DOVER, Del., May 6, 2020
/PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK)
("Chesapeake Utilities" or the "Company") today announced its first
quarter financial results. The Company's net income for the quarter
ended March 31, 2020 was $28.9 million, compared to $28.7 million for the same quarter of 2019.
Earnings per share for the quarter ended March 31, 2020 increased $0.02 to $1.76 per
share, compared to the same quarter of 2019.
Earnings for the first quarter reflect increased gross margin
from recently completed and ongoing pipeline expansion projects,
incremental margins from the acquisition of certain assets of
Boulden Inc. ("Boulden"), organic growth in the natural gas
distribution operations and higher retail propane margins.
Weather during the first quarter, was 20 and 17 percent warmer than
the first quarter of 2019 on the Delmarva Peninsula and in
Ohio, respectively, which was a
significant driver of lower consumption and reduced net income by
$3.1 million, or $0.19 per share. The weather impact was
essentially offset by gains from two property sales totaling
$2.3 million on an after tax
basis. The property sales related to operations which have
been consolidated into the Company's state-of-the-art Energy Lane
campus and through the completion of the conversion of the piped
propane system in Ocean City, Maryland to natural gas service. Also
absent from the Company's first quarter results was regulatory
relief associated with Hurricane Michael. The Company filed a
limited proceeding with the Florida Public Service Commission
("PSC") in August 2019 and continues
to engage in discussions with the Florida PSC staff and the Office
of Public Counsel and expects a final ruling in the second half of
2020. Interim rates related to this limited proceeding were
implemented in January 2020 and have
been fully reserved pending final resolution with the Florida
PSC.
On March 13, 2020, the U.S.
Centers for Disease Control and Prevention ("CDC") declared a
national emergency due to the rapidly growing outbreak of a novel
strain of coronavirus ("COVID-19"). In response to this
declaration and the rapid spread of COVID-19 within the United States, federal, state and local
governments throughout the country have imposed varying degrees of
restrictions on social and commercial activity to promote social
distancing in an effort to slow the spread of the illness.
These restrictions have significantly impacted economic conditions
in the United States, and the
economic impact is expected to continue as long as the social
distancing restrictions remain in place. Chesapeake Utilities
is considered an "essential business," which allows the Company to
continue its operational activities and construction projects while
the social distancing restrictions remain in place. In response to
the COVID-19 pandemic and related restrictions, the Company
implemented its pandemic response plan, which includes having all
employees who can work remotely do so in order to promote social
distancing and providing personal protective equipment to field
employees to reduce the spread of COVID-19. For the first
quarter of 2020, the COVID-19 impact on the Company was immaterial,
as slightly lower gross margin was offset by lower operating
expenses. The Company is committed to communicating timely updates
and will continue to monitor developments affecting its employees,
its customers, its suppliers and shareholders and take additional
precautions as warranted to operate safely and to comply with the
CDC, state and local requirements in order to protect its
employees, customers and communities.
"I am pleased with the Company's strong performance during the
first quarter despite the many challenges that we faced.
Achieving increased performance quarter-over-quarter was a
significant accomplishment in the face of significantly warmer
temperatures, the absence of regulatory relief associated with
Hurricane Michael and the onset of the COVID-19 outbreak. Our
employees continue to generate increased performance for the
Company, while remaining committed to each other and our customers.
Our growth projects are moving forward even in the midst of
COVID-19 and we continue to target the higher EPS guidance through
2022 that we introduced in February
2020," stated Jeffry M.
Householder, President and Chief Executive Officer.
"While our commitment to generating increased shareholder
value through continued earnings growth remains at the forefront of
our decision making, equally as important during this unprecedented
time, have been the decisions and actions we have taken across our
special Company to maintain the safety and wellbeing of our
employees and their families, to ensure delivery of the essential
services our customers expect from us, and to provide financial
support in these challenging times to our local communities.
We have responded in this fashion not because it's the right thing
to do, but because we do this every day. It is part of 'our
special sauce'."
Capital Expenditures Forecast and Earnings Guidance
Update
In February 2020, the Company
reaffirmed its capital expenditures projection of $750 million - $1
billion of capital expenditures from 2018-2022.
Additionally, the Company updated its previous EPS guidance
increasing the forecasted range for 2022 to $4.70 to $4.90
given the investments already made, those underway and the growth
prospects included in the Company's strategic growth plan. The
Company expects its EPS should grow at an average annual rate of
7.75 percent to 9.50 percent. The Company has continued to review
its projections and is supportive of this guidance, after taking
into consideration its strategic plan, the impact of COVID-19 and
the anticipated regulatory relief and opportunities for continued
collaboration across the enterprise. The Company has
historically achieved an average earnings growth at or above this
range and therefore continues to view its long-term growth
prospects as comparable to its historical growth.
*Unless otherwise noted, EPS information is presented on a
diluted basis.
**This press release includes references to non-Generally
Accepted Accounting Principles ("GAAP") financial measures,
including gross margin. 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 "gross margin" by deducting the cost
of sales from operating revenue. Cost of sales includes the
purchased fuel cost for natural gas, electricity and propane, and
the cost of labor spent on direct revenue-producing activities and
excludes depreciation, amortization and accretion. Other companies
may calculate gross margin in a different manner. Gross margin
should not be considered an alternative to operating income or net
income, both of which are determined in accordance with GAAP.
The Company believes that gross margin, although a non-GAAP
measure, is useful and meaningful to investors as a basis for
making investment decisions. It provides investors with
information that demonstrates the profitability achieved by the
Company under its allowed rates for regulated operations and under
its competitive pricing structures for unregulated
businesses. The Company's management uses gross margin in
measuring its business units' performance.
Operating Results for the Quarters Ended March 31, 2020
and 2019
Consolidated Results
|
Three Months
Ended
March 31,
|
|
|
|
|
(in
thousands)
|
2020
|
|
2019
|
|
Change
|
|
Percent
Change
|
Gross
margin
|
$
|
99,841
|
|
|
$
|
99,537
|
|
|
$
|
304
|
|
|
0.3
|
%
|
Depreciation,
amortization and property taxes
|
17,009
|
|
|
15,357
|
|
|
1,652
|
|
|
10.8
|
%
|
Other operating
expenses
|
40,719
|
|
|
40,056
|
|
|
663
|
|
|
1.7
|
%
|
Operating
income
|
$
|
42,113
|
|
|
$
|
44,124
|
|
|
$
|
(2,011)
|
|
|
(4.6)
|
%
|
Operating income during the first quarter of 2020 decreased by
$2.0 million, or 4.6 percent,
compared to the same period in 2019. The decrease in
operating income was principally driven by warmer weather in the
first quarter of 2020 which reduced gross margin by $4.2 million compared to the prior year quarter.
This decrease was largely offset by higher earnings from the
Company's organic growth projects and contributions from the
December 2019 acquisition of certain
propane assets of Boulden.
Regulated Energy Segment
|
Three Months
Ended
March 31,
|
|
|
|
|
(in
thousands)
|
2020
|
|
2019
|
|
Change
|
|
Percent
Change
|
Gross
margin
|
$
|
68,123
|
|
|
$
|
67,102
|
|
|
$
|
1,021
|
|
|
1.5
|
%
|
Depreciation,
amortization and property taxes
|
13,758
|
|
|
12,531
|
|
|
1,227
|
|
|
9.8
|
%
|
Other operating
expenses
|
26,477
|
|
|
24,830
|
|
|
1,647
|
|
|
6.6
|
%
|
Operating
income
|
$
|
27,888
|
|
|
$
|
29,741
|
|
|
$
|
(1,853)
|
|
|
(6.2)
|
%
|
Operating income for the Regulated Energy segment for the first
quarter of 2020 was $27.9 million, a
decrease of $1.9 million or 6.2
percent over the same period in 2019. Higher gross margin
from organic growth in the Company's natural gas distribution
businesses and expansion projects completed by Peninsula Pipeline
Company, Inc. ("Peninsula Pipeline"), the Company's intrastate
transmission subsidiary, were partially offset by the absence of
tax savings recorded in the first quarter of 2019 (related to 2018)
and lower margin from decreased consumption of natural gas
attributable to warmer temperatures. Increased operating
expenses and depreciation, amortization and property taxes reflect
the higher level of capital invested in growth and expansion
projects, as well as increased non-health insurance premiums.
The key components of the increase in gross margin are shown
below:
(in
thousands)
|
|
Natural gas
distribution growth (excluding service expansions)
|
$
|
1,096
|
|
Peninsula Pipeline
service expansions
|
1,039
|
|
Tax savings (net of
Gas Reliability Infrastructure Program ("GRIP") refunds) recorded
in Q1 2019 for
2018 associated with lower federal tax rates for certain Florida
natural gas distribution operations
|
(910)
|
|
Decreased customer
consumption - primarily due to warmer weather
|
(521)
|
|
Other
variances
|
317
|
|
Quarter-over-quarter increase in gross
margin
|
$
|
1,021
|
|
The major components of the increase in other operating expenses
are as follows:
(in
thousands)
|
|
Insurance expense
(non-health) - both insured and self-insured
components
|
$
|
834
|
|
Outside services,
regulatory, and facilities maintenance costs
|
540
|
|
Payroll, benefits and
other employee-related expenses
|
200
|
|
Other
variances
|
73
|
|
Quarter-over-quarter increase in other operating
expenses
|
$
|
1,647
|
|
Unregulated Energy Segment
|
Three Months
Ended
March 31,
|
|
|
|
|
(in
thousands)
|
2020
|
|
2019
|
|
Change
|
|
Percent
Change
|
Gross
margin
|
$
|
31,803
|
|
|
$
|
32,542
|
|
|
$
|
(739)
|
|
|
(2.3)
|
%
|
Depreciation,
amortization and property taxes
|
3,240
|
|
|
2,792
|
|
|
448
|
|
|
16.0
|
%
|
Other operating
expenses
|
14,722
|
|
|
14,492
|
|
|
230
|
|
|
1.6
|
%
|
Operating
income
|
$
|
13,841
|
|
|
$
|
15,258
|
|
|
$
|
(1,417)
|
|
|
(9.3)
|
%
|
Operating income for the Unregulated Energy segment for the
first quarter of 2020 was $13.8
million, a 9.3 percent decrease over the same period in
2019. The decreased operating income reflects $3.7 million in lower gross margin primarily due
to the impact of warmer weather during the first quarter of 2020,
$0.4 million in higher depreciation,
amortization and property taxes and $0.2
million in higher operating expenses. These decreases
were partially offset by the incremental margin from the Boulden
assets and higher propane retail margins per gallon.
The major components of the decrease in gross margin are shown
below:
(in
thousands)
|
|
Margin
Impact
|
Propane
Operations
|
|
|
Decrease in customer
consumption - primarily due to warmer weather
|
|
$
|
(2,799)
|
|
Boulden acquisition
(assets acquired in December 2019)
|
|
1,888
|
|
Increased retail
propane margins per gallon driven by favorable market conditions
and
supply management
|
|
1,217
|
|
Aspire Energy of
Ohio, LLC ("Aspire Energy")
|
|
|
Decrease in customer
consumption - primarily due to warmer weather
|
|
(900)
|
|
Higher margins from
negotiated rate increases
|
|
388
|
|
Marlin Gas Services,
LLC ("Marlin Gas Services") - higher level of pipeline integrity
services
for existing customers in 2019
|
|
(982)
|
|
Other
variances
|
|
449
|
|
Quarter-over-quarter decrease in gross
margin
|
|
$
|
(739)
|
|
The major components of the increase in other operating expenses
are as follows:
(in
thousands)
|
|
Operating expenses
for Boulden (assets acquired in December 2019)
|
$
|
342
|
|
Insurance expense
(non-health) - both insured and self-insured
components
|
194
|
|
Payroll, benefits and
other employee-related expenses
|
(292)
|
|
Other
variances
|
(14)
|
|
Quarter-over-quarter increase in other operating
expenses
|
$
|
230
|
|
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 2019 Annual Report on Form 10-K and the Quarterly
Report on Form 10-Q for the first quarter of 2020 for further
information on the risks and uncertainties related to the Company's
forward-looking statements. In addition, to the risks and
uncertainties identified in the Company's 2019 Annual Report on
Form 10-K and Quarterly Report on Form 10-Q for the first quarter
of 2020, risks and uncertainties related to the COVID-19 pandemic
could cause actual future results to differ materially from those
expressed in any forward-looking statements, including, but not
limited to, the duration and scope of the COVID-19 pandemic and
impact on the demand for our services; our ability to obtain needed
materials and components from our suppliers; actions governments,
business, and individuals take in response to the pandemic,
including mandatory business closures and restrictions on onsite
commercial interactions; the impact of the pandemic and actions
taken in response to the pandemic on global and regional economies
and economic activity; the pace of recovery when the COVID-19
pandemic subsides; and general economic uncertainty in the United States' and global markets and a
worsening of economic conditions in the
United States or low levels of economic growth.
Conference Call
Chesapeake Utilities will host a conference call on Thursday,
May 7, 2020 at 4:30 p.m. Eastern
Time to discuss the Company's financial results for the
three months ended March 31, 2020. To participate in
this call, dial 855.801.6270 and reference Chesapeake Utilities'
2020 First Quarter Results Conference Call. To access the
replay recording of this call, the accompanying transcript, and
other pertinent quarterly information, use the link CPK -
Conference Call Audio Replay, or visit the Investors/Events
and Presentations section of Company's website at www.chpk.com.
About Chesapeake Utilities Corporation
Chesapeake Utilities is a diversified energy company engaged in
natural gas distribution and transmission; electricity generation
and distribution; propane gas distribution; and other businesses.
Information about Chesapeake Utilities and its family of businesses
is available at https://www.chpk.com or through its Investor
Relations (IR) App.
Please note that Chesapeake Utilities Corporation is not
affiliated with Chesapeake Energy, an oil and natural gas
exploration company headquartered in Oklahoma City, Oklahoma.
For more information, contact:
Beth W. Cooper
Executive Vice President, Chief Financial Officer and Assistant
Corporate Secretary
302.734.6799
Financial
Summary
(in thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2020
|
|
2019
|
Gross
Margin
|
|
|
|
Regulated
Energy segment
|
$
|
68,123
|
|
|
$
|
67,102
|
|
Unregulated
Energy segment
|
31,803
|
|
|
32,542
|
|
Other businesses and
eliminations
|
(85)
|
|
|
(107)
|
|
Total Gross
Margin
|
$
|
99,841
|
|
|
$
|
99,537
|
|
|
|
|
|
Operating
Income
|
|
|
|
Regulated Energy segment
|
$
|
27,888
|
|
|
$
|
29,741
|
|
Unregulated Energy segment
|
13,841
|
|
|
15,258
|
|
Other
businesses and eliminations
|
384
|
|
|
(875)
|
|
Total Operating
Income
|
42,113
|
|
|
44,124
|
|
Other income
(expense), net
|
3,318
|
|
|
(57)
|
|
Interest
Charges
|
5,814
|
|
|
5,628
|
|
Income from
Continuing Operations Before Income Taxes
|
39,617
|
|
|
38,439
|
|
Income Taxes on
Continuing Operations
|
10,591
|
|
|
9,625
|
|
Income from
Continuing Operations
|
29,026
|
|
|
28,814
|
|
Loss from
Discontinued Operations (1)
|
(96)
|
|
|
(150)
|
|
Net
Income
|
$
|
28,930
|
|
|
$
|
28,664
|
|
|
|
|
|
Basic Earnings Per
Share of Common Stock
|
|
|
|
Earnings from
Continuing Operations
|
$
|
1.77
|
|
|
$
|
1.76
|
|
Loss from Discontinued
Operations (1)
|
(0.01)
|
|
|
(0.01)
|
|
Basic Earnings Per
Share of Common Stock
|
$
|
1.76
|
|
|
$
|
1.75
|
|
|
|
|
|
Diluted Earnings
Per Share of Common Stock
|
|
|
|
Earnings from
Continuing Operations
|
$
|
1.77
|
|
|
$
|
1.75
|
|
Loss from Discontinued
Operations (1)
|
(0.01)
|
|
|
(0.01)
|
|
Diluted Earnings Per
Share of Common Stock
|
$
|
1.76
|
|
|
$
|
1.74
|
|
|
(1) During the fourth quarter of
2019, the Company completed the sale of assets and contracts of
Peninsula Energy Services Company ("PESCO") and exited the natural
gas marketing business. As a result, the Company began to report
PESCO as discontinued operations during the third quarter of 2019
and excluded its performance from continuing operations for all
periods presented.
|
Financial Summary
Highlights
|
|
Key variances in
continuing operations, between the three months ended March 31,
2019 and 2020, included:
|
|
(in thousands,
except per share data)
|
|
Pre-tax
Income
|
|
Net
Income
|
|
Earnings
Per Share
|
First Quarter of
2019 Reported Results from Continuing Operations
|
|
$
|
38,439
|
|
|
$
|
28,814
|
|
|
$
|
1.75
|
|
|
|
|
|
|
|
|
Adjusting for
Unusual Items and Discontinued Operations:
|
|
|
|
|
|
|
Decreased customer
consumption primarily due to warmer weather
|
|
(4,220)
|
|
|
(3,092)
|
|
|
(0.19)
|
|
Absence of Florida
tax savings (net of GRIP refunds) recorded in Q1 2019 for
2018
|
|
(910)
|
|
|
(667)
|
|
|
(0.04)
|
|
Gains from sales of
assets
|
|
3,162
|
|
|
2,317
|
|
|
0.14
|
|
|
|
(1,968)
|
|
|
(1,442)
|
|
|
(0.09)
|
|
|
|
|
|
|
|
|
Increased
(Decreased) Gross Margins:
|
|
|
|
|
|
|
Margin contribution
from Boulden acquisition (completed December 2019)*
|
|
1,888
|
|
|
1,383
|
|
|
0.08
|
|
Increased retail
propane margins per gallon
|
|
1,217
|
|
|
892
|
|
|
0.05
|
|
Natural gas
distribution growth (excluding service expansions)
|
|
1,096
|
|
|
803
|
|
|
0.05
|
|
Peninsula Pipeline
service expansions*
|
|
1,039
|
|
|
761
|
|
|
0.05
|
|
Higher Aspire Energy
margins from negotiated rate increases
|
|
388
|
|
|
284
|
|
|
0.02
|
|
Marlin Gas Services -
higher level of pipeline integrity services for existing
customers in 2019*
|
|
(982)
|
|
|
(720)
|
|
|
(0.04)
|
|
|
|
4,646
|
|
|
3,403
|
|
|
0.21
|
|
|
|
|
|
|
|
|
(Increased)
Decreased Operating Expenses (Excluding Cost of
Sales):
|
|
|
|
|
|
|
Depreciation,
amortization and property tax costs due to new capital
investments
|
|
(1,347)
|
|
|
(987)
|
|
|
(0.06)
|
|
Insurance expense
(non-health) - both insured and self-insured
|
|
(1,028)
|
|
|
(753)
|
|
|
(0.05)
|
|
Operating expenses
from Boulden acquisition (completed December 2019)
|
|
(535)
|
|
|
(392)
|
|
|
(0.02)
|
|
Facilities
maintenance costs and outside services
|
|
(462)
|
|
|
(338)
|
|
|
(0.02)
|
|
Payroll, Benefits and
other employee-related expenses
|
|
1,293
|
|
|
947
|
|
|
0.06
|
|
|
|
(2,079)
|
|
|
(1,523)
|
|
|
(0.09)
|
|
|
|
|
|
|
|
|
Interest
Charges
|
|
(186)
|
|
|
(136)
|
|
|
(0.01)
|
|
Other income tax
effects
|
|
—
|
|
|
(651)
|
|
|
(0.04)
|
|
Net other
changes
|
|
765
|
|
|
561
|
|
|
0.04
|
|
|
|
579
|
|
|
(226)
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
First Quarter of
2020 Reported Results from Continuing Operations
|
|
$
|
39,617
|
|
|
$
|
29,026
|
|
|
$
|
1.77
|
|
|
*See
the Major Projects and Initiatives table later in this press
release.
|
Recently
Completed and Ongoing Major Projects and Initiatives The
Company constantly pursues and develops additional projects and
initiatives to serve existing and new customers, and to further
grow its businesses and earnings, with the intention to increase
shareholder value. The following represent the major
projects/initiatives recently completed and currently
underway. Major projects/initiatives that have generated
consistent year-over-year margin contributions are removed from the
table. In the future, the Company will add new projects and
initiatives to this table once negotiations are substantially final
and the associated earnings can be estimated.
|
|
|
|
Gross Margin for
the Period
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Estimate
for
|
Project/Initiative
|
|
March
31,
|
|
December
31,
|
|
Fiscal
|
in
thousands
|
|
2020
|
|
2019
|
|
2019
|
|
2020
|
|
2021
|
Expansions:
|
|
|
|
|
|
|
|
|
|
|
Western Palm Beach
County, Florida Expansion - including
interim services
|
|
$
|
1,000
|
|
|
$
|
131
|
|
|
$
|
2,139
|
|
|
$
|
5,227
|
|
|
$
|
5,227
|
|
Del-Mar Energy
Pathway - including interim services
|
|
189
|
|
|
165
|
|
|
731
|
|
|
2,512
|
|
|
4,100
|
|
Auburndale
|
|
170
|
|
|
—
|
|
|
283
|
|
|
679
|
|
|
679
|
|
Callahan Intrastate
Pipeline
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,219
|
|
|
6,400
|
|
Guernsey Power
Station
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
700
|
|
Marlin Gas
Services
|
|
1,347
|
|
|
2,329
|
|
|
5,410
|
|
|
6,400
|
|
|
7,000
|
|
Total
Expansions
|
|
2,706
|
|
|
2,625
|
|
|
8,563
|
|
|
18,037
|
|
|
24,106
|
|
Acquisitions:
|
|
|
|
|
|
|
|
|
|
|
Boulden
Propane
|
|
1,888
|
|
|
—
|
|
|
329
|
|
|
3,800
|
|
|
4,200
|
|
Elkton Gas
Company
|
|
—
|
|
|
—
|
|
|
—
|
|
|
TBD
|
|
|
TBD
|
|
Total
Acquisitions
|
|
1,888
|
|
|
—
|
|
|
329
|
|
|
3,800
|
|
|
4,200
|
|
Regulatory
Initiatives
|
|
|
|
|
|
|
|
|
|
|
|
Florida GRIP
(1)
|
|
3,695
|
|
|
3,782
|
|
|
13,528
|
|
|
14,858
|
|
|
15,831
|
|
Hurricane Michael
regulatory proceeding
|
|
—
|
|
|
—
|
|
|
—
|
|
|
TBD
|
|
|
TBD
|
|
Total Regulatory
Initiatives
|
|
3,695
|
|
|
3,782
|
|
|
13,528
|
|
|
14,858
|
|
|
15,831
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
8,289
|
|
|
$
|
6,407
|
|
|
$
|
22,420
|
|
|
$
|
36,695
|
|
|
$
|
44,137
|
|
|
(1) In the first
quarter of 2020, the Company recorded a reduction in depreciation
expense totaling $0.3 million, as a result of a Florida PSC
approved depreciation study that lowered annual depreciation rates.
The Company also recorded $0.2 million in lower GRIP margin due to
a concurrent reduction in the surcharge collected from customers as
a result of the reduced depreciation rates during the first quarter
of 2020.
|
Detailed Discussion of Major Projects and
Initiatives
Expansions
Western Palm Beach County,
Florida Expansion
Peninsula Pipeline is
constructing four transmission lines to bring additional natural
gas to our distribution system in West
Palm Beach, Florida. The first phase of this project was
placed into service in December 2018
and generated incremental gross margin of $0.9 million, including interim services, for the
three months ended March 31, 2020
compared to 2019. The Company expects to complete the remainder of
the project in phases through the third quarter of 2020, and
estimates that the project will generate gross margin of
$5.2 million in 2020 and beyond.
Del-Mar Energy Pathway
In December 2019, the Federal Energy Regulatory
Commission issued an order approving the construction of the
Del-Mar Energy Pathway project. Eastern Shore anticipates that this
project will be fully in-service by the beginning of the fourth
quarter of 2021. The new facilities will: (i) ensure an
additional 14,300 Dekatherms per day ("Dts/d") of firm service to
four customers, (ii) provide additional natural gas transmission
pipeline infrastructure in eastern Sussex
County, Delaware, and (iii) represent the first extension of
Eastern Shore's pipeline system into Somerset County, Maryland. Construction
on the project began in January 2020,
and interim services in advance of this project generated
$0.2 million of gross margin for the
three months ended March 31, 2020.
The estimated annual gross margin from this project is
approximately $2.5 million in 2020,
$4.1 million in 2021 and $5.1 million annually thereafter.
Auburndale
In
August 2019, the Florida PSC approved
Peninsula Pipeline's Transportation Service Agreement with the
Florida Division of Chesapeake Utilities. Peninsula Pipeline
purchased an existing pipeline owned by the Florida Division of
Chesapeake Utilities and Calpine, and has completed the
construction of pipeline facilities in Polk County, Florida. Peninsula Pipeline
provides transportation service to the Florida Division of
Chesapeake Utilities increasing both delivery capacity and
downstream pressure as well as introducing a secondary source of
natural gas for the Florida Division of Chesapeake Utilities'
distribution system. Peninsula Pipeline generated gross
margin from this project of $0.2
million for the three months ended March 31, 2020 and expects to generate annual
gross margin of $0.7 million in 2020
and beyond.
Callahan Intrastate Pipeline
In May 2018, Peninsula Pipeline announced a plan to
construct a jointly owned intrastate transmission pipeline with
Seacoast Gas Transmission in Nassau
County, Florida. The 26-mile pipeline will serve
growing demand in both Nassau and
Duval Counties. Construction of
the project is ongoing and it is expected to be placed in-service
during the third quarter of 2020. Peninsula Pipeline expects to
generate gross margin of $3.2 million
in 2020 and $6.4 million annually
thereafter.
Guernsey Power Station
Guernsey Power Station,
LLC ("Guernsey Power Station") and the Company's affiliate, Aspire
Energy Express, LLC ("Aspire Energy Express"), entered into a
precedent firm transportation capacity agreement whereby Guernsey
Power Station will construct a power generation facility and Aspire
Energy Express will provide natural gas transportation service to
this facility. Guernsey Power Station commenced construction
of the project in October 2019. Aspire Energy Express is
expected to commence construction of the gas transmission
facilities to provide the firm transportation service to the power
generation facility in the second quarter of 2021. This
project is expected to produce gross margin of approximately
$0.7 million in 2021 and $1.5 million for 2022 and beyond.
Marlin Gas Services
Marlin Gas Services
provides temporary hold services, pipeline integrity services,
emergency services for damaged pipelines and specialized gas
services for customers who have unique requirements. We estimate
that Marlin Gas Services will generate annual gross margin of
approximately $6.4 million in 2020
and $7.0 million in 2021, with the
potential for additional growth in future years. Marlin Gas
Services continues to actively expand the territories it serves, as
well as leverage its patented technology to serve liquefied natural
gas transportation needs and to aid in the transportation of
renewable natural gas from the diverse supply sources to various
pipeline interconnection points.
Acquisitions
Boulden Propane
In December 2019, Sharp Energy, Inc. ("Sharp"), the
Company's wholly-owned subsidiary, acquired certain propane
customers and operating assets of Boulden which provides propane
distribution service to approximately 5,200 customers in
Delaware, Maryland and Pennsylvania. The customers and assets
acquired from Boulden have been assimilated into Sharp. The
operations acquired from Boulden generated $1.9 million of incremental gross margin for the
three months ended March 31,
2020. The Company estimates that this acquisition will
generate additional gross margin of approximately $3.8 million in 2020, and $4.2 million in 2021, with the potential for
additional growth in future years.
Elkton Gas Company
In December 2019, the Company entered into an
agreement with South Jersey Industries, Inc. ("SJI") to acquire
Elkton Gas Company, which provides natural gas distribution service
to approximately 7,000 residential and commercial customers in
Cecil County, Maryland contiguous
to the existing franchise territory in Cecil County. The acquisition is expected to
close in the third quarter of 2020, subject to approval by the
Maryland PSC.
Regulatory Initiatives
Florida GRIP
Florida GRIP is a natural gas pipe
replacement program approved by the Florida PSC that allows
automatic recovery, through rates, of costs associated with the
replacement of mains and services. Since the program's inception in
August 2012, the Company has invested
$148.7 million of capital
expenditures to replace 303 miles of qualifying distribution mains,
including $4.8 million of new pipes
during the first three months of 2020. GRIP gross margin increased
by $0.1 million for the three months
ended March 31, 2020 compared to
2019, on a gross basis.
In the first quarter of 2020, the Company recorded a reduction
in depreciation expense totaling $0.3
million, as a result of a Florida PSC approved depreciation
study that lowered annual depreciation rates. The Company also
recorded $0.2 million in lower GRIP
margin due to a concurrent reduction in the surcharge collected
from customers as a result of the reduced depreciation rates during
the first quarter of 2020. Including this impact, gross margin
generated from Florida GRIP for the first quarter of 2020 decreased
on a net basis by $0.1 million.
Hurricane Michael
In October 2018, Hurricane Michael passed through
FPU's electric distribution operation's service territory in
Northwest Florida. The hurricane
caused widespread and severe damage to FPU's infrastructure
resulting in 100 percent of its customers in the Northwest Florida service territory losing
electrical service. FPU expended more than $65.0 million to restore service as quickly as
possible, which has been recorded as new plant and equipment,
charged against FPU's accumulated depreciation or charged against
FPU's storm reserve. Additionally, amounts currently being
reviewed by the Florida PSC for regulatory asset treatment have
been recorded as receivables and other deferred charges.
In August 2019, FPU filed a
limited proceeding requesting recovery of storm-related costs
associated with Hurricane Michael (plant investment and expenses)
through a change in base rates. FPU also requested treatment and
recovery of certain storm-related costs as a regulatory asset for
items currently not allowed to be recovered through the storm
reserve as well as the recovery of plant investment replaced as a
result of the storm. FPU has proposed an overall return component
on both the plant additions and the proposed regulatory assets. In
the fourth quarter of 2019, FPU along with the Office of Public
Counsel in Florida, filed a joint
motion with the Florida PSC to approve an interim rate increase,
subject to refund, pending the final ruling on the recovery of
the restoration costs incurred. The petition was approved by the
Florida PSC in November 2019 and
interim rate increases were implemented effective January
2020. At this time, the Company has recorded a reserve for
the interim rate increases, pending a final resolution of the
proceeding.
In March 2020, FPU filed an update
to the original filing to account for actual charges incurred
through December 2019, revised the
amortization period of the storm-related costs from 30 years as
originally requested to 10 years, and included costs related to
Hurricane Dorian of approximately $1.2
million in this filing. FPU continues to work with the
Florida PSC and the petition is currently on the schedule for
approval at the Florida PSC Agenda in September 2020.
Other major factors influencing gross margin
Weather and Consumption
Significantly warmer
temperatures during the three months ended March 31, 2020, had
a negative impact on gross margin for the quarter. Lower customer
consumption, directly attributable to warmer than normal
temperatures during the three months ended March 31, 2020, reduced gross margin by
$4.2 million compared to the same
quarter in 2019 and $5.1 million
compared to normal temperatures as defined below. The following
table summarizes heating degree day ("HDD") and cooling degree day
("CDD") variances from the 10-year average HDD/CDD ("Normal") for
the three months ended March 31, 2020
and 2019.
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2020
|
|
2019
|
|
Variance
|
Delmarva
|
|
|
|
|
|
Actual HDD
|
1,859
|
|
|
2,322
|
|
|
(463)
|
|
10-Year Average HDD
("Normal")
|
2,349
|
|
|
2,362
|
|
|
(13)
|
|
Variance from
Normal
|
(490)
|
|
|
(40)
|
|
|
|
Florida
|
|
|
|
|
|
Actual HDD
|
334
|
|
|
361
|
|
|
(27)
|
|
10-Year Average HDD
("Normal")
|
495
|
|
|
518
|
|
|
(23)
|
|
Variance from
Normal
|
(161)
|
|
|
(157)
|
|
|
|
Ohio
|
|
|
|
|
|
Actual HDD
|
2,496
|
|
|
2,996
|
|
|
(500)
|
|
10-Year Average HDD
("Normal")
|
3,019
|
|
|
3,045
|
|
|
(26)
|
|
Variance from
Normal
|
(523)
|
|
|
(49)
|
|
|
|
Florida
|
|
|
|
|
|
Actual CDD
|
226
|
|
|
134
|
|
|
92
|
|
10-Year Average CDD
("Normal")
|
105
|
|
|
97
|
|
|
8
|
|
Variance from
Normal
|
121
|
|
|
37
|
|
|
|
Natural Gas Distribution Margin Growth
Customer
growth for the Company's natural gas distribution operations, as a
result of the addition of new customers and the conversion of
customers from alternative fuel sources to natural gas service,
generated $1.1 million of additional
margin for the three months ended March 31,
2020 compared to 2019. The average number of
residential customers served on the Delmarva Peninsula and in
Florida increased by 3.9 percent
and 3.8 percent, respectively, during the first quarter of 2020.
Growth in commercial and industrial customers also contributed
additional margin during 2020. The details are provided in the
following table:
|
|
Gross Margin
Increase
|
|
|
Three Months Ended
March 31, 2020
|
Customer
growth:
|
|
Delmarva
Peninsula
|
|
Florida
|
Residential
|
|
$
|
441
|
|
|
$
|
223
|
|
Commercial and
industrial
|
|
154
|
|
|
278
|
|
Total customer
growth
|
|
$
|
595
|
|
|
$
|
501
|
|
Capital Investment Growth and Associated Financing
Plans
The Company's capital expenditures were $41.2 million for the three months ended
March 31, 2020. The following table shows a range of the
2020 capital expenditures forecast by segment and by business
line:
|
2020
|
(dollars in
thousands)
|
Low
|
|
High
|
Regulated
Energy:
|
|
|
|
Natural gas
distribution
|
$
|
72,000
|
|
|
$
|
83,000
|
|
Natural gas
transmission
|
83,000
|
|
|
96,000
|
|
Electric
distribution
|
5,000
|
|
|
7,000
|
|
Total Regulated
Energy
|
160,000
|
|
|
186,000
|
|
Unregulated
Energy:
|
|
|
|
Propane
distribution
|
10,000
|
|
|
11,000
|
|
Energy
transmission
|
6,000
|
|
|
6,000
|
|
Other unregulated
energy
|
6,000
|
|
|
8,000
|
|
Total Unregulated
Energy
|
22,000
|
|
|
25,000
|
|
Other:
|
|
|
|
Corporate and other
businesses
|
3,000
|
|
|
4,000
|
|
Total Other
|
3,000
|
|
|
4,000
|
|
Total 2019
Expected Capital
Expenditures
|
$
|
185,000
|
|
|
$
|
215,000
|
|
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, capital delays because of COVID-19 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 budgeted amounts.
Management reaffirms its capital expenditure guidance of
$750 million to $1 billion for 2018 to 2022. From January 1, 2018 through March 31, 2020, the Company has invested
$523.0 million in new capital
expenditures.
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 45 percent as of March 31, 2020.
The Company may utilize more temporary short-term debt, when the
financing cost is attractive, as a bridge to the permanent
long-term financing, or if the equity markets are more volatile.
The Company also maintains an effective shelf registration
statement with the Securities and Exchange Commission for the
issuance of shares under its Dividend Reinvestment and Direct Stock
Purchase Plan (the "DRIP"). Depending on the Company's
capital needs and subject to market conditions, in addition to
other debt and equity offerings, the Company may consider issuing
additional shares under the direct stock purchase component of the
DRIP.
As of March 31, 2020, the Company
had approximately $117 million
available under its existing short-term lines of credit and
syndicated revolver facility. Since March 31, 2020, to ensure the Company has access
to additional debt capital, as needed and also given the
uncertainty regarding the length and depth of the impacts of the
COVID-19 pandemic, the Company has received commitments for an
additional $95 million of short-term
debt capacity with four existing lenders. The Company also
renewed two of its long-term shelf agreements for $150 million each, for a total availability of
$300 million of long-term debt
capital. The terms of any financings under these shelf
agreements would be negotiated between the parties. More
information about these additional lines of credit and the renewal
of the respective shelf agreements is included in the Company's
Quarterly Report on Form 10-Q for the three months ended
March 31, 2020.
Chesapeake
Utilities Corporation and Subsidiaries
Condensed
Consolidated Statements of Income (Unaudited)
(in thousands,
except shares and per share data)
|
|
Three Months
Ended
|
|
March
31,
|
|
2020
|
|
2019
|
Operating
Revenues
|
|
|
|
Regulated
Energy
|
$
|
102,955
|
|
|
$
|
103,618
|
|
Unregulated Energy
and other
|
49,755
|
|
|
56,846
|
|
Total Operating
Revenues
|
152,710
|
|
|
160,464
|
|
Operating
Expenses
|
|
|
|
Regulated Energy cost
of sales
|
34,832
|
|
|
36,516
|
|
Unregulated Energy
and other cost of sales
|
18,036
|
|
|
24,411
|
|
Operations
|
35,992
|
|
|
35,413
|
|
Maintenance
|
3,836
|
|
|
3,680
|
|
Depreciation and
amortization
|
12,252
|
|
|
10,928
|
|
Other
taxes
|
5,649
|
|
|
5,392
|
|
Total operating
expenses
|
110,597
|
|
|
116,340
|
|
Operating
Income
|
42,113
|
|
|
44,124
|
|
Other income
(expense), net
|
3,318
|
|
|
(57)
|
|
Interest
charges
|
5,814
|
|
|
5,628
|
|
Income from
Continuing Operations Before Income Taxes
|
39,617
|
|
|
38,439
|
|
Income Taxes on
Continuing Operations
|
10,591
|
|
|
9,625
|
|
Income from
Continuing Operations
|
29,026
|
|
|
28,814
|
|
Loss from
Discontinued Operations, Net of Tax (1)
|
(96)
|
|
|
(150)
|
|
Net
Income
|
$
|
28,930
|
|
|
$
|
28,664
|
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
Basic
|
16,414,773
|
|
|
16,384,927
|
|
Diluted
|
16,471,827
|
|
|
16,432,852
|
|
Basic Earnings Per
Share of Common Stock:
|
|
|
|
Earnings from
Continuing Operations
|
$
|
1.77
|
|
|
$
|
1.76
|
|
Loss from
Discontinued Operations (1)
|
(0.01)
|
|
|
(0.01)
|
|
Basic Earnings Per
Share of Common Stock
|
$
|
1.76
|
|
|
$
|
1.75
|
|
|
|
|
|
Diluted Earnings
Per Share of Common Stock:
|
|
|
|
Earnings from
Continuing Operations
|
$
|
1.77
|
|
|
$
|
1.75
|
|
Loss from
Discontinued Operations (1)
|
(0.01)
|
|
|
(0.01)
|
|
Diluted Earnings Per
Share of Common Stock
|
$
|
1.76
|
|
|
$
|
1.74
|
|
|
(1) During the fourth quarter of
2019, the Company completed the sale of assets and contracts of
PESCO and has exited the natural gas marketing business. As a
result, the Company began to report PESCO as discontinued
operations during the third quarter of 2019 and excluded its
performance from continuing operations for all periods
presented.
|
Chesapeake
Utilities Corporation and Subsidiaries
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
Assets
|
|
March 31,
2020
|
|
December 31,
2019
|
(in thousands,
except shares and per share data)
|
|
|
|
|
Property,
Plant and Equipment
|
|
|
|
|
Regulated
Energy
|
|
$
|
1,447,089
|
|
|
$
|
1,441,473
|
|
Unregulated
Energy
|
|
274,970
|
|
|
265,209
|
|
Other businesses and
eliminations
|
|
39,370
|
|
|
39,850
|
|
Total property,
plant and equipment
|
|
1,761,429
|
|
|
1,746,532
|
|
Less:
Accumulated depreciation and amortization
|
|
(345,206)
|
|
|
(336,876)
|
|
Plus:
Construction work in progress
|
|
75,510
|
|
|
54,141
|
|
Net property,
plant and equipment
|
|
1,491,733
|
|
|
1,463,797
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
3,982
|
|
|
6,985
|
|
Trade and other
receivables
|
|
46,730
|
|
|
50,899
|
|
Less: Allowance for
credit losses
|
|
(1,421)
|
|
|
(1,337)
|
|
Trade receivables,
net
|
|
45,309
|
|
|
49,562
|
|
Accrued
revenue
|
|
16,931
|
|
|
20,846
|
|
Propane inventory, at
average cost
|
|
5,136
|
|
|
5,824
|
|
Other inventory, at
average cost
|
|
5,621
|
|
|
6,067
|
|
Regulatory
assets
|
|
4,441
|
|
|
5,144
|
|
Storage gas
prepayments
|
|
753
|
|
|
3,541
|
|
Income taxes
receivable
|
|
15,230
|
|
|
20,050
|
|
Prepaid
expenses
|
|
10,707
|
|
|
13,928
|
|
Derivative assets, at
fair value
|
|
151
|
|
|
—
|
|
Other current
assets
|
|
3,666
|
|
|
2,879
|
|
Total current
assets
|
|
111,927
|
|
|
134,826
|
|
Deferred
Charges and Other Assets
|
|
|
|
|
Goodwill
|
|
32,668
|
|
|
32,668
|
|
Other intangible
assets, net
|
|
7,824
|
|
|
8,129
|
|
Investments, at fair
value
|
|
7,217
|
|
|
9,229
|
|
Operating lease
right-of-use assets
|
|
11,696
|
|
|
11,563
|
|
Regulatory
assets
|
|
73,552
|
|
|
73,407
|
|
Receivables and other
deferred charges
|
|
51,602
|
|
|
49,579
|
|
Total deferred
charges and other assets
|
|
184,559
|
|
|
184,575
|
|
Total
Assets
|
|
$
|
1,788,219
|
|
|
$
|
1,783,198
|
|
Chesapeake
Utilities Corporation and Subsidiaries
Condensed
Consolidated Balance Sheets (Unaudited)
|
Capitalization and
Liabilities
|
|
March 31,
2020
|
|
December 31,
2019
|
(in thousands,
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 50,000,000 shares)
|
|
7,998
|
|
|
7,984
|
|
Additional
paid-in capital
|
|
259,521
|
|
|
259,253
|
|
Retained
earnings
|
|
322,804
|
|
|
300,607
|
|
Accumulated
other comprehensive loss
|
|
(6,194)
|
|
|
(6,267)
|
|
Deferred
compensation obligation
|
|
5,468
|
|
|
4,543
|
|
Treasury
stock
|
|
(5,468)
|
|
|
(4,543)
|
|
Total
stockholders' equity
|
|
584,129
|
|
|
561,577
|
|
Long-term debt,
net of current maturities
|
|
440,183
|
|
|
440,168
|
|
Total
capitalization
|
|
1,024,312
|
|
|
1,001,745
|
|
Current
Liabilities
|
|
|
|
|
Current portion of
long-term debt
|
|
15,600
|
|
|
45,600
|
|
Short-term
borrowing
|
|
254,339
|
|
|
247,371
|
|
Accounts
payable
|
|
52,568
|
|
|
54,068
|
|
Customer deposits and
refunds
|
|
29,122
|
|
|
30,939
|
|
Accrued
interest
|
|
5,014
|
|
|
2,554
|
|
Dividends
payable
|
|
6,655
|
|
|
6,644
|
|
Accrued
compensation
|
|
7,518
|
|
|
16,236
|
|
Regulatory
liabilities
|
|
13,524
|
|
|
5,991
|
|
Derivative
liabilities, at fair value
|
|
1,986
|
|
|
1,844
|
|
Other accrued
liabilities
|
|
16,170
|
|
|
12,077
|
|
Total current
liabilities
|
|
402,496
|
|
|
423,324
|
|
Deferred
Credits and Other Liabilities
|
|
|
|
|
Deferred income
taxes
|
|
186,431
|
|
|
180,656
|
|
Regulatory
liabilities
|
|
128,027
|
|
|
127,744
|
|
Environmental
liabilities
|
|
6,046
|
|
|
6,468
|
|
Other pension and
benefit costs
|
|
28,043
|
|
|
30,569
|
|
Operating lease -
liabilities
|
|
10,165
|
|
|
9,896
|
|
Deferred investment
tax credits and other liabilities
|
|
2,699
|
|
|
2,796
|
|
Total deferred
credits and other liabilities
|
|
361,411
|
|
|
358,129
|
|
Environmental and
other commitments and contingencies (1)
|
|
|
|
|
Total
Capitalization and Liabilities
|
|
$
|
1,788,219
|
|
|
$
|
1,783,198
|
|
|
(1)Refer
to Note 6 and 7 in the Company's Quarterly Report on Form 10-Q for
further information.
|
Chesapeake
Utilities Corporation and Subsidiaries
Distribution
Utility Statistical Data (Unaudited)
|
|
|
For the Three
Months Ended March 31, 2020
|
|
For the Three
Months Ended March 31, 2019
|
|
|
Delmarva NG
Distribution
|
|
Chesapeake
Utilities Florida NG Division
|
|
FPU NG
Distribution
|
|
FPU Electric
Distribution
|
|
Delmarva NG
Distribution
|
|
Chesapeake
Utilities Florida NG Division
|
|
FPU NG
Distribution
|
|
FPU Electric
Distribution
|
Operating
Revenues
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
$
|
28,878
|
|
|
$
|
1,861
|
|
|
$
|
11,198
|
|
|
$
|
7,227
|
|
|
$
|
29,971
|
|
|
$
|
1,785
|
|
|
$
|
10,720
|
|
|
$
|
9,859
|
|
Commercial
|
|
12,239
|
|
|
1,784
|
|
|
7,972
|
|
|
6,948
|
|
|
13,141
|
|
|
1,738
|
|
|
7,707
|
|
|
7,816
|
|
Industrial
|
|
2,396
|
|
|
3,338
|
|
|
7,669
|
|
|
64
|
|
|
2,388
|
|
|
3,266
|
|
|
5,994
|
|
|
610
|
|
Other
(1)
|
|
(1,517)
|
|
|
1,494
|
|
|
(1,395)
|
|
|
(19)
|
|
|
(822)
|
|
|
1,111
|
|
|
(635)
|
|
|
(3,907)
|
|
Total
Operating
Revenues
|
|
$
|
41,996
|
|
|
$
|
8,477
|
|
|
$
|
25,444
|
|
|
$
|
14,220
|
|
|
$
|
44,678
|
|
|
$
|
7,900
|
|
|
$
|
23,786
|
|
|
$
|
14,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (in Dts
for natural gas and KWHs for electric)
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
1,909,131
|
|
|
139,189
|
|
|
516,933
|
|
|
64,947
|
|
|
2,220,375
|
|
|
132,872
|
|
|
505,326
|
|
|
65,511
|
|
Commercial
|
|
1,540,111
|
|
|
1,199,123
|
|
|
519,583
|
|
|
64,679
|
|
|
1,653,320
|
|
|
1,248,764
|
|
|
504,046
|
|
|
61,829
|
|
Industrial
|
|
1,324,409
|
|
|
7,714,393
|
|
|
1,363,365
|
|
|
11,612
|
|
|
1,511,308
|
|
|
7,333,850
|
|
|
1,347,237
|
|
|
7,750
|
|
Other
|
|
76,914
|
|
|
—
|
|
|
588,813
|
|
|
—
|
|
|
17,859
|
|
|
—
|
|
|
555,391
|
|
|
—
|
|
Total
|
|
4,850,565
|
|
|
9,052,705
|
|
|
2,988,694
|
|
|
141,238
|
|
|
5,402,862
|
|
|
8,715,486
|
|
|
2,912,000
|
|
|
135,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
76,870
|
|
|
17,661
|
|
|
58,937
|
|
|
24,893
|
|
|
73,976
|
|
|
16,988
|
|
|
56,829
|
|
|
24,379
|
|
Commercial
|
|
7,244
|
|
|
1,581
|
|
|
3,981
|
|
|
7,260
|
|
|
7,148
|
|
|
1,529
|
|
|
3,897
|
|
|
7,232
|
|
Industrial
|
|
173
|
|
|
16
|
|
|
2,498
|
|
|
2
|
|
|
168
|
|
|
17
|
|
|
2,415
|
|
|
2
|
|
Other
|
|
18
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
12
|
|
|
—
|
|
Total
|
|
84,305
|
|
|
19,258
|
|
|
65,430
|
|
|
32,155
|
|
|
81,301
|
|
|
18,534
|
|
|
63,153
|
|
|
31,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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:http://www.prnewswire.com/news-releases/chesapeake-utilities-corporation-reports-first-quarter-2020-results-301054310.html
SOURCE Chesapeake Utilities Corporation