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Mar 31
Chesapeake Utilities Q1 2025 Earnings Report
Chesapeake Utilities reported an increase in net income and operating income for the first quarter of 2025, driven by higher adjusted gross margins from regulated and unregulated energy segments.
Key Takeaways
Chesapeake Utilities Corporation reported a net income of $50.9 million for the first quarter of 2025, an increase from $46.2 million in the same period last year. Operating income also rose to $86.8 million from $79.6 million. Total operating revenues reached $298.7 million, up from $245.7 million, primarily due to increased customer consumption and growth in natural gas distribution businesses.
Net income increased by $4.7 million to $50.9 million in Q1 2025 compared to Q1 2024.
Operating income grew by $7.2 million to $86.8 million in Q1 2025.
Total operating revenues increased by $53.0 million to $298.7 million in Q1 2025.
Adjusted gross margin saw a significant increase of $17.9 million, reaching $182.4 million.
Chesapeake Utilities
Chesapeake Utilities
Chesapeake Utilities Revenue by Segment
Chesapeake Utilities Revenue by Geographic Location
Revenue by Segment
Regulated Energy Revenue
CapyFin.comUnregulated Energy Revenue
CapyFin.comOther Businesses and Eliminations Revenue
CapyFin.comRevenue by Geographic Location
Delmarva Natural Gas Distribution Revenue
CapyFin.comFlorida Natural Gas Distribution Revenue
CapyFin.comFlorida City Gas Distribution Revenue
CapyFin.comFPU Electric Distribution Revenue
CapyFin.comMaryland Natural Gas Division Revenue
CapyFin.comSandpiper NG/Propane Operations Revenue
CapyFin.comElkton Gas Revenue
CapyFin.comAspire Energy Revenue
CapyFin.comAspire Energy Express Revenue
CapyFin.comEastern Shore Revenue
CapyFin.comPeninsula Pipeline Revenue
CapyFin.comEight Flags Revenue
CapyFin.comPropane Delivery Operations Revenue
CapyFin.comMarlin Gas Services Revenue
CapyFin.comOther RNG Revenue
CapyFin.com Forward Guidance
Chesapeake Utilities anticipates continued growth through strategic investments in regulated energy infrastructure and expansion into renewable natural gas projects. The company expects to generate additional adjusted gross margin from ongoing projects and regulatory initiatives.
Positive Outlook
- Wildlight Expansion is expected to contribute approximately $3.0 million in adjusted gross margin in 2025 and $4.3 million annually thereafter.
- Newberry Expansion is projected to contribute approximately $2.6 million in adjusted gross margin in 2025 and annually thereafter.
- Worcester Resiliency Upgrade is expected to contribute approximately $9.1 million in adjusted gross margin in 2026.
- East Coast Reinforcement Projects are projected to contribute approximately $4.7 million in adjusted gross margin in 2025 and $6.0 million annually thereafter.
- Renewable Natural Gas Supply Projects are projected to generate total adjusted gross margin of approximately $4.5 million in 2025 and $6.7 million annually thereafter.
Challenges Ahead
- The timing of capital expenditures can vary based on delays in regulatory approvals, securing environmental approvals, and other permits.
- Trade tariffs are likely to increase the cost of imported materials and equipment, potentially increasing overall investment costs.
- Uncertainty regarding potential significant changes to U.S. trade policies, treaties, and tariffs could impact project delays and cost increases.
- The company is currently unable to reasonably estimate the effects of the rapidly evolving trade tariff landscape.
- The outcome of the FCG depreciation study application is subject to review and approval by the Florida PSC, with a final ruling expected in September 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income