The following is a summary of the Chesapeake Utilities Corporation (CPK) Q4 2023 Earnings Call Transcript:
Financial Performance:
Chesapeake Utilities reported an increase in 2023's adjusted gross margin by $33.9 million and operating income by $7.9 million excluding Florida City Gas transaction-related expenses.
Despite fluctuations caused by warmer weather and higher interest rates affecting consumption and earnings, the incremental EPS for 2023 was $1.50.
The adjusted EPS growth for 2023 was 5.4%, improving by $0.27 per share.
A target diluted EPS in the range of $5.33 to $5.45 per share has been set for 2024.
Chesapeake reaffirmed its capital investment between $1.5 billion and $1.8 billion from 2024 to 2028.
Business Progress:
Growth was driven by regulatory changes and the growing customer base in Chesapeake's regulated energy segment.
The company acquired Florida City Gas, doubling its footprint in the market.
New capital investments have been planned for Florida City Gas, along with a few capital projects.
For stability and growth, regulatory applications for new capital projects are being completed such as connecting three landfill RNG sites to FCG's distribution system.
Chesapeake's largest business transformation initiative to date includes the launch of a new SAP customer service application.
The company is finalizing regulatory filings for new RNG transmission projects to establish produced RNG pathways via the Florida City Gas distribution systems.
The company also anticipates around $17.2 million recognition in 2024 due to permanent rate changes from their recent Florida rate case.
More details: Chesapeake Utilities Corp IR
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