15,343 |
|
$ 15,031 |
|
$ 11,426 |
|
$ 42,020 |
|
$ 16,496 |
|
$ 11,357 |
Commercial and Industrial |
17,567 |
|
31,053 |
|
19,434 |
|
10,783 |
|
21,425 |
|
25,739 |
|
11,740 |
Other (1) |
(1,675) |
|
1,560 |
|
1,412 |
|
(2,245) |
|
(3,052) |
|
4,123 |
|
(360) |
Total Operating Revenues |
$ 51,688 |
|
$ 47,956 |
|
$ 35,877 |
|
$ 19,964 |
|
$ 60,393 |
|
$ 46,358 |
|
$ 22,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (in Dts for natural gas and |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
2,438,154 |
|
841,041 |
|
599,337 |
|
72,021 |
|
2,291,320 |
|
753,756 |
|
68,517 |
Commercial and Industrial |
3,427,173 |
|
10,115,552 |
|
2,984,627 |
|
87,827 |
|
3,387,831 |
|
10,307,956 |
|
68,703 |
Other |
89,098 |
|
731,006 |
|
1,598,743 |
|
— |
|
87,536 |
|
627,934 |
|
— |
Total |
5,954,425 |
|
11,687,599 |
|
5,182,707 |
|
159,848 |
|
5,766,687 |
|
11,689,646 |
|
137,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
100,534 |
|
90,471 |
|
113,027 |
|
25,704 |
|
96,511 |
|
87,325 |
|
25,616 |
Commercial and Industrial |
8,397 |
|
8,474 |
|
8,519 |
|
7,371 |
|
8,270 |
|
8,409 |
|
7,359 |
Other |
25 |
|
— |
|
100 |
|
— |
|
24 |
|
6 |
|
— |
Total |
108,956 |
|
98,945 |
|
121,646 |
|
33,075 |
|
104,805 |
|
95,740 |
|
32,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Operating Revenues from "Other" sources include unbilled revenue, under (over) recoveries of fuel cost, conservation revenue, other miscellaneous charges, fees for billing services provided to third parties and adjustments for pass-through taxes. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/chesapeake-utilities-corporation-reports-first-quarter-2024-results-302140425.html
SOURCE