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It's like a regional electric and natural gas utility, similar to Eversource Energy, that also operates a significant propane delivery and specialized gas transport business.

Imagine a company that combines the operations of a local gas and electric utility, such as National Grid, with a major national propane distributor like Suburban Propane.

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• Natural Gas Distribution: Delivering natural gas to homes and businesses in specific regulated regions.
• Natural Gas Transmission: Transporting natural gas through pipeline networks, both regulated and unregulated.
• Electric Distribution: Providing regulated electricity distribution services to customers in parts of Florida.
• Propane Distribution: Supplying propane to residential, commercial, and industrial customers across several states.
• Power Generation: Generating electricity and steam for various uses.
• Natural Gas Transportation Solutions: Offering specialized transportation and pipeline solutions for compressed natural gas (CNG), liquefied natural gas (LNG), and renewable natural gas (RNG).
• HVAC, Plumbing, and Electrical Services: Providing installation, maintenance, and repair services for heating, ventilation, air conditioning, plumbing, and electrical systems.
• Energy-Related Merchandise Sales: Selling various products and merchandise related to energy use.

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Chesapeake Utilities Corporation (CPK) primarily serves a diverse base of end-use customers rather than a few major corporate clients. As an energy delivery company involved in natural gas and electric distribution, and propane operations, its main customer categories are:

1. Residential Customers: Households and individuals who rely on CPK for natural gas to heat their homes, cook, and power appliances, as well as electricity and propane for various household needs.
2. Commercial Customers: A wide range of businesses, including retail establishments, offices, restaurants, hotels, schools, and hospitals, that utilize natural gas, electricity, and propane for heating, cooling, lighting, and operational purposes.
3. Industrial Customers: Large manufacturing facilities, industrial parks, and other major enterprises that require substantial volumes of natural gas and electricity for their production processes, machinery, and overall operations.

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Jeffry M. Householder, President & Chief Executive Officer

Mr. Householder was appointed President and Chief Executive Officer of Chesapeake Utilities Corporation on January 1, 2019, and assumed the role of Chair of the Board on May 3, 2023. He brings over 40 years of experience in the energy industry. Prior to his current role, he served as President of Florida Public Utilities Company, a Chesapeake Utilities business unit, from 2010 to 2018. His career includes leadership positions at other energy companies such as TECO Energy Peoples Gas, West Florida Gas Company, Florida City Gas, and Tallahassee Utilities. Under his leadership, Chesapeake Utilities successfully acquired Florida City Gas in 2023, significantly expanding the company's natural gas infrastructure and customer base in Florida.

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

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

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

Mr. Moriarty was promoted to Executive Vice President in 2019. He joined Chesapeake Utilities Corporation in March 2008 as a Regulatory Analyst for the company's Delaware and Maryland Natural Gas Divisions. He provides legal counsel to the entire Chesapeake team, including the Board of Directors and senior leaders, and is responsible for leading the integration and oversight of the Regulatory and Governmental Affairs function across the company.

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

Mr. Sylvester also serves as Chief Operating Officer for Chesapeake Utilities Corporation. He is responsible for the company's pipeline transmission and regulated gas and electric distribution operations.

Kevin J. Webber, Senior Vice President, Unregulated Energy Delivery and Business Development

Mr. Webber also holds the title of Chief Development Officer. He is responsible for the company's unregulated energy delivery and business development initiatives.

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Key Risks to Chesapeake Utilities (CPK)

1. Commodity Price Volatility: Chesapeake Utilities is significantly exposed to the price volatility of natural gas and propane. Fluctuations in these commodity prices, driven by global supply and demand dynamics, geopolitical events, and regulatory shifts, can lead to unpredictable revenues and impact the company's financial stability and earnings.
2. Regulatory, Environmental, and Operational Risks: As a company operating in a highly regulated industry, Chesapeake Utilities faces substantial regulatory risks. Changes in energy policies, increased regulatory scrutiny, and compliance costs can affect profitability and operational flexibility. Furthermore, the business is susceptible to environmental factors such as warmer weather, which can reduce demand for heating services. The company also confronts inherent operational risks, including potential major leaks, outages, mechanical failures, and accidents within its natural gas, electric, and propane distribution and transmission systems, which could lead to increased costs, safety concerns, and a loss of customer confidence.
3. Capital Intensity and Debt Reliance: Chesapeake Utilities' operations are capital-intensive, necessitating continuous and substantial investments in infrastructure, technology, and maintenance. This inherent characteristic often results in a significant reliance on debt financing. Disruptions in the credit and capital markets could potentially hinder the company's ability to access capital at competitive rates, thereby affecting its capacity to fund strategic initiatives and essential infrastructure projects.

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• Increased adoption of distributed renewable energy sources (e.g., rooftop solar) and battery storage, which allows customers to generate and store their own electricity, thereby reducing demand for grid-supplied power and potentially eroding the customer base and revenue of traditional electric distribution utilities.
• Growing policy and societal pressure towards decarbonization and electrification, including potential bans on new natural gas hookups, incentives for electric heating and cooking, and mandates to phase out fossil fuels, which threatens the long-term demand for natural gas distribution and propane operations.

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Chesapeake Utilities (CPK) operates in various energy markets across the eastern United States. The addressable market sizes for its main products and services, where quantifiable, are as follows:

Regulated Energy Segment

• Natural Gas Distribution:
  • Delaware: The value of natural gas delivered to residential customers for end-use consumption in Delaware is approximately half a billion dollars annually.
  • Maryland: The Natural Gas Distribution industry in Maryland has a market size of $2.5 billion in 2026.
  • Florida: The value of natural gas delivered to consumers in Florida was $6.15 billion in 2015.
• Regulated Natural Gas Transmission (Delmarva Peninsula and Florida): Null
• Regulated Electric Distribution (Northeast and Northwest Florida): Null

Unregulated Energy Segment

• Propane Operations:
  • North Carolina: The market size of the Fuel Dealers industry, which includes propane, in North Carolina is $1.8 billion in 2026.
  • South Carolina: The market size of the Fuel Dealers industry, which includes propane, in South Carolina is $484.6 million in 2026.
  • Florida: The market size of the Fuel Dealers industry, which includes propane, in Florida is $944.2 million in 2026.
  • United States: The U.S. propane market is estimated to reach USD 47.1 billion in 2026.
• Unregulated Natural Gas Transmission/Supply (Central and Eastern Ohio): Null
• Generation of Electricity and Steam: Null
• Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), and Renewable Natural Gas (RNG) Transportation and Pipeline Solutions:
  • United States (CNG Market): The U.S. compressed natural gas (CNG) market is expected to reach USD 24,857.7 million by 2030.
  • North America (RNG Market): The renewable natural gas (RNG) market in North America reached US$ 14.0 billion in 2024.

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Chesapeake Utilities (CPK) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Significant Capital Investments and Infrastructure Development: The company plans substantial capital expenditures, with reaffirmed 2024–2028 capex guidance of $1.5 billion to $1.8 billion and 2026 capex guidance of $450 million to $500 million. These investments are directed towards pipeline expansions, infrastructure programs, and technology upgrades across its regulated and unregulated segments, enhancing service reliability and meeting growing demand.
2. Organic Customer Growth in Key Service Areas: Chesapeake Utilities anticipates continued "above-average" or "strong" residential customer growth, particularly in its Delmarva Peninsula and Florida service areas. This increase in customer base is a primary driver for its capital programs and directly contributes to incremental gross margin.
3. Regulatory Initiatives and Favorable Rate Case Outcomes: Revenue growth is expected to be supported by ongoing regulatory initiatives and the successful completion of rate cases, which have historically driven adjusted gross margin increases across its Delaware, Maryland, and Florida operations.
4. Expansion of Unregulated Energy Segment, including Alternative Fuels and Renewable Natural Gas (RNG): The Unregulated Energy segment, encompassing propane operations, mobile compressed natural gas (CNG), liquefied natural gas (LNG), and renewable natural gas (RNG) transportation, is a key growth area. Specifically, growth in services like Marlin Gas Services and investments in RNG production facilities and biogas projects are expected to contribute significantly to future revenue.
5. Strategic Expansion and Acquisitions: The acquisition of Florida City Gas in late 2023 continues to be a factor in driving growth, particularly in Florida. Additionally, the company is pursuing new expansion projects, such as the natural gas pipeline expansion to Virginia's Eastern Shore, which will extend infrastructure and open new markets.

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Share Repurchases

• Chesapeake Utilities (CPK) reported $0.00 in share buybacks as of February 2026.

Share Issuance

• In November 2023, Chesapeake Utilities raised $366.4 million through an overnight offering of 4.4 million shares to finance the acquisition of Florida City Gas.
• The company issued $132.3 million in equity during 2025, comprising 996,848 shares, to support its capital expenditure program and return to its target equity capitalization.
• Chesapeake Utilities maintains an At-the-Market (ATM) program, authorized to issue up to $100 million in common stock through November 2027.

Outbound Investments

• In late 2023, Chesapeake Utilities acquired Florida City Gas (FCG) from NextEra Energy, Inc. for $923 million in cash.
• The acquisition of FCG significantly expanded Chesapeake Utilities' natural gas business in Florida, and was expected to increase its regulated utility customers by 50% and net plant by 30%.

Capital Expenditures

• Chesapeake Utilities invested a record $470.4 million in capital projects during 2025, exceeding its guidance and representing a 32% increase over its 2024 capital spend.
• The company has reaffirmed its five-year capital expenditure guidance for 2024-2028, projecting total spending between $1.5 billion and $1.8 billion, with approximately $1.6 billion in identified projects.
• Projected capital expenditures for 2026 are between $450 million and $500 million, focusing on regulated distribution, transmission, infrastructure, and a multi-year Enterprise Resource Planning (ERP) technology transformation project ("1CORE").