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• A regional Dominion Energy for natural gas and propane.
• Like Con Edison, but providing natural gas and propane services across parts of the Mid-Atlantic and Southeast.
• A smaller, regional Southern Company focused on natural gas and propane.

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• Natural Gas Distribution: Providing natural gas service to residential, commercial, and industrial customers in its service territories.
• Propane Distribution: Delivering propane and related services to customers primarily in areas not served by natural gas pipelines.
• Regulated Transmission: Operating natural gas transmission pipelines that transport natural gas for various customers under regulated rates.
• Clean Energy: Developing and operating projects focused on renewable natural gas (RNG) and other sustainable energy solutions.

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Chesapeake Utilities (CPK) Major Customers

Chesapeake Utilities (CPK) is a diversified energy company engaged in natural gas distribution and transmission, electricity distribution, and propane distribution and related services. Due to the nature of its utility operations, CPK serves a broad base of customers, and no single corporate entity or a small group of companies typically constitutes a "major customer" representing a significant portion of its revenue, as might be the case in other B2B industries. Instead, the company primarily sells to a variety of end-users, including individuals and businesses, falling into the following major categories:

• Residential Customers: This category includes individual homeowners and tenants who utilize natural gas, electricity, and propane for heating, cooking, water heating, and other household energy needs.
• Commercial Customers: This segment comprises a wide range of businesses, such as retail stores, restaurants, office buildings, hotels, and other non-industrial enterprises, that rely on natural gas, electricity, and propane for their operational energy requirements.
• Industrial and Agricultural Customers: This category encompasses larger energy users, including manufacturing plants, processing facilities (industrial), and farms (agricultural) that utilize significant volumes of natural gas and propane for their specialized processes and equipment.

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• Williams Companies, Inc. (WMB) - Major supplier of natural gas transportation/delivery through its Transcontinental Gas Pipe Line Company, LLC (Transco) subsidiary, which serves as a primary interconnection for Chesapeake Utilities' natural gas supply on the Delmarva Peninsula.

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Jeffry M. Householder, Chair of the Board, CEO and President

Mr. Householder was appointed President and Chief Executive Officer of Chesapeake Utilities Corporation effective January 1, 2019, and Chair of the Board effective May 3, 2023. He has over 40 years of experience in the energy industry. Prior to joining Chesapeake Utilities in 2010 as President of its Florida business unit, he held leadership positions with TECO Energy Peoples Gas, West Florida Gas Company, Florida City Gas, and Tallahassee Utilities. Before starting his consulting business, he served in officer-level positions with TECO Peoples Gas, West Florida Natural Gas, and NUI City Gas. In 2023, under his leadership, Chesapeake Utilities Corporation completed the acquisition of Florida City Gas.

Beth W. Cooper, Executive Vice President, Chief Financial Officer, Treasurer and Assistant Corporate Secretary

Ms. Cooper was appointed Executive Vice President in 2019 and has served as Chief Financial Officer since September 2008. She also holds the titles of Treasurer since 2022 and Assistant Corporate Secretary since 2015. Ms. Cooper joined Chesapeake Utilities in 1990 and has held various roles including Senior Vice President, Vice President, Treasurer, Corporate Secretary, Assistant Treasurer, Director of Internal Audit, and Director of Strategic Planning. She oversees general accounting, procurement, income taxes, financial reporting, treasury, investor relations, financial planning and analysis, and strategic modeling and analysis. Ms. Cooper was previously an auditor with Ernst & Young's Entrepreneurial Services Group.

James F. Moriarty, Executive Vice President, General Counsel, Corporate Secretary and Chief Policy and Risk Officer

Mr. Moriarty is the Executive Vice President, General Counsel, Corporate Secretary, and Chief Policy and Risk Officer. He oversees the Company's legal affairs by managing the internal legal function and outside counsel.

Cheryl M. Martin, Senior Vice President, Regulatory and External Affairs

Ms. Martin serves as the Senior Vice President, Regulatory and External Affairs.

Jeffrey S. Sylvester, Senior Vice President, Pipeline Transmission and Regulated Gas and Electric Distribution

Mr. Sylvester holds the title of Senior Vice President, Pipeline Transmission and Regulated Gas and Electric Distribution. He is also listed as Senior Vice President & Chief Operating Officer.

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The key risks to Chesapeake Utilities (CPK) primarily revolve around the inherent volatilities and regulatory complexities of the energy sector.

1. Commodity Price Volatility: Chesapeake Utilities' financial stability and earnings are significantly impacted by the fluctuating prices of natural gas and propane. Market fluctuations, driven by global supply and demand, geopolitical events, and regulatory shifts, can lead to unpredictable revenues and affect operating costs and competitive positioning.
2. Regulatory and Legislative Changes: As a highly regulated energy delivery company, CPK is susceptible to state and federal legislative and regulatory initiatives. Changes can affect cost recovery, impact rate structures, influence the speed and degree of competition in the electric and natural gas industries, and potentially increase operating costs or necessitate capital investment in cleaner energy technologies.
3. Capital-Intensive Operations and Investment Returns: Chesapeake Utilities' operations require continuous, substantial investments in infrastructure, technology, and maintenance. There is a risk that new and expanded infrastructure projects may not achieve anticipated investment returns, which could materially affect the company's business, financial condition, and results of operations. Ongoing capital expenditures can also strain financial resources and impact the ability to pursue new growth without incurring additional debt.

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The accelerating trend towards decarbonization and electrification of buildings, driven by increasingly stringent government policies (such as bans on natural gas hookups in new construction and incentives for electric alternatives) and advancements in electric heating technologies (like highly efficient heat pumps). This directly threatens the long-term demand for natural gas and propane, which constitute the core business segments of Chesapeake Utilities, potentially leading to declining customer growth and asset stranding.

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Chesapeake Utilities (CPK) operates primarily in the regulated energy sector, providing natural gas and electric distribution services, and in the unregulated energy sector, focusing on propane distribution and other energy services. The addressable markets for its main products and services are largely defined by its authorized service territories and customer base in the Eastern United States.

Here's an overview of the addressable markets for Chesapeake Utilities' main products and services:

• Natural Gas Distribution and Transmission: Chesapeake Utilities distributes natural gas to residential, commercial, and industrial customers across Delaware, Maryland, and Florida. The company also has natural gas transmission operations on the Delmarva Peninsula (Delaware, Maryland, Pennsylvania), in Florida, and in Ohio.
  • In Delaware and Maryland, Chesapeake Utilities serves over 110,000 residential, commercial, and industrial natural gas customers. Specifically in Delaware, it serves approximately 77,000 natural gas customers.
  • In Florida, through Florida Public Utilities, it distributes natural gas to tens of thousands of residential and commercial customers.
  • In Ohio, Aspire Energy operates more than 2,600 miles of pipeline systems across 40 counties.
  • The Eastern Shore Natural Gas Company, a subsidiary, operates a 500-mile interstate pipeline system that transports natural gas to customers in Delaware, Maryland, and Pennsylvania.
• Propane Distribution: The company's propane subsidiary, Sharp Energy, distributes propane in Delaware, eastern Pennsylvania, Maryland, Virginia, Florida, North Carolina, and South Carolina.
  • Sharp Energy serves approximately 85,700 customers across seven states with nearly nine million gallons of propane storage capacity.
  • An acquisition expanded Sharp Energy's footprint into North and South Carolina, adding approximately 19,000 new customers and an annual propane distribution potential of 10 million gallons.
• Electric Distribution: Chesapeake Utilities provides electric distribution services in specific areas of Florida through Florida Public Utilities.
  • Florida Public Utilities distributes electricity to 31,000 customers across Florida.

Due to the regulated nature of utility markets where service territories and customer counts within those territories are the primary indicators of market size rather than broad dollar values for the entire region's energy consumption, precise dollar figures for the "addressable market" are not readily available in the typical sense of a competitive product market. Instead, the market is defined by the number of customers and the geographic scope of their utility franchises.

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Here are 3-5 expected drivers of future revenue growth for Chesapeake Utilities (CPK) over the next 2-3 years:

1. Customer Growth and Organic Expansion: Chesapeake Utilities anticipates continued revenue growth driven by sustained customer expansion in its key service areas, particularly in Delmarva and Florida. This organic growth is a consistent theme in their outlook.
2. Infrastructure Programs and Capital Investments: The company is heavily investing in infrastructure programs and pipeline expansion projects, which are expected to contribute significantly to future margin and revenue growth. Chesapeake Utilities has a substantial capital expenditure plan, with identified projects supporting this growth.
3. Favorable Regulatory Initiatives and Rate Case Outcomes: Successful conclusions of rate cases are a direct driver of increased margins and, consequently, revenue. The company has recently concluded several rate cases, with their positive impact expected to continue into 2026.
4. Growth in Unregulated Businesses and Energy Services: Chesapeake Utilities' unregulated businesses, including the expansion of virtual pipeline services such as Marlin Virtual Pipeline, and increased offerings in compressed natural gas (CNG), renewable natural gas (RNG), and liquified natural gas (LNG) services, are projected to contribute to revenue growth.
5. Integration and Optimization of Florida City Gas (FCG) Acquisition: While the acquisition of Florida City Gas occurred in late 2023, its ongoing integration is expected to unlock further growth opportunities in both regulated and unregulated segments within that service area. A successful outcome of the Florida City Gas depreciation study is also a factor influencing earnings.

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Share Repurchases

Share Issuance

Outbound Investments

Capital Expenditures