CHESAPEAKE UTILITIES CORPORATION REPORTS FOURTH QUARTER AND FISCAL YEAR 2017 RESULTS

February 28, 2018

  • 2017 net income totaled $58.1 million or $3.55 per share, including a one-time $0.87 per share deferred income tax benefit associated with the Tax Cuts and Jobs Act of 2017 (“TCJA”) and a $0.21 per share unrealized mark-to-market (“MTM”) loss on financial derivatives contracts
  • Fourth quarter 2017 net income totaled $26.1 million, or $1.59 per share, including the onetime deferred income tax benefit and unrealized MTM loss
  • Strong growth in natural gas distribution and transmission, propane and CHP plant operations generated $21.3 million in incremental gross margin* for 2017
  • The first segment of Eastern Shore’s $117 million pipeline expansion project was placed into service during the fourth quarter

Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK) (“Chesapeake Utilities” or the “Company”) today announced financial results for the year and the fourth quarter ended December 31, 2017. The Company’s net income for the year was $58.1 million, or $3.55 per share, an increase of $13.4 million, or $0.69 per share, compared to 2016. The higher net income and earnings per share (“EPS”) reflected continued customer growth in the Company’s natural gas and propane distribution operations and expansion of its gas transmission operations, full year contributions from Eight Flags Energy LLC’s (“Eight Flags”) Combined Heat and Power (“CHP”) plant, increased profitability for the propane operations and for Aspire Energy of Ohio, LLC (“Aspire Energy”), a partial year’s impact of new base rates for Eastern Shore Natural Gas Company (“Eastern Shore”), and the favorable impact of Federal tax law changes on the revaluation of net deferred tax assets and liabilities of the Company’s unregulated businesses. A detailed discussion of operating results begins on page 3.

“2017 was an exceptional year for the Company,” stated Michael P. McMasters, President and Chief Executive Officer. “Recently completed growth projects, in addition to numerous other strategic growth initiatives across all of our businesses, generated our eleventh record year of earnings. Construction of Eastern Shore’s largest ever expansion project is underway with expected completion in phases throughout 2018, and in Florida construction is underway on several pipeline and distribution projects to serve growth in new and existing market areas,” he added. “Our employees continue to identify and evaluate new growth opportunities while profitably managing current projects, maintaining operating efficiency and providing safe, reliable service to our customers. Changing regulatory and energy environments and customer energy options create new challenges and opportunities that our team recognizes and embraces. We continually refine our strategic focus to harvest benefits from the challenges of accelerating change and to increase our portfolio of growth opportunities and profitable capital investments in 2018 and beyond,” he concluded.

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