CHESAPEAKE UTILITIES CORPORATION REPORTS SECOND QUARTER 2026 RESULTS

Rhea-AI Summary

Chesapeake Utilities (NYSE: CPK) reported second-quarter 2026 net income of $25.4 million and diluted EPS of $1.05, up from $23.9 million and $1.02 a year earlier. Year-to-date net income was $84.7 million with diluted and adjusted EPS of $3.51, reflecting an 8.0% year-to-date growth rate in Adjusted EPS.

Adjusted gross margin increased $7.4 million in the quarter and $31.2 million year to date, a 9.6% growth rate for the six months, driven by transmission expansions, regulatory and infrastructure programs, natural gas growth and stronger unregulated businesses. The company invested $139.7 million in capital in Q2 and $261.6 million year to date.

Chesapeake Utilities announced the $1.2 billion Florida Energy Pathway (FEP)/b) natural gas pipeline in south Florida with about , targeting in-service in 2030. 2026 capital expenditure guidance was raised by $100 million to $550–$600 million, and long-term 2024–2028 capital investment is now expected to exceed $2.2 billion, compared with prior guidance of $1.5–$1.8 billion. The company reaffirmed 2028 EPS guidance of $7.75–$8.00 and increased its revolving credit facility capacity to $650 million. The Florida PSC also approved $16.2 million of interim annualized rates effective July 2026 in the ongoing Florida City Gas rate case.

Positive

• Q2 2026 net income $25.4M vs. $23.9M in 2025
• Q2 2026 diluted EPS $1.05 vs. $1.02 in 2025
• YTD 2026 diluted and adjusted EPS $3.51, up 8.0% Adjusted EPS
• Adjusted gross margin +$7.4M in Q2, +$31.2M YTD, 9.6% growth
• Raised 2026 capex guidance by $100M to $550–$600M
• Long-term capital plan now expected to exceed $2.2B for 2024–2028
• Announced $1.2B FEP project with 250,000 Dts/d committed capacity
• Revolving credit facility capacity increased to $650M
• Florida PSC interim rates $16.2M annualized effective July 2026

Negative

• Higher operating expenses reduced Q2 pre-tax income by $5.6M and EPS by $0.17
• Six-month operating expense increases reduced pre-tax income by $16.5M and EPS by $0.50
• Decreased CNG/RNG/LNG services reduced Q2 EPS by $0.04 and YTD by $0.04
• Absence of Hurricane Michael recoveries reduced Q2 EPS by $0.06 and YTD by $0.12
• Interest charges reduced EPS by $0.02 in Q2 and $0.04 year to date
• Share issuances of about 0.6M shares reduced EPS by $0.03 in Q2 and $0.12 YTD

News Explained

The release identifies approximately $0.6 million common shares issued through its DRIP/DSPP and ATM program; that raises the share count and, absent offsetting changes, reduces existing holders’ percentage ownership, while lowering diluted EPS by $0.03 in the quarter and $0.12 year to date.

Market Context

The earnings-tag history averaged a 0.45% move across five events. That record places this release a...

Analysis

The earnings-tag history averaged a 0.45% move across five events. That record places this release alongside prior results, while low short positioning and recent net selling add risk context; the disclosed 2027-2031 guidance update remains a watch item.

Key Figures

Q2 Net Income: $25.4 million Q2 EPS: $1.05 Year-to-Date Net Income: $84.7 million +5 more

8 metrics

Q2 Net Income $25.4 million Second quarter 2026

Q2 EPS $1.05 Second quarter 2026

Year-to-Date Net Income $84.7 million Six months ended June 30, 2026

Year-to-Date EPS $3.51 Six months ended June 30, 2026

Adjusted EPS Growth 8.0 percent Year to date

Adjusted Gross Margin Growth $7.4 million Second quarter 2026

2026 Capital Guidance $550-$600 million Increased 2026 capital expenditure guidance

FEP Project Investment $1.2 billion Florida Energy Pathway natural gas pipeline project

Previous Earnings Reports

5 past events · Latest: May 06 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 06	First-quarter earnings	Positive	+1.1%	Quarterly earnings growth and increased 2026 capital guidance supported a positive reaction.
Feb 25	Fiscal-year earnings	Positive	+0.3%	Annual earnings growth and reaffirmed capital and EPS guidance accompanied a positive reaction.
Nov 06	Third-quarter earnings	Positive	+2.0%	Gross-margin growth and increased capital guidance accompanied a positive reaction.
Aug 07	Second-quarter earnings	Positive	+1.8%	Quarterly earnings growth and raised capital guidance accompanied a positive reaction.
May 07	First-quarter earnings	Positive	-2.9%	Earnings and adjusted gross-margin growth were followed by a negative reaction.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-specific earnings events were generally followed by positive price reactions, with one negative divergence.

Key Terms

non-gaap financial measure, adjusted gross margin, atm program

3 terms

non-gaap financial measure financial

"A "non-GAAP financial measure" is generally defined as a numerical measure"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

adjusted gross margin financial

"including Adjusted Gross Margin, Adjusted Net Income and Adjusted EPS"

Adjusted gross margin is a measure of how much profit a company makes from its sales after accounting for certain expenses or one-time costs, but before deducting other operating expenses. It helps investors see the company's core profitability more clearly by removing factors that might distort the usual profit picture, similar to a runner measuring their speed without considering obstacles or weather. This metric provides a clearer view of the company's ongoing financial health.

atm program financial

"issued under the dividend reinvestment and direct stock purchase plan"

An at-the-market (ATM) program is an arrangement that lets a publicly traded company sell newly issued shares gradually into the open market at prevailing prices, through a designated broker-dealer, instead of raising money in one large offering. It gives the company flexible, lower-cost fundraising; for existing shareholders it matters because each sale adds to the share count, which can dilute their ownership stake.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Net income and earnings per share ("EPS")* were $25.4 million and $1.05, respectively, for the second quarter and $84.7 million and $3.51, respectively, year to date
• Year-to-date growth rate of 8.0 percent on Adjusted EPS**, which excludes the transaction and transition-related expenses attributable to the acquisition and integration of Florida City Gas ("FCG")
• Adjusted gross margin** growth of $7.4 million for the second quarter and $31.2 million year to date, representing a 9.6 percent growth rate for the six months ended June 30, 2026, driven largely by transmission expansion projects, regulatory initiatives and infrastructure programs, natural gas organic growth, and improved contributions from unregulated businesses. 
• The Company is increasing its 2026 capital guidance range to $550 - $600 million in light of advances on various capital projects

DOVER, Del., Aug. 6, 2026 /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) ("Chesapeake Utilities" or the "Company") today announced financial results for the three and six months ended June 30, 2026.

Additional highlights include:

• 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 in-service date in 2030
• Increased capacity under the Company's revolving credit facility to $650 million to support capital investment growth
• Capital investment of $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, effective in July 2026, were approved by the Florida Public Service Commission ("PSC") in connection with the Company's ongoing FCG rate case

"Our second quarter results demonstrate consistent operational and financial performance as we make substantial progress on transforming for the next phase of sustained enterprise growth," said Jeff Householder, the Company's Chair of the Board, President and Chief Executive Officer. "We are also excited to be moving forward with the Florida Energy Pathway infrastructure project. This represents a significant investment opportunity to bring capacity and reliability to south Florida and support long-term growth across the state."

Earnings and Capital Investment Guidance

The Company is increasing its 2026 capital expenditure guidance by $100 million to $550 - $600 million, driven primarily by increases in transmission (including initial investments in FEP), distribution and infrastructure investments.

The Company had previously issued long-term capital guidance for the 2024 - 2028 period of $1.5 - $1.8 billion. Given a robust capital investment program to date and the recently announced FEP project, the Company expects to achieve capital investment of approximately $1.4 billion through 2026 and total investment exceeding $2.2 billion for the five-year period ended 2028. The Company also continues to reaffirm its 2028 earnings guidance of $7.75 - $8.00 per share.

As the Company continues discussions with potential partners for the FEP project and makes additional progress on its long-term investment opportunities, the Company expects to provide a long-term guidance update during its Full-Year 2026 earnings call in February 2027. At that time, the Company expects to provide a capital guidance range and EPS growth rate for the 2027 - 2031 period.

*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. The Company's 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 the Company's non-GAAP measures of Adjusted Gross Margin, Adjusted Net Income and Adjusted EPS for each of the periods presented.

Adjusted Net Income and Adjusted EPS

		Three Months Ended				Six Months Ended
		June 30,				June 30,
(dollars in millions, shares in thousands (except per share data))		2026		2025		2026		2025
Net Income (GAAP)		$         25.4		$         23.9		$         84.7		$         74.8
FCG transaction and transition-related expenses, net (1)		—		0.4		—		0.6
Adjusted Net Income (Non-GAAP)		$         25.4		$         24.3		$         84.7		$         75.4
Weighted average common shares outstanding - diluted		24,174		23,402		24,115		23,223
Earnings Per Share - Diluted (GAAP)		$         1.05		$         1.02		$         3.51		$         3.22
FCG transaction and transition-related expenses, net (1)		—		0.02		—		0.03
Adjusted Earnings Per Share - Diluted (Non-GAAP)		$         1.05		$         1.04		$         3.51		$         3.25

(1) Transaction and transition-related expenses represent non-recurring 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 second quarter of 2025 and 2026 included:

(in millions, except per share data)		Pre-tax Income		Net Income		Earnings Per Share
Three Months Ended June 30, 2025 Adjusted Results (1)		$      33.3		$       24.3		$       1.04
Change in Adjusted Gross Margins:
Natural gas transmission service expansions, including interim services (2)		4.9		3.6		0.15
Contributions from regulated infrastructure programs (2)		3.2		2.4		0.10
Natural gas growth including conversions (excluding service expansions)		2.0		1.4		0.06
Increased propane margins and service fees		1.5		1.1		0.05
Increased Aspire Energy performance - rate changes and gathering fees		0.4		0.3		0.01
Change in off-system natural gas capacity sales		0.3		0.2		—
Decreased CNG/RNG/LNG services		(1.0)		(1.0)		(0.04)
Absence of recovered costs associated with Hurricane Michael (3)		(1.9)		(1.4)		(0.06)
Changes in customer consumption		(2.7)		(2.0)		(0.08)
		6.7		4.6		0.19
Change in Operating Expenses (Excluding Natural Gas, Propane, and Electric Costs):
Depreciation, amortization and property taxes		(3.5)		(2.6)		(0.11)
Credit, collections and customer service costs		(1.3)		(0.9)		(0.04)
Payroll, benefits and other employee-related expenses		(1.2)		(0.8)		(0.03)
Facilities expenses, maintenance costs and outside services		(0.6)		(0.5)		(0.02)
Vehicle expenses		(0.5)		(0.3)		(0.02)
Insurance-related costs		(0.4)		(0.2)		(0.01)
Absence of amortization of costs associated with Hurricane Michael recovery (3)		1.9		1.3		0.06
		(5.6)		(4.0)		(0.17)
Interest charges		(0.6)		(0.4)		(0.02)
Increase in shares outstanding due to 2025 and 2026 equity offerings (4)		—		—		(0.03)
Net other changes		1.2		0.9		0.04
		0.6		0.5		(0.01)
Three Months Ended June 30, 2026 Adjusted Results (1)		$      35.0		$       25.4		$       1.05

(1)  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.

(2)  Refer to the Major Projects and Initiatives table below for additional information.

(3)  The current period includes offsetting reductions in both adjusted gross margin and depreciation and amortization expense related to the absence of recovered costs associated with Hurricane Michael.

(4)  Reflects the impact of approximately 0.6 million common shares issued under the dividend reinvestment and direct stock purchase plan ("DRIP/DSPP") and at the market ("ATM") program.

Key variances between the six months ended June 30, 2025 and June 30, 2026 included:

(in millions, except per share data)		Pre-tax Income		Net Income		Earnings Per Share
Six months ended June 30, 2025 Adjusted Results (1)		$     103.0		$       75.4		$       3.25
Change in Adjusted Gross Margins:
Natural gas transmission service expansions, including interim services (2)		11.8		8.7		0.36
Contributions from regulated infrastructure programs (2)		8.7		6.4		0.27
Natural gas growth including conversions (excluding service expansions)		4.0		2.9		0.12
Rate changes associated with recent rate case activities (2)		4.1		3.0		0.13
Increased propane margins and service fees		1.8		1.3		0.05
Increased Aspire Energy performance - rate changes and gathering fees		1.8		1.3		0.05
Changes in customer consumption		1.8		1.3		0.06
Change in off-system natural gas capacity sales		1.4		1.0		0.04
Decreased CNG/RNG/LNG services		(1.2)		(0.9)		(0.04)
Absence of recovered costs associated with Hurricane Michael (3)		(3.9)		(2.8)		(0.12)
		30.3		22.2		0.92
Change in Operating Expenses (Excluding Natural Gas, Propane, and Electric Costs):
Payroll, benefits and other employee-related expenses		(7.8)		(5.7)		(0.24)
Depreciation, amortization and property taxes		(5.0)		(3.7)		(0.15)
Facilities expenses, maintenance costs and outside services		(3.7)		(2.7)		(0.11)
Credit, collections and customer service costs		(2.7)		(2.0)		(0.08)
Insurance-related costs		(0.6)		(0.4)		(0.02)
Vehicle expenses		(0.6)		(0.4)		(0.02)
Absence of amortization of costs associated with Hurricane Michael recovery (3)		3.9		2.8		0.12
		(16.5)		(12.1)		(0.50)
Interest charges		(1.2)		(0.8)		(0.04)
Increase in shares outstanding due to 2025 and 2026 equity offerings (4)		—		—		(0.12)
Net other changes		0.1		—		—
		(1.1)		(0.8)		(0.16)
Six months ended June 30, 2026 Adjusted Results (1)		$     115.7		$       84.7		$       3.51

(1) Transaction and transition-related expenses attributable to the acquisition and integration of FCG have been excluded from Company's non-GAAP measures of adjusted net income and adjusted EPS. See reconciliations above for a detailed comparison to the related GAAP measures.

(2)  Refer to the Major Projects and Initiatives table below for additional information.

(3) The current period includes offsetting reductions in both adjusted gross margin and depreciation and amortization expense related to the absence of recovered costs associated with Hurricane Michael.

(4)  Reflects the impact of approximately 0.6 million common shares issued under the Company's DRIP/DSPP and ATM program.

Major Projects and Initiatives (ongoing and recently completed)

The Company continues to execute on its strategic plan driving significant investment in its service territories. A summary table of major project and initiatives is presented below with a comprehensive discussion of each of the items presented in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

	Adjusted Gross Margin
	Three Months Ended				Six Months Ended				Year Ended		Estimate for
	June 30,				June 30,				December 31,		Fiscal
(in millions)	2026		2025		2026		2025		2025		2026		2027
Pipeline Expansions:
St. Cloud / Twin Lakes Expansion	$     1.0		$     0.8		$      2.0		$      0.9		$          2.9		$      3.8		$      3.8
Wildlight	1.1		0.5		2.2		1.0		2.6		4.3		4.3
Worcester Resiliency Upgrade	0.4		—		0.8		—		0.3		1.5		17.1
Boynton Beach	0.9		0.9		1.8		1.4		3.0		3.4		3.4
New Smyrna Beach	0.6		0.3		1.2		0.3		1.6		2.6		2.6
Central Florida Reinforcement	1.1		0.3		2.2		0.6		2.6		4.3		4.3
Renewable Natural Gas Supply Projects	1.2		0.5		2.5		0.5		2.5		5.4		6.4
Miami Inner Loop	1.9		—		3.8		—		2.8		7.6		7.6
Duncan Plains	—		—		—		—		—		—		1.1
Total Pipeline Expansions	8.2		3.3		16.5		4.7		18.3		32.9		50.6
Regulatory Initiatives:
Florida GUARD program	2.6		1.7		5.0		3.2		7.1		10.9		13.0
FCG SAFE Program	2.9		2.2		5.7		3.9		8.4		12.7		16.4
Capital Cost Surcharge Programs	2.3		1.4		4.6		2.9		5.7		9.0		10.1
Electric Storm Protection Plan	1.8		1.5		5.1		2.6		6.4		9.7		10.4
Florida Mandatory Relocates	0.4		—		0.9		—		—		1.5		1.5
Infrastructure Subtotal	10.0		6.8		21.3		12.6		27.6		43.8		51.4
Rate Case
Maryland Rate Case (1)	0.7		0.6		2.0		0.6		1.5		3.5		3.5
Delaware Rate Case (1)	1.3		1.4		3.4		2.2		4.7		6.1		6.1
Electric Rate Case (1)	2.1		2.1		4.3		2.8		7.3		8.6		9.1
FCG Rate Case	—		—		—		—		—		TBD		TBD
Rate Case Subtotal	4.1		4.1		9.7		5.6		13.5		18.2		18.7
Total Regulatory Initiatives	14.1		10.9		31.0		18.2		41.1		62.0		70.1
Total	$    22.3		$    14.2		$     47.5		$     22.9		$         59.4		$     94.9		$   120.7

(1) Includes adjusted gross margin attributable to interim and permanent rates.

 

Chesapeake Utilities Corporation and Subsidiaries Condensed Consolidated Statements of Income (Unaudited)
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2026		2025		2026		2025
(in millions, except shares (thousands) and per share data)
Operating Revenues
Regulated Energy		$      164.3		$     151.8		$     413.6		$     351.4
Unregulated Energy		45.2		47.9		158.9		154.6
Other Businesses and Eliminations		(7.6)		(6.9)		(17.5)		(14.5)
Total Operating Revenues		201.9		192.8		555.0		491.5
Operating Expenses
Regulated natural gas and electricity costs		39.6		34.1		141.2		105.6
Unregulated propane and natural gas costs		12.1		15.9		57.4		60.7
Operations		57.7		54.9		125.0		112.9
Maintenance		7.0		6.0		15.0		11.4
Depreciation and amortization		22.9		21.9		44.4		44.4
Other taxes		9.7		9.2		19.7		18.6
FCG transaction and transition-related expenses		—		0.5		—		0.8
Total Operating Expenses		149.0		142.5		402.7		354.4
Operating Income		52.9		50.3		152.3		137.1
Other income, net		0.5		0.4		0.5		1.0
Interest charges		18.4		17.8		37.1		35.9
Income Before Income Taxes		35.0		32.9		115.7		102.2
Income taxes		9.6		9.0		31.0		27.4
Net Income		$       25.4		$       23.9		$       84.7		$       74.8
Weighted Average Common Shares Outstanding:
Basic		24,056		23,307		23,997		23,133
Diluted		24,174		23,402		24,115		23,223
Earnings Per Share of Common Stock:
Basic		$       1.06		$       1.03		$       3.53		$       3.23
Diluted		$       1.05		$       1.02		$       3.51		$       3.22
Adjusted Net Income and Adjusted Earnings Per Share
Net Income (GAAP)		$       25.4		$       23.9		$       84.7		$       74.8
FCG transaction and transition-related expenses, net (1)		—		0.4		—		0.6
Adjusted Net Income (Non-GAAP)**		$       25.4		$       24.3		$       84.7		$       75.4
Earnings Per Share - Diluted (GAAP)		$       1.05		$       1.02		$       3.51		$       3.22
FCG transaction and transition-related expenses, net (1)		—		0.02		—		0.03
Adjusted Earnings Per Share - Diluted (Non-GAAP)**		$       1.05		$       1.04		$       3.51		$       3.25

(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.

 

Chesapeake Utilities Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited)
Assets		June 30, 2026		December 31, 2025
(in millions, except shares and per share data)
Property, Plant and Equipment
Regulated Energy		$         3,076.1		$         2,941.6
Unregulated Energy		514.3		492.4
Other Businesses and Eliminations		43.0		38.3
Total property, plant and equipment		3,633.4		3,472.3
Less: Accumulated depreciation and amortization		(657.5)		(637.6)
Plus: Construction work in progress		376.6		283.7
Net property, plant and equipment		3,352.5		3,118.4
Current Assets
Cash and cash equivalents		0.4		1.8
Trade and other receivables		100.2		106.9
Less: Allowance for credit losses		(7.9)		(5.4)
Trade and other receivables, net		92.3		101.5
Accrued revenue		30.5		50.1
Propane inventory, at average cost		6.6		8.8
Other inventory, at average cost		17.1		17.9
Regulatory assets		19.6		29.7
Storage gas prepayments		2.9		4.5
Prepaid expenses		15.5		19.7
Derivative assets, at fair value		0.2		—
Other current assets		2.9		3.0
Total current assets		188.0		237.0
Deferred Charges and Other Assets
Goodwill		507.5		507.5
Other intangible assets, net		12.5		13.2
Investments, at fair value		18.7		17.2
Derivative assets, at fair value		0.1		—
Operating lease right-of-use assets		8.9		9.9
Regulatory assets		72.9		74.3
Receivables and other deferred charges		12.7		17.3
Total deferred charges and other assets		633.3		639.4
Total Assets		$         4,173.8		$         3,994.8

 

Chesapeake Utilities Corporation and Subsidiaries  Condensed Consolidated Balance Sheets (Unaudited)
Capitalization and Liabilities		June 30, 2026		December 31, 2025
(in millions, except shares and per share data)
Capitalization
Stockholders' equity
Preferred stock, par value $0.01 per share (authorized 2,000,000 shares), no shares issued and outstanding		$              —		$               —
Common stock, par value $0.4867 per share (authorized 75,000,000 shares)		11.7		11.6
Additional paid-in capital		986.7		962.8
Retained earnings		676.7		626.8
Accumulated other comprehensive loss		(1.7)		(2.7)
Deferred compensation obligation		17.5		12.6
Treasury stock		(17.5)		(12.6)
Total stockholders' equity		1,673.4		1,598.5
Long-term debt, net of current maturities		1,317.9		1,327.1
Total capitalization		2,991.3		2,925.6
Current Liabilities
Current portion of long-term debt		131.7		134.6
Short-term borrowing		238.1		158.0
Accounts payable		93.6		115.2
Customer deposits and refunds		50.2		45.1
Accrued interest		8.8		8.7
Dividends payable		17.7		16.4
Accrued compensation		13.0		21.6
Regulatory liabilities		16.3		14.5
Derivative liabilities, at fair value		0.3		0.8
Other accrued liabilities		25.0		15.0
Total current liabilities		594.7		529.9
Deferred Credits and Other Liabilities
Deferred income taxes		346.6		313.3
Regulatory liabilities		203.3		188.1
Environmental liabilities		3.2		2.9
Other pension and benefit costs		15.2		14.0
Derivative liabilities, at fair value		0.1		0.6
Operating lease - liabilities		7.0		7.9
Deferred investment tax credits and other liabilities		12.4		12.5
Total deferred credits and other liabilities		587.8		539.3
Environmental and other commitments and contingencies (1)
Total Capitalization and Liabilities		$         4,173.8		$         3,994.8

(1) Refer to Note 6 and 7 in the Company's Quarterly Report on Form 10-Q for further information.

Adjusted Gross Margin

		Three Months Ended June 30, 2026
(in millions)		Regulated Energy		Unregulated Energy		Other Businesses and Eliminations		Total
Operating Revenues		$               164.3		$                 45.2		$                 (7.6)		$               201.9
Cost of Sales:
Natural gas, propane and electric costs		(39.6)		(19.8)		7.7		(51.7)
Depreciation & amortization		(17.3)		(5.6)		—		(22.9)
Operations & maintenance expenses (1)		(15.5)		(10.4)		—		(25.9)
Gross Margin (GAAP)		91.9		9.4		0.1		101.4
Operations & maintenance expenses (1)		15.5		10.4		—		25.9
Depreciation & amortization		17.3		5.6		—		22.9
Adjusted Gross Margin (Non- GAAP)		$               124.7		$                 25.4		$                  0.1		$               150.2

 

		Three Months Ended June 30, 2025
(in millions)		Regulated Energy		Unregulated Energy		Other Businesses and Eliminations		Total
Operating Revenues		$               151.8		$                 47.9		$                 (6.9)		$               192.8
Cost of Sales:
Natural gas, propane and electric costs		(34.1)		(22.9)		7.0		(50.0)
Depreciation & amortization		(16.8)		(5.1)		—		(21.9)
Operations & maintenance expenses (1)		(14.6)		(9.8)		0.4		(24.0)
Gross Margin (GAAP)		86.3		10.1		0.5		96.9
Operations & maintenance expenses (1)		14.6		9.8		(0.4)		24.0
Depreciation & amortization		16.8		5.1		—		21.9
Adjusted Gross Margin (Non- GAAP)		$               117.7		$                 25.0		$                  0.1		$               142.8

 

		For the Six Months Ended June 30, 2026
(in millions)		Regulated Energy		Unregulated Energy		Other Businesses and Eliminations		Total
Operating Revenues		$               413.6		$               158.9		$                (17.5)		$               555.0
Cost of Sales:
Natural gas, propane and electric costs		(141.2)		(74.9)		17.5		(198.6)
Depreciation & amortization		(33.4)		(11.0)		—		(44.4)
Operations & maintenance expenses (1)		(32.2)		(21.3)		0.1		(53.4)
Gross Margin (GAAP)		206.8		51.7		0.1		258.6
Operations & maintenance expenses (1)		32.2		21.3		(0.1)		53.4
Depreciation & amortization		33.4		11.0		—		44.4
Adjusted Gross Margin (Non- GAAP)		$               272.4		$                 84.0		$                   —		$               356.4

 

		For the Six Months Ended June 30, 2025
(in millions)		Regulated Energy		Unregulated Energy		Other Businesses and Eliminations		Total
Operating Revenues		$               351.4		$               154.6		$                (14.5)		$               491.5
Cost of Sales:
Natural gas, propane and electric costs		(105.6)		(75.1)		14.4		(166.3)
Depreciation & amortization		(34.4)		(10.0)		—		(44.4)
Operations & maintenance expenses (1)		(27.9)		(19.5)		0.7		(46.7)
Gross Margin (GAAP)		183.5		50.0		0.6		234.1
Operations & maintenance expenses (1)		27.9		19.5		(0.7)		46.7
Depreciation & amortization		34.4		10.0		—		44.4
Adjusted Gross Margin (Non- GAAP)		$               245.8		$                 79.5		$                 (0.1)		$               325.2

(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 GAAP.

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 2025 Annual Report on Form 10-K and as may be identified in subsequent Reports on Form 10-Q for further information on the risks and uncertainties related to the Company's forward-looking statements.

Conference Call

Chesapeake Utilities (NYSE: CPK) will host a conference call on Friday, August 7, 2026, at 8:30 a.m. Eastern Time to discuss the Company's financial results for the three and six months ended June 30, 2026. To listen to the Company's conference call via live webcast, please visit the Events & Presentations section of the Investors page on www.chpk.com. For investors and analysts that wish to participate by phone for the question and answer portion of the call, please use the following dial-in information:

Toll-free: 800.245.3047
International: 203.518.9765
Conference ID: CPKQ226

A replay of the presentation will be made available on the previously noted website following the conclusion of the call.

About Chesapeake Utilities Corporation 

Chesapeake Utilities Corporation is a diversified energy delivery company, listed on the New York Stock Exchange. Chesapeake Utilities Corporation offers sustainable energy solutions through its natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, mobile compressed natural gas utility services and solutions, and other businesses.

For more information, contact:

Lucia M. Dempsey
Head of Investor Relations
347.804.9067

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SOURCE Chesapeake Utilities Corporation

FAQ

What were Chesapeake Utilities (NYSE: CPK) Q2 2026 earnings and EPS?

Chesapeake Utilities reported Q2 2026 net income of $25.4 million and diluted EPS of $1.05. According to Chesapeake Utilities, this compares with $23.9 million and $1.02 in Q2 2025, reflecting modest year-over-year earnings and per-share growth.

How did Chesapeake Utilities’ Adjusted EPS perform year to date through June 30, 2026 (CPK)?

Year to date, Chesapeake Utilities’ diluted and adjusted EPS were both $3.51, with Adjusted EPS growing 8.0%. According to Chesapeake Utilities, this growth excludes transaction and transition-related expenses tied to the Florida City Gas acquisition and integration.

What is the Florida Energy Pathway (FEP) project announced by Chesapeake Utilities (CPK)?

The Florida Energy Pathway is a $1.2 billion natural gas pipeline project in south Florida with about 250,000 Dts/d of committed capacity. According to Chesapeake Utilities, the targeted in-service date for FEP is 2030, and discussions with potential partners are ongoing.

How has Chesapeake Utilities updated its 2026 capital expenditure guidance (CPK)?

Chesapeake Utilities raised its 2026 capital expenditure guidance by $100 million to a range of $550–$600 million. According to Chesapeake Utilities, the increase is driven mainly by higher transmission spending, including initial FEP investments, plus additional distribution and infrastructure projects.

What long-term capital investment and EPS guidance does Chesapeake Utilities provide through 2028?

Chesapeake Utilities now expects capital investment exceeding $2.2 billion over 2024–2028 and reaffirms 2028 EPS guidance of $7.75–$8.00. According to Chesapeake Utilities, prior long-term capital guidance for 2024–2028 was $1.5–$1.8 billion.

What changes did Chesapeake Utilities make to its revolving credit facility in 2026?

Chesapeake Utilities increased the capacity of its revolving credit facility to $650 million to support capital investment growth. According to Chesapeake Utilities, this expanded facility is intended to provide additional liquidity for its growing pipeline, infrastructure and regulatory-driven investment programs.

What interim rate relief did Chesapeake Utilities receive in the Florida City Gas rate case?

The Florida PSC approved $16.2 million of interim rates on an annualized basis, effective July 2026, in the ongoing Florida City Gas rate case. According to Chesapeake Utilities, these interim rates provide additional revenue while the permanent rate case remains under review.