- Second quarter net income rose 5.6 percent to $6.4 million or $0.39 per share
- Profitable growth in the natural gas, electric and propane distribution and natural gas transmission businesses continued to drive increased earnings for the quarter and year-to-date
- The Company has paid or reserved a total of $5.4 million in refunds to regulated energy customers from the pass-through of lower Federal income taxes
- The Northwest Florida Pipeline expansion project was completed and placed into service during the quarter
- Eastern Shore Natural Gas Company’s (“Eastern Shore”) $117 million pipeline expansion project and associated earnings remains on track
- The 2018 capital spending forecast has been increased from $181.6 million to $216.4 million based on additional profitable opportunities identified across the Company
Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK) (“Chesapeake Utilities” or the “Company”) today announced second quarter financial results. The Company’s net income for the quarter ended June 30, 2018 was $6.4 million, compared to $6.0 million for the same quarter of 2017. Earnings per share (“EPS”) for the quarter ended June 30, 2018 were $0.39, compared to $0.37 per share for the same quarter of 2017. For the six months ended June 30, 2018, the Company reported net income of $33.2 million, or $2.03 per share. This represents an increase of $8.1 million or $0.49 per share compared to the same period in 2017. The second quarter of 2018 and year-to-date EPS reflect the impact of a $0.09 charge for nonrecurring separation expenses associated with a former executive. Absent that charge, earnings for the quarter and six months ended June 30, 2018 would have been $0.48 and $2.12, respectively.
Higher quarterly and year-to-date earnings reflect the benefits of investments in system expansions and reliability and continued growth in regulated natural gas and electric operations, as well as enhanced profitability and growth from the Company’s propane operations and the benefit of the lower effective tax rate from the Tax Cuts and Jobs Act (“TCJA”) on Unregulated Energy earnings. The results also reflect more normal weather during the quarter and six months ended June 30, 2018. Weather during the first half of 2018 was 1.8 percent warmer than normal compared to 22.2 percent warmer than normal during the first six months of 2017. A detailed discussion of operating results begins on page 3.
“Results for the second quarter and year-to-date highlight the strong leadership team we have built at Chesapeake Utilities and the dedication of our employees to achieving our earnings, capital investment and return targets,” stated Michael P. McMasters, President and Chief Executive Officer of Chesapeake Utilities Corporation. “Our business units continue to execute on our growth and expansion initiatives including the completion of the Northwest Florida Pipeline expansion project, significant progress on the construction of Eastern Shore’s largest ever expansion project, as well as several other projects that support attainment of our strategic growth targets in future years,” Mr. McMasters added. “I am very excited about the potential growth opportunities we have in front of us, the leadership we have in place to accomplish our strategic plan and our energized employees’ ability to turn these opportunities into executable projects that will continue to drive our future earnings growth and further increase shareholder value,” he concluded.
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