Chesapeake Utilities Corporation

Chesapeake reported second-quarter adjusted gross margin of approximately $150 million, up 5% year over year, adjusted net income of approximately $25 million, up 5%, and adjusted EPS of $1.05, up 1%. For the first half of 2026, management said adjusted earnings per share increased 8%, and second-quarter capital investment was $140 million with year-to-date investment of $262 million. Full-year 2026 capital guidance was raised to $550 million to $600 million from prior expectations, and the transmission projects already in the plan are forecast to contribute approximately $33 million of gross margin in 2026 and an additional $51 million in 2027. The company reaffirmed 2028 EPS guidance of $7.75 to $8 and said it will provide 2027 through 2031 capital expenditure guidance and earnings growth rate in February 2027.

Jeff Householder emphasized that the company’s growth trajectory is continuing, supported by strong demand in its service territories and by new investment opportunities. He highlighted the Florida Energy Pathway as a strategic, long-duration regulated growth project tied to South Florida gas demand, and said the company is advancing a number of other opportunities in Delmarva, Virginia and Port Canaveral. His tone was confident and constructive, with repeated references to long-term growth, resilience and service reliability.

Jeff Sylvester said adjusted gross margin was approximately $150 million, adjusted net income approximately $25 million, and adjusted EPS $1.05, with the EPS increase held back by higher depreciation, amortization and property taxes, higher facility and insurance costs, and financing activity. He noted regulated gross margin of approximately $125 million, up 6%, and unregulated Energy segment gross margin of approximately $25 million, up 2%. On the balance sheet, he said equity capitalization remained at 50%, 70% of total debt capacity of $798 million was available at June 30, and the revolver was amended to increase total borrowing capacity to $650 million. He also pointed to a 7.3% annual dividend increase and a next dividend payment of $0.74 per share, consistent with a 45% to 50% payout target.

Analysts focused on the Florida Energy Pathway’s permitting, commercial support, partnership structure and how it will affect the longer-term earnings update. Management said the project is an intrastate pipeline under Florida PSC jurisdiction, permitting is about to begin in earnest, and the line has meaningful shipper commitments; they expect to share more about the partnership and financing structure soon. Questions also covered the Florida City Gas rate case, where management said they may or may not reach settlement and are prepared to litigate, plus customer-growth trends, where management acknowledged some slowing versus peak levels but said growth remains healthy in their territories.