Q4 2024 Chesapeake Utilities Corp Earnings Call Transcript
Key Points
- Chesapeake Utilities Corp (CPK) achieved a full year 2024 EPS of $5.39, reaching the midpoint of their guidance range.
- The company invested a record $356 million in capital in 2024, aligning with their five-year capital forecast of $1.5 to $1.8 billion through 2028.
- Florida City Gas acquisition contributed significantly, with $89 million in 2024 adjusted gross margin and 93% of FCG teammates retained.
- Chesapeake Utilities Corp (CPK) reported a 25% increase in adjusted gross margin to $567 million, driven by infrastructure expansions and distribution growth.
- The company maintained a strong balance sheet with $505 million in liquidity and successfully issued $100 million in long-term debt at a 5.2% coupon.
- Warmer than normal temperatures and a delay in the finalization of the Maryland rate case posed challenges.
- Increased operating expenses, including higher insurance and vehicle expenses, partially offset margin growth by $1.52 per share.
- Interest expenses increased by $1.15 per share, impacting overall financial performance.
- The company faced dilution of $0.96 per share due to increased shares outstanding from the Florida City Gas acquisition financing.
- The integration of Florida City Gas and the implementation of the SAP customer billing system required significant organizational changes and process improvements.
Good morning everyone and welcome to Chesapeake Utilities Corporation's 4th quarter and full year 2024 earnings conference call. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation.
If you would like to ask a question at that time, please press 1 on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing 2. So others can hear your questions clearly, we ask that you please pick up your handset for best sound quality. Lastly, if you should require operator assistance at any time, please press 0. I would now like to turn a call over to Ms. Lucia Dempsey, head of investor relations. Please go ahead.
Ma'am. Thank you and good morning, everyone. Today's presentation can be accessed on our website under the investors page and events and presentations subsection. After our prepared remarks, we will open up the call for questions.
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