CPK - Earnings call 3 2023 | Chesapeake Utilities Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Chesapeake Utilities Third Quarter 2023 Earnings Conference Call. [Operator Instructions].I would now like to turn the call over to Beth Cooper, Executive Vice President, Chief Financial Officer, Treasurer and Assistant Corporate Secretary. Please begin.

Beth Cooper

Thank you, and good morning, everyone. We appreciate you joining us today for Chesapeake Utilities Third Quarter 2023 Earnings Call.

our for issued XXXX. the in delivered the saw performance solid third you press yesterday, release company As quarter of

of performance about results first minutes. to basis City warmer year-to-date we These a items Florida across on few consumption within territories. the will Our from the be announced cover detailed impact just financial our has service continue temperatures we that of very Also, September. half offset the acquisition we are excited the that year Gas in in a in

providing related of to current adjusted be but year in will it's more our to transaction reconciliation call the call, GAAP during been have XXXX A presentation. earnings in exclude comparable the We details transaction-related on of of status the adjusted and that results the expenses the can and transaction. important between be metrics found earnings release that note to our incurred later were the quarter third appendix results the the

shown the Secretary Householder, Risk call with Chief Vice today me Chief Moriarty, President, Corporate and on and on General Executive Executive Policy Jeff President and Counsel, Chairman, participating Officer. are Slide As and Officer; Jim X,

call management team as we can typically also other of under for After prepared remarks, us and subsection. up our the members questions. We accessed Events virtually. do, Today's page have will presentation on Investors joining our be the website our and open Presentation we

that discussed may forward-looking risks include to and involve Slide would call conference Moving in statements this remind I to matters X. like that you uncertainties.

XXXX XX-K the safe harbor materially from of provides differ further could actual our for the such factors results. and to cause that The section on projections statements differ actual results. statements could Forward-looking information forward-looking statements Form from company's our

based A measures presentation, with G. Form SEC's the appropriate adjusted information in reconciliation performance in non-GAAP related GAAP and our of accordance Regulation measures margin, net earnings gross adjusted per evaluates third including for certain XX-Q this the earnings quarterly disclosures accompanying on includes non-GAAP income quarter. our the and company provided to been appendix the have and measures, release of adjusted the its these the report share, on Additionally, the

I'll the opening some over remarks, to Now of on acquisition quarter key status Jeff company's drivers to Florida third of Jeff? the call performance. turn City results, provide our and the including the the Gas

Jeffrey Householder

Thank you, and Beth. you Good today. for morning, our joining thank call

press XXXX. year-to-date $X.XX on release, As share earnings adjusted for of $X.XX we earnings you basis, and respectively, saw a and quarter in per our reported a

noted, we've we first results, environment. us rate year, had impact significant at impacting of also continued month weather interest the from with $X.XX dealt September. our our And a the rising pressure As share warmer on particularly half per the approximately through negatively throughout of

However, growth our accelerate our focused to strategic multiple opportunities pursuing capturing cost regulatory initiatives, team margin. on remained identifying and filings, executing savings

Our reduced reported team's efforts quarter. more than the earnings last reversed

a third result, impact million negative versus overcome XXXX. of accretive $XX we achieved and weather almost quarter As the have results

to and execution success. strategy growth fundamental continued Our strong deliver

last over services. $X.X also third margin strong year's for several support Our adjusted investment demand to We've delivery continued energy million new gross customer increased our by initiated projects quarter. the

the and progress incremental that make foundation deliver we significant system to provide substantial years. will on coming investment over addition, regulatory a In several continue margins for initiatives a

for about coming with growth excited provide investment years. We're our agreement significantly $XXX City incredibly this acquire opportunities also the We advanced strategy Gas it in transaction for and the million. to will Florida our growth

state in Florida the X. will Slide substantially second to Florida, in presence expand now jurisdiction City and the Gas our a utility U.S. Turning premier fastest-growing

gas than expect more combined. forma Florida. to have XXX,XXX regulated basis, our immediately distribution double in natural approximately will we pro customers we business On acquisition, the With a

platforms, scale in leverage growth foresee meet the we in gas transaction, our competencies, and for to brings contemplate X and pipeline benefits, company. the reliability our the system especially increased substantive we'll be the and efficiently of result demand underserved capital operate Florida. to A exciting a we've more effectively. improve opportunities growth across deploy footprint community core throughout to financial customer As to It's attractive natural and able state and unserved in larger also expertise built Florida relationships communities that to the opportunities

growth the Florida EPS drive positioned and expertise operation will addition Gas at well earnings meaningful team, broader City of stronger. transaction on expectation long-term operational also our our And even regulatory to of supports be X% our least growth. generate dividend be and extends will scale. a applying the growth rate much by consolidated should We with This and

a As acquisition of as a opportunities result both $X.X billion by presentation. in Gas the X Florida as our for on management opportunities businesses, our the plan later we result approximately us, available XXXX. City to investment capital billion the increased guidance always, to and legacy and on this I'll expanded XX% of investment growth. in focused efficient to the $X.X opportunities touch cost years we remain expanded the ending And

the to we And Gas to Energy track success. We'll discipline Public City of our City integrate operating We record that acquisitions rigor apply and Utilities, post-closing. Florida philosophy, Elkton the disciplined Sandpiper Florida approach on have with as build drove and success Gas M&A. a Florida same expect Gas, with we

our take progress. minutes on to update closing you a now me Let few

on upon As Transition to We're transaction. been and actively Florida have you transition approval Slide We We Service Chesapeake of Service be can to Maryland see and Gas period XX Commission to a and to both the expect waiting X, planning the Utilities the both teams close seamless ensure From for formed. employees City year-end. the on customers before closing the year-end approval X. detail the continue integration a transaction standpoint, for we X. and Delaware October from able Hart-Scott-Rodino progress Commission call. the regulatory on provide from Public on on to Public approval on expires November more plan November our received

Service not with communicating been regularly Florida this does them from transaction we've transaction Commission, the on our while progress. Finally, require and Public the approval

Turning to now financing.

know, market dynamics say recent the you challenging. least, been, As to have somewhat

a top plan, is our strong we to maintain our transaction priority sheet. financing As balance develop

are and actively evolving efforts. evaluate closely mitigation dynamics our of We risk financial the part to market as continuing

significant capital. remain flexibility, terms timing in have will permanent steadfast our investment-grade both of We for financing long-term plan that sheet Chesapeake. We forms of and an balance reflect

other to announced acquisition, earnings Florida the addition In quarter City several there are Gas our call. accomplishments second since notable

in peak Gas announced a the during mention in season, Delmarva Maryland slated a in United that, for of with consisted growing the to third affordable heating systems call existing is energy for the and solutions October, black With back these billion We're I'll $X our the hydrogen me Beth pipeline provide particularly The project growing our energy coupled our critical a utilities of October, of responsible Bishopville, partner the just our the turn partner the resiliency in liquefied which storage be on Let Natural service States. proud accomplishments. cars winter completed announced allow Eastern the $XX [Indiscernible] million territories. and opportunities, accelerate for and discuss quarter. facility and the to to couple These which ongoing receive Beth? project a delivery approximate the In our in to demand funding, to hub. will MACHX project, law upgrade the natural will expansions realistic on gas as to market we hydrogen of delivery bring we project will services in investment to Shore recently environmentally customers. the role results distribution project, Peninsula. infrastructure this Also demonstrates share

Beth Cooper

Thank you, Jeff.

the for just quarter Gas would our like few Before about opening and results Florida I City comments year-to-date, add discuss a to financial I the acquisition.

value the it transaction affords. excited about Jeff long-term As remain creation we expected indicated, extremely the and

to volatile turning continue proceeding first team. of track to that are the continue thank previously X. Chesapeake like an Slide we the begin financial even organization on Working and remain we schedule positioned as together, of our to guidance am our achieve and achieve fronts record. to accomplish challenging XXXX and things long-standing new the markets. And now I'd milestones. I We light on proud to indicated, collective in all as and

quarter additional our the I'll details talk months. third X first about some Now on and for results

lastly, adjusted diluted our margins rates key to $X.XX went of our new business; growth during contributions year-to-date the This that EPS adjusted was during in infrastructure prior strong $X.XX compared the contributions effect brought in for natural gallon gross higher propane and our projects. greater natural the year. factors business and permanent our into quarter the with to fees incremental margin third March, $X.XX gas share from performance in growth mentioned, $X.XX XXXX period. or businesses, per Jeff programs, organic along per regulated As The than for our associated distribution Florida year the with of pipeline earnings distribution adjusted third quarter base prior expansion gas included new shaping

we've throughout As X half first year the XXXX, the margin results to impact weather approximately attributable talked that through of $X.XX the warmer a experienced about of significantly reflect primarily was our year.

growth the focused adjusted excited with X, gross we're shows million to increased were margin and On financial realized team third we the our remains the Slide operating $X.X million and Our fundamental $X.X quarter. on strategies, income able we quarter. overcome in for our that impact that growth this increased summary

the XX%. this the in by quarter of by Interest third operating latter half expense with share more and rate over than EPS period, experienced Florida relative continued effects associated adjusted per year-to-date the also despite a quarter XX% transaction-related during full Again, the rising on have XXXX and of year last was income over to expenses Excluding ongoing impacts, force these prior our into improved higher basis. the as City year environment $X.XX for at higher XX% $X.XX increased Gas, the year.

me Moving insight for provide additional our quarter. EPS to XX, the Slide let adjusted on some

We growth. weather excluding changes key of additional businesses, continued the increased earnings previously core impact that adjusted in $X.XX by margin share. this provided on the Our consumption drivers contribution other per of touched and

and XXXX a absence The to what XX, on year-to-date covered all period $X.XX We through walk items. increased $X.XX to benefit changes a offset for manage partially resulted provide Higher we've quarter. a impact amortization did included had year a nonrecurring by to related of performance. temperatures. state bridge one the refund, so operating the related expense we volumes as income of to to refund income other to Higher $X.XX estate the same item. we The current The real a $X.XX from items, but impact period a effects And our together our of reduced offset expenses and Slide largely for I in want the business period $X.XX associated in excludes a offset income the impact. our the the are last primary gain tied federal onetime $X.XX resulted interest to for finally, was interest related year. won't drove year. quarter impact a the details, interest property the this to similar prior federal so current drivers tax I a warmer a the a as core year-to-date just taxes attributable continued includes third of few On same note with quarter decrease depreciation, quarter, key rate the decrease to of costs compared in and tax from earnings tax

into the weather continuation historic results, $X.XX prior per temperatures relative by more the during impactful on second our that of year-to-date year. performance, As with impacted temperatures quarter, the was first experienced we've quarter share had the warmer to our again, much along the noted,

share this approximately As impact you see business the by into growth core the can slide, of weather contribution X/X. per $X.XX cut on

we said, prior were compared per that EPS of the year. pleased the improvement with So to $X.XX with adjusted share

the Moving slides. to X next

touch Utilities Let Chesapeake segment. me on operating

our expansion and XX.X% was quarter primarily our rate with proceeding, see both higher associated Florida up gas expenses, systems, Regulated respectively, up Operating was by contributions adjusted natural the X.X% from transmission for for distribution XX.X% in our various the and rates operating in since incremental and income you transaction-related base the Slide infrastructure XX, pipeline can growth year-over-year and As X-month programs. margin X.X% Bank also new X- natural driven periods, up organic our income was gross Energy segment. for on X.X%, X.X% gas and period. and

operating quarter margin XX. X% the in prior are year, inherent the income for fixed the million with a a Slide prior gross but to businesses decrease significantly for the that compared basis, combination experienced the the period. in quarter the year. Turning on unregulated increased warmer increase the year-to-date unregulated year-to-date of of a resulted third to expenses our X.X% and largely operating temperatures over prior were results the $X the segment At consistent and reflects level, Adjusted

XX.X% the details Florida like position. million capital X.X% be fixed planned the our approximately balance our the long-term $X.XX some I'd next stockholders' Given highlight debt, $XXX and within equity, on of earlier Gas only approximately This was was investments executed couple the short-term an billion. capital target to XX.X% average period, debt including year. sheet our the end and acquisition, reflecting financing of X.XX% at months, over of City of At total of the continues which included is to range. long-term that this debt rate capitalization

rate to of $XXX able us some senior reduce $XX Slide million short-term XX-year of on to for of that mitigate the a $XX in debt locked approximately balance we the interest With balance XXXX. of the shown in X-year XX, that debt considerably. We we've XXXX. the environment that interest the million, continued September March As through million notes utilizing swap began been borrowings we rising rate executed effects in allowed a short-term issued short-term of

We shelf in and and agreements agreement under our MetLife. revolving Prudential credit with have additional capacity place

we equity We our our On of growth. future. ability plans XX, various the drivers in under to also the have issue future key Slide the detail

to for need Delmarva for the businesses distribution magnitude a gas preferred XXXX, of continue and increase to our in This the continuing a as investment the of our our Across distribution the territories territories, continue had X% transmission In in in increase First, attractiveness communities additional of we natural natural to service customers growth and both we Florida illustrates that outpaces select Florida. serve. drive service growth our X.X% we choice. system. The far again Delmarva in national their organic customer is gas energy deliver businesses the our also average.

managing Newberry previously, other initiatives, generated major especially expansion. quarter. We this our third quarter As significant our excellent in our was project These continue service table for while added beyond. make pipeline project of several with I Wildlight team our our the to first weather projects an And Northern projects job others margins did the Sharp mentioned deliver growth territories. the in headway and margin will time and a fees, also and margin in and including headwind, XXXX to service

community our continue growth Beyond growth yet natural a the not are add Propane natural gas gas with our to a where not where available. we systems desirable customer remains available. source is securing core we gas, of natural gas for highly new is customers propane component strategy as energy

As our we solve Marlin's call, services energy, is their transportation and Marlin complex clean with on delivering natural including fueling compressed that gas station solution, mentioned which to pipeline customers serves virtual challenges, last our virtual our Florida. gas solution pipeline in unique

advance Finally, several we to projects. continue sustainable investment

recognizing the our We are regulatory maturation disciplined cautious these approach, in evolving constructs. of and markets and

comprised facility go earnings Dairy for collective Farm Madison the New renewable on last construction proposal our governmental participation at the unit on submitted and of in the track educational Philadelphia discussed for into half commercial, we first On a of call, MACHX region. institutions Southern also the hydrogen Full our initiated first natural remain the Florida, that Delaware, that in and hub in we Jersey and a XXXX. County, team gas on to full-scale have We service our Circle

presents opportunities partners deployment As hydrogen Jeff mentioned the uses. multiple MACHX and and selection our significant previously, of promote development to fellow across us for

to that future. excited sustainable of are to a in support deliver our work furtherance solutions partners hydrogen-based with mission We these more

major regulatory which the initiatives, growth our margin pipeline drive transportation RNG gross Moving we projects LNG our and adjusted XX, strategic CNG, including expansion, this will and next. and to projects, year Slide highlight

this and projects As we growth, table the not it remind always, is and indicative not you evaluating are pursuing. that we does include all organic that of

projects to in be opportunities announcing our We are look business forward other team the presented by continue to encouraged that future. and by the development

of strategies have also projects quarter the growth. earnings to add our and or demonstrate that past company updates. team that growth In cost will contributed performance to call long-term regulatory our initiatives delivering to pass them and success the the we and or this table. and closing, dedication the As are announced year-to-date perseverance that finalized, drive future new for fundamental will to discuss Jim? Jim or our now results our I'll are

James Moriarty

Thank you, both Florida from significant, initiatives, which Beth, be to to earnings rates I and our rate recent simplification rate standpoint. comprehensive and first financially would associated from quarters business a good great X you morning. with discuss our case It's with full now of all. the have are case. permanent We like

recognize close followed consolidating gas for by able And our into upcoming entities we X to are expect the off our million simplify we of to business. process We preparing are XXXX. Maryland Florida, in distribution in we $XX.X Building to natural one, our filings.

our rate to a required in are file XXXX We early Maryland and Sandpiper case Energy. division for

We lessons will these to filings. we build learned prepare as these strategies regulatory and look on

initiatives to program and to contribute contribute infrastructure safe service maintaining growth. and Our reliable margin

mentioned was in gas our PSC XXXX. reliability contribute of investment. system The XX-year Florida portions capital As $XXX is million enhances which program our the in distribution accessibility program, expected and approved to GUARD the natural of by previously, August safety,

to in mechanisms a surcharge quarter cost Shore XXXX. new and cost key capital associated with for $X investment as by Eastern And regulations. FINSA or plan contribute recovery highway Shore. play costs in as relocation projects projects of This of PSC capital approximately costs Florida recovery for approved certain the to role railroad continues well capital mandated capital for program the compliance rate nonrevenue-producing Eastern investment protection are allows in otherwise with the related storm Our recovery million program our fourth in expected to XXXX

Turning to Florida.

investment look attractive constructive those serve. rate to environment. the state's the customers, transaction is Florida and value in supportive key XXXX regulators, communities. legislators with very Florida well, to We cases regulatory Gas both replacement profiles. due XXXX City gas relationships expect similar increase approval so pending very in One reasons capital this stay later combined our XXXX GUARD City of the over and and years of settlements. opportunities programs. programs. we the the realize we XX that $XXX City SAFE our have Utilities natural Florida case $XX.X is And and distribution have know a acquisition, We of investment the will this regulatory Upon infrastructure in next million Gas rate margin closing associated Gas to completed the Both entities expanding forward million Florida schedule with Public and Florida year, the similar and

Slide XX. to Turning

some just mention of recent me Let our recognitions.

fourth voted as of were the on the and awards readers X year, energy subsidiaries consecutive as best Stars News. Delaware of For and propane provider nominated received company. our State We the best the Delaware recognized also of by

or Jeff Philadelphia will XX% XXXX our competition. have women, form comments. to report companies all Board designation proud that women sustainability to diversity also on by it of as we the public the in honored in boards. was for X be XXXX more report you some most which call region the And closing I back received a with now of Jeff? top this that, turn champion are have year's We executive the their With annual to recently, Mercom our awards great respective today. announced

Jeffrey Householder

Jim. Thank you,

capital reinforce Turning on comments to guidance. my to expenditure earlier like I'd Slide our XX.

Florida we As expanded the City Gas recall, acquisition. announced our we projections when you will capital updated and

investments transaction the increased gas guidance customer well the gas for ERP investment. expansions and associated represent key a plan Gas. X-year include Florida million expenditure exclusive businesses in investments system systems, billion other for the enhance SAFE Gas of as of utility total to including FPU plan the safety technology financial Florida base the $X.X transmission XXXX the Chesapeake's many enhancements CapEx with or transaction City program program accommodate system system billing period, through approximately for few guidance billion systems legacy to capital is support Post XXXX in investments reliability capital and $XXX to existing Drivers projected to investments distribution increases growing and $X.X of Our includes FCG the Florida for that to of investment areas, natural Infrastructure, as a range. the systems. ancillary growth and company's GAURD City including at and

rate million Gas Following close the approximately range $X.XX we XXXX XXXX guidance annual an City This the reaffirming implies $XXX XXXX acquisition, EPS our of in to expect diluted capital be XXXX X.X% range million growth guidance of $XXX the of to EPS $X. annually. the of Florida run period. range to our We're X% rate through EPS the from for range an and growth investment

Slide Gas. upon our conclude $X.XX reaffirmed trust and integration also XX, the of because expertise footprint are we achieved the to To share we dedication per We only $X.XX our of our opportunities considering realize on the with our the the growth achievements of and expanded of based Florida team. performance shareholders XXXX possible we earn of guidance because of and sizable our City

In shareholders deliver it on We be to our our don't positioned confident are by management ability ongoing achieving continue the And X At up and and we investments investments for we're levels our energized We intently disciplined committed remain our that, executing on for focused performance are open short, return-oriented with growth time, by and our have deeply to capital same the questions. to strategy. to steady in cost deliver we to growth our operations. expect. well value across capital platforms. why prospects come

Operator

is Siebert for Chris floor And our from Williams will [Operator Instructions] The Shank. question with open now come questions. first Ellinghaus,

Christopher Ellinghaus

mitigate to of looks $X.XX some you influenced $X.XX from weather, us it have or and cost give pretty Page how can release. of sense the X you of weather? efforts? offsetting controlled the O&M a quarter, function the that press your And at Beth, your other directly looking much I'm third like Is sort of the of in was of efforts

Beth Cooper

ability from the to biggest to margins to retail manage and on $X.XX So customers. and of #X I weather comes say side, our prices to be comes would it the offset margin the able really

increase basically been as So fees programs. also the $X.XX significant a see different absolutely prices well to impact, customers our of weather of right. that for propane corresponding you're our some charging as you But in that we've

You the talk drivers. cost of lot focus warmer you to on naturally, bit as temperatures, a same quite about the We, an don't of management a overtime organization, heard Jeff it. continue given have

And basically so a costs able that season. part-time the to if had overtime well weather paid the would onboarding manage we're drivers as than we're have colder normal been that as you

do And so we're to that. able

The to to continued leader, other that organization. And been together able a COO, do able found we've way been manage thing we've one in is from we've to the look as perspective business. our the across under bring our we've geographic operations and our to efficiencies also

focus see to continue do and lot us all levels you'll management. something of So on, cost you'll continue at see of spend we a the That's organization. us time to on that

Christopher Ellinghaus

tangible far what thoughts give of kind MACHX timing for partnership of the potential As means really as or you goes, us about investments can that sense you any guys? of any

Beth Cooper

off? kick you you to want Jeff, add? me want Sure. do you and it Or start to

Jeffrey Householder

Go ahead.

Beth Cooper

So Chris, a specific part as we're working, geographic X the global areas. across team of

And at. that some there's being applications commercial so looked are

For on the us, fuel training part that certainly feel can those transportation in the we endeavors. a on we big one side play of specifically, and particular the of is areas

hydrogen, with opportunities around And given facility. town safety associated so our training see we

know and all don't in. that initiatives there's a to time layered expected frame have see and side, of hydrogen clear also as when we timing. several terms I transportation are opportunities the in partners think can awarded. we again, its about the meetings, more been on know was I provide on I particulars We are once meeting start utilization, the

Christopher Ellinghaus

for Florida Gas. financing long-term The City

obviously, terming hasn't years any played to whether for some got would peers you financing you to couple that of thoughts Have do very of be be you last an very some issues that you Or want proactive? not rates out, well. more make had outlook have One patient? out your long-term the want on

Beth Cooper

to would certainly, we at say, decided an rates. in as already the market, echo, I rising we're we look environment continuing I and Jeff transaction, to pursue interest this significantly of when Chris, were indicated,

the that And were were sensitivities market in right, that so entering And mind. those we knew with and on run models run secondly, into our models. we then we

And still our about are at place as there. so opportunity. the our feel this XXXX still on echoed very still good good about Jeff guidance We feel call. that's hit the we ability same We out to

see us a enter evaluate to time lot going with investor you're had when overall but the right the the we've is into to financing, permanent transaction. so of interest And just

so still a very we're great like feel And we in place.

Operator

with Our next come Ladenburg will from Thalmann. question [Indiscernible],

Unknown Analyst

mentioned? The question needed for expecting you to the were closing have are regarding Gas. X other regulatory regulatory resolved there City to One, Florida month? approvals the Hart-Scott-Rodino are be approvals I any then is through are that the this And beyond that

Beth Cooper

I and can to would offer. start that Jim, like you start it off I can add?

James Moriarty

to expected waiting on Monday. expire under is midnight Hart-Scott-Rodino period The at

a from regulatory then that away of happen. But receive clearances As division the last the period from if were the we're would X request know, antitrust that to we be would need. second we the day And you not would expiring.

Unknown Analyst

do back timing well. with that occurring? describe further going the any of and Can potentially to synergies you of type then you any synergies And acquisition transaction these the as

Beth Cooper

think excellent feel in there. off that missed call we the I'll Dylan, first, last in add and So I start regards number But we when anything would XXXX, can I indicated then one, I We've as to think announced still a had behind lot on our to Jeff transaction, say, in be year-end as focused February can we us. and I have getting provided results earnings call. been like the regards really be there'll approvals more part regulatory of our clarity

ours. focus about. has a the of to integration plan beginning focus that really and that short that's and for relatively been the time given a our talking Certainly, transition So we're teams frame the top been

quarter gaining that, to to and actually And will of the assumptions know in fourth place in there'll that. part transaction confirmation come affirmation certainly, getting of digging we indicated. want really on and Jeff, focused some But don't can we're more understanding had the regards made I Right we so than February. add specifics some you as about to in we there's anything the where as be model. we're in and to our to if the had originally a now, close

Jeffrey Householder

couple a just of Maybe things.

was the in Gas. I impacts in mean, going it the need very into transaction think clear we deal. eyes We the open. City to understood us of identify to goodwill synergies went I wide this

broadly the We we or the to than some to opportunities, also the than more years understood certain the And regulatory the of desired would required couple capital enterprise. Also might likely and generate that be actions of we larger I goodwill our need margins impact. overcome accelerate otherwise across understood projects to over quicker think anticipated. next think, have that

as different number modeled market at did, scenarios that market a have but would did also, some do potential tested looking hoping weren't sensitivities. the indicated, analytics it anticipatory Anticipatory, we Beth We and downturns. several we different what of

And what so understanding And and this the see a we'll to and as I think on, that. specifics we getting are do, synergies into do of we that February. we're the of that organization report the and in opportunities we're I think across those handle we've incremental need indicated, to prepared the gone something Beth specifics good

Unknown Analyst

and the whether Glad end year you'll your propane? here. on lastly [Indiscernible] to then propane year-to-date you And on business think hear,

Beth Cooper

adding the think We've higher That has return. service several will community do he indicated a very a year basis, And business even has in retail I Dylan, strong on like weather factor. traditional generate would a as had year-to-date for customers, as times, we've systems. adding that well. this year the a I also year about question and this that been though say, than talked first gas utility asked, weather. strong, fees, this even business I continues Chris' margins to downside biggest business been to

weather. be well. So great certainly will fourth is now. impacted The doing having weather the business some quarter by the right We're

we're So hoping And for do that weather in even continues. business the the year. the spite of will again, well

Operator

question Tate with next Our from will Maxim Sullivan, Group. come

Tate Sullivan

that that is storage And the the will some or natural associated margin peaking of most plan? How into on that go gross was in the with more $XX you come after case? million there facility? finished Is Can riders gas liquefied construction detail under are XXXX. long

Jeffrey Householder

really growth frankly, gas number for those Yes, times we in-service per margin rates seeing that some growth Peninsula, accordingly. a exceed customer on last the of been our period. distribution systems at at we've targeted rates, activities the X% we're have as in We've with planning the looking our been that year. decade, before, And Delmarva amazement is growth indicated date supply

And continues Peninsula at so those a the mortgage still significantly, projected we're that seeing growth have come. if you years on growth out that next the increased even by levels an years where for rates substantial few there of number in to and customer builders environment of project the

do for turned peak And We have time. the forever, with to on a weather-related either delivery started services point capabilities It a our need capabilities that over don't to to some there. everything future, issue expand peaks. the to looking add in modeling come. Peninsula. will so upstream we baseload capacity peaking our indicate something, other at And we us would at pipeline the that This the our that years is supply and additional a intended it it's capabilities delivery economic we capacity provides the winter LNG we most available. deal area or sort payers demand that to to nice significant project number winter into service option addition of distribution that find market of but won't peaking fix frankly rate for primarily those service have And continue allow have

Tate Sullivan

Florida. based the for And no on in the winter an Is then facility case? peaks, need is there's duplication it that LNG

Jeffrey Householder

a have activated South into fact, mean significant Florida for Public our And on City I Miami, as or in capacity the there that going especially amount systems the Gas you down know, peaking are could LNG for storage pipeline facility constraints we a system an use more. the folks Miami have may pipeline actually We always legacy south Utilities, No. of provide actually in bit services to system. Florida. little of for

provide an and services customers inherit in that in will the peaking we'll storage will build the we So in LNG to facility Peninsula. Delmarva Maryland Miami, one

things interstate Florida. are Gas is Florida of pipeline to South there. to add the And investment that's there opportunity one intriguing I'll about capacity City the into So to going just issues the that, opportunity transmission add the

then south to Gases levels further the City think into and we And MB our opportunities help significant into are on service there capacity service areas. increase any FPU territory Florida so by

Operator

from Sidoti. Brian Russo, with And our Instructions] question next [Operator comes

Brian Russo

in look Is quarter earnings the very are be any quarter? quarter some of you I'm growth. will to year just quarter when XXXX, that helped curious, margin we demonstrated reverse just you the Or fourth third costs weather the in that expect reason insight kind in helpful. of fourth to trend not of fourth to and clearly, there would the strong We there there earlier any XXXX? mitigate type that of

Beth Cooper

in continue facilities my expansion I think, of and did employee we in some what about. saw we and Brian, And as areas expectation you increase both our as at would like Jeff costs what also as side managing have you within talked well fourth is, cost have maintenance the tightly, as coming And the the of on is some are the both terms and same quarter, as into to those increases well. I would say margin to quarter. time, we're expect I costs the very

So factor. both be of would a those

One of know, you gas is the side impact case. rate the drivers margin of natural also, as our the biggest on

that some that, in you'll piece have margin another in fourth put so will And kind gross We've hit the estimates quarter. of our table. of

our quarter remaining impact. the So contribution a is out what we've fourth And highest happened. from be lay tried and to weather I The will think quarter. factor that then weather the second

significant warmer our be a will on impact results normal it whether for colder the or so have And year. will

Brian Russo

does that with customer FPU growth? And compare then How and growth, City residential Florida Delmarva. both Gas you the at customer mentioned

Jeffrey Householder

rate And for up customers, a continue primarily, hooking activities at over NextEra comparable system, they those wire the and while the rates new growth at they Gas went FPU. are investment the and what new they their replacement X spent that is expanding Utilities. the customer seen to And to dollars owned that little serving there. a X%, close customers. do, were at it. City But of X% they I base did Public still in own that obviously, we've years systems double generally certainly been some to pipeline we've that experienced one to typically We've things mention

years. it Florida Utilities that for think falls into Public several right what we've we been So the at doing last

Brian Russo

the with Gas Florida of for to permanent City is determined. the then still And pending be financing understanding

Your is $XXX $XXX financing debt the of right? short-term FCG But of is balance, normalized forward we transaction million, million complete. permanent what $XX kind consider that million should is until is going is hedged,

Beth Cooper

financing million our put, and from legacy $XXX million. reaffirmed that ourselves year a Chesapeake's guidance for we've the for transaction think in perspective out CapEx I ignoring $XXX regards to to Brian, FPG where be we've business, Well, about the to for

business the So that's rest would the and an where legacy our of piece the about land have there. as would we think impact on biggest that you year

Brian Russo

FCG is any talk propane, you just just that scale And overall XX% announced about FCG are several to the just opportunities? in longer be pipeline? projects bolt-on And strategy I'm then several last months? lastly, you've going of and Or maybe part as of XX on just expansion And of approaching you growth your you to in the important the accretive might XX Could very maybe utility Florida LNG picture from business. more just project years. acquisitions still around over the outside integrating bigger done over strategy? hydrogen some wondering about the next talk then enhances focus is your significantly your strategically. Obviously, footprint and you the Can

Jeffrey Householder

with let's propane question. Well, start the

pretty a I see business. opportunities still to moment continue business. on We the to think, indicated grow Beth propane and ago, expand we're bullish as that

don't Some another bolt-on, our through certainly in certainly opportunity to in to service interested appealing the of something small-scale trying us. any that think but as large say, existing come come is we're acquisition of that's propane opportunities might could acquisitions. areas those I down pipe, the relatively you

And so on that business. financially business that specific There's that look us. that sense ones we opportunities attractive achieve. and that regulated between we look a mix viable to And continue to nonregulated execute split and and to strategically striving not to make are are we'll grow for we're the

areas. million capacity we acquisition, underserved South additional ago, in an and core Gas that a do nonregulated Florida to operational $XXX as areas propane our related capital deliver of opportunities And unserved in as opportunities larger the into and Florida operations. part Gas in well to City to pipeline operations I Gas. mentioned City Gas The continue City opportunities moment surrounding to we'll other so enterprise. City capital their the for across that see to question expand on serve indicated We've the the additional and as

our All intrastate very business of Florida. for create, Peninsula those we think, real things transmission opportunities in pipeline some

order that. we're I front regulated mention replacement of their Gas this about later of the out excited also program commission, of resolution of an that pretty we're pipeline month, anticipating City expansion so I public's and believe. And in that the an first would commission coming has sometime

$XX a And replacement. them pipeline start the investment path years, so would that down year next XX million in $XXX million a over

$XX have up Utilities level, XX investment already million same the similar about that's running years. We Florida at the program about and a Public a next at year for

opportunities pipeline year million going $XX consolidated in forward. Florida, about replacement So significant a

kinds of driving opportunities a we place. in why is the force interested and see first those in investment so And we're obviously Gas City

Operator

back I'd any Jeff further to to floor there at are for turn closing or over questions. like additional And this remarks. no the time, Householder

Jeffrey Householder

you. your our everyone earnings wish to want to February. appreciate you Thanksgiving. joining us few while continued Thank and in And forward interest a time with the Happy thank it look everyone on company. just I weeks your this speaking for in call morning. Goodbye. I early. We next And We

Operator

Chesapeake Call. your this at This wonderfulâ€¦ Utilities Quarter Thank Conference Please disconnect XXXX today's concludes lines Third have time, and Earnings you. a

Chesapeake Utilities (CPK) 3 Nov 232023 Q3 Earnings call transcript